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<SEC-DOCUMENT>0000012208-06-000015.txt : 20060509
<SEC-HEADER>0000012208-06-000015.hdr.sgml : 20060509
<ACCEPTANCE-DATETIME>20060509170019
ACCESSION NUMBER:		0000012208-06-000015
CONFORMED SUBMISSION TYPE:	10-Q
PUBLIC DOCUMENT COUNT:		10
CONFORMED PERIOD OF REPORT:	20060331
FILED AS OF DATE:		20060509
DATE AS OF CHANGE:		20060509

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			BIO RAD LABORATORIES INC
		CENTRAL INDEX KEY:			0000012208
		STANDARD INDUSTRIAL CLASSIFICATION:	LABORATORY ANALYTICAL INSTRUMENTS [3826]
		IRS NUMBER:				941381833
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		10-Q
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-07928
		FILM NUMBER:		06821787

	BUSINESS ADDRESS:	
		STREET 1:		1000 ALFRED NOBEL DR
		CITY:			HERCULES
		STATE:			CA
		ZIP:			94547
		BUSINESS PHONE:		5107247000
</SEC-HEADER>
<DOCUMENT>
<TYPE>10-Q
<SEQUENCE>1
<FILENAME>f10q33106.htm
<TEXT>
<!doctype html public "-//IETF//DTD HTML//EN">
<HTML>
<HEAD>
<TITLE>SECURITIES AND EXCHANGE COMMISSION</TITLE>
<META NAME="author" CONTENT="Stephanie Trudrung">
<META NAME="date" CONTENT="05/09/2006">
</HEAD>
<BODY style="line-height:12pt; font-family:Times New Roman; font-size:10pt; color:#000000">
<P style="margin:0pt"><BR>
<BR></P>
<TABLE style="font-size:10pt" cellspacing=0><TR><TD width=36></TD><TD width=423></TD></TR>
<TR><TD valign=top width=612 colspan=2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center><FONT FACE="Times New Roman" COLOR=#000000>UNITED STATES</FONT></P>
</TD></TR>
<TR><TD valign=top width=612 colspan=2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>SECURITIES AND EXCHANGE COMMISSION</P>
</TD></TR>
<TR><TD valign=top width=612 colspan=2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>Washington, D.C. &nbsp;20549</P>
</TD></TR>
<TR><TD valign=top width=612 colspan=2>&nbsp;</TD></TR>
<TR><TD valign=top width=612 colspan=2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>FORM 10-Q</P>
</TD></TR>
<TR><TD valign=top width=48>&nbsp;</TD><TD valign=top width=564>&nbsp;</TD></TR>
<TR><TD style="border-bottom:0.5pt solid #000000" valign=top width=48><P style="line-height:13pt; margin:0pt; font-size:11pt">&nbsp;&nbsp;&nbsp;&nbsp;X</P>
</TD><TD valign=top width=564><P style="line-height:13pt; margin:0pt; font-size:11pt">QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE</P>
</TD></TR>
<TR><TD valign=top width=48>&nbsp;</TD><TD valign=top width=564><P style="line-height:13pt; margin:0pt; font-size:11pt">SECURITIES EXCHANGE ACT OF 1934</P>
</TD></TR>
</TABLE>
<P style="line-height:9pt; margin:0pt"><BR></P>
<TABLE style="font-size:10pt" cellspacing=0><TR><TD width=36></TD><TD width=93.15></TD><TD width=36.35></TD><TD width=106.2></TD><TD width=0.35></TD><TD width=1.2></TD><TD width=11.7></TD><TD width=3.05></TD><TD width=15.35></TD><TD width=19.6></TD><TD width=22.5></TD><TD width=53.95></TD><TD width=59.6></TD><TD width=3.2></TD></TR>
<TR><TD valign=top width=616.267 colspan=14><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>For the quarterly period ended March 31, 2006</P>
</TD></TR>
<TR><TD valign=top width=616.267 colspan=14><P style="line-height:11pt; margin-top:2.75pt; margin-bottom:2.75pt; font-size:11pt" align=center>OR</P>
</TD></TR>
<TR><TD style="border-bottom:0.5pt solid #000000" valign=top width=48>&nbsp;</TD><TD valign=top width=568.267 colspan=13><P style="line-height:13pt; margin:0pt; font-size:11pt">TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE</P>
</TD></TR>
<TR><TD valign=top width=48>&nbsp;</TD><TD valign=top width=568.267 colspan=13><P style="line-height:13pt; margin:0pt; font-size:11pt">SECURITIES EXCHANGE ACT OF 1934</P>
</TD></TR>
<TR><TD valign=top width=172.2 colspan=2>&nbsp;</TD><TD valign=top width=190.533 colspan=3>&nbsp;</TD><TD valign=top width=41.733 colspan=4>&nbsp;</TD><TD valign=top width=211.8 colspan=5>&nbsp;</TD></TR>
<TR><TD valign=top width=172.2 colspan=2><P style="line-height:11pt; margin:0pt; font-size:9pt">&nbsp;For the transition period from</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=190.533 colspan=3>&nbsp;</TD><TD valign=top width=41.733 colspan=4><P style="margin:0pt">to</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=211.8 colspan=5>&nbsp;</TD></TR>
<TR><TD valign=top width=616.267 colspan=14>&nbsp;</TD></TR>
<TR><TD valign=top width=616.267 colspan=14><P style="line-height:11pt; margin:0pt; font-size:11pt" align=center>Commission file number <U>1-7928</U></P>
</TD></TR>
<TR><TD valign=top width=616.267 colspan=14>&nbsp;</TD></TR>
<TR><TD style="border-bottom:0.5pt solid #000000" valign=top width=616.267 colspan=14><P style="line-height:10pt; margin-top:2.75pt; margin-bottom:0pt; font-size:11pt" align=center>BIO-RAD LABORATORIES, INC.</P>
</TD></TR>
<TR><TD valign=top width=616.267 colspan=14><P style="line-height:10pt; margin:0pt" align=center>(Exact name of registrant as specified in its charter)</P>
</TD></TR>
<TR><TD style="border-bottom:0.5pt solid #000000" valign=top width=362.267 colspan=4><P style="margin-top:3.35pt; margin-bottom:0pt" align=center>Delaware</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=17.667 colspan=3>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=236.333 colspan=7><P style="margin-top:3.35pt; margin-bottom:0pt" align=center>94-1381833</P>
</TD></TR>
<TR><TD valign=top width=362.267 colspan=4><P style="margin:0pt" align=center>(State or other jurisdiction of incorporation or organization)</P>
</TD><TD valign=top width=17.667 colspan=3>&nbsp;</TD><TD valign=top width=236.333 colspan=7><P style="margin:0pt" align=center>(I.R.S. Employer Identification No.)</P>
</TD></TR>
<TR><TD style="border-bottom:0.5pt solid #000000" valign=top width=362.733 colspan=5><P style="margin-top:4.15pt; margin-bottom:0pt" align=center>1000 Alfred Nobel Drive, Hercules, California</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=17.2 colspan=2>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=236.333 colspan=7><P style="margin-top:4.15pt; margin-bottom:0pt" align=center>94547</P>
</TD></TR>
<TR><TD valign=top width=362.733 colspan=5><P style="margin:0pt" align=center>(Address of principal executive offices)</P>
</TD><TD valign=top width=17.2 colspan=2>&nbsp;</TD><TD valign=top width=236.333 colspan=7><P style="margin:0pt" align=center>(Zip Code)</P>
</TD></TR>
<TR><TD style="border-bottom:0.5pt solid #000000" valign=top width=616.267 colspan=14><P style="line-height:10pt; margin-top:3.35pt; margin-bottom:0pt" align=center>(510) 724-7000</P>
</TD></TR>
<TR><TD valign=top width=616.267 colspan=14><P style="margin:0pt" align=center>Registrant's telephone number, including area code</P>
</TD></TR>
<TR><TD style="border-bottom:0.5pt solid #000000" valign=top width=616.267 colspan=14><P style="margin-top:2.5pt; margin-bottom:0pt" align=center>No Change</P>
</TD></TR>
<TR><TD valign=top width=616.267 colspan=14><P style="margin:0pt" align=center>Former name, former address and former fiscal year, if changed since last report.</P>
</TD></TR>
<TR><TD valign=top width=616.267 colspan=14>&nbsp;</TD></TR>
<TR><TD valign=top width=616.267 colspan=14><P style="line-height:9pt; margin-top:2.25pt; margin-bottom:0pt; font-size:9pt" align=justify>Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the</P>
</TD></TR>
<TR><TD valign=top width=616.267 colspan=14><P style="line-height:9pt; margin:0pt; font-size:9pt" align=justify>Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required</P>
</TD></TR>
<TR><TD valign=top width=460.6 colspan=11><P style="line-height:9pt; margin:0pt; font-size:9pt" align=justify>to file such reports), and (2) has been subject to such filing requirements for the past 90 days.</P>
</TD><TD valign=top width=71.933><P style="line-height:9pt; margin:0pt; font-size:9pt" align=justify>[ X ] &nbsp;&nbsp;&nbsp;Yes</P>
</TD><TD valign=top width=83.733 colspan=2><P style="line-height:9pt; margin:0pt; font-size:9pt">[ &nbsp;&nbsp;&nbsp;] &nbsp;&nbsp;&nbsp;No</P>
</TD></TR>
<TR><TD valign=top width=616.267 colspan=14>&nbsp;</TD></TR>
<TR><TD valign=top width=616.267 colspan=14><P style="line-height:9pt; margin-top:2.25pt; margin-bottom:0pt; font-size:9pt" align=justify>Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer. &nbsp;See </P>
</TD></TR>
<TR><TD valign=top width=616.267 colspan=14><P style="line-height:9pt; margin:0pt; font-size:9pt" align=justify>definitions of &#147;accelerated filer and large accelerated filer&#148; in Rule 12b-2 or the Exchange Act. (Check one):</P>
</TD></TR>
<TR><TD valign=top width=220.667 colspan=3><P style="line-height:9pt; margin-top:2.25pt; margin-bottom:0pt; font-size:9pt" align=justify>Large accelerated filer &nbsp;&nbsp;&nbsp;[ &nbsp;X &nbsp;]<U> &nbsp;</U></P>
</TD><TD valign=top width=209.933 colspan=7><P style="line-height:9pt; margin-top:2.25pt; margin-bottom:0pt; font-size:9pt" align=justify>Accelerated filer &nbsp;&nbsp;[ &nbsp;&nbsp;&nbsp;]</P>
</TD><TD valign=top width=185.667 colspan=4><P style="line-height:9pt; margin-top:2.25pt; margin-bottom:0pt; font-size:9pt" align=justify>Non-accelerated filer &nbsp;&nbsp;&nbsp;[ &nbsp;&nbsp;&nbsp;]</P>
</TD></TR>
<TR><TD valign=top width=616.267 colspan=14>&nbsp;</TD></TR>
<TR><TD valign=top width=616.267 colspan=14><P style="line-height:9pt; margin-top:2.25pt; margin-bottom:0pt; font-size:9pt" align=justify>Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). &nbsp;</P>
</TD></TR>
<TR><TD valign=top width=460.6 colspan=11>&nbsp;</TD><TD valign=top width=71.933><P style="line-height:8pt; margin:0pt; font-size:9pt" align=justify>[ &nbsp;&nbsp;&nbsp;] &nbsp;&nbsp;&nbsp;&nbsp;Yes</P>
</TD><TD valign=top width=83.733 colspan=2><P style="line-height:8pt; margin:0pt; font-size:9pt" align=justify>[ X ] &nbsp;&nbsp;&nbsp;No</P>
</TD></TR>
<TR><TD valign=top width=616.267 colspan=14>&nbsp;</TD></TR>
<TR><TD valign=top width=616.267 colspan=14><P style="line-height:11pt; margin:0pt; font-size:9pt">Indicate the number of shares outstanding of each of the issuer&#146;s classes of common stock, as of the latest</P>
</TD></TR>
<TR><TD valign=top width=364.333 colspan=6><P style="line-height:11pt; margin:0pt; font-size:9pt">practicable date.</P>
</TD><TD valign=top width=19.667 colspan=2>&nbsp;</TD><TD valign=top width=232.267 colspan=6>&nbsp;</TD></TR>
<TR><TD valign=top width=364.333 colspan=6>&nbsp;</TD><TD valign=top width=19.667 colspan=2>&nbsp;</TD><TD valign=top width=232.267 colspan=6><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>Shares Outstanding</P>
</TD></TR>
<TR><TD style="border-bottom:0.5pt solid #000000" valign=top width=364.333 colspan=6><P style="line-height:13pt; margin:0pt; text-indent:72pt; font-size:11pt">Title of Class</P>
</TD><TD valign=top width=19.667 colspan=2>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=232.267 colspan=6><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>at April 30, 2006</P>
</TD></TR>
<TR><TD valign=top width=364.333 colspan=6><P style="line-height:13pt; margin:0pt; font-size:11pt">Class A Common Stock,</P>
</TD><TD valign=top width=19.667 colspan=2>&nbsp;</TD><TD valign=top width=232.267 colspan=6>&nbsp;</TD></TR>
<TR><TD valign=top width=364.333 colspan=6><P style="line-height:13pt; margin:0pt; text-indent:14.4pt; font-size:11pt">Par Value $0.0001 per share</P>
</TD><TD valign=top width=19.667 colspan=2>&nbsp;</TD><TD valign=top width=232.267 colspan=6><P style="line-height:13pt; margin:0pt; padding-left:64.8pt; font-size:11pt">21,426,035</P>
</TD></TR>
<TR><TD valign=top width=364.333 colspan=6><P style="line-height:13pt; margin:0pt; font-size:11pt">Class B Common Stock,</P>
</TD><TD valign=top width=19.667 colspan=2>&nbsp;</TD><TD valign=top width=232.267 colspan=6>&nbsp;</TD></TR>
<TR><TD valign=top width=364.333 colspan=6><P style="line-height:13pt; margin:0pt; text-indent:14.4pt; font-size:11pt">Par Value $0.0001 per share</P>
</TD><TD valign=top width=19.667 colspan=2>&nbsp;</TD><TD valign=top width=232.267 colspan=6><P style="line-height:13pt; margin:0pt; padding-left:72pt; font-size:11pt">4,909,908</P>
</TD></TR>
</TABLE>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt"><BR>
<BR></P>
<P style="margin:0pt; padding-left:10.8pt; page-break-before:always">PART I - FINANCIAL INFORMATION</P>
<P style="line-height:9pt; margin:0pt"><BR></P>
<P style="margin:0pt; padding-left:10.8pt">Item 1. Financial Statements</P>
<P style="margin:0pt" align=center><BR></P>
<P style="margin:0pt; padding-left:10.8pt" align=center>Bio-Rad Laboratories, Inc.</P>
<P style="margin:0pt; padding-left:10.8pt" align=center>Condensed Consolidated Statements of Income</P>
<P style="margin:0pt; padding-left:10.8pt" align=center>(in thousands, except per share data)</P>
<P style="margin:0pt" align=center>(Unaudited)</P>
<TABLE style="font-size:10pt" cellspacing=0><TR><TD width=315></TD><TD width=5.65></TD><TD width=57.35></TD><TD width=9></TD><TD width=56.25></TD></TR>
<TR><TD valign=top width=420>&nbsp;</TD><TD valign=top width=171 colspan=4><P style="margin:0pt; font-size:11pt" align=center>Three Months Ended</P>
</TD></TR>
<TR><TD valign=top width=420>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=171 colspan=4><P style="margin:0pt; font-size:11pt" align=center>March 31,</P>
</TD></TR>
<TR><TD valign=top width=420>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=7.533>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=76.467><P style="margin:0pt; font-size:11pt" align=center>2006</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=12>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=75><P style="margin:0pt; font-size:11pt" align=center>2005</P>
</TD></TR>
<TR><TD valign=top width=420>&nbsp;</TD><TD valign=top width=7.533>&nbsp;</TD><TD valign=top width=76.467>&nbsp;</TD><TD valign=top width=12>&nbsp;</TD><TD valign=top width=75>&nbsp;</TD></TR>
<TR><TD valign=top width=420><P style="line-height:13pt; margin:0pt; font-size:11pt">Net sales</P>
</TD><TD valign=top width=7.533>&nbsp;</TD><TD valign=top width=76.467><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>$ &nbsp;&nbsp;308,338&nbsp;</P>
</TD><TD valign=top width=12>&nbsp;</TD><TD valign=top width=75><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>$ &nbsp;&nbsp;299,171&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=420><P style="line-height:13pt; margin:0pt; text-indent:14.4pt; font-size:11pt">Cost of good sold</P>
</TD><TD valign=top width=7.533>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=76.467><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>132,810&nbsp;</P>
</TD><TD valign=top width=12>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=75><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>132,765&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=420><P style="line-height:13pt; margin:0pt; font-size:11pt">Gross profit</P>
</TD><TD valign=top width=7.533>&nbsp;</TD><TD valign=top width=76.467><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>175,528&nbsp;</P>
</TD><TD valign=top width=12>&nbsp;</TD><TD valign=top width=75><P style="margin:0pt; font-size:11pt" align=right>166,406&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=420><P style="line-height:13pt; margin:0pt; font-size:11pt">Selling, general and administrative expense</P>
</TD><TD valign=top width=7.533>&nbsp;</TD><TD valign=top width=76.467><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>100,070&nbsp;</P>
</TD><TD valign=top width=12>&nbsp;</TD><TD valign=top width=75><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>99,498&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=420><P style="line-height:13pt; margin:0pt; font-size:11pt">Product research and development expense</P>
</TD><TD valign=top width=7.533>&nbsp;</TD><TD valign=top width=76.467><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>28,091&nbsp;</P>
</TD><TD valign=top width=12>&nbsp;</TD><TD valign=top width=75><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>26,823&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=420><P style="line-height:13pt; margin:0pt; font-size:11pt">Interest expense</P>
</TD><TD valign=top width=7.533>&nbsp;</TD><TD valign=top width=76.467><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>8,019&nbsp;</P>
</TD><TD valign=top width=12>&nbsp;</TD><TD valign=top width=75><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>8,117&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=420><P style="line-height:13pt; margin:0pt; font-size:11pt">Foreign exchange (gains) losses</P>
</TD><TD valign=top width=7.533>&nbsp;</TD><TD valign=top width=76.467><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>11&nbsp;</P>
</TD><TD valign=top width=12>&nbsp;</TD><TD valign=top width=75><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>(277)</P>
</TD></TR>
<TR><TD valign=top width=420><P style="line-height:13pt; margin:0pt; font-size:11pt">Other (income) expense, net</P>
</TD><TD valign=top width=7.533>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=76.467><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>(4,542)</P>
</TD><TD valign=top width=12>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=75><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>(5,838)</P>
</TD></TR>
<TR><TD valign=top width=420><P style="line-height:13pt; margin:0pt; font-size:11pt">Income from continuing operations before taxes</P>
</TD><TD valign=top width=7.533>&nbsp;</TD><TD valign=top width=76.467><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>43,879&nbsp;</P>
</TD><TD valign=top width=12>&nbsp;</TD><TD valign=top width=75><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>38,083&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=420><P style="line-height:13pt; margin:0pt; text-indent:14.4pt; font-size:11pt">Provision for income taxes</P>
</TD><TD valign=top width=7.533>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=76.467><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>(12,681)</P>
</TD><TD valign=top width=12>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=75><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>(8,563)</P>
</TD></TR>
<TR><TD valign=top width=420><P style="line-height:13pt; margin:0pt; font-size:11pt">Income from continuing operations</P>
</TD><TD valign=top width=7.533>&nbsp;</TD><TD valign=top width=76.467><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>31,198&nbsp;</P>
</TD><TD valign=top width=12>&nbsp;</TD><TD valign=top width=75><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>29,520&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=420><P style="line-height:13pt; margin:0pt; font-size:11pt">Discontinued operations</P>
</TD><TD valign=top width=7.533>&nbsp;</TD><TD valign=top width=76.467>&nbsp;</TD><TD valign=top width=12>&nbsp;</TD><TD valign=top width=75>&nbsp;</TD></TR>
<TR><TD valign=top width=420><P style="line-height:13pt; margin:0pt; text-indent:14.4pt; font-size:11pt">Gain on divestiture, net of tax benefits of zero in 2005</P>
</TD><TD valign=top width=7.533>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=76.467><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>--&nbsp;</P>
</TD><TD valign=top width=12>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=75><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>3,974&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=420><P style="line-height:13pt; margin:0pt; font-size:11pt">Net income</P>
</TD><TD valign=top width=7.533>&nbsp;</TD><TD style="border-bottom:2pt double #000000" width=76.467><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>$ &nbsp;&nbsp;&nbsp;&nbsp;31,198&nbsp;</P>
</TD><TD width=12>&nbsp;</TD><TD style="border-bottom:2pt double #000000" width=75><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>$ &nbsp;&nbsp;&nbsp;&nbsp;33,494&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=420>&nbsp;</TD><TD valign=top width=7.533>&nbsp;</TD><TD valign=top width=76.467>&nbsp;</TD><TD valign=top width=12>&nbsp;</TD><TD valign=top width=75>&nbsp;</TD></TR>
<TR><TD valign=top width=420><P style="line-height:13pt; margin:0pt; font-size:11pt">Basic earnings per share:</P>
</TD><TD valign=top width=7.533>&nbsp;</TD><TD valign=top width=76.467>&nbsp;</TD><TD valign=top width=12>&nbsp;</TD><TD valign=top width=75>&nbsp;</TD></TR>
<TR><TD valign=top width=420><P style="line-height:13pt; margin:0pt; text-indent:21.6pt; font-size:11pt">Continuing operations</P>
</TD><TD valign=top width=7.533>&nbsp;</TD><TD valign=top width=76.467><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.19&nbsp;</P>
</TD><TD valign=top width=12>&nbsp;</TD><TD valign=top width=75><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.14&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=420><P style="line-height:13pt; margin:0pt; text-indent:21.6pt; font-size:11pt">Discontinued operations</P>
</TD><TD valign=top width=7.533>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=76.467><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>--&nbsp;</P>
</TD><TD valign=top width=12>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=75><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>0.15&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=420><P style="line-height:13pt; margin:0pt; text-indent:21.6pt; font-size:11pt">Net income</P>
</TD><TD valign=top width=7.533>&nbsp;</TD><TD style="border-bottom:2pt double #000000" valign=top width=76.467><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.19&nbsp;</P>
</TD><TD valign=top width=12>&nbsp;</TD><TD style="border-bottom:2pt double #000000" valign=top width=75><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.29&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=420><P style="line-height:13pt; margin:0pt; text-indent:21.6pt; font-size:11pt">Weighted average common shares</P>
</TD><TD valign=top width=7.533>&nbsp;</TD><TD style="border-bottom:2pt double #000000" width=76.467><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>26,277&nbsp;</P>
</TD><TD width=12>&nbsp;</TD><TD style="border-bottom:2pt double #000000" width=75><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>25,909&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=420>&nbsp;</TD><TD valign=top width=7.533>&nbsp;</TD><TD valign=top width=76.467>&nbsp;</TD><TD valign=top width=12>&nbsp;</TD><TD valign=top width=75>&nbsp;</TD></TR>
<TR><TD valign=top width=420><P style="line-height:13pt; margin:0pt; font-size:11pt">Diluted earnings per share:</P>
</TD><TD valign=top width=7.533>&nbsp;</TD><TD valign=top width=76.467>&nbsp;</TD><TD valign=top width=12>&nbsp;</TD><TD valign=top width=75>&nbsp;</TD></TR>
<TR><TD valign=top width=420><P style="line-height:13pt; margin:0pt; text-indent:21.6pt; font-size:11pt">Continuing operations</P>
</TD><TD valign=top width=7.533>&nbsp;</TD><TD valign=top width=76.467><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.16&nbsp;</P>
</TD><TD valign=top width=12>&nbsp;</TD><TD valign=top width=75><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.11&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=420><P style="line-height:13pt; margin:0pt; text-indent:21.6pt; font-size:11pt">Discontinued operations</P>
</TD><TD valign=top width=7.533>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=76.467><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>--&nbsp;</P>
</TD><TD valign=top width=12>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=75><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>0.15&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=420><P style="line-height:13pt; margin:0pt; text-indent:21.6pt; font-size:11pt">Net income</P>
</TD><TD valign=top width=7.533>&nbsp;</TD><TD style="border-bottom:2pt double #000000" valign=top width=76.467><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.16&nbsp;</P>
</TD><TD valign=top width=12>&nbsp;</TD><TD style="border-bottom:2pt double #000000" valign=top width=75><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.26&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=420><P style="line-height:13pt; margin:0pt; text-indent:21.6pt; font-size:11pt">Weighted average common shares</P>
</TD><TD valign=top width=7.533>&nbsp;</TD><TD style="border-bottom:2pt double #000000" width=76.467><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>26,829&nbsp;</P>
</TD><TD width=12>&nbsp;</TD><TD style="border-bottom:2pt double #000000" width=75><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>26,555&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=420>&nbsp;</TD><TD valign=top width=7.533>&nbsp;</TD><TD valign=top width=76.467>&nbsp;</TD><TD valign=top width=12>&nbsp;</TD><TD valign=top width=75>&nbsp;</TD></TR>
<TR><TD valign=top width=591 colspan=5><P style="line-height:11pt; margin:0pt; font-size:9pt">The accompanying notes are an integral part of these consolidated financial statements.</P>
</TD></TR>
</TABLE>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt" align=center><BR>
<BR></P>
<P style="line-height:11pt; margin:0pt; font-size:9pt" align=center>1</P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt; padding-left:-36pt; padding-right:-49pt; font-size:9pt; page-break-before:always" align=center>BIO-RAD LABORATORIES, INC</P>
<P style="margin:0pt" align=center>Condensed Consolidated Balance Sheets</P>
<P style="margin:0pt" align=center>(In thousands, except share data)</P>
<P style="margin:0pt" align=center>(Unaudited)</P>
<TABLE style="font-size:10pt" cellspacing=0><TR><TD width=320></TD><TD width=18.6></TD><TD width=55.8></TD><TD width=12.5></TD><TD width=66.5></TD></TR>
<TR><TD valign=top width=426.667>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=24.8>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=74.4><P style="line-height:9pt; margin:0pt; font-size:8pt" align=center>March 31, 2006</P>
</TD><TD valign=top width=16.667>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=88.667><P style="line-height:9pt; margin:0pt; font-size:8pt" align=center>December 31, 2005</P>
</TD></TR>
<TR><TD valign=top width=426.667><P style="margin:0pt; font-size:9pt">ASSETS: </P>
</TD><TD valign=top width=24.8>&nbsp;</TD><TD valign=top width=74.4>&nbsp;</TD><TD valign=top width=16.667>&nbsp;</TD><TD valign=top width=88.667>&nbsp;</TD></TR>
<TR><TD valign=top width=426.667><P style="margin:0pt; font-size:8pt">Cash and cash equivalents &nbsp;</P>
</TD><TD valign=top width=24.8>&nbsp;</TD><TD valign=top width=74.4><P style="margin:0pt; font-size:8pt" align=right>$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;265,587&nbsp;</P>
</TD><TD valign=top width=16.667>&nbsp;</TD><TD valign=top width=88.667><P style="margin:0pt; font-size:8pt" align=right>$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;296,716&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=426.667><P style="margin:0pt; font-size:8pt">Restricted cash</P>
</TD><TD valign=top width=24.8>&nbsp;</TD><TD valign=top width=74.4><P style="margin:0pt; font-size:8pt" align=right>--&nbsp;</P>
</TD><TD valign=top width=16.667>&nbsp;</TD><TD valign=top width=88.667><P style="margin:0pt; font-size:8pt" align=right>36,138&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=426.667><P style="margin:0pt; font-size:8pt">Short-term investments</P>
</TD><TD valign=top width=24.8>&nbsp;</TD><TD valign=top width=74.4><P style="margin:0pt; font-size:8pt" align=right>129,176&nbsp;</P>
</TD><TD valign=top width=16.667>&nbsp;</TD><TD valign=top width=88.667><P style="margin:0pt; font-size:8pt" align=right>116,343&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=426.667><P style="margin:0pt; font-size:8pt">Accounts receivable, net </P>
</TD><TD valign=top width=24.8>&nbsp;</TD><TD valign=top width=74.4><P style="margin:0pt; font-size:8pt" align=right>259,231&nbsp;</P>
</TD><TD valign=top width=16.667>&nbsp;</TD><TD valign=top width=88.667><P style="margin:0pt; font-size:8pt" align=right>247,192&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=426.667><P style="margin:0pt; font-size:8pt">Inventories, net </P>
</TD><TD valign=top width=24.8>&nbsp;</TD><TD valign=top width=74.4><P style="margin:0pt; font-size:8pt" align=right>225,844&nbsp;</P>
</TD><TD valign=top width=16.667>&nbsp;</TD><TD valign=top width=88.667><P style="margin:0pt; font-size:8pt" align=right>212,342&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=426.667><P style="margin:0pt; font-size:8pt">Prepaid expenses, taxes and other current assets</P>
</TD><TD valign=top width=24.8>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" width=74.4><P style="line-height:10pt; margin:0pt; font-size:8pt" align=right>111,811&nbsp;</P>
</TD><TD valign=top width=16.667>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" width=88.667><P style="margin:0pt; font-size:8pt" align=right>99,480&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=426.667><P style="margin:0pt; text-indent:21.6pt; font-size:8pt">Total current assets </P>
</TD><TD valign=top width=24.8>&nbsp;</TD><TD valign=top width=74.4><P style="margin:0pt; font-size:8pt" align=right>991,649&nbsp;</P>
</TD><TD valign=top width=16.667>&nbsp;</TD><TD valign=top width=88.667><P style="margin:0pt; font-size:8pt" align=right>1,008,211&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=426.667><P style="margin:0pt; font-size:8pt">Net property, plant and equipment </P>
</TD><TD valign=top width=24.8>&nbsp;</TD><TD valign=top width=74.4><P style="margin:0pt; font-size:8pt" align=right>180,774&nbsp;</P>
</TD><TD valign=top width=16.667>&nbsp;</TD><TD valign=top width=88.667><P style="margin:0pt; font-size:8pt" align=right>180,258&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=426.667><P style="margin:0pt; font-size:8pt">Goodwill </P>
</TD><TD valign=top width=24.8>&nbsp;</TD><TD valign=top width=74.4><P style="margin:0pt; font-size:8pt" align=right>113,276&nbsp;</P>
</TD><TD valign=top width=16.667>&nbsp;</TD><TD valign=top width=88.667><P style="margin:0pt; font-size:8pt" align=right>113,276&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=426.667><P style="margin:0pt; font-size:8pt">Purchased intangibles, net</P>
</TD><TD valign=top width=24.8>&nbsp;</TD><TD valign=top width=74.4><P style="margin:0pt; font-size:8pt" align=right>27,269&nbsp;</P>
</TD><TD valign=top width=16.667>&nbsp;</TD><TD valign=top width=88.667><P style="margin:0pt; font-size:8pt" align=right>28,449&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=426.667><P style="margin:0pt; font-size:8pt">Other assets </P>
</TD><TD valign=top width=24.8>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=74.4><P style="margin:0pt; font-size:8pt" align=right>101,817&nbsp;</P>
</TD><TD valign=top width=16.667>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=88.667><P style="margin:0pt; font-size:8pt" align=right>96,388&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=426.667><P style="margin:0pt; text-indent:21.6pt; font-size:8pt">Total assets</P>
</TD><TD valign=top width=24.8>&nbsp;</TD><TD style="border-bottom:2pt double #000000" width=74.4><P style="margin:0pt; font-size:8pt" align=right>$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,414,785&nbsp;</P>
</TD><TD width=16.667>&nbsp;</TD><TD style="border-bottom:2pt double #000000" width=88.667><P style="margin:0pt; font-size:8pt" align=right>$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,426,582&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=426.667>&nbsp;</TD><TD valign=top width=24.8>&nbsp;</TD><TD valign=top width=74.4>&nbsp;</TD><TD valign=top width=16.667>&nbsp;</TD><TD valign=top width=88.667>&nbsp;</TD></TR>
<TR><TD valign=top width=426.667><P style="margin:0pt; font-size:9pt">LIABILITIES AND STOCKHOLDERS&#146; EQUITY:</P>
</TD><TD valign=top width=24.8>&nbsp;</TD><TD valign=top width=74.4>&nbsp;</TD><TD valign=top width=16.667>&nbsp;</TD><TD valign=top width=88.667>&nbsp;</TD></TR>
<TR><TD valign=top width=426.667><P style="margin:0pt; font-size:8pt">Accounts payable</P>
</TD><TD valign=top width=24.8>&nbsp;</TD><TD valign=top width=74.4><P style="margin:0pt; font-size:8pt" align=right>$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;66,643&nbsp;</P>
</TD><TD valign=top width=16.667>&nbsp;</TD><TD valign=top width=88.667><P style="margin:0pt; font-size:8pt" align=right>$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;72,950&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=426.667><P style="margin:0pt; font-size:8pt">Accrued payroll and employee benefits</P>
</TD><TD valign=top width=24.8>&nbsp;</TD><TD valign=top width=74.4><P style="margin:0pt; font-size:8pt" align=right>67,921&nbsp;</P>
</TD><TD valign=top width=16.667>&nbsp;</TD><TD valign=top width=88.667><P style="margin:0pt; font-size:8pt" align=right>81,076&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=426.667><P style="margin:0pt; font-size:8pt">Notes payable and current maturities of long-term debt</P>
</TD><TD valign=top width=24.8>&nbsp;</TD><TD valign=top width=74.4><P style="margin:0pt; font-size:8pt" align=right>3,785&nbsp;</P>
</TD><TD valign=top width=16.667>&nbsp;</TD><TD valign=top width=88.667><P style="margin:0pt; font-size:8pt" align=right>3,341&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=426.667><P style="margin:0pt; font-size:8pt">Sales, income and other taxes payable</P>
</TD><TD valign=top width=24.8>&nbsp;</TD><TD valign=top width=74.4><P style="margin:0pt; font-size:8pt" align=right>22,268&nbsp;</P>
</TD><TD valign=top width=16.667>&nbsp;</TD><TD valign=top width=88.667><P style="margin:0pt; font-size:8pt" align=right>15,841&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=426.667><P style="margin:0pt; font-size:8pt">Litigation accrual</P>
</TD><TD valign=top width=24.8>&nbsp;</TD><TD valign=top width=74.4><P style="margin:0pt; font-size:8pt" align=right>11,534&nbsp;</P>
</TD><TD valign=top width=16.667>&nbsp;</TD><TD valign=top width=88.667><P style="margin:0pt; font-size:8pt" align=right>55,701&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=426.667><P style="margin:0pt; font-size:8pt">Accrued royalties</P>
</TD><TD valign=top width=24.8>&nbsp;</TD><TD valign=top width=74.4><P style="margin:0pt; font-size:8pt" align=right>30,083&nbsp;</P>
</TD><TD valign=top width=16.667>&nbsp;</TD><TD valign=top width=88.667><P style="margin:0pt; font-size:8pt" align=right>34,386&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=426.667><P style="margin:0pt; font-size:8pt">Other current liabilities</P>
</TD><TD valign=top width=24.8>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=74.4><P style="margin:0pt; font-size:8pt" align=right>56,898&nbsp;</P>
</TD><TD valign=top width=16.667>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=88.667><P style="margin:0pt; font-size:8pt" align=right>55,948&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=426.667><P style="margin:0pt; text-indent:21.6pt; font-size:8pt">Total current liabilities</P>
</TD><TD valign=top width=24.8>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=74.4><P style="margin:0pt; font-size:8pt" align=right>259,132&nbsp;</P>
</TD><TD valign=top width=16.667>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=88.667><P style="margin:0pt; font-size:8pt" align=right>319,243&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=426.667><P style="margin:0pt; font-size:8pt">Long-term debt, net of current maturities</P>
</TD><TD valign=top width=24.8>&nbsp;</TD><TD valign=top width=74.4><P style="margin:0pt; font-size:8pt" align=right>425,971&nbsp;</P>
</TD><TD valign=top width=16.667>&nbsp;</TD><TD valign=top width=88.667><P style="margin:0pt; font-size:8pt" align=right>425,687&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=426.667><P style="margin:0pt; font-size:8pt">Deferred tax liabilities</P>
</TD><TD valign=top width=24.8>&nbsp;</TD><TD valign=top width=74.4><P style="margin:0pt; font-size:8pt" align=right>4,833&nbsp;</P>
</TD><TD valign=top width=16.667>&nbsp;</TD><TD valign=top width=88.667><P style="margin:0pt; font-size:8pt" align=right>2,281&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=426.667><P style="margin:0pt; font-size:8pt">Other long-term liabilities</P>
</TD><TD valign=top width=24.8>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=74.4><P style="margin:0pt; font-size:8pt" align=right>22,194&nbsp;</P>
</TD><TD valign=top width=16.667>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=88.667><P style="margin:0pt; font-size:8pt" align=right>21,397&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=426.667><P style="margin:0pt; text-indent:21.6pt; font-size:8pt">Total liabilities </P>
</TD><TD valign=top width=24.8>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" width=74.4><P style="margin:0pt; font-size:8pt" align=right>712,130&nbsp;</P>
</TD><TD width=16.667>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" width=88.667><P style="margin:0pt; font-size:8pt" align=right>768,608&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=426.667>&nbsp;</TD><TD valign=top width=24.8>&nbsp;</TD><TD valign=top width=74.4>&nbsp;</TD><TD valign=top width=16.667>&nbsp;</TD><TD valign=top width=88.667>&nbsp;</TD></TR>
<TR><TD valign=top width=426.667><P style="margin:0pt; font-size:9pt">STOCKHOLDERS&#146; EQUITY:</P>
</TD><TD valign=top width=24.8>&nbsp;</TD><TD valign=top width=74.4>&nbsp;</TD><TD valign=top width=16.667>&nbsp;</TD><TD valign=top width=88.667>&nbsp;</TD></TR>
<TR><TD valign=top width=426.667><P style="margin:0pt; font-size:8pt">Preferred stock, $0.0001 par value, 7,500,000 shares authorized; none outstanding</P>
</TD><TD valign=top width=24.8>&nbsp;</TD><TD valign=top width=74.4>&nbsp;</TD><TD valign=top width=16.667>&nbsp;</TD><TD valign=top width=88.667>&nbsp;</TD></TR>
<TR><TD valign=top width=426.667><P style="margin:0pt; font-size:8pt">Class A common stock, $0.0001 par value, 80,000,000 shares authorized; </P>
</TD><TD valign=top width=24.8>&nbsp;</TD><TD valign=top width=74.4>&nbsp;</TD><TD valign=top width=16.667>&nbsp;</TD><TD valign=top width=88.667>&nbsp;</TD></TR>
<TR><TD valign=top width=426.667><P style="margin:0pt; text-indent:7.2pt; font-size:8pt">outstanding &#150; 21,393,834 at March 31, 2006 and 21,316,556 </P>
</TD><TD valign=top width=24.8>&nbsp;</TD><TD valign=top width=74.4>&nbsp;</TD><TD valign=top width=16.667>&nbsp;</TD><TD valign=top width=88.667>&nbsp;</TD></TR>
<TR><TD valign=top width=426.667><P style="margin:0pt; text-indent:7.2pt; font-size:8pt">at December 31, 2005</P>
</TD><TD valign=top width=24.8>&nbsp;</TD><TD valign=top width=74.4><P style="margin:0pt; font-size:8pt" align=right>2&nbsp;</P>
</TD><TD valign=top width=16.667>&nbsp;</TD><TD valign=top width=88.667><P style="margin:0pt; font-size:8pt" align=right>2&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=426.667><P style="margin:0pt; font-size:8pt">Class B common stock, $0.0001 par value, 20,000,000 shares authorized;</P>
</TD><TD valign=top width=24.8>&nbsp;</TD><TD valign=top width=74.4>&nbsp;</TD><TD valign=top width=16.667>&nbsp;</TD><TD valign=top width=88.667>&nbsp;</TD></TR>
<TR><TD valign=top width=426.667><P style="margin:0pt; text-indent:7.2pt; font-size:8pt">outstanding &#150; 4,909,908 at March 31, 2006 and December 31, 2005</P>
</TD><TD valign=top width=24.8>&nbsp;</TD><TD valign=top width=74.4><P style="margin:0pt; font-size:8pt" align=right>1&nbsp;</P>
</TD><TD valign=top width=16.667>&nbsp;</TD><TD valign=top width=88.667><P style="margin:0pt; font-size:8pt" align=right>1&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=426.667><P style="margin:0pt; font-size:8pt">Additional paid-in capital</P>
</TD><TD valign=top width=24.8>&nbsp;</TD><TD valign=top width=74.4><P style="margin:0pt; font-size:8pt" align=right>64,000&nbsp;</P>
</TD><TD valign=top width=16.667>&nbsp;</TD><TD valign=top width=88.667><P style="margin:0pt; font-size:8pt" align=right>60,112&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=426.667><P style="margin:0pt; font-size:8pt">Retained earnings</P>
</TD><TD valign=top width=24.8>&nbsp;</TD><TD valign=top width=74.4><P style="margin:0pt; font-size:8pt" align=right>602,005&nbsp;</P>
</TD><TD valign=top width=16.667>&nbsp;</TD><TD valign=top width=88.667><P style="margin:0pt; font-size:8pt" align=right>570,807&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=426.667><P style="margin:0pt; font-size:8pt">Accumulated other comprehensive income:</P>
</TD><TD valign=top width=24.8>&nbsp;</TD><TD valign=top width=74.4>&nbsp;</TD><TD valign=top width=16.667>&nbsp;</TD><TD valign=top width=88.667>&nbsp;</TD></TR>
<TR><TD valign=top width=426.667><P style="margin:0pt; text-indent:14.4pt; font-size:8pt">Currency translation and other</P>
</TD><TD valign=top width=24.8>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=74.4><P style="margin:0pt; font-size:8pt" align=right>36,647&nbsp;</P>
</TD><TD valign=top width=16.667>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=88.667><P style="margin:0pt; font-size:8pt" align=right>27,052&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=426.667><P style="margin:0pt; text-indent:14.4pt; font-size:8pt">Total stockholders&#146; equity</P>
</TD><TD valign=top width=24.8>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" width=74.4><P style="margin:0pt; font-size:8pt" align=right>702,655&nbsp;</P>
</TD><TD width=16.667>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" width=88.667><P style="margin:0pt; font-size:8pt" align=right>657,974&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=426.667><P style="margin:0pt; text-indent:28.8pt; font-size:8pt">Total liabilities and stockholders&#146; equity</P>
</TD><TD valign=top width=24.8>&nbsp;</TD><TD style="border-bottom:2pt double #000000" width=74.4><P style="margin:0pt; font-size:8pt" align=right>$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,414,785&nbsp;</P>
</TD><TD width=16.667>&nbsp;</TD><TD style="border-bottom:2pt double #000000" width=88.667><P style="margin:0pt; font-size:8pt" align=right>$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,426,582&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=426.667>&nbsp;</TD><TD valign=top width=24.8>&nbsp;</TD><TD valign=top width=74.4>&nbsp;</TD><TD valign=top width=16.667>&nbsp;</TD><TD valign=top width=88.667>&nbsp;</TD></TR>
<TR><TD valign=top width=631.2 colspan=5><P style="margin:0pt; font-size:8pt">The accompanying notes are an integral part of these consolidated financial statements.</P>
</TD></TR>
</TABLE>
<P style="margin:0pt" align=center><BR>
<BR></P>
<P style="line-height:11pt; margin:0pt; font-size:9pt" align=center>2</P>
<P style="margin:0pt"><BR></P>
<P style="line-height:normal; margin:0pt; font-size:9pt; page-break-before:always" align=center>BIO-RAD LABORATORIES, INC.</P>
<P style="line-height:11pt; margin:0pt; font-size:9pt" align=center>Condensed Consolidated Statements of Cash Flows</P>
<P style="line-height:10pt; margin:0pt; font-size:8pt" align=center>(in thousands)</P>
<P style="line-height:10pt; margin:0pt; font-size:8pt" align=center>(Unaudited)</P>
<TABLE style="font-size:10pt" cellspacing=0><TR><TD width=328.45></TD><TD width=11.85></TD><TD width=51.6></TD><TD width=11.9></TD><TD width=51.6></TD></TR>
<TR><TD valign=top width=437.933>&nbsp;</TD><TD valign=top width=15.8>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=153.467 colspan=3><P style="line-height:10pt; margin:0pt; font-size:9pt" align=center>Three Months Ended </P>
<P style="line-height:10pt; margin:0pt; font-size:9pt" align=center>March 31,</P>
</TD></TR>
<TR><TD valign=top width=437.933>&nbsp;</TD><TD valign=top width=15.8>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=68.8><P style="line-height:10pt; margin:0pt; font-size:9pt" align=right>2006&nbsp;</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=15.867>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=68.8><P style="line-height:10pt; margin:0pt; font-size:9pt" align=center>2005</P>
</TD></TR>
<TR><TD valign=top width=437.933><P style="line-height:11pt; margin-top:0pt; margin-bottom:0.75pt; font-size:9pt">Cash flows from operating activities:</P>
</TD><TD valign=top width=15.8>&nbsp;</TD><TD valign=top width=68.8>&nbsp;</TD><TD valign=top width=15.867>&nbsp;</TD><TD valign=top width=68.8>&nbsp;</TD></TR>
<TR><TD valign=top width=437.933><P style="line-height:11pt; margin-top:0pt; margin-bottom:0.75pt; text-indent:7.2pt; font-size:9pt">Cash received from customers</P>
</TD><TD valign=top width=15.8>&nbsp;</TD><TD valign=top width=68.8><P style="line-height:11pt; margin-top:0pt; margin-bottom:0.75pt; font-size:9pt" align=right>$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;299,764&nbsp;</P>
</TD><TD valign=top width=15.867>&nbsp;</TD><TD valign=top width=68.8><P style="line-height:11pt; margin-top:0pt; margin-bottom:0.75pt; font-size:9pt" align=right>$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;296,648&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=437.933><P style="line-height:11pt; margin-top:0pt; margin-bottom:0.75pt; text-indent:7.2pt; font-size:9pt">Cash paid to suppliers and employees</P>
</TD><TD valign=top width=15.8>&nbsp;</TD><TD valign=top width=68.8><P style="line-height:11pt; margin-top:0pt; margin-bottom:0.75pt; font-size:9pt" align=right>(283,973)</P>
</TD><TD valign=top width=15.867>&nbsp;</TD><TD valign=top width=68.8><P style="line-height:11pt; margin-top:0pt; margin-bottom:0.75pt; font-size:9pt" align=right>(259,242)</P>
</TD></TR>
<TR><TD valign=top width=437.933><P style="line-height:11pt; margin-top:0pt; margin-bottom:0.75pt; text-indent:7.2pt; font-size:9pt">Litigation settlement related to MJ acquisition</P>
</TD><TD valign=top width=15.8>&nbsp;</TD><TD valign=top width=68.8><P style="line-height:11pt; margin-top:0pt; margin-bottom:0.75pt; font-size:9pt" align=right>(44,167)</P>
</TD><TD valign=top width=15.867>&nbsp;</TD><TD valign=top width=68.8><P style="line-height:11pt; margin-top:0pt; margin-bottom:0.75pt; font-size:9pt" align=right>--</P>
</TD></TR>
<TR><TD valign=top width=437.933><P style="line-height:11pt; margin-top:0pt; margin-bottom:0.75pt; text-indent:7.2pt; font-size:9pt">Interest paid</P>
</TD><TD valign=top width=15.8>&nbsp;</TD><TD valign=top width=68.8><P style="line-height:11pt; margin-top:0pt; margin-bottom:0.75pt; font-size:9pt" align=right>(8,938)</P>
</TD><TD valign=top width=15.867>&nbsp;</TD><TD valign=top width=68.8><P style="line-height:11pt; margin-top:0pt; margin-bottom:0.75pt; font-size:9pt" align=right>(8,973)</P>
</TD></TR>
<TR><TD valign=top width=437.933><P style="line-height:11pt; margin-top:0pt; margin-bottom:0.75pt; text-indent:7.2pt; font-size:9pt">Income tax payments</P>
</TD><TD valign=top width=15.8>&nbsp;</TD><TD valign=top width=68.8><P style="line-height:11pt; margin-top:0pt; margin-bottom:0.75pt; font-size:9pt" align=right>(9,562)</P>
</TD><TD valign=top width=15.867>&nbsp;</TD><TD valign=top width=68.8><P style="line-height:11pt; margin-top:0pt; margin-bottom:0.75pt; font-size:9pt" align=right>(6,532)</P>
</TD></TR>
<TR><TD valign=top width=437.933><P style="line-height:11pt; margin-top:0pt; margin-bottom:0.75pt; text-indent:7.2pt; font-size:9pt">Miscellaneous receipts</P>
</TD><TD valign=top width=15.8>&nbsp;</TD><TD valign=top width=68.8><P style="line-height:11pt; margin-top:0pt; margin-bottom:0.75pt; font-size:9pt" align=right>5,133&nbsp;</P>
</TD><TD valign=top width=15.867>&nbsp;</TD><TD valign=top width=68.8><P style="line-height:11pt; margin-top:0pt; margin-bottom:0.75pt; font-size:9pt" align=right>2,982&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=437.933><P style="line-height:11pt; margin-top:0pt; margin-bottom:0.75pt; text-indent:7.2pt; font-size:9pt">Excess tax benefits from stock-based compensation</P>
</TD><TD valign=top width=15.8>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=68.8><P style="line-height:11pt; margin-top:0pt; margin-bottom:0.75pt; font-size:9pt" align=right>(328)</P>
</TD><TD valign=top width=15.867>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=68.8><P style="line-height:11pt; margin-top:0pt; margin-bottom:0.75pt; font-size:9pt" align=right>--&nbsp;</P>
</TD></TR>
<TR><TD width=437.933><P style="line-height:11pt; margin-top:0pt; margin-bottom:0.75pt; text-indent:7.2pt; font-size:9pt">Net cash provided by (used in) operating activities</P>
</TD><TD width=15.8>&nbsp;</TD><TD width=68.8><P style="line-height:11pt; margin-top:0pt; margin-bottom:0.75pt; font-size:9pt" align=right>(42,071)</P>
</TD><TD width=15.867>&nbsp;</TD><TD width=68.8><P style="line-height:11pt; margin-top:0pt; margin-bottom:0.75pt; font-size:9pt" align=right>24,883&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=437.933>&nbsp;</TD><TD valign=top width=15.8>&nbsp;</TD><TD valign=top width=68.8>&nbsp;</TD><TD valign=top width=15.867>&nbsp;</TD><TD valign=top width=68.8>&nbsp;</TD></TR>
<TR><TD valign=top width=437.933><P style="line-height:11pt; margin-top:0pt; margin-bottom:0.75pt; font-size:9pt">Cash flows from investing activities:</P>
</TD><TD valign=top width=15.8>&nbsp;</TD><TD valign=top width=68.8>&nbsp;</TD><TD valign=top width=15.867>&nbsp;</TD><TD valign=top width=68.8>&nbsp;</TD></TR>
<TR><TD valign=top width=437.933><P style="line-height:11pt; margin-top:0pt; margin-bottom:0.75pt; text-indent:7.2pt; font-size:9pt">Capital expenditures, net</P>
</TD><TD valign=top width=15.8>&nbsp;</TD><TD valign=top width=68.8><P style="line-height:11pt; margin-top:0pt; margin-bottom:0.75pt; font-size:9pt" align=right>(11,318)</P>
</TD><TD valign=top width=15.867>&nbsp;</TD><TD valign=top width=68.8><P style="line-height:11pt; margin-top:0pt; margin-bottom:0.75pt; font-size:9pt" align=right>(9,774)</P>
</TD></TR>
<TR><TD valign=top width=437.933><P style="line-height:11pt; margin-top:0pt; margin-bottom:0.75pt; text-indent:7.2pt; font-size:9pt">Payments for acquisitions and investments </P>
</TD><TD valign=top width=15.8>&nbsp;</TD><TD valign=top width=68.8><P style="line-height:11pt; margin-top:0pt; margin-bottom:0.75pt; font-size:9pt" align=right>(586)</P>
</TD><TD valign=top width=15.867>&nbsp;</TD><TD valign=top width=68.8><P style="line-height:11pt; margin-top:0pt; margin-bottom:0.75pt; font-size:9pt" align=right>--&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=437.933><P style="line-height:11pt; margin-top:0pt; margin-bottom:0.75pt; text-indent:7.2pt; font-size:9pt">Payments on purchase of intangible assets </P>
</TD><TD valign=top width=15.8>&nbsp;</TD><TD valign=top width=68.8><P style="line-height:11pt; margin-top:0pt; margin-bottom:0.75pt; font-size:9pt" align=right>--&nbsp;</P>
</TD><TD valign=top width=15.867>&nbsp;</TD><TD valign=top width=68.8><P style="line-height:11pt; margin-top:0pt; margin-bottom:0.75pt; font-size:9pt" align=right>(1,000)</P>
</TD></TR>
<TR><TD valign=top width=437.933><P style="line-height:11pt; margin-top:0pt; margin-bottom:0.75pt; text-indent:7.2pt; font-size:9pt">Purchases of marketable securities and investments </P>
</TD><TD valign=top width=15.8>&nbsp;</TD><TD valign=top width=68.8><P style="line-height:11pt; margin-top:0pt; margin-bottom:0.75pt; font-size:9pt" align=right>(38,522)</P>
</TD><TD valign=top width=15.867>&nbsp;</TD><TD valign=top width=68.8><P style="line-height:11pt; margin-top:0pt; margin-bottom:0.75pt; font-size:9pt" align=right>(667,698)</P>
</TD></TR>
<TR><TD valign=top width=437.933><P style="line-height:11pt; margin-top:0pt; margin-bottom:0.75pt; text-indent:7.2pt; font-size:9pt">Sales of marketable securities and investments</P>
</TD><TD valign=top width=15.8>&nbsp;</TD><TD valign=top width=68.8><P style="line-height:11pt; margin-top:0pt; margin-bottom:0.75pt; font-size:9pt" align=right>22,890&nbsp;</P>
</TD><TD valign=top width=15.867>&nbsp;</TD><TD valign=top width=68.8><P style="line-height:11pt; margin-top:0pt; margin-bottom:0.75pt; font-size:9pt" align=right>769,682&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=437.933><P style="line-height:11pt; margin-top:0pt; margin-bottom:0.75pt; text-indent:7.2pt; font-size:9pt">Receipt of restricted cash</P>
</TD><TD valign=top width=15.8>&nbsp;</TD><TD valign=top width=68.8><P style="line-height:11pt; margin-top:0pt; margin-bottom:0.75pt; font-size:9pt" align=right>36,498&nbsp;</P>
</TD><TD valign=top width=15.867>&nbsp;</TD><TD valign=top width=68.8><P style="line-height:11pt; margin-top:0pt; margin-bottom:0.75pt; font-size:9pt" align=right>--&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=437.933><P style="line-height:11pt; margin-top:0pt; margin-bottom:0.75pt; text-indent:7.2pt; font-size:9pt">Foreign currency economic hedges, net </P>
</TD><TD valign=top width=15.8>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=68.8><P style="line-height:11pt; margin-top:0pt; margin-bottom:0.75pt; font-size:9pt" align=right>(725)</P>
</TD><TD valign=top width=15.867>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=68.8><P style="line-height:11pt; margin-top:0pt; margin-bottom:0.75pt; font-size:9pt" align=right>2,675&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=437.933><P style="line-height:11pt; margin-top:0pt; margin-bottom:0.75pt; text-indent:7.2pt; font-size:9pt">Net cash provided by investing activities </P>
</TD><TD valign=top width=15.8>&nbsp;</TD><TD valign=top width=68.8><P style="line-height:11pt; margin-top:0pt; margin-bottom:0.75pt; font-size:9pt" align=right>8,237&nbsp;</P>
</TD><TD valign=top width=15.867>&nbsp;</TD><TD valign=top width=68.8><P style="line-height:11pt; margin-top:0pt; margin-bottom:0.75pt; font-size:9pt" align=right>93,885&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=437.933>&nbsp;</TD><TD valign=top width=15.8>&nbsp;</TD><TD valign=top width=68.8>&nbsp;</TD><TD valign=top width=15.867>&nbsp;</TD><TD valign=top width=68.8>&nbsp;</TD></TR>
<TR><TD valign=top width=437.933><P style="line-height:11pt; margin-top:0pt; margin-bottom:0.75pt; font-size:9pt">Cash flows from financing activities:</P>
</TD><TD valign=top width=15.8>&nbsp;</TD><TD valign=top width=68.8>&nbsp;</TD><TD valign=top width=15.867>&nbsp;</TD><TD valign=top width=68.8>&nbsp;</TD></TR>
<TR><TD valign=top width=437.933><P style="line-height:11pt; margin-top:0pt; margin-bottom:0.75pt; text-indent:7.2pt; font-size:9pt">Net borrowings under line-of-credit arrangements</P>
</TD><TD valign=top width=15.8>&nbsp;</TD><TD valign=top width=68.8><P style="line-height:11pt; margin-top:0pt; margin-bottom:0.75pt; font-size:9pt" align=right>162&nbsp;</P>
</TD><TD valign=top width=15.867>&nbsp;</TD><TD valign=top width=68.8><P style="line-height:11pt; margin-top:0pt; margin-bottom:0.75pt; font-size:9pt" align=right>208&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=437.933><P style="line-height:11pt; margin-top:0pt; margin-bottom:0.75pt; text-indent:7.2pt; font-size:9pt">Payments on long-term debt</P>
</TD><TD valign=top width=15.8>&nbsp;</TD><TD valign=top width=68.8><P style="line-height:11pt; margin-top:0pt; margin-bottom:0.75pt; font-size:9pt" align=right>(117)</P>
</TD><TD valign=top width=15.867>&nbsp;</TD><TD valign=top width=68.8><P style="line-height:11pt; margin-top:0pt; margin-bottom:0.75pt; font-size:9pt" align=right>(121)</P>
</TD></TR>
<TR><TD valign=top width=437.933><P style="line-height:11pt; margin-top:0pt; margin-bottom:0.75pt; text-indent:7.2pt; font-size:9pt">Proceeds from issuance of common stock</P>
</TD><TD valign=top width=15.8>&nbsp;</TD><TD valign=top width=68.8><P style="line-height:11pt; margin-top:0pt; margin-bottom:0.75pt; font-size:9pt" align=right>2,323&nbsp;</P>
</TD><TD valign=top width=15.867>&nbsp;</TD><TD valign=top width=68.8><P style="line-height:11pt; margin-top:0pt; margin-bottom:0.75pt; font-size:9pt" align=right>2,708&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=437.933><P style="line-height:11pt; margin-top:0pt; margin-bottom:0.75pt; text-indent:7.2pt; font-size:9pt">Excess tax benefits on stock compensation</P>
</TD><TD valign=top width=15.8>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=68.8><P style="line-height:11pt; margin-top:0pt; margin-bottom:0.75pt; font-size:9pt" align=right>328&nbsp;</P>
</TD><TD valign=top width=15.867>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=68.8><P style="line-height:11pt; margin-top:0pt; margin-bottom:0.75pt; font-size:9pt" align=right>--&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=437.933><P style="line-height:11pt; margin-top:0pt; margin-bottom:0.75pt; text-indent:7.2pt; font-size:9pt">Net cash provided by financing activities</P>
</TD><TD valign=top width=15.8>&nbsp;</TD><TD valign=top width=68.8><P style="line-height:11pt; margin-top:0pt; margin-bottom:0.75pt; font-size:9pt" align=right>2,696&nbsp;</P>
</TD><TD valign=top width=15.867>&nbsp;</TD><TD valign=top width=68.8><P style="line-height:11pt; margin-top:0pt; margin-bottom:0.75pt; font-size:9pt" align=right>2,795&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=437.933>&nbsp;</TD><TD valign=top width=15.8>&nbsp;</TD><TD valign=top width=68.8>&nbsp;</TD><TD valign=top width=15.867>&nbsp;</TD><TD valign=top width=68.8>&nbsp;</TD></TR>
<TR><TD valign=top width=437.933><P style="line-height:11pt; margin-top:0pt; margin-bottom:0.75pt; font-size:9pt">Effect of exchange rate changes on cash</P>
</TD><TD valign=top width=15.8>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=68.8><P style="line-height:11pt; margin-top:0pt; margin-bottom:0.75pt; font-size:9pt" align=right>9&nbsp;</P>
</TD><TD valign=top width=15.867>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=68.8><P style="line-height:11pt; margin-top:0pt; margin-bottom:0.75pt; font-size:9pt" align=right>601&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=437.933><P style="line-height:11pt; margin-top:0pt; margin-bottom:0.75pt; font-size:9pt">Net increase (decrease) in cash and cash equivalents</P>
</TD><TD valign=top width=15.8>&nbsp;</TD><TD valign=top width=68.8><P style="line-height:11pt; margin-top:0pt; margin-bottom:0.75pt; font-size:9pt" align=right>(31,129)</P>
</TD><TD valign=top width=15.867>&nbsp;</TD><TD valign=top width=68.8><P style="line-height:11pt; margin-top:0pt; margin-bottom:0.75pt; font-size:9pt" align=right>122,164&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=437.933><P style="line-height:11pt; margin-top:0pt; margin-bottom:0.75pt; font-size:9pt">Cash and cash equivalents at beginning of period</P>
</TD><TD valign=top width=15.8>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=68.8><P style="line-height:11pt; margin-top:0pt; margin-bottom:0.75pt; font-size:9pt" align=right>296,716&nbsp;</P>
</TD><TD valign=top width=15.867>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=68.8><P style="line-height:11pt; margin-top:0pt; margin-bottom:0.75pt; font-size:9pt" align=right>195,734&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=437.933><P style="line-height:11pt; margin-top:0pt; margin-bottom:0.75pt; font-size:9pt">Cash and cash equivalents at end of period</P>
</TD><TD valign=top width=15.8>&nbsp;</TD><TD style="border-bottom:2pt double #000000" width=68.8><P style="line-height:11pt; margin-top:0pt; margin-bottom:0.75pt; font-size:9pt" align=right>$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;265,587&nbsp;</P>
</TD><TD width=15.867>&nbsp;</TD><TD style="border-bottom:2pt double #000000" width=68.8><P style="line-height:11pt; margin-top:0pt; margin-bottom:0.75pt; font-size:9pt" align=right>$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;317,898&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=437.933>&nbsp;</TD><TD valign=top width=15.8>&nbsp;</TD><TD valign=top width=68.8>&nbsp;</TD><TD valign=top width=15.867>&nbsp;</TD><TD valign=top width=68.8>&nbsp;</TD></TR>
<TR><TD valign=top width=437.933><P style="line-height:11pt; margin-top:0pt; margin-bottom:0.75pt; font-size:9pt">Reconciliation of net income to net cash provided by operating activities:&nbsp;</P>
</TD><TD valign=top width=15.8>&nbsp;</TD><TD valign=top width=68.8>&nbsp;</TD><TD valign=top width=15.867>&nbsp;</TD><TD valign=top width=68.8>&nbsp;</TD></TR>
<TR><TD valign=top width=437.933><P style="line-height:11pt; margin-top:0pt; margin-bottom:0.75pt; font-size:9pt">Net income </P>
</TD><TD valign=top width=15.8>&nbsp;</TD><TD valign=top width=68.8><P style="line-height:11pt; margin-top:0pt; margin-bottom:0.75pt; font-size:9pt" align=right>$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;31,198&nbsp;</P>
</TD><TD valign=top width=15.867>&nbsp;</TD><TD valign=top width=68.8><P style="line-height:11pt; margin-top:0pt; margin-bottom:0.75pt; font-size:9pt" align=right>$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;33,494&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=437.933><P style="line-height:11pt; margin-top:0pt; margin-bottom:0.75pt; font-size:9pt">Adjustments to reconcile net income to net cash provided by operating activities:</P>
</TD><TD valign=top width=15.8>&nbsp;</TD><TD valign=top width=68.8>&nbsp;</TD><TD valign=top width=15.867>&nbsp;</TD><TD valign=top width=68.8>&nbsp;</TD></TR>
<TR><TD valign=top width=437.933><P style="line-height:11pt; margin-top:0pt; margin-bottom:0.75pt; text-indent:7.2pt; font-size:9pt">Depreciation and amortization</P>
</TD><TD valign=top width=15.8>&nbsp;</TD><TD valign=top width=68.8><P style="line-height:11pt; margin-top:0pt; margin-bottom:0.75pt; font-size:9pt" align=right>12,971&nbsp;</P>
</TD><TD valign=top width=15.867>&nbsp;</TD><TD valign=top width=68.8><P style="line-height:11pt; margin-top:0pt; margin-bottom:0.75pt; font-size:9pt" align=right>15,171&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=437.933><P style="line-height:11pt; margin-top:0pt; margin-bottom:0.75pt; text-indent:7.2pt; font-size:9pt">Stock based compensation</P>
</TD><TD valign=top width=15.8>&nbsp;</TD><TD valign=top width=68.8><P style="line-height:11pt; margin-top:0pt; margin-bottom:0.75pt; font-size:9pt" align=right>1,143&nbsp;</P>
</TD><TD valign=top width=15.867>&nbsp;</TD><TD valign=top width=68.8><P style="line-height:11pt; margin-top:0pt; margin-bottom:0.75pt; font-size:9pt" align=right>--&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=437.933><P style="line-height:11pt; margin-top:0pt; margin-bottom:0.75pt; text-indent:7.2pt; font-size:9pt">Excess tax benefits from stock based compensation</P>
</TD><TD valign=top width=15.8>&nbsp;</TD><TD valign=top width=68.8><P style="line-height:11pt; margin-top:0pt; margin-bottom:0.75pt; font-size:9pt" align=right>(328)</P>
</TD><TD valign=top width=15.867>&nbsp;</TD><TD valign=top width=68.8><P style="line-height:11pt; margin-top:0pt; margin-bottom:0.75pt; font-size:9pt" align=right>--&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=437.933><P style="line-height:11pt; margin-top:0pt; margin-bottom:0.75pt; text-indent:7.2pt; font-size:9pt">(Increase) decrease in accounts receivable</P>
</TD><TD valign=top width=15.8>&nbsp;</TD><TD valign=top width=68.8><P style="line-height:11pt; margin-top:0pt; margin-bottom:0.75pt; font-size:9pt" align=right>(8,650)</P>
</TD><TD valign=top width=15.867>&nbsp;</TD><TD valign=top width=68.8><P style="line-height:11pt; margin-top:0pt; margin-bottom:0.75pt; font-size:9pt" align=right>2,583&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=437.933><P style="line-height:11pt; margin-top:0pt; margin-bottom:0.75pt; text-indent:7.2pt; font-size:9pt">Increase in inventories </P>
</TD><TD valign=top width=15.8>&nbsp;</TD><TD valign=top width=68.8><P style="line-height:11pt; margin-top:0pt; margin-bottom:0.75pt; font-size:9pt" align=right>(10,780)</P>
</TD><TD valign=top width=15.867>&nbsp;</TD><TD valign=top width=68.8><P style="line-height:11pt; margin-top:0pt; margin-bottom:0.75pt; font-size:9pt" align=right>(7,600)</P>
</TD></TR>
<TR><TD valign=top width=437.933><P style="line-height:11pt; margin-top:0pt; margin-bottom:0.75pt; text-indent:7.2pt; font-size:9pt">Increase in other current assets</P>
</TD><TD valign=top width=15.8>&nbsp;</TD><TD valign=top width=68.8><P style="line-height:11pt; margin-top:0pt; margin-bottom:0.75pt; font-size:9pt" align=right>(8,418)</P>
</TD><TD valign=top width=15.867>&nbsp;</TD><TD valign=top width=68.8><P style="line-height:11pt; margin-top:0pt; margin-bottom:0.75pt; font-size:9pt" align=right>(1,310)</P>
</TD></TR>
<TR><TD valign=top width=437.933><P style="line-height:11pt; margin-top:0pt; margin-bottom:0.75pt; text-indent:7.2pt; font-size:9pt">Decrease in accounts payable and other current liabilities</P>
</TD><TD valign=top width=15.8>&nbsp;</TD><TD valign=top width=68.8><P style="line-height:11pt; margin-top:0pt; margin-bottom:0.75pt; font-size:9pt" align=right>(30,956)</P>
</TD><TD valign=top width=15.867>&nbsp;</TD><TD valign=top width=68.8><P style="line-height:11pt; margin-top:0pt; margin-bottom:0.75pt; font-size:9pt" align=right>(11,636)</P>
</TD></TR>
<TR><TD valign=top width=437.933><P style="line-height:11pt; margin-top:0pt; margin-bottom:0.75pt; text-indent:7.2pt; font-size:9pt">Increase in income taxes payable</P>
</TD><TD valign=top width=15.8>&nbsp;</TD><TD valign=top width=68.8><P style="line-height:11pt; margin-top:0pt; margin-bottom:0.75pt; font-size:9pt" align=right>4,991&nbsp;</P>
</TD><TD valign=top width=15.867>&nbsp;</TD><TD valign=top width=68.8><P style="line-height:11pt; margin-top:0pt; margin-bottom:0.75pt; font-size:9pt" align=right>11,058&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=437.933><P style="line-height:11pt; margin-top:0pt; margin-bottom:0.75pt; text-indent:7.2pt; font-size:9pt">Decrease in litigation accrual</P>
</TD><TD valign=top width=15.8>&nbsp;</TD><TD valign=top width=68.8><P style="line-height:11pt; margin-top:0pt; margin-bottom:0.75pt; font-size:9pt" align=right>(44,167)</P>
</TD><TD valign=top width=15.867>&nbsp;</TD><TD valign=top width=68.8><P style="line-height:11pt; margin-top:0pt; margin-bottom:0.75pt; font-size:9pt" align=right>--&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=437.933><P style="line-height:11pt; margin-top:0pt; margin-bottom:0.75pt; text-indent:7.2pt; font-size:9pt">Other</P>
</TD><TD valign=top width=15.8>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=68.8><P style="line-height:11pt; margin-top:0pt; margin-bottom:0.75pt; font-size:9pt" align=right>10,925&nbsp;</P>
</TD><TD valign=top width=15.867>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=68.8><P style="line-height:11pt; margin-top:0pt; margin-bottom:0.75pt; font-size:9pt" align=right>(16,877)</P>
</TD></TR>
<TR><TD valign=top width=437.933><P style="line-height:11pt; margin-top:0pt; margin-bottom:0.75pt; font-size:9pt">Net cash provided by (used in) operating activities</P>
</TD><TD valign=top width=15.8>&nbsp;</TD><TD style="border-bottom:2pt double #000000" width=68.8><P style="line-height:11pt; margin-top:0pt; margin-bottom:0.75pt; font-size:9pt" align=right>$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(42,071)</P>
</TD><TD width=15.867>&nbsp;</TD><TD style="border-bottom:2pt double #000000" width=68.8><P style="line-height:11pt; margin-top:0pt; margin-bottom:0.75pt; font-size:9pt" align=right>$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;24,883&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=437.933>&nbsp;</TD><TD valign=top width=15.8>&nbsp;</TD><TD valign=top width=68.8>&nbsp;</TD><TD valign=top width=15.867>&nbsp;</TD><TD valign=top width=68.8>&nbsp;</TD></TR>
<TR><TD valign=top width=437.933><P style="line-height:11pt; margin:0pt; font-size:9pt">The accompanying notes are an integral part of these consolidated financial statements.</P>
</TD><TD valign=top width=15.8>&nbsp;</TD><TD valign=top width=68.8>&nbsp;</TD><TD valign=top width=15.867>&nbsp;</TD><TD valign=top width=68.8>&nbsp;</TD></TR>
</TABLE>
<P style="margin-top:0pt; margin-bottom:6pt">
<P style="line-height:11pt; margin:0pt; font-size:9pt" align=center>3</P>
<P style="margin:0pt"><BR></P>
<P style="margin-top:0pt; margin-bottom:5.5pt; page-break-before:always"><BR></P>
<TABLE style="font-size:10pt" cellspacing=0><TR><TD width=478.8></TD></TR>
<TR><TD valign=top width=638.4><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>BIO-RAD LABORATORIES, INC</P>
</TD></TR>
<TR><TD valign=top width=638.4>&nbsp;</TD></TR>
<TR><TD valign=top width=638.4><P style="margin:0pt; font-size:11pt" align=center>Notes to Condensed Consolidated Financial Statements</P>
</TD></TR>
<TR><TD valign=top width=638.4><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>(Unaudited)</P>
</TD></TR>
</TABLE>
<P style="margin:0pt"><BR></P>
<TABLE style="font-size:10pt" cellspacing=0><TR><TD width=27></TD><TD width=171.25></TD></TR>
<TR><TD valign=top width=36><P style="line-height:13pt; margin:0pt; font-size:11pt" align=justify>1.</P>
</TD><TD valign=top width=228.333><P style="line-height:13pt; margin:0pt; font-size:11pt">BASIS OF PRESENTATION</P>
</TD></TR>
</TABLE>
<P style="margin:0pt"><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt">In this report, &#147;Bio-Rad,&#148; &#147;we,&#148; &#147;us,&#148; and &#147;our&#148; refer to Bio-Rad Laboratories, Inc. and its subsidiaries. &nbsp;The accompanying unaudited condensed consolidated financial statements of Bio-Rad have been prepared in accordance with accounting principles generally accepted in the United States of America and reflect all adjustments which are, in the opinion of management, necessary to fairly state the results of the interim periods presented. &nbsp;All such adjustments are of a normal recurring nature. &nbsp;Results for the interim period are not necessarily indicative of the results for the entire year. &nbsp;The condensed consolidated financial statements should be read in conjunction with the notes to the consolidated financial statements contained in our Annual Report for the year ended December 31, 2005. &nbsp;Certain prior year items have been reclassified to conform to the current year&#146;s presentation.<
/P>
<P style="margin:0pt"><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt"><I>Share-Based Compensation Accounting Policy</I></P>
<P style="margin:0pt"><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt">Prior to January 1, 2006, we applied Accounting Principles Board Opinion No. 25, &#147;Accounting for Stock Issued to Employees&#148; (APB No. 25), and related Interpretations, in accounting for our share-based compensation plans. &nbsp;All employee stock options were granted at or above the grant date market price. &nbsp;Accordingly, no compensation cost was recognized in the financial statements but was included as a pro forma disclosure in the consolidated financial statements. &nbsp;We also recorded no compensation expense in connection with our Employee Stock Purchase Plan as the purchase price of the stock was not less than 85% of the lower of the fair market value of our common stock at the beginning of each offering period or at the end of each purchase period.</P>
<P style="margin:0pt"><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt">As of January 1, 2006, we adopted the fair value recognition provisions of Statement of Financial Accounting Standards (SFAS)123(R), &#147;Share-Based Payment&#148; using the modified-prospective method. &nbsp;Under this transition method we are required to record compensation expense for all awards granted after the date of adoption and for the unvested portion of previously granted awards that remain outstanding at the date of adoption. &nbsp;In accordance with the modified prospective transition method, our results for prior periods have not been restated. &nbsp;See Note 11 for information on the impact of our adoption of SFAS 123(R).</P>
<P style="margin:0pt"><BR>
<BR></P>
<P style="line-height:11pt; margin:0pt; font-size:9pt" align=center>4</P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt; page-break-before:always"><BR></P>
<TABLE style="font-size:10pt" cellspacing=0><TR><TD width=27></TD><TD width=171.25></TD></TR>
<TR><TD valign=top width=36><P style="line-height:13pt; margin:0pt; font-size:11pt" align=justify>2.</P>
</TD><TD valign=top width=228.333><P style="line-height:13pt; margin:0pt; font-size:11pt">RESTRICTED CASH</P>
</TD></TR>
</TABLE>
<P style="margin:0pt"><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt">Restricted cash of $36.1 million December 31, 2005 represented deposits in a money market account that was used as collateral to protect the surety company in connection with its execution of a surety bond in the amount of $37.2 million to stay the enforcement of the judgment in a legal matter. &nbsp;This matter has since been settled and the surety bond is no longer needed. &nbsp;The cash is no longer restricted and has been returned to cash and equivalents.</P>
<P style="margin:0pt"><BR></P>
<TABLE style="font-size:10pt" cellspacing=0><TR><TD width=27></TD><TD width=171.25></TD></TR>
<TR><TD valign=top width=36><P style="line-height:13pt; margin:0pt; font-size:11pt" align=justify>3.</P>
</TD><TD valign=top width=228.333><P style="line-height:13pt; margin:0pt; font-size:11pt">SHORT-TERM INVESTMENTS</P>
</TD></TR>
</TABLE>
<P style="margin:0pt"><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt">Short-term investments consist of the following (in millions): </P>
<P style="margin:0pt"><BR></P>
<TABLE style="font-size:10pt" cellspacing=0><TR><TD width=216></TD><TD width=11.8></TD><TD width=69.2></TD><TD width=11.8></TD><TD width=69.2></TD></TR>
<TR><TD valign=top width=288>&nbsp;</TD><TD valign=top width=15.733>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=92.267><P style="margin:0pt" align=center>March 31, 2006</P>
</TD><TD valign=top width=15.733>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=92.267><P style="margin:0pt" align=center>December 31,</P>
<P style="margin:0pt" align=center>2005</P>
</TD></TR>
<TR><TD valign=top width=288><P style="margin:0pt">Available-for-sale securities:</P>
</TD><TD valign=top width=15.733>&nbsp;</TD><TD valign=top width=92.267>&nbsp;</TD><TD valign=top width=15.733>&nbsp;</TD><TD valign=top width=92.267>&nbsp;</TD></TR>
<TR><TD valign=top width=288><P style="margin:0pt; padding-left:28.8pt">Asset backed securities</P>
</TD><TD valign=top width=15.733>&nbsp;</TD><TD width=92.267><P style="margin:0pt" align=right>$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;45.0&nbsp;</P>
</TD><TD valign=top width=15.733>&nbsp;</TD><TD width=92.267><P style="margin:0pt" align=right>$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;36.6&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=288><P style="margin:0pt; padding-left:28.8pt">Corporate obligations</P>
</TD><TD valign=top width=15.733>&nbsp;</TD><TD width=92.267><P style="margin:0pt" align=right>37.3&nbsp;</P>
</TD><TD valign=top width=15.733>&nbsp;</TD><TD width=92.267><P style="margin:0pt" align=right>31.4&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=288><P style="margin:0pt; padding-left:28.8pt">U.S Agencies</P>
</TD><TD valign=top width=15.733>&nbsp;</TD><TD width=92.267><P style="margin:0pt" align=right>19.9&nbsp;</P>
</TD><TD valign=top width=15.733>&nbsp;</TD><TD width=92.267><P style="margin:0pt" align=right>25.5&nbsp;</P>
</TD></TR>
<TR><TD width=288><P style="margin:0pt; padding-left:28.8pt">Variable rate notes</P>
</TD><TD valign=top width=15.733>&nbsp;</TD><TD width=92.267><P style="margin:0pt" align=right>10.2&nbsp;</P>
</TD><TD valign=top width=15.733>&nbsp;</TD><TD width=92.267><P style="margin:0pt" align=right>8.7&nbsp;</P>
</TD></TR>
<TR><TD width=288><P style="margin:0pt; padding-left:28.8pt">Auction rate securities </P>
</TD><TD valign=top width=15.733>&nbsp;</TD><TD width=92.267><P style="margin:0pt" align=right>--&nbsp;</P>
</TD><TD valign=top width=15.733>&nbsp;</TD><TD width=92.267><P style="margin:0pt" align=right>3.9&nbsp;</P>
</TD></TR>
<TR><TD width=288><P style="margin:0pt; padding-left:28.8pt">Marketable equity securities</P>
</TD><TD valign=top width=15.733>&nbsp;</TD><TD width=92.267><P style="margin:0pt" align=right>7.7&nbsp;</P>
</TD><TD valign=top width=15.733>&nbsp;</TD><TD width=92.267><P style="margin:0pt" align=right>--&nbsp;</P>
</TD></TR>
<TR><TD width=288><P style="margin:0pt; padding-left:28.8pt">Other</P>
</TD><TD valign=top width=15.733>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" width=92.267><P style="margin:0pt" align=right>9.1&nbsp;</P>
</TD><TD valign=top width=15.733>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" width=92.267><P style="margin:0pt" align=right>10.2&nbsp;</P>
</TD></TR>
<TR><TD width=288><P style="margin:0pt">Total short-term investments</P>
</TD><TD valign=top width=15.733>&nbsp;</TD><TD style="border-bottom:2pt double #000000" width=92.267><P style="margin:0pt" align=right>$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;129.2&nbsp;</P>
</TD><TD valign=top width=15.733>&nbsp;</TD><TD style="border-bottom:2pt double #000000" valign=top width=92.267><P style="margin:0pt" align=right>$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;116.3&nbsp;</P>
</TD></TR>
</TABLE>
<P style="margin:0pt"><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt">Management classifies investments in marketable securities at the time of purchase. &nbsp;Marketable debt and equity securities classified as short-term investments have been designated as available-for-sale and are stated at fair value which approximates cost. &nbsp;These investments are marked to market, with unrealized gains and losses reported as a component of comprehensive income.</P>
<P style="margin:0pt"><BR></P>
<TABLE style="font-size:10pt" cellspacing=0><TR><TD width=27></TD><TD width=171.25></TD></TR>
<TR><TD valign=top width=36><P style="line-height:13pt; margin:0pt; font-size:11pt" align=justify>4.</P>
</TD><TD valign=top width=228.333><P style="line-height:13pt; margin:0pt; font-size:11pt">INVENTORIES</P>
</TD></TR>
</TABLE>
<P style="margin:0pt"><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt">The principal components of inventories are as follows (in millions):</P>
<P style="margin:0pt"><BR></P>
<TABLE style="font-size:10pt" cellspacing=0><TR><TD width=216></TD><TD width=11.8></TD><TD width=69.2></TD><TD width=11.8></TD><TD width=69.2></TD></TR>
<TR><TD valign=top width=288>&nbsp;</TD><TD valign=top width=15.733>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=92.267><P style="margin:0pt" align=center>March 31, 2006</P>
</TD><TD valign=top width=15.733>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=92.267><P style="margin:0pt" align=center>December 31,</P>
<P style="margin:0pt" align=center>2005</P>
</TD></TR>
<TR><TD valign=top width=288>&nbsp;</TD><TD valign=top width=15.733>&nbsp;</TD><TD valign=top width=92.267>&nbsp;</TD><TD valign=top width=15.733>&nbsp;</TD><TD valign=top width=92.267>&nbsp;</TD></TR>
<TR><TD valign=top width=288><P style="margin:0pt">Raw materials</P>
</TD><TD valign=top width=15.733>&nbsp;</TD><TD valign=top width=92.267><P style="margin:0pt" align=right>$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;49.0&nbsp;</P>
</TD><TD valign=top width=15.733>&nbsp;</TD><TD valign=top width=92.267><P style="margin:0pt" align=right>$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;48.3&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=288><P style="margin:0pt">Work in process</P>
</TD><TD valign=top width=15.733>&nbsp;</TD><TD valign=top width=92.267><P style="margin:0pt" align=right>55.9&nbsp;</P>
</TD><TD valign=top width=15.733>&nbsp;</TD><TD valign=top width=92.267><P style="margin:0pt" align=right>51.6&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=288><P style="margin:0pt">Finished goods</P>
</TD><TD valign=top width=15.733>&nbsp;</TD><TD valign=top width=92.267><P style="margin:0pt; padding-bottom:3pt; border-bottom:0.5pt solid #000000" align=right>120.9&nbsp;</P>
</TD><TD valign=top width=15.733>&nbsp;</TD><TD valign=top width=92.267><P style="margin:0pt; padding-bottom:3pt; border-bottom:0.5pt solid #000000" align=right>112.4&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=288>&nbsp;</TD><TD valign=top width=15.733>&nbsp;</TD><TD style="border-bottom:2pt double #000000" valign=top width=92.267><P style="margin:0pt" align=right>$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;225.8&nbsp;</P>
</TD><TD valign=top width=15.733>&nbsp;</TD><TD style="border-bottom:2pt double #000000" valign=top width=92.267><P style="margin:0pt" align=right>$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;212.3&nbsp;</P>
</TD></TR>
</TABLE>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt"><BR>
<BR></P>
<P style="line-height:11pt; margin:0pt; font-size:9pt" align=center>5</P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt; page-break-before:always"><BR></P>
<TABLE style="font-size:10pt" cellspacing=0><TR><TD width=27></TD><TD width=216></TD></TR>
<TR><TD valign=top width=36><P style="line-height:13pt; margin:0pt; font-size:11pt" align=justify>5.</P>
</TD><TD valign=top width=288><P style="line-height:13pt; margin:0pt; font-size:11pt">PROPERTY, PLANT AND EQUIPMENT</P>
</TD></TR>
</TABLE>
<P style="margin:0pt"><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt">The principal components of property, plant and equipment are as follows (in millions):</P>
<P style="margin:0pt"><BR></P>
<TABLE style="font-size:10pt" cellspacing=0><TR><TD width=225></TD><TD width=11.8></TD><TD width=60.2></TD><TD width=11.8></TD><TD width=69.2></TD></TR>
<TR><TD valign=top width=300>&nbsp;</TD><TD valign=top width=15.733>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=80.267><P style="margin:0pt" align=center>March 31, 2006</P>
</TD><TD valign=top width=15.733>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=92.267><P style="margin:0pt" align=center>December 31, 2005</P>
</TD></TR>
<TR><TD valign=top width=300>&nbsp;</TD><TD valign=top width=15.733>&nbsp;</TD><TD valign=top width=80.267>&nbsp;</TD><TD valign=top width=15.733>&nbsp;</TD><TD valign=top width=92.267>&nbsp;</TD></TR>
<TR><TD valign=top width=300><P style="line-height:13pt; margin:0pt; font-size:11pt">Land and improvements</P>
</TD><TD valign=top width=15.733>&nbsp;</TD><TD valign=top width=80.267><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.7&nbsp;</P>
</TD><TD valign=top width=15.733>&nbsp;</TD><TD valign=top width=92.267><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.8</P>
</TD></TR>
<TR><TD valign=top width=300><P style="line-height:13pt; margin:0pt; font-size:11pt">Buildings and leasehold improvements</P>
</TD><TD valign=top width=15.733>&nbsp;</TD><TD valign=top width=80.267><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>121.5&nbsp;</P>
</TD><TD valign=top width=15.733>&nbsp;</TD><TD valign=top width=92.267><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>120.0</P>
</TD></TR>
<TR><TD valign=top width=300><P style="line-height:13pt; margin:0pt; font-size:11pt">Equipment</P>
</TD><TD valign=top width=15.733>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=80.267><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>332.4&nbsp;</P>
</TD><TD valign=top width=15.733>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=92.267><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>322.4</P>
</TD></TR>
<TR><TD valign=top width=300>&nbsp;</TD><TD valign=top width=15.733>&nbsp;</TD><TD valign=top width=80.267><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>463.6&nbsp;</P>
</TD><TD valign=top width=15.733>&nbsp;</TD><TD valign=top width=92.267><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>452.2</P>
</TD></TR>
<TR><TD valign=top width=300><P style="line-height:13pt; margin:0pt; font-size:11pt">Accumulated depreciation</P>
</TD><TD valign=top width=15.733>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=80.267><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>(282.8)</P>
</TD><TD valign=top width=15.733>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=92.267><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>(271.9)</P>
</TD></TR>
<TR><TD valign=top width=300><P style="line-height:13pt; margin:0pt; font-size:11pt">Net property, plant and equipment</P>
</TD><TD valign=top width=15.733>&nbsp;</TD><TD style="border-bottom:2pt double #000000" valign=top width=80.267><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;180.8&nbsp;</P>
</TD><TD valign=top width=15.733>&nbsp;</TD><TD style="border-bottom:2pt double #000000" valign=top width=92.267><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;180.3</P>
</TD></TR>
</TABLE>
<P style="margin:0pt"><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt">Net capital expenditures include proceeds from the sale of property, plant and equipment of $0.1 million for the three months ended March 31, 2006 and 2005.</P>
<P style="margin:0pt"><BR></P>
<TABLE style="font-size:10pt" cellspacing=0><TR><TD width=27></TD><TD width=333.25></TD></TR>
<TR><TD valign=top width=36><P style="line-height:13pt; margin:0pt; font-size:11pt" align=justify>6.</P>
</TD><TD valign=top width=444.333><P style="line-height:13pt; margin:0pt; font-size:11pt">GOODWILL AND OTHER PURCHASED INTANGIBLE ASSETS</P>
</TD></TR>
</TABLE>
<P style="margin:0pt"><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt">Other than goodwill, we have no intangible assets with indefinite lives. &nbsp;Information regarding our identifiable purchased intangible assets is as follows (in millions):</P>
<P style="margin:0pt"><BR></P>
<TABLE style="font-size:10pt" cellspacing=0 align=center><TR><TD width=154.8></TD><TD width=63.5></TD><TD width=63></TD><TD width=78.25></TD><TD width=53.5></TD></TR>
<TR><TD style="border-bottom:0.5pt solid #000000" valign=top width=206.4>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=344.333 colspan=4><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>March 31, 2006</P>
</TD></TR>
<TR><TD valign=top width=206.4>&nbsp;</TD><TD valign=top width=84.667><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>Average</P>
</TD><TD valign=top width=84><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>Carrying</P>
</TD><TD valign=top width=104.333><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>Accumulated</P>
</TD><TD valign=top width=71.333>&nbsp;</TD></TR>
<TR><TD valign=top width=206.4>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=84.667><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>Useful Life</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=84><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>Amount</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=104.333><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>Amortization</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=71.333><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>Net</P>
</TD></TR>
<TR><TD valign=top width=206.4><P style="line-height:13pt; margin:0pt; font-size:11pt">Developed Product Technology</P>
</TD><TD valign=top width=84.667><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>5&nbsp;</P>
</TD><TD valign=top width=84><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.2&nbsp;</P>
</TD><TD valign=top width=104.333><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>$ &nbsp;&nbsp;&nbsp;1.9&nbsp;</P>
</TD><TD valign=top width=71.333><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>$ &nbsp;&nbsp;7.3&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=206.4><P style="line-height:13pt; margin:0pt; font-size:11pt">Licenses</P>
</TD><TD valign=top width=84.667><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>13&nbsp;</P>
</TD><TD valign=top width=84><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>14.0&nbsp;</P>
</TD><TD valign=top width=104.333><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>1.5&nbsp;</P>
</TD><TD valign=top width=71.333><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>12.5&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=206.4><P style="line-height:13pt; margin:0pt; font-size:11pt">Know How</P>
</TD><TD valign=top width=84.667><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>6&nbsp;</P>
</TD><TD valign=top width=84><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>8.9&nbsp;</P>
</TD><TD valign=top width=104.333><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>4.1&nbsp;</P>
</TD><TD valign=top width=71.333><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>4.8&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=206.4><P style="line-height:13pt; margin:0pt; font-size:11pt">Covenants Not to Compete</P>
</TD><TD valign=top width=84.667><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>2&nbsp;</P>
</TD><TD valign=top width=84><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>2.0&nbsp;</P>
</TD><TD valign=top width=104.333><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>0.8&nbsp;</P>
</TD><TD valign=top width=71.333><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>1.2&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=206.4><P style="line-height:13pt; margin:0pt; font-size:11pt">Patents</P>
</TD><TD valign=top width=84.667><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>4&nbsp;</P>
</TD><TD valign=top width=84><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>1.0&nbsp;</P>
</TD><TD valign=top width=104.333><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>--&nbsp;</P>
</TD><TD valign=top width=71.333><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>1.0&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=206.4><P style="line-height:13pt; margin:0pt; font-size:11pt">Customer Lists</P>
</TD><TD valign=top width=84.667><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>1&nbsp;</P>
</TD><TD valign=top width=84><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>0.6&nbsp;</P>
</TD><TD valign=top width=104.333><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>0.3&nbsp;</P>
</TD><TD valign=top width=71.333><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>0.3&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=206.4><P style="line-height:13pt; margin:0pt; font-size:11pt">Other</P>
</TD><TD valign=top width=84.667><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>3&nbsp;</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=84><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>2.2&nbsp;</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=104.333><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>2.0&nbsp;</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=71.333><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>0.2&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=206.4>&nbsp;</TD><TD valign=top width=84.667>&nbsp;</TD><TD style="border-bottom:2pt double #000000" valign=top width=84><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>$ &nbsp;&nbsp;37.9&nbsp;</P>
</TD><TD style="border-bottom:2pt double #000000" valign=top width=104.333><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>$ &nbsp;&nbsp;10.6&nbsp;</P>
</TD><TD style="border-bottom:2pt double #000000" valign=top width=71.333><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>$ &nbsp;27.3&nbsp;</P>
</TD></TR>
</TABLE>
<P style="margin:0pt"><BR></P>
<TABLE style="font-size:10pt" cellspacing=0 align=center><TR><TD width=154.8></TD><TD width=63.5></TD><TD width=63></TD><TD width=78.25></TD><TD width=53.5></TD></TR>
<TR><TD style="border-bottom:0.5pt solid #000000" valign=top width=206.4>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=344.333 colspan=4><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>December 31, 2005</P>
</TD></TR>
<TR><TD valign=top width=206.4>&nbsp;</TD><TD valign=top width=84.667><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>Average</P>
</TD><TD valign=top width=84><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>Carrying</P>
</TD><TD valign=top width=104.333><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>Accumulated</P>
</TD><TD valign=top width=71.333>&nbsp;</TD></TR>
<TR><TD valign=top width=206.4>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=84.667><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>Useful Life</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=84><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>Amount</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=104.333><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>Amortization</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=71.333><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>Net</P>
</TD></TR>
<TR><TD valign=top width=206.4><P style="line-height:13pt; margin:0pt; font-size:11pt">Developed Product Technology</P>
</TD><TD valign=top width=84.667><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>5&nbsp;</P>
</TD><TD valign=top width=84><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.2&nbsp;</P>
</TD><TD valign=top width=104.333><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>$ &nbsp;&nbsp;&nbsp;1.4&nbsp;</P>
</TD><TD valign=top width=71.333><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>$ &nbsp;&nbsp;7.8&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=206.4><P style="line-height:13pt; margin:0pt; font-size:11pt">Licenses</P>
</TD><TD valign=top width=84.667><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>13&nbsp;</P>
</TD><TD valign=top width=84><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>14.0&nbsp;</P>
</TD><TD valign=top width=104.333><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>1.3&nbsp;</P>
</TD><TD valign=top width=71.333><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>12.7&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=206.4><P style="line-height:13pt; margin:0pt; font-size:11pt">Know How</P>
</TD><TD valign=top width=84.667><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>6&nbsp;</P>
</TD><TD valign=top width=84><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>8.7&nbsp;</P>
</TD><TD valign=top width=104.333><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>3.7&nbsp;</P>
</TD><TD valign=top width=71.333><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>5.0&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=206.4><P style="line-height:13pt; margin:0pt; font-size:11pt">Covenants Not to Compete</P>
</TD><TD valign=top width=84.667><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>2&nbsp;</P>
</TD><TD valign=top width=84><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>2.0&nbsp;</P>
</TD><TD valign=top width=104.333><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>0.7&nbsp;</P>
</TD><TD valign=top width=71.333><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>1.3&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=206.4><P style="line-height:13pt; margin:0pt; font-size:11pt">Patents</P>
</TD><TD valign=top width=84.667><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>4&nbsp;</P>
</TD><TD valign=top width=84><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>1.0&nbsp;</P>
</TD><TD valign=top width=104.333><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>--&nbsp;</P>
</TD><TD valign=top width=71.333><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>1.0&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=206.4><P style="line-height:13pt; margin:0pt; font-size:11pt">Customer Lists</P>
</TD><TD valign=top width=84.667><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>1&nbsp;</P>
</TD><TD valign=top width=84><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>0.6&nbsp;</P>
</TD><TD valign=top width=104.333><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>0.2&nbsp;</P>
</TD><TD valign=top width=71.333><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>0.4&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=206.4><P style="line-height:13pt; margin:0pt; font-size:11pt">Other</P>
</TD><TD valign=top width=84.667><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>3&nbsp;</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=84><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>2.2&nbsp;</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=104.333><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>2.0&nbsp;</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=71.333><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>0.2&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=206.4>&nbsp;</TD><TD valign=top width=84.667>&nbsp;</TD><TD style="border-bottom:2pt double #000000" valign=top width=84><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>$ &nbsp;&nbsp;&nbsp;37.7&nbsp;</P>
</TD><TD style="border-bottom:2pt double #000000" valign=top width=104.333><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>$ &nbsp;&nbsp;&nbsp;9.3&nbsp;</P>
</TD><TD style="border-bottom:2pt double #000000" valign=top width=71.333><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>$ &nbsp;28.4&nbsp;</P>
</TD></TR>
</TABLE>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt"><BR>
<BR></P>
<P style="line-height:11pt; margin:0pt; font-size:9pt" align=center>6</P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt; page-break-before:always"><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt">Recorded purchased intangible asset amortization expense for the three months ended March 31, 2006 and 2005 was $1.3 million and $2.8 million, respectively. Estimated purchased intangible asset amortization expense (based on existing intangible assets) for the years ended December 31, 2007, 2008, 2009, 2010 and 2011 is $5.1 million, $4.5 million, $3.0 million, $2.0 million and $1.4 million, respectively.</P>
<P style="margin:0pt"><BR></P>
<TABLE style="font-size:10pt" cellspacing=0><TR><TD width=27></TD><TD width=225></TD></TR>
<TR><TD valign=top width=36><P style="line-height:13pt; margin:0pt; font-size:11pt" align=justify>7.</P>
</TD><TD valign=top width=300><P style="line-height:13pt; margin:0pt; font-size:11pt">DISCONTINUED OPERATIONS</P>
</TD></TR>
</TABLE>
<P style="margin:0pt"><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt">On May 31, 2004, we sold a group of assets and transferred certain liabilities that comprise a substantial portion of our confocal microscopy product line to Carl Zeiss Jena GmbH. &nbsp;As required by Statement of Financial Accounting Standard (SFAS) 144, &#147;Accounting for the Impairment or Disposal of Long-Lived Assets,&#148; with the disposition of this asset group, the sales and expenses related to this product line for current and prior periods have been reclassified as a separate line on the income statement titled &#147;Discontinued Operations.&#148;</P>
<P style="margin:0pt"><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt">Since the discontinued operations were sold in the second quarter of 2004, there were no sales or operating losses in the three months ended March 31, 2005. &nbsp;However, during that quarter, we reached an agreement to settle the $6.7 million estimated lease commitment that comprised the most significant portion of the original shut-down provision. &nbsp;Consequently, we recognized a $4.0 million gain on the revised disposition of the confocal microscopy product line.</P>
<P style="margin:0pt"><BR></P>
<TABLE style="font-size:10pt" cellspacing=0><TR><TD width=27></TD><TD width=225></TD></TR>
<TR><TD valign=top width=36><P style="line-height:13pt; margin:0pt; font-size:11pt" align=justify>8.</P>
</TD><TD valign=top width=300><P style="line-height:13pt; margin:0pt; font-size:11pt">PRODUCT WARRANTY LIABILITY</P>
</TD></TR>
</TABLE>
<P style="margin:0pt"><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt">Bio-Rad warrants certain equipment against defects in design, materials and workmanship, generally for one year. &nbsp;Upon shipment of that equipment, we establish, as part of cost of goods sold, a provision for the expected cost of such warranty.</P>
<P style="margin:0pt"><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt">Components of the product warranty liability included in other current liabilities and other long-term liabilities were as follows (in millions):</P>
<P style="line-height:9pt; margin:0pt"><BR></P>
<TABLE style="font-size:10pt" cellspacing=0 align=center><TR><TD width=183.55></TD><TD width=11.8></TD><TD width=44.9></TD><TD width=13.4></TD><TD width=44.65></TD></TR>
<TR><TD valign=top width=244.733>&nbsp;</TD><TD valign=top width=15.733>&nbsp;</TD><TD valign=top width=137.267 colspan=3>&nbsp;</TD></TR>
<TR><TD valign=top width=244.733>&nbsp;</TD><TD valign=top width=15.733>&nbsp;</TD><TD valign=top width=59.867><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>2006</P>
</TD><TD valign=top width=17.867>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=59.533><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>2005</P>
</TD></TR>
<TR><TD valign=top width=244.733><P style="line-height:13pt; margin:0pt; padding-right:14.4pt; font-size:11pt">January 1,</P>
</TD><TD valign=top width=15.733>&nbsp;</TD><TD style="border-top:0.5pt solid #000000" valign=top width=59.867><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>$ &nbsp;&nbsp;&nbsp;&nbsp;12.0&nbsp;</P>
</TD><TD valign=top width=17.867>&nbsp;</TD><TD valign=top width=59.533><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>$ &nbsp;&nbsp;&nbsp;&nbsp;10.1&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=244.733><P style="line-height:13pt; margin:0pt; padding-right:14.4pt; text-indent:14.4pt; font-size:11pt">Provision for warranty</P>
</TD><TD valign=top width=15.733>&nbsp;</TD><TD valign=top width=59.867><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>3.2&nbsp;</P>
</TD><TD valign=top width=17.867>&nbsp;</TD><TD valign=top width=59.533><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>2.9&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=244.733><P style="line-height:13pt; margin:0pt; padding-right:14.4pt; text-indent:14.4pt; font-size:11pt" align=justify>Actual warranty costs</P>
</TD><TD valign=top width=15.733>&nbsp;</TD><TD valign=top width=59.867><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>(3.3)</P>
</TD><TD valign=top width=17.867>&nbsp;</TD><TD valign=top width=59.533><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>(2.7)</P>
</TD></TR>
<TR><TD valign=top width=244.733><P style="line-height:13pt; margin:0pt; padding-right:14.4pt; font-size:11pt" align=justify>March 31,</P>
</TD><TD valign=top width=15.733>&nbsp;</TD><TD style="border-top:0.5pt solid #000000; border-bottom:2pt double #000000" valign=top width=59.867><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>$ &nbsp;&nbsp;&nbsp;&nbsp;11.9&nbsp;</P>
</TD><TD valign=top width=17.867>&nbsp;</TD><TD style="border-top:0.5pt solid #000000; border-bottom:2pt double #000000" valign=top width=59.533><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>$ &nbsp;&nbsp;&nbsp;&nbsp;10.3&nbsp;</P>
</TD></TR>
</TABLE>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt"><BR>
<BR></P>
<P style="line-height:11pt; margin:0pt; font-size:9pt" align=center>7</P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt; page-break-before:always"><BR></P>
<TABLE style="font-size:10pt" cellspacing=0><TR><TD width=27></TD><TD width=228.05></TD></TR>
<TR><TD valign=top width=36><P style="line-height:13pt; margin:0pt; font-size:11pt" align=justify>9.</P>
</TD><TD valign=top width=304.067><P style="line-height:13pt; margin:0pt; font-size:11pt">LONG-TERM DEBT</P>
</TD></TR>
</TABLE>
<P style="margin:0pt"><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt">In June 2005, Bio-Rad entered into a new Credit Agreement, which amends and restates the Credit Agreement dated September 9, 2003, as amended December 8, 2004. &nbsp;Borrowings are permitted up to a maximum of $150.0 million on a revolving basis and can be used to make acquisitions, for working capital and other general corporate purposes. &nbsp;Under certain conditions, this Credit Agreement may be increased up to an additional $50 million. &nbsp;It will mature on June 21, 2010.</P>
<P style="margin:0pt"><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt">In December 2004, Bio-Rad sold $200.0 million principal amount of Senior Subordinated Notes due 2014 (6.125% Notes). &nbsp;The notes pay a fixed rate of interest of 6.125% per year. &nbsp;Upon any sale of our common stock, we have the right to repurchase up to 35% of the 6.125% Notes any time prior to December 15, 2007 at a specified redemption price plus accrued and unpaid interest and certain other charges. &nbsp;Furthermore, we have the option to redeem any or all of the 6.125% Notes at various declining redemption prices or at 100% of the principal amount plus the &#147;applicable premium&#148; (as defined by the indenture) along with accrued and unpaid interest and certain other charges depending on the date redeemed. &nbsp;Bio-Rad&#146;s obligations under the 6.125% Notes are not secured, rank equal to other senior subordinated notes and rank junior to all Bio-Rad&#146;s existing and future senior debt.</P>
<P style="margin:0pt"><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt">In August 2003, Bio-Rad sold $225.0 million principal amount of Senior Subordinated Notes due 2013 (7.5% Notes). &nbsp;The notes pay a fixed rate of interest of 7.5% per year. &nbsp;Upon any sale of our common stock, we have the right to repurchase up to 35% of the 7.5% Notes any time prior to August 15, 2006 at a specified redemption price plus accrued and unpaid interest and certain other charges. &nbsp;Furthermore, we have the option to redeem any or all of the 7.5% Notes at various declining redemption prices or at 100% of the principal amount plus the &#147;applicable premium&#148; (as defined by the indenture) along with accrued and unpaid interest and certain other charges depending on the date redeemed. Bio-Rad&#146;s obligations under the 7.5% Notes are not secured, rank equal to other senior subordinated notes and rank junior to all Bio-Rad&#146;s existing and future senior debt.</P>
<P style="margin:0pt"><BR></P>
<TABLE style="font-size:10pt" cellspacing=0><TR><TD width=27></TD><TD width=225></TD></TR>
<TR><TD valign=top width=36><P style="line-height:13pt; margin:0pt; font-size:11pt" align=justify>10.</P>
</TD><TD valign=top width=300><P style="line-height:13pt; margin:0pt; font-size:11pt">EARNINGS PER SHARE</P>
</TD></TR>
</TABLE>
<P style="margin:0pt"><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt">Basic earnings per share is computed by dividing net income (loss) by the weighted average number of common shares outstanding for that period. &nbsp;Diluted earnings per share takes into account the effect of dilutive instruments, such as stock options, and uses the average share price for the period in determining the number of common stock equivalents that are to be added to the weighted average number of shares outstanding. &nbsp;Common stock equivalents are excluded from the diluted earnings per share calculation if the effect would be anti-dilutive.</P>
<P style="margin:0pt"><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt">Weighted average shares used for diluted earnings per share include the dilutive effect of outstanding options to purchase 552,000 and 646,000 shares of stock for the three months ended March 31, 2006 and 2005, respectively. &nbsp;Options to purchase 270,000 and 477,000 shares of common stock were outstanding during the three month periods ended March 31, 2006 and March 31, 2005, but were excluded from the computation of diluted earnings per share because the exercise price of the options was greater than the average market price of the common shares.</P>
<P style="line-height:9pt; margin:0pt"><BR>
<BR></P>
<P style="line-height:11pt; margin:0pt; font-size:9pt" align=center>8</P>
<P style="margin:0pt"><BR></P>
<P style="line-height:9pt; margin:0pt; page-break-before:always"><BR></P>
<TABLE style="font-size:10pt" cellspacing=0><TR><TD width=27></TD><TD width=236.35></TD></TR>
<TR><TD valign=top width=36><P style="line-height:13pt; margin:0pt; font-size:11pt" align=justify>11.</P>
</TD><TD valign=top width=315.133><P style="line-height:13pt; margin:0pt; font-size:11pt">STOCK OPTIONS AND PURCHASE PLANS</P>
</TD></TR>
</TABLE>
<P style="margin:0pt"><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt"><I><U>Descriptions of Share-Based Compensation Plans</U></I></P>
<P style="margin:0pt"><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt"><I>Stock Option Plans</I></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt">We maintain incentive and non-qualified stock option plans for officers and certain other employees. &nbsp;The 2003 Stock Option Plan of Bio-Rad Laboratories, Inc. (the Plan) authorizes the grant to employees of incentive stock options and non-qualified stock options. &nbsp;A total of 1,675,000 shares have been reserved for issuance and may be of either Class A or Class B Common Stock. &nbsp;At March 31, 2006, 1,103,538 shares remain available to be granted.</P>
<P style="margin:0pt"><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt">Under the Amended 1994 Stock Option Plan, Bio-Rad may grant options to its employees for up to 3,550,000 shares of common stock provided that no option shall be granted after March 1, 2004.</P>
<P style="margin:0pt"><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt">Under the plans, Class A and Class B options are granted at prices not less than fair market value on the date of grant. &nbsp;Generally, options granted have a term of 10 years and vest in increments of 20% per year over a five-year period on the yearly anniversary date of the grant. &nbsp;For options granted before January 1, 2001, options vest in increments of 25% over a four-year period on the yearly anniversary date of the grant.</P>
<P style="margin:0pt"><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt"><I>ESPP Plan</I></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt">Bio-Rad has an employee stock purchase plan that provides that eligible employees may contribute up to 10% of their compensation up to $25,000 annually toward the quarterly purchase of our Class A common stock. &nbsp;The employees purchase price is 85% of the lesser of the fair market value of the stock on the first business day or the last business day of each calendar quarter. &nbsp;Bio-Rad has authorized the sale of 2,390,000 shares of common stock under the Plan.</P>
<P style="margin:0pt"><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt"><I><U>Impact of Adoption of SFAS 123(R</U></I><U>)</U></P>
<P style="margin:0pt"><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt">As a result of adopting SFAS 123(R) on January 1, 2006, our income before income taxes and net income for the three months ended March 31, 2006 are $1.1 million and $1.2 million lower, respectively, than if we had continued to account for share-based compensation under APB No. 25. &nbsp;Basic and diluted earnings per share for the three months ended March 31, 2006 would have been $1.23 and $1.20, respectively, if we had not adopted SFAS 123(R), compared to reported basic and diluted earnings per share of $1.19 and $1.16, respectively.</P>
<P style="margin:0pt"><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt">Included in our share-based compensation expense in the first quarter of 2006 is the cost related to prior year option grants that vest after January 1, 2006 and the cost related to our ESPP first quarter stock purchase. &nbsp;We did not grant any stock options in the first quarter of 2006.</P>
<P style="margin:0pt"><BR>
<BR></P>
<P style="line-height:11pt; margin:0pt; font-size:9pt" align=center>9</P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt; page-break-before:always"><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt">For options granted before January 1, 2006, we amortized the fair value on an accelerated basis. &nbsp;For options granted after January 1, 2006, we will amortize the fair value on a straight-line basis. &nbsp;All options are amortized over the requisite service periods of the awards, which are generally the vesting periods. &nbsp;Prior to the adoption of SFAS 123(R), we presented all benefits of tax deductions resulting from the exercise of share-based compensation as operating cash flows in the Statement of Cash Flows. &nbsp;SFAS 123(R) requires the benefits of tax deductions in excess of the compensation cost recognized for those options (excess tax benefits) to be classified as financing cash flows. &nbsp;First quarter 2006 results included $0.3 million of excess tax benefits classified as a financing cash inflow that would have been classified as an operating cash inflow had we not adopted SFAS 123(R).</P>
<P style="margin:0pt"><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt"><I><U>Share-Based Compensation Expense</U></I></P>
<P style="margin:0pt"><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt">The following table illustrates the effect on net income and earnings per share if we had applied the fair value recognition provisions of SFAS 123 in accounting for the compensation cost for our stock option and stock purchase plans in the first quarter 2005 (in millions, except per share data).</P>
<P style="margin:0pt"><BR></P>
<TABLE style="font-size:10pt" cellspacing=0><TR><TD width=267.2></TD><TD width=11.8></TD><TD width=54></TD></TR>
<TR><TD valign=top width=356.267>&nbsp;</TD><TD valign=top width=15.733>&nbsp;</TD><TD valign=top width=72><P style="margin:0pt; font-size:11pt" align=center>March 31,</P>
</TD></TR>
<TR><TD valign=top width=356.267>&nbsp;</TD><TD valign=top width=15.733>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=72><P style="margin:0pt; font-size:11pt" align=center>2005</P>
</TD></TR>
<TR><TD valign=top width=356.267>&nbsp;</TD><TD valign=top width=15.733>&nbsp;</TD><TD valign=top width=72>&nbsp;</TD></TR>
<TR><TD valign=top width=356.267><P style="margin:0pt; padding-right:14.4pt; font-size:11pt">Net income, as reported</P>
</TD><TD valign=top width=15.733>&nbsp;</TD><TD valign=top width=72><P style="margin:0pt; font-size:11pt" align=right>$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;33.5&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=356.267><P style="margin:0pt; padding-right:14.4pt; font-size:11pt">Deduct: Total stock based employee compensation</P>
</TD><TD valign=top width=15.733>&nbsp;</TD><TD valign=top width=72>&nbsp;</TD></TR>
<TR><TD valign=top width=356.267><P style="margin:0pt; padding-right:14.4pt; text-indent:7.2pt; font-size:11pt">expense determined under fair value methods for all</P>
</TD><TD valign=top width=15.733>&nbsp;</TD><TD valign=top width=72>&nbsp;</TD></TR>
<TR><TD valign=top width=356.267><P style="margin:0pt; padding-right:14.4pt; text-indent:7.2pt; font-size:11pt">awards net of related tax effects</P>
</TD><TD valign=top width=15.733>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=72><P style="margin:0pt; font-size:11pt" align=right>0.9&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=356.267><P style="margin:0pt; padding-right:14.4pt; font-size:11pt">Pro forma net income &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=top width=15.733>&nbsp;</TD><TD style="border-bottom:2pt double #000000" valign=top width=72><P style="margin:0pt; font-size:11pt" align=right>$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;32.6&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=356.267>&nbsp;</TD><TD valign=top width=15.733>&nbsp;</TD><TD valign=top width=72>&nbsp;</TD></TR>
<TR><TD valign=top width=356.267><P style="margin:0pt; padding-right:14.4pt; font-size:11pt">Earnings per share:</P>
</TD><TD valign=top width=15.733>&nbsp;</TD><TD valign=top width=72>&nbsp;</TD></TR>
<TR><TD valign=top width=356.267><P style="margin:0pt; padding-right:14.4pt; text-indent:7.2pt; font-size:11pt">Basic -- as reported </P>
</TD><TD valign=top width=15.733>&nbsp;</TD><TD style="border-bottom:2pt double #000000" valign=top width=72><P style="margin:0pt; font-size:11pt" align=right>$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.29&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=356.267><P style="margin:0pt; padding-right:14.4pt; text-indent:7.2pt; font-size:11pt">Basic -- pro forma </P>
</TD><TD valign=top width=15.733>&nbsp;</TD><TD style="border-bottom:2pt double #000000" valign=top width=72><P style="margin:0pt; font-size:11pt" align=right>$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.26&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=356.267>&nbsp;</TD><TD valign=top width=15.733>&nbsp;</TD><TD valign=top width=72>&nbsp;</TD></TR>
<TR><TD valign=top width=356.267><P style="margin:0pt; padding-right:14.4pt; text-indent:7.2pt; font-size:11pt">Diluted -- as reported</P>
</TD><TD valign=top width=15.733>&nbsp;</TD><TD style="border-bottom:2pt double #000000" valign=top width=72><P style="margin:0pt; font-size:11pt" align=right>$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.26&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=356.267><P style="margin:0pt; padding-right:14.4pt; text-indent:7.2pt; font-size:11pt">Diluted -- pro forma</P>
</TD><TD valign=top width=15.733>&nbsp;</TD><TD style="border-bottom:2pt double #000000" valign=top width=72><P style="margin:0pt; font-size:11pt" align=right>$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.23&nbsp;</P>
</TD></TR>
</TABLE>
<P style="margin:0pt"><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt"><I><U>Determining Fair Value</U></I></P>
<P style="margin:0pt"><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt">Valuation Assumptions for Stock Options</P>
<P style="line-height:13pt; margin:0pt; font-size:11pt">No stock options were granted during the first quarter of 2006. &nbsp;The fair value for stock options granted during the first quarter of 2005 was estimated at the grant date using a Black-Scholes option-pricing model, assuming no dividends and the following assumptions:</P>
<P style="margin:0pt"><BR></P>
<TABLE style="font-size:10pt" cellspacing=0 align=center><TR><TD width=126></TD><TD width=11.8></TD><TD width=116.45></TD></TR>
<TR><TD valign=top width=168>&nbsp;</TD><TD valign=top width=15.733>&nbsp;</TD><TD valign=top width=155.267><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>Three Months Ended</P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>March 31, 2005</P>
</TD></TR>
<TR><TD valign=top width=168><P style="line-height:13pt; margin:0pt; font-size:11pt">Risk-free interest rate</P>
</TD><TD valign=top width=15.733>&nbsp;</TD><TD style="border-top:0.5pt solid #000000" valign=top width=155.267><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>3.45%</P>
</TD></TR>
<TR><TD valign=top width=168><P style="line-height:13pt; margin:0pt; font-size:11pt">Expected life (in years)</P>
</TD><TD valign=top width=15.733>&nbsp;</TD><TD valign=top width=155.267><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>4.7</P>
</TD></TR>
<TR><TD valign=top width=168><P style="line-height:13pt; margin:0pt; font-size:11pt">Volatility</P>
</TD><TD valign=top width=15.733>&nbsp;</TD><TD valign=top width=155.267><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>37%</P>
</TD></TR>
</TABLE>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt"><BR>
<BR></P>
<P style="line-height:11pt; margin:0pt; font-size:9pt" align=center>10</P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt; page-break-before:always"><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt">The risk-free rate is based on the U.S. Treasury yield curve in effect at the time of the grant. &nbsp;The expected life was estimated using the historical exercise behavior of employees. &nbsp;Volatility was based on the historical volatilities of our common stock for a period equal to the stock option&#146;s expected life. &nbsp;The weighted average grant date fair value of options granted in 2005 was $20.76.</P>
<P style="margin:0pt"><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt">Valuation Assumptions for ESPP</P>
<P style="line-height:13pt; margin:0pt; font-size:11pt">The fair value of the employees&#146; purchase rights for the first quarter of 2006 was estimated using a Black-Scholes model, assuming no dividends and the following assumptions:</P>
<P style="margin:0pt"><BR></P>
<TABLE style="font-size:10pt" cellspacing=0 align=center><TR><TD width=126></TD><TD width=11.8></TD><TD width=114.2></TD></TR>
<TR><TD valign=top width=168>&nbsp;</TD><TD valign=top width=15.733>&nbsp;</TD><TD valign=top width=152.267><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>Three Months Ended March 31, 2006</P>
</TD></TR>
<TR><TD valign=top width=168><P style="line-height:13pt; margin:0pt; font-size:11pt">Risk-free interest rate</P>
</TD><TD valign=top width=15.733>&nbsp;</TD><TD style="border-top:0.5pt solid #000000" valign=top width=152.267><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>4.11%</P>
</TD></TR>
<TR><TD valign=top width=168><P style="line-height:13pt; margin:0pt; font-size:11pt">Expected life (in years)</P>
</TD><TD valign=top width=15.733>&nbsp;</TD><TD valign=top width=152.267><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>0.25</P>
</TD></TR>
<TR><TD valign=top width=168><P style="line-height:13pt; margin:0pt; font-size:11pt">Volatility</P>
</TD><TD valign=top width=15.733>&nbsp;</TD><TD valign=top width=152.267><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>36%</P>
</TD></TR>
</TABLE>
<P style="margin:0pt"><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt">The risk-free rate is based on the U.S. Treasury yield curve in effect at the time of the grant. &nbsp;Volatility was based on the historical volatility of our common stock for a period equal to the stock option&#146;s expected life. &nbsp;The weighted average fair value of purchase rights granted during the three months ended March 31, 2006 and 2005 were $14.66 and $12.52 respectively.</P>
<P style="margin:0pt"><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt"><I><U>Summary of Stock Option Activity</U></I></P>
<P style="margin:0pt"><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt">The following table summarizes our stock option activity during the first quarter 2006:</P>
<P style="margin:0pt"><BR></P>
<TABLE style="font-size:10pt" cellspacing=0><TR><TD width=144.9></TD><TD width=14.45></TD><TD width=58.85></TD><TD width=55.25></TD><TD width=59.95></TD><TD width=81.2></TD></TR>
<TR><TD valign=bottom width=212.467 colspan=2>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=340.333 colspan=4><P style="line-height:12.5pt; margin:0pt; font-size:10.5pt" align=center>Three Months Ended March 31, 2006</P>
</TD></TR>
<TR><TD valign=bottom width=193.2>&nbsp;</TD><TD valign=bottom width=19.267>&nbsp;</TD><TD valign=bottom width=78.467>&nbsp;</TD><TD valign=bottom width=73.667>&nbsp;</TD><TD valign=bottom width=79.933><P style="line-height:12.5pt; margin:0pt; font-size:10.5pt" align=center>Weighted</P>
</TD><TD valign=bottom width=108.267>&nbsp;</TD></TR>
<TR><TD valign=bottom width=193.2>&nbsp;</TD><TD valign=bottom width=19.267>&nbsp;</TD><TD valign=bottom width=78.467>&nbsp;</TD><TD valign=bottom width=73.667><P style="line-height:12.5pt; margin:0pt; font-size:10.5pt" align=center>Weighted</P>
</TD><TD valign=bottom width=79.933><P style="line-height:12.5pt; margin:0pt; font-size:10.5pt" align=center>Remaining</P>
</TD><TD valign=bottom width=108.267><P style="line-height:12.5pt; margin:0pt; font-size:10.5pt" align=center>Aggregate</P>
</TD></TR>
<TR><TD valign=bottom width=193.2>&nbsp;</TD><TD valign=bottom width=19.267>&nbsp;</TD><TD valign=bottom width=78.467>&nbsp;</TD><TD valign=bottom width=73.667><P style="line-height:12.5pt; margin:0pt; font-size:10.5pt" align=center>Average</P>
</TD><TD valign=bottom width=79.933><P style="line-height:12.5pt; margin:0pt; font-size:10.5pt" align=center>Average</P>
</TD><TD valign=bottom width=108.267><P style="line-height:12.5pt; margin:0pt; font-size:10.5pt" align=center>Intrinsic Value</P>
</TD></TR>
<TR><TD valign=bottom width=193.2>&nbsp;</TD><TD valign=bottom width=19.267>&nbsp;</TD><TD valign=bottom width=78.467>&nbsp;</TD><TD valign=bottom width=73.667><P style="line-height:12.5pt; margin:0pt; font-size:10.5pt" align=center>Exercise</P>
</TD><TD valign=bottom width=79.933><P style="line-height:12.5pt; margin:0pt; font-size:10.5pt" align=center>Contractual</P>
</TD><TD valign=bottom width=108.267><P style="line-height:12.5pt; margin:0pt; font-size:10.5pt" align=center>as of</P>
</TD></TR>
<TR><TD valign=bottom width=193.2>&nbsp;</TD><TD valign=bottom width=19.267>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=78.467><P style="line-height:12.5pt; margin:0pt; font-size:10.5pt" align=center>Shares</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=73.667><P style="line-height:12.5pt; margin:0pt; font-size:10.5pt" align=center>Price</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=79.933><P style="line-height:12.5pt; margin:0pt; font-size:10.5pt" align=center>Term</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=108.267><P style="line-height:12.5pt; margin:0pt; font-size:10.5pt" align=center>March 31, 2006</P>
</TD></TR>
<TR><TD valign=bottom width=193.2><P style="line-height:12.5pt; margin:0pt; font-size:10.5pt">Outstanding, beginning of year</P>
</TD><TD valign=bottom width=19.267>&nbsp;</TD><TD valign=bottom width=78.467><P style="line-height:12.5pt; margin:0pt; font-size:10.5pt" align=right>1,589,206&nbsp;</P>
</TD><TD valign=bottom width=73.667><P style="line-height:12.5pt; margin:0pt; font-size:10.5pt" align=right>$ &nbsp;34.43&nbsp;</P>
</TD><TD valign=bottom width=79.933>&nbsp;</TD><TD valign=bottom width=108.267>&nbsp;</TD></TR>
<TR><TD valign=bottom width=193.2><P style="line-height:12.5pt; margin:0pt; font-size:10.5pt">Granted</P>
</TD><TD valign=bottom width=19.267>&nbsp;</TD><TD valign=bottom width=78.467><P style="line-height:12.5pt; margin:0pt; font-size:10.5pt" align=right>--&nbsp;</P>
</TD><TD valign=bottom width=73.667><P style="line-height:12.5pt; margin:0pt; font-size:10.5pt" align=right>--&nbsp;</P>
</TD><TD valign=bottom width=79.933>&nbsp;</TD><TD valign=bottom width=108.267>&nbsp;</TD></TR>
<TR><TD valign=bottom width=193.2><P style="line-height:12.5pt; margin:0pt; font-size:10.5pt">Exercised</P>
</TD><TD valign=bottom width=19.267>&nbsp;</TD><TD valign=bottom width=78.467><P style="line-height:12.5pt; margin:0pt; font-size:10.5pt" align=right>(57,605)</P>
</TD><TD valign=bottom width=73.667><P style="line-height:12.5pt; margin:0pt; font-size:10.5pt" align=right>$ &nbsp;24.44&nbsp;</P>
</TD><TD valign=bottom width=79.933>&nbsp;</TD><TD valign=bottom width=108.267>&nbsp;</TD></TR>
<TR><TD valign=bottom width=193.2><P style="line-height:12.5pt; margin:0pt; font-size:10.5pt">Forfeited/Expired</P>
</TD><TD valign=bottom width=19.267>&nbsp;</TD><TD valign=bottom width=78.467><P style="line-height:12.5pt; margin:0pt; font-size:10.5pt" align=right>(16,464)</P>
</TD><TD valign=bottom width=73.667><P style="line-height:12.5pt; margin:0pt; font-size:10.5pt" align=right>$ &nbsp;46.47&nbsp;</P>
</TD><TD valign=bottom width=79.933>&nbsp;</TD><TD valign=bottom width=108.267>&nbsp;</TD></TR>
<TR><TD valign=bottom width=193.2><P style="line-height:12.5pt; margin:0pt; font-size:10.5pt">Outstanding, end of period</P>
</TD><TD valign=bottom width=19.267>&nbsp;</TD><TD valign=bottom width=78.467><P style="line-height:12.5pt; margin:0pt; font-size:10.5pt" align=right>1,515,137&nbsp;</P>
</TD><TD valign=bottom width=73.667><P style="line-height:12.5pt; margin:0pt; font-size:10.5pt" align=right>$ &nbsp;34.67&nbsp;</P>
</TD><TD valign=bottom width=79.933><P style="line-height:12.5pt; margin:0pt; font-size:10.5pt" align=right>6.04&nbsp;</P>
</TD><TD valign=bottom width=108.267><P style="line-height:12.5pt; margin:0pt; font-size:10.5pt" align=right>$ &nbsp;&nbsp;&nbsp;41,933,064&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=193.2>&nbsp;</TD><TD valign=bottom width=19.267>&nbsp;</TD><TD valign=bottom width=78.467>&nbsp;</TD><TD valign=bottom width=73.667>&nbsp;</TD><TD valign=bottom width=79.933>&nbsp;</TD><TD valign=bottom width=108.267>&nbsp;</TD></TR>
<TR><TD valign=bottom width=193.2><P style="line-height:12.5pt; margin:0pt; font-size:10.5pt">Exercisable, end of period</P>
</TD><TD valign=bottom width=19.267>&nbsp;</TD><TD valign=bottom width=78.467><P style="line-height:12.5pt; margin:0pt; font-size:10.5pt" align=right>935,828&nbsp;</P>
</TD><TD valign=bottom width=73.667><P style="line-height:12.5pt; margin:0pt; font-size:10.5pt" align=right>$ &nbsp;25.77&nbsp;</P>
</TD><TD valign=bottom width=79.933><P style="line-height:12.5pt; margin:0pt; font-size:10.5pt" align=right>5.03&nbsp;</P>
</TD><TD valign=bottom width=108.267><P style="line-height:12.5pt; margin:0pt; font-size:10.5pt" align=right>$ &nbsp;&nbsp;&nbsp;34,236,200&nbsp;</P>
</TD></TR>
</TABLE>
<P style="margin:0pt"><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt">Intrinsic value for stock options is defined as the difference between the current market value and the grant price. &nbsp;The total intrinsic value of stock options exercised during the three months ended March 31, 2006 and 2005 was approximately $2 million and $5 million, respectively.</P>
<P style="margin:0pt"><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt">Cash received from stock options exercised during the three months ended March 31, 2006 and 2005 was $1.4 million and $1.7 million, respectively. &nbsp;The actual tax benefit realized for the tax deductions from stock options exercised totaled $0.4 million and $0.3 million for the three months ended March 31, 2006 and 2005, respectively.</P>
<P style="margin:0pt"><BR>
<BR></P>
<P style="line-height:11pt; margin:0pt; font-size:9pt" align=center>11</P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt; page-break-before:always"><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt">We sold 19,673 shares for $0.9 million and 22,062 shares for $1.0 million under our employee stock purchase plan for the three months ended March 31, 2006 and 2005, respectively. &nbsp;At March 31, 2006, 587,765 shares remain authorized under the Plan.</P>
<P style="margin:0pt"><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt">We currently issue new shares to satisfy stock option exercises and ESPP stock purchases.</P>
<P style="margin:0pt"><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt">As of March 31, 2006, there was approximately $5 million of total unrecognized compensation cost related to nonvested share-based compensation awards granted under our stock option plans. &nbsp;That cost is expected to be recognized over a weighted-average period of approximately 2 years.</P>
<P style="margin:0pt"><BR></P>
<TABLE style="font-size:10pt" cellspacing=0><TR><TD width=27></TD><TD width=236.35></TD></TR>
<TR><TD valign=top width=36><P style="line-height:13pt; margin:0pt; font-size:11pt" align=justify>12.</P>
</TD><TD valign=top width=315.133><P style="line-height:13pt; margin:0pt; font-size:11pt">FOREIGN EXCHANGE GAINS AND LOSSES</P>
</TD></TR>
</TABLE>
<P style="margin:0pt"><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt">Exchange gains and losses consist of foreign currency transaction gains and losses on intercompany net receivables and payables and the change in value of our forward foreign exchange contracts used to manage our foreign exchange risk.</P>
<P style="margin:0pt"><BR></P>
<TABLE style="font-size:10pt" cellspacing=0><TR><TD width=27></TD><TD width=236.35></TD></TR>
<TR><TD valign=top width=36><P style="line-height:13pt; margin:0pt; font-size:11pt" align=justify>13.</P>
</TD><TD valign=top width=315.133><P style="line-height:13pt; margin:0pt; font-size:11pt">OTHER INCOME AND EXPENSE</P>
</TD></TR>
</TABLE>
<P style="margin:0pt"><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt">Other (income) expense, net includes the following components (in millions): </P>
<P style="margin:0pt"><BR></P>
<TABLE style="font-size:10pt" cellspacing=0><TR><TD width=189></TD><TD width=11.8></TD><TD width=42.2></TD><TD width=14.4></TD><TD width=45></TD></TR>
<TR><TD valign=top width=252>&nbsp;</TD><TD width=15.733>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" width=135.467 colspan=3><P style="margin:0pt; font-size:11pt" align=center>Three Months </P>
<P style="margin:0pt; font-size:11pt" align=center>Ended March 31,</P>
</TD></TR>
<TR><TD valign=top width=252>&nbsp;</TD><TD width=15.733>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" width=56.267><P style="margin:0pt; font-size:11pt" align=center>2006</P>
</TD><TD width=19.2>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" width=60><P style="margin:0pt; font-size:11pt" align=center>2005</P>
</TD></TR>
<TR><TD valign=top width=252>&nbsp;</TD><TD valign=top width=15.733>&nbsp;</TD><TD valign=top width=56.267>&nbsp;</TD><TD style="border-top:0.5pt solid #000000" valign=top width=19.2>&nbsp;</TD><TD valign=top width=60>&nbsp;</TD></TR>
<TR><TD valign=top width=252><P style="margin:0pt; font-size:11pt">Interest and investment income</P>
</TD><TD valign=top width=15.733>&nbsp;</TD><TD valign=top width=56.267><P style="margin:0pt; font-size:11pt" align=right>$ &nbsp;&nbsp;&nbsp;(4.4)</P>
</TD><TD valign=top width=19.2>&nbsp;</TD><TD valign=top width=60><P style="margin:0pt; font-size:11pt" align=right>$ &nbsp;&nbsp;&nbsp;&nbsp;(4.0)</P>
</TD></TR>
<TR><TD valign=top width=252><P style="margin:0pt; font-size:11pt">Other</P>
</TD><TD valign=top width=15.733>&nbsp;</TD><TD valign=top width=56.267><P style="margin:0pt; padding-bottom:3pt; font-size:11pt; border-bottom:0.5pt solid #000000" align=right>(0.1)</P>
</TD><TD valign=top width=19.2>&nbsp;</TD><TD valign=top width=60><P style="margin:0pt; padding-bottom:3pt; font-size:11pt; border-bottom:0.5pt solid #000000" align=right>(1.8)</P>
</TD></TR>
<TR><TD valign=top width=252><P style="margin:0pt; font-size:11pt">Total other (income) expense, net</P>
</TD><TD valign=top width=15.733>&nbsp;</TD><TD valign=top width=56.267><P style="margin:0pt; padding-bottom:3pt; font-size:11pt; border-bottom:2pt double #000000" align=right>$ &nbsp;&nbsp;&nbsp;(4.5)</P>
</TD><TD valign=top width=19.2>&nbsp;</TD><TD valign=top width=60><P style="margin:0pt; padding-bottom:3pt; font-size:11pt; border-bottom:2pt double #000000" align=right>$ &nbsp;&nbsp;&nbsp;&nbsp;(5.8)</P>
</TD></TR>
</TABLE>
<P style="margin:0pt"><BR></P>
<TABLE style="font-size:10pt" cellspacing=0><TR><TD width=27></TD><TD width=236.35></TD></TR>
<TR><TD valign=top width=36><P style="line-height:13pt; margin:0pt; font-size:11pt" align=justify>14.</P>
</TD><TD valign=top width=315.133><P style="line-height:13pt; margin:0pt; font-size:11pt">COMPREHENSIVE INCOME</P>
</TD></TR>
</TABLE>
<P style="margin:0pt"><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt">The components of Bio-Rad&#146;s total comprehensive income were (in millions):</P>
<P style="margin:0pt"><BR></P>
<TABLE style="font-size:10pt" cellspacing=0><TR><TD width=238.3></TD><TD width=11.8></TD><TD width=42.2></TD><TD width=11.8></TD><TD width=51.2></TD></TR>
<TR><TD valign=top width=317.733>&nbsp;</TD><TD width=15.733>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" width=140.267 colspan=3><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>March 31,</P>
</TD></TR>
<TR><TD valign=top width=317.733>&nbsp;</TD><TD width=15.733>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" width=56.267><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>2006&nbsp;</P>
</TD><TD style="border-bottom:0.5pt solid #000000" width=15.733>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" width=68.267><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>2005</P>
</TD></TR>
<TR><TD valign=top width=317.733><P style="line-height:13pt; margin:0pt; font-size:11pt">Net income, as reported</P>
</TD><TD valign=top width=15.733>&nbsp;</TD><TD valign=top width=56.267><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>$ &nbsp;&nbsp;&nbsp;31.2&nbsp;</P>
</TD><TD valign=top width=15.733>&nbsp;</TD><TD valign=top width=68.267><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>$ &nbsp;&nbsp;&nbsp;&nbsp;33.5&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=317.733><P style="line-height:13pt; margin:0pt; font-size:11pt">Currency translation adjustments</P>
</TD><TD valign=top width=15.733>&nbsp;</TD><TD valign=top width=56.267><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>5.0&nbsp;</P>
</TD><TD valign=top width=15.733>&nbsp;</TD><TD valign=top width=68.267><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>(9.2)</P>
</TD></TR>
<TR><TD valign=top width=317.733><P style="line-height:13pt; margin:0pt; font-size:11pt">Net unrealized holding gain net of tax effect</P>
</TD><TD valign=top width=15.733>&nbsp;</TD><TD valign=top width=56.267>&nbsp;</TD><TD valign=top width=15.733>&nbsp;</TD><TD valign=top width=68.267>&nbsp;</TD></TR>
<TR><TD valign=top width=317.733><P style="line-height:13pt; margin:0pt; font-size:11pt">&nbsp;&nbsp;of $2.7 million in 2006 and $1.0 million in 2005</P>
</TD><TD valign=top width=15.733>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=56.267><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>4.6&nbsp;</P>
</TD><TD valign=top width=15.733>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=68.267><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>--&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=317.733><P style="line-height:13pt; margin:0pt; font-size:11pt">Total comprehensive income</P>
</TD><TD valign=top width=15.733>&nbsp;</TD><TD style="border-bottom:2pt double #000000" valign=top width=56.267><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>$ &nbsp;&nbsp;&nbsp;40.8&nbsp;</P>
</TD><TD valign=top width=15.733>&nbsp;</TD><TD style="border-bottom:2pt double #000000" valign=top width=68.267><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>$ &nbsp;&nbsp;&nbsp;&nbsp;24.3&nbsp;</P>
</TD></TR>
</TABLE>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt"><BR>
<BR></P>
<P style="line-height:11pt; margin:0pt; font-size:9pt" align=center>12</P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt; page-break-before:always"><BR></P>
<TABLE style="font-size:10pt" cellspacing=0><TR><TD width=27></TD><TD width=236.35></TD></TR>
<TR><TD valign=top width=36><P style="line-height:13pt; margin:0pt; font-size:11pt" align=justify>15.</P>
</TD><TD valign=top width=315.133><P style="line-height:13pt; margin:0pt; font-size:11pt">SEGMENT INFORMATION</P>
</TD></TR>
</TABLE>
<P style="margin:0pt"><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt">Information regarding industry segments for the three months ended March 31, 2006 and 2005 is as follows (in millions):</P>
<P style="margin:0pt"><BR></P>
<TABLE style="font-size:10pt" cellspacing=0><TR><TD width=108></TD><TD width=58.2></TD><TD width=68.7></TD><TD width=71.1></TD><TD width=66.3></TD><TD width=68.7></TD></TR>
<TR><TD valign=top width=144>&nbsp;</TD><TD valign=top width=77.6>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=91.6><P style="margin:0pt" align=center><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>Life Science</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=94.8><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>Clinical Diagnostics</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=88.4><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>Other Operations</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=91.6><P style="margin:0pt" align=center><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>Total</P>
</TD></TR>
<TR><TD valign=top width=144>&nbsp;</TD><TD valign=top width=77.6>&nbsp;</TD><TD valign=top width=91.6>&nbsp;</TD><TD valign=top width=94.8>&nbsp;</TD><TD valign=top width=88.4>&nbsp;</TD><TD valign=top width=91.6>&nbsp;</TD></TR>
<TR><TD valign=top width=144><P style="line-height:13pt; margin:0pt; font-size:11pt">Segment net sales</P>
</TD><TD valign=top width=77.6><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>2006</P>
</TD><TD valign=top width=91.6><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>$ &nbsp;&nbsp;144.8&nbsp;</P>
</TD><TD valign=top width=94.8><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>$ &nbsp;&nbsp;160.3&nbsp;</P>
</TD><TD valign=top width=88.4><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2&nbsp;</P>
</TD><TD valign=top width=91.6><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>$ &nbsp;&nbsp;&nbsp;308.3&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=144>&nbsp;</TD><TD valign=top width=77.6><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>2005</P>
</TD><TD valign=top width=91.6><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>$ &nbsp;&nbsp;144.1&nbsp;</P>
</TD><TD valign=top width=94.8><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>$ &nbsp;&nbsp;151.9&nbsp;</P>
</TD><TD valign=top width=88.4><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2&nbsp;</P>
</TD><TD valign=top width=91.6><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>$ &nbsp;&nbsp;&nbsp;299.2&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=144>&nbsp;</TD><TD valign=top width=77.6>&nbsp;</TD><TD valign=top width=91.6>&nbsp;</TD><TD valign=top width=94.8>&nbsp;</TD><TD valign=top width=88.4>&nbsp;</TD><TD valign=top width=91.6>&nbsp;</TD></TR>
<TR><TD valign=top width=144><P style="line-height:13pt; margin:0pt; font-size:11pt">Segment profit (loss)</P>
</TD><TD valign=top width=77.6><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>2006</P>
</TD><TD valign=top width=91.6><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>$ &nbsp;&nbsp;&nbsp;&nbsp;14.1&nbsp;</P>
</TD><TD valign=top width=94.8><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>$ &nbsp;&nbsp;&nbsp;&nbsp;25.9&nbsp;</P>
</TD><TD valign=top width=88.4><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;--&nbsp;</P>
</TD><TD valign=top width=91.6><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>$ &nbsp;&nbsp;&nbsp;&nbsp;40.0&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=144>&nbsp;</TD><TD valign=top width=77.6><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>2005</P>
</TD><TD valign=top width=91.6><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>$ &nbsp;&nbsp;&nbsp;&nbsp;15.5&nbsp;</P>
</TD><TD valign=top width=94.8><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>$ &nbsp;&nbsp;&nbsp;&nbsp;17.0&nbsp;</P>
</TD><TD valign=top width=88.4><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>$ &nbsp;&nbsp;&nbsp;(0.5)</P>
</TD><TD valign=top width=91.6><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>$ &nbsp;&nbsp;&nbsp;&nbsp;32.0&nbsp;</P>
</TD></TR>
</TABLE>
<P style="margin:0pt"><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt">Segment results are presented in the same manner as we present our operations internally to make operating decisions and assess performance. &nbsp;Net corporate operating income (expense) consists of receipts and expenditures that are not the primary responsibility of segment operating management. &nbsp;Interest expense is charged to segments based on the carrying amount of inventory and receivables employed by that segment. &nbsp;The following reconciles total segment profit to consolidated income from continuing operations before taxes (in millions):</P>
<P style="margin:0pt"><BR></P>
<TABLE style="font-size:10pt" cellspacing=0><TR><TD width=230.4></TD><TD width=11.8></TD><TD width=48.55></TD><TD width=14.4></TD><TD width=45.85></TD></TR>
<TR><TD valign=top width=307.2>&nbsp;</TD><TD valign=top width=15.733>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=145.067 colspan=3><P style="margin:0pt; font-size:11pt" align=center>Three Months Ended</P>
<P style="margin:0pt; font-size:11pt" align=center>March 31,</P>
</TD></TR>
<TR><TD valign=top width=307.2>&nbsp;</TD><TD valign=top width=15.733>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=64.733><P style="margin:0pt; font-size:11pt" align=center>2006</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=19.2>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=61.133><P style="margin:0pt; font-size:11pt" align=center>2005</P>
</TD></TR>
<TR><TD valign=top width=307.2>&nbsp;</TD><TD valign=top width=15.733>&nbsp;</TD><TD valign=top width=64.733>&nbsp;</TD><TD valign=top width=19.2>&nbsp;</TD><TD valign=top width=61.133>&nbsp;</TD></TR>
<TR><TD valign=top width=307.2><P style="margin:0pt; font-size:11pt">Total segment profit</P>
</TD><TD valign=top width=15.733>&nbsp;</TD><TD valign=top width=64.733><P style="margin:0pt; font-size:11pt" align=right>$ &nbsp;&nbsp;&nbsp;&nbsp;40.0&nbsp;</P>
</TD><TD valign=top width=19.2>&nbsp;</TD><TD valign=top width=61.133><P style="margin:0pt; font-size:11pt" align=right>$ &nbsp;&nbsp;&nbsp;&nbsp;32.0&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=307.2><P style="margin:0pt; font-size:11pt">Foreign exchange gains </P>
</TD><TD valign=top width=15.733>&nbsp;</TD><TD valign=top width=64.733><P style="margin:0pt; font-size:11pt" align=right>--&nbsp;</P>
</TD><TD valign=top width=19.2>&nbsp;</TD><TD valign=top width=61.133><P style="margin:0pt; font-size:11pt" align=right>0.3&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=307.2><P style="margin:0pt; font-size:11pt">Net corporate operating, interest and</P>
</TD><TD valign=top width=15.733>&nbsp;</TD><TD valign=top width=64.733>&nbsp;</TD><TD valign=top width=19.2>&nbsp;</TD><TD valign=top width=61.133>&nbsp;</TD></TR>
<TR><TD valign=top width=307.2><P style="margin:0pt; padding-right:-15.15pt; text-indent:14.4pt; font-size:11pt">other income and expense not</P>
</TD><TD valign=top width=15.733>&nbsp;</TD><TD valign=top width=64.733>&nbsp;</TD><TD valign=top width=19.2>&nbsp;</TD><TD valign=top width=61.133>&nbsp;</TD></TR>
<TR><TD valign=top width=307.2><P style="margin:0pt; text-indent:14.4pt; font-size:11pt">allocated to segments &nbsp;</P>
</TD><TD valign=top width=15.733>&nbsp;</TD><TD valign=top width=64.733><P style="margin:0pt; font-size:11pt" align=right>(0.6)</P>
</TD><TD valign=top width=19.2>&nbsp;</TD><TD valign=top width=61.133><P style="margin:0pt; font-size:11pt" align=right>--&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=307.2><P style="margin:0pt; font-size:11pt">Other income (expense), net </P>
</TD><TD valign=top width=15.733>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=64.733><P style="margin:0pt; font-size:11pt" align=right>4.5&nbsp;</P>
</TD><TD valign=top width=19.2>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=61.133><P style="margin:0pt; font-size:11pt" align=right>5.8&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=307.2><P style="line-height:13pt; margin:0pt; font-size:11pt">Consolidated income from continuing</P>
</TD><TD valign=top width=15.733>&nbsp;</TD><TD valign=top width=64.733>&nbsp;</TD><TD valign=top width=19.2>&nbsp;</TD><TD valign=top width=61.133>&nbsp;</TD></TR>
<TR><TD valign=top width=307.2><P style="line-height:13pt; margin:0pt; text-indent:14.4pt; font-size:11pt">operations before taxes</P>
</TD><TD valign=top width=15.733>&nbsp;</TD><TD style="border-bottom:2pt double #000000" width=64.733><P style="line-height:11pt; margin:0pt; font-size:11pt" align=right>$ &nbsp;&nbsp;&nbsp;&nbsp;43.9&nbsp;</P>
</TD><TD valign=top width=19.2>&nbsp;</TD><TD style="border-bottom:2pt double #000000" width=61.133><P style="line-height:11pt; margin:0pt; font-size:11pt" align=right>$ &nbsp;&nbsp;&nbsp;&nbsp;38.1&nbsp;</P>
</TD></TR>
</TABLE>
<P style="margin:0pt"><BR></P>
<TABLE style="font-size:10pt" cellspacing=0><TR><TD width=27></TD><TD width=236.35></TD></TR>
<TR><TD valign=top width=36><P style="line-height:13pt; margin:0pt; font-size:11pt" align=justify>16.</P>
</TD><TD valign=top width=315.133><P style="line-height:13pt; margin:0pt; font-size:11pt">LEGAL PROCEEDINGS</P>
</TD></TR>
</TABLE>
<P style="margin:0pt"><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt">On February 9, 2006, Bio-Rad entered into a settlement agreement with Applera Corporation (Applera) and Roche Molecular Systems (Roche), which resolves a long-standing patent infringement lawsuit in the U.S. District Court of Connecticut. &nbsp;Applera and Roche filed the lawsuit against MJ Research, Inc. and John and Michael Finney in June 1998. &nbsp;Bio-Rad acquired MJ Research through the acquisition of 100% of the stock of its parent company, MJ GeneWorks, Incorporated. &nbsp;The lawsuit alleged that MJ Research infringed certain patents relating to PCR and instruments for performing PCR and sought damages and injunctive relief. &nbsp;In connection with the settlement of this lawsuit, Bio-Rad&#146;s 1998 thermal cycler supplier license relating to Applera&#146;s core thermal cycler patents and Roche&#146;s PCR patents has been amended to include the MJ Research thermal cyclers that were subject to this litigation.</P>
<P style="margin:0pt"><BR>
<BR></P>
<P style="line-height:11pt; margin:0pt; font-size:9pt" align=center>13</P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt; page-break-before:always"><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt">Bio-Rad and MJ Research were also defendants in another action in the U.S. District Court for the District of Connecticut. &nbsp;Applera commenced the action against us on November 9, 2004. &nbsp;The complaint alleged that Bio-Rad was infringing a U.S. patent which is a counterpart to the revoked European real-time PCR patent described below. &nbsp;The complaint sought damages and injunctive relief. &nbsp;On February 9, 2006, Bio-Rad entered into a settlement agreement (with an effective date of April 1, 2005) with Applera, which resolves this lawsuit as well as any issues surrounding back royalties. &nbsp;In connection with the settlements, Bio-Rad entered into a royalty-bearing license agreement with Applera relating to Bio-Rad&#146;s real-time instrument business in the United States and a term limited license in the rest of the world.<FONT FACE="Arial"> </FONT></P>
<P style="margin:0pt"><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt">At the time of the MJ acquisition, Bio-Rad established a $50.0 million litigation accrual as part of the purchase accounting of the acquisition. &nbsp;The actual total net settlement amount with respect to all of the above-referenced settlement agreements, including amounts related to previously accrued back royalties, was approximately $62 million.</P>
<P style="margin:0pt"><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt">Applera also filed four actions in the Regional Court of D&#252;sseldorf, Germany during the period from August 2002 through September 2003 against MJ Research and others alleging infringement of four European patents relating to thermal cyclers. &nbsp;Bio-Rad is also a defendant in one of the actions. &nbsp;The suit seeks actual damages, costs and expenses and injunctive relief. &nbsp;Three of the actions had a trial before the D&#252;sseldorf court in April 2004. &nbsp;One of these actions has since been dismissed, and two of these actions have been resolved in the settlement with Applera described above. &nbsp;In May 2004, the D&#252;sseldorf court issued an adverse ruling against MJ Research and us, which included an injunction against us and MJ Research from selling any real-time PCR instruments and reagents in Germany. In December 2004, the European Patent Office revoked the patent and the injunctions against MJ Research and Bio-Rad were lifted, a
llowing MJ Research and us to resume sales of real-time PCR thermal cyclers and reagents. &nbsp;Applera appealed revocation of the patent, and the appeal hearing will be held in July 2006.</P>
<P style="margin:0pt"><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt">We are party to various claims, legal actions and complaints arising in the ordinary course of business. We do not believe that any ultimate liability resulting from any of these lawsuits will have a material adverse effect on our results of operations, financial position or liquidity. However, we cannot give any assurance regarding the ultimate outcome of these lawsuits and their resolution could be material to our operating results for any particular period, depending upon the level of income for the period. </P>
<P style="margin:0pt"><BR></P>
<TABLE style="font-size:10pt" cellspacing=0><TR><TD width=36.25></TD><TD width=333></TD></TR>
<TR><TD valign=top width=48.333><P style="line-height:13pt; margin:0pt; font-size:11pt" align=justify>Item 2.</P>
</TD><TD valign=top width=444><P style="line-height:13pt; margin:0pt; font-size:11pt">Management&#146;s Discussion and Analysis of Results of Operation and</P>
</TD></TR>
<TR><TD valign=top width=48.333>&nbsp;</TD><TD valign=top width=444><P style="line-height:13pt; margin:0pt; font-size:11pt">Financial Condition.</P>
</TD></TR>
</TABLE>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt">This discussion should be read in conjunction with the information contained in both our Consolidated Financial Statements for the year ended December 31, 2005 and this report for the quarter ended March&nbsp;31, 2006.</P>
<P style="margin:0pt"><BR>
<BR></P>
<P style="line-height:11pt; margin:0pt; font-size:9pt" align=center>14</P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt; page-break-before:always"><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt">Other than statements of historical fact, statements made in this report include forward looking statements, such as statements with respect to Bio-Rad&#146;s future financial performance, operating results, plans and objectives that involve risk and uncertainties. &nbsp;We have based these forward looking statements on our current expectations and projections about future events. &nbsp;However, actual results may differ materially from those currently anticipated depending on a variety of risk factors including among other things: our ability to successfully develop and market new products; our reliance on and access to necessary intellectual property; our ability to service our debt; competition in and government regulation of the industries in which we operate; and the monetary policies of various countries. &nbsp;We undertake no obligation to publicly update or revise any forward looking statements, whether as a result of new information, future eve
nts, or otherwise.</P>
<P style="margin:0pt"><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt">Overview</P>
<P style="line-height:13pt; margin:0pt; font-size:11pt">We are a multinational manufacturer and worldwide distributor of Life Science research and Clinical Diagnostics products. &nbsp;Our business is organized into two primary segments, Life Science and Clinical Diagnostics, with the mission to provide scientists with specialized tools needed for biological research and clinical diagnostics. &nbsp;We sell more than 8,000 products and services to a diverse client base comprised of scientific research, healthcare, industry, education and government customers worldwide. We manufacture and supply our customers with a range of reagents, apparatus and equipment to separate complex chemical and biological materials and to identify, analyze and purify components. &nbsp;Because our customers require replication of results from experiments and tests, we estimate that approximately 70% of our revenues are recurring. &nbsp;Approximately 36% of our first quarter 2006 consolidated net sales are from the United States and 
approximately 64% are international sales largely denominated in local currency with the majority of these sales in Euros, Yen and British Sterling. As a result, our consolidated sales expressed in dollars benefit when the US dollar weakens and suffer when the dollar strengthens in relation to other currencies. &nbsp;Currency fluctuations were detrimental to our consolidated sales expressed in US dollars in the current quarter ended March 31, 2006. &nbsp;We benefited in the prior year from foreign currency fluctuations.</P>
<P style="margin:0pt"><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt">On a currency neutral basis, the diagnostic market is growing around 4% comprised of specialty areas experiencing significant growth offset by flat to declining growth in the routine testing market. &nbsp;Pricing for routine diagnostic tests is impacted by declining government reimbursement schedules, particularly in the US, Japan, and Germany.</P>
<P style="margin:0pt"><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt">The overall average growth of the life science market is currently about 5% on a currency neutral basis. &nbsp;Some spending on government sponsored research has slowed or is being deferred especially in the US and Japan. &nbsp;Large capital instrumentation systems sales continue to lag behind the overall growth rate. &nbsp;Reagent sales are rising faster than the average growth. &nbsp;The market for BSE tests continues to be very dynamic as countries with established testing programs consolidate testing sites and new competitors enter the market, resulting in competitive pricing pressures and lower average selling prices per test. &nbsp;Growth in BSE will come only from new testing markets. &nbsp;Current BSE testing levels are largely dependant on government mandates to safeguard the respective country&#146;s beef supply.</P>
<P style="margin:0pt"><BR>
<BR></P>
<P style="line-height:11pt; margin:0pt; font-size:9pt" align=center>15</P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt; page-break-before:always"><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt">The following shows gross profit and expense items as a percentage of net sales:</P>
<P style="margin:0pt"><BR></P>
<TABLE style="font-size:10pt" cellspacing=0><TR><TD width=214.45></TD><TD width=50.3></TD><TD width=46.65></TD><TD width=72></TD></TR>
<TR><TD valign=top width=285.933>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=129.267 colspan=2><P style="margin:0pt" align=center>Three Months Ended </P>
<P style="margin:0pt" align=center>March 31,</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=96><P style="margin:0pt" align=center>Year Ended December 31,</P>
</TD></TR>
<TR><TD valign=top width=285.933>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=67.067><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>2006&nbsp;</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=62.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>2005</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=96><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>2005</P>
</TD></TR>
<TR><TD valign=top width=285.933><P style="line-height:13pt; margin-top:1.85pt; margin-bottom:0pt; font-size:11pt">Net sales</P>
</TD><TD valign=top width=67.067><P style="line-height:13pt; margin-top:1.85pt; margin-bottom:0pt; font-size:11pt" align=right>100.0%</P>
</TD><TD valign=top width=62.2><P style="line-height:13pt; margin-top:1.85pt; margin-bottom:0pt; font-size:11pt" align=right>100.0%</P>
</TD><TD valign=top width=96><P style="line-height:13pt; margin-top:1.85pt; margin-bottom:0pt; font-size:11pt" align=right>100.0%</P>
</TD></TR>
<TR><TD valign=top width=285.933><P style="line-height:13pt; margin:0pt; font-size:11pt">&nbsp;&nbsp;Cost of goods sold</P>
</TD><TD valign=top width=67.067><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right><U>&nbsp;&nbsp;43.1</U>&nbsp;</P>
</TD><TD valign=top width=62.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right><U>&nbsp;&nbsp;44.4</U>&nbsp;</P>
</TD><TD valign=top width=96><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right><U>&nbsp;&nbsp;45.3</U>&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=285.933><P style="line-height:13pt; margin:0pt; font-size:11pt">Gross profit</P>
</TD><TD valign=top width=67.067><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>56.9&nbsp;</P>
</TD><TD valign=top width=62.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>55.6&nbsp;</P>
</TD><TD valign=top width=96><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>54.7&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=285.933><P style="line-height:13pt; margin:0pt; font-size:11pt">Selling, general and administrative expense</P>
</TD><TD valign=top width=67.067><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>32.5&nbsp;</P>
</TD><TD valign=top width=62.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>33.3&nbsp;</P>
</TD><TD valign=top width=96><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>35.2&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=285.933><P style="line-height:13pt; margin:0pt; font-size:11pt">Product research and development expense</P>
</TD><TD valign=top width=67.067><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>9.1&nbsp;</P>
</TD><TD valign=top width=62.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>9.0&nbsp;</P>
</TD><TD valign=top width=96><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>9.7&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=285.933><P style="line-height:13pt; margin:0pt; font-size:11pt">Income from continuing operations</P>
</TD><TD valign=top width=67.067><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>10.1&nbsp;</P>
</TD><TD valign=top width=62.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>9.9&nbsp;</P>
</TD><TD valign=top width=96><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>6.6&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=285.933><P style="line-height:13pt; margin:0pt; font-size:11pt">Discontinued operations</P>
</TD><TD valign=top width=67.067><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>--&nbsp;</P>
</TD><TD valign=top width=62.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>1.3&nbsp;</P>
</TD><TD valign=top width=96><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>0.3&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=285.933>&nbsp;</TD><TD valign=top width=67.067>&nbsp;</TD><TD valign=top width=62.2>&nbsp;</TD><TD valign=top width=96>&nbsp;</TD></TR>
<TR><TD valign=top width=285.933><P style="line-height:13pt; margin:0pt; font-size:11pt">Net income</P>
</TD><TD valign=top width=67.067><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>10.1%</P>
</TD><TD valign=top width=62.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>11.2%</P>
</TD><TD valign=top width=96><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>6.9%</P>
</TD></TR>
</TABLE>
<P style="margin:0pt"><BR></P>
<P style="line-height:18.5pt; margin:0pt; font-size:11pt" align=justify>Critical Accounting Policies </P>
<P style="line-height:13pt; margin:0pt; padding-right:36pt; font-size:11pt">As previously disclosed in the our Annual Report on Form 10-K for the year ended December&nbsp;31,&nbsp;2005, we have identified accounting for income taxes, valuation of long-lived and intangible assets and goodwill, valuation of inventories, allowance for doubtful accounts, warranty reserves and litigation reserves as the accounting policies critical to the operations of Bio-Rad. &nbsp;For a full discussion of these policies, please refer to our Form 10-K for the period ended December&nbsp;31, 2005.</P>
<P style="margin:0pt"><BR></P>
<TABLE style="font-size:10pt" cellspacing=0><TR><TD width=478.8></TD></TR>
<TR><TD valign=top width=638.4><P style="line-height:13pt; margin:0pt; padding-right:36pt; font-size:11pt" align=center><U>Three Months Ended March 31, 2006 Compared to</U></P>
</TD></TR>
<TR><TD valign=top width=638.4><P style="line-height:13pt; margin:0pt; padding-right:36pt; font-size:11pt" align=center><U>Three Months Ended March 31, 2005</U></P>
</TD></TR>
</TABLE>
<P style="margin:0pt"><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt">Corporate Results &#150; Sales, Margins and Expenses</P>
<P style="margin:0pt"><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt">Net sales (sales) in the first quarter of 2006 rose 3.0% to $308.3 million from $299.2 million in the first quarter of 2005. &nbsp;The negative impact to sales from a strengthening US dollar represented $15.6 million. For Bio-Rad in total, on a currency neutral basis, first quarter 2006 sales grew 8.3% compared to the first quarter of 2005. &nbsp;The Clinical Diagnostics segment sales grew by 5.5% before adjustment to a currency neutral basis, while the Life Science segment sales grew 0.5%. &nbsp;On a currency neutral basis, Clinical Diagnostics segment sales growth was 10.9%, while Life Science segment sales grew 5.6%.</P>
<P style="margin:0pt"><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt">Sales growth in the Clinical Diagnostics segment was the result of adding a new large European customer and increased unit sales for our blood virus, autoimmune and diabetes products. &nbsp;Additionally, a recurring sale under a large supply agreement in Asia took place in the first quarter as compared to the second quarter in the prior year. &nbsp;Life Science segment growth was impacted positively by pent up demand related to thermal cycling products caused by the suspension of manufacturing related to the ABI injunction and increased process chromatography orders. &nbsp;Offsetting these positive impacts to sales were a decline in BSE due to lower average selling prices and lower overall BSE testing which is prescribed statutorily.</P>
<P style="margin:0pt"><BR>
<BR></P>
<P style="line-height:11pt; margin:0pt; font-size:9pt" align=center>16</P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt; page-break-before:always"><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt">Consolidated gross margins were 56.9% for the first quarter of 2006 compared to 55.6% for the first quarter of 2005 and 54.7% for all of 2005. &nbsp;Clinical Diagnostics segment gross margins increased by 3.0% when compared to the first quarter of 2005. &nbsp;A number of factors have caused the improvement to margins in the current quarter. &nbsp;The favorable impact of an increase in production lowered unit costs related to fixed manufacturing overhead for the quality control product line. &nbsp;Lower requirements for warranty and service costs related to recently introduced blood virus equipment was another factor. &nbsp;Improved operating results in emerging markets and increased overall volume in autoimmune, diabetes and blood virus testing also improved the Clinical Diagnostics segment margins. &nbsp;We have also seen an increase in raw material costs for some products which may offset some of these gains in the future. &nbsp;Some Clinical Diagnost
ics segment products, especially quality controls, are characterized by large and infrequent production cycles and long lead times. &nbsp;&nbsp;Life Science segment margins declined overall by approximately 0.7% compared to the first quarter of 2005, from lower sales and average selling prices for the BSE test. &nbsp;Life Science segment gross margins excluding the impact of the BSE product line increased by less than 1% over the prior period. &nbsp;A factor aiding this increase is lower intangible amortization due to the impairment of intangible assets recorded in the fourth quarter of 2005.</P>
<P style="margin:0pt"><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt">Selling, general and administrative expenses (SG&amp;A) represented 32.5% of sales for the first quarter 2006 compared to 33.3% of sales for the first quarter of 2005. &nbsp;SG&amp;A expense was positively impacted by currency fluctuations as a strengthening US dollar causes the translation of expense denominated in other currencies to be reduced. &nbsp;On a currency neutral basis, these expenses for both the Clinical Diagnostics and Life Science segments grew at a rate less than sales growth. &nbsp;Included in SG&amp;A in the first quarter of 2006 is the impact of expensing stock based compensation. &nbsp;Approximately 70% of the total cost of $1.1 million was recorded in SG&amp;A. &nbsp;The current quarter also reflects the decision by many local operations managers to delay some budgeted expenses to better evaluate general economic trends facing their specific local operations.</P>
<P style="margin:0pt"><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt">Product research and development expense increased 4.7% to $28.1 million in the first quarter 2006 compared to the first quarter of 2005.&nbsp;&nbsp;Since we predominantly carry out research and development in the United States, currency fluctuations do not have as material an impact. &nbsp;Areas of development for the Life Science segment are proteomics, process chromatography, and food safety. &nbsp;Diagnostic development efforts are focused on expanded tests for its BioPlex 2200<SUP>&#174;</SUP> System, and expanded software data management product offerings for its quality control product line, as well as enhancements to existing product offerings in diabetes monitoring and blood virus diagnostics.</P>
<P style="margin:0pt"><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt">Corporate Results &#150; Other Items</P>
<P style="margin:0pt"><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt">Interest expense is similar to the prior year quarter. &nbsp;Average indebtedness decreased slightly from $436 million in the first quarter of 2005 to $431 million at March 31, 2006. &nbsp;Exchange gains and losses consist of foreign currency transaction gains and losses on intercompany net receivables and payables and the change in value of our forward foreign exchange contracts used to manage our foreign exchange risk.</P>
<P style="margin:0pt"><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt">Other income and expense for the first quarter of 2006 consists principally of interest, dividends and realized gains and losses from cash and equivalents, short term investments and notes receivable. &nbsp;All short-term investments have been designated as available-for-sale and are marked to market, with unrealized gains and losses reported as a component of comprehensive income. </P>
<P style="margin:0pt"><BR>
<BR></P>
<P style="line-height:11pt; margin:0pt; font-size:9pt" align=center>17</P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt; page-break-before:always"><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt">Bio-Rad&#146;s effective tax rate was 29% and 22% for the first quarter of 2006 and 2005, respectively. &nbsp;The lower effective tax rate for the first quarter of 2005 was the result of several items unique to that period including a reduction of valuation allowances on certain foreign deferred tax assets, settlement of a lease abandonment dispute and settlement of a tax audit in Austria. &nbsp;The effective tax rates for the first quarter of 2006 and 2005 both reflect tax benefits for nontaxable dividend income and export sales. &nbsp;The 2006 effect of SFAS 123(R) is an increase to the rate of 1%.</P>
<P style="margin:0pt"><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt">Our effective tax rate may be impacted in the future, either favorably or unfavorably, by many factors including but not limited to statutory tax rates, changes in existing laws or regulations, tax audits and settlements, and generation of tax credits.</P>
<P style="margin:0pt"><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt">Financial Condition</P>
<P style="margin:0pt"><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt">Historically, our principal capital requirement was for working capital to fund our internal growth. &nbsp;Management assesses Bio-Rad&#146;s liquidity in terms of our ability to generate cash to fund our operations and make acquisitions. &nbsp;The relevant factors that effect liquidity are cash flows from operations, capital expenditures, acquisition opportunities, common stock repurchases, the adequacy of available bank lines of credit and the ability to raise long-term capital by borrowing in the debt markets with satisfactory terms and conditions<FONT FACE="Arial">.</FONT></P>
<P style="margin:0pt"><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt">As of March 31, 2006, we had available $265.6 million in cash and cash equivalents and $31.5 million under international lines of credit. &nbsp;We also had $129.2 million of short-term investments. &nbsp;Under the $150.0 million restated and amended Revolving Credit Facility we have $145.6 million available with $4.4 million reserved for standby letters of credit issued by our banks to guarantee our obligations to certain insurance companies. &nbsp;Management believes that this availability, together with cash flow from operations, will be adequate to meet our current objectives for operations, research and development, capital additions for plant, equipment and systems and potential acquisitions.</P>
<P style="margin:0pt"><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt">Cash Flows from Operations</P>
<P style="margin:0pt"><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt">Net cash used in operations was $42.1 million for the three months ended March 31, 2006 and net cash provided by operations was $24.9 million for the three months ended March&nbsp;31, 2005. &nbsp;The decline in net cash provided by operations was mainly the result of payments totaling $44.2 million relating to the settlement of the ABI lawsuit. &nbsp;This payment reduced an acquisition liability set up as part of the purchase of MJ in August 2004. &nbsp;We also had slower collections of accounts receivable, additions to inventory and larger payments for royalties. &nbsp;Slower receivable collections were the result of delayed billings in Northern Europe caused by the forced relocation of our facility in Hemel Hempstead, England, the site of an oil depot explosion in December 2005. &nbsp;Collections in Asia were effected by both sales late in the quarter and a disagreement with a customer over back orders caused by the ABI litigation and injunction. &nbs
p;Both of these items should adjust in the subsequent quarter. &nbsp;Inventory additions were generally in the Clinical Diagnostic segment for new product introductions, planned sales increases of our quality control products which are characterized by large batch sizes and long lead times, and the internalizing of some equipment manufacturing which had been previously outsourced. &nbsp;Royalty payments were larger than ordinary due to the accumulation of several quarters of royalty accruals while the settlement with ABI announced in February 2006 was negotiated. &nbsp;In subsequent quarters, royalty payments will be reduced and occur routinely.</P>
<P style="margin:0pt"><BR>
<BR></P>
<P style="line-height:11pt; margin:0pt; font-size:9pt" align=center>18</P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt; page-break-before:always"><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt">We regularly review the allowance for uncollectible receivables and believe net accounts receivable are fully realizable. &nbsp;We also routinely review inventory for the impact of obsolesence and changes in market prices caused by the introduction of new products, technologies and in government reimbursement policies.</P>
<P style="margin:0pt"><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt">Cash Flows for Investing Activities</P>
<P style="margin:0pt"><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt">Net capital expenditures totaled $11.3 million for the three months ended March 31, 2006 compared to $9.8 million for the same period of 2005. &nbsp;Capital expenditures represent the addition and replacement of production machinery and research equipment, ongoing manufacturing and facility additions for compliance, and leasehold improvements. All periods include reagent rental equipment placed with Clinical Diagnostics customers who then contract to purchase reagents for use and investment in business systems and data communication upgrades and enhancement. &nbsp;During the first quarter of 2006, we made tenant improvements and equipped our new European logistics center which is scheduled for move-in around June 2006.</P>
<P style="margin:0pt"><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt">We continue to review possible acquisitions to expand both our Life Science and Clinical Diagnostics segments. &nbsp;We routinely meet with the principals or brokers of the subject companies. &nbsp;We are evaluating and negotiating acquisitions on a preliminary basis, but it is not certain that any of these transactions will advance beyond the preliminary stages or be completed.</P>
<P style="margin:0pt"><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt">The Board of Directors has authorized the repurchase of up to $18.0 million of Bio-Rad's common stock over an indefinite period of time. &nbsp;Through March 31, 2006, Bio-Rad has cumulatively repurchased 1,179,272 shares of Class A Common Stock and 60,000 shares of Class B Common Stock for a total of $14.7 million. &nbsp;Our credit agreements restrict our ability to repurchase our stock. There were no share repurchases made in the first quarter of 2006 or all of 2005. &nbsp;The repurchase was designed to both satisfy our obligations under the employee stock purchase and stock option plans and to improve shareholder value.</P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt"><BR></P>
<TABLE style="font-size:10pt" cellspacing=0><TR><TD width=36.25></TD><TD width=333></TD></TR>
<TR><TD valign=top width=48.333><P style="line-height:13pt; margin:0pt; font-size:11pt" align=justify>Item 3.</P>
</TD><TD valign=top width=444><P style="line-height:13pt; margin:0pt; padding-right:-21.6pt; font-size:11pt">Quantitative and Qualitative Disclosures about Market Risk</P>
</TD></TR>
</TABLE>
<P style="margin:0pt"><BR></P>
<P style="line-height:13pt; margin:0pt; padding-right:-21.6pt; font-size:11pt">During the three months ended March 31, 2006, there have been no material changes from the disclosures about market risk provided in our Annual Report on Form 10-K for the year ended December 31, 2005.</P>
<P style="margin:0pt"><BR></P>
<TABLE style="font-size:10pt" cellspacing=0><TR><TD width=36.25></TD><TD width=333></TD></TR>
<TR><TD valign=top width=48.333><P style="line-height:13pt; margin:0pt; font-size:11pt" align=justify>Item 4.</P>
</TD><TD valign=top width=444><P style="line-height:13pt; margin:0pt; font-size:11pt">Controls and Procedures</P>
</TD></TR>
</TABLE>
<P style="margin:0pt"><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt">Bio-Rad maintains disclosure controls and procedures that are designed to ensure that information required to be disclosed in Bio-Rad&#146;s Exchange Act reports is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission's rules and forms and that such information is accumulated and communicated to Bio-Rad&#146;s management, including its Chief Executive Officer and Chief Financial Officer, as appropriate, to allow for timely decisions regarding required disclosure. &nbsp;In designing and evaluating the disclosure controls and procedures, management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives, and management is required to apply its judgment in evaluating the cost-benefit relationship of possible controls and procedures.</P>
<P style="margin:0pt"><BR>
<BR></P>
<P style="line-height:11pt; margin:0pt; font-size:9pt" align=center>19</P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt; page-break-before:always"><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt">As required by SEC Rule 13a-15(b), we carried out an evaluation, under the supervision and with the participation of our management, including the Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures as of the end of the quarter covered by this report. &nbsp;Based on the foregoing,<B> </B>our Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures were effective at the reasonable assurance level.</P>
<P style="margin:0pt"><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt">There has been no change in our internal controls over financial reporting during the most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, our internal controls over financial reporting.</P>
<P style="margin:0pt"><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt">PART II &#150; OTHER INFORMATION</P>
<P style="margin:0pt"><BR></P>
<P style="line-height:13pt; margin-top:0pt; margin-bottom:-13pt; font-size:11pt">Item 1.</P>
<P style="line-height:13pt; margin:0pt; text-indent:72pt; font-size:11pt">Legal Proceedings</P>
<P style="margin:0pt"><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt">See Note 16, &#147;Legal Proceedings&#148; in the Notes to Condensed Consolidated Financial Statements of Part 1, Item 1 of this Form 10-Q.</P>
<P style="margin:0pt"><BR>
<BR></P>
<P style="line-height:11pt; margin:0pt; font-size:9pt" align=center>20</P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt; page-break-before:always"><BR></P>
<P style="margin:0pt"><BR></P>
<TABLE style="font-size:10pt" cellspacing=0><TR><TD width=36.25></TD><TD width=333></TD></TR>
<TR><TD valign=top width=48.333><P style="line-height:13pt; margin:0pt; font-size:11pt" align=justify>Item 6.</P>
</TD><TD valign=top width=444><P style="line-height:13pt; margin:0pt; font-size:11pt">Exhibits</P>
</TD></TR>
</TABLE>
<P style="margin:0pt"><BR></P>
<TABLE style="font-size:10pt" cellspacing=0><TR><TD width=459></TD></TR>
<TR><TD valign=top width=612><P style="line-height:13pt; margin:0pt; font-size:11pt">(a) Exhibits</P>
</TD></TR>
</TABLE>
<P style="margin:0pt"><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt">The following documents are filed as part of this report<FONT FACE="Arial">:</FONT></P>
<P style="margin:0pt"><BR></P>
<TABLE style="font-size:10pt" cellspacing=0><TR><TD width=40.45></TD><TD width=40.4></TD><TD width=378.15></TD></TR>
<TR><TD style="border-bottom:0.5pt solid #000000" valign=top width=53.933><P style="line-height:13pt; margin:0pt; padding-right:-21.6pt; font-size:11pt">Exhibit</P>
<P style="line-height:13pt; margin:0pt; padding-right:-21.6pt; font-size:11pt">&nbsp;&nbsp;&nbsp;No</P>
</TD><TD valign=top width=53.867>&nbsp;</TD><TD valign=top width=504.2>&nbsp;</TD></TR>
<TR><TD width=53.933>&nbsp;</TD><TD width=53.867>&nbsp;</TD><TD width=504.2>&nbsp;</TD></TR>
<TR><TD width=53.933><P style="line-height:11pt; margin:0pt; font-size:11pt" align=center>10.13</P>
</TD><TD width=53.867>&nbsp;</TD><TD width=504.2><P style="line-height:11pt; margin:0pt; font-size:11pt">Stock Purchase Agreement dated as of August 16, 2004 by and between Bio-Rad &nbsp;</P>
</TD></TR>
<TR><TD width=53.933>&nbsp;</TD><TD width=53.867>&nbsp;</TD><TD width=504.2><P style="line-height:11pt; margin:0pt; font-size:11pt">Laboratories, Inc., MJ GeneWorks, Incorporated, Michael J. Finney and </P>
</TD></TR>
<TR><TD width=53.933>&nbsp;</TD><TD width=53.867>&nbsp;</TD><TD width=504.2><P style="line-height:11pt; margin:0pt; font-size:11pt">John D. Finney.*#</P>
</TD></TR>
<TR><TD width=53.933>&nbsp;</TD><TD width=53.867>&nbsp;</TD><TD width=504.2>&nbsp;</TD></TR>
<TR><TD width=53.933><P style="line-height:11pt; margin:0pt; font-size:11pt" align=center>10.14</P>
</TD><TD width=53.867>&nbsp;</TD><TD width=504.2><P style="line-height:11pt; margin:0pt; font-size:11pt">Connecticut Settlement Agreement dated as of February 9, 2006 by and between </P>
</TD></TR>
<TR><TD width=53.933>&nbsp;</TD><TD width=53.867>&nbsp;</TD><TD width=504.2><P style="line-height:11pt; margin:0pt; font-size:11pt">Bio-Rad Laboratories, Inc., MJ Research, Inc., Michael J. Finney, John D. Finney,</P>
</TD></TR>
<TR><TD width=53.933>&nbsp;</TD><TD width=53.867>&nbsp;</TD><TD width=504.2><P style="line-height:11pt; margin:0pt; font-size:11pt">MJ Bioworks, Inc., MJ GeneWorks, Incorporated, Applera Corporation, and</P>
</TD></TR>
<TR><TD width=53.933>&nbsp;</TD><TD width=53.867>&nbsp;</TD><TD width=504.2><P style="line-height:11pt; margin:0pt; font-size:11pt">Roche Molecular Systems, Inc.*&#134;</P>
</TD></TR>
<TR><TD width=53.933>&nbsp;</TD><TD width=53.867>&nbsp;</TD><TD width=504.2>&nbsp;</TD></TR>
<TR><TD width=53.933><P style="line-height:11pt; margin:0pt; font-size:11pt" align=center>10.15</P>
</TD><TD width=53.867>&nbsp;</TD><TD width=504.2><P style="line-height:11pt; margin:0pt; font-size:11pt">Real-Time Settlement Agreement dated as of February 9, 2006 by and between &nbsp;</P>
</TD></TR>
<TR><TD width=53.933>&nbsp;</TD><TD width=53.867>&nbsp;</TD><TD width=504.2><P style="line-height:11pt; margin:0pt; font-size:11pt">Bio-Rad Laboratories, Inc., MJ Research, Inc., and Applera Corporation, through </P>
</TD></TR>
<TR><TD width=53.933>&nbsp;</TD><TD width=53.867>&nbsp;</TD><TD width=504.2><P style="line-height:11pt; margin:0pt; font-size:11pt">its Applied Biosystems Group.*&#134;</P>
</TD></TR>
<TR><TD width=53.933>&nbsp;</TD><TD width=53.867>&nbsp;</TD><TD width=504.2>&nbsp;</TD></TR>
<TR><TD width=53.933><P style="line-height:11pt; margin:0pt; font-size:11pt" align=center>10.16</P>
</TD><TD width=53.867>&nbsp;</TD><TD width=504.2><P style="line-height:11pt; margin:0pt; font-size:11pt">Amended and Restated Thermal Cycler Supplier Agreement dated as February 9, </P>
</TD></TR>
<TR><TD width=53.933>&nbsp;</TD><TD width=53.867>&nbsp;</TD><TD width=504.2><P style="line-height:11pt; margin:0pt; font-size:11pt">2006 by and between Bio-Rad Laboratories, Inc., MJ Research, Inc. and</P>
</TD></TR>
<TR><TD width=53.933>&nbsp;</TD><TD width=53.867>&nbsp;</TD><TD width=504.2><P style="line-height:11pt; margin:0pt; font-size:11pt">Applera Corporation, through its Applied Biosystems Group.*&#134;</P>
</TD></TR>
<TR><TD width=53.933>&nbsp;</TD><TD width=53.867>&nbsp;</TD><TD width=504.2>&nbsp;</TD></TR>
<TR><TD width=53.933><P style="line-height:11pt; margin:0pt; font-size:11pt" align=center>10.17</P>
</TD><TD width=53.867>&nbsp;</TD><TD width=504.2><P style="line-height:11pt; margin:0pt; font-size:11pt">Real-Time Instrument Patent License Agreement dated as of February 9, 2006, by </P>
</TD></TR>
<TR><TD width=53.933>&nbsp;</TD><TD width=53.867>&nbsp;</TD><TD width=504.2><P style="line-height:11pt; margin:0pt; font-size:11pt">and between Bio-Rad Laboratories, Inc., MJ Research, Inc., and</P>
</TD></TR>
<TR><TD width=53.933>&nbsp;</TD><TD width=53.867>&nbsp;</TD><TD width=504.2><P style="line-height:11pt; margin:0pt; font-size:11pt">Applera Corporation, through its Applied Biosystems Group.*&#134;</P>
</TD></TR>
<TR><TD width=53.933>&nbsp;</TD><TD width=53.867>&nbsp;</TD><TD width=504.2>&nbsp;</TD></TR>
<TR><TD width=53.933><P style="line-height:11pt; margin:0pt; font-size:11pt" align=center>31.1</P>
</TD><TD width=53.867>&nbsp;</TD><TD width=504.2><P style="line-height:11pt; margin:0pt; font-size:11pt">Chief Executive Officer Section 302 Certification </P>
</TD></TR>
<TR><TD width=53.933>&nbsp;</TD><TD width=53.867>&nbsp;</TD><TD width=504.2>&nbsp;</TD></TR>
<TR><TD width=53.933><P style="line-height:11pt; margin:0pt; font-size:11pt" align=center>31.2</P>
</TD><TD width=53.867>&nbsp;</TD><TD width=504.2><P style="line-height:11pt; margin:0pt; font-size:11pt">Chief Financial Officer Section 302 Certification</P>
</TD></TR>
<TR><TD width=53.933>&nbsp;</TD><TD width=53.867>&nbsp;</TD><TD width=504.2>&nbsp;</TD></TR>
<TR><TD width=53.933><P style="line-height:11pt; margin:0pt; font-size:11pt" align=center>32.1</P>
</TD><TD width=53.867>&nbsp;</TD><TD width=504.2><P style="line-height:11pt; margin:0pt; font-size:11pt">Chief Executive Officer Certification pursuant to 18 U.S.C Section 1350,</P>
</TD></TR>
<TR><TD width=53.933>&nbsp;</TD><TD width=53.867>&nbsp;</TD><TD width=504.2><P style="line-height:11pt; margin:0pt; text-indent:7.2pt; font-size:11pt">as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.</P>
</TD></TR>
<TR><TD width=53.933>&nbsp;</TD><TD width=53.867>&nbsp;</TD><TD width=504.2>&nbsp;</TD></TR>
<TR><TD width=53.933><P style="line-height:11pt; margin:0pt; font-size:11pt" align=center>32.2</P>
</TD><TD width=53.867>&nbsp;</TD><TD width=504.2><P style="line-height:11pt; margin:0pt; font-size:11pt">Chief Financial Officer Certification pursuant to 18 U.S.C Section 1350,</P>
</TD></TR>
<TR><TD width=53.933>&nbsp;</TD><TD width=53.867>&nbsp;</TD><TD width=504.2><P style="line-height:11pt; margin:0pt; text-indent:7.2pt; font-size:11pt">as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.</P>
</TD></TR>
<TR><TD valign=top width=53.933>&nbsp;</TD><TD valign=top width=53.867>&nbsp;</TD><TD valign=top width=504.2>&nbsp;</TD></TR>
</TABLE>
<P style="margin:0pt"><BR></P>
<TABLE style="font-size:10pt" cellspacing=0><TR><TD width=17.85></TD><TD width=419.55></TD></TR>
<TR><TD valign=top width=23.8><P style="margin:0pt">*</P>
</TD><TD valign=top width=559.4><P style="margin:0pt">Pursuant to Regulation S-K Item 601(b)(2), the exhibits and schedules to this agreement have not </P>
</TD></TR>
<TR><TD valign=top width=23.8>&nbsp;</TD><TD valign=top width=559.4><P style="margin:0pt">been filed. &nbsp;We agree to furnish supplementally a copy of any omitted exhibits or </P>
</TD></TR>
<TR><TD valign=top width=23.8>&nbsp;</TD><TD valign=top width=559.4><P style="margin:0pt">schedules to the SEC upon request. </P>
</TD></TR>
<TR><TD valign=top width=23.8><P style="margin:0pt">#</P>
</TD><TD valign=top width=559.4><P style="margin:0pt">We previously filed a redacted version of this agreement pursuant to a confidential </P>
</TD></TR>
<TR><TD valign=top width=23.8>&nbsp;</TD><TD valign=top width=559.4><P style="margin:0pt">treatment request. &nbsp;The version filed as part of this report is not redacted.</P>
</TD></TR>
<TR><TD valign=top width=23.8><P style="margin:0pt">&#134;</P>
</TD><TD valign=top width=559.4><P style="margin:0pt">We have requested confidential treatment of certain portions of this agreement.</P>
</TD></TR>
</TABLE>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt"><BR>
<BR></P>
<P style="line-height:11pt; margin:0pt; font-size:9pt" align=center>21</P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt; page-break-before:always"><BR></P>
<P style="margin:0pt"><BR></P>
<TABLE style="font-size:10pt" cellspacing=0><TR><TD width=478.8></TD></TR>
<TR><TD valign=top width=638.4><P style="line-height:13pt; margin:0pt; padding-right:-7.2pt; font-size:11pt" align=center><U>SIGNATURES</U></P>
</TD></TR>
</TABLE>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt"><BR></P>
<TABLE style="font-size:10pt" cellspacing=0><TR><TD width=478.8></TD></TR>
<TR><TD valign=top width=638.4><P style="line-height:13pt; margin:0pt; padding-right:-7.2pt; font-size:11pt">Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly</P>
</TD></TR>
<TR><TD valign=top width=638.4><P style="line-height:13pt; margin:0pt; padding-right:-7.2pt; font-size:11pt">caused this report to be signed on its behalf by the undersigned thereto duly authorized</P>
</TD></TR>
</TABLE>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt" align=justify><BR></P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt"><BR></P>
<TABLE style="font-size:10pt" cellspacing=0><TR><TD width=11.8></TD><TD width=42.2></TD><TD width=126></TD><TD width=315></TD></TR>
<TR><TD valign=top width=660 colspan=4><P style="line-height:13pt; margin:0pt; padding-right:-7.2pt; font-size:11pt" align=center><U>BIO-RAD LABORATORIES, INC.</U></P>
<P style="line-height:13pt; margin:0pt; padding-right:-7.2pt; font-size:11pt" align=center>(Registrant)</P>
</TD></TR>
<TR><TD valign=top width=15.733>&nbsp;</TD><TD valign=top width=56.267>&nbsp;</TD><TD valign=top width=168>&nbsp;</TD><TD valign=top width=420>&nbsp;</TD></TR>
<TR><TD valign=top width=15.733>&nbsp;</TD><TD valign=top width=56.267>&nbsp;</TD><TD valign=top width=168>&nbsp;</TD><TD valign=top width=420>&nbsp;</TD></TR>
<TR><TD valign=top width=15.733>&nbsp;</TD><TD valign=top width=56.267><P style="line-height:13pt; margin:0pt; padding-right:-7.2pt; font-size:11pt">Date: &nbsp;</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=168><P style="line-height:13pt; margin:0pt; padding-right:-7.2pt; font-size:11pt">May 9, 2006</P>
</TD><TD valign=top width=420><P style="line-height:13pt; margin:0pt; font-size:11pt"><U>/s/ Norman Schwartz</U></P>
</TD></TR>
<TR><TD valign=top width=15.733>&nbsp;</TD><TD valign=top width=56.267>&nbsp;</TD><TD valign=top width=168>&nbsp;</TD><TD valign=top width=420><P style="line-height:13pt; margin:0pt; font-size:11pt">Norman Schwartz, President,</P>
</TD></TR>
<TR><TD valign=top width=15.733>&nbsp;</TD><TD valign=top width=56.267>&nbsp;</TD><TD valign=top width=168>&nbsp;</TD><TD valign=top width=420><P style="line-height:13pt; margin:0pt; font-size:11pt">Chief Executive Officer</P>
</TD></TR>
<TR><TD valign=top width=15.733>&nbsp;</TD><TD valign=top width=56.267>&nbsp;</TD><TD valign=top width=168>&nbsp;</TD><TD valign=top width=420>&nbsp;</TD></TR>
<TR><TD valign=top width=15.733>&nbsp;</TD><TD valign=top width=56.267><P style="line-height:13pt; margin:0pt; padding-right:-7.2pt; font-size:11pt">Date:</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=168><P style="line-height:13pt; margin:0pt; padding-right:-7.2pt; font-size:11pt">May 9, 2006</P>
</TD><TD valign=top width=420><P style="line-height:13pt; margin:0pt; padding-right:-7.2pt; font-size:11pt"><U>/s/ Christine A. Tsingos</U></P>
</TD></TR>
<TR><TD valign=top width=15.733>&nbsp;</TD><TD valign=top width=56.267>&nbsp;</TD><TD valign=top width=168>&nbsp;</TD><TD valign=top width=420><P style="line-height:13pt; margin:0pt; padding-right:-7.2pt; font-size:11pt">Christine A. Tsingos, Vice President,</P>
</TD></TR>
<TR><TD valign=top width=15.733>&nbsp;</TD><TD valign=top width=56.267>&nbsp;</TD><TD valign=top width=168>&nbsp;</TD><TD valign=top width=420><P style="line-height:13pt; margin:0pt; padding-right:-7.2pt; font-size:11pt">Chief Financial Officer</P>
</TD></TR>
</TABLE>
<P style="margin-top:0pt; margin-bottom:5.5pt"><BR></P>
<P style="margin-top:0pt; margin-bottom:5.5pt"><BR>
<BR></P>
<P style="line-height:11pt; margin:0pt; font-size:9pt" align=center>22</P>
<P style="margin:0pt"><BR></P>
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</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-31
<SEQUENCE>2
<FILENAME>exh311.htm
<TEXT>
<!doctype html public "-//IETF//DTD HTML//EN">
<HTML>
<HEAD>
<TITLE>Converted by EDGARwiz</TITLE>
<META NAME="author" CONTENT="Stephanie Trudrung">
<META NAME="date" CONTENT="02/24/2006">
</HEAD>
<BODY style="line-height:12pt; font-family:Times New Roman; font-size:10pt; color:#000000">
<P style="line-height:13pt; margin:0pt; text-indent:360pt; font-family:Arial; font-size:11pt" align=justify><FONT FACE="Arial" COLOR=#000000><B><U>Exhibit 31.1</U></B></FONT></P>
<P style="margin:0pt" align=right><BR></P>
<P style="margin:0pt" align=center><BR></P>
<P style="line-height:13pt; margin:0pt; font-family:Arial; font-size:11pt" align=center><B>Certification of Chief Executive Officer Required By</B></P>
<P style="line-height:13pt; margin:0pt; font-family:Arial; font-size:11pt" align=center><B>Exchange Act Rules 13a-14(a) and 15d-14(a)</B></P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:13pt; margin:0pt; font-family:Arial; font-size:11pt" align=justify>I, Norman Schwartz, certify that:</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:13pt; margin-top:0pt; margin-bottom:-13pt; padding-left:36pt; text-indent:-36pt; font-family:Arial; font-size:11pt">1.</P>
<P style="line-height:13pt; margin:0pt; padding-left:36pt; font-family:Arial; font-size:11pt">I have reviewed this quarterly report on Form 10-Q of Bio-Rad Laboratories, Inc.</P>
<P style="margin:0pt"><BR></P>
<P style="line-height:13pt; margin-top:0pt; margin-bottom:-13pt; padding-left:36pt; text-indent:-36pt; font-family:Arial; font-size:11pt">2.</P>
<P style="line-height:13pt; margin:0pt; padding-left:36pt; font-family:Arial; font-size:11pt">Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;</P>
<P style="margin:0pt"><BR></P>
<P style="line-height:13pt; margin-top:0pt; margin-bottom:-13pt; padding-left:36pt; text-indent:-36pt; font-family:Arial; font-size:11pt">3.</P>
<P style="line-height:13pt; margin:0pt; padding-left:36pt; font-family:Arial; font-size:11pt">Based on my knowledge, the financial statements, and other financial information included in this report fairly present, in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;</P>
<P style="margin:0pt"><BR></P>
<P style="line-height:13pt; margin-top:0pt; margin-bottom:-13pt; padding-left:36pt; text-indent:-36pt; font-family:Arial; font-size:11pt">4.</P>
<P style="line-height:13pt; margin:0pt; padding-left:36pt; font-family:Arial; font-size:11pt">The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13-a-15(f) and 15d-15(f))for the registrant and have:</P>
<P style="margin:0pt"><BR></P>
<P style="line-height:13pt; margin-top:0pt; margin-bottom:-13pt; padding-left:135pt; text-indent:-36pt; font-family:Arial; font-size:11pt">(a)</P>
<P style="line-height:13pt; margin-top:0pt; margin-bottom:5.5pt; padding-left:135pt; font-family:Arial; font-size:11pt">Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;</P>
<P style="line-height:13pt; margin-top:0pt; margin-bottom:-13pt; padding-left:135pt; text-indent:-36pt; font-family:Arial; font-size:11pt">(b)</P>
<P style="line-height:13pt; margin-top:0pt; margin-bottom:5.5pt; padding-left:135pt; font-family:Arial; font-size:11pt">Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;</P>
<P style="line-height:13pt; margin-top:0pt; margin-bottom:-13pt; padding-left:135pt; text-indent:-36pt; font-family:Arial; font-size:11pt">(c)</P>
<P style="line-height:13pt; margin:0pt; padding-left:135pt; font-family:Arial; font-size:11pt">Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and</P>
<P style="margin:0pt"><BR></P>
<P style="line-height:13pt; margin-top:0pt; margin-bottom:-13pt; padding-left:135pt; text-indent:-63pt; font-family:Arial; font-size:11pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)</P>
<P style="line-height:13pt; margin:0pt; padding-left:135pt; font-family:Arial; font-size:11pt">Disclosed in this report any change in the registrant&#146;s internal control over financial reporting that occurred during the registrant&#146;s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant&#146;s internal control over financial reporting; and</P>
<P style="margin:0pt"><BR>
<BR></P>
<P style="margin:0pt; page-break-before:always"><BR></P>
<P style="line-height:13pt; margin-top:0pt; margin-bottom:-13pt; padding-left:36pt; text-indent:-36pt; font-family:Arial; font-size:11pt">5.</P>
<P style="line-height:13pt; margin:0pt; padding-left:36pt; font-family:Arial; font-size:11pt">The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):</P>
<P style="margin:0pt"><BR></P>
<P style="line-height:13pt; margin-top:0pt; margin-bottom:-13pt; padding-left:108pt; text-indent:-36pt; font-family:Arial; font-size:11pt">(a)</P>
<P style="line-height:13pt; margin:0pt; padding-left:108pt; font-family:Arial; font-size:11pt">All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonable likely to adversely affect the registrant&#146;s ability to record, process, summarize and report financial information; and</P>
<P style="margin:0pt"><BR></P>
<P style="line-height:13pt; margin-top:0pt; margin-bottom:-13pt; padding-left:108pt; text-indent:-36pt; font-family:Arial; font-size:11pt">(b)</P>
<P style="line-height:13pt; margin:0pt; padding-left:108pt; font-family:Arial; font-size:11pt">Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.</P>
<P style="margin:0pt"><BR></P>
<TABLE style="font-size:10pt" cellspacing=0 align=center><TR><TD width=46.8></TD><TD width=91.8></TD><TD width=153></TD></TR>
<TR><TD valign=top width=62.4>&nbsp;</TD><TD valign=top width=122.4>&nbsp;</TD><TD valign=top width=204>&nbsp;</TD></TR>
<TR><TD valign=top width=62.4><P style="line-height:13pt; margin:0pt; font-family:Arial; font-size:11pt">Date:</P>
</TD><TD valign=top width=122.4><P style="line-height:13pt; margin:0pt; font-family:Arial; font-size:11pt"><U>May 9, 2006</U></P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=204><P style="line-height:13pt; margin:0pt; font-family:Arial; font-size:11pt">/s/ Norman D. Schwartz</P>
</TD></TR>
<TR><TD valign=top width=62.4>&nbsp;</TD><TD valign=top width=122.4>&nbsp;</TD><TD valign=top width=204><P style="line-height:13pt; margin:0pt; font-family:Arial; font-size:11pt">Norman Schwartz</P>
</TD></TR>
<TR><TD valign=top width=62.4>&nbsp;</TD><TD valign=top width=122.4>&nbsp;</TD><TD valign=top width=204><P style="line-height:13pt; margin:0pt; font-family:Arial; font-size:11pt">Chief Executive Officer</P>
</TD></TR>
<TR><TD valign=top width=62.4>&nbsp;</TD><TD valign=top width=122.4>&nbsp;</TD><TD valign=top width=204>&nbsp;</TD></TR>
</TABLE>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt"><BR>
<BR></P>
</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-31
<SEQUENCE>3
<FILENAME>exh312.htm
<TEXT>
<!doctype html public "-//IETF//DTD HTML//EN">
<HTML>
<HEAD>
<TITLE>Converted by EDGARwiz</TITLE>
<META NAME="author" CONTENT="Stephanie Trudrung">
<META NAME="date" CONTENT="02/24/2006">
</HEAD>
<BODY style="line-height:12pt; font-family:Times New Roman; font-size:10pt; color:#000000">
<P style="line-height:13pt; margin:0pt; text-indent:360pt; font-family:Arial; font-size:11pt" align=justify><FONT FACE="Arial" COLOR=#000000><B><U>Exhibit 31.2</U></B></FONT></P>
<P style="margin:0pt" align=right><BR></P>
<P style="margin:0pt" align=center><BR></P>
<P style="line-height:13pt; margin:0pt; font-family:Arial; font-size:11pt" align=center><B>Certification of Chief Financial Officer Required By</B></P>
<P style="line-height:13pt; margin:0pt; font-family:Arial; font-size:11pt" align=center><B>Exchange Act Rules 13a-14(a) and 15d-14(a)</B></P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:13pt; margin:0pt; font-family:Arial; font-size:11pt" align=justify>I, Christine A. Tsingos, certify that:</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:13pt; margin-top:0pt; margin-bottom:-13pt; padding-left:36pt; text-indent:-36pt; font-family:Arial; font-size:11pt">1.</P>
<P style="line-height:13pt; margin:0pt; padding-left:36pt; font-family:Arial; font-size:11pt">I have reviewed this quarterly report on Form 10-Q of Bio-Rad Laboratories, Inc.</P>
<P style="margin:0pt"><BR></P>
<P style="line-height:13pt; margin-top:0pt; margin-bottom:-13pt; padding-left:36pt; text-indent:-36pt; font-family:Arial; font-size:11pt">2.</P>
<P style="line-height:13pt; margin:0pt; padding-left:36pt; font-family:Arial; font-size:11pt">Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;</P>
<P style="margin:0pt"><BR></P>
<P style="line-height:13pt; margin-top:0pt; margin-bottom:-13pt; padding-left:36pt; text-indent:-36pt; font-family:Arial; font-size:11pt">3.</P>
<P style="line-height:13pt; margin:0pt; padding-left:36pt; font-family:Arial; font-size:11pt">Based on my knowledge, the financial statements, and other financial information included in this report fairly present, in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;</P>
<P style="margin:0pt"><BR></P>
<P style="line-height:13pt; margin-top:0pt; margin-bottom:-13pt; padding-left:36pt; text-indent:-36pt; font-family:Arial; font-size:11pt">4.</P>
<P style="line-height:13pt; margin:0pt; padding-left:36pt; font-family:Arial; font-size:11pt">The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13-a-15(f) and 15d-15(f))for the registrant and have:</P>
<P style="margin:0pt"><BR></P>
<P style="line-height:13pt; margin-top:0pt; margin-bottom:-13pt; padding-left:135pt; text-indent:-36pt; font-family:Arial; font-size:11pt">(a)</P>
<P style="line-height:13pt; margin-top:0pt; margin-bottom:5.5pt; padding-left:135pt; font-family:Arial; font-size:11pt">Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;</P>
<P style="line-height:13pt; margin-top:0pt; margin-bottom:-13pt; padding-left:135pt; text-indent:-36pt; font-family:Arial; font-size:11pt">(b)</P>
<P style="line-height:13pt; margin-top:0pt; margin-bottom:5.5pt; padding-left:135pt; font-family:Arial; font-size:11pt">Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;</P>
<P style="line-height:13pt; margin-top:0pt; margin-bottom:-13pt; padding-left:135pt; text-indent:-36pt; font-family:Arial; font-size:11pt">(c)</P>
<P style="line-height:13pt; margin:0pt; padding-left:135pt; font-family:Arial; font-size:11pt">Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and</P>
<P style="margin:0pt"><BR></P>
<P style="line-height:13pt; margin-top:0pt; margin-bottom:-13pt; padding-left:135pt; text-indent:-63pt; font-family:Arial; font-size:11pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)</P>
<P style="line-height:13pt; margin:0pt; padding-left:135pt; font-family:Arial; font-size:11pt">Disclosed in this report any change in the registrant&#146;s internal control over financial reporting that occurred during the registrant&#146;s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant&#146;s internal control over financial reporting; and</P>
<P style="margin:0pt"><BR>
<BR></P>
<P style="margin:0pt; page-break-before:always"><BR></P>
<P style="line-height:13pt; margin-top:0pt; margin-bottom:-13pt; padding-left:36pt; text-indent:-36pt; font-family:Arial; font-size:11pt">5.</P>
<P style="line-height:13pt; margin:0pt; padding-left:36pt; font-family:Arial; font-size:11pt">The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):</P>
<P style="margin:0pt"><BR></P>
<P style="line-height:13pt; margin-top:0pt; margin-bottom:-13pt; padding-left:108pt; text-indent:-36pt; font-family:Arial; font-size:11pt">(a)</P>
<P style="line-height:13pt; margin:0pt; padding-left:108pt; font-family:Arial; font-size:11pt">All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonable likely to adversely affect the registrant&#146;s ability to record, process, summarize and report financial information; and</P>
<P style="margin:0pt"><BR></P>
<P style="line-height:13pt; margin-top:0pt; margin-bottom:-13pt; padding-left:108pt; text-indent:-36pt; font-family:Arial; font-size:11pt">(b)</P>
<P style="line-height:13pt; margin:0pt; padding-left:108pt; font-family:Arial; font-size:11pt">Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.</P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt"><BR></P>
<TABLE style="font-size:10pt" cellspacing=0 align=center><TR><TD width=50.4></TD><TD width=90></TD><TD width=171></TD></TR>
<TR><TD valign=top width=67.2><P style="line-height:13pt; margin:0pt; font-family:Arial; font-size:11pt" align=justify>Date:</P>
</TD><TD valign=top width=120><P style="line-height:13pt; margin:0pt; font-family:Arial; font-size:11pt" align=justify><U>May 9, 2006</U></P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=228><P style="line-height:13pt; margin:0pt; font-family:Arial; font-size:11pt" align=justify>/s/ Christine A. Tsingos</P>
</TD></TR>
<TR><TD valign=top width=67.2>&nbsp;</TD><TD valign=top width=120>&nbsp;</TD><TD valign=top width=228><P style="line-height:13pt; margin:0pt; font-family:Arial; font-size:11pt" align=justify>Christine A. Tsingos</P>
</TD></TR>
<TR><TD valign=top width=67.2>&nbsp;</TD><TD valign=top width=120>&nbsp;</TD><TD valign=top width=228><P style="line-height:13pt; margin:0pt; font-family:Arial; font-size:11pt" align=justify>Vice President,</P>
</TD></TR>
<TR><TD valign=top width=67.2>&nbsp;</TD><TD valign=top width=120>&nbsp;</TD><TD valign=top width=228><P style="line-height:13pt; margin:0pt; font-family:Arial; font-size:11pt" align=justify>Chief Financial Officer</P>
</TD></TR>
<TR><TD valign=top width=67.2>&nbsp;</TD><TD valign=top width=120>&nbsp;</TD><TD valign=top width=228>&nbsp;</TD></TR>
</TABLE>
<P style="margin:0pt" align=justify><BR></P>
<P style="margin:0pt" align=justify><BR>
<BR></P>
</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-32
<SEQUENCE>4
<FILENAME>exh321.htm
<TEXT>
<!doctype html public "-//IETF//DTD HTML//EN">
<HTML>
<HEAD>
<TITLE>Exhibit 32</TITLE>
<META NAME="author" CONTENT="Stephanie Trudrung">
<META NAME="date" CONTENT="02/24/2005">
</HEAD>
<BODY style="line-height:12pt; font-family:Times New Roman; font-size:10pt; color:#000000">
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:13pt; margin:0pt; font-family:Arial; font-size:11pt" align=right><FONT FACE="Arial" COLOR=#000000><B><U>Exhibit 32.1</U></B></FONT></P>
<P style="margin:0pt" align=justify><BR></P>
<P style="margin:0pt" align=justify><BR></P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:13pt; margin:0pt; font-family:Arial; font-size:11pt" align=center>Certification of Periodic Report</P>
<P style="margin:0pt" align=center><BR></P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:13pt; margin:0pt; font-family:Arial; font-size:11pt" align=justify>I, Norman Schwartz, Chief Executive Officer of Bio-Rad Laboratories, Inc. (the &#147;Company&#148;), certify, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. Section 1350, that:</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:13pt; margin-top:0pt; margin-bottom:-13pt; padding-left:36pt; text-indent:-36pt; font-family:Arial; font-size:11pt">(1)</P>
<P style="line-height:13pt; margin:0pt; padding-left:36pt; font-family:Arial; font-size:11pt">the Quarterly Report on Form 10-Q of the Company for the quarter ended March&nbsp;31, 2006 (the &#147;Report&#148;) fully complies with the requirements of Section 13 of the Securities Exchange Act of 1934 (15 U.S.C. 78m); and</P>
<P style="margin:0pt"><BR></P>
<P style="line-height:13pt; margin-top:0pt; margin-bottom:-13pt; padding-left:36pt; text-indent:-36pt; font-family:Arial; font-size:11pt">(2)</P>
<P style="line-height:13pt; margin:0pt; padding-left:36pt; font-family:Arial; font-size:11pt">the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.</P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt"><BR></P>
<TABLE style="font-size:10pt" cellspacing=0 align=center><TR><TD width=131.4></TD><TD width=63></TD><TD width=126></TD></TR>
<TR><TD valign=top width=175.2><P style="line-height:13pt; margin:0pt; font-family:Arial; font-size:11pt" align=justify>Date: <U>&nbsp;May 9, 2006</U></P>
</TD><TD valign=top width=84>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=168><P style="line-height:13pt; margin:0pt; font-family:Arial; font-size:11pt" align=justify>/s/ Norman Schwartz</P>
</TD></TR>
<TR><TD valign=top width=175.2>&nbsp;</TD><TD valign=top width=84>&nbsp;</TD><TD valign=top width=168><P style="line-height:13pt; margin:0pt; font-family:Arial; font-size:11pt" align=justify>Norman Schwartz</P>
</TD></TR>
<TR><TD valign=top width=175.2>&nbsp;</TD><TD valign=top width=84>&nbsp;</TD><TD valign=top width=168><P style="line-height:13pt; margin:0pt; font-family:Arial; font-size:11pt" align=justify>Chief Executive Officer</P>
</TD></TR>
</TABLE>
<P style="margin:0pt" align=justify><BR></P>
<P style="margin:0pt" align=justify><BR>
<BR></P>
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</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-32
<SEQUENCE>5
<FILENAME>exh322.htm
<TEXT>
<!doctype html public "-//IETF//DTD HTML//EN">
<HTML>
<HEAD>
<TITLE>Exhibit 32</TITLE>
<META NAME="author" CONTENT="Stephanie Trudrung">
<META NAME="date" CONTENT="02/24/2006">
</HEAD>
<BODY style="line-height:12pt; font-family:Times New Roman; font-size:10pt; color:#000000">
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:13pt; margin:0pt; font-family:Arial; font-size:11pt" align=right><FONT FACE="Arial" COLOR=#000000><B><U>Exhibit 32.2</U></B></FONT></P>
<P style="margin:0pt" align=justify><BR></P>
<P style="margin:0pt" align=justify><BR></P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:13pt; margin:0pt; font-family:Arial; font-size:11pt" align=center>Certification of Periodic Report</P>
<P style="margin:0pt" align=center><BR></P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:13pt; margin:0pt; font-family:Arial; font-size:11pt" align=justify>I, Christine A. Tsingos, Chief Financial Officer of Bio-Rad Laboratories, Inc. (the &#147;Company&#148;), certify, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. Section 1350, that:</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:13pt; margin-top:0pt; margin-bottom:-13pt; padding-left:36pt; text-indent:-36pt; font-family:Arial; font-size:11pt">(1)</P>
<P style="line-height:13pt; margin:0pt; padding-left:36pt; font-family:Arial; font-size:11pt">the Quarterly Report on Form 10-Q of the Company for the year ended March 31, 2006 (the &#147;Report&#148;) fully complies with the requirements of Section 13 of the Securities Exchange Act of 1934 (15 U.S.C. 78m); and</P>
<P style="margin:0pt"><BR></P>
<P style="line-height:13pt; margin-top:0pt; margin-bottom:-13pt; padding-left:36pt; text-indent:-36pt; font-family:Arial; font-size:11pt">(2)</P>
<P style="line-height:13pt; margin:0pt; padding-left:36pt; font-family:Arial; font-size:11pt">the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.</P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt"><BR></P>
<TABLE style="font-size:10pt" cellspacing=0 align=center><TR><TD width=131.4></TD><TD width=27></TD><TD width=153></TD></TR>
<TR><TD valign=top width=175.2><P style="line-height:13pt; margin:0pt; font-family:Arial; font-size:11pt" align=justify>Date: <U>&nbsp;May 9, 2006</U></P>
</TD><TD valign=top width=36>&nbsp;</TD><TD valign=top width=204><P style="line-height:13pt; margin:0pt; font-family:Arial; font-size:11pt" align=justify><U>/s/ Christine A. Tsingos</U></P>
</TD></TR>
<TR><TD valign=top width=175.2>&nbsp;</TD><TD valign=top width=36>&nbsp;</TD><TD valign=top width=204><P style="line-height:13pt; margin:0pt; font-family:Arial; font-size:11pt" align=justify>Christine A. Tsingos</P>
</TD></TR>
<TR><TD valign=top width=175.2>&nbsp;</TD><TD valign=top width=36>&nbsp;</TD><TD valign=top width=204><P style="line-height:13pt; margin:0pt; font-family:Arial; font-size:11pt" align=justify>Vice President, </P>
</TD></TR>
<TR><TD valign=top width=175.2>&nbsp;</TD><TD valign=top width=36>&nbsp;</TD><TD valign=top width=204><P style="line-height:13pt; margin:0pt; font-family:Arial; font-size:11pt" align=justify>Chief Financial Officer</P>
</TD></TR>
</TABLE>
<P style="margin:0pt" align=justify><BR></P>
<P style="margin:0pt" align=justify><BR>
<BR></P>
</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10
<SEQUENCE>6
<FILENAME>exh1013.htm
<TEXT>
<!doctype html public "-//IETF//DTD HTML//EN">
<HTML>
<HEAD>
<TITLE>#357182 v1 - copy of (4787)</TITLE>
<META NAME="author" CONTENT="DANIELJ">
<META NAME="date" CONTENT="05/04/2006">
</HEAD>
<BODY style="line-height:12pt; font-family:Times New Roman; font-size:10pt; color:#000000">
<P style="margin:0pt" align=right><FONT FACE="Times New Roman" COLOR=#000000><U>Exhibit 10.13</U></FONT></P>
<P style="margin:0pt"><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=right><B>EXECUTION COPY</B></P>
<P style="margin-top:0pt; margin-bottom:12pt"><BR></P>
<P style="line-height:13pt; margin-top:0pt; margin-bottom:12pt; font-family:Times New Roman Bold; font-size:11pt" align=center><FONT FACE="Times New Roman Bold"><B>STOCK PURCHASE AGREEMENT</B></FONT></P>
<P style="line-height:13pt; margin-top:0pt; margin-bottom:12pt; font-size:11pt" align=center><FONT FACE="Times New Roman">Dated as of August 16, 2004</FONT></P>
<P style="line-height:13pt; margin-top:0pt; margin-bottom:12pt; font-size:11pt" align=center>among</P>
<P style="line-height:13pt; margin-top:0pt; margin-bottom:12pt; font-size:11pt" align=center>__________</P>
<P style="line-height:13pt; margin-top:0pt; margin-bottom:12pt; font-family:Times New Roman Bold; font-size:11pt" align=center><FONT FACE="Times New Roman Bold"><B>BUYER:</B></FONT></P>
<P style="line-height:13pt; margin-top:0pt; margin-bottom:12pt; font-size:11pt" align=center><FONT FACE="Times New Roman">Bio-Rad Laboratories, Inc.</FONT></P>
<P style="line-height:13pt; margin-top:0pt; margin-bottom:12pt; font-size:11pt" align=center>__________</P>
<P style="margin-top:0pt; margin-bottom:12pt"><BR></P>
<P style="line-height:13pt; margin-top:0pt; margin-bottom:12pt; font-size:11pt" align=center>AND</P>
<P style="line-height:13pt; margin-top:0pt; margin-bottom:12pt; font-size:11pt" align=center>_______________</P>
<P style="line-height:13pt; margin-top:0pt; margin-bottom:12pt; font-family:Times New Roman Bold; font-size:11pt" align=center><FONT FACE="Times New Roman Bold"><B>SELLERS:</B></FONT></P>
<P style="line-height:13pt; margin-top:0pt; margin-bottom:12pt; font-size:11pt" align=center><FONT FACE="Times New Roman">THE SHAREHOLDERS<BR>
NAMED ON THE<BR>
SIGNATURE PAGES HEREOF</FONT></P>
<P style="margin-top:0pt; margin-bottom:12pt"><BR></P>
<P style="line-height:13pt; margin-top:0pt; margin-bottom:12pt; font-size:11pt" align=center>RELATING TO THE STOCK OF</P>
<P style="line-height:13pt; margin-top:0pt; margin-bottom:12pt; font-size:11pt" align=center>________________</P>
<P style="line-height:13pt; margin-top:0pt; margin-bottom:12pt; font-family:Times New Roman Bold; font-size:11pt" align=center><FONT FACE="Times New Roman Bold"><B>COMPANY:</B></FONT></P>
<P style="line-height:13pt; margin-top:0pt; margin-bottom:12pt; font-size:11pt" align=center><FONT FACE="Times New Roman">MJ GeneWorks, Incorporated</FONT></P>
<P style="line-height:13pt; margin-top:0pt; margin-bottom:12pt; font-size:11pt" align=center>_______________</P>
<P style="margin-top:0pt; margin-bottom:12pt"><BR></P>
<P style="margin-top:0pt; margin-bottom:12pt"><BR></P>
<P style="margin-top:0pt; margin-bottom:12pt"><BR></P>
<P style="margin-top:0pt; margin-bottom:12pt"><BR>
<BR></P>
<P style="margin:0pt; page-break-before:always"><BR></P>
<P style="margin:0pt"><BR></P>
<P style="margin-top:0pt; margin-bottom:12pt"><BR>
<BR></P>
<TABLE style="font-size:10pt" cellspacing=0><TR><TD width=77.4></TD><TD width=351></TD><TD width=50.4></TD></TR>
<TR><TD valign=top width=638.4 colspan=3>&nbsp;</TD></TR>
<TR><TD valign=top width=638.4 colspan=3>&nbsp;</TD></TR>
<TR><TD valign=top width=638.4 colspan=3><P style="line-height:14pt; margin:0pt; font-size:12pt" align=center><B>TABLE OF CONTENTS</B></P>
</TD></TR>
<TR><TD valign=top width=103.2>&nbsp;</TD><TD valign=top width=468>&nbsp;</TD><TD valign=top width=67.2>&nbsp;</TD></TR>
<TR><TD valign=top width=103.2>&nbsp;</TD><TD valign=top width=468>&nbsp;</TD><TD valign=top width=67.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>Page</P>
</TD></TR>
<TR><TD valign=top width=103.2>&nbsp;</TD><TD valign=top width=468>&nbsp;</TD><TD valign=top width=67.2>&nbsp;</TD></TR>
<TR><TD valign=top width=103.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>ARTICLE I.</P>
</TD><TD valign=top width=468><P style="line-height:13pt; margin:0pt; font-size:11pt">DEFINITIONS</P>
</TD><TD valign=top width=67.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>1</P>
</TD></TR>
<TR><TD valign=top width=103.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>1.1</P>
</TD><TD valign=top width=468><P style="line-height:13pt; margin:0pt; font-size:11pt">Defined Terms</P>
</TD><TD valign=top width=67.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>1</P>
</TD></TR>
<TR><TD valign=top width=103.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>1.2</P>
</TD><TD valign=top width=468><P style="line-height:13pt; margin:0pt; font-size:11pt">Other Defined Terms</P>
</TD><TD valign=top width=67.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>8</P>
</TD></TR>
<TR><TD valign=top width=103.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>ARTICLE II.</P>
</TD><TD valign=top width=468><P style="line-height:13pt; margin:0pt; font-size:11pt">PURCHASE AND SALE OF STOCK</P>
</TD><TD valign=top width=67.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>9</P>
</TD></TR>
<TR><TD valign=top width=103.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>2.1</P>
</TD><TD valign=top width=468><P style="line-height:13pt; margin:0pt; font-size:11pt">Purchase and Sale of Stock</P>
</TD><TD valign=top width=67.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>9</P>
</TD></TR>
<TR><TD valign=top width=103.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>2.2</P>
</TD><TD valign=top width=468><P style="line-height:13pt; margin:0pt; font-size:11pt">Indemnification Escrow</P>
</TD><TD valign=top width=67.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>11</P>
</TD></TR>
<TR><TD valign=top width=103.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>ARTICLE III.</P>
</TD><TD valign=top width=468><P style="line-height:13pt; margin:0pt; font-size:11pt">POST-CLOSING MATTERS</P>
</TD><TD valign=top width=67.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>11</P>
</TD></TR>
<TR><TD valign=top width=103.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>3.1</P>
</TD><TD valign=top width=468><P style="line-height:13pt; margin:0pt; font-size:11pt">Post-Closing Calculations</P>
</TD><TD valign=top width=67.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>13</P>
</TD></TR>
<TR><TD valign=top width=103.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>3.2</P>
</TD><TD valign=top width=468><P style="line-height:13pt; margin:0pt; font-size:11pt">Closing Costs; Transfer Taxes</P>
</TD><TD valign=top width=67.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>13</P>
</TD></TR>
<TR><TD valign=top width=103.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>3.3</P>
</TD><TD valign=top width=468><P style="line-height:13pt; margin:0pt; font-size:11pt">The Deferred Purchase Price</P>
</TD><TD valign=top width=67.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>13</P>
</TD></TR>
<TR><TD valign=top width=103.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>ARTICLE IV.</P>
</TD><TD valign=top width=468><P style="line-height:13pt; margin:0pt; font-size:11pt">CLOSING</P>
</TD><TD valign=top width=67.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>14</P>
</TD></TR>
<TR><TD valign=top width=103.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>4.1</P>
</TD><TD valign=top width=468><P style="line-height:13pt; margin:0pt; font-size:11pt">Closing</P>
</TD><TD valign=top width=67.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>14</P>
</TD></TR>
<TR><TD valign=top width=103.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>4.2</P>
</TD><TD valign=top width=468><P style="line-height:13pt; margin:0pt; font-size:11pt">Deliveries at Closing</P>
</TD><TD valign=top width=67.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>14</P>
</TD></TR>
<TR><TD valign=top width=103.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>4.3</P>
</TD><TD valign=top width=468><P style="line-height:13pt; margin:0pt; font-size:11pt">Other Closing Transactions</P>
</TD><TD valign=top width=67.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>14</P>
</TD></TR>
<TR><TD valign=top width=103.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>ARTICLE V.</P>
</TD><TD valign=top width=468><P style="line-height:13pt; margin:0pt; font-size:11pt">REPRESENTATIONS AND WARRANTIES OF THE </P>
</TD><TD valign=top width=67.2>&nbsp;</TD></TR>
<TR><TD valign=top width=103.2>&nbsp;</TD><TD valign=top width=468><P style="line-height:13pt; margin:0pt; font-size:11pt">SUBJECT COMPANIES AND THE SHAREHOLDERS</P>
</TD><TD valign=top width=67.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>15</P>
</TD></TR>
<TR><TD valign=top width=103.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>5.1</P>
</TD><TD valign=top width=468><P style="line-height:13pt; margin:0pt; font-size:11pt">Organizations; Capitalization</P>
</TD><TD valign=top width=67.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>15</P>
</TD></TR>
<TR><TD valign=top width=103.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>5.2</P>
</TD><TD valign=top width=468><P style="line-height:13pt; margin:0pt; font-size:11pt">Authorization</P>
</TD><TD valign=top width=67.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>16</P>
</TD></TR>
<TR><TD valign=top width=103.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>5.3</P>
</TD><TD valign=top width=468><P style="line-height:13pt; margin:0pt; font-size:11pt">Title to Assets</P>
</TD><TD valign=top width=67.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>16</P>
</TD></TR>
<TR><TD valign=top width=103.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>5.4</P>
</TD><TD valign=top width=468><P style="line-height:13pt; margin:0pt; font-size:11pt">Intellectual Property Rights</P>
</TD><TD valign=top width=67.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>17</P>
</TD></TR>
<TR><TD valign=top width=103.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>5.5</P>
</TD><TD valign=top width=468><P style="line-height:13pt; margin:0pt; font-size:11pt">Facility Leases</P>
</TD><TD valign=top width=67.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>18</P>
</TD></TR>
<TR><TD valign=top width=103.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>5.6</P>
</TD><TD valign=top width=468><P style="line-height:13pt; margin:0pt; font-size:11pt">Contracts and Commitments</P>
</TD><TD valign=top width=67.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>19</P>
</TD></TR>
<TR><TD valign=top width=103.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>5.7</P>
</TD><TD valign=top width=468><P style="line-height:13pt; margin:0pt; font-size:11pt">No Conflict of Violation</P>
</TD><TD valign=top width=67.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>21</P>
</TD></TR>
<TR><TD valign=top width=103.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>5.8</P>
</TD><TD valign=top width=468><P style="line-height:13pt; margin:0pt; font-size:11pt">Financial Statements</P>
</TD><TD valign=top width=67.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>21</P>
</TD></TR>
<TR><TD valign=top width=103.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>5.69</P>
</TD><TD valign=top width=468><P style="line-height:13pt; margin:0pt; font-size:11pt">Absence of Certain Change or Events</P>
</TD><TD valign=top width=67.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>22</P>
</TD></TR>
<TR><TD valign=top width=103.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>5.10</P>
</TD><TD valign=top width=468><P style="line-height:13pt; margin:0pt; font-size:11pt">Liabilities</P>
</TD><TD valign=top width=67.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>24</P>
</TD></TR>
<TR><TD valign=top width=103.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>5.11</P>
</TD><TD valign=top width=468><P style="line-height:13pt; margin:0pt; font-size:11pt">Accounts Receivable</P>
</TD><TD valign=top width=67.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>24</P>
</TD></TR>
<TR><TD valign=top width=103.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>5.12</P>
</TD><TD valign=top width=468><P style="line-height:13pt; margin:0pt; font-size:11pt">Inventories</P>
</TD><TD valign=top width=67.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>25</P>
</TD></TR>
<TR><TD valign=top width=103.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>5.13</P>
</TD><TD valign=top width=468><P style="line-height:13pt; margin:0pt; font-size:11pt">Litigation</P>
</TD><TD valign=top width=67.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>25</P>
</TD></TR>
<TR><TD valign=top width=103.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>5.14</P>
</TD><TD valign=top width=468><P style="line-height:13pt; margin:0pt; font-size:11pt">Labor Matters</P>
</TD><TD valign=top width=67.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>25</P>
</TD></TR>
<TR><TD valign=top width=103.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>5.15</P>
</TD><TD valign=top width=468><P style="line-height:13pt; margin:0pt; font-size:11pt">Compliance with Law; Permits</P>
</TD><TD valign=top width=67.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>26</P>
</TD></TR>
<TR><TD valign=top width=103.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>5.16</P>
</TD><TD valign=top width=468><P style="line-height:13pt; margin:0pt; font-size:11pt">Tax Matters</P>
</TD><TD valign=top width=67.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>26</P>
</TD></TR>
<TR><TD valign=top width=103.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>5.17</P>
</TD><TD valign=top width=468><P style="line-height:13pt; margin:0pt; font-size:11pt">Severance Arrangements</P>
</TD><TD valign=top width=67.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>28</P>
</TD></TR>
<TR><TD valign=top width=103.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>5.18</P>
</TD><TD valign=top width=468><P style="line-height:13pt; margin:0pt; font-size:11pt">Insurance</P>
</TD><TD valign=top width=67.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>28</P>
</TD></TR>
<TR><TD valign=top width=103.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>5.19</P>
</TD><TD valign=top width=468><P style="line-height:13pt; margin:0pt; font-size:11pt">Purchase Commitments and Outstanding Bids</P>
</TD><TD valign=top width=67.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>29</P>
</TD></TR>
<TR><TD valign=top width=103.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>5.20</P>
</TD><TD valign=top width=468><P style="line-height:13pt; margin:0pt; font-size:11pt">Reserved</P>
</TD><TD valign=top width=67.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>29</P>
</TD></TR>
<TR><TD valign=top width=103.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>5.21</P>
</TD><TD valign=top width=468><P style="line-height:13pt; margin:0pt; font-size:11pt">Customers and Suppliers</P>
</TD><TD valign=top width=67.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>29</P>
</TD></TR>
<TR><TD valign=top width=103.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>5.22</P>
</TD><TD valign=top width=468><P style="line-height:13pt; margin:0pt; font-size:11pt">Bank Accounts</P>
</TD><TD valign=top width=67.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>29</P>
</TD></TR>
<TR><TD valign=top width=103.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>5.23</P>
</TD><TD valign=top width=468><P style="line-height:13pt; margin:0pt; font-size:11pt">Environmental Matters</P>
</TD><TD valign=top width=67.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>29</P>
</TD></TR>
<TR><TD valign=top width=103.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>5.24</P>
</TD><TD valign=top width=468><P style="line-height:13pt; margin:0pt; font-size:11pt">Employee Benefit Plans</P>
</TD><TD valign=top width=67.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>32</P>
</TD></TR>
<TR><TD valign=top width=103.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>5.25</P>
</TD><TD valign=top width=468><P style="line-height:13pt; margin:0pt; font-size:11pt">No Brokers</P>
</TD><TD valign=top width=67.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>35</P>
</TD></TR>
</TABLE>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt"><BR>
<BR></P>
<P style="line-height:14pt; margin:0pt; text-indent:233pt; font-size:12pt">i</P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt; page-break-before:always"><BR></P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt"><BR></P>
<TABLE style="font-size:10pt" cellspacing=0><TR><TD width=77.4></TD><TD width=351></TD><TD width=50.4></TD></TR>
<TR><TD valign=top width=103.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>5.26</P>
</TD><TD valign=top width=468><P style="line-height:13pt; margin:0pt; font-size:11pt">No other Agreements to Sell the Assets or Capital Stock</P>
</TD><TD valign=top width=67.2>&nbsp;</TD></TR>
<TR><TD valign=top width=103.2>&nbsp;</TD><TD valign=top width=468><P style="line-height:13pt; margin:0pt; font-size:11pt">of such Subject</P>
</TD><TD valign=top width=67.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>35</P>
</TD></TR>
<TR><TD valign=top width=103.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>5.27</P>
</TD><TD valign=top width=468><P style="line-height:13pt; margin:0pt; font-size:11pt">Material Misstatements Or Omissions</P>
</TD><TD valign=top width=67.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>35</P>
</TD></TR>
<TR><TD valign=top width=103.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>5.28</P>
</TD><TD valign=top width=468><P style="line-height:13pt; margin:0pt; font-size:11pt">Reserved</P>
</TD><TD valign=top width=67.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>35</P>
</TD></TR>
<TR><TD valign=top width=103.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>5.29</P>
</TD><TD valign=top width=468><P style="line-height:13pt; margin:0pt; font-size:11pt">Product Returns, Product Liability and Product Warranty</P>
</TD><TD valign=top width=67.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>35</P>
</TD></TR>
<TR><TD valign=top width=103.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>5.30</P>
</TD><TD valign=top width=468><P style="line-height:13pt; margin:0pt; font-size:11pt">Line of Credit</P>
</TD><TD valign=top width=67.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>35</P>
</TD></TR>
<TR><TD valign=top width=103.2><P style="margin:0pt">ARTICLE VI.</P>
</TD><TD valign=top width=468><P style="line-height:13pt; margin:0pt; font-size:11pt">REPRESENTATIONS AND WARRANTIES AND</P>
</TD><TD valign=top width=67.2>&nbsp;</TD></TR>
<TR><TD valign=top width=103.2>&nbsp;</TD><TD valign=top width=468><P style="line-height:13pt; margin:0pt; font-size:11pt">COVENANTS OF BUYER</P>
</TD><TD valign=top width=67.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>36</P>
</TD></TR>
<TR><TD valign=top width=103.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>6.1</P>
</TD><TD valign=top width=468><P style="line-height:13pt; margin:0pt; font-size:11pt">Organization of Buyer</P>
</TD><TD valign=top width=67.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>36</P>
</TD></TR>
<TR><TD valign=top width=103.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>6.2</P>
</TD><TD valign=top width=468><P style="line-height:13pt; margin:0pt; font-size:11pt">Authorization</P>
</TD><TD valign=top width=67.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>36</P>
</TD></TR>
<TR><TD valign=top width=103.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>6.3</P>
</TD><TD valign=top width=468><P style="line-height:13pt; margin:0pt; font-size:11pt">No Conflict or Violation</P>
</TD><TD valign=top width=67.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>36</P>
</TD></TR>
<TR><TD valign=top width=103.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>6.4</P>
</TD><TD valign=top width=468><P style="line-height:13pt; margin:0pt; font-size:11pt">Consents and Approvals</P>
</TD><TD valign=top width=67.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>36</P>
</TD></TR>
<TR><TD valign=top width=103.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>6.5</P>
</TD><TD valign=top width=468><P style="line-height:13pt; margin:0pt; font-size:11pt">Buyer Knowledge of Breach</P>
</TD><TD valign=top width=67.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>36</P>
</TD></TR>
<TR><TD valign=top width=103.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>6.6</P>
</TD><TD valign=top width=468><P style="line-height:13pt; margin:0pt; font-size:11pt">Reserved</P>
</TD><TD valign=top width=67.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>36</P>
</TD></TR>
<TR><TD valign=top width=103.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>6.7</P>
</TD><TD valign=top width=468><P style="line-height:13pt; margin:0pt; font-size:11pt">Canadian Employees</P>
</TD><TD valign=top width=67.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>36</P>
</TD></TR>
<TR><TD valign=top width=103.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>6.8</P>
</TD><TD valign=top width=468><P style="line-height:13pt; margin:0pt; font-size:11pt">Bankruptcy</P>
</TD><TD valign=top width=67.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>36</P>
</TD></TR>
<TR><TD valign=top width=103.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>6.9</P>
</TD><TD valign=top width=468><P style="line-height:13pt; margin:0pt; font-size:11pt">Facility Side Letters; Simson Agreement; Etc</P>
</TD><TD valign=top width=67.2>&nbsp;</TD></TR>
<TR><TD valign=top width=103.2><P style="margin:0pt" align=center>ARTICLE VII.</P>
</TD><TD valign=top width=468><P style="line-height:13pt; margin:0pt; font-size:11pt">COVENANTS OF THE SUBJECT COMPANIES,</P>
</TD><TD valign=top width=67.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>38</P>
</TD></TR>
<TR><TD valign=top width=103.2>&nbsp;</TD><TD valign=top width=468><P style="line-height:13pt; margin:0pt; font-size:11pt">THE SHAREHOLDERS AND BUYER</P>
</TD><TD valign=top width=67.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>38</P>
</TD></TR>
<TR><TD valign=top width=103.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>7.1</P>
</TD><TD valign=top width=468><P style="line-height:13pt; margin:0pt; font-size:11pt">Maintenance of Business Prior to Closing</P>
</TD><TD valign=top width=67.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>38</P>
</TD></TR>
<TR><TD valign=top width=103.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>7.2</P>
</TD><TD valign=top width=468><P style="line-height:13pt; margin:0pt; font-size:11pt">Reserved</P>
</TD><TD valign=top width=67.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>38</P>
</TD></TR>
<TR><TD valign=top width=103.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>7.3</P>
</TD><TD valign=top width=468><P style="line-height:13pt; margin:0pt; font-size:11pt">Environmental</P>
</TD><TD valign=top width=67.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>39</P>
</TD></TR>
<TR><TD valign=top width=103.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>7.4</P>
</TD><TD valign=top width=468><P style="line-height:13pt; margin:0pt; font-size:11pt">Consents and Commercially Reasonable Efforts</P>
</TD><TD valign=top width=67.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>39</P>
</TD></TR>
<TR><TD valign=top width=103.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>7.5</P>
</TD><TD valign=top width=468><P style="line-height:13pt; margin:0pt; font-size:11pt">Financial Statements</P>
</TD><TD valign=top width=67.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>39</P>
</TD></TR>
<TR><TD valign=top width=103.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>7.6</P>
</TD><TD valign=top width=468><P style="line-height:13pt; margin:0pt; font-size:11pt">Employee Matters</P>
</TD><TD valign=top width=67.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>39</P>
</TD></TR>
<TR><TD valign=top width=103.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>7.7</P>
</TD><TD valign=top width=468><P style="line-height:13pt; margin:0pt; font-size:11pt">Reserved</P>
</TD><TD valign=top width=67.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>39</P>
</TD></TR>
<TR><TD valign=top width=103.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>7.8</P>
</TD><TD valign=top width=468><P style="line-height:13pt; margin:0pt; font-size:11pt">No Mergers, Consolidations, Sale of Stock, Etc</P>
</TD><TD valign=top width=67.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>39</P>
</TD></TR>
<TR><TD valign=top width=103.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>7.9</P>
</TD><TD valign=top width=468><P style="line-height:13pt; margin:0pt; font-size:11pt">Litigation Escrow</P>
</TD><TD valign=top width=67.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>40</P>
</TD></TR>
<TR><TD valign=top width=103.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>7.10</P>
</TD><TD valign=top width=468><P style="line-height:13pt; margin:0pt; font-size:11pt">Reserved</P>
</TD><TD valign=top width=67.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>40</P>
</TD></TR>
<TR><TD valign=top width=103.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>7.11</P>
</TD><TD valign=top width=468><P style="line-height:13pt; margin:0pt; font-size:11pt">Line of Credit</P>
</TD><TD valign=top width=67.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>40</P>
</TD></TR>
<TR><TD valign=top width=103.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>7.12</P>
</TD><TD valign=top width=468><P style="line-height:13pt; margin:0pt; font-size:11pt">Shareholders&#146; Loans</P>
</TD><TD valign=top width=67.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>40</P>
</TD></TR>
<TR><TD valign=top width=103.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>7.13</P>
</TD><TD valign=top width=468><P style="line-height:13pt; margin:0pt; font-size:11pt">Confidentiality</P>
</TD><TD valign=top width=67.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>40</P>
</TD></TR>
<TR><TD valign=top width=103.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>7.14</P>
</TD><TD valign=top width=468><P style="line-height:13pt; margin:0pt; font-size:11pt">Section 338 (h) (10) Election; 2004 Stockholder Tax Liability</P>
</TD><TD valign=top width=67.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>41</P>
</TD></TR>
<TR><TD valign=top width=103.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>7.15</P>
</TD><TD valign=top width=468><P style="line-height:13pt; margin:0pt; font-size:11pt">Reserved</P>
</TD><TD valign=top width=67.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>43</P>
</TD></TR>
<TR><TD valign=top width=103.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>7.16</P>
</TD><TD valign=top width=468><P style="line-height:13pt; margin:0pt; font-size:11pt">Filings</P>
</TD><TD valign=top width=67.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>43</P>
</TD></TR>
<TR><TD valign=top width=103.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>7.17</P>
</TD><TD valign=top width=468><P style="line-height:13pt; margin:0pt; font-size:11pt">401 (k) Plan</P>
</TD><TD valign=top width=67.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>43</P>
</TD></TR>
<TR><TD valign=top width=103.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>7.18</P>
</TD><TD valign=top width=468><P style="line-height:13pt; margin:0pt; font-size:11pt">Colonnade Apartment</P>
</TD><TD valign=top width=67.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>43</P>
</TD></TR>
<TR><TD valign=top width=103.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>7.19</P>
</TD><TD valign=top width=468><P style="line-height:13pt; margin:0pt; font-size:11pt">Additional Transfer of Assets</P>
</TD><TD valign=top width=67.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>44</P>
</TD></TR>
<TR><TD valign=top width=103.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>7.20</P>
</TD><TD valign=top width=468><P style="line-height:13pt; margin:0pt; font-size:11pt">Jeanette Finney</P>
</TD><TD valign=top width=67.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>45</P>
</TD></TR>
<TR><TD valign=top width=103.2><P style="margin:0pt" align=center>ARTICLE VII.</P>
</TD><TD valign=top width=468><P style="line-height:13pt; margin:0pt; font-size:11pt">CONDITIONS TO THE SHAREHOLDERS&#146; OBLIGATIONS</P>
</TD><TD valign=top width=67.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>46</P>
</TD></TR>
<TR><TD valign=top width=103.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>8.1</P>
</TD><TD valign=top width=468><P style="line-height:13pt; margin:0pt; font-size:11pt">Representations, Warranties and Covenants</P>
</TD><TD valign=top width=67.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>46</P>
</TD></TR>
<TR><TD valign=top width=103.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>8.2</P>
</TD><TD valign=top width=468><P style="line-height:13pt; margin:0pt; font-size:11pt">Consents</P>
</TD><TD valign=top width=67.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>46</P>
</TD></TR>
<TR><TD valign=top width=103.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>8.3</P>
</TD><TD valign=top width=468><P style="line-height:13pt; margin:0pt; font-size:11pt">No Governmental Proceedings of Litigation</P>
</TD><TD valign=top width=67.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>46</P>
</TD></TR>
<TR><TD valign=top width=103.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>8.4</P>
</TD><TD valign=top width=468><P style="line-height:13pt; margin:0pt; font-size:11pt">Opinion of Counsel</P>
</TD><TD valign=top width=67.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>46</P>
</TD></TR>
<TR><TD valign=top width=103.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>8.5</P>
</TD><TD valign=top width=468><P style="line-height:13pt; margin:0pt; font-size:11pt">Certificates</P>
</TD><TD valign=top width=67.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>46</P>
</TD></TR>
<TR><TD valign=top width=103.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>8.3</P>
</TD><TD valign=top width=468><P style="line-height:13pt; margin:0pt; font-size:11pt">Consulting Agreements</P>
</TD><TD valign=top width=67.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>46</P>
</TD></TR>
</TABLE>
<P style="margin:0pt"><BR>
<BR></P>
<P style="line-height:14pt; margin:0pt; text-indent:233pt; font-size:12pt">ii</P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt; page-break-before:always"><BR></P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt"><BR></P>
<TABLE style="font-size:10pt" cellspacing=0><TR><TD width=77.4></TD><TD width=351></TD><TD width=50.4></TD></TR>
<TR><TD valign=top width=103.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>ARTICLE IX.</P>
</TD><TD valign=top width=468><P style="line-height:13pt; margin:0pt; font-size:11pt">CONDITIONS TO BUYER&#146;S OBLIGATIONS</P>
</TD><TD valign=top width=67.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>46</P>
</TD></TR>
<TR><TD valign=top width=103.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>9.1</P>
</TD><TD valign=top width=468><P style="line-height:13pt; margin:0pt; font-size:11pt">Representations Warranties and Covenants</P>
</TD><TD valign=top width=67.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>47</P>
</TD></TR>
<TR><TD valign=top width=103.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>9.2</P>
</TD><TD valign=top width=468><P style="line-height:13pt; margin:0pt; font-size:11pt">Consents</P>
</TD><TD valign=top width=67.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>47</P>
</TD></TR>
<TR><TD valign=top width=103.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>9.3</P>
</TD><TD valign=top width=468><P style="line-height:13pt; margin:0pt; font-size:11pt">No Governmental Proceedings or Litigagion</P>
</TD><TD valign=top width=67.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>47</P>
</TD></TR>
<TR><TD valign=top width=103.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>9.4</P>
</TD><TD valign=top width=468><P style="line-height:13pt; margin:0pt; font-size:11pt">Opinion of Counsel</P>
</TD><TD valign=top width=67.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>47</P>
</TD></TR>
<TR><TD valign=top width=103.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>9.5</P>
</TD><TD valign=top width=468><P style="line-height:13pt; margin:0pt; font-size:11pt">Certificates</P>
</TD><TD valign=top width=67.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>47</P>
</TD></TR>
<TR><TD valign=top width=103.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>9.6</P>
</TD><TD valign=top width=468><P style="line-height:13pt; margin:0pt; font-size:11pt">Reserved</P>
</TD><TD valign=top width=67.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>48</P>
</TD></TR>
<TR><TD valign=top width=103.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>9.7</P>
</TD><TD valign=top width=468><P style="line-height:13pt; margin:0pt; font-size:11pt">Reserved</P>
</TD><TD valign=top width=67.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>48</P>
</TD></TR>
<TR><TD valign=top width=103.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>9.8</P>
</TD><TD valign=top width=468><P style="line-height:13pt; margin:0pt; font-size:11pt">Escrow Agreements</P>
</TD><TD valign=top width=67.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>48</P>
</TD></TR>
<TR><TD valign=top width=103.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>9.9</P>
</TD><TD valign=top width=468><P style="line-height:13pt; margin:0pt; font-size:11pt">Consulting Agreements</P>
</TD><TD valign=top width=67.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>48</P>
</TD></TR>
<TR><TD valign=top width=103.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>9.10</P>
</TD><TD valign=top width=468><P style="line-height:13pt; margin:0pt; font-size:11pt">Reserved</P>
</TD><TD valign=top width=67.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>48</P>
</TD></TR>
<TR><TD valign=top width=103.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>9.11</P>
</TD><TD valign=top width=468><P style="line-height:13pt; margin:0pt; font-size:11pt">Reserved</P>
</TD><TD valign=top width=67.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>48</P>
</TD></TR>
<TR><TD valign=top width=103.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>9.12</P>
</TD><TD valign=top width=468><P style="line-height:13pt; margin:0pt; font-size:11pt">Tax Matters</P>
</TD><TD valign=top width=67.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>48</P>
</TD></TR>
<TR><TD valign=top width=103.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>9.13</P>
</TD><TD valign=top width=468><P style="line-height:13pt; margin:0pt; font-size:11pt">Endorsement of Loans</P>
</TD><TD valign=top width=67.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>48</P>
</TD></TR>
<TR><TD valign=top width=103.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>9.14</P>
</TD><TD valign=top width=468><P style="line-height:13pt; margin:0pt; font-size:11pt">Financial Statements</P>
</TD><TD valign=top width=67.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>48</P>
</TD></TR>
<TR><TD valign=top width=103.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>ARTICLE X.</P>
</TD><TD valign=top width=468><P style="line-height:13pt; margin:0pt; font-size:11pt">COVENANT NO TO COMPETE</P>
</TD><TD valign=top width=67.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>48</P>
</TD></TR>
<TR><TD valign=top width=103.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>ARTICLE XI.</P>
</TD><TD valign=top width=468><P style="line-height:13pt; margin:0pt; font-size:11pt">ACTIONS BY THE SHARHOLDERS AND BUYER</P>
</TD><TD valign=top width=67.2>&nbsp;</TD></TR>
<TR><TD valign=top width=103.2>&nbsp;</TD><TD valign=top width=468><P style="line-height:13pt; margin:0pt; font-size:11pt">AFTER THE CLOSING</P>
</TD><TD valign=top width=67.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>50</P>
</TD></TR>
<TR><TD valign=top width=103.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>11.1</P>
</TD><TD valign=top width=468><P style="line-height:13pt; margin:0pt; font-size:11pt">Books and Records</P>
</TD><TD valign=top width=67.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>50</P>
</TD></TR>
<TR><TD valign=top width=103.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>11.2</P>
</TD><TD valign=top width=468><P style="line-height:13pt; margin:0pt; font-size:11pt">Survival of Representations, Etc.</P>
</TD><TD valign=top width=67.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>50</P>
</TD></TR>
<TR><TD valign=top width=103.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>11.3</P>
</TD><TD valign=top width=468><P style="line-height:13pt; margin:0pt; font-size:11pt">Indemnifications</P>
</TD><TD valign=top width=67.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>51</P>
</TD></TR>
<TR><TD valign=top width=103.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>11.4</P>
</TD><TD valign=top width=468><P style="line-height:13pt; margin:0pt; font-size:11pt">Further Assurances</P>
</TD><TD valign=top width=67.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>53</P>
</TD></TR>
<TR><TD valign=top width=103.2><P style="margin:0pt" align=center>ARTICLE XII.</P>
</TD><TD valign=top width=468><P style="line-height:13pt; margin:0pt; font-size:11pt">MISCELLANEOUS</P>
</TD><TD valign=top width=67.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>54</P>
</TD></TR>
<TR><TD valign=top width=103.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>12.1</P>
</TD><TD valign=top width=468><P style="line-height:13pt; margin:0pt; font-size:11pt">Terminations</P>
</TD><TD valign=top width=67.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>54</P>
</TD></TR>
<TR><TD valign=top width=103.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>12.2</P>
</TD><TD valign=top width=468><P style="line-height:13pt; margin:0pt; font-size:11pt">Assignment</P>
</TD><TD valign=top width=67.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>54</P>
</TD></TR>
<TR><TD valign=top width=103.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>12.3</P>
</TD><TD valign=top width=468><P style="line-height:13pt; margin:0pt; font-size:11pt">Notices; Transfer of Funds</P>
</TD><TD valign=top width=67.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>54</P>
</TD></TR>
<TR><TD valign=top width=103.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>12.4</P>
</TD><TD valign=top width=468><P style="line-height:13pt; margin:0pt; font-size:11pt">Choice of Law; Service of Process</P>
</TD><TD valign=top width=67.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>55</P>
</TD></TR>
<TR><TD valign=top width=103.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>12.5</P>
</TD><TD valign=top width=468><P style="line-height:13pt; margin:0pt; font-size:11pt">Entire Agreement, Amendments</P>
</TD><TD valign=top width=67.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>56</P>
</TD></TR>
<TR><TD valign=top width=103.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>12.6</P>
</TD><TD valign=top width=468><P style="line-height:13pt; margin:0pt; font-size:11pt">Multiple Counterparts</P>
</TD><TD valign=top width=67.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>56</P>
</TD></TR>
<TR><TD valign=top width=103.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>12.7</P>
</TD><TD valign=top width=468><P style="line-height:13pt; margin:0pt; font-size:11pt">Expenses</P>
</TD><TD valign=top width=67.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>56</P>
</TD></TR>
<TR><TD valign=top width=103.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>12.8</P>
</TD><TD valign=top width=468><P style="line-height:13pt; margin:0pt; font-size:11pt">Invalidity</P>
</TD><TD valign=top width=67.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>56</P>
</TD></TR>
<TR><TD valign=top width=103.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>12.9</P>
</TD><TD valign=top width=468><P style="line-height:13pt; margin:0pt; font-size:11pt">Titles</P>
</TD><TD valign=top width=67.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>56</P>
</TD></TR>
<TR><TD valign=top width=103.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>12.10</P>
</TD><TD valign=top width=468><P style="line-height:13pt; margin:0pt; font-size:11pt">Publicity</P>
</TD><TD valign=top width=67.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>56</P>
</TD></TR>
<TR><TD valign=top width=103.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>12.11</P>
</TD><TD valign=top width=468><P style="line-height:13pt; margin:0pt; font-size:11pt">Burdern and Benefit</P>
</TD><TD valign=top width=67.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>56</P>
</TD></TR>
<TR><TD valign=top width=103.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>12.12</P>
</TD><TD valign=top width=468><P style="line-height:13pt; margin:0pt; font-size:11pt">Cumulative Remedies</P>
</TD><TD valign=top width=67.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>56</P>
</TD></TR>
<TR><TD valign=top width=103.2>&nbsp;</TD><TD valign=top width=468>&nbsp;</TD><TD valign=top width=67.2>&nbsp;</TD></TR>
<TR><TD valign=top width=103.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>EXHIBITS</P>
</TD><TD valign=top width=468>&nbsp;</TD><TD valign=top width=67.2>&nbsp;</TD></TR>
<TR><TD valign=top width=103.2>&nbsp;</TD><TD valign=top width=468><P style="line-height:13pt; margin:0pt; font-size:11pt">Exhibit 2.2(a) &#150; Indenmification Escrow Agreement</P>
</TD><TD valign=top width=67.2>&nbsp;</TD></TR>
<TR><TD valign=top width=103.2>&nbsp;</TD><TD valign=top width=468><P style="line-height:13pt; margin:0pt; font-size:11pt">Exhibit 4.3(c) &#150; Consulting Agreement</P>
</TD><TD valign=top width=67.2>&nbsp;</TD></TR>
<TR><TD valign=top width=103.2>&nbsp;</TD><TD valign=top width=468><P style="line-height:13pt; margin:0pt; font-size:11pt">Exhibit 4.3(d) &#150; Facility Side Letters</P>
</TD><TD valign=top width=67.2>&nbsp;</TD></TR>
<TR><TD valign=top width=103.2>&nbsp;</TD><TD valign=top width=468><P style="line-height:13pt; margin:0pt; font-size:11pt">Exhibit 6.8 &#150; Common Interest &#150; Confidentiality Agreenent</P>
</TD><TD valign=top width=67.2>&nbsp;</TD></TR>
<TR><TD valign=top width=103.2>&nbsp;</TD><TD valign=top width=468><P style="line-height:13pt; margin:0pt; font-size:11pt">Exhibit 7.19 &#150; Severance Escrow Agreement</P>
</TD><TD valign=top width=67.2>&nbsp;</TD></TR>
<TR><TD valign=top width=103.2>&nbsp;</TD><TD valign=top width=468><P style="line-height:13pt; margin:0pt; font-size:11pt">Exhibit 8.4 &#150; Opinion of Counsel - Buyer</P>
</TD><TD valign=top width=67.2>&nbsp;</TD></TR>
<TR><TD valign=top width=103.2>&nbsp;</TD><TD valign=top width=468><P style="line-height:13pt; margin:0pt; font-size:11pt">Exhibit 9.4 &#150; Opinion of Counsel - Seller</P>
</TD><TD valign=top width=67.2>&nbsp;</TD></TR>
<TR><TD valign=top width=103.2>&nbsp;</TD><TD valign=top width=468><P style="line-height:13pt; margin:0pt; font-size:11pt">Exhibit 11.3 &#150; Simson Letter Agreement</P>
</TD><TD valign=top width=67.2>&nbsp;</TD></TR>
</TABLE>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt"><BR></P>
<P style="margin-top:0pt; margin-bottom:12pt"><BR>
<BR></P>
<P style="line-height:14pt; margin:0pt; text-indent:233pt; font-size:12pt">iii</P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt; page-break-before:always"><BR></P>
<P style="margin:0pt"><BR></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; font-size:12pt" align=center>STOCK PURCHASE AGREEMENT</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:72pt; font-size:12pt">STOCK PURCHASE AGREEMENT dated as of August 16, 2004 by and among BIO-RAD LABORATORIES, INC., a Delaware corporation (&#147;<U>Buyer</U>&#148;), MJ GENEWORKS, INCORPORATED, a Wisconsin corporation (&#147;<U>MJ GeneWorks</U>&#148;); and together with its subsidiaries MJ Research, Incorporated, a Massachusetts corporation (&#147;<U>MJ Research</U>&#148;), MJ BioWorks, Inc., a Delaware corporation (&#147;<U>MJ BioWorks</U>&#148;), and MJ Japan, K.K., a Japanese company (&#147;<U>MJ Japan</U>&#148;), sometimes referred to herein each as a &#147;<U>Subject Company</U>&#148; and collectively as the &#147;<U>Subject Companies</U>&#148;),<B> </B>and MICHAEL J. FINNEY and JOHN D. FINNEY (individually, a &#147;<U>Shareholder</U>,&#148; and collectively, the &#147;<U>Shareholders</U>&#148;).</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; font-size:12pt" align=center><U>RECITALS</U></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt">A.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:108pt; font-size:12pt">MJ Research, MJ BioWorks and MJ Japan are wholly-owned subsidiaries of MJ GeneWorks.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt">B.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:108pt; font-size:12pt">Buyer desires to purchase from the Shareholders, and the Shareholders desire to sell to Buyer, all of the issued and outstanding capital stock of MJ GeneWorks (and thus indirectly all of the issued and outstanding capital stock of MJ Research, MJ BioWorks and MJ Japan) on the terms and conditions contained herein (the &#147;<U>Acquisition</U>&#148;).</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt">C.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:108pt; font-size:12pt">In connection with the Acquisition, the Shareholders are willing to be bound by a covenant not to compete with Buyer, on the terms and subject to the conditions contained herein.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt">D.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:108pt; font-size:12pt">In connection with the Acquisition, the Shareholders are willing to indemnify Buyer, and Buyer is willing to indemnify the Shareholders, against certain liabilities they may incur as a result of the Acquisition, on the terms and subject to the conditions contained herein.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; font-size:12pt" align=center><U>AGREEMENT</U></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:72pt; font-size:12pt">NOW THEREFORE, in consideration of the mutual covenants and promises contained herein and for other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the parties hereto agree as follows:</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; font-family:Times New Roman Bold; font-size:12pt" align=center><FONT FACE="Times New Roman Bold"><B>ARTICLE I.<BR>
<BR>
<A NAME="_Toc454280380"></A><A NAME="_Toc457913263"></A><A NAME="_Toc457913378"></A><A NAME="_Toc457913852"></A><A NAME="_Toc457914163"></A>DEFINITIONS</B></FONT></P>
<A NAME="_Toc454280381"></A><A NAME="_Toc457913264"></A><A NAME="_Toc457913379"></A><A NAME="_Toc457913853"></A><A NAME="_Toc457914164"></A><P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:4.5pt; text-indent:72pt; font-size:12pt"><FONT FACE="Times New Roman">1.1</FONT></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:4.5pt; text-indent:108pt; font-size:12pt"><U>Defined Terms</U>. &nbsp;As used herein, the terms below shall have the following meanings. &nbsp;Any of these terms, unless the context otherwise requires, may be used in the singular or plural depending upon the reference.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:72pt; font-size:12pt">&#147;<U>2003 Balance Sheet Date</U>&#148; shall mean as at December 31, 2003.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:72pt; font-size:12pt">&#147;<U>2003 Balance Sheet</U>&#148; shall mean the unaudited balance sheets of the Subject Companies as at the 2003 Balance Sheet Date.</P>
<P style="margin-top:0pt; margin-bottom:12pt"><BR>
<BR></P>
<P style="margin:0pt" align=center>1</P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt; page-break-before:always"><BR></P>
<P style="margin:0pt"><BR></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:72pt; font-size:12pt">&#147;<U>2003 Financial Statements</U>&#148; shall mean the 2003 Balance Sheet and the unaudited statements of income, retained earnings and cash flows of the Subject Companies for the period ended December 31, 2003.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:72pt; font-size:12pt">&#147;<U>Applera</U>&#148; shall mean Applera Corporation.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:72pt; font-size:12pt">&#147;<U>Applera Claims</U>&#148; shall mean all claims and liabilities arising from or in connection with the Applera Litigation, including without limitation, any damages, punitive damages, back royalties, award of attorneys&#146; fees and costs, and interest associated therewith, but expressly excluding accruals shown on the books of MJ Research for anticipated license fees from May 1, 2004 under the TCMA license agreement or the real time license agreement.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:72pt; font-size:12pt">&#147;<U>Applera Litigation</U>&#148; shall mean (a)&nbsp;all proceedings concerning patent infringement, inducement of infringement, contributory infringement, and willful infringement, and related claims and all other proceedings concerning antitrust, unfair competition and related claims involving Applera, Roche, the Shareholders and MJ Research et al., before the U.S. District Court in New Haven, Connecticut; (b) all proceedings currently before courts in Germany as disclosed in the Statement of Financial Affairs related to real time patents and other thermal cycler or PCR-related patents, (c)&nbsp;any administrative or other proceeding in or before the European Patent Office, and (d)&nbsp;any other claims that later may be filed by Applera and/or Roche in any country or other jurisdiction (or that may have been filed already by Applera and/or Roche but not served and about which the Shareholders have no cur
rent knowledge), including, without limitation, in Japan, relating to thermal cyclers and/or real-time PCR equipment, methods or systems and/or any other similar matter.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:72pt; font-size:12pt">&#147;<U>Assets</U>&#148; shall mean, with respect to each Subject Company, all of such Subject Company&#146;s right, title and interest in and to all properties, assets and rights of any kind, whether tangible or intangible, real or personal, owned by such Subject Company or in which such Subject Company has any interest whatsoever, including without limitation, the following:</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt">(a)</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:108pt; font-size:12pt">accounts and notes receivable, refunds or deposits and prepaid expenses (including, without limitation, any prepaid insurance premiums) of such Subject Company; </P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt">(b)</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:108pt; font-size:12pt">cash and cash equivalents of such Subject Company;</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt">(c)</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:108pt; font-size:12pt">all Contract Rights of such Subject Company;</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt">(d)</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:108pt; font-size:12pt">all Leasehold Estates of such Subject Company;</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt">(e)</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:108pt; font-size:12pt">all Leasehold Improvements of such Subject Company;</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt">(f)</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:108pt; font-size:12pt">all Fixtures and Equipment of such Subject Company;</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt">(g)</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:108pt; font-size:12pt">all Inventory of such Subject Company;</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt">(h)</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:108pt; font-size:12pt">all Books and Records of such Subject Company;</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt">(i)</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:108pt; font-size:12pt">all Intellectual Property Rights of such Subject Company; </P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt">(j)</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:108pt; font-size:12pt">all Claims of such Subject Company;</P>
<P style="margin-top:0pt; margin-bottom:12pt"><BR>
<BR></P>
<P style="margin:0pt" align=center>2</P>
<P style="margin:0pt"><BR></P>
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<P style="margin:0pt"><BR></P>
<P style="margin:0pt; page-break-before:always"><BR></P>
<P style="margin:0pt"><BR></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt">(k)</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:108pt; font-size:12pt">the Insurance Policies of such Subject Company to the extent Buyer desires such policies to be assigned; and</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt">(l)</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:108pt; font-size:12pt">all Permits of such Subject Company.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:72pt; font-size:12pt">&#147;<U>Bankruptcy Proceeding</U>&#148; shall mean the Chapter 11 bankruptcy proceeding of MJ Research taking place before the Bankruptcy Court in Reno, Nevada.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:72pt; font-size:12pt">&#147;<U>Books and Records</U>&#148; shall mean, with respect to each Subject Company, all records pertaining to such Subject Company, including, without limitation, all corporate books and records of such Subject Company.</P>
<P style="line-height:14.4pt; margin-top:0pt; margin-bottom:12pt; text-indent:72pt; font-size:12pt">&#147;<U>Business</U>&#148; shall mean (a) the design, manufacture, direct sales and distribution through third parties of (i) instrumentation used for thermal cycling or real time PCR nucleic acid detection, and (ii) other instrumentation generally incorporating thermal cyclers together with florescence detection systems or similar optical scanning technologies; and (b) the development, manufacturing and licensing of DNA polymerase reagents used for the PCR process, or DNA polymerase reagents used for the detection of real time PCR reaction, but in all events shall not include any of the following activities:</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:108pt; font-size:12pt">(1)</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:144pt; font-size:12pt">The businesses in which Orion Genomics is currently engaged or in which it has firm plans to engage, which shall be limited to: &nbsp;reagents, methods and services relating to DNA methylation in the research, agriculture, and diagnostic markets, even though those might make use of (provided that they do not design, manufacture, sell, or distribute) thermal cyclers and real time thermal cyclers, &nbsp;and (provided they do not design or manufacture) DNA polymerase reagents for real-time PCR detection.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:108pt; font-size:12pt">(2)</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:144pt; font-size:12pt">The businesses in which Cardinal Diagnostics is currently engaged or in which it has firm plans to engage, which shall be limited to: computerized methods and software for DNA-based diagnostics, including licensing of intellectual property rights concerning such methods and software; as well as licensing of such intellectual property rights as may be acquired in the future by Cardinal.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:108pt; font-size:12pt">(3)</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:144pt; font-size:12pt">The businesses in which Geneworks Pty. Ltd. is currently engaged or in which they have firm plans to engage, which shall be limited to: commercial oligonucleotide synthesis; the importation into Australia or New Zealand and/or resale of equipment and supplies for the biological sciences in those countries, including reagents, but with respect to equipment for PCR and real-time PCR, including equipment manufactured by or for a Subject Company, only until the termination or expiration of the Distribution Agreement dated June 1, 2003 by and between GeneWorks Pty. Ltd. and MJ Research.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:108pt; font-size:12pt">(4)</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:144pt; font-size:12pt">The businesses in which ActivBiotics is currently engaged or in which it has firm plans to engage, which shall be limited to: drug discovery, testing, licensing, and marketing.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:108pt; font-size:12pt">(5)</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:144pt; font-size:12pt">The businesses in which ManifesTech, Inc. is currently engaged or in which it has firm plans to engage, which shall be limited to: &nbsp;inventory control for medical devices and similar items.</P>
<P style="margin-top:0pt; margin-bottom:12pt"><BR>
<BR></P>
<P style="margin:0pt" align=center>3</P>
<P style="margin:0pt"><BR></P>
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<P style="margin:0pt; page-break-before:always"><BR></P>
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<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:72pt; font-size:12pt">&#147;<U>Claims</U>&#148; shall mean, with respect to each Subject Company, all claims, causes of action, choses in action, rights of recovery and rights of set-off of whatever kind or description against any person or entity arising out of or relating to the Assets of such Subject Company or relating to such Subject Company.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:72pt; font-size:12pt">&#147;<U>COBRA</U>&#148; shall mean the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:72pt; font-size:12pt">&#147;<U>Code</U>&#148; shall mean the Internal Revenue Code of 1986, as the same may be amended from time to time.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:72pt; font-size:12pt">&#147;<U>Contract</U>&#148; shall mean, with respect to each Subject Company, any of the agreements, contracts, Leases, notes, loans, evidence of indebtedness, purchase orders, letters of credit, franchise agreements, undertakings, covenants not to compete, employment agreements, licenses, instruments, obligations, commitments, policies, binding purchase and sales orders, binding quotations and other executory commitments to which such Subject Company is a party or to which any of its Assets are subject, whether oral or written, express or implied, including, without limitation, those described in Schedule&nbsp;5.6.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:72pt; font-size:12pt">&#147;<U>Contract Rights</U>&#148; shall mean, with respect to each Subject Company, all of such Subject Company&#146;s rights and obligations under the Contracts of such Subject Company.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:72pt; font-size:12pt">&#147;<U>Disclosure Schedule</U>&#148; shall mean a schedule to this Agreement, together with the Statement of Financial Affairs and the Schedule of Assets and Liabilities, which sets forth the exceptions to the representations and warranties contained in Article V hereof and certain other information called for by Article V hereof and other provisions of this Agreement or any Other Transaction Document. &nbsp;Unless otherwise specified, each reference in this Agreement or in any Other Transaction Document to any numbered schedule is a reference to that numbered schedule which is included in the Disclosure Schedule. &nbsp;For purposes of this Agreement and the Other Transaction Documents, the &#147;<U>Disclosure Schedules</U>&#148; shall mean the Disclosure Schedules attached to this Agreement and the Statement of Financial Affairs and the Schedule of Assets and Liabilities as of the execution of this Agreement 
except as otherwise agreed to in writing by the Buyer and the Shareholders. &nbsp;A disclosure made in any Disclosure Schedule shall be deemed to be a disclosure for the purpose of each other relevant Disclosure Schedule, provided that such disclosure must be reasonably apparent as a disclosure relating to such other Disclosure Schedule.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:72pt; font-size:12pt">&#147;<U>Encumbrances</U>&#148; shall mean any claim, lien, pledge, option, charge, easement, security interest, right-of-way, encumbrance or other right of third parties.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:72pt; font-size:12pt">&#147;<U>Facilities</U>&#148; shall mean, with respect to each Subject Company, the plants, offices, manufacturing facilities, stores, warehouses, administration buildings, and all other real property and related facilities that are identified or listed under such Subject Company&#146;s name on Schedule&nbsp;5.5.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:72pt; font-size:12pt">&#147;<U>Facility Leases</U>&#148; shall mean, with respect to each Subject Company, all of the Leases of Facilities listed under such Subject Company&#146;s name on Schedule 5.5.</P>
<P style="margin-top:0pt; margin-bottom:12pt"><BR>
<BR></P>
<P style="margin:0pt" align=center>4</P>
<P style="margin:0pt"><BR></P>
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<P style="margin:0pt; page-break-before:always"><BR></P>
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<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:72pt; font-size:12pt">&#147;<U>Fixtures and Equipment</U>&#148; shall mean, with respect to each Subject Company, all of the furniture, fixtures, furnishings, machinery and equipment, spare parts, supplies, Vehicles and other tangible personal property owned by such Subject Company or used by or held for use by such Subject Company in its business as of the 2003 Balance Sheet Date plus all additions, replacements or deletions thereof since the 2003 Balance Sheet Date in the ordinary course of such Subject Company&#146;s business.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:72pt; font-size:12pt">&#147;<U>GAAP</U>&#148; shall mean generally accepted accounting principles in the United States of America, as in effect from time to time.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:72pt; font-size:12pt">&#147;<U>Insurance Policies</U>&#148; shall mean, with respect to each Subject Company, the insurance policies relating to the Assets of such Subject Company or relating to such Subject Company listed under such Subject Company&#146;s name on Schedule 5.18.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:72pt; font-size:12pt">&#147;<U>Inventory</U>&#148; shall mean, with respect to each Subject Company, (a) all of such Subject Company&#146;s inventories within the Facilities of such Subject Company held for resale or lease in the ordinary course of such Subject Company&#146;s business to its customers, (b) all of such Subject Company&#146;s inventories of computers and other equipment that are leased to and in the possession of such Subject Company&#146;s customers, (c) all office supplies and similar materials of such Subject Company located in the Facilities of such Subject Company, and (d) all of the raw materials, work in process, spare parts, finished products, wrapping, supply and packaging items, employee uniforms and similar items of such Subject Company, in the Facilities of such Subject Company or wherever otherwise located.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:72pt; font-size:12pt">&#147;<U>Joint Defense Agreement</U>&#148; means the Joint Defense and Prosecution Agreement, dated as of May 20, 2004, by and among MJ Research, Michael Finney and John Finney and their counsel, and Buyer and its counsel.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:72pt; font-size:12pt">&#147;<U>Knowledge</U>&#148; or &#147;<U>known</U>&#148;, whether or not capitalized, when used in connection with MJ GeneWorks, shall mean the knowledge, after reasonable inquiry, of John Finney, Michael Finney, Michael Mortillaro, Peter Vander Horn, Sam Peper, Mark Lynch and Jennifer Tweet and Paul Lariviere.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:72pt; font-size:12pt">&nbsp;&#147;<U>Leasehold Estates</U>&#148; shall mean, with respect to each Subject Company, all of such Subject Company&#146;s rights and obligations as lessee under the Leases of such Subject Company listed on the Disclosure Schedule.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:72pt; font-size:12pt">&#147;<U>Leasehold Improvements</U>&#148; shall mean, with respect to each Subject Company, all of such Subject Company&#146;s leasehold improvements situated in or on the property leased under the Leases of such Subject Company.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:72pt; font-size:12pt">&#147;<U>Leases</U>&#148; shall mean, with respect to each Subject Company, all of the leases and subleases of such Subject Company listed under such Subject Company&#146;s name on the Disclosure Schedule and all other leases and subleases relating to the Assets of such Subject Company that are not required to be scheduled pursuant to this Agreement.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:72pt; font-size:12pt">&#147;<U>Litigation Matters</U>&#148; shall mean the Applera Claims, the Senior Executive Dispute, the Qui Tam Dispute and the Simson Litigation, and any of them.</P>
<P style="margin-top:0pt; margin-bottom:12pt"><BR>
<BR></P>
<P style="margin:0pt" align=center>5</P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt"><BR></P>
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<P style="margin:0pt; page-break-before:always"><BR></P>
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<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:72pt; font-size:12pt">&#147;<U>Material Adverse Effect</U>&#148; shall mean, with respect to the Subject Companies taken as a whole, a material adverse effect on (i) the business, operations, Properties, Assets, liabilities or financial condition of the Subject Companies taken as a whole or (ii) the right or ability of MJ GeneWorks to consummate the transactions contemplated hereby; provided that &#147;Material Adverse Effect&#148; specifically excludes any change relating to the Applera Claims, the Qui Tam Dispute or the Bankruptcy Proceeding.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:72pt; font-size:12pt">&#147;<U>Other Transaction Documents</U>&#148; means each of the following documents, including, without limitation, the attachments and schedules thereto:</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt">(a)</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:108pt; font-size:12pt">Litigation Escrow Agreement;</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt">(b)</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:108pt; font-size:12pt">Indemnification Escrow Agreement;</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt">(c)</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:108pt; font-size:12pt">Facility Side Letters;</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt">(d)</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:108pt; font-size:12pt">Endorsement Allonges;</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt">(e)</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:108pt; font-size:12pt">Consulting Agreement (John Finney);</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:108pt; text-indent:-36pt; font-size:12pt">(f)</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:108pt; font-size:12pt">Consulting Agreement (Michael Finney);</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:108pt; text-indent:-36pt; font-size:12pt">(g)</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:108pt; font-size:12pt">Joint Defense Agreement; and</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:108pt; text-indent:-36pt; font-size:12pt">(i)</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:108pt; font-size:12pt">Side Letter.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:72pt; font-size:12pt">&#147;<U>Permits</U>&#148; shall mean, with respect to each Subject Company, all licenses, permits and other governmental authorizations necessary to carry on the business of such Subject Company as currently operated or as such Subject Company proposes, prior to the Closing Date, to presently operate.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:72pt; font-size:12pt">&#147;<U>Person</U>&#148; means a natural person or any association, relationship or artificial person or entity through or by means of which an enterprise or activity may be conducted, including a corporation (whether for-profit or not-for-profit), partnership (whether general or limited), limited liability company, professional association or corporation, joint venture, estate, trust, cooperative, association, foundation, union, syndicate, league, consortium, coalition, committee, society, firm, company or other enterprise, association, organization or governmental body.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:72pt; font-size:12pt">&#147;<U>Product Liability/Warranty Claims</U>&#148; shall mean product liability claims and product warranty claims made against a Subject Company for products sold, or services rendered, by such Subject Company prior to the Closing.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:72pt; font-size:12pt">&#147;<U>Post-April Applera Fees</U>&#148; shall mean the following aggregate amounts: &nbsp;(1) all legal and professional fees (including expert fees and expenses) incurred by the Subject Companies after April 30, 2004 in connection with the defense, prosecution and settlement of any of (a) the Applera Litigation and (b) the Bankruptcy Proceeding; and (2) all legal fees and expenses related to the Applera Litigation, including travel and lodging, reasonably incurred by the Shareholders after April 30, 2004 in defending against Applera Claims, and in asserting </P>
<P style="margin-top:0pt; margin-bottom:12pt"><BR>
<BR></P>
<P style="margin:0pt" align=center>6</P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt; page-break-before:always"><BR></P>
<P style="margin:0pt"><BR></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; font-size:12pt">claims and counterclaims in the Applera Litigation against Applera, Roche, or any affiliate of such companies.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:72pt; font-size:12pt">&#147;<U>Pre-May Applera Fees</U>&#148; shall mean all accrued and unpaid as of the date hereof legal and professional fees (including expert fees and expenses) incurred by the Subject Companies prior to May 1, 2004 in connection with the defense, prosecution and settlement of any of (a) the Applera Litigation and (b) the Bankruptcy Proceeding.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:72pt; font-size:12pt">&#147;<U>Qui Tam Dispute</U>&#148; shall mean the proceeding entitled <U>United States ex rel. MJ Research, Inc. v. Applera Corp., et al.</U>, Case No. CV 03-5429 MRP (Ex) (C.D. Cal.), Appeal No. 03-57229 (9th Cir.).</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:72pt; font-size:12pt">&#147;<U>Roche</U>&#148; shall mean Roche Molecular Systems, Inc.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:72pt; font-size:12pt">&#147;<U>Schedule of Assets and Liabilities</U>&#148; shall mean the schedule of assets and liabilities filed by MJ Research in the Bankruptcy Proceeding, as amended, including as amended by Schedule&nbsp;1.1-A.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:72pt; font-size:12pt">&#147;<U>Side Letter</U>&#148; means that certain Side Letter executed on the date hereof by and among Buyer, the Subject Companies and the Shareholders.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:72pt; font-size:12pt">&#147;<U>Statement of Financial Affairs</U>&#148; shall mean the statement of financial affairs, dated May 7, 2004.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:72pt; font-size:12pt">&#147;<U>Subsidiary</U>&#148; shall mean, with respect to each Subject Company, (i) any corporation in an unbroken chain of corporations beginning with such Subject Company if each of the corporations other than the last corporation in the unbroken chain then owns stock possessing 50% or more of the total combined voting power of all classes of stock in one of the other corporation in such chain; (ii) any partnership in which such Subject Company is a general partner; or (iii) any partnership in which such Subject Company possesses a 50% or greater interest in the total capital or total income of such partnership. </P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:72pt; font-size:12pt">&#147;<U>Tax</U>&#148; or &#147;<U>Taxes</U>&#148; shall mean, with respect to each Subject Company, all federal, state, local, foreign and other taxes, assessments or other government charges, including, without limitation, income, estimated income, business, occupation, franchise, property, sales, transfer, use, employment, commercial rent or withholding taxes, including interest, penalties and additions in connection therewith for which such Subject Company may be liable.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:72pt; font-size:12pt">&#147;<U>Vehicles</U>&#148; shall mean, with respect to each Subject Company, all automobiles and other vehicles owned or leased by such Subject Company as listed under such Subject Company&#146;s name on Schedule&nbsp;1.1.</P>
<P style="margin-top:0pt; margin-bottom:12pt"><BR></P>
<A NAME="_Toc454280382"></A><A NAME="_Toc457913265"></A><A NAME="_Toc457913380"></A><A NAME="_Toc457913854"></A><A NAME="_Toc457914165"></A><TABLE style="font-size:10pt" cellspacing=0><TR><TD width=113.4></TD><TD width=274.5></TD><TD width=90.9></TD></TR>
<TR><TD valign=top width=151.2><P style="line-height:14pt; margin:0pt; font-size:12pt" align=right>1.2</P>
</TD><TD valign=top width=487.2 colspan=2><P style="line-height:14pt; margin:0pt; font-size:12pt"><U>Other Defined Terms</U>. &nbsp;In addition to the terms defined in the Recitals to</P>
</TD></TR>
<TR><TD valign=top width=638.4 colspan=3><P style="line-height:14pt; margin:0pt; font-size:12pt">this Agreement and Section 1.1, the following terms shall have the meanings defined for such terms in the Sections set forth below:</P>
</TD></TR>
<TR><TD valign=top width=517.2 colspan=2>&nbsp;</TD><TD valign=top width=121.2>&nbsp;</TD></TR>
<TR><TD valign=top width=517.2 colspan=2><P style="line-height:14pt; margin:0pt; font-size:12pt"><U>Term</U></P>
</TD><TD valign=top width=121.2><P style="line-height:14pt; margin:0pt; font-size:12pt"><U>Section</U></P>
</TD></TR>
<TR><TD valign=top width=517.2 colspan=2>&nbsp;</TD><TD valign=top width=121.2>&nbsp;</TD></TR>
</TABLE>
<P style="margin-top:0pt; margin-bottom:12pt"><BR>
<BR></P>
<P style="margin:0pt" align=center>7</P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt; page-break-before:always"><BR></P>
<P style="margin:0pt"><BR></P>
<P style="margin-top:0pt; margin-bottom:12pt"><BR>
<BR></P>
<TABLE style="font-size:10pt" cellspacing=0><TR><TD width=113.4></TD><TD width=274.5></TD><TD width=90.9></TD></TR>
<TR><TD valign=top width=517.2 colspan=2><P style="line-height:14pt; margin:0pt; font-size:12pt">Accounting Firm</P>
</TD><TD valign=top width=121.2><P style="line-height:14pt; margin:0pt; font-size:12pt">3.1</P>
</TD></TR>
<TR><TD valign=top width=517.2 colspan=2><P style="line-height:14pt; margin:0pt; font-size:12pt">Actions</P>
</TD><TD valign=top width=121.2><P style="line-height:14pt; margin:0pt; font-size:12pt">5.13</P>
</TD></TR>
<TR><TD valign=top width=517.2 colspan=2><P style="line-height:14pt; margin:0pt; font-size:12pt">Adjusted Reserves</P>
</TD><TD valign=top width=121.2><P style="line-height:14pt; margin:0pt; font-size:12pt">5.29</P>
</TD></TR>
<TR><TD valign=top width=517.2 colspan=2><P style="line-height:14pt; margin:0pt; font-size:12pt">Adjustments</P>
</TD><TD valign=top width=121.2><P style="line-height:14pt; margin:0pt; font-size:12pt">3.1</P>
</TD></TR>
<TR><TD valign=top width=517.2 colspan=2><P style="line-height:14pt; margin:0pt; font-size:12pt">Aggregate Settlement Amount</P>
</TD><TD valign=top width=121.2><P style="line-height:14pt; margin:0pt; font-size:12pt">3.3(c)(i)</P>
</TD></TR>
<TR><TD valign=top width=517.2 colspan=2><P style="line-height:14pt; margin:0pt; font-size:12pt">Buyer Payment</P>
</TD><TD valign=top width=121.2><P style="line-height:14pt; margin:0pt; font-size:12pt">7.15</P>
</TD></TR>
<TR><TD valign=top width=517.2 colspan=2><P style="line-height:14pt; margin:0pt; font-size:12pt">Buyer&#146;s Accountants</P>
</TD><TD valign=top width=121.2><P style="line-height:14pt; margin:0pt; font-size:12pt">3.1</P>
</TD></TR>
<TR><TD valign=top width=517.2 colspan=2><P style="line-height:14pt; margin:0pt; font-size:12pt">Buyer Employees</P>
</TD><TD valign=top width=121.2><P style="line-height:14pt; margin:0pt; font-size:12pt">7.19</P>
</TD></TR>
<TR><TD valign=top width=517.2 colspan=2><P style="line-height:14pt; margin:0pt; font-size:12pt">Buyer 401(k) Plan</P>
</TD><TD valign=top width=121.2><P style="line-height:14pt; margin:0pt; font-size:12pt">7.17</P>
</TD></TR>
<TR><TD valign=top width=517.2 colspan=2><P style="line-height:14pt; margin:0pt; font-size:12pt">Closing</P>
</TD><TD valign=top width=121.2><P style="line-height:14pt; margin:0pt; font-size:12pt">4.1</P>
</TD></TR>
<TR><TD valign=top width=517.2 colspan=2><P style="line-height:14pt; margin:0pt; font-size:12pt">Closing Date</P>
</TD><TD valign=top width=121.2><P style="line-height:14pt; margin:0pt; font-size:12pt">4.1</P>
</TD></TR>
<TR><TD valign=top width=517.2 colspan=2><P style="line-height:14pt; margin:0pt; font-size:12pt">Closing Adjusted Net Worth</P>
</TD><TD valign=top width=121.2><P style="line-height:14pt; margin:0pt; font-size:12pt">3.1</P>
</TD></TR>
<TR><TD valign=top width=517.2 colspan=2><P style="line-height:14pt; margin:0pt; font-size:12pt">Closing Date Balance Sheet</P>
</TD><TD valign=top width=121.2><P style="line-height:14pt; margin:0pt; font-size:12pt">3.1</P>
</TD></TR>
<TR><TD valign=top width=517.2 colspan=2><P style="line-height:14pt; margin:0pt; font-size:12pt">Closing Date Income Statement</P>
</TD><TD valign=top width=121.2><P style="line-height:14pt; margin:0pt; font-size:12pt">3.1</P>
</TD></TR>
<TR><TD valign=top width=517.2 colspan=2><P style="line-height:14pt; margin:0pt; font-size:12pt">Closing Date Financial Statement</P>
</TD><TD valign=top width=121.2><P style="line-height:14pt; margin:0pt; font-size:12pt">3.1</P>
</TD></TR>
<TR><TD valign=top width=517.2 colspan=2><P style="line-height:14pt; margin:0pt; font-size:12pt">Computer Software</P>
</TD><TD valign=top width=121.2><P style="line-height:14pt; margin:0pt; font-size:12pt">5.4(b)</P>
</TD></TR>
<TR><TD valign=top width=517.2 colspan=2><P style="line-height:14pt; margin:0pt; font-size:12pt">Confidential Information</P>
</TD><TD valign=top width=121.2><P style="line-height:14pt; margin:0pt; font-size:12pt">Art. X</P>
</TD></TR>
<TR><TD valign=top width=517.2 colspan=2><P style="line-height:14pt; margin:0pt; font-size:12pt">Consulting Agreements</P>
</TD><TD valign=top width=121.2><P style="line-height:14pt; margin:0pt; font-size:12pt">4.3(c)</P>
</TD></TR>
<TR><TD valign=top width=517.2 colspan=2><P style="line-height:14pt; margin:0pt; font-size:12pt">Controlling Shareholder</P>
</TD><TD valign=top width=121.2><P style="line-height:14pt; margin:0pt; font-size:12pt">Art. X</P>
</TD></TR>
<TR><TD valign=top width=517.2 colspan=2><P style="line-height:14pt; margin:0pt; font-size:12pt">Damages</P>
</TD><TD valign=top width=121.2><P style="line-height:14pt; margin:0pt; font-size:12pt">11.3(a)</P>
</TD></TR>
<TR><TD valign=top width=517.2 colspan=2><P style="line-height:14pt; margin:0pt; font-size:12pt">Deferred Purchase Price</P>
</TD><TD valign=top width=121.2><P style="line-height:14pt; margin:0pt; font-size:12pt">2.1</P>
</TD></TR>
<TR><TD valign=top width=517.2 colspan=2><P style="line-height:14pt; margin:0pt; font-size:12pt">Developments</P>
</TD><TD valign=top width=121.2><P style="line-height:14pt; margin:0pt; font-size:12pt">Art. X</P>
</TD></TR>
<TR><TD valign=top width=517.2 colspan=2><P style="line-height:14pt; margin:0pt; font-size:12pt">Difference</P>
</TD><TD valign=top width=121.2><P style="line-height:14pt; margin:0pt; font-size:12pt">7.14(c)</P>
</TD></TR>
<TR><TD valign=top width=517.2 colspan=2><P style="line-height:14pt; margin:0pt; font-size:12pt">Dismissal of the Bankruptcy Proceeding</P>
</TD><TD valign=top width=121.2><P style="line-height:14pt; margin:0pt; font-size:12pt">6.9</P>
</TD></TR>
<TR><TD valign=top width=517.2 colspan=2><P style="line-height:14pt; margin:0pt; font-size:12pt">Employee Plan</P>
</TD><TD valign=top width=121.2><P style="line-height:14pt; margin:0pt; font-size:12pt">5.24(a)(i)</P>
</TD></TR>
<TR><TD valign=top width=517.2 colspan=2><P style="line-height:14pt; margin:0pt; font-size:12pt">Endorsement Allonges</P>
</TD><TD valign=top width=121.2><P style="line-height:14pt; margin:0pt; font-size:12pt">9.13</P>
</TD></TR>
<TR><TD valign=top width=517.2 colspan=2><P style="line-height:14pt; margin:0pt; font-size:12pt">Environmental Claims</P>
</TD><TD valign=top width=121.2><P style="line-height:14pt; margin:0pt; font-size:12pt">5.23(f)(ii)</P>
</TD></TR>
<TR><TD valign=top width=517.2 colspan=2><P style="line-height:14pt; margin:0pt; font-size:12pt">Environmental Conditions</P>
</TD><TD valign=top width=121.2><P style="line-height:14pt; margin:0pt; font-size:12pt">5.23(f)(iii)</P>
</TD></TR>
<TR><TD valign=top width=517.2 colspan=2><P style="line-height:14pt; margin:0pt; font-size:12pt">ERISA</P>
</TD><TD valign=top width=121.2><P style="line-height:14pt; margin:0pt; font-size:12pt">5.24(a)(ii)</P>
</TD></TR>
<TR><TD valign=top width=517.2 colspan=2><P style="line-height:14pt; margin:0pt; font-size:12pt">ERISA Affilliate</P>
</TD><TD valign=top width=121.2><P style="line-height:14pt; margin:0pt; font-size:12pt">5.23(f)(iii)</P>
</TD></TR>
<TR><TD valign=top width=517.2 colspan=2><P style="line-height:14pt; margin:0pt; font-size:12pt">Environmental Laws</P>
</TD><TD valign=top width=121.2><P style="line-height:14pt; margin:0pt; font-size:12pt">5.23(f)(i)</P>
</TD></TR>
<TR><TD valign=top width=517.2 colspan=2><P style="line-height:14pt; margin:0pt; font-size:12pt">Facility Side Letters</P>
</TD><TD valign=top width=121.2><P style="line-height:14pt; margin:0pt; font-size:12pt">4.3(d))</P>
</TD></TR>
<TR><TD valign=top width=517.2 colspan=2><P style="line-height:14pt; margin:0pt; font-size:12pt">Final Order</P>
</TD><TD valign=top width=121.2><P style="line-height:14pt; margin:0pt; font-size:12pt">6.9</P>
</TD></TR>
<TR><TD valign=top width=517.2 colspan=2><P style="line-height:14pt; margin:0pt; font-size:12pt">Gross Up Amount</P>
</TD><TD valign=top width=121.2><P style="line-height:14pt; margin:0pt; font-size:12pt">7.14</P>
</TD></TR>
<TR><TD valign=top width=517.2 colspan=2><P style="line-height:14pt; margin:0pt; font-size:12pt">Hazardous Substances</P>
</TD><TD valign=top width=121.2><P style="line-height:14pt; margin:0pt; font-size:12pt">5.23(f)(iv)</P>
</TD></TR>
<TR><TD valign=top width=517.2 colspan=2><P style="line-height:14pt; margin:0pt; font-size:12pt">Intellectual Property Rights</P>
</TD><TD valign=top width=121.2><P style="line-height:14pt; margin:0pt; font-size:12pt">5.4</P>
</TD></TR>
<TR><TD valign=top width=517.2 colspan=2><P style="line-height:14pt; margin:0pt; font-size:12pt">Indemnification Amount</P>
</TD><TD valign=top width=121.2><P style="line-height:14pt; margin:0pt; font-size:12pt">2.14</P>
</TD></TR>
<TR><TD valign=top width=517.2 colspan=2><P style="line-height:14pt; margin:0pt; font-size:12pt">Indemnification Escrow Agreement</P>
</TD><TD valign=top width=121.2><P style="line-height:14pt; margin:0pt; font-size:12pt">2.2(a)</P>
</TD></TR>
<TR><TD valign=top width=517.2 colspan=2><P style="line-height:14pt; margin:0pt; font-size:12pt">IRS</P>
</TD><TD valign=top width=121.2><P style="line-height:14pt; margin:0pt; font-size:12pt">7.17</P>
</TD></TR>
<TR><TD valign=top width=517.2 colspan=2><P style="line-height:14pt; margin:0pt; font-size:12pt">2004 Interim Financial Statements</P>
</TD><TD valign=top width=121.2><P style="line-height:14pt; margin:0pt; font-size:12pt">7.5</P>
</TD></TR>
<TR><TD valign=top width=517.2 colspan=2><P style="line-height:14pt; margin:0pt; font-size:12pt">KERP</P>
</TD><TD valign=top width=121.2><P style="line-height:14pt; margin:0pt; font-size:12pt">7.15</P>
</TD></TR>
<TR><TD valign=top width=517.2 colspan=2>&nbsp;</TD><TD valign=top width=121.2>&nbsp;</TD></TR>
</TABLE>
<P style="margin:0pt"><BR></P>
<TABLE style="font-size:10pt" cellspacing=0><TR><TD width=387.9></TD><TD width=90.9></TD></TR>
<TR><TD valign=top width=517.2><P style="line-height:14pt; margin:0pt; font-size:12pt">KERP Payment</P>
</TD><TD valign=top width=121.2><P style="line-height:14pt; margin:0pt; font-size:12pt">7.15</P>
</TD></TR>
<TR><TD valign=top width=517.2><P style="line-height:14pt; margin:0pt; font-size:12pt">Leased Property</P>
</TD><TD valign=top width=121.2><P style="line-height:14pt; margin:0pt; font-size:12pt">5.5</P>
</TD></TR>
<TR><TD valign=top width=517.2><P style="line-height:14pt; margin:0pt; font-size:12pt">Line of Credit</P>
</TD><TD valign=top width=121.2><P style="line-height:14pt; margin:0pt; font-size:12pt">5.30</P>
</TD></TR>
<TR><TD valign=top width=517.2><P style="line-height:14pt; margin:0pt; font-size:12pt">Line of Credit Maximum Amount</P>
</TD><TD valign=top width=121.2><P style="line-height:14pt; margin:0pt; font-size:12pt">5.30</P>
</TD></TR>
<TR><TD valign=top width=517.2><P style="line-height:14pt; margin:0pt; font-size:12pt">Litigation Escrow</P>
</TD><TD valign=top width=121.2><P style="line-height:14pt; margin:0pt; font-size:12pt">7.9</P>
</TD></TR>
</TABLE>
<P style="margin:0pt"><BR>
<BR></P>
<P style="margin:0pt" align=center>8</P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt; page-break-before:always"><BR></P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt"><BR>
<BR></P>
<TABLE style="font-size:10pt" cellspacing=0><TR><TD width=387.9></TD><TD width=90.9></TD></TR>
<TR><TD valign=top width=517.2><P style="line-height:14pt; margin:0pt; font-size:12pt">MJ GeneWorks 401(d) Plan</P>
</TD><TD valign=top width=121.2><P style="line-height:14pt; margin:0pt; font-size:12pt">7.17</P>
</TD></TR>
<TR><TD valign=top width=517.2><P style="line-height:14pt; margin:0pt; font-size:12pt">Multiemployer Plan</P>
</TD><TD valign=top width=121.2><P style="line-height:14pt; margin:0pt; font-size:12pt">5.24(a)(iv)</P>
</TD></TR>
<TR><TD valign=top width=517.2><P style="line-height:14pt; margin:0pt; font-size:12pt">New Products</P>
</TD><TD valign=top width=121.2><P style="line-height:14pt; margin:0pt; font-size:12pt">5.4</P>
</TD></TR>
<TR><TD valign=top width=517.2><P style="line-height:14pt; margin:0pt; font-size:12pt">Non-competition Period</P>
</TD><TD valign=top width=121.2><P style="line-height:14pt; margin:0pt; font-size:12pt">Art. X</P>
</TD></TR>
<TR><TD valign=top width=517.2><P style="line-height:14pt; margin:0pt; font-size:12pt">PBGC</P>
</TD><TD valign=top width=121.2><P style="line-height:14pt; margin:0pt; font-size:12pt">5.24(a)(v)</P>
</TD></TR>
<TR><TD valign=top width=517.2><P style="line-height:14pt; margin:0pt; font-size:12pt">Pension Plan</P>
</TD><TD valign=top width=121.2><P style="line-height:14pt; margin:0pt; font-size:12pt">5.24(a)(vi)</P>
</TD></TR>
<TR><TD valign=top width=517.2><P style="line-height:14pt; margin:0pt; font-size:12pt">Personnel</P>
</TD><TD valign=top width=121.2><P style="line-height:14pt; margin:0pt; font-size:12pt">5.9(c)(i)</P>
</TD></TR>
<TR><TD valign=top width=517.2><P style="line-height:14pt; margin:0pt; font-size:12pt">Purchase Price</P>
</TD><TD valign=top width=121.2><P style="line-height:14pt; margin:0pt; font-size:12pt">2.1</P>
</TD></TR>
<TR><TD valign=top width=517.2><P style="line-height:14pt; margin:0pt; font-size:12pt">Section 338(h)(10)Election</P>
</TD><TD valign=top width=121.2><P style="line-height:14pt; margin:0pt; font-size:12pt">7.14</P>
</TD></TR>
<TR><TD valign=top width=517.2><P style="line-height:14pt; margin:0pt; font-size:12pt">Senior Executive Dispute</P>
</TD><TD valign=top width=121.2><P style="line-height:14pt; margin:0pt; font-size:12pt">Schedule 5.13</P>
</TD></TR>
<TR><TD valign=top width=517.2><P style="line-height:14pt; margin:0pt; font-size:12pt">Severance Costs</P>
</TD><TD valign=top width=121.2><P style="line-height:14pt; margin:0pt; font-size:12pt">7.19</P>
</TD></TR>
<TR><TD valign=top width=517.2><P style="line-height:14pt; margin:0pt; font-size:12pt">Shareholders&#146; Accountants</P>
</TD><TD valign=top width=121.2><P style="line-height:14pt; margin:0pt; font-size:12pt">3.1</P>
</TD></TR>
<TR><TD valign=top width=517.2><P style="line-height:14pt; margin:0pt; font-size:12pt">Sharehlders&#146; Loans</P>
</TD><TD valign=top width=121.2><P style="line-height:14pt; margin:0pt; font-size:12pt">7.12</P>
</TD></TR>
<TR><TD valign=top width=517.2><P style="line-height:14pt; margin:0pt; font-size:12pt">Simson Agreement</P>
</TD><TD valign=top width=121.2><P style="line-height:14pt; margin:0pt; font-size:12pt">11.3(d)</P>
</TD></TR>
<TR><TD valign=top width=517.2><P style="line-height:14pt; margin:0pt; font-size:12pt">Simson Litigation</P>
</TD><TD valign=top width=121.2><P style="line-height:14pt; margin:0pt; font-size:12pt">11.3(a)</P>
</TD></TR>
<TR><TD valign=top width=517.2><P style="line-height:14pt; margin:0pt; font-size:12pt">Territory</P>
</TD><TD valign=top width=121.2><P style="line-height:14pt; margin:0pt; font-size:12pt">Art. X</P>
</TD></TR>
<TR><TD valign=top width=517.2><P style="line-height:14pt; margin:0pt; font-size:12pt">Third-Party Purchaser</P>
</TD><TD valign=top width=121.2><P style="line-height:14pt; margin:0pt; font-size:12pt">7.19</P>
</TD></TR>
<TR><TD valign=top width=517.2><P style="line-height:14pt; margin:0pt; font-size:12pt">30-Day Transfer Preparation Period</P>
</TD><TD valign=top width=121.2><P style="line-height:14pt; margin:0pt; font-size:12pt">7.19</P>
</TD></TR>
<TR><TD valign=top width=517.2><P style="line-height:14pt; margin:0pt; font-size:12pt">Transfer</P>
</TD><TD valign=top width=121.2><P style="line-height:14pt; margin:0pt; font-size:12pt">7.19</P>
</TD></TR>
<TR><TD valign=top width=517.2><P style="line-height:14pt; margin:0pt; font-size:12pt">Transfer Net Profit</P>
</TD><TD valign=top width=121.2><P style="line-height:14pt; margin:0pt; font-size:12pt">7.19</P>
</TD></TR>
<TR><TD valign=top width=517.2><P style="line-height:14pt; margin:0pt; font-size:12pt">Transferred Assets</P>
</TD><TD valign=top width=121.2><P style="line-height:14pt; margin:0pt; font-size:12pt">7.19</P>
</TD></TR>
<TR><TD valign=top width=517.2><P style="line-height:14pt; margin:0pt; font-size:12pt">Warn Act</P>
</TD><TD valign=top width=121.2><P style="line-height:14pt; margin:0pt; font-size:12pt">7.6(a)</P>
</TD></TR>
<TR><TD valign=top width=517.2><P style="line-height:14pt; margin:0pt; font-size:12pt">Welfare Plan</P>
</TD><TD valign=top width=121.2><P style="line-height:14pt; margin:0pt; font-size:12pt">5.24(a)(viii)</P>
</TD></TR>
</TABLE>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; font-family:Times New Roman Bold; font-size:12pt" align=center><FONT FACE="Times New Roman Bold"><B>ARTICLE II.<BR>
<BR>
<A NAME="_Toc454280383"></A><A NAME="_Toc457913266"></A><A NAME="_Toc457913381"></A><A NAME="_Toc457913855"></A><A NAME="_Toc457914166"></A>PURCHASE AND SALE OF STOCK</B></FONT></P>
<A NAME="_Toc454280384"></A><A NAME="_Toc457913267"></A><A NAME="_Toc457913382"></A><A NAME="_Toc457913856"></A><A NAME="_Toc457914167"></A><P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:4.5pt; text-indent:72pt; font-size:12pt"><FONT FACE="Times New Roman">2.1</FONT></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:4.5pt; text-indent:108pt; font-size:12pt"><U>Purchase and Sale of Stock</U>.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt">(a)</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:108pt; font-size:12pt"><U>Transfer of Stock</U>. &nbsp;Upon the terms and subject to the conditions herein set forth, on the Closing Date each of the Shareholders shall sell, convey, transfer, assign, and deliver to Buyer, and Buyer shall purchase from such Shareholders, all of the outstanding shares of capital stock of MJ GeneWorks as set forth on Schedule 5.1, in exchange for the Purchase Price and the other covenants and obligations of Buyer set forth in this Agreement.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt">(b)</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:108pt; font-size:12pt"><U>Purchase Price</U>. &nbsp;Upon the terms and subject to the conditions herein set forth, in consideration for the transfer of the capital stock of MJ GeneWorks pursuant to Section&nbsp;2.1(a), the Shareholders are entitled to receive (1)&nbsp;the Closing Payment (as defined below), (2)&nbsp;a contingent deferred payment of up to $10 million, subject to the terms and conditions of the Indemnification Escrow Agreement as set forth in clause&nbsp;(c)(ii) below (the &#147;<U>Indemnification Amount</U>&#148;), (3)&nbsp;the contingent deferred payment of up to $15 million that represents the Deferred Purchase Price as set forth in clause&nbsp;(c)(iii) below, (4)&nbsp;certain contingent payments to be made pursuant to Section&nbsp;7.14 (the &#147;<U>338(h)(10) Payments</U>&#148;), and (5) a contingent deferred payment equal to 50% of the Transfer Net Profits as determined pursuant to Section 7.19, plus that portion
 of the $500,000 released to Shareholders from the Severance Escrow pursuant to Section 7.19 (such payments pursuant to Section 7.19 are referred to herein as the &#147;<U>MJ Japan Payments</U>&#148;) (all such payments are sometimes referred to herein collectively as the &#147;<U>Purchase Price</U>&#148;).</P>
<P style="margin-top:0pt; margin-bottom:12pt"><BR>
<BR></P>
<P style="margin:0pt" align=center>9</P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt"><BR></P>
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<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt">(c)</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:108pt; font-size:12pt"><U>Delivery of Purchase Price</U>. &nbsp;Upon the terms and subject to the conditions set forth herein, at the Closing or thereafter, as applicable, the Buyer will take the following actions:</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:108pt; font-size:12pt">(i)</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:144pt; font-size:12pt">At Closing, Buyer will deliver to Greenberg Traurig, on behalf of the Shareholders, via wire transfer, a payment equal to (A) $22 million, minus (B) the total amount of the Pre-May Applera Fees which, in the aggregate, exceed $3 million (the &#147;<U>Closing Payment</U>&#148;). &nbsp;A portion of the Closing Payment, equal to $500,000, will be deemed transferred directly by Buyer to Greenberg Traurig, to be held on behalf of Buyer, pursuant to the Severance Escrow Agreement. &nbsp;The remainder of the Closing Payment will be deemed held on behalf of Shareholders.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:108pt; font-size:12pt">(ii)</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:144pt; font-size:12pt">At the Closing, Buyer shall deposit with Wells Fargo, as Indemnification Escrow Agent (as defined in Section 2.2(b)), the $10 million Indemnification Amount pursuant to the escrow provided for in Section 2.2.</P>
<A NAME="_Toc454280385"></A><A NAME="_Toc457913268"></A><A NAME="_Toc457913383"></A><A NAME="_Toc457913857"></A><A NAME="_Toc457914168"></A><P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:108pt; font-size:12pt">(iii)</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:144pt; font-size:12pt">Buyer agrees, by delivery of this Agreement, to pay the Shareholders a contingent deferred amount of up to a maximum of $15 million, in the manner and at the times, and subject to any additions or reductions, as are described in Section 3.3(c) (the &#147;<U>Deferred Purchase Price</U>&#148;).</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:108pt; font-size:12pt">(iv)</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:144pt; font-size:12pt">At or after Closing, Buyer will deliver to the third party payees the amounts of the Pre-May Applera Fees as provided for in Section&nbsp;4.3(b) below, and shall account for such payments to the Shareholders. &nbsp;All such payments shall be made as soon as commercially reasonable (consistent with Bio-Rad&#146;s ordinary course billing practices and except where disputed in good faith) after MJ Research is dismissed from Bankruptcy. &nbsp;In the event that the amount of the Pre-May Applera Fees is reduced for any reason, including the agreement of any third party payee to accept less than the full amount listed under Section 4.3(b), the Buyer shall promptly pay the full amount of such reduction actually credited to Buyer to the Shareholders as an additional payment pursuant to Section 2.1(c)(i), above.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:108pt; font-size:12pt">(v)</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:144pt; font-size:12pt">Buyer will pay, at each of the times specified or required by Section 7.14, the applicable 338(h)(10) Payments to each Shareholder.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:108pt; font-size:12pt">(vi)</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:144pt; font-size:12pt">Out of the Closing Payment delivered to Greenberg Traurig pursuant to Section 2.1(c)(1), $500,000 will be deemed held for the benefit of the Buyer, pursuant to the Severance Escrow Agreement, and shall be treated by all parties for all purposes as a contingent deferred payment. &nbsp;Any portion of the Severance Escrow that becomes payable to the Shareholders under the terms of Section 7.19, and, if there is a Transfer Net Profit, the 50% of Transfer Net Profits payable to the Shareholders pursuant to Section 7.19, shall be deemed payments received at the time actually or constructively released to the Shareholders. &nbsp;</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt">(d)</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:108pt; font-size:12pt"><U>Overall Payment Limitation</U>. &nbsp;Notwithstanding any other provision to the contrary, the maximum aggregate Purchase Price payable hereunder, exclusive of interest payments or original issue discount, shall be $48.5 million.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:4.5pt; text-indent:67.5pt; font-size:12pt">(e) </P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:4.5pt; text-indent:108pt; font-size:12pt"><U>Deferred Salary to Shareholders</U>. &nbsp;Upon the dismissal of MJ Research from Bankruptcy, MJ Research shall pay to each of the Shareholders his accrued but unpaid salary for the periods from March 29, 2004, which amount is agreed to be, in the aggregate, </P>
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<P style="margin:0pt" align=center>10</P>
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<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:4.5pt; font-size:12pt">$155,106.20, of which $93,567 is payable as compensation to John Finney and $61,539 is payable as compensation to Michael Finney.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:4.5pt; text-indent:72pt; font-size:12pt">2.2</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:4.5pt; text-indent:108pt; font-size:12pt"><U>Indemnification Escrow.</U></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt">(a)</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:130.5pt; font-size:12pt"><U>Indemnification Escrow Agreement</U>. &nbsp;In order to establish a procedure for the satisfaction of any claims by Buyer for indemnification pursuant to Section 11.3 hereof, the Shareholders shall enter into an escrow agreement, substantially in the form of <U>Exhibit 2.2(a)</U> hereto (the &#147;<U>Indemnification Escrow Agreement</U>&#148;), with Buyer pursuant to which the Indemnification Amount shall be held in escrow for a period ending thirty-six (36) months from the Closing Date; provided that the parties will confer and negotiate in good faith on the first anniversary date and the second anniversary date of the Closing to determine whether the amount remaining in the Indemnification Escrow can be reduced and distributed to the Shareholders before the end of the thirty-six month escrow period.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt">(b)</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:130.5pt; font-size:12pt"><U>Deliveries to Indemnification Escrow Agent</U>. At Closing, the Buyer will deliver to the Indemnification Escrow Agent (as such term is defined in the Indemnification Escrow Agreement) the Indemnification Amount.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; font-family:Times New Roman Bold; font-size:12pt" align=center><FONT FACE="Times New Roman Bold"><B>ARTICLE III.<BR>
<BR>
<A NAME="_Toc454280386"></A><A NAME="_Toc457913269"></A><A NAME="_Toc457913384"></A><A NAME="_Toc457913858"></A><A NAME="_Toc457914169"></A>POST-CLOSING MATTERS</B></FONT></P>
<A NAME="_Toc454280387"></A><A NAME="_Toc457913270"></A><A NAME="_Toc457913385"></A><A NAME="_Toc457913859"></A><A NAME="_Toc457914170"></A><P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:4.5pt; text-indent:67.5pt; font-size:12pt"><FONT FACE="Times New Roman">3.1</FONT></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:4.5pt; text-indent:108pt; font-size:12pt"><U>Post-Closing Calculations</U>.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt">(a)</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:108pt; font-size:12pt">As promptly as practicable after the Closing Date, Buyer will prepare in accordance with GAAP (as GAAP has been historically applied by the Subject Companies) and deliver to the Shareholders consolidated financial statements of the Subject Companies as of the close of business on the Closing Date (the &#147;<U>Closing Date Financial Statement</U>&#148;), including, without limitation, the related balance sheets (the &#147;<U>Closing Date Balance Sheet</U>&#148;) and the related income statements (the &#147;<U>Closing Date Income Statement</U>&#148;); provided that such Closing date Financial Statement, Closing Date Balance Sheet or Closing Date Income Statement shall be adjusted to delete the following liabilities or other obligations (i)&nbsp;amounts representing any Pre-May Applera Fees or the Post-April Applera Fees, (ii)&nbsp;any reserves or other entries representing any Applera Claims (it being understood
 that such adjustment shall not be made for accruals shown on the books of MJ Research for anticipated license fees from May 1, 2004 under the TCMA license agreement or the real time license agreement), (iii)&nbsp;amounts representing any Shareholder Loans listed on Schedule&nbsp;7.12, &nbsp;(iv)&nbsp;amounts relating to the Simson Litigation or the Senior Executive Dispute, if any, and (v)&nbsp;amounts to be paid by the Shareholders pursuant to this Agreement (including, without limitation, under their indemnification obligations pursuant to this Agreement) which represent items included on the Closing Date Financial Statements, (collectively, the &#147;<U>Adjustments</U>&#148;). &nbsp;In the event that the Shareholders shall have delivered, within thirty (30) days after the date on which the Closing Date Financial Statements are delivered to the Shareholders, a written notice to Buyer requesting that such Closing Date Financial Statements be audited, Buyer shall deliver as promptly as commercially reasonab
le a report of Deloitte &amp; Touche LLP, or such other nationally recognized firm of independent public accountants as may be chosen by Buyer (but not including Price Waterhouse Coopers or its successors and assigns) (&#147;<U>Buyer&#146;s Accountants</U>&#148;), the cost of which shall be borne by Buyer, which report shall note any changes that need to be made to the Closing Date Financial </P>
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<P style="margin:0pt" align=center>11</P>
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<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; font-size:12pt">Statements in order that such Closing Date Financial Statements present fairly in all material respects, in accordance with GAAP (as GAAP has been historically applied by the Subject Companies), the financial condition of such Subject Company as of the close of business on the Closing Date, as adjusted by the Adjustments. &nbsp;The Shareholders and a firm of independent public accountants designated by the Shareholders (the &#147;<U>Shareholders&#146; Accountants</U>&#148;) will be entitled to reasonable access during normal business hours to the relevant records and working papers of the Subject Companies, Buyer and Buyer&#146;s Accountants to aid in their review of the Closing Date Financial Statements. &nbsp;The Closing Date Financial Statements shall be deemed to be accepted by each of the Shareholders and shall be conclusive for the purposes of the adjustment described in Section 3.1(b) hereof with respect to the Subject Com
panies except to the extent, if any, that the Shareholders&#146; Accountants shall have delivered, within thirty (30) days after the date on which the Closing Date Financial Statements are delivered to the Shareholders or, in the event that the Shareholders have requested that the Closing Date Financial Statements be accompanied by a report of Buyer&#146;s Accountant, within thirty (30) days after the date on which such written report is delivered to the Shareholders, a written notice to Buyer stating each and every item to which the Shareholders take exception, specifying in detail the nature and extent of any such exception. &nbsp;If a change proposed by the Shareholders is disputed by Buyer, then the Shareholders and Buyer shall negotiate in good faith to resolve such dispute. &nbsp;If, after a period of thirty (30) days following the date on which the Shareholders give Buyer notice of any such proposed change, any such proposed change still remains disputed, then Buyer&#146;s Accountants and Shareholders
&#146; Accountants shall together choose an independent firm of public accountants of nationally recognized standing (the &#147;<U>Accounting Firm</U>&#148;) to resolve any remaining disputes. &nbsp;The Accounting Firm shall act as an arbitrator to determine, based solely on presentations by the Shareholders and Buyer, and not by independent review, only those issues still in dispute. &nbsp;The decision of the Accounting Firm shall be final and binding and shall be in accordance with the provisions of this Section 3.1(a). &nbsp;The fees and expenses of the Accounting Firm, if any, shall be paid equally by Buyer and the Shareholders; <U>provided</U>, <U>however</U>, that, if the Accounting Firm determines that either party&#146;s positions on all disputed issues are correct in all respects, then the other party shall pay the reasonable fees and expenses of the Accounting Firm in connection with the resolution of such disputes. &nbsp;For purposes of the remainder of this Agreement, &#147;Closing Date Financial
 Statements&#148;, &#147;Closing Date Balance Sheets&#148; and &#147;Closing Date Income Statements&#148; shall mean the Closing Date Financial Statements, Closing Date Balance Sheets and Closing Date Income Statements as modified by agreement of the parties, whether or not with the assistance of the Buyer&#146;s Accountants or the Shareholders&#146; Accountants or by the determinations of the Accounting Firm.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:72pt; font-size:12pt">&#147;<U>Closing Adjusted Net Worth</U>&#148; shall mean, with respect to the Subject Companies taken as a whole, the amount by which the total assets exceed the total liabilities of the Subject Companies in the aggregate, as set forth on the Closing Date Balance Sheet.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:72pt; font-size:12pt">In the event that the Closing Adjusted Net Worth is less than zero, the Shareholders shall pay to Buyer the amount by which the Closing Adjusted Net Worth is less than zero.</P>
<A NAME="_Toc454280388"></A><A NAME="_Toc457913271"></A><A NAME="_Toc457913386"></A><A NAME="_Toc457913860"></A><A NAME="_Toc457914171"></A><P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:4.5pt; text-indent:67.5pt; font-size:12pt">3.2</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:4.5pt; text-indent:103.5pt; font-size:12pt"><U>Closing Costs; Transfer Taxes</U>. &nbsp;The Shareholders shall be responsible for any stock transfer taxes and any sales, use or other taxes imposed by reason of the transfer of the capital stock of MJ GeneWorks to Buyer as provided hereunder and any deficiency, interest or penalty asserted with respect thereto.</P>
<P style="margin-top:0pt; margin-bottom:12pt"><BR>
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<P style="margin:0pt" align=center>12</P>
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<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:4.5pt; text-indent:72pt; font-size:12pt">3.3</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:4.5pt; text-indent:108pt; font-size:12pt"><U>The Deferred Purchase Price</U>.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt">(a)</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:108pt; font-size:12pt">From and after the Closing, Buyer shall properly account for and track the expenses and costs associated with the Applera Claims and the Post-April Applera Fees. &nbsp;The Shareholders shall promptly send Buyer all invoices, receipts or other documents relating to the Applera Claims and the Post-April Applera Fees and otherwise cooperate with the reasonable requests of Buyer in accounting for and keeping track of such expenses and costs.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt">(b)</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:108pt; font-size:12pt">As promptly as practicable after the final resolution of the Applera Litigation and payment in full settlement of the Applera Claims and the Post-April Applera Fees, but in any event within the latter of (w)&nbsp;ninety (90) days after the execution of a settlement agreement relating to the Applera Litigation, (x)&nbsp;if the settlement is contingent upon an action to be taken by Applera, upon satisfaction of such contingency, (y) if the settlement is contingent upon an action to be taken by Bio-Rad, upon the passage of a commercially reasonable period of time for the taking of such action, and (z)&nbsp;if the settlement is contingent upon an action to be taken by any party other than Applera or Bio-Rad, upon the passage of a commercially reasonable period of time, Buyer shall prepare and deliver to the Shareholders a statement (the &#147;<U>Deferred Purchase Price Statement</U>&#148;) indicating:</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:36pt; text-indent:72pt; font-size:12pt">(i)</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:36pt; text-indent:108pt; font-size:12pt">The total amount paid to fully settle the Applera Claims;</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:36pt; text-indent:72pt; font-size:12pt">(ii)</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:36pt; text-indent:108pt; font-size:12pt">The total amount paid to fully settle the Post-April Applera Fees; and</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:36pt; text-indent:72pt; font-size:12pt">(iii)</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:36pt; text-indent:108pt; font-size:12pt">Buyer&#146;s calculation of the Deferred Purchase Price pursuant to the formula set forth in Section 3.3(c) below.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt">(c)</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:108pt; font-size:12pt">The Deferred Purchase Price shall be calculated as follows:</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:36pt; text-indent:72pt; font-size:12pt">(i)</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:36pt; text-indent:108pt; font-size:12pt">if the sum of the Applera Claims and the Post-April Applera Fees in the aggregate (the &#147;<U>Aggregate Settlement Amount</U>&#148;) is equal to or less than $35 million, the Deferred Purchase Price shall be $15 million plus accrued interest on the Deferred Purchase Price from and after the Closing at the Applicable Federal Rate as defined in IRS Code Section&nbsp;1274(d); </P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:36pt; text-indent:72pt; font-size:12pt">(ii)</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:36pt; text-indent:108pt; font-size:12pt">if the Aggregate Settlement Amount is between $35 million and $50 million, the Deferred Purchase Price shall be an amount equal to the difference between $50 million and the Aggregate Settlement Amount, plus accrued interest on the Deferred Purchase Price from and after the Closing at the Applicable Federal Rate as defined in IRS Code Section&nbsp;1274(d); and</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:36pt; text-indent:72pt; font-size:12pt">(iii)</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:36pt; text-indent:108pt; font-size:12pt">if the Aggregate Settlement Amount is equal to or greater than $50 Million, the Deferred Purchase Price shall be zero. </P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; font-size:12pt">Promptly after the date of delivery of the Deferred Purchase Price Statement, Buyer shall deliver the Deferred Purchase Price, if any, to the Shareholders in cash by wire transfer of immediately available funds in the percentages set forth on Schedule 2.1(c) and to the accounts designated by the Shareholders set forth on Schedule 2.1(c).</P>
<P style="margin-top:0pt; margin-bottom:12pt"><BR>
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<P style="margin:0pt" align=center>13</P>
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<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; font-family:Times New Roman Bold; font-size:12pt" align=center><FONT FACE="Times New Roman Bold"><B>ARTICLE IV.<BR>
<BR>
<A NAME="_Toc454280390"></A><A NAME="_Toc457913273"></A><A NAME="_Toc457913388"></A><A NAME="_Toc457913862"></A><A NAME="_Toc457914173"></A>CLOSING</B></FONT></P>
<A NAME="_Toc454280391"></A><A NAME="_Toc457913274"></A><A NAME="_Toc457913389"></A><A NAME="_Toc457913863"></A><A NAME="_Toc457914174"></A><P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:4.5pt; text-indent:67.5pt; font-size:12pt"><FONT FACE="Times New Roman">4.1</FONT></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:4.5pt; text-indent:103.5pt; font-size:12pt"><U>Closing</U>. &nbsp;Upon the terms and subject to the conditions set forth herein, and subject to Section 12.1, the closing of the transactions contemplated herein (the &#147;<U>Closing</U>&#148;) shall be held at 10:00 a.m. local time on the first business day following the business day in which all of the conditions set forth in Articles VIII and IX are satisfied (the &#147;<U>Closing Date</U>&#148;) at the offices of Buyer, 1000 Alfred Nobel Drive, Hercules, California, unless the parties hereto otherwise agree.</P>
<A NAME="_Toc454280392"></A><A NAME="_Toc457913275"></A><A NAME="_Toc457913390"></A><A NAME="_Toc457913864"></A><A NAME="_Toc457914175"></A><P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:4.5pt; text-indent:67.5pt; font-size:12pt">4.2</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:4.5pt; text-indent:103.5pt; font-size:12pt"><U>Deliveries at Closing</U>.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt">(a)</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:108pt; font-size:12pt"><U>Stock Certificates</U>. &nbsp;To effect the Stock Purchase, the Shareholders shall, on the Closing Date, deliver to Buyer certificate(s) evidencing all of the issued and outstanding shares of capital stock of MJ GeneWorks, free and clear of any Encumbrances of any nature whatsoever, duly endorsed in blank for transfer or accompanied by stock powers duly executed in blank, together with evidence of the payment of any applicable stock transfer taxes. </P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt">(b)</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:108pt; font-size:12pt"><U>Certificates; Opinions</U>. &nbsp;At the Closing, Buyer and the Shareholders shall deliver the certificates, opinions of counsel and other items described in Articles VIII and IX. </P>
<A NAME="_Toc454280393"></A><A NAME="_Toc457913276"></A><A NAME="_Toc457913391"></A><A NAME="_Toc457913865"></A><A NAME="_Toc457914176"></A><P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:4.5pt; text-indent:67.5pt; font-size:12pt">4.3</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:4.5pt; text-indent:103.5pt; font-size:12pt"><U>Other Closing Transactions</U>.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt">(a)</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:108pt; font-size:12pt"><U>Payment of Closing Payment</U>. &nbsp;At the Closing, Buyer shall deliver the Closing Payment as provided in Section 2.1(c)(i). </P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt">(b)</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:108pt; font-size:12pt"><U>Payment of the Pre-May Applera Fees</U>. &nbsp;At the Closing, the Shareholders shall deliver to Buyer a statement which provides a complete and accurate accounting of all the Pre-May Applera Fees as provided in Schedule 4.3(b). &nbsp;The Shareholders shall jointly and severally indemnify, save and hold harmless Buyer and its affiliates and subsidiaries from and against any and all Damages incurred if the actual Pre-May Applera Fees required to be paid by Buyer or any Subject Company exceed $4,195,613.39 in the aggregate.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt">(c)</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:108pt; font-size:12pt"><U>Consulting Agreements</U>. &nbsp;At the Closing, Buyer shall enter into consulting agreements with each of the Shareholders, substantially in the form of <U>Exhibit&nbsp;4.3(c)</U> hereto (the &#147;<U>Consulting Agreements</U>&#148;), pursuant to Section 8.5.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt" align=justify>(d)</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:108pt; font-size:12pt" align=justify><U>Facility Side Letters</U>. &nbsp;At the Closing, the Shareholders, Buyer and MJ GeneWorks shall enter into the Facility Side Letters, substantially in the forms of Exhibit&nbsp;4.3(d) hereto (the &#147;<U>Facility Side Letters</U>&#148;), pursuant to Section&nbsp;9.7.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt">(e)</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:108pt; font-size:12pt"><U>Escrow Agreements</U>. &nbsp;At the Closing, the Buyer and Shareholders shall enter into the Indemnification Escrow Agreement, pursuant to Section 9.8, shall enter into the Severance Escrow Agreement, pursuant to Section 7.19, and, to the extent the parties have not already done so, shall enter into the agreement establishing the Litigation Escrow with Buyer pursuant to Section 7.9, and Buyer shall make the deposits (to the extent not already done) into the escrows thereunder.</P>
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<P style="margin:0pt" align=center>14</P>
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<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt">(f)</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:108pt; font-size:12pt"><U>Endorsement Allonges</U>. &nbsp;At the Closing, each of the Shareholders shall deliver to Buyer the Endorsement Allonges, pursuant to Section 9.13.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt">(g)</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:108pt; font-size:12pt"><U>Other Closing Transactions</U>. &nbsp;At the Closing, each of the parties shall take such other actions required hereby to be performed by it prior to or on the Closing Date, including, without limitation, satisfying the conditions set forth in Articles VIII and IX.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; font-family:Times New Roman Bold; font-size:12pt" align=center><FONT FACE="Times New Roman Bold"><B>ARTICLE V.<BR>
<BR>
<A NAME="_Toc454280395"></A><A NAME="_Toc457913278"></A><A NAME="_Toc457913393"></A><A NAME="_Toc457913867"></A><A NAME="_Toc457914178"></A>REPRESENTATIONS AND WARRANTIES OF THE SUBJECT<BR>
COMPANIES AND THE SHAREHOLDERS</B></FONT></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:72pt; font-size:12pt"><FONT FACE="Times New Roman">Each of the Shareholders and MJ GeneWorks hereby jointly and severally represents and warrants to Buyer that the following representations and warranties are, as of the date hereof, and will be, as of the Closing Date, true and correct:</FONT></P>
<A NAME="_Toc454280396"></A><A NAME="_Toc457913279"></A><A NAME="_Toc457913394"></A><A NAME="_Toc457913868"></A><A NAME="_Toc457914179"></A><P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:4.5pt; text-indent:67.5pt; font-size:12pt">5.1</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:4.5pt; text-indent:103.5pt; font-size:12pt"><U>Organization; Capitalization</U>. &nbsp;(a)&nbsp;&nbsp;Each Subject Company is duly organized, validly existing and in good standing under the laws of the state or country of its incorporation, has full corporate power and authority to conduct its business as it is currently being conducted and to own and lease its properties and assets. &nbsp;Such Subject Company is duly qualified to do business as a foreign corporation and is in good standing in each jurisdiction in which such qualification is necessary under the applicable law as a result of the conduct of its business or the ownership of its properties except where the failure to be so qualified and in good standing is not reasonably likely to have a Material Adverse Effect. &nbsp;Each jurisdiction in which such Subject Company is qualified to do business as a foreign corporation is listed on Schedule 5.1. &nbsp;Other than MJ Resear
ch, MJ BioWorks and MJ Japan and as set forth on Schedule 5.1, MJ GeneWorks does not own capital stock or other equity interests in any other Person.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt">(b)</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:108pt; font-size:12pt">The capitalization of each Subject Company is set forth on Schedule 5.1 hereto. &nbsp;All of such Subject Company&#146;s outstanding shares of capital stock are duly authorized, validly issued, fully paid and non-assessable. &nbsp;Except as set forth on Schedule 5.1, each Shareholder represents as to himself that he has title to all of the outstanding shares of capital stock set forth next to his name on Schedule 5.1 hereto free and clear of all Encumbrances with full right, power and authority to transfer such shares to Buyer. &nbsp;MJ GeneWorks represents that it has title to all of the issued and outstanding shares of capital stock of each of MJ Research, MJ BioWorks and MJ Japan set forth next to its name on Schedule 5.1 hereto free and clear of all Encumbrances. &nbsp;Except as set forth on Schedule 5.1, there are no outstanding subscriptions, calls, commitments, warrants or options for the purchase of sha
res of any capital stock or other equity securities of such Subject Company or any securities convertible into or exchangeable for shares of capital stock or other securities issued by such Subject Company, or any other commitments of any kind for the issuance of additional shares of capital stock or other securities issued by such Subject Company. &nbsp;Upon delivery to Buyer, the capital stock of MJ GeneWorks will be free and clear of all Encumbrances and shall be duly authorized, validly issued, fully paid and non-assessable. </P>
<A NAME="_Toc454280397"></A><A NAME="_Toc457913280"></A><A NAME="_Toc457913395"></A><A NAME="_Toc457913869"></A><A NAME="_Toc457914180"></A><P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:4.5pt; text-indent:72pt; font-size:12pt">5.2</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:4.5pt; text-indent:108pt; font-size:12pt"><U>Authorization</U>. &nbsp;MJ GeneWorks has all necessary corporate power and authority and has taken all corporate action necessary to execute and deliver this Agreement, to consummate the transactions contemplated hereby and to perform its obligations hereunder, and </P>
<P style="margin-top:0pt; margin-bottom:12pt"><BR>
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<P style="margin:0pt" align=center>15</P>
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<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:4.5pt; font-size:12pt">no other proceedings on the part of such Subject Company are necessary to authorize this Agreement and the transactions contemplated hereby. &nbsp;Each Shareholder represents as to himself that he has the requisite power and authority and has taken all action necessary to execute and deliver this Agreement, to consummate the transactions contemplated hereby and to perform his obligations hereunder, and no other proceedings on the part of such Shareholder are necessary to authorize this Agreement and the transactions contemplated hereby. &nbsp;This Agreement has been duly executed and delivered by MJ GeneWorks and the Shareholders and is a legal, valid and binding obligation of MJ GeneWorks and such Shareholders enforceable against each of them in accordance with its terms, except as such enforceability may be limited by (i) bankruptcy, insolvency, moratorium, reorganization and other similar laws affecting cre
ditors&#146; rights generally and (ii) the general principles of equity, regardless of whether asserted in a proceeding in equity or at law. &nbsp;All of the Shareholders have approved the terms of this Agreement and the transactions contemplated hereby.</P>
<A NAME="_Toc454280398"></A><A NAME="_Toc457913281"></A><A NAME="_Toc457913396"></A><A NAME="_Toc457913870"></A><A NAME="_Toc457914181"></A><P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:4.5pt; text-indent:72pt; font-size:12pt">5.3</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:4.5pt; text-indent:108pt; font-size:12pt"><U>Title to Assets</U>. &nbsp;Schedule 5.3 identifies all real and personal property with a book value in excess of $20,000 owned or leased by a Subject Company. &nbsp;Each Subject Company owns free and clear of any Encumbrances or, as set forth on Schedule 5.3, leases or has rights to use, the Assets set forth on Schedule 5.3, except for (i)&nbsp;minor liens or Encumbrances that in the aggregate are not substantial in amount, do not materially detract from the value of the Assets taken as a whole or interfere with the present use thereof and have not arisen other than in the ordinary course of business and (ii) Encumbrances specifically identified on Schedule 5.3. &nbsp;Except in respect of the issues raised in connection with the Applera Claims, the Assets include all assets necessary for the conduct of the business of each Subject Company in the ordinary course consistent with past practi
ce. &nbsp;The Assets have been maintained in accordance with normal industry practice, are in reasonable operating condition and repair (except for ordinary wear and tear). &nbsp;No Subject Company owns any real property.</P>
<A NAME="_Toc454280400"></A><A NAME="_Toc457913283"></A><A NAME="_Toc457913398"></A><A NAME="_Toc457913872"></A><A NAME="_Toc457914183"></A><P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt">5.4</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:108pt; font-size:12pt"><U>Intellectual Property Rights</U>.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt">(a)</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:108pt; font-size:12pt">&#147;<U>Intellectual Property Rights</U>&#148; shall mean, with respect to a Subject Company, (x) all of such Subject Company&#146;s registrations of trademarks and of other marks, trade names or other trade rights, and all pending applications for any such registrations and all of such Subject Company&#146;s patents and registered copyrights and all pending applications therefor; (y) all computer software used by such Subject Company in the conduct of its business and/or offered by such Subject Company or any joint venture in which such Subject Company has an interest to its customers for use in any material respect in connection with or as part of a product now or previously sold by such Subject Company or such joint venture; and (z) all other trademarks and other marks, trade names and other trade rights and all other trade secrets, designs, plans, specifications, and other intellectual property rights of a
ny kind of such Subject Company, whether or not registered, including, without limitation, all rights of such Subject Company to use the names MJ GeneWorks, MJ Research, MJ BioWorks and MJ&nbsp;Japan (and all trade names listed on Schedule 5.4); but in any event excluding all off-the-shelf software purchased from third parties. &nbsp;</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt">(b)</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:108pt; font-size:12pt">Schedule 5.4</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:108pt; font-size:12pt">(i)</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:144pt; font-size:12pt">contains detailed information (including where applicable the registration number and the date of registration or application for registration and the name in which registration was applied for) concerning (x) all of each Subject Company&#146;s registrations of </P>
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<P style="margin:0pt" align=center>16</P>
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<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; font-size:12pt">trademarks and of other marks, trade names or other trade rights, and all pending applications for any such registrations and all of such Subject Company&#146;s patents and registered copyrights and all pending applications therefor, and (y) all computer software used by a Subject Company in the conduct of its business and/or in which a Subject Company or any joint venture to which such Subject Company has an interest offers to its customers for use in any material respect in connection with or as part of a product now sold or sold within the last three (3) years by such Subject Company (excluding off-the-shelf software purchased from third parties) (&#147;Computer Software&#148;),</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:108pt; font-size:12pt">(ii)</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:144pt; font-size:12pt">identifies, to the knowledge of MJ GeneWorks and the Shareholders, all persons claiming to have a right to any intellectual property (excluding off-the-shelf software purchased from third parties) that a Subject Company uses in any material way in its business, and specifies whether such use is pursuant to license, sublicense, agreement, permission or over the objection of such person claiming such right other than in respect of material intellectual property rights at issue in connection with the Applera Claims,</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:108pt; font-size:12pt">(iii)</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:144pt; font-size:12pt">identifies, to the knowledge of MJ GeneWorks and the Shareholders, all persons claiming to have a right to receive a royalty or similar payment in respect to any Intellectual Property Rights pursuant to any contractual arrangements entered into by such Subject Company or otherwise, and</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:108pt; font-size:12pt">(iv)</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:144pt; font-size:12pt">lists all proceedings instituted against or notices received by a Subject Company alleging that such Subject Company&#146;s use of any Intellectual Property Rights infringes upon or otherwise violates any rights of a third party in or to such Intellectual Property Rights, which infringement or violation is reasonably likely to have a Material Adverse Effect.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt">(c)</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:108pt; font-size:12pt">Except as listed on Schedule 5.4, each Subject Company (x) owns, or possesses adequate and enforceable licenses or other rights to use, in each case free and clear of any pledges, claims, liens, charges, encumbrances and security interests of any kind or nature whatsoever, all Intellectual Property Rights associated with (i) products sold prior to the Closing by such Subject Company, (ii) the MiniCycler 2 and MiniOpticon, in each case as designed and intended to be marketed as of the Closing (the &#147;<U>New Products</U>&#148;) and (iii) Intellectual Property Rights used prior to the Closing by such Subject Company; and (y) is not interfering with or infringing upon or otherwise violating the rights of any third party with respect to the Intellectual Property Rights associated with (A) products sold prior to Closing by such Subject Company, (B)&nbsp;New Products and (C)&nbsp;Intellectual Property Rights used p
rior to the Closing by a Subject Company. &nbsp;</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt">(d)</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:108pt; font-size:12pt">Each Subject Company has taken all commercially reasonable actions to protect the Intellectual Property Rights of such Subject Company. &nbsp;To the knowledge of MJ GeneWorks and the Shareholders, the Intellectual Property Rights of each Subject Company that constitute confidential information are, and have at all times been, maintained on a confidential basis. &nbsp;To the knowledge of MJ GeneWorks and the Shareholders, except as otherwise described in Schedule 5.4, each Subject Company&#146;s confidential information has never been misappropriated by any third party.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:4.5pt; text-indent:72pt; font-size:12pt">(e)</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:4.5pt; text-indent:108pt; font-size:12pt">The most current version and all prior versions of all material Computer Software that such Subject Company has, during the last three (3) years, marketed or currently markets to any of its customers will, if the appropriate operating medium is provided, function </P>
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<P style="margin:0pt" align=center>17</P>
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<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:4.5pt; font-size:12pt">substantially in accordance with the specifications therefor, substantially as set forth in such Subject Company&#146;s written materials describing such Computer Software.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:4.5pt; text-indent:72pt; font-size:12pt">5.5</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:4.5pt; text-indent:108pt; font-size:12pt"><U>Facility Leases</U>. &nbsp;Schedule 5.5 lists all Facility Leases. &nbsp;Such Leases constitute all leases, subleases or other occupancy agreements pursuant to which a Subject Company occupies, uses, leases or subleases real property. &nbsp;Except as described on Schedule&nbsp;5.5, each Subject Company has in all material respects performed all the obligations required to be performed by it under the terms of the Facility Leases through the date hereof with respect to all leased property described in the Facility Leases of such Subject Company (the &#147;<U>Leased Property</U>&#148;), and each Subject Company enjoys peaceful and undisturbed possession of all the Leased Property, but subject to the terms of said leases and subleases. &nbsp;With respect to each such Facility Lease:</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:36pt; text-indent:72pt; font-size:12pt">(i)</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:36pt; text-indent:108pt; font-size:12pt">All Facilities leased or subleased thereunder by or from a Subject Company have received all material approvals of governmental authorities (including licenses and Permits) required in connection with the operation thereof that are of such a nature as to be obtainable by a tenant and not the fee owner/landlord, and have been operated and maintained by the Subject Companies, to the extent such operation and maintenance is the responsibility of the Subject Companies pursuant to the Facility Leases, in all material respects in accordance with applicable laws, rules and regulations;</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:36pt; text-indent:72pt; font-size:12pt">(ii)</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:36pt; text-indent:108pt; font-size:12pt">All Facilities leased or subleased thereunder by a Subject Company are supplied with utilities (including water, sewage, disposal, electricity, gas and telephone) and other services necessary for the Subject Companies&#146; operation of such Facilities as currently operated (or, in the case of a subleased property, the relevant subtenant has the responsibility to provide such services);</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:36pt; text-indent:72pt; font-size:12pt">(iii)</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:36pt; text-indent:108pt; font-size:12pt">To the knowledge of MJ GeneWorks and the Shareholders, the relevant Subject Companies, there is no pending, threatened condemnation proceedings with respect to any Leased Property or, to the knowledge of such Subject Company and its Shareholders, pending or threatened litigation or administrative actions relating to the Leased Property; </P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:36pt; text-indent:72pt; font-size:12pt">(iv)</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:36pt; text-indent:108pt; font-size:12pt">Except as set forth on Schedule 5.5, there are no subleases, licenses, options, rights, concessions or other agreements or arrangements, written or oral, to which any Subject Company is a party, granting to any Person the right to use or occupy such Leased Property or any portion thereof or interest therein; </P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:36pt; text-indent:72pt; font-size:12pt">(v)</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:36pt; text-indent:108pt; font-size:12pt">To the knowledge of MJ GeneWorks and the Shareholders, the improvements constructed by any Subject Company on the Leased Property are in good operating condition and repair without any material structural or mechanical defects of any kind, ordinary wear and tear excepted; and</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:36pt; text-indent:72pt; font-size:12pt">(vi)</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:36pt; text-indent:108pt; font-size:12pt">No Subject Company has received written notice of any special assessment relating to the Leased Property and to the knowledge of MJ GeneWorks and the Shareholders, there has been no pending or threatened special assessment.</P>
<A NAME="_Toc454280401"></A><A NAME="_Toc457913284"></A><A NAME="_Toc457913399"></A><A NAME="_Toc457913873"></A><A NAME="_Toc457914184"></A><P style="margin-top:0pt; margin-bottom:12pt"><BR>
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<P style="margin:0pt" align=center>18</P>
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<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:4.5pt; text-indent:72pt; font-size:12pt">5.6</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:4.5pt; text-indent:108pt; font-size:12pt"><U>Contracts and Commitments</U>. &nbsp;Schedule 5.6 lists the following Contracts to which a Subject Company is a party, or by which a Subject Company is bound to perform after the Closing Date:</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:36pt; text-indent:72pt; font-size:12pt">(i)</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:36pt; text-indent:108pt; font-size:12pt">any written arrangements (or group of related written arrangements) for the lease of personal property by a Subject Company providing for lease payments in excess of $25,000 per annum and that is not subject to cancellation on not more than 30 days&#146; notice by such Subject Company without penalty or increased cost; </P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:36pt; text-indent:72pt; font-size:12pt">(ii)</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:36pt; text-indent:108pt; font-size:12pt">any other written arrangement (or group of related written arrangements) involving aggregate payments by a Subject Company of more than $25,000 per annum and that is not subject to cancellation on not more than 30 days&#146; notice by such Subject Company without penalty or increased cost;</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:36pt; text-indent:72pt; font-size:12pt">(iii)</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:36pt; text-indent:108pt; font-size:12pt">any written arrangement (or group of related written arrangements) in excess of $25,000 per annum for the purchase or sale of raw materials, commodities, supplies, products or other property by a Subject Company or for the furnishing or receipt of services by a Subject Company, including, without limitation, any customer or vendor contracts and that is not subject to cancellation on not more than 30 days&#146; notice by such Subject Company without penalty or increased cost;</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:36pt; text-indent:72pt; font-size:12pt">(iv)</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:36pt; text-indent:108pt; font-size:12pt">any written arrangement (or group of related written arrangements) concerning a partnership or joint venture between a Subject Company and any other person; </P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:36pt; text-indent:72pt; font-size:12pt">(v)</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:36pt; text-indent:108pt; font-size:12pt">any written arrangement (or group of related written arrangements) under which it has created, incurred, assumed or guaranteed (or may create, incur, assume or guarantee) indebtedness (including capitalized lease obligations) of a Subject Company involving more than $25,000 in principal amount or under which is imposed (or may impose) upon a Subject Company a security interest or lien on any of its assets, tangible or intangible; </P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:36pt; text-indent:72pt; font-size:12pt">(vi)</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:36pt; text-indent:108pt; font-size:12pt">any written arrangement (or group of related written arrangements) obligating a Subject Company to maintain confidentiality or to refrain from competition or competitive arrangements; </P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:36pt; text-indent:72pt; font-size:12pt">(vii)</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:36pt; text-indent:108pt; font-size:12pt">any written arrangement (or group of related written arrangements) involving another Subject Company; </P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:36pt; text-indent:72pt; font-size:12pt">(viii)</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:36pt; text-indent:108pt; font-size:12pt">any Employee Plan of such Subject Company and any written arrangement with any of its directors, officers, shareholders or employees in the nature of a collective bargaining agreement, employment agreement or severance agreement;</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:36pt; text-indent:72pt; font-size:12pt">(ix)</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:36pt; text-indent:108pt; font-size:12pt">any written arrangement with any of its directors, officers, shareholders or employees or any member of any such person&#146;s immediate family (x) providing for the furnishing of material services by, (y) providing for the rental of material real or personal property from, or (z) otherwise requiring material payments to (other than for services as officers, directors or employees of such Subject Company), </P>
<P style="margin-top:0pt; margin-bottom:12pt"><BR>
<BR></P>
<P style="margin:0pt" align=center>19</P>
<P style="margin:0pt"><BR></P>
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<P style="margin:0pt"><BR></P>
<P style="margin:0pt; page-break-before:always"><BR></P>
<P style="margin:0pt"><BR></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:36pt; font-size:12pt">any such person or any corporation, partnership, trust or other entity in which any such person has a substantial interest as a shareholder, officer, director, trustee or partner;</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:36pt; text-indent:72pt; font-size:12pt">(x)</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:36pt; text-indent:108pt; font-size:12pt">any other written arrangement (or group of related written arrangements) either involving aggregate payments of more than $25,000 or not entered into in the ordinary course of business consistent with past practice; </P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:36pt; text-indent:72pt; font-size:12pt">(xi)</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:36pt; text-indent:108pt; font-size:12pt">any other written arrangement (or group of related written arrangements) under which the consequences of a default or termination is reasonably likely to have a Material Adverse Effect; </P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:36pt; text-indent:72pt; font-size:12pt">(xii)</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:36pt; text-indent:108pt; font-size:12pt">any material written agreement with any Personnel or other affiliates of a Subject Company; or</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:36pt; text-indent:72pt; font-size:12pt">(xiii)</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:36pt; text-indent:108pt; font-size:12pt">any oral contract, agreement or other arrangement with respect to any of the matters referred to in the foregoing clauses (i) through (xii) and any obligation (oral or written) to enter into any contract, agreement or other arrangement with respect to any of the matters referred to in the foregoing clauses (i) through (xi). </P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; font-size:12pt">Each Subject Company has delivered to Buyer a correct and complete copy of each written arrangement listed under the name of such Subject Company in Schedule 5.6 and has included as part of Schedule 5.6 a brief summary of any such oral contracts, agreements or other arrangements and any obligations (oral or written) to enter into any such contracts, agreements or other arrangements, in each case as described in clause&nbsp;(xiii) above. &nbsp;Except as set forth on Schedule 5.6, with respect to each written arrangement listed, (A) the written arrangement is legal, valid, binding, enforceable (except as such enforceability may be limited by (i)&nbsp;bankruptcy, insolvency, moratorium, reorganization and other similar laws affecting creditors&#146; rights generally and (ii) the general principles of equity, regardless of whether asserted in a proceeding in equity or at law) and in full force and effect; (B) the written arrangement 
will continue to be legal, valid binding, enforceable (except as such enforceability may be limited by (i) bankruptcy, insolvency, moratorium, reorganization and other similar laws affecting creditors&#146; rights generally and (ii) the general principles of equity, regardless of whether asserted in a proceeding in equity or at law) and in full force and effect on identical terms following the Closing Date; (C) there is no default by any Subject Company to any Contract, and, to the knowledge of MJ GeneWorks and the Shareholders, no default by any third party to any such Contract, in each case which default is reasonably likely to have a Material Adverse Effect; and (D) no Subject Company is in material breach or default, and to the knowledge of MJ GeneWorks or the Shareholders no other party is in material breach or default, under any written agreement, and to the knowledge of MJ GeneWorks or its Shareholders no event has occurred which with notice or lapse of time could constitute a material breach or defau
lt or permit termination, modification or acceleration under any written agreement.</P>
<A NAME="_Toc454280402"></A><A NAME="_Toc457913285"></A><A NAME="_Toc457913400"></A><A NAME="_Toc457913874"></A><A NAME="_Toc457914185"></A><P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:4.5pt; text-indent:72pt; font-size:12pt">5.7</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:4.5pt; text-indent:108pt; font-size:12pt"><U>No Conflict or Violation</U>. &nbsp;Except as set forth on Schedule 5.7, no consent, approval or authorization of, or declaration, filing or registration with, any governmental or regulatory authority is required to be made or obtained by a Subject Company in connection with the execution, delivery and performance of this Agreement and the consummation of the transactions contemplated hereby. &nbsp;Except as set forth on Schedule&nbsp;5.7, neither the execution and delivery of this Agreement nor the consummation of the transactions contemplated hereby will result in (a) a violation of or a conflict with any provision of the </P>
<P style="margin-top:0pt; margin-bottom:12pt"><BR>
<BR></P>
<P style="margin:0pt" align=center>20</P>
<P style="margin:0pt"><BR></P>
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<P style="margin:0pt; page-break-before:always"><BR></P>
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<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:4.5pt; font-size:12pt">articles of incorporation, certificate of incorporation or equivalent or bylaws of any Subject Company, (b) a breach of, or a default under any term or provision of, any contract, agreement, indebtedness, lease, commitment, license, franchise, permit, authorization or concession to which a Subject Company is a party, or the creation of any right of any party to accelerate, terminate or cancel, any contract, agreement, indebtedness, lease, commitment, license, franchise, permit, authorization or concession to which a Subject Company is a party, which breach, default or right is reasonably likely to have a Material Adverse Effect, (c) a violation by any Subject Company of any law, statute, rule, regulation, ordinance, code, order, judgment, writ, injunction, decree or award, or (d) an imposition of any Encumbrance, restriction or charge on the business of a Subject Company or on the Assets of a Subject Company w
hich is reasonably likely to have a Material Adverse Effect.</P>
<A NAME="_Toc454280404"></A><A NAME="_Toc457913287"></A><A NAME="_Toc457913402"></A><A NAME="_Toc457913876"></A><A NAME="_Toc457914187"></A><A NAME="_Toc454280403"></A><A NAME="_Toc457913286"></A><A NAME="_Toc457913401"></A><A NAME="_Toc457913875"></A><A NAME="_Toc457914186"></A><P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:4.5pt; text-indent:72pt; font-size:12pt">5.8</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:4.5pt; text-indent:108pt; font-size:12pt"><U>Financial Statements</U>. &nbsp;MJ GeneWorks has heretofore delivered to Buyer true and complete copies of the 2003 Financial Statements and the 2004 Interim Financial Statements. &nbsp;Except as set forth on Schedule 5.8, the 2003 Financial Statements (i) were prepared in accordance with GAAP consistently applied throughout the periods indicated, (ii)&nbsp;are in accordance with the Books and Records of MJ GeneWorks and its Subsidiaries, and (iii)&nbsp;present fairly in all material respects, as of the respective dates thereof or the periods covered thereby, as applicable, the financial position, shareholder&#146;s equity, cash flow and results of operations of MJ GeneWorks and its Subsidiaries. &nbsp;Except as set forth on Schedule 5.8, the 2004 Interim Financial Statements (a)&nbsp;were prepared consistent with past practice for such statements, and (b)&nbsp;are in accordance with the 
Books and Records of MJ GeneWorks and its Subsidiaries.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt">5.9</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:108pt; font-size:12pt"><U>Absence Of Certain Changes Or Events</U>. &nbsp;Except as set forth on Schedule&nbsp;5.9 or as otherwise reflected in the 2004 Interim Financial Statements, since the 2003 Balance Sheet Date there has not been any:</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt">(a)</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:108pt; font-size:12pt">Reserved;</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt">(b)</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:108pt; font-size:12pt">(i) except for normal periodic increases in the ordinary course of business consistent with past practice, increase in the compensation payable or to become payable by a Subject Company to any of its officers, employees, former employees or agents (collectively, &#147;Personnel&#148;), (ii) grant, payment or accrual, contingent or otherwise, for or to the credit of any of the Personnel with respect to any bonus, incentive compensation, service award or other like benefit, (iii) adoption, creation or amendment of any Employee Plan of such Subject Company, (iv)&nbsp;employment agreement (written or verbal) made by such Subject Company to which such Subject Company is a party or (v) other change in employment terms for any of such Subject Company&#146;s officers, employees or agents;</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt">(c)</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:108pt; font-size:12pt">sale, lease, assignment or transfer of any of the material Assets of such Subject Company, other than to persons that are not affiliates for fair consideration and in the ordinary course consistent with past practice; cancellation, compromise, waiver or release of any rights or claim (or series of related rights or claims) either (i) involving an affiliate of such Subject Company, (ii) involving more than $50,000, or (iii) outside the ordinary course of business consistent with past practice, in each case except in respect of matters relating to the Applera Claims as disclosed to Buyer; </P>
<P style="margin-top:0pt; margin-bottom:12pt"><BR>
<BR></P>
<P style="margin:0pt" align=center>21</P>
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<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt">(d)</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:108pt; font-size:12pt">amendment, cancellation or termination of any Contract, license or other instrument (but not including purchase orders) (i) involving payments in excess of $10,000 each, (ii) involving payments in excess of $50,000 in the aggregate, or (iii) the amendment, cancellation or termination of which is reasonably likely to have a Material Adverse Effect; </P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt">(e)</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:108pt; font-size:12pt">capital expenditure or the execution of any Lease, Contract, license, sublease or sublicense (or series of related Contracts, Leases, subleases, licenses and sublicenses) or any incurring of liability therefor (i) involving payments in excess of $10,000 each, (ii) involving payments in excess of $50,000 in the aggregate, or (iii) outside the ordinary course of business consistent with past practice;</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt">(f)</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:108pt; font-size:12pt">delay or failure to repay when due any material obligation of such Subject Company;</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt">(g)</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:108pt; font-size:12pt">failure to use commercially reasonable efforts to operate the business of each Subject Company in the ordinary course consistent with past practice so as to preserve the business intact, to keep available to Buyer the services of Personnel, and to preserve for Buyer the goodwill of such Subject Company&#146;s suppliers, customers, distributors and others having business relations with it;</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt">(h)</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:108pt; font-size:12pt">material change in accounting methods or practices by such Subject Company;</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt">(i)</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:108pt; font-size:12pt">material revaluation by such Subject Company of any of the Assets of such Subject Company, including without limitation, writing off notes or accounts receivable other than in the ordinary course of business consistent with past practice;</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt">(j)</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:108pt; font-size:12pt">damage, destruction or loss (whether or not covered by insurance) that has a Material Adverse Effect or that is reasonably likely to have a Material Adverse Effect;</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt">(k)</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:108pt; font-size:12pt">mortgage, pledge or other encumbrance of any of the material Assets of such Subject Company other than in the ordinary course of business consistent with past practice;</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt">(l)</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:108pt; font-size:12pt">any declaration, setting aside for payment or payment of any dividend or distribution in respect of any capital stock of any Subject Company or any redemption, purchase, or other acquisition of any of such Subject Company&#146;s equity securities or any bonus, fee or other payment, or any other transfer of the Assets to or on behalf of any shareholder of such Subject Company, any affiliate of such Subject Company or any affiliate of any shareholder, including, but not limited to, any payment of principal of or interest on any debt owed to any such shareholder or affiliate or any payment of a bonus, fee or other payment to any such shareholder or affiliate as an employee of such Subject Company except in the ordinary course of business consistent with past practice;</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt">(m)</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:108pt; font-size:12pt">issuance by a Subject Company of, or commitment of such Subject Company to issue, any shares of stock or other equity securities or obligations or securities convertible into or exchangeable for shares of stock or other equity securities;</P>
<P style="margin-top:0pt; margin-bottom:12pt"><BR>
<BR></P>
<P style="margin:0pt" align=center>22</P>
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<P style="margin:0pt; page-break-before:always"><BR></P>
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<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt">(n)</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:108pt; font-size:12pt">indebtedness incurred by any Subject Company for borrowed money or any commitment to borrow money entered into by such Subject Company, or any loans or guarantees made or agreed to be made by such Subject Company other than to non-affiliates in the ordinary course of business consistent with past practice;</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt">(o)</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:108pt; font-size:12pt">liabilities involving $50,000 or more or otherwise material to the business of such Subject Company except in the ordinary course of business and consistent with past practice, or any increase or change in any assumptions underlying or methods of calculating any bad debt, contingency or other reserves;</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt">(p)</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:108pt; font-size:12pt">payment, discharge or satisfaction of any material liabilities other than the payment, discharge or satisfaction in the ordinary course of business and consistent with past practice of liabilities reflected or reserved against on the 2003 Balance Sheets or incurred in the ordinary course of business and consistent with past practice since the 2003 Balance Sheet Date;</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt">(q)</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:108pt; font-size:12pt">acceleration, termination, modification, cancellation or threatened termination or cancellation of any Contract to which such Subject Company is a party or by which such Subject Company is bound and which would have a Materially Adverse Effect;</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt">(r)</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:108pt; font-size:12pt">capital investment in, any loan to, or any acquisition of the securities or assets of any other person (i) involving an affiliate of such Subject Company (except investments, loans or acquisitions or the securities or assets of another Subject Company), (ii)&nbsp;involving more than $25,000 in the aggregate, or (iii) outside the ordinary course of business consistent with past practice;</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt">(s)</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:108pt; font-size:12pt">grant of any material license or sublicense of any rights under or with respect to any Intellectual Property Rights of such Subject Company except in the ordinary course of business consistent with past practice;</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt">(t)</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:108pt; font-size:12pt">loan to, or other material agreement with any Personnel of a Subject Company outside the ordinary course of business consistent with past practice giving rise to any claim or right on the part of the person against it;</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt">(u)</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:108pt; font-size:12pt">charitable or other capital contribution made or pledged by such Subject Company in an aggregate amount in excess of $25,000;</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt">(v)</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:108pt; font-size:12pt">payment by any Subject Company of any expenses relating to the transactions contemplated by this Agreement, including, without limitation, the payment of the fees and expenses of any professionals engaged in connection with the transactions contemplated by this Agreement;</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt">(w)</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:108pt; font-size:12pt">agreement (either oral or written) by a Subject Company or any of its Personnel on behalf of a Subject Company to do any of the foregoing; or</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt">(x)</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:108pt; font-size:12pt">other event or condition of any character which is reasonably likely to have, in any one case or in the aggregate, a Material Adverse Effect, or any event or condition (other than events or conditions affecting the economy generally) known to MJ GeneWorks or the Shareholders which is reasonably likely to have, in any one case or in the aggregate, a Material Adverse Effect in the future.</P>
<A NAME="_Toc454280405"></A><A NAME="_Toc457913288"></A><A NAME="_Toc457913403"></A><A NAME="_Toc457913877"></A><A NAME="_Toc457914188"></A><P style="margin-top:0pt; margin-bottom:12pt"><BR>
<BR></P>
<P style="margin:0pt" align=center>23</P>
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<P style="margin:0pt; page-break-before:always"><BR></P>
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<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:4.5pt; text-indent:72pt; font-size:12pt">5.10</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:4.5pt; text-indent:108pt; font-size:12pt"><U>Liabilities</U>. &nbsp;Except as set forth on Schedule 5.10 or otherwise accounted for on the 2004 Interim Financial Statements, and except in respect of the Litigation Matters, no Subject Company has any liabilities or obligations (absolute, accrued, contingent or otherwise) except (i) liabilities that are reflected and reserved against on the 2004 Interim Financial Statements, and (ii) liabilities incurred since the 2004 Interim Financial Statement in the ordinary course of business consistent with past practice and in accordance with this Agreement (none of which relates to any breach of contract, breach of warranty, tort, infringement or violation of law or arose out of any complaint, action, suit or proceeding (but not including any issues relating to the Litigation Matters) which individually or in the aggregate is reasonably likely to have a Material Adverse Effect).</P>
<A NAME="_Toc454280406"></A><A NAME="_Toc457913289"></A><A NAME="_Toc457913404"></A><A NAME="_Toc457913878"></A><A NAME="_Toc457914189"></A><P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:4.5pt; text-indent:72pt; font-size:12pt">5.11</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:4.5pt; text-indent:108pt; font-size:12pt"><U>Accounts Receivable</U>. &nbsp;Except as set forth on Schedule 5.11, the accounts receivable reflected on the 2003 Balance Sheet, and all accounts receivable arising since the 2003 Balance Sheet Date, represent bona fide claims against debtors for sales made, services performed or other charges arising on or before the date hereof, and all the goods delivered and services performed that gave rise to said accounts were delivered or performed in accordance with the applicable orders, Contracts or customer requirements, except to the extent of any reserve with respect thereto set forth on the 2004 Interim Financial Statements. &nbsp;No accounts receivable reflected on the 2004 Interim Financial Statements shall be subject to material defenses, counterclaims or rights of setoff and shall be fully collectible in the ordinary course of business without cost to Buyer in collection efforts theref
or other than consistent with past practice except to the extent of any reserve with respect thereto set forth on the 2004 Interim Financial Statements.</P>
<A NAME="_Toc454280407"></A><A NAME="_Toc457913290"></A><A NAME="_Toc457913405"></A><A NAME="_Toc457913879"></A><A NAME="_Toc457914190"></A><P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:4.5pt; text-indent:72pt; font-size:12pt">5.12</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:4.5pt; text-indent:108pt; font-size:12pt"><U>Inventories</U>. &nbsp;The values at which the Inventories are shown on the 2003 Balance Sheet have been determined in accordance with the normal valuation policy of MJ GeneWorks and its Subsidiaries, consistently applied, and in accordance with GAAP. &nbsp;Except as set forth on Schedule 5.12, the Inventories (and items of Inventory acquired or manufactured subsequent to the 2003 Balance Sheet Date) consist only of items of quality and quantity commercially usable and salable in the ordinary course of business, except for any items of obsolete material or material below standard quality, all of which have been written down to realizable market value, or for which adequate reserves have been provided on the 2003 Balance Sheet or on the 2004 Interim Financial Statements, and the current quantities of all Inventories are reasonable in the current circumstances of the business of MJ GeneWork
s and its Subsidiaries.</P>
<A NAME="_Toc454280408"></A><A NAME="_Toc457913291"></A><A NAME="_Toc457913406"></A><A NAME="_Toc457913880"></A><A NAME="_Toc457914191"></A><P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:4.5pt; text-indent:72pt; font-size:12pt">5.13</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:4.5pt; text-indent:108pt; font-size:12pt"><U>Litigation</U>. &nbsp;Except as set forth on Schedule 5.13 and except for the Litigation Matters, there is no charge, complaint, action, order, writ, injunction, judgment or decree outstanding or claim, suit, litigation, proceeding, labor dispute, arbitral action or, to the knowledge of MJ GeneWorks or the Shareholders, investigation (collectively, &#147;<U>Actions</U>&#148;) pending or, to the knowledge of MJ GeneWorks or the Shareholders, threatened against any Subject Company or Shareholder relating to or affecting (i) any Subject Company or any material Assets of any Subject Company or the material operation of the business of any Subject Company as currently operated or as such Subject Company proposes, prior to the Closing Date, to presently operate, (ii) any Employee Plan of any Subject Company or any trust or other funding instrument, fiduciary or administrator thereof or (iii) th
e transactions contemplated by this Agreement, any of which is reasonably likely to have a Material Adverse Effect. &nbsp;No Subject Company is in default with respect to any judgment, order, writ, injunction </P>
<P style="margin-top:0pt; margin-bottom:12pt"><BR>
<BR></P>
<P style="margin:0pt" align=center>24</P>
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<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:4.5pt; font-size:12pt">or decree of any court or governmental agency, and there are no unsatisfied judgments against such Subject Company or the business of such Subject Company that would have a Materially Adverse Effect. &nbsp;Except for the Litigation Matters, there is not a reasonable likelihood of an adverse determination of any pending Actions that would, individually or in the aggregate, have a Material Adverse Effect. &nbsp;No Action pending or, to the knowledge of MJ GeneWorks or the Shareholders, threatened is covered by insurance. &nbsp;To the knowledge of the Shareholders, the Applera Litigation could have been settled by them and by the Subject Companies as of May 27, 2004 for $80 million or less in total Applera Claims and Post-April Applera Fees.</P>
<A NAME="_Toc454280409"></A><A NAME="_Toc457913292"></A><A NAME="_Toc457913407"></A><A NAME="_Toc457913881"></A><A NAME="_Toc457914192"></A><P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:4.5pt; text-indent:72pt; font-size:12pt">5.14</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:4.5pt; text-indent:108pt; font-size:12pt"><U>Labor Matters</U>. &nbsp;No Subject Company is a party to any labor agreement with respect to its employees with any labor organization, group or association. &nbsp;No Subject Company has experienced any attempt by organized labor or its representatives to make such Subject Company conform to demands of organized labor relating to its employees or to enter into a binding agreement with organized labor that would cover the employees of such Subject Company. &nbsp;Each Subject Company is in material compliance with all applicable laws respecting employment practices, terms and conditions of employment and wages and hours and, to the knowledge of MJ GeneWorks and the Shareholders, is not and has not engaged in any unfair labor practice. &nbsp;There is no unfair labor practice charge or complaint against such Subject Company pending before the National Labor Relations Board or any other gover
nmental agency and to which MJ GeneWorks or the Shareholders have notice arising out of such Subject Company&#146;s activities, and to the knowledge of MJ GeneWorks and the Shareholders, there are no facts or information that would give rise thereto; there is no labor strike or labor disturbance pending or threatened against any Subject Company nor is any grievance currently being asserted; and no Subject Company has ever experienced a work stoppage or other labor difficulty.</P>
<A NAME="_Toc454280410"></A><A NAME="_Toc457913293"></A><A NAME="_Toc457913408"></A><A NAME="_Toc457913882"></A><A NAME="_Toc457914193"></A><P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:4.5pt; text-indent:72pt; font-size:12pt">5.15</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:4.5pt; text-indent:108pt; font-size:12pt"><U>Compliance with Law; Permits</U>. &nbsp;Each Subject Company and the conduct of the business of such Subject Company are in compliance with all applicable laws, statutes, ordinances, rules and regulations promulgated, or judgments, decisions or orders entered, by any federal, state, local, or foreign court or governmental agency, department, authority or instrumentality relating to the Assets or the business of such Subject Company, except where the failure to comply is not reasonably likely to have a Material Adverse Effect. &nbsp;Except as disclosed on Schedule 5.15, no Subject Company has received any written notice to the effect that, or otherwise been advised by counsel or other advisors to the Company in writing that, it is not in compliance with any of such statutes, regulations, orders, ordinances or other laws for which corrective action has not been taken and completed, and such
 Subject Company does not anticipate that any currently existing circumstances are reasonably likely to result in violations of any such regulations which is reasonably likely to have, in any one case or in the aggregate, a Material Adverse Effect. &nbsp;Such Subject Company has all Permits, authorizations and approvals, each of which is currently valid and in full force and effect, the lack of which is reasonably likely to have a Material Adverse Effect, which Permits are set forth on Schedule&nbsp;5.15 and which licenses, authorizations and approvals are set forth on Schedule&nbsp;5.7. &nbsp;Without limiting the generality of the preceding representation and warranty, no Subject Company has (i) made or agreed to make any contribution, payment or gift to any government official, employee, or agent where either the contribution, payment or gift or the purpose thereof was illegal under the laws of any federal, state, local or foreign jurisdiction, (ii) established or maintained any fund or asset unrecorded on
 the Books and Records of the Subject Companies for any purpose or made any false entries on the Books and Records of such Subject Company for any reason and </P>
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<BR></P>
<P style="margin:0pt" align=center>25</P>
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<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:4.5pt; font-size:12pt">(iii)&nbsp;made or agreed to make any political contribution, or reimbursed any political gift or contribution made by any other person, to any candidate for federal, state, local or foreign public office. &nbsp;In addition, each Subject Company (a) has complied with all applicable laws relating to employee and civil rights and relating to the employment opportunities, except where the failure to comply is not reasonably likely to have a Material Adverse Effect, (b) filed in a timely manner all material reports, documents it was required to file (and the information contained therein was correct and complete in all material respects) under all applicable laws, (c) has possession of all material records and documents it was required to retain under all applicable laws and (d) has not violated or received a notice or charge asserting any violation of the Sherman Act, the Clayton Act, the Robinson-Patman Act, the
 Federal Trade Commission Act, the Securities Act of 1933 or the Securities Exchange Act of 1934 (or any analogous foreign antitrust, trade regulation or securities laws, rules or regulations), each as amended, except where such violation is not reasonably likely to have a Material Adverse Effect.</P>
<A NAME="_Toc454280411"></A><A NAME="_Toc457913294"></A><A NAME="_Toc457913409"></A><A NAME="_Toc457913883"></A><A NAME="_Toc457914194"></A><P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:4.3pt; text-indent:72pt; font-size:12pt">5.16</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:4.3pt; text-indent:108.2pt; font-size:12pt"><U>Tax Matters</U>.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt">(a)</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:108pt; font-size:12pt"><U>Filing of Tax Returns</U>. &nbsp;Each Subject Company has timely filed with the appropriate taxing or other governmental authorities all returns in respect of Taxes (including, without limitation, information returns and other information) required to be filed through the date hereof. &nbsp;The returns and information filed are complete, correct and accurate in all material respects. &nbsp;Each Subject Company has delivered to Buyer complete and accurate copies of each Subject Company&#146;s federal, state and local tax returns for the years 2002 and 2003 or such lesser number of years as such Subject Company shall have been in existence. &nbsp;As of the date hereof, no Subject Company has filed any federal, state or local tax returns for the year 2004.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt">(b)</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:108pt; font-size:12pt"><U>Payment of Taxes</U>. &nbsp;All Taxes for which such Subject Company is or may be liable, in respect of periods or portions thereof ending on or before the Closing Date, shall have been paid, or an adequate reserve (in conformity with GAAP) has been established therefor, and such Subject Company has no material liability for Taxes in excess of the amounts so paid or reserves so established. &nbsp;All Taxes that such Subject Company has been required to collect or withhold have been duly collected or withheld and, to the extent required when due, have been or will be duly paid to the proper taxing authority.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt">(c)</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:108pt; font-size:12pt"><U>Audit History</U>. &nbsp;Except as set forth on Schedule 5.16, no deficiencies for Taxes of a Subject Company have been claimed, proposed or assessed by any taxing or other governmental authority. &nbsp;Except as set forth on Schedule 5.16, there are no pending or, to the knowledge of MJ GeneWorks or the Shareholders, threatened audits, investigations or claims for or relating to any liability in respect of Taxes of a Subject Company, and there are no matters under discussion with any governmental authorities with respect to Taxes of a Subject Company. &nbsp;Except as set forth on Schedule 5.16, no Subject Company has been notified that any taxing authority intends to audit a return for any other period. &nbsp;Except as set forth on Schedule 5.16, no extension of a statute of limitations relating to Taxes is in effect with respect to any Subject Company.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt">(d)</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:108pt; font-size:12pt"><U>Tax Elections</U>.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:36pt; text-indent:72pt; font-size:12pt">(i)</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:36pt; text-indent:108pt; font-size:12pt">All elections with respect to Taxes affecting such Subject Company as of the date hereof are set forth on Schedule 5.16.</P>
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<P style="margin:0pt" align=center>26</P>
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<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:36pt; text-indent:72pt; font-size:12pt">(ii)</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:36pt; text-indent:108pt; font-size:12pt">No Subject Company has made an election, and is not required, to treat any Asset of such Subject Company as owned by another person or as tax-exempt bond financed property or tax-exempt use property within the meaning of Section 168 of the Code or under any comparable state or local income tax or other tax provision. </P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:36pt; text-indent:72pt; font-size:12pt">(iii)</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:36pt; text-indent:108pt; font-size:12pt">No Subject Company is a party to or bound by any binding tax sharing, tax indemnity or tax allocation agreement or other similar arrangement with any other party. </P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:36pt; text-indent:72pt; font-size:12pt">(iv)</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:36pt; text-indent:108pt; font-size:12pt">No Subject Company has filed a consent pursuant to the collapsible corporation provisions of Section 341(f) of the Code (or any corresponding provision of state, foreign or local law) or agreed to have Section 341(f)(2) of the Code (or any corresponding provision of state, foreign or local law) apply to any disposition of any asset owned by it.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt">(e)</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:108pt; font-size:12pt"><U>Additional Representations</U>.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:36pt; text-indent:72pt; font-size:12pt">(i)</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:36pt; text-indent:108pt; font-size:12pt">There are no liens for Taxes (other than for current Taxes not yet due and payable) upon the Assets of any Subject Company.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:36pt; text-indent:72pt; font-size:12pt">(ii)</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:36pt; text-indent:108pt; font-size:12pt">Except as set forth in Schedule 5.16, no Subject Company has ever been a member of an affiliated group of corporations, within the meaning of Section 1504 of the Code.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:36pt; text-indent:72pt; font-size:12pt">(iii)</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:36pt; text-indent:108pt; font-size:12pt">No Subject Company has agreed to make, nor is required to make, any adjustment under Section 481(a) of the Code by reason of a change in accounting method or otherwise.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:36pt; text-indent:72pt; font-size:12pt">(iv)</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:36pt; text-indent:108pt; font-size:12pt">No Subject Company is a party to any agreement, contract, arrangement or plan that has resulted or would result, separately or in the aggregate, in the payment of any &#147;excess parachute payments&#148; within the meaning of Section 280G of the Code.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:36pt; text-indent:72pt; font-size:12pt">(v)</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:36pt; text-indent:108pt; font-size:12pt">No Subject Company is a party to any joint venture, partnership, or other arrangement or contract which is reasonably likely to be treated as a partnership for federal income tax purposes.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:36pt; text-indent:72pt; font-size:12pt">(vi)</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:36pt; text-indent:108pt; font-size:12pt">Each Subject Company other than MJ Japan is an &#147;S corporation&#148; (within the meaning of Section 1361(a)(1) of the Code) for federal income tax purposes and has been so treated continuously since the time of its organization.</P>
<A NAME="_Toc454280412"></A><A NAME="_Toc457913295"></A><A NAME="_Toc457913410"></A><A NAME="_Toc457913884"></A><A NAME="_Toc457914195"></A><P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:4.5pt; text-indent:72pt; font-size:12pt">5.17</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:4.5pt; text-indent:108pt; font-size:12pt"><U>Severance Arrangements</U>. &nbsp;Except as set forth on Schedule 5.17, no Subject Company has entered into any severance or similar arrangement in respect of any Personnel of such Subject Company that will result in any obligation (absolute or contingent) of Buyer, such Subject Company or other person to make any payment to any such Personnel following termination of employment. </P>
<A NAME="_Toc454280413"></A><A NAME="_Toc457913296"></A><A NAME="_Toc457913411"></A><A NAME="_Toc457913885"></A><A NAME="_Toc457914196"></A><P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:4.5pt; text-indent:72pt; font-size:12pt">5.18</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:4.5pt; text-indent:108pt; font-size:12pt"><U>Insurance</U>. &nbsp;Schedule 5.18 contains a materially complete and accurate list of all policies or binders of fire, liability, title, worker&#146;s compensation and other forms of </P>
<P style="margin-top:0pt; margin-bottom:12pt"><BR>
<BR></P>
<P style="margin:0pt" align=center>27</P>
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<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:4.5pt; font-size:12pt">insurance (showing as to each policy or binder the carrier, policy number, coverage limits, expiration dates, annual premiums and a general description of the type of coverage provided) maintained by such Subject Company on the business, the Assets or the Personnel of such Subject Company. &nbsp;All of such policies are consistent with industry practices and are sufficient for compliance with all requirements of law and of all Contracts to which such Subject Company is a party, except where the failure to comply is not reasonably likely to have a Material Adverse Effect. &nbsp;No Subject Company is in default under any of such policies or binders, and no Subject Company has failed to give any notice or to present any material claim under any such policy or binder in a due and timely fashion. There are no facts known to MJ GeneWorks or the Shareholders upon which an insurer might be justified in reducing covera
ge or increasing premiums on existing policies or binders. &nbsp;There are no outstanding unpaid claims under any such policies or binders. &nbsp;Such policies and binders provide sufficient coverage, in the reasonable opinion of such Subject Company and the Shareholders, for the risks insured against, are in full force and effect on the date hereof and shall be kept in full force and effect by such Subject Company through the Closing Date.</P>
<A NAME="_Toc454280414"></A><A NAME="_Toc457913297"></A><A NAME="_Toc457913412"></A><A NAME="_Toc457913886"></A><A NAME="_Toc457914197"></A><P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:4.5pt; text-indent:72pt; font-size:12pt">5.19</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:4.5pt; text-indent:108pt; font-size:12pt"><U>Purchase Commitments and Outstanding Bids</U>. &nbsp;As of June 16, 2004, except as listed on Schedule&nbsp;5.19, there are no accepted and unfulfilled orders for the sale of merchandise or services entered into by a Subject Company in excess of $50,000 per customer, all of which orders were made in the ordinary course of business consistent with past practice. &nbsp;In addition, as of June 16, 2004, except as listed on Schedule&nbsp;5.19, there are no Contracts or commitments for the purchase of supplies entered into by a Subject Company in excess of $50,000 per vendor or supplier, all of which Contracts and commitments were made in the ordinary course of business consistent with past practice. &nbsp;As of the date of this Agreement, there are no claims against such Subject Company known to MJ GeneWorks or the Shareholders to return in excess of an aggregate of $100,000 of merchandise by
 reason of alleged overshipments, defective merchandise or otherwise, or of merchandise in the hands of customers under an understanding that such merchandise would be returned. &nbsp;No outstanding purchase or outstanding lease (excluding real property leases) commitment of a Subject Company currently is in excess of the normal, ordinary and usual requirements of its business consistent with past practices. &nbsp;Except as set forth on Schedule 5.19, there is no outstanding bid, proposal, Contract or unfilled order of such Subject Company that is reasonably likely to have, if accepted by the other party thereto, a Material Adverse Effect.</P>
<A NAME="_Toc454280415"></A><A NAME="_Toc457913298"></A><A NAME="_Toc457913413"></A><A NAME="_Toc457913887"></A><A NAME="_Toc457914198"></A><P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:4.5pt; text-indent:72pt; font-size:12pt">5.20</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:4.5pt; text-indent:108pt; font-size:12pt"><U>Reserved</U>.</P>
<A NAME="_Toc454280416"></A><A NAME="_Toc457913299"></A><A NAME="_Toc457913414"></A><A NAME="_Toc457913888"></A><A NAME="_Toc457914199"></A><P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:4.5pt; text-indent:72pt; font-size:12pt">5.21</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:4.5pt; text-indent:108pt; font-size:12pt"><U>Customers and Suppliers</U>. &nbsp;Schedule 5.21 contains a complete and accurate list of (i) all customers of such Subject Company during such Subject Company&#146;s last fiscal year, showing the approximate total sales by such Subject Company to each such customer during such fiscal year, and (ii) all suppliers of such Subject Company from whom such Subject Company has made aggregate purchases in excess of $50,000 during such Subject Company&#146;s last fiscal year, showing the approximate total purchases by such Subject Company from each such supplier during such fiscal year. &nbsp;To the knowledge of MJ GeneWorks and the Shareholders, since the 2003 Balance Sheet Date, there has been no adverse change in the business relationship with any material customer or supplier named in Schedule 5.21 and no threat or indication that any such change is reasonably foreseeable other than in connec
tion with the Bankruptcy Case as described on Schedule 5.9.</P>
<A NAME="_Toc454280417"></A><A NAME="_Toc457913300"></A><A NAME="_Toc457913415"></A><A NAME="_Toc457913889"></A><A NAME="_Toc457914200"></A><P style="margin-top:0pt; margin-bottom:12pt"><BR>
<BR></P>
<P style="margin:0pt" align=center>28</P>
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<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:4.5pt; text-indent:72pt; font-size:12pt">5.22</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:4.5pt; text-indent:108pt; font-size:12pt"><U>Bank Accounts</U>. &nbsp;Schedule 5.22 contains a list, true and correct in all material respects, of the names of each bank, savings and loan, or other financial institution in which such Subject Company has an account, including cash contribution accounts, or safe deposit boxes, and the names of all persons authorized to draw thereon or to access thereto.</P>
<A NAME="_Toc454280418"></A><A NAME="_Toc457913301"></A><A NAME="_Toc457913416"></A><A NAME="_Toc457913890"></A><A NAME="_Toc457914201"></A><P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:4.3pt; text-indent:67.7pt; font-size:12pt">5.23</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:4.3pt; text-indent:103.7pt; font-size:12pt"><U>Environmental Matters</U>. </P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:4.3pt; text-indent:67.7pt; font-size:12pt">(a)</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:4.3pt; text-indent:103.7pt; font-size:12pt">Except as set forth on Schedule 5.23, each Subject Company is, and at all times has been, in compliance with all Environmental Laws (as defined below), except where the failure to comply would not reasonably be likely to have a Material Adverse Effect.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt">(b)</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:108pt; font-size:12pt">Except as set forth on Schedule 5.23, MJ GeneWorks and the Shareholders have no knowledge (without any duty of inquiry) of an existing or potential Environmental Claim (as defined below), and no Subject Company has received any written notification, nor does MJ GeneWorks or any Shareholder have any knowledge, of alleged, actual or potential responsibility for, or any inquiry or investigation regarding, any material disposal, release, or threatened release at any location, of any Hazardous Substance (as defined below) generated or transported by a Subject Company.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt">(c)</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:108pt; font-size:12pt">Except as set forth on Schedule 5.23, (i) no underground tank or other underground storage receptacle for Hazardous Substances has been constructed or installed or used by any Subject Company located on each Subject Company&#146;s properties and there have been no releases of any Hazardous Substances from any underground tank or related piping at any time caused by a Subject Company; and (ii) there have been no releases (<U>i.e.</U>, any past or present releasing, spilling, leaking, pumping, pouring, emitting, emptying, discharging, injecting, escaping, leaching, disposing, or dumping) of Hazardous Substances by any Subject Company on, upon, or into the properties of such Subject Company, except where such circumstance or event is not reasonably likely to have a Material Adverse Effect.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt">(d)</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:108pt; font-size:12pt">Except as set forth on Schedule 5.23, there are no polychlorinated biphenyls or asbestos placed or released by any Subject Company on the Leased Property of any Subject Company, except where the presence of such material is not reasonably likely to have a Material Adverse Effect.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt">(e)</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:108pt; font-size:12pt">To the knowledge of MJ GeneWorks and the Shareholders, no environmental lien has attached to any property to be transferred to Buyer under this Agreement.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt">(f)</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:108pt; font-size:12pt"><U>Definitions</U>.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:36pt; text-indent:72pt; font-size:12pt">(i)</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:36pt; text-indent:108pt; font-size:12pt">For purposes of this Agreement, &#147;<U>Environmental Laws</U>&#148; shall mean all federal, state, district, local, and foreign laws, all rules or regulations promulgated thereunder, and all orders, consent orders, judgments, notices, permits, or demand letters issued, promulgated, or entered pursuant thereto, relating to pollution or protection of the environment (including without limitation ambient air, surface water, ground water, land surface, or subsurface strata), including without limitation (i) laws relating to emissions, discharges, releases, or threatened releases of pollutants, contaminants, chemicals, materials, wastes, or other substances into the environment and (ii) laws relating to the identification, generation, manufacture, processing, distribution, use, treatment, storage, disposal, recovery, transport, or other handling of pollutants, contaminants, chemicals, </P>
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<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:36pt; font-size:12pt">industrial materials, wastes, or other substances. &nbsp;Environmental Laws shall include without limitation the Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended, the Toxic Substances Control Act, as amended, the Hazardous Materials Transportation Act, as amended, the Resource Conservation and Recovery Act, as amended, the Clean Water Act, as amended, the Safe Drinking Water Act, as amended, the Clean Air Act, as amended, the Atomic Energy Act of 1954, as amended, the Occupational Safety and Health Act, as amended, and all analogous laws promulgated or issued by any state, foreign nation or other governmental authority. &nbsp;Notwithstanding the foregoing to the contrary, Environmental Laws shall include and be limited to those laws, rules and regulation governing each Subject Company in its capacity as a tenant or sublessor.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:36pt; text-indent:72pt; font-size:12pt">(ii)</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:36pt; text-indent:108pt; font-size:12pt">For purposes of this Agreement, &#147;<U>Environmental Claims</U>&#148; shall mean all accusations, allegations, notice of violations, liens, claims, demands, suits, or causes of action for any damage, including without limitation, personal injury, property damage (including any depreciation of property values), lost use of property, or consequential damages, arising directly or indirectly out of Environmental Conditions or Environmental Laws. &nbsp;By way of example only, Environmental Claims include (A) violations of or obligations under any contract between such Subject Company and any other person, (B) actual or threatened damages to natural resources, (C)&nbsp;claims for nuisance or its statutory equivalent, (D) claims for the recovery of response costs, or administrative or judicial orders directing the performance of investigations, response or remedial actions under any Environmental 
Laws, (E) a requirement to implement &#147;corrective action&#148; pursuant to any order or permit issued pursuant to the Resource Conservation and Recovery Act, as amended or similar provisions of applicable state or foreign law, (F)&nbsp;claims for restitution, contribution, or indemnity, (G) fines, penalties, or liens of any kind against property, (H) claims for injunctive relief or other orders or notices of violation from federal, state, foreign or local agencies or courts, and (I) with regard to any present or former employees, claims relating to exposure to or injury from Environmental Conditions.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:36pt; text-indent:72pt; font-size:12pt">(iii)</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:36pt; text-indent:108pt; font-size:12pt">For purposes of this Agreement, &#147;<U>Environmental Conditions</U>&#148; shall mean the state of the environment, including natural resources (<U>e.g.</U>, flora and fauna), soil, surface water, ground water, any present or potential drinking water supply, subsurface strata, or ambient air, relating to or arising out of the use, handling, storage, treatment, recycling, generation, transportation, release, spilling, leaking, pumping, pouring, emptying, discharging, injecting, escaping, leaching, disposal, dumping, or threatened release of Hazardous Substances by such Subject Company or its predecessors or successors in interest, agents, representatives, employees, or independent contractors. &nbsp;With respect to Environmental Claims by third parties, Environmental Conditions also include the exposure of persons to Hazardous Substances at the work place or the exposure of persons or propert
y to Hazardous Substances migrating from or otherwise emanating from or located on property owned or occupied by such Subject Company. </P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:36pt; text-indent:72pt; font-size:12pt">(iv)</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:36pt; text-indent:108pt; font-size:12pt">For purposes of this Agreement, &#147;<U>Hazardous Substances</U>&#148; shall mean all pollutants, contaminants, chemicals, wastes, and any other carcinogenic, ignitable, corrosive, reactive, toxic, or otherwise hazardous substances or materials (whether solids, liquids or gases), placed or released on any Leased Facility by a Subject </P>
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<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:36pt; font-size:12pt">Company or its employees or agents, including but not limited to any substances, materials, or wastes subject to regulation, control, or remediation under Environmental Laws. &nbsp;By way of example only, the term Hazardous Substances includes petroleum, urea formaldehyde, flammable, explosive, and radioactive materials, PCBs, pesticides, herbicides, asbestos, sludge, slag, acids, metals, solvents, or waste waters. </P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt">(g)</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:108pt; font-size:12pt">Notwithstanding anything contained in this Agreement to the contrary, it is the intention of the parties to address issues concerning Environmental Laws, Environmental Claims, Environmental Conditions and Hazardous Substances in this Section&nbsp;5.23, and the violation of laws, statutes, orders, rules and regulations, ordinances, codes, orders, judgments, writs, injunctions, decrees or awards of any federal, state, local, or foreign court or governmental agency, department, authority or instrumentality relating thereto, in this Section&nbsp;5.23, and no other more general reference in any other section&nbsp;of this Article&nbsp;V to issues concerning or otherwise relating, directly or indirectly, to Environmental Laws, Environmental Claims, Environmental Conditions and Hazardous Substances, and the violation of laws, statutes, orders, rules and regulations, ordinances, codes, orders, judgments, writs, injuncti
ons, decrees or awards of any federal, state, local, or foreign court or governmental agency, department, authority or instrumentality relating thereto shall be deemed to be a reference thereto except as otherwise specifically set forth in this Section&nbsp;5.23.</P>
<A NAME="_Toc454280419"></A><A NAME="_Toc457913302"></A><A NAME="_Toc457913417"></A><A NAME="_Toc457913891"></A><A NAME="_Toc457914202"></A><P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:4.3pt; text-indent:72pt; font-size:12pt">5.24</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:4.3pt; text-indent:108.2pt; font-size:12pt"><U>Employee Benefit Plans</U>.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt">(a)</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:108pt; font-size:12pt"><U>Definitions</U>. &nbsp;The following terms, when used in this Section 5.24, shall have the following meanings. &nbsp;Any of these terms may, unless the context otherwise requires, be used in the singular or the plural depending on the reference.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:36pt; text-indent:72pt; font-size:12pt">(i)</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:36pt; text-indent:108pt; font-size:12pt"><U>Employee Plan</U>. &nbsp;&#147;<U>Employee Plan</U>&#148; shall mean, with respect to each Subject Company, any employee benefit plan, program or arrangement, whether oral or written, with respect to which such Subject Company or any Subsidiary of such Subject Company may incur any liability to an employee or which covers any employee or former employee of such Subject Company or any Subsidiary of such Subject Company. </P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:36pt; text-indent:72pt; font-size:12pt">(ii)</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:36pt; text-indent:108pt; font-size:12pt"><U>ERISA</U>. &nbsp;&#147;<U>ERISA</U>&#148; shall mean the Employee Retirement Income Security Act of 1974, as amended. </P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:36pt; text-indent:72pt; font-size:12pt">(iii)</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:36pt; text-indent:108pt; font-size:12pt"><U>ERISA Affiliate</U>. &nbsp;&#147;<U>ERISA Affiliate</U>&#148; shall mean, with respect to each Subject Company, any entity which is a member of a &#147;controlled group of corporations&#148; with or is under &#147;common control&#148; with such Subject Company or any Subsidiary of such Subject Company as defined in section 414(b) or (c) of the Code. </P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:36pt; text-indent:72pt; font-size:12pt">(iv)</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:36pt; text-indent:108pt; font-size:12pt"><U>Multiemployer Plan</U>. &nbsp;&#147;<U>Multiemployer Plan</U>&#148; shall mean, with respect to each Subject Company, any Employee Plan with respect to such Subject Company which is a &#147;multiemployer plan,&#148; as defined in Section 4001(a)(3) of ERISA. </P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:36pt; text-indent:72pt; font-size:12pt">(v)</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:36pt; text-indent:108pt; font-size:12pt"><U>PBGC</U>. &nbsp;&#147;<U>PBGC</U>&#148; shall mean the Pension Benefit Guaranty Corporation. </P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:36pt; text-indent:72pt; font-size:12pt">(vi)</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:36pt; text-indent:108pt; font-size:12pt"><U>Pension Plan</U>. &nbsp;&#147;<U>Pension Plan</U>&#148; shall mean, with respect to each Subject Company, any Employee Plan with respect to such Subject Company which is an </P>
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<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:36pt; font-size:12pt">&#147;employee pension benefit plan&#148; as defined in Section 3(2) of ERISA (other than a Multiemployer Plan). </P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:36pt; text-indent:72pt; font-size:12pt">(vii)</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:36pt; text-indent:108pt; font-size:12pt"><U>Welfare Plan</U>. &nbsp;&#147;<U>Welfare Plan</U>&#148; shall mean, with respect to each Subject Company, any Employee Plan with respect to such Subject Company which is an &#147;employee welfare benefit plan&#148;, as defined in Section 3(1) of ERISA. </P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt">(b)</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:108pt; font-size:12pt"><U>Disclosure; Delivery of Copies of Relevant Documents and Other Information</U>. &nbsp;Schedule 5.24 contains a complete list of Employee Plans with respect to each Subject Company. &nbsp;True and complete copies of each of the following documents have been delivered by each Subject Company to the Buyer: &nbsp;(i) each Employee Plan with respect to such Subject Company (and each related trust agreement or other funding instrument) or written description thereof (where an Employee Plan is not in writing), (ii) the most recent determination letter issued by the Internal Revenue Service with respect to each Pension Plan with respect to such Subject Company, (iii) for the three most recent plan years, Annual Reports on Form 5500 Series required to be filed with any governmental agency for each Pension Plan with respect to such Subject Company, (iv) all actuarial reports prepared for the last three plan years for 
each Pension Plan with respect to such Subject Company, (v) a description of complete age, salary, service and related data with respect to each Pension Plan, as of the last day of the most recent plan year for employees and former employees of such Subject Company and each Subsidiary of such Subject Company, and (vi) a description setting forth the amount of any liability of such Subject Company as of the Closing Date for payments more than thirty days past due with respect to each Welfare Plan with respect to such Subject Company.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt">(c)</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:108pt; font-size:12pt"><U>Representations</U>. &nbsp;Except as set forth on Schedule 5.24, each Subject Company other than MJ Japan represents as follows: </P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:36pt; text-indent:72pt; font-size:12pt">(i)</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:36pt; text-indent:108pt; font-size:12pt">As of the last day of the last plan year of each Pension Plan of such Subject Company and as of the Closing Date, the &#147;amount of unfunded benefit liabilities&#148; as defined in Section 4001(a)(18) of ERISA (but excluding from the definition of &#147;current value&#148; of &#147;assets&#148; of such Pension Plan accrued but unpaid contributions) did not and will not exceed zero. &nbsp;None of such Subject Company, any Subsidiary of such Subject Company or any ERISA Affiliate of such Subject Company has any liability for unpaid contributions that are past due with respect to any Pension Plan with respect to such Subject Company. </P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:36pt; text-indent:72pt; font-size:12pt">(ii)</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:36pt; text-indent:108pt; font-size:12pt">There are no Multiemployer Plans with respect to such Subject Company. </P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:36pt; text-indent:72pt; font-size:12pt">(iii)</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:36pt; text-indent:108pt; font-size:12pt">Each Pension Plan with respect to such Subject Company and each related trust agreement, annuity contract or other funding instrument that is intended to be qualified under Section 401(a) of the Code is, to the Knowledge of each Subject Company, so qualified, and has received a favorable determination letter from the Internal Revenue Service as to its qualification under Section 401(a) of the Code. &nbsp;To the Knowledge of each Subject Company nothing has occurred with respect to any such Plan that could cause the loss of such qualification. </P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:36pt; text-indent:72pt; font-size:12pt">(iv)</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:36pt; text-indent:108pt; font-size:12pt">There has been no &#147;reportable event&#148; (as defined in Section 4043(b) of ERISA and the PBGC regulations under such Section) with respect to any </P>
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<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:36pt; font-size:12pt">Pension Plan with respect to such Subject Company. &nbsp;No filing has been made by such Subject Company, any Subsidiary of such Subject Company or any ERISA Affiliate of such Subject Company with the PBGC, and no proceeding has been commenced by any person, (including the PBGC), to terminate any Pension Plan with respect to such Subject Company. &nbsp;No condition exists and no event has occurred that could constitute grounds for termination of any Pension Plan with respect to such Subject Company, except where such termination is not reasonably likely to have a Material Adverse Effect. &nbsp;None of such Subject Company, any Subsidiary of such Subject Company or any ERISA Affiliate of such Subject Company has, at any time, incurred any liability, contingent or otherwise, pursuant to any provision of Title IV of ERISA or the regulations thereunder, other than for premiums due the PBGC. </P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:36pt; text-indent:72pt; font-size:12pt">(v)</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:36pt; text-indent:108pt; font-size:12pt">Each Employee Plan with respect to such Subject Company and each related trust agreement, annuity contract or other funding instrument has been maintained and currently is in material compliance with its terms and, both as to form and operation, with the requirements prescribed by any and all statutes, orders, rules and regulations which are applicable to such Employee Plan, including but not limited to ERISA and the Code.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:36pt; text-indent:72pt; font-size:12pt">(vi)</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:36pt; text-indent:108pt; font-size:12pt">None of such Subject Company, any Subsidiary of such Subject Company, any ERISA Affiliate of such Subject Company or any Welfare Plan with respect to such Subject Company has any present or future obligation to provide medical (other than COBRA) or death benefits after termination of employment with such Subject Company, any Subsidiary of such Subject Company or any ERISA Affiliate of such Subject Company, to the extent required under Section 4980B of the Code or other applicable law (but not including any such obligation that may arise from the treatment of or other actions affecting such Personnel by or after the Closing), and no condition exists which would prevent such Subject Company from amending or terminating any such benefit program or Welfare Plan. &nbsp;Except as provided by law or as set forth in Schedule&nbsp;5.24, as of the Closing Date no Subject Company has any obligation to a
ny former employee of such Subject Company to provide medical insurance coverage to such former employee under COBRA.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:36pt; text-indent:72pt; font-size:12pt">(vii)</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:36pt; text-indent:108pt; font-size:12pt">Except as provided by law or as set forth in Schedule 5.24, the employment of all persons presently employed or retained by such Subject Company or a Subsidiary of such Subject Company is terminable at will.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:36pt; text-indent:72pt; font-size:12pt">(viii)</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:36pt; text-indent:108pt; font-size:12pt">There is no Employee Plan with respect to such Subject Company that if terminated would give rise to any penalty or forfeiture except as set forth in Schedule 5.24.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:36pt; text-indent:72pt; font-size:12pt">(ix)</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:36pt; text-indent:108pt; font-size:12pt">No amounts required to be contributed under any Employee Plan with respect to such Subject Company would not be deductible pursuant to the terms of Sections 162(a)(1), 404 or 280G of the Code. &nbsp;None of such Subject Company, any Subsidiary of such Subject Company or any plan fiduciary of any Welfare Plan or Pension Plan with respect to such Subject Company has engaged in any transaction in material violation of Sections 404 or 406 of ERISA or any &#147;prohibited transaction,&#148; as defined in Section 4975(c)(1) of the Code, for which no exemption exists under Section 408 of ERISA or Section 4975(c)(2) or (d) of the Code. </P>
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<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:36pt; text-indent:72pt; font-size:12pt">(x)</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:36pt; text-indent:108pt; font-size:12pt">Each Employee Plan with respect to such Subject Company and related trust agreement, annuity contract or other funding instrument is legally valid and binding and in full force and effect. </P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:36pt; text-indent:72pt; font-size:12pt">(xi)</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:36pt; text-indent:108pt; font-size:12pt">None of such Subject Company, any Subsidiary of such Subject Company, any ERISA Affiliate of such Subject Company or any Employee Plan with respect to such Subject Company is a party to any litigation relating to or seeking benefits under any Employee Plan with respect to such Subject Company. </P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:36pt; text-indent:72pt; font-size:12pt">(xii)</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:36pt; text-indent:108pt; font-size:12pt">Except as listed on Schedule&nbsp;5.24, none of such Subject Company, any Subsidiary of such Subject Company or any ERISA Affiliate of such Subject Company has any announced plan or legally binding commitment to create any additional Employee Plans or to amend or modify any existing Employee Plan with respect to such Subject Company. </P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:36pt; text-indent:72pt; font-size:12pt">(xiii)</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:36pt; text-indent:108pt; font-size:12pt">No event has occurred in connection with which such Subject Company, any Subsidiary of such Subject Company, any ERISA Affiliate of such Subject Company or any Employee Plan with respect to such Subject Company directly or indirectly, could be subject to any material liability (other than for contributions or payment of benefits under such Employee Plan as they come due) under ERISA, the Code or any other law, regulation or governmental order or under any agreement, instrument, statute, rule of law or regulation and for which such Subject Company or a Subsidiary of such Subject Company has agreed to indemnify or is required to indemnify any person against liability incurred under, or for a violation or failure to satisfy the requirements of, any such statute, regulation or order. </P>
<A NAME="_Toc454280420"></A><A NAME="_Toc457913303"></A><A NAME="_Toc457913418"></A><A NAME="_Toc457913892"></A><A NAME="_Toc457914203"></A><P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:4.5pt; text-indent:72pt; font-size:12pt">5.25</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:4.5pt; text-indent:108pt; font-size:12pt"><U>No Brokers</U>. &nbsp;Except as set forth on Schedule 5.25, such Subject Company does not have nor will have any obligation to pay any finder&#146;s fee, brokerage commission or similar payment in connection with the transactions contemplated hereby.</P>
<A NAME="_Toc454280421"></A><A NAME="_Toc457913304"></A><A NAME="_Toc457913419"></A><A NAME="_Toc457913893"></A><A NAME="_Toc457914204"></A><P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:4.5pt; text-indent:72pt; font-size:12pt">5.26</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:4.5pt; text-indent:108pt; font-size:12pt"><U>No Other Agreements to Sell the Assets or Capital Stock of such Subject Company</U>. &nbsp;Except as listed on Schedule&nbsp;5.26 and except in connection with the Senior Executive Dispute, neither a Subject Company nor any Shareholders have any legal obligation, absolute or contingent, to any other person or firm to sell or effect a sale of the Assets of such Subject Company (other than in the ordinary course of business), to sell or effect a sale of any of the capital stock of such Subject Company or to effect any merger, consolidation or other reorganization of such Subject Company or to enter into any agreement or cause the entering into of an agreement with respect thereto.</P>
<A NAME="_Toc454280424"></A><A NAME="_Toc457913307"></A><A NAME="_Toc457913422"></A><A NAME="_Toc457913896"></A><A NAME="_Toc457914207"></A><P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:4.5pt; text-indent:72pt; font-size:12pt">5.27</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:4.5pt; text-indent:108pt; font-size:12pt"><U>Material Misstatements Or Omissions</U>. &nbsp;No representations or warranties by such Subject Company or the Shareholders in this Agreement, nor any document, exhibit, statement, certificate or schedule furnished or to be furnished to Buyer pursuant hereto, or in connection with the transactions contemplated hereby, contains or will contain any untrue statement of a material fact, or omits or will omit to state any material fact necessary to make the statements or facts contained therein not misleading.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt">5.28</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:108pt; font-size:12pt"><U>Reserved.</U></P>
<P style="margin-top:0pt; margin-bottom:12pt"><BR>
<BR></P>
<P style="margin:0pt" align=center>34</P>
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<P style="margin:0pt"><BR></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt">5.29</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:108pt; font-size:12pt"><U>Product Returns, Product Liability and Product Warranty</U>. &nbsp;Schedule 5.29 contains a true and complete description of (a) all material warranties granted or made with respect to products sold, or services rendered, by each Subject Company and (b)&nbsp;each Subject Company&#146;s material product liability claims and product warranty experience for the last three (3) years and each Subject Company&#146;s material product returns experience for the last five (5) months, in each case for products that have been sold for such periods of time. &nbsp;Each Subject Company warrants that it has committed no act, and there has been no omission, which may result in, and there has been no occurrence which may give rise to, product liability or liability for breach of warranty (not covered by any of the insurance policies of a Subject Company effective as of the Closing Date) on the part of such Subject Company, w
ith respect to products designed, manufactured, assembled, repaired, maintained, delivered or installed or services rendered prior to or on the Closing Date in excess of $3,252,502 in the aggregate.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:4.5pt; text-indent:72pt; font-size:12pt">5.30</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:4.5pt; text-indent:108pt; font-size:12pt"><U>Line of Credit</U>. &nbsp;As of May 20, 2004, the principal amount owed by MJ Research under the line of credit with Bank of America (formerly Fleet Bank), which line of credit is no longer available (the &#147;<U>Line of Credit</U>&#148;) was $7,650,000 (the &#147;<U>Line of Credit Maximum Principal Amount</U>&#148;), and accrued and unpaid interest was $14,450. &nbsp;Interest on the Line of Credit was accruing as of May 20, 2004 at approximately $850 per day, subject to interest rate change as provided in the loan agreement for the Line of Credit.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:4.5pt; text-indent:72pt; font-size:12pt">5.31</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:4.5pt; text-indent:108pt; font-size:12pt"><U>John Hansen</U>. &nbsp;John Hansen resigned his position as Vice President, Communications of MJ Research on August 6, 2004. &nbsp;</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:4.5pt; text-indent:72pt; font-size:12pt">5.32</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:4.5pt; text-indent:108pt; font-size:12pt"><U>Post-April Applera Fees</U>. &nbsp;The Post-April Applera Fees incurred by MJ Research from May 1, 2004 through July 31, 2004 shall be no more than $2,000,000.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; font-family:Times New Roman Bold; font-size:12pt" align=center><FONT FACE="Times New Roman Bold"><B>ARTICLE VI.<BR>
<BR>
<A NAME="_Toc454280426"></A><A NAME="_Toc457913309"></A><A NAME="_Toc457913424"></A><A NAME="_Toc457913898"></A><A NAME="_Toc457914209"></A>REPRESENTATIONS AND WARRANTIES AND COVENANTS OF BUYER</B></FONT></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:72pt; font-size:12pt"><FONT FACE="Times New Roman">Buyer hereby represents and warrants and Covenants to each Subject Company and the Shareholders as follows:</FONT></P>
<A NAME="_Toc454280427"></A><A NAME="_Toc457913310"></A><A NAME="_Toc457913425"></A><A NAME="_Toc457913899"></A><A NAME="_Toc457914210"></A><P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:4.5pt; text-indent:72pt; font-size:12pt">6.1</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:4.5pt; text-indent:108pt; font-size:12pt"><U>Organization of Buyer</U>. &nbsp;Buyer is duly organized, validly existing and in good standing under the laws of the state of its incorporation.</P>
<A NAME="_Toc454280428"></A><A NAME="_Toc457913311"></A><A NAME="_Toc457913426"></A><A NAME="_Toc457913900"></A><A NAME="_Toc457914211"></A><P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:4.5pt; text-indent:72pt; font-size:12pt">6.2</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:4.5pt; text-indent:108pt; font-size:12pt"><U>Authorization</U>. &nbsp;Buyer has all necessary corporate power and authority and has taken all corporate action necessary to enter into this Agreement, to consummate the transactions contemplated hereby and to perform its obligations hereunder. &nbsp;This Agreement has been duly executed and delivered by Buyer and is a legal, valid and binding obligation of Buyer, enforceable against it in accordance with its terms.</P>
<A NAME="_Toc454280429"></A><A NAME="_Toc457913312"></A><A NAME="_Toc457913427"></A><A NAME="_Toc457913901"></A><A NAME="_Toc457914212"></A><P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:4.5pt; text-indent:72pt; font-size:12pt">6.3</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:4.5pt; text-indent:108pt; font-size:12pt"><U>No Conflict or Violation</U>. &nbsp;Neither the execution and delivery of this Agreement nor the consummation of the transactions contemplated hereby will result in (a) a violation of or a conflict with any provision of the Certificate of Incorporation or bylaws of Buyer, (b) a breach of, or a default under, any term or provision of any contract, agreement, indebtedness, lease, commitment, license, franchise, permit, authorization or concession to which Buyer is a party, which breach or default is reasonably likely to have a Material Adverse </P>
<P style="margin-top:0pt; margin-bottom:12pt"><BR>
<BR></P>
<P style="margin:0pt" align=center>35</P>
<P style="margin:0pt"><BR></P>
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<P style="margin:0pt; page-break-before:always"><BR></P>
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<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:4.5pt; font-size:12pt">Effect or (c) a violation by Buyer of any statute, rule, regulation, ordinance, code, order, judgment, writ, injunction, decree or award.</P>
<A NAME="_Toc454280430"></A><A NAME="_Toc457913313"></A><A NAME="_Toc457913428"></A><A NAME="_Toc457913902"></A><A NAME="_Toc457914213"></A><P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:4.5pt; text-indent:72pt; font-size:12pt">6.4</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:4.5pt; text-indent:108pt; font-size:12pt"><U>Consents and Approvals</U>. &nbsp;No consent, approval or authorization of, or declaration, filing or registration with, any governmental or regulatory authority is required to be made or obtained by Buyer in connection with the execution, delivery and performance of this Agreement and the consummation of the transactions contemplated hereby.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt">6.5</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:108pt; font-size:12pt"><U>Reserved</U>.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt" align=justify>6.6</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:108pt; font-size:12pt" align=justify><U>Reserved</U>.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt">6.7</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:108pt; font-size:12pt"><U>Canadian Employees</U>. &nbsp;Buyer hereby agrees that, upon the Closing or promptly thereafter, it will offer employment to the three employees of MJ Instrument Sales Co., a Nova Scotia entity, at salaries (including, without limitation, commissions and benefits) reasonably equivalent to existing amounts. &nbsp;Buyer hereby covenants and agrees to assume and pay amounts owing to MJ Instruments Sales Co. as of the Closing Date under the Organization and Support Services Agreement dated as of January 1, 2003 between MJ Research and MJ Instrument Sales Co., as amended, and the Non-Exclusive Agency Agreement dated as of January 1, 2004 between MJ Research and MJ Instrument Sales Co., as amended (including, without limitation, amounts that will be payable as commissions to MJ Instrument Sales Co. and its employees for sales incurred prior to Closing); it being understood that such covenant and agreement shall no
t have any effect on any other valid obligation of any Subject Company to MJ Instrument Sales Co.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt">6.8</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:108pt; font-size:12pt"><U>Bankruptcy</U>. &nbsp;Buyer hereby covenants and agrees that it will (i)&nbsp;in the Bankruptcy Proceeding, use commercially reasonable efforts to cause MJ Research to emerge from the Bankruptcy Proceeding as quickly as commercially reasonable, including, without limitation, that in the Bankruptcy Proceeding, Buyer will execute and deliver, where appropriate, and will cause to be filed within two days of the execution of this Agreement, and use commercially reasonable efforts to support, a motion and supporting documentation substantially in the form attached hereto as Exhibit&nbsp;6.8, and (ii)&nbsp;in the Bankruptcy Proceeding, cause motions to be filed and defended in connection with actions to be taken by MJ Research under or pursuant to this Agreement or the documents executed in connection herewith, and (iii)&nbsp;cause MJ Research and its affiliates to take any actions to be taken by it under or pursu
ant to this Agreement or the documents executed in connection herewith.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt">6.9</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:108pt; font-size:12pt"><U>Facility Side Letters; Simson Agreement; Etc.</U>. &nbsp;Buyer hereby agrees to cause MJ Research or its successor or assign to execute, deliver and perform the Facility Side Letters, the Simson Agreement, the Joint Defense Agreement and any other document to be executed by MJ Research pursuant to this Agreement either (i) immediately upon the Dismissal of the Bankruptcy Proceeding, or, if the Dismissal of the Bankruptcy Proceeding has not occurred on or before September 30, 2004 (ii)&nbsp;by filing or causing to be filed in the Bankruptcy Proceeding and using commercially reasonable efforts to support a motion or motions in support of the execution, delivery and performance by MJ Research of each of the Facility Side Letters and the Simson Agreement.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:72pt; font-size:12pt">&#147;<U>Dismissal of the Bankruptcy Proceeding</U>&#148; shall mean the Final Order of the Bankruptcy Court dismissing the Bankruptcy Proceeding. &nbsp;&#147;<U>Final Order</U>&#148; shall mean an order or </P>
<P style="margin-top:0pt; margin-bottom:12pt"><BR>
<BR></P>
<P style="margin:0pt" align=center>36</P>
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<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; font-size:12pt">judgment of the Bankruptcy Court or other applicable court as to which the time to appeal, petition for certiorari, or move for reargument or rehearing has expired and as to which no appeal, petition for certiorari, or other proceedings for reargument or rehearing shall then be pending or as to which any right to appeal, petition for certiorari, reargue, or rehear shall have been waived in writing in form and substance satisfactory to the Debtor or, in the event that an appeal, writ of certiorari, or reargument or rehearing thereof has been sought, such order or judgment of the Court or other applicable court shall have been affirmed by the highest court to which such order or judgment was appealed, or certiorari has been denied, or from which reargument or rehearing was sought, and the time to take any further appeal, petition for certiorari or move for reargument or rehearing shall have expired.</P>
<A NAME="_Toc454280433"></A><P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; font-family:Times New Roman Bold; font-size:12pt" align=center><FONT FACE="Times New Roman Bold"><B>ARTICLE VII.<BR>
<BR>
<A NAME="_Toc457913316"></A><A NAME="_Toc457913431"></A><A NAME="_Toc457913905"></A><A NAME="_Toc457914216"></A>COVENANTS OF THE SUBJECT COMPANIES, THE<BR>
SHAREHOLDERS AND BUYER</B></FONT></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:72pt; font-size:12pt"><FONT FACE="Times New Roman">Each Shareholder and each of MJ GeneWorks and Buyer covenant and agree one with the other that, prior to the Closing Date:</FONT></P>
<A NAME="_Toc454280434"></A><A NAME="_Toc457913317"></A><A NAME="_Toc457913432"></A><A NAME="_Toc457913906"></A><A NAME="_Toc457914217"></A><P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:4.3pt; text-indent:72pt; font-size:12pt">7.1</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:4.3pt; text-indent:108.2pt; font-size:12pt"><U>Maintenance of Business Prior to Closing</U>.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt">(a)</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:108pt; font-size:12pt">MJ GeneWorks shall, and shall cause each other Subject Company to, use its commercially reasonable efforts to continue to carry on the business of such Subject Company in the ordinary course and consistent with past practice and will not take any action inconsistent therewith or with the consummation of the transactions contemplated hereby. &nbsp;Without limiting the generality of the foregoing, MJ GeneWorks shall, and shall cause each other Subject Company to, (i)&nbsp;maintain the Assets of such Subject Company in their current state of repair in the ordinary course of business, excepting normal wear and tear; (ii)&nbsp;maintain insurance covering the Assets of such Subject Company substantially similar to that in effect on the date hereof; (iii)&nbsp;use commercially reasonable efforts to preserve the current business organization of such Subject Company intact; (iv)&nbsp;use its commercially reasonable effo
rts to keep available the services of its current Personnel; and (v)&nbsp;use its commercially reasonable efforts to preserve the current business relationships with customers, suppliers, distributors and others having business dealings with such Subject Company. &nbsp;No Subject Company will engage in any practice, take any action, embark on any course of inaction or enter into any transaction that would cause or result in any of its representations and warranties set forth in Article V to be untrue as of the Closing Date.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt">(b)</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:108pt; font-size:12pt">Prior to the Closing, Buyer shall use commercially reasonable efforts to continue to carry on the business of Buyer in the ordinary course and consistent with past practice and will not take any action inconsistent therewith or with the consummation of the transactions contemplated hereby. &nbsp;Buyer will not engage in any practice, take any action, embark on any course of inaction or enter into any transaction that would cause or result in any of its representations and warranties set forth in Article VI to be untrue as of the Closing Date.</P>
<A NAME="_Toc454280435"></A><A NAME="_Toc457913318"></A><A NAME="_Toc457913433"></A><A NAME="_Toc457913907"></A><A NAME="_Toc457914218"></A><P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:4.5pt; text-indent:72pt; font-size:12pt">7.2</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:4.5pt; text-indent:108pt; font-size:12pt"><U>Reserved</U>.</P>
<A NAME="_Toc454280436"></A><A NAME="_Toc457913319"></A><A NAME="_Toc457913434"></A><A NAME="_Toc457913908"></A><A NAME="_Toc457914219"></A><P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:4.5pt; text-indent:72pt; font-size:12pt">7.3</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:4.5pt; text-indent:108pt; font-size:12pt"><U>Environmental</U>. &nbsp;Buyer shall have the right, at its sole cost and expense, subject to any required consents of the owners of any Leased Property, to (i) conduct tests of the </P>
<P style="margin-top:0pt; margin-bottom:12pt"><BR>
<BR></P>
<P style="margin:0pt" align=center>37</P>
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<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:4.5pt; font-size:12pt">soil surface or subsurface waters and air quality at, in, on, beneath or about the Leased Property of such Subject Company, and to conduct such other procedures as may be recommended by an environmental consultant engaged by Buyer based on its reasonable professional judgment, in a manner consistent with good engineering practice, (ii)&nbsp;inspect records, reports, permits, applications, monitoring results, studies, correspondence data and any other information or documents relevant to environmental conditions or environmental noncompliance; and (iii) inspect all buildings and equipment at the Leased Property of such Subject Company including, without limitation, the visual inspection of the physical plans for asbestos-containing construction materials; provided, in each case, such tests and inspections shall be conducted only (x) during regular business hours; and (y) in a matter that will not unduly interfe
re with the operation of the business of such Subject Company and/or the use of, access to or egress from the Leased Property of such Subject Company. &nbsp;Buyer acknowledges that no Subject Company has the right to permit any invasive testing or testing of soil or groundwater and that any such permission must be sought from the applicable land owner.</P>
<A NAME="_Toc454280437"></A><A NAME="_Toc457913320"></A><A NAME="_Toc457913435"></A><A NAME="_Toc457913909"></A><A NAME="_Toc457914220"></A><P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:4.5pt; text-indent:72pt; font-size:12pt">7.4</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:4.5pt; text-indent:108pt; font-size:12pt"><U>Consents and Commercially Reasonable Efforts</U>. &nbsp;As soon as practicable, each of Buyer and MJ GeneWorks and the Shareholders will commence all commercially reasonable action to obtain all applicable Permits, consents, approvals and agreements of, and to give all notices and make all filings with, any third parties as may be necessary to authorize, approve or permit the consummation of the transactions provided for hereby on or prior to the Closing Date. &nbsp;The costs of such consents are to be born by equally by Buyer and the Shareholders.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt">7.5<A NAME="_Toc454280438"></A><A NAME="_Toc457913321"></A><A NAME="_Toc457913436"></A><A NAME="_Toc457913910"></A><A NAME="_Toc457914221"></A></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:108pt; font-size:12pt"><U>Financial Statements</U>.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt">(a)</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:108pt; font-size:12pt">MJ GeneWorks shall have provided Buyer with the 2003 Financial Statements as provided in Section&nbsp;5.8.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt">(b)</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:108pt; font-size:12pt">MJ GeneWorks and its Subsidiaries have provided Buyer with the unaudited balance sheet and the unaudited statements of income, retained earnings and cash flows of the Subject Companies for the period ended July 31, 2004, as adjusted (the &#147;<U>2004 Interim Financial Statements</U>&#148;).</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt">7.6<A NAME="_Toc454280439"></A><A NAME="_Toc457913322"></A><A NAME="_Toc457913437"></A><A NAME="_Toc457913911"></A><A NAME="_Toc457914222"></A></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:108pt; font-size:12pt"><U>Employee Matters</U>.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt">(a)</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:108pt; font-size:12pt">Buyer does not anticipate that there will be an &#147;employment loss&#148; as defined under the Worker Adjustment and Retraining Notification Act or any applicable state law equivalent (the &#147;<U>Warn Act</U>&#148;) in connection with the transaction contemplated hereby. &nbsp;In the event that there is an employment loss in connection with the transaction contemplated hereby, Buyer shall indemnify and save and hold harmless the Shareholders from any and all liabilities arising under the Warn Act.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt">(b)</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:108pt; font-size:12pt">During the period between the date hereof and the Closing Date, MJ GeneWorks shall, and MJ GeneWorks and the Shareholders shall cause each Subject Company to, use its commercially reasonable efforts to keep available such Subject Company&#146;s current employees now employed with respect to the business of such Subject Company. </P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt">7.7<A NAME="_Toc454280440"></A><A NAME="_Toc457913323"></A><A NAME="_Toc457913438"></A><A NAME="_Toc457913912"></A><A NAME="_Toc457914223"></A></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:108pt; font-size:12pt"><U>Reserved.</U></P>
<P style="margin-top:0pt; margin-bottom:12pt"><BR>
<BR></P>
<P style="margin:0pt" align=center>38</P>
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<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt">7.8<A NAME="_Toc454280441"></A><A NAME="_Toc457913324"></A><A NAME="_Toc457913439"></A><A NAME="_Toc457913913"></A><A NAME="_Toc457914224"></A></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:108pt; font-size:12pt"><U>No Mergers, Consolidations, Sale of Stock, Etc.</U> &nbsp;Such Subject Company and the Shareholders will not, directly or indirectly, solicit any inquiries or proposals or enter into or continue any discussions, negotiations or agreements relating to the sale or exchange of its capital stock or the merger of such Subject Company with, or any direct or indirect disposition of a significant amount of the Assets or the business of such Subject Company to, any person other than Buyer or its affiliates or provide any assistance or any information to or otherwise cooperate with any person in connection with any such inquiry, proposal or transaction.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt">7.9</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:108pt; font-size:12pt"><U>Litigation Escrow</U>. &nbsp;Buyer and, upon the consent in the Bankruptcy Proceeding if necessary, MJ Research, Inc. shall enter into a joint defense agreement whereby the parties will define Buyer&#146;s ability to participate in the Applera Litigation, which participation will require, among other things, that Buyer pay in full when due all Post-April Applera Fees as more fully set forth in Section&nbsp;3.3; provided that, simultaneously with its execution and delivery to the Shareholders of this Agreement, Buyer shall, to the extent it has not already done so, deposit $2.5 million into an escrow account pursuant to the Litigation Escrow Agreement dated as of the date hereof by and among certain of the Subject Companies, the Shareholders, Buyer and the Escrow Agent named therein (the &#147;<U>Litigation Escrow</U>&#148;), which shall be used to pay the Post-April Applera Fees (which fees will be paid prom
ptly upon receipt by Buyer, MJ GeneWorks and the Shareholders of a copy of the invoice therefor), and all amounts so paid shall be allocated to the payment of the Post-April Applera Fees as more fully described in Section&nbsp;3.3, and shall be treated as part of the Post-April Applera Fees for purposes of Section&nbsp;3.3. &nbsp;For the avoidance of doubt, prior to the Closing, Buyer shall have no obligation to pay any Post-Applera Fees except to the extent of the amount deposited in the Litigation Escrow.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt">7.10</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:108pt; font-size:12pt"><U>Reserved.</U></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt">7.11</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:108pt; font-size:12pt"><U>Line of Credit</U>. &nbsp;As of the Closing Date, the outstanding principal amount on the Line of Credit shall not exceed the Line of Credit Maximum Principal Amount (not including the capitalization of any interest, fees, expenses or other amounts owing under the Line of Credit).</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt">7.12</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:108pt; font-size:12pt"><U>Shareholders&#146; Loans</U>. &nbsp;Schedule 7.12 lists all outstanding loans by the Shareholders or their Affiliates to any Subject Companies (the &#147;<U>Shareholder Loans</U>&#148;).</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt">7.13</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:108pt; font-size:12pt"><U>Confidentiality</U>.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt">(a)</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:108pt; font-size:12pt">Buyer recognizes and acknowledges that prior to the Closing it will have access to certain confidential information about the business of the Subject Companies and the Shareholders, including without limitation intellectual property, lists of customers, operational policies, pricing and cost policies, all of which has been provided to Buyer for the purpose of evaluating the transactions contemplated by this Agreement. &nbsp;Buyer agrees, that, without the prior written consent of the Subject Companies and the Shareholders, prior to the Closing it will not use such confidential information other than for the purposes for which it has been provided and will not disclose such confidential information to any person or entity for any purpose whatsoever except for employees or other advisors of Buyer involved in the transactions described herein and who are subject to confidentiality agreements and only in connection
 with such transactions and except in connection with notices required to be given by Buyer in this Agreement provided that Buyer has discussed such notices with the Shareholders or their counsel </P>
<P style="margin-top:0pt; margin-bottom:12pt"><BR>
<BR></P>
<P style="margin:0pt" align=center>39</P>
<P style="margin:0pt"><BR></P>
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<P style="margin:0pt"><BR></P>
<P style="margin:0pt; page-break-before:always"><BR></P>
<P style="margin:0pt"><BR></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; font-size:12pt">prior to such disclosure, it will not use such confidential information for any purpose whatsoever (including without limitation for purposes of its own business) and will not disclose such confidential information to any other person or entity for any purpose whatsoever unless such person is identified in, and subject to a confidentiality agreement as more fully provided in, Section&nbsp;7.2; in each case unless such information becomes known to the public generally through no fault of Buyer, was known by Buyer or its affiliates prior to the beginning of negotiations regarding the Subject Companies or unless Buyer is required by law or subpoena to disclose such information. &nbsp;If the Buyer is requested to provide such information pursuant to requirements of applicable law or by subpoena, it shall notify the Subject Companies and the Shareholders as promptly as possible and shall allow the Subject Companies and the Shareholder
s the opportunity to oppose such request or to seek an appropriate protective order.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt">(b)</P>
<P style="line-height:normal; margin-top:0pt; margin-bottom:12pt; text-indent:108pt; font-size:12pt">Each of the Shareholders and the Subject Companies recognize and acknowledge that prior to the Closing it will have access to certain confidential information about the Buyer for the purpose of evaluating the transactions contemplated by this Agreement. &nbsp;Each of the Shareholders and the Subject Companies agree, that, without the prior written consent of the Buyer, prior to the Closing it will not use such confidential information other than for the purposes for which it has been provided and will not disclose such confidential information to any person or entity for any purpose whatsoever except for employees or other advisors of either of the Shareholders or the Subject Companies involved in the transactions described herein and who are subject to confidentiality agreements and only in connection with such transactions and except in connection with notices required to be given by either of the Sharehold
ers or the Subject Companies in this Agreement provided each of the Shareholders or the Subject Companies has discussed such notices with the Buyer or their counsel prior to such disclosure, it will not use such confidential information for any purpose whatsoever (including without limitation for purposes of its own business) and will not disclose such confidential information to any other person or entity for any purpose whatsoever unless such person is identified in, and subject to a confidentiality agreement as more fully provided in, Section&nbsp;7.2; in each case unless such information becomes known to the public generally through no fault of either the Shareholders or the Subject Companies, was known by either of the Shareholders or the Subject Companies or the Subject Companies<FONT FACE="Arial">'</FONT> affiliates prior to the beginning of negotiations regarding the Subject Companies or unless either of the Shareholders or the Subject Companies is required by law or subpoena to disclose such informa
tion. &nbsp;If either of the Shareholders or the Subject Companies is requested to provide such information pursuant to requirements of applicable law or by subpoena, it shall notify the Buyer as promptly as possible and shall allow the Buyer the opportunity to oppose such request or to seek an appropriate protective order.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt">7.14</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:108pt; font-size:12pt"><U>Section 338(h)(10) Election; 2004 Stockholder Tax Liability</U>.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt">(a)</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:108pt; font-size:12pt">Buyer, the Shareholders and MJ GeneWorks shall take all necessary and appropriate steps to join in the making of an election pursuant to Section 338(h)(10) of the Code (and any corresponding elections under state, local or foreign tax laws) (the &#147;Section 338(h)(10) Election&#148;) with respect to the purchase and sale of the capital stock of MJ GeneWorks &nbsp;and will jointly take such actions as are necessary to effect such election. &nbsp;As soon as practicable, on or after the Closing Date, the parties will timely file IRS Form 8023 and such other forms as are required to effect such election. &nbsp;</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt">(b)</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:108pt; font-size:12pt">The modified aggregate deemed Purchase Price shall be allocated among the assets of the Company on the basis set forth on Schedule 7.14; such allocations will be used </P>
<P style="margin-top:0pt; margin-bottom:12pt"><BR>
<BR></P>
<P style="margin:0pt" align=center>40</P>
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<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; font-size:12pt">in filing Form 8883 and such other forms as are required to effect the Section 338(h)(10) Election. &nbsp;Subject to the requirements of any applicable tax law or election, all income tax returns filed by the Shareholders, Buyer or any Subject Company will be prepared consistently with such allocations. &nbsp;None of Buyer, any Subject Company or any Shareholder shall take any position before any taxing authority or in any judicial proceeding with respect to income taxes that is inconsistent with such mutually agreed-upon allocations. &nbsp;</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt">(c)</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:108pt; font-size:12pt">On or before the date that is ten days prior to the date any Shareholder is required to pay any estimated or actual federal, state or local income taxes resulting from the transactions contemplated by this Agreement, Buyer shall pay to such Shareholder, by wire transfer of immediately available funds to an account designated by such Shareholder, an additional payment amount equal to the following:</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:36pt; font-size:12pt">&nbsp;(1)</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:72pt; font-size:12pt">the difference between</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:72pt; text-indent:36pt; font-size:12pt">&nbsp;(A)</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:72pt; text-indent:72pt; font-size:12pt">the aggregate amount of federal, state and local income taxes that would have been payable by such Shareholder had the Section 338(h)(10) Election not been made, assuming for these purposes that the Shareholder was or is in the maximum marginal tax brackets for federal, state and local income tax purposes, and further assuming that the Shareholder is subject to the federal alternative minimum tax, and </P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:72pt; text-indent:36pt; font-size:12pt">(B)</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:72pt; text-indent:72pt; font-size:12pt">the aggregate amount of federal, state and local income taxes that will be payable by the Shareholder as a result of the Section 338(h)(10) Election, assuming the Shareholder was or is in the maximum marginal tax brackets for federal state and local income tax purposes, and further assuming that the Shareholder is subject to the federal alternative minimum tax; </P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:36pt; text-indent:36pt; font-size:12pt">all such computations to take into account all factors, including, but not limited to, the increase in income and gain recognized as a result of the Section 338(h)(10) Election and changes in character of the income subject to tax (the difference between such two tax calculations is referred to herein as the &#147;Difference&#148;), plus </P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:36pt; font-size:12pt">(2)</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:72pt; font-size:12pt">an incremental amount further grossing up such Difference for any federal, state or local taxes, arising from (A) the payment of the Difference plus (B) the payment of such incremental amount (said incremental amount being referred to herein as the &#147;Gross Up Amount&#148;) such that, after taking into account payment of the Gross Up Amount and the Difference, such Shareholder will have received approximately the same aggregate after-tax proceeds from the aggregate transactions under this Agreement that such Shareholder would have enjoyed but for the Section 338(h)(10) Election, again based on the assumptions set forth in this subsection (c). &nbsp;</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:36pt; font-size:12pt">The purpose of this subsection (c) is to provide a method for reasonably approximating the additional payments necessary to put each Shareholder in the same position after the Section 338(h)(10) Election as that person would be in absent such election, by assuming for such calculation purposes that each Shareholder is in the maximum tax bracket in each jurisdiction, and further assuming that such Shareholder is subject to the Federal alternative minimum tax, in order to make it possible to simplify the calculation and complete it contemporaneously with any payment or other event that results in tax liabilities to such Shareholder pursuant to the </P>
<P style="margin-top:0pt; margin-bottom:12pt"><BR>
<BR></P>
<P style="margin:0pt" align=center>41</P>
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<P style="margin:0pt"><BR></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; font-size:12pt">transactions contemplated by this Agreement. &nbsp;The Buyer is agreeing to make all such additional payments to each Shareholder, under this section 7.14, as consideration for each Shareholder&#146;s agreement to execute and file the 338(h)(10) Election. &nbsp;&nbsp;</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt">(d)</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:108pt; font-size:12pt">&nbsp;Buyer and Shareholders acknowledge and agree in advance that, at the time the 338(h)(10) Election is filed, it may be difficult or impossible to determine the full and correct amount of both the Difference and the Gross Up Amount contemplated in section 7.14(c), due, among other things, to the existence of contingent payments that may not be fixed and determinable on or before such date. &nbsp;Buyer therefore agrees that, at the time any future payments are made to the Shareholders under this Agreement, Buyer shall at that time pay to each Shareholder such amount as would be required under Section 7.14(c), hereof. &nbsp;</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt">(e)</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:108pt; font-size:12pt">The parties acknowledge and agree that, when and if any taxing authority increases the tax liability for any Shareholder as a result of the transactions contemplated by this Agreement, the Buyer shall make such payments to such Shareholder as required in accordance with Section 7.14(c); provided, however, that in the event of an actual tax audit and adjustment by any taxing authority, the additional payments owed by Buyer to such Shareholder at that time will be the Difference and Gross Up Amount determined using the actual tax return and actual tax items of such Shareholder, as adjusted by the taxing authorities. &nbsp;The purpose and intention of this section 7.14(e) is to assure that, after any tax audit, each Shareholder is in the same economic position on an after-tax basis that he would be in if no Section 338(h)(10) Election were filed.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt">7.15</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:108pt; font-size:12pt"><U>Reserved</U>.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt">7.16</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:108pt; font-size:12pt"><U>Filings</U>. &nbsp;Notwithstanding anything in this Agreement to the contrary, no party hereto makes any representation, warranty, covenant or agreement in respect of notices to any person or filings with any non-United States government or other foreign jurisdiction in connection with the execution, delivery or performance of this Agreement.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:72pt; font-size:12pt">7.17 &nbsp;<U>401(k) Plan</U>. &nbsp;The Shareholders shall have no liability with respect to the action by MJ GeneWorks&#146;s board of directors to terminate its 401(k) plan (the &#147;<U>Seller&#146;s 401(k) Plan</U>&#148;) effective immediately prior to the Closing Date, and Buyer shall indemnify the Shareholders from any liability with respect to such termination and from any liability with respect to any actions or omissions taken by the Buyer after the Closing Date with respect to the termination of the Seller&#146;s 401(k) Plan and/or the Buyer&#146;s distribution of benefits or merger of account balances. &nbsp;The preceding sentence and the indemnity it contains shall not apply to any liability, tax, penalty, cost or other expense attributable to acts or omissions prior to the Closing other than the adoption of a corporate resolution to terminate the Seller&#146;s 401(k) Plan, which resolutions were ad
opted at the request of the Buyer.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt">7.18</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:108pt; font-size:12pt"><U>Colonnade Apartment</U>. &nbsp;Buyer shall permit (or cause to be permitted) John D. Finney, at his sole costs and expense, to continue to occupy the corporate residence at the Colonnade Residences, 118 Huntington Avenue, Apt. 901, Boston, MA from the date hereof through December 31, 2004.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt">7.19</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:108pt; font-size:12pt"><U>Transfer of MJ Japan</U>. &nbsp;Immediately following the Closing, Buyer shall make or cause to be made employment offers to at least three of the following four persons: Yoshiharu Naito, Sales Manager, Makoto Abe, Applications Manager, Yukimasa Nakashima, </P>
<P style="margin-top:0pt; margin-bottom:12pt"><BR>
<BR></P>
<P style="margin:0pt" align=center>42</P>
<P style="margin:0pt"><BR></P>
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<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; font-size:12pt">Technical Service Manager, and Hiroko Yoshida, Accounting Manager (such three or four employees to whom employment offers are made being the &#147;<U>Buyer Employees</U>&#148;; all other employees of MJ Japan collectively referred to as the &#147;<U>Remaining Employees</U>&#148;). &nbsp;Within the period that is 30 days after the Closing (the &#147;<U>30-Day Transfer Preparation Period</U>&#148;), the parties hereto will pursue a sale or other transfer (a &#147;<U>Transfer</U>&#148;) to a purchaser (the &#147;<U>Third-Party Purchaser</U>&#148;) of MJ Japan, as a legal entity, provided that at the time of such transfer, such entity will have only the following assets and liabilities: &nbsp;(1)&nbsp;the current lease for the office space occupied by MJ Japan; (2)&nbsp;the employment relationship with all or some portion of the Remaining Employees; (3)&nbsp;furniture and fixtures (including, without limitation, the laboratory equipm
ent) currently used by MJ Japan; (4)&nbsp;the computer equipment and systems currently used by MJ Japan; (5)&nbsp;any lease for furniture, fixtures and equipment used by MJ Japan, and any automobile leases for automobiles used primarily by employees whose employment relationships are being transferred pursuant to clause&nbsp;(2) above; and (6)&nbsp;all corporate books and records and other similar assets of MJ Japan (but not including the name &#147;MJ Japan&#148; itself) (collectively, the &#147;<U>Transferred Assets</U>&#148;). &nbsp;Within the Transfer Preparation Period, in anticipation of the Transfer, Buyer shall make reasonable efforts to transfer out of MJ Japan all assets and liabilities other than the Transferred Assets. &nbsp;If Buyer is not able to transfer out all such assets on a commercially reasonable basis, including because the accounts receivable are not easily transferred or distributed, then the parties agree that the Buyer will be allocated an appropriate portion of any proceeds from a 
Transfer such that Buyer is made whole for leaving such assets in MJ Japan. &nbsp;&nbsp;Definitive documentation relating to the Transfer shall be executed by the Third-Party Purchaser within the Transfer Preparation Period, and such transaction shall be consummated within the period that is 45 days after the Closing.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:72pt; font-size:12pt">In the event the parties consummate a Transfer in which Buyer recognizes a net profit calculated in the manner described below (the &#147;<U>Transfer Net Profit</U>&#148;), Buyer will pay the Shareholders an additional amount equal to 50% of the Transfer Net Profit. &nbsp;The Transfer Net Profit will be determined based on the following factors: &nbsp;(1)&nbsp;all costs of transferring to Buyer the assets and liabilities of MJ Japan other than the Transferred Assets will be disregarded; (2)&nbsp;Buyer will bear the costs of operating MJ Japan during the 30-Day Transfer Preparation Period, and such operating costs are to be taken into account in determining Transfer Net Profit; (3) if Buyer elects to retain and employ any Remaining Employees after the 30-Day Transfer Preparation Period in preparation for a Transfer, such other operating costs will be deducted from the gross proceeds of a Transfer in determining T
ransfer Net Profit; (4)&nbsp;and any all other costs reasonably incurred by Buyer or MJ Japan directly in connection with the Transfer, including, without limitation, attorneys&#146; fees, will be taken into account in determining Transfer Net Profit; and (5)&nbsp;if the purchase price paid by the Third-Party Purchaser is increased to reimburse Buyer for MJ Japan assets other than the Transferred Assets, such portion of the purchase price shall be allocated exclusively to Buyer and shall not be taken into account when calculating Transfer Net Profit.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:72pt; font-size:12pt">In the event the Third Party Purchaser requires that one or more of the Remaining Employees be terminated prior to the Transfer and Buyer must pay severance costs (including, without limitation, severance payments that are customarily made to Japanese employees by Japanese companies in similar situations (the &#147;<U>Severance Costs</U>&#148;)) to such terminated employees, the Shareholders receive 50% of the Transfer Net Profit less 50% of the Severance Costs paid by Buyer to such terminated employees.</P>
<P style="margin-top:0pt; margin-bottom:12pt"><BR>
<BR></P>
<P style="margin:0pt" align=center>43</P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt"><BR></P>
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<P style="margin:0pt; page-break-before:always"><BR></P>
<P style="margin:0pt"><BR></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:72pt; font-size:12pt">In the event the parties are not able to identify a Third Party Purchaser during the 30-Day Transfer Preparation Period, Buyer may at any time thereafter, in its sole and absolute discretion, elect to terminate the Remaining Employees. &nbsp;In the event Buyer terminates one or more of the Remaining Employees upon or after the termination of the 30-Day Transfer Termination Period and thereafter pays Severance Costs to such terminated employee(s), the Shareholders shall pay to Buyer an amount equal to the lesser of the following: &nbsp;(a)&nbsp;50% of the amount of the Severance Costs paid by Buyer to such terminated employee(s); and (b)&nbsp;in the aggregate for all such terminations, US$500,000. &nbsp;Notwithstanding the foregoing, the Shareholder&#146;s obligation to make payments pursuant to this paragraph with respect to unterminated Remaining Employees shall terminate in the event a Transfer has not occurre
d within one hundred twenty days of the Closing Date (the &#147;<U>Expiration Date</U>&#148;) except in respect of specific amounts claimed to be owed to Buyer pursuant to this paragraph in a writing delivered to the Shareholders by the Buyer before the Expiration Date. &nbsp;The parties may extend such one hundred twenty day period by mutual written agreement executed by all parties.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:72pt; font-size:12pt">To secure payment by the Shareholders to Buyer of their portion of any Severance Costs, the parties agree to enter into an escrow agreement (the &#147;<U>Severance Escrow Agreement</U>&#148;) in substantially the form attached hereto as Exhibit 7.19. &nbsp;The parties agree to treat the $500,000 held under the Severance Escrow Agreement as belonging to the Buyer until such funds are released pursuant to the terms of said escrow agreement.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt">7.20</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:108pt; font-size:12pt"><U>Jeanette Finney</U>. &nbsp;Buyer intends to continue employing Jeanette Finney in her current capacity at her current salary and with the benefits package offered most remaining employees of the Subject Company for some period after the Closing. &nbsp;Ms. Finney&#146;s employment may be terminated by Buyer upon two week&#146;s notice or two weeks&#146; pay in lieu of notice, but in any event shall terminate effective October 30, 2004. &nbsp;Upon such termination, in exchange for a full release by Ms. Finney for all claims she may have against the Subject Companies, Buyer agrees to pay Ms. Finney severance equal to $16,228. &nbsp;Provided Buyer complies with the terms of this Section&nbsp;7.20, John D. Finney agrees to indemnify Buyer for Damages (as defined below) incurred in connection with any claims made by Ms. Finney arising from her employment with any Subject Company.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; font-family:Times New Roman Bold; font-size:12pt" align=center><FONT FACE="Times New Roman Bold"><B>ARTICLE VIII.<BR>
<BR>
<A NAME="_Toc454280443"></A><A NAME="_Toc457913326"></A><A NAME="_Toc457913441"></A><A NAME="_Toc457913915"></A><A NAME="_Toc457914226"></A>CONDITIONS TO THE SHAREHOLDERS&#146; OBLIGATIONS</B></FONT></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:72pt; font-size:12pt"><FONT FACE="Times New Roman">The obligations of each Shareholder to consummate the transactions provided for hereby are subject to the satisfaction, on or prior to the Closing Date, of each of the following conditions (any of which may be waived by such Shareholder):</FONT></P>
<A NAME="_Toc454280444"></A><A NAME="_Toc457913327"></A><A NAME="_Toc457913442"></A><A NAME="_Toc457913916"></A><A NAME="_Toc457914227"></A><P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt">8.1</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:108pt; font-size:12pt"><U>Representations, Warranties and Covenants</U>. &nbsp;All representations and warranties of Buyer contained in this Agreement shall be true and correct in all material respects at and as of the date of this Agreement and at and as of the Closing Date as though made on the Closing Date except to the extent that any such representation and warranty refers to a specific date, in which case it shall be true and correct in all material respects as and as of said date, and Buyer shall have performed all material agreements and covenants required hereby to be performed by it prior to or at the Closing Date.</P>
<P style="margin-top:0pt; margin-bottom:12pt"><BR>
<BR></P>
<P style="margin:0pt" align=center>44</P>
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<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt">8.2</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:108pt; font-size:12pt"><U>Consents</U>. &nbsp;Any necessary governmental approvals under applicable U.S. and foreign laws and other third party approvals required to be obtained by Buyer pursuant to Section&nbsp;7.4 shall have been obtained.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt">8.3</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:108pt; font-size:12pt"><U>No Governmental Proceedings or Litigation</U>. &nbsp;No Action by any governmental authority shall have been instituted or threatened for the purpose of enjoining or preventing the transactions contemplated by this Agreement, that questions the validity or legality of the transactions contemplated hereby that is reasonably likely to have a Material Adverse Effect.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt">8.4</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:108pt; font-size:12pt"><U>Opinion of Counsel</U>. &nbsp;Buyer shall have delivered to the Shareholders an opinion of the general counsel to Buyer, dated as of the Closing Date, as to the matters set forth on Exhibit&nbsp;8.4 hereto.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt">8.5</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:108pt; font-size:12pt"><U>Certificates</U>. &nbsp;The Buyer will furnish the Shareholders the following certificates:</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt">(a)</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:108pt; font-size:12pt">A certificate executed by the Secretary or an Assistant Secretary of Buyer certifying as of the Closing Date (i) a true and complete copy of the bylaws of Buyer, (ii) a true and complete copy of the resolutions of the board of directors of Buyer authorizing the execution, delivery and performance of this Agreement by Buyer and the consummation of the transactions contemplated hereby, and (iii) incumbency matters. </P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt">(b)</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:108pt; font-size:12pt">A certificate executed by the President or any Vice President of Buyer certifying that, as of the Closing Date, the conditions set forth in Article VIII and Article IX have been satisfied; and</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt">(c)</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:108pt; font-size:12pt">A copy of the certificate of incorporation of Buyer and all amendments thereto, certified as of a recent date by the Secretary of State of Delaware. </P>
<A NAME="_Toc454280449"></A><A NAME="_Toc457913332"></A><A NAME="_Toc457913447"></A><A NAME="_Toc457913921"></A><A NAME="_Toc457914232"></A><P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:4.5pt; text-indent:67.5pt; font-size:12pt">8.6</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:4.5pt; text-indent:108pt; font-size:12pt"><U>Consulting Agreements</U>. &nbsp;Buyer shall have entered into the Consulting Agreements with the Shareholders.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; font-family:Times New Roman Bold; font-size:12pt" align=center><FONT FACE="Times New Roman Bold"><B>ARTICLE IX.<BR>
<BR>
<A NAME="_Toc454280450"></A><A NAME="_Toc457913333"></A><A NAME="_Toc457913448"></A><A NAME="_Toc457913922"></A><A NAME="_Toc457914233"></A>CONDITIONS TO BUYER&#146;S OBLIGATIONS</B></FONT></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:72pt; font-size:12pt"><FONT FACE="Times New Roman">The obligations of Buyer to consummate any of the transactions provided for hereby are subject to the satisfaction, on or prior to the Closing Date, of each of the following conditions (any of which may be waived by Buyer):</FONT></P>
<A NAME="_Toc454280451"></A><A NAME="_Toc457913334"></A><A NAME="_Toc457913449"></A><A NAME="_Toc457913923"></A><A NAME="_Toc457914234"></A><P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt">9.1</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:108pt; font-size:12pt"><U>Representations, Warranties and Covenants</U>. &nbsp;All representations and warranties of each of the Subject Companies and the Shareholders contained in this Agreement shall be true and correct in all material respects at and as of the date of this Agreement and at and as of the Closing Date as though made on the Closing Date except to the extent that any such representation and warranty refers to a specific date, in which case it shall be true and correct in all material respects as and as of said date, and each Subject Company and the Shareholders shall have performed all agreements and covenants required hereby to be performed by either of them prior to or at the Closing Date.</P>
<A NAME="_Toc454280452"></A><A NAME="_Toc457913335"></A><A NAME="_Toc457913450"></A><A NAME="_Toc457913924"></A><A NAME="_Toc457914235"></A><P style="margin-top:0pt; margin-bottom:12pt"><BR>
<BR></P>
<P style="margin:0pt" align=center>45</P>
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<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt">9.2</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:108pt; font-size:12pt"><U>Consents.</U> &nbsp;Any necessary governmental approvals under applicable U.S. and foreign laws and other third party approvals required to be obtained by MJ GeneWorks or the Shareholders pursuant to Section&nbsp;7.4 shall have been obtained.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt">9.3</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:108pt; font-size:12pt"><U>No Governmental Proceedings or Litigation</U>. &nbsp;No Action by any governmental authority shall have been instituted or threatened for the purpose of enjoining or preventing the transactions contemplated by this Agreement, or that questions the validity or legality of the transactions contemplated hereby.</P>
<A NAME="_Toc454280454"></A><A NAME="_Toc457913337"></A><A NAME="_Toc457913452"></A><A NAME="_Toc457913926"></A><A NAME="_Toc457914237"></A><P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt">9.4</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:108pt; font-size:12pt"><U>Opinion of Counsel</U>. &nbsp;MJ GeneWorks and the Shareholders shall have delivered to Buyer an opinion of Greenberg Traurig, LLP, dated as of the Closing Date, as to the matters set forth on Exhibit&nbsp;9.4 hereto.</P>
<A NAME="_Toc454280455"></A><A NAME="_Toc457913338"></A><A NAME="_Toc457913453"></A><A NAME="_Toc457913927"></A><A NAME="_Toc457914238"></A><P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt">9.5</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:108pt; font-size:12pt"><U>Certificates</U>. &nbsp;The Shareholders will furnish Buyer the following certificates:</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt">(a)</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:108pt; font-size:12pt">A certificate executed by the Secretary or an Assistant Secretary of MJ GeneWorks and each Subject Company other than MJ Japan and MJ Research certifying as of the Closing Date (i)&nbsp;a true and complete copy of the bylaws of such Subject Company; (ii)&nbsp; a true and complete copy of the resolutions of the board of directors of such Subject Company authorizing, in the case of MJ GeneWorks, the execution, delivery and performance of this Agreement, and, in the case of such Subject Company, and the consummation of the transactions contemplated hereby; and (iii)&nbsp;incumbency matters.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt">(b)</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:108pt; font-size:12pt">A certificate executed by the President or any Vice President of MJ GeneWorks and by each Shareholder certifying that, as of the Closing Date, the conditions set forth in Article IX and in Article&nbsp;VIII have been satisfied;</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt">(c)</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:108pt; font-size:12pt">A copy of the articles of incorporation, certificate of incorporation or equivalent of each Subject Company other than MJ Japan and all amendments thereto, certified as of a recent date by the appropriate Secretary of State;</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt">(d)</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:108pt; font-size:12pt">A copy of the certificate to do business of each Subject Company other than MJ Japan, certified by the appropriate Secretary of State, in each state where such Subject Company is qualified to do business as a foreign entity; </P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt">(e)</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:108pt; font-size:12pt">A certificate of the appropriate Secretary of State certifying the good standing of each Subject Company other than MJ Japan in its state, or country of incorporation and all states where it is qualified to do business; </P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt">(f)</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:108pt; font-size:12pt"><U>Reserved</U>.</P>
<A NAME="_Toc454280458"></A><A NAME="_Toc457913341"></A><A NAME="_Toc457913456"></A><A NAME="_Toc457913930"></A><A NAME="_Toc457914241"></A><P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt">9.6</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:108pt; font-size:12pt"><U>Reserved</U>.</P>
<A NAME="_Toc454280461"></A><A NAME="_Toc457913344"></A><A NAME="_Toc457913459"></A><A NAME="_Toc457913933"></A><A NAME="_Toc457914244"></A><P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt">9.7</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:108pt; font-size:12pt"><U>Reserved</U>.</P>
<A NAME="_Toc454280462"></A><A NAME="_Toc457913345"></A><A NAME="_Toc457913460"></A><A NAME="_Toc457913934"></A><A NAME="_Toc457914245"></A><P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt">9.8</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:108pt; font-size:12pt"><U>Escrow Agreements</U>. &nbsp;The Shareholders shall have entered into the Indemnification Escrow Agreement with Buyer.</P>
<A NAME="_Toc454280463"></A><A NAME="_Toc457913346"></A><A NAME="_Toc457913461"></A><A NAME="_Toc457913935"></A><A NAME="_Toc457914246"></A><P style="margin-top:0pt; margin-bottom:12pt"><BR>
<BR></P>
<P style="margin:0pt" align=center>46</P>
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<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt">9.9</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:108pt; font-size:12pt"><U>Consulting Agreements</U>. &nbsp;The Shareholders shall have entered into the Consulting Agreements with Buyer.</P>
<A NAME="_Toc454280464"></A><A NAME="_Toc457913347"></A><A NAME="_Toc457913462"></A><A NAME="_Toc457913936"></A><A NAME="_Toc457914247"></A><P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt">9.10</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:108pt; font-size:12pt"><U>Reserved</U>.</P>
<A NAME="_Toc454280465"></A><A NAME="_Toc457913348"></A><A NAME="_Toc457913463"></A><A NAME="_Toc457913937"></A><A NAME="_Toc457914248"></A><P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt">9.11</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:108pt; font-size:12pt"><U>Reserved.</U></P>
<A NAME="_Toc454280466"></A><A NAME="_Toc457913349"></A><A NAME="_Toc457913464"></A><A NAME="_Toc457913938"></A><A NAME="_Toc457914249"></A><P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt">9.12</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:108pt; font-size:12pt"><U>Tax Matters</U>. &nbsp;No new elections with respect to Taxes, or changes in current elections with respect to Taxes, affecting any Subject Company shall have been made after the date of this Agreement without the prior written consent of Buyer, which consent shall not be unreasonably withheld or delayed.</P>
<A NAME="_Toc454280467"></A><A NAME="_Toc457913350"></A><A NAME="_Toc457913465"></A><A NAME="_Toc457913939"></A><A NAME="_Toc457914250"></A><P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt">9.13</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:108pt; font-size:12pt"><U>Endorsement of Loans</U>. &nbsp;Buyer shall have received executed endorsement allonges (the &#147;<U>Endorsement Allonges</U>&#148;) for each of the Promissory Notes identified on Schedule&nbsp;7.12.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt">9.14</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:108pt; font-size:12pt"><U>Financial Statements</U>. &nbsp;Buyer shall have received the 2003 Financial Statements and the 2004 Interim Financial Statements.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; font-family:Times New Roman Bold; font-size:12pt" align=center><FONT FACE="Times New Roman Bold"><B>ARTICLE X.<BR>
<BR>
COVENANT NOT TO COMPETE</B></FONT></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:72pt; font-size:12pt"><FONT FACE="Times New Roman">Each of Michael J. Finney and John D. Finney</FONT><B> </B>(individually, a &#147;<U>Controlling Shareholder</U>&#148; and, collectively, the &#147;<U>Controlling Shareholders</U>&#148;) acknowledges and agrees that the business of each Subject Company is conducted throughout the world (the &#147;<U>Territory</U>&#148;) and that such Subject Company&#146;s reputation and goodwill are an integral part of its business success throughout the Territory. &nbsp;If a Controlling Shareholder deprives such Subject Company of its goodwill or in any manner utilizes its reputation and goodwill in competition with Buyer or any Subject Company, Buyer will be deprived of the benefits it has bargained for pursuant to this Agreement. &nbsp;Accordingly, as an inducement for Buyer to enter into this Agreement, each Controlling Shareholder, with respect to each Subject Company, agrees that for a period 
of five (5) years after the Closing Date (the &#147;<U>Non-competition Period</U>&#148;), such Controlling Shareholder shall not, without Buyer&#146;s prior written consent, directly or indirectly, own, manage, operate, join, control or participate in the ownership, management, operation or control of, or be connected as a director, officer, employee, partner, consultant or otherwise with, any profit or non-profit business or organization that, directly or indirectly, is engaged in the Business in the Territory; except that ownership of an equity interest of 2% or less in any such firm or business that is a public corporation shall not be prohibited by this Article X. &nbsp;In the event the agreement in this Article X shall be determined by any court of competent jurisdiction to be unenforceable by reason of its extending for too great a period of time or over too great a geographical area or by reason of its being too extensive in any other respect, it shall be interpreted to extend only over the maximum pe
riod of time for which it may be enforceable and/or over the maximum geographical area as to which it may be enforceable and/or to the maximum extent in all other respects as to which it may be enforceable, all as determined by such court in such action.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:72pt; font-size:12pt">From the date hereof until one year following the termination of the Consulting Agreement for the relevant Controlling Shareholder, such Controlling Shareholder shall not (a)&nbsp;solicit, raid, entice, induce or contact, or attempt to solicit, raid, entice, induce or contact, any </P>
<P style="margin-top:0pt; margin-bottom:12pt"><BR>
<BR></P>
<P style="margin:0pt" align=center>47</P>
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<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; font-size:12pt">Person, firm or corporation that is a customer of any Subject Company at the time of the Closing or has been a customer of any Subject Company within the 18 months immediately preceding the Closing (or, during the term of the Consulting Agreement, any Person who is a customer of a Subject Company during such term) for products or services the same as, or competitive with, the Business, or approach any such Person, firm or corporation for such purpose or authorize the taking of such actions by any other Person, firm or corporation or assist or participate with any such Person, firm or corporation in taking such action, or (b)&nbsp;solicit, raid, entice, induce or contact, or attempt to solicit, raid, entice, induce or contact, any Person, firm or corporation that is an employee, agent or consultant of or to such Subject Company within the 18 months immediately preceding the Closing (or, during the term of the Consulting Agreement,
 any Person who is an employee, agent or consultant of a Subject Company during such term) to do anything such Controlling Shareholder is restricted from doing by reason of this Article X, and no Controlling Shareholder shall approach any such employee, agent or consultant for such purpose or authorize or participate with the taking of such actions by any other Person, firm or corporation or assist or participate with any such Person, firm or corporation in taking such action; provided that, notwithstanding anything in this clause&nbsp;(b) to the contrary, this clause&nbsp;(b) shall not relate to the following persons: &nbsp;Edward Breakell, Facilities Project Manager, Rita Dunton, Accountant, Jeanette Finney, Financial Analyst, and Javier Sanchez, Facilities Engineer.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:72pt; font-size:12pt">Each Controlling Shareholder acknowledges that the Confidential Information (as defined below) of each Subject Company is valuable and proprietary to the business of such Subject Company and agrees not to, directly or indirectly, use, publish, disseminate, describe or otherwise disclose any Confidential Information or Developments (as defined below) of such Subject Company without the prior written consent of Buyer and/or its affiliates. &nbsp;For purposes of this Agreement, &#147;<U>Confidential Information</U>&#148; shall mean with respect to each Subject Company, all confidential information of such Subject Company existing at, or, if not in tangible form, arising prior to, the time of the Closing and that is not otherwise publicly disclosed or generally available (other than as a result of a disclosure by such Controlling Shareholder in violation of this Article&nbsp;X), including information entrusted to su
ch Subject Company by others as of such time, and including, without limitation, any such information in the form of: (a) customer lists, lists of potential customers and details of agreements with customers of such Subject Company; (b) acquisition, expansion, marketing, financial and other business information and plans of such Subject Company; (c)&nbsp;research and development of such Subject Company; (d) computer programs and Computer Software of such Subject Company; (e)&nbsp;sources of supplies of such Subject Company; (f)&nbsp;identity of specialized consultants and contractors and Confidential Information developed by them for such Subject Company; (g)&nbsp;purchasing, operating and other cost data of such Subject Company; (h) special customer needs, cost and pricing data of such Subject Company; (i)&nbsp;employee information with respect to such Subject Company, (j)&nbsp;information recorded in manuals, memoranda, projections, minutes, plans, drawings, designs, formula books, specifications, computer
 programs and records of such Subject Company, whether or not legended or otherwise identified as Confidential Information, as well as information that was the subject of meetings and discussions and not so recorded. &nbsp;For purposes of this Agreement, &#147;<U>Developments</U>&#148; shall mean with respect to each Subject Company all data, concepts, ideas, findings, discoveries, developments, programs, designs, inventions, improvements, methods, practices and techniques, whether or not patentable, of such Subject Company existing at, or, if not in tangible form, arising prior to, the time of the Closing and relating to the products, services or activities of such Subject Company at the time of the Closing </P>
<P style="margin-top:0pt; margin-bottom:12pt"><BR>
<BR></P>
<P style="margin:0pt" align=center>48</P>
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<P style="margin:0pt"><BR></P>
<P style="margin:0pt; page-break-before:always"><BR></P>
<P style="margin:0pt"><BR></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; font-size:12pt">or with respect to which such Subject Company has substantial plans for development as of the time of the Closing.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:72pt; font-size:12pt">Each Controlling Shareholder acknowledges that a breach of the covenants contained in this Article X will cause irreparable damage to Buyer, the exact amount of which will be difficult to ascertain, and that the remedies at law for any such breach will be inadequate. &nbsp;Accordingly, each Controlling Shareholder agrees that if such Controlling Shareholder breaches the covenant contained in this Article X in addition to any other remedy that may be available at law or in equity, Buyer shall be entitled to specific performance and injunctive relief, without posting bond or other security.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; font-family:Times New Roman Bold; font-size:12pt" align=center><FONT FACE="Times New Roman Bold"><B>ARTICLE XI.<BR>
<BR>
<A NAME="_Toc454280471"></A><A NAME="_Toc457913354"></A><A NAME="_Toc457913469"></A><A NAME="_Toc457913943"></A><A NAME="_Toc457914254"></A>ACTIONS BY THE SHAREHOLDERS AND BUYER<BR>
AFTER THE CLOSING</B></FONT></P>
<A NAME="_Toc454280472"></A><A NAME="_Toc457913355"></A><A NAME="_Toc457913470"></A><A NAME="_Toc457913944"></A><A NAME="_Toc457914255"></A><P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt"><FONT FACE="Times New Roman">11.1</FONT></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:108pt; font-size:12pt"><U>Books and Records</U>. &nbsp;The Shareholders and Buyer agree that, for a period of seven (7) years following the Closing Date, each will reasonably cooperate with and make available to the other party, during normal business hours, all Books and Records, information and Personnel (without substantial disruption of employment) retained and remaining in existence after the Closing Date that are necessary or useful in connection with the preparation of tax returns for periods prior to the Closing Date and in connection with any tax inquiry, audit, investigation or dispute, any litigation or investigation or any other matter requiring any such Books and Records, information or employees for any reasonable business purpose. &nbsp;The party requesting any such Books and Records, information or Personnel shall bear all of the out-of-pocket costs and expenses (including without limitation, attorneys&#146; fees, but
 excluding reimbursement for salaries and employee benefits) reasonably incurred in connection with providing such Books and Records, information or Personnel. &nbsp;In addition, Buyer will make available to the Shareholders for review or copying, during normal business hours, all books, records and other information relating to 7000 Shoreline Drive, South San Francisco, California or to the ownership thereof, and to Personnel (without substantial disruption of employment) familiar with such books and records for purposes of transitioning the maintenance of such books and records to the Shareholders or their agent, and all out-of-pocket costs and expenses incurred in connection therewith shall be borne by the Shareholders.</P>
<A NAME="_Toc454280473"></A><A NAME="_Toc457913356"></A><A NAME="_Toc457913471"></A><A NAME="_Toc457913945"></A><A NAME="_Toc457914256"></A><P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt">11.2</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:108pt; font-size:12pt"><U>Survival of Representations, Etc</U>. &nbsp;The representations and warranties of the Shareholders and Buyer contained herein shall survive the Closing Date until the third anniversary of the Closing Date; <U>provided</U>, <U>however</U>, that (a)&nbsp;the representations and warranties contained in Section&nbsp;5.16 shall survive until all applicable statute of limitations expires, (b)&nbsp;the representations and warranties contained in Section&nbsp;5.23 shall survive for a period of five (5) years, and (c)&nbsp;the representations and warranties contained in Section&nbsp;5.1(b) shall survive indefinitely.</P>
<A NAME="_Toc454280474"></A><A NAME="_Toc457913357"></A><A NAME="_Toc457913472"></A><A NAME="_Toc457913946"></A><A NAME="_Toc457914257"></A><P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt">11.3</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:108pt; font-size:12pt"><U>Indemnifications</U>.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt">(a)</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:108pt; font-size:12pt"><U>By the Shareholders</U>. &nbsp;From and after the Closing, each Shareholder shall jointly and severally indemnify, save and hold harmless Buyer, its affiliates and subsidiaries, and its and their respective officers, directors, employees, agents and other representatives, from and against any and all costs, losses, liabilities, damages, lawsuits, deficiencies, claims and expenses </P>
<P style="margin-top:0pt; margin-bottom:12pt"><BR>
<BR></P>
<P style="margin:0pt" align=center>49</P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt; page-break-before:always"><BR></P>
<P style="margin:0pt"><BR></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; font-size:12pt">(whether or not arising out of third-party claims), including without limitation, interest, penalties, reasonable attorneys&#146; fees and all amounts paid in investigation, defense or settlement of any of the foregoing (herein, the &#147;<U>Damages</U>&#148;), (1) incurred in connection with or arising out of or resulting from any breach of any representation, warranty, covenant or agreement, or the inaccuracy of any representation or warranty, made by MJ GeneWorks or by any Shareholder in or pursuant to this Agreement (subject to the limitations set forth in Section 11.2), (2) incurred in connection with or arising out of or resulting from the lawsuits between Walter A. Simson and MJ Research (<U>MJ Research, Incorporated, et. al. v. Walter A. Simson</U>, Middlesex Superior Court Civil Action No. 02-3671 and <U>Walter A. Simson v. MJ Research, Incorporated</U>, Middlesex Superior Court Civil Action No. 01-4089F, both in Middles
ex Superior Court) (the &#147;<U>Simson Litigation</U>&#148;), and (3) incurred in connection with or arising out of or resulting from the Senior Executive Dispute. &nbsp;The term &#147;Damages&#148; as used in this Section 11.3 is not limited to matters asserted by third parties against such Subject Company or Buyer, but includes Damages incurred or sustained by such Subject Company or Buyer in the absence of third party claims.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt">(b)</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:108pt; font-size:12pt"><U>By Buyer</U>. &nbsp;Subject to the limitation set forth in Section&nbsp;11.2, from and after the Closing, Buyer shall indemnify and save and hold harmless the Shareholders from and against (1) any and all Damages incurred in connection with or arising out of or resulting from any breach of any representation, warranty, covenant or agreement, or the inaccuracy of any representation or warranty, made by Buyer in or pursuant to this Agreement, (2) subject to the Shareholders&#146; obligations to indemnify Buyer and its affiliates for the inaccuracy or breach of the representation and warranty set forth in the last sentence of Section 5.13, any and all Applera Claims, (3) any and all Damages relating to the Line of Credit, except to the extent incurred in connection with or arising out of or resulting from a breach of the covenants set forth in Section 7.11 or the inaccuracy or breach of the representation and w
arranty set forth in Section&nbsp;5.30, (4)&nbsp;any and all Damages relating to or arising from sales, services or other operations of any Subject Company or their businesses after the Closing Date (but specifically excluding any Damages relating to or arising from sales, services or other operations of any Subject Company or their businesses prior to the Closing Date and with respect to which Shareholders are obligated to indemnify Buyer pursuant to Section&nbsp;11.3(a) or which otherwise represents a breach by the Shareholder of his obligations under this Agreement), (5)&nbsp;any and all Damages incurred in connection with or arising out of or resulting from any claim by the creditors committee or any individual creditor or other person for breach of fiduciary duty, piercing the corporate veil or any other claim of any similar kind or nature originating or derived from conduct in connection with claims based on the same transactions or occurrences as those made in the Applera Litigation or such conduct in
 connection with the negotiation or consummation of the transactions reflected in this Agreement or the Other Transaction Documents, and (6)&nbsp;any and all Damages incurred in connection with or arising out of or resulting from any actions or omissions taken in respect to the termination of the MJ GeneWorks 401(k) Plan in connection with the Closing and/or the Buyer&#146;s distribution of benefits or merger of account balances, provided that such indemnification shall not apply to any liability, tax, penalty, cost or other expense attributable to acts or omissions prior to the Closing other than the adoption of a corporate resolution to terminate the Seller&#146;s 401(k) Plan.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt">(c)</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:108pt; font-size:12pt"><U>Defense of Claims</U>. &nbsp;If any action or proceeding (including any governmental investigation or inquiry) shall be brought or asserted or threatened to be brought or asserted against an indemnified party in respect of which indemnity may be sought from an indemnifying party, such indemnified party shall promptly notify the indemnifying party in </P>
<P style="margin-top:0pt; margin-bottom:12pt"><BR>
<BR></P>
<P style="margin:0pt" align=center>50</P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt; page-break-before:always"><BR></P>
<P style="margin:0pt"><BR></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; font-size:12pt">writing, and the indemnifying party shall assume the defense thereof, including the employment of counsel reasonably satisfactory to such indemnified party and the payment of all expenses. &nbsp;Such indemnified party shall have the right to employ separate counsel in any such action and to participate in the defense thereof, but the fees and expenses of such counsel shall be the expense of such indemnified party unless (i) the indemnifying party has agreed to pay such fees and expenses or (ii) the indemnifying party shall have failed to assume the defense of such action or proceeding or shall have failed to employ counsel reasonably satisfactory to such indemnified party in any such action or proceeding or (iii) the named parties to any such action or proceeding (including any impleaded parties) include both such indemnified party and the indemnifying party, and such indemnified party shall have been advised by counsel that ther
e may be one or more legal defenses available to such indemnified party that are different from or additional to those available to the indemnifying party (in which case, if such indemnified party notifies the indemnifying party in writing that it elects to employ separate counsel at the expense of the indemnifying party, the indemnifying party shall not have the right to assume the defense of such action or proceeding on behalf of such indemnified party, it being understood, however, that the indemnifying party shall not, in connection with any one such action or proceeding or separate but substantially similar or related actions or proceedings in the same jurisdiction arising out of the same general allegations or circumstances, be liable for the reasonable fees and expenses of more than one separate firm of attorneys at any time for such indemnified party and any other indemnified parties, which firm shall be designated in writing to the indemnifying party by such indemnified parties). &nbsp;The indemnify
ing party shall not be liable for any settlement of any such action or proceeding effected without its written consent, but if settled with its written consent (which shall not be unreasonably withheld), or if there be a final judgment for the plaintiff in any such action or proceeding, the indemnifying party agrees to indemnify and hold harmless such indemnified parties from and against any loss or liability by reason of such settlement or judgment. &nbsp;Notwithstanding anything herein to the contrary, Shareholders shall have the right to control the conduct of any audit or proceeding with respect to Taxes involving such Subject Company for any period or periods prior to and including the Closing Date so long as such audit or proceeding either (i)&nbsp;will not result in any Tax being assessed against any Subject Company for the period or periods prior to and including the Closing Date or (ii)&nbsp;the Shareholders have indemnified Buyer against any liabilities for any Tax being assessed against any Subjec
t Company for the period or periods prior to and including the Closing Date.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt">(d)</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:108pt; font-size:12pt"><U>Simson Litigation</U>. &nbsp;In addition, notwithstanding anything herein to the contrary, the Shareholders shall have control of and shall manage the Simson Litigation and the Senior Executive Dispute, and Buyer shall grant or will cause to be granted to the Shareholders, as more fully provided in Section&nbsp;6.9, an irrevocable agreement in the form attached hereto as Exhibit&nbsp;11.3 (the &#147;<U>Simson Agreement</U>&#148;) for the purpose of exercising such right of control and management. &nbsp;All monies derived from the Simson Litigation and the Senior Executive Dispute or the settlement thereof for the benefit of the Subject Companies, if any, shall be paid over to the Shareholders promptly after receipt thereof, but only after deducting from such sum the amounts necessary to fully indemnify Buyer for all out-of-pocket costs and expenses (including without limitation attorneys&#146; fees) of Buyer
 incurred in connection with or arising out of or resulting from the Simson Litigation or the Senior Executive Dispute.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt">(e)</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:108pt; font-size:12pt"><U>Limitation on Indemnity</U>. &nbsp;Notwithstanding the foregoing, the maximum aggregate amount of Damages the Shareholders shall be liable pursuant to this Section 11.3 shall be $10,000,000 in the aggregate (provided, however, that the foregoing limitation on indemnity </P>
<P style="margin-top:0pt; margin-bottom:12pt"><BR>
<BR></P>
<P style="margin:0pt" align=center>51</P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt; page-break-before:always"><BR></P>
<P style="margin:0pt"><BR></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; font-size:12pt">shall not apply for the purpose of indemnification by the Shareholders of Damages incurred in connection with or arising out of or resulting from the Simson Litigation and/or Senior Executive Dispute to the extent such Damages exceed, in the aggregate, $600,000); provided that the maximum aggregate amount of Damages the Shareholders shall be liable pursuant to this Section&nbsp;11.3 with respect to a breach of the representation and warranty contained in clause (y) of Section 5.4(c) as it applies to any and all of the molecular biology reagent products sold or used by Subject Companies shall be $1,000,000.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt">(f)</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:108pt; font-size:12pt"><U>Further Limitation on Shareholder Indemnification</U>. &nbsp;No indemnifying party will have any obligation under to indemnify any person under this Agreement or any related document, (a)&nbsp;until the aggregate combined total of all such Damages incurred by such person exceeds $100,000, whereupon such person shall be entitled to indemnification with respect to Damages incurred by such person in excess of $100,000.</P>
<A NAME="_Toc454280475"></A><A NAME="_Toc457913358"></A><A NAME="_Toc457913473"></A><A NAME="_Toc457913947"></A><A NAME="_Toc457914258"></A><P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt">11.4</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:108pt; font-size:12pt"><U>Further Assurances</U>.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt">(a)</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:108pt; font-size:12pt">Time is of the essence with respect to the Closing.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt">(b)</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:108pt; font-size:12pt">Each of Buyer, the Shareholders and each Subject Company shall use commercially reasonable efforts to take all action and to do all things necessary, proper or advisable to consummate and make effective the transactions contemplated by this Agreement (including, without limitation, satisfying the closing conditions in Articles VIII and IX hereto). &nbsp;Following the Closing, the Shareholders agree to execute such documents and take such actions as may be reasonably requested by Buyer&#146;s counsel and otherwise reasonably cooperate with Buyer and its affiliate and their representatives in connection with any filings required to be made with the Securities and Exchange Commission as a consequence of the transactions contemplated by this Agreement, all at the cost of Buyer. </P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt">(c)</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:108pt; font-size:12pt">The Shareholders and Buyer agree to furnish or cause to be furnished to each other, upon reasonable request, as promptly as practicable, such information and assistance (including access to books and records) relating to each Subject Company as is reasonably necessary for the preparation of any return with respect to Taxes, claim for refund or audit, and the prosecution or defense of any claim, suit or proceeding relating to any proposed adjustment with respect to Taxes, all at the cost of the requesting party. </P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; font-family:Times New Roman Bold; font-size:12pt" align=center><FONT FACE="Times New Roman Bold"><B>ARTICLE XII.<BR>
<BR>
<A NAME="_Toc454280479"></A><A NAME="_Toc457913362"></A><A NAME="_Toc457913477"></A><A NAME="_Toc457913951"></A><A NAME="_Toc457914262"></A>MISCELLANEOUS</B></FONT></P>
<A NAME="_Toc454280480"></A><A NAME="_Toc457913363"></A><A NAME="_Toc457913478"></A><A NAME="_Toc457913952"></A><A NAME="_Toc457914263"></A><P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt"><FONT FACE="Times New Roman">12.1</FONT></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:108pt; font-size:12pt"><U>Termination</U>. &nbsp;</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt">(a)</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:108pt; font-size:12pt">In the event the Closing does not occur on or before the earlier of (i) the date any final and non-appealable judgment is entered in the Applera Litigation or (ii) December 31, 2004, for any reason other than the failure of the Subject Companies or the Shareholders to use commercially reasonable efforts to achieve the Closing as promptly as possible, then, at the option of the Shareholders, this Agreement and the documents executed and delivered in connection herewith shall terminate. &nbsp;Upon such termination, Buyer shall be deemed to pay or otherwise forfeit the $2.5 Million contributed to the Litigation Escrow, which $2.5 Million shall in such case be treated as a signing payment to the Subject Companies for this Agreement and </P>
<P style="margin-top:0pt; margin-bottom:12pt"><BR>
<BR></P>
<P style="margin:0pt" align=center>52</P>
<P style="margin:0pt"><BR></P>
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<P style="margin:0pt"><BR></P>
<P style="margin:0pt; page-break-before:always"><BR></P>
<P style="margin:0pt"><BR></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; font-size:12pt">such related Agreements and the right of Buyer to hold the Subject Companies off the market during the period prior to the Closing. &nbsp;The provisions of this Section&nbsp;12.1 shall survive the termination of this Agreement.</P>
<A NAME="_Toc454280481"></A><A NAME="_Toc457913364"></A><A NAME="_Toc457913479"></A><A NAME="_Toc457913953"></A><A NAME="_Toc457914264"></A><P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt">(b)</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:108pt; font-size:12pt">In the event of termination of this Agreement:</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:108pt; font-size:12pt">(i)</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:144pt; font-size:12pt">Each party will redeliver all documents, work papers and other material of any other party relating to the transactions contemplated hereby, whether so obtained before or after the execution hereof, to the party furnishing the same; provided that outside counsel to each party may maintain, in a secure location in its legal department or with outside counsel, one copy of such materials to be used solely and exclusively for the purpose of demonstrating such party&#146;s compliance with such party&#146;s confidentiality obligations in respect of such information if challenged by the other party, and for no other purpose, and such copy shall be maintained in all respects as confidential by the retaining party and shall not be disclosed to any person, including, without limitation, any employee of Buyer, unless a claim is made by the owing party that the retaining party breached its confidentiality obligation with r
espect to such information, and then only to the persons directly involved in resolving such dispute and only to the extent necessary to resolve such issue; and </P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:108pt; font-size:12pt">(ii)</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:144pt; font-size:12pt">No confidential information received by any party with respect to the business of any other party or its affiliates shall be disclosed to any third party, unless required by law.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt">12.2</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:108pt; font-size:12pt"><U>Assignment</U>. &nbsp;The parties to this Agreement may assign their rights under this Agreement, but not their obligations hereunder, without the prior written consent of all other parties to this Agreement. &nbsp;Without limiting the generality of the foregoing, each Subject Company and the Shareholders agree to the assignment by Buyer of its rights pursuant to this Agreement, including its rights to indemnification, to any affiliate or subsidiary of Buyer and agrees to execute any appropriate agreement or instrument that Buyer may reasonably request in order to effect or evidence such assignment or consent.</P>
<A NAME="_Toc454280482"></A><A NAME="_Toc457913365"></A><A NAME="_Toc457913480"></A><A NAME="_Toc457913954"></A><A NAME="_Toc457914265"></A><P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt">12.3</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:108pt; font-size:12pt"><U>Notices; Transfer of Funds</U>. &nbsp;All notices, requests, demands and other communications which are required or may be given under this Agreement shall be in writing and shall be deemed to have been duly given when received if personally delivered; when transmitted if transmitted by telecopy, electronic or digital transmission method; the day after it is sent, if sent for next day delivery to a domestic address by recognized overnight delivery service (<U>e.g.</U>, Federal Express); and upon receipt, if sent by certified or registered mail, return receipt requested. &nbsp;In each case notice shall be sent to:</P>
<P style="line-height:14pt; margin:0pt; text-indent:72pt; font-size:12pt">If to the Shareholders, to:</P>
<P style="margin:0pt"><BR></P>
<P style="line-height:14pt; margin:0pt; padding-left:108pt; font-size:12pt">John D. Finney<BR>
774 Mays Boulevard #10<BR>
PMB 352<BR>
Incline Village, NV&nbsp; 89451-9613</P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt"><BR>
<BR></P>
<P style="margin:0pt" align=center>53</P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt; page-break-before:always"><BR></P>
<P style="margin:0pt"><BR></P>
<P style="line-height:14pt; margin:0pt; padding-left:72pt; font-size:12pt">and to:</P>
<P style="margin:0pt"><BR></P>
<P style="line-height:14pt; margin:0pt; padding-left:108pt; font-size:12pt">Michael J. Finney<BR>
489 Douglass Street<BR>
San Francisco, CA 94114-2725</P>
<P style="margin:0pt"><BR></P>
<P style="line-height:14pt; margin:0pt; text-indent:72pt; font-size:12pt">In each case with a copy to:</P>
<P style="margin:0pt"><BR></P>
<P style="line-height:14pt; margin:0pt; padding-left:108pt; font-size:12pt">Greenberg Traurig LLC</P>
<P style="line-height:14pt; margin:0pt; padding-left:108pt; font-size:12pt">One International Place, 20<SUP>th</SUP> Floor</P>
<P style="line-height:14pt; margin:0pt; padding-left:108pt; font-size:12pt">Boston, Massachusetts 02110</P>
<P style="line-height:14pt; margin:0pt; padding-left:108pt; font-size:12pt">Attn: &nbsp;Joseph B. Darby, III</P>
<P style="margin:0pt"><BR></P>
<P style="line-height:14pt; margin:0pt; text-indent:72pt; font-size:12pt">If to Buyer, addressed to:</P>
<P style="margin:0pt"><BR></P>
<P style="line-height:14pt; margin:0pt; padding-left:108pt; font-size:12pt">Bio-Rad Laboratories, Inc.</P>
<P style="line-height:14pt; margin:0pt; padding-left:108pt; font-size:12pt">1000 Alfred Nobel Drive</P>
<P style="line-height:14pt; margin:0pt; padding-left:108pt; font-size:12pt">Hercules, California &nbsp;94547</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:108pt; font-size:12pt">Attn: &nbsp;General Counsel</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; font-size:12pt">or to such other place and with such other copies as either party may designate as to itself by written notice to the others.</P>
<A NAME="_Toc454280483"></A><A NAME="_Toc457913366"></A><A NAME="_Toc457913481"></A><A NAME="_Toc457913955"></A><A NAME="_Toc457914266"></A><P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt">12.4</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:108pt; font-size:12pt"><U>Choice of Law; Service of Process</U>. &nbsp;This Agreement shall be construed, interpreted and the rights of the parties determined in accordance with the laws of the State of California without reference to its choice of law provisions, except that the internal governance of any Delaware corporation affected by this Agreement shall be construed, interpreted and the rights of the parties determined in accordance with Delaware General Corporation Law without reference to its choice of law provisions. &nbsp;Each Shareholder irrevocably consents to the service of any and all process in any action or proceeding arising out of or relating to this Agreement by the mailing of copies of such process to the Shareholders of such Shareholder at his address specified in Section 12.3.</P>
<A NAME="_Toc454280485"></A><A NAME="_Toc457913368"></A><A NAME="_Toc457913483"></A><A NAME="_Toc457913957"></A><A NAME="_Toc457914268"></A><P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt">12.5</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:108pt; font-size:12pt"><U>Entire Agreement; Amendments and Waivers</U>. &nbsp;This Agreement, together with all exhibits and schedules hereto and the Other Transaction Documents, constitutes the entire agreement among the parties pertaining to the subject matter hereof and supersedes all prior agreements, understandings, negotiations and discussions, whether oral or written, of the parties. &nbsp;No supplement, modification or waiver of this Agreement shall be binding unless executed in writing by the party to be bound thereby. &nbsp;No waiver of any of the provisions of this Agreement shall be deemed or shall constitute a waiver of any other provision hereof (whether or not similar), nor shall such waiver constitute a continuing waiver unless otherwise expressly provided.</P>
<A NAME="_Toc454280486"></A><A NAME="_Toc457913369"></A><A NAME="_Toc457913484"></A><A NAME="_Toc457913958"></A><A NAME="_Toc457914269"></A><P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt">12.6</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:108pt; font-size:12pt"><U>Multiple Counterparts</U>. &nbsp;This Agreement may be executed in one or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.</P>
<A NAME="_Toc454280487"></A><A NAME="_Toc457913370"></A><A NAME="_Toc457913485"></A><A NAME="_Toc457913959"></A><A NAME="_Toc457914270"></A><P style="margin-top:0pt; margin-bottom:12pt"><BR>
<BR></P>
<P style="margin:0pt" align=center>54</P>
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<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt">12.7</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:108pt; font-size:12pt"><U>Expenses</U>. &nbsp;Each party hereto shall pay its own legal, accounting, out-of-pocket and other expenses incident to this Agreement and to any action taken by such party in preparation for carrying this Agreement into effect. &nbsp;</P>
<A NAME="_Toc454280488"></A><A NAME="_Toc457913371"></A><A NAME="_Toc457913486"></A><A NAME="_Toc457913960"></A><A NAME="_Toc457914271"></A><P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt">12.8</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:108pt; font-size:12pt"><U>Invalidity</U>. &nbsp;In the event that any one or more of the provisions contained in this Agreement or in any other instrument referred to herein, shall, for any reason, be held to be invalid, illegal or unenforceable in any material respect, then to the maximum extent permitted by law, such invalidity, illegality or unenforceability shall not affect any other provision of this Agreement or any other such instrument.</P>
<A NAME="_Toc454280489"></A><A NAME="_Toc457913372"></A><A NAME="_Toc457913487"></A><A NAME="_Toc457913961"></A><A NAME="_Toc457914272"></A><P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt">12.9</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:108pt; font-size:12pt"><U>Titles</U>. &nbsp;The titles, captions or headings of the Articles and Sections herein are inserted for convenience of reference only and are not intended to be a part of or to affect the meaning or interpretation of this Agreement.</P>
<A NAME="_Toc454280490"></A><A NAME="_Toc457913373"></A><A NAME="_Toc457913488"></A><A NAME="_Toc457913962"></A><A NAME="_Toc457914273"></A><P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt">12.10</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:108pt; font-size:12pt"><U>Publicity</U>. &nbsp;No party shall issue any press release or make any public statement regarding the transactions contemplated hereby, without the prior approval of the other party, and the parties hereto shall issue a mutually acceptable press release as soon as practicable after the execution and delivery of this Agreement; <U>provided</U>, <U>however</U>, that nothing herein shall be deemed to prohibit any party from making any disclosure which its counsel deems necessary in order to fulfill such party&#146;s disclosure obligations imposed by law.</P>
<A NAME="_Toc454280491"></A><A NAME="_Toc457913374"></A><A NAME="_Toc457913489"></A><A NAME="_Toc457913963"></A><A NAME="_Toc457914274"></A><P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt">12.11</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:108pt; font-size:12pt"><U>Burden and Benefit</U>. &nbsp;This Agreement shall be binding upon and shall inure to the benefit of, the parties hereto and their respective successors and permitted assigns. &nbsp;There are no third party beneficiaries of this Agreement; <U>provided</U>, <U>however</U>, that any person that is not a party to this Agreement but, by the terms of Section 11.3, is entitled to indemnification, shall be considered a third party beneficiary of this Agreement, with full rights of enforcement as though such person was a signatory to this Agreement.</P>
<A NAME="_Toc454280492"></A><A NAME="_Toc457913375"></A><A NAME="_Toc457913490"></A><A NAME="_Toc457913964"></A><A NAME="_Toc457914275"></A><P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt">12.12</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:108pt; font-size:12pt"><U>Cumulative Remedies</U>. &nbsp;All rights and remedies of either party hereto are cumulative of each other and of every other right or remedy such party may otherwise have at law or in equity, and the exercise of one or more rights or remedies shall not prejudice or impair the concurrent or subsequent exercise of other rights or remedies.</P>
<P style="margin-top:0pt; margin-bottom:12pt"><BR></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; font-size:12pt" align=center>[SIGNATURE(S) APPEAR ON THE FOLLOWING PAGE(S).]</P>
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<P style="margin:0pt" align=center>55</P>
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<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:36pt; font-size:12pt">IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed on their respective behalf, by their respective officers thereunto duly authorized, all as of the day and year first above written.</P>
<P style="line-height:14pt; margin:0pt; padding-left:216pt; font-size:12pt"><B>BUYER:</B></P>
<P style="margin:0pt"><BR></P>
<P style="line-height:14pt; margin:0pt; padding-left:216pt; font-size:12pt">BIO-RAD LABORATORIES, INC.</P>
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<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:216pt; font-size:12pt">By:</P>
<P style="line-height:14pt; margin:0pt; padding-left:216pt; text-indent:45pt; font-size:12pt"><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;/s/ Sanford S. Wadler</U></P>
<P style="line-height:14pt; margin:0pt; padding-left:234pt; padding-right:36pt; font-size:12pt">Sanford S. Wadler, Vice President and General Counsel</P>
<P style="margin:0pt"><BR></P>
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<P style="line-height:14pt; margin:0pt; padding-left:216pt; font-size:12pt"><B>COMPANY:</B></P>
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<P style="line-height:14pt; margin:0pt; padding-left:216pt; font-size:12pt">MJ GENEWORKS, INCORPORATED</P>
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<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:216pt; font-size:12pt">By:</P>
<P style="line-height:14pt; margin:0pt; padding-left:216pt; text-indent:45pt; font-size:12pt"><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;/s/ John D. Finney</U></P>
<P style="line-height:14pt; margin:0pt; padding-left:216pt; font-size:12pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;John D. Finney, President</P>
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<P style="line-height:14pt; margin:0pt; padding-left:216pt; font-size:12pt"><B>SHAREHOLDERS:</B></P>
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<P style="line-height:14pt; margin:0pt; padding-left:216pt; text-indent:67.5pt; font-size:12pt"><U>/s/ John D. Finney</U></P>
<P style="line-height:14pt; margin:0pt; padding-left:216pt; font-size:12pt">JOHN D. FINNEY</P>
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<P style="line-height:14pt; margin:0pt; padding-left:216pt; text-indent:58.5pt; font-size:12pt"><U>/s/ Michael J. Finney</U></P>
<P style="line-height:14pt; margin:0pt; padding-left:216pt; font-size:12pt">MICHAEL J. FINNEY</P>
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<P style="line-height:13pt; margin:0pt; font-size:11pt" align=right><FONT FACE="Times New Roman" COLOR=#000000><U>Exhibit 10.14</U></FONT></P>
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<P style="line-height:18pt; margin:0pt; font-size:16pt" align=center>CONNECTICUT SETTLEMENT AGREEMENT</P>
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<P style="line-height:14pt; margin:0pt; text-indent:36pt; font-size:12pt" align=justify>This Connecticut Settlement Agreement (this &#147;Agreement&#148;), effective as of February 9, 2006 (the &#147;Effective Date&#148;), is entered into by and between MJ Research, Inc., a Massachusetts corporation with offices at 590 Lincoln Street, Waltham, Massachusetts 02451 (&#147;MJ Research&#148;), John Finney, an individual residing at 774 Mays Boulevard #10, PMB 352, Incline Village, NV 89451-9613, Michael Finney, an individual residing at &nbsp;489 Douglass Street, San Francisco, CA 94114-2725, MJ Bioworks, Inc., a Delaware corporation &nbsp;with offices at 384 Oyster Point Blvd. #8, South San Francisco, California, MJ Geneworks, Inc., a Wisconsin corporation with offices at &nbsp;1100 Dallas Street, Sauk City, Wisconsin, Bio-Rad Laboratories, Inc., a Delaware corporation with offices at 1000 Alfred Nobel Drive, Hercules, CA 94547 (&#147;Bio-Rad&#148;) and its and their Affiliates (as defined below) (each of the f
oregoing an &#147;MJ Party&#148; and, collectively, &#147;the MJ Parties&#148;), on the one hand, and Applera Corporation, a Delaware corporation with offices at 850 Lincoln Centre Drive, Foster City, California 94404 (&#147;Applera&#148;) and Roche Molecular Systems, Inc., a Delaware corporation with offices at 4300 Hacienda Drive, Pleasanton, California 94588 (&#147;Roche&#148;), on the other hand. &nbsp;&nbsp;Each of Applera, Roche and the MJ Parties are referred to hereafter as a &#147;Party&#148; and, collectively, as &#147;Parties.&#148;</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin:0pt; text-indent:36pt; font-size:12pt" align=justify>WHEREAS, on April 2, 2004, the jury, in the proceeding entitled <U>Applera Corporation, et al. v. MJ Research, Inc. et al</U>, Case No. 3-98-CV-1201 pending in the United States District Court for the District of Connecticut rendered a verdict (hereinafter, the &#147;Verdict&#148;) in Phase I of the trial finding, among other things, that (i) defendants induced infringement of U.S. Patent Nos. 4,683,195; 4,683,202, 4,965,188 (collectively, the &#147;PCR Process Patents&#148;); as well as U.S. Patent Nos. 5,333,675; 5,656,493 and 5,475,610, and directly and contributorily infringed U.S. Patent No. 5,333,675 and 5,475,610, and (ii) defendants&#146; inducement of infringement of the PCR Process Patents &nbsp;and 5,656,493 was willful. &nbsp;The jury&#146;s verdict was entered on April 15, 2004; </P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:36pt; font-size:12pt" align=justify>WHEREAS, the Court&#146;s construction of that Verdict was entered on April 28, 2004, finding that all three Defendants are jointly and severally liable for the total award; </P>
<P style="line-height:14pt; margin:0pt; text-indent:36pt; font-size:12pt" align=justify>WHEREAS, the District Court has granted summary judgment in favor of the plaintiffs in the Connecticut Litigation (as defined herein) on all of defendants&#146; defenses and counterclaims alleging patent misuse and violations of state and federal antitrust laws and unfair trade or competition laws, and dismissed all of defendants&#146; counterclaims based thereon; </P>
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<P style="line-height:14pt; margin:0pt; text-indent:36pt; font-size:12pt" align=justify>WHEREAS, on or before August 18, 2004 Bio-Rad succeeded to the interests of MJ Research and its Affiliates by acquiring MJ Geneworks, Inc., and its subsidiaries including MJ Research;</P>
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<P style="line-height:14pt; margin:0pt; font-size:12pt" align=center>1</P>
<P style="margin:0pt">Legend:</P>
<P style="margin:0pt">[**] This material has been omitted pursuant to a request for confidential treatment. &nbsp;The material has been filed separately with the Commission.</P>
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<P style="line-height:14pt; margin:0pt; text-indent:36pt; font-size:12pt" align=justify>WHEREAS, on March 30, 2005 the District Court, entered judgement against the defendants in the Connecticut Litigation and awarded the plaintiffs enhanced damages for the defendants&#146; willful infringement;</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin:0pt; text-indent:36pt; font-size:12pt" align=justify>WHEREAS, on March, 28, 2005, the PCR Process Patents expired;</P>
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<P style="line-height:14pt; margin:0pt; text-indent:36pt; font-size:12pt" align=justify>WHEREAS, on August 29, 2005 the District Court entered an order amending the judgment to include prejudgment interest in the amount of $961,218.55;</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin:0pt; text-indent:36pt; font-size:12pt" align=justify>WHEREAS, on August 30, 2005 <A NAME="OLE_LINK1"></A><A NAME="OLE_LINK2"></A>the District Court entered an injunction against the defendants, permanently enjoining the defendants from further infringement of U.S. Patent Nos. 5,333,675; 5,656,493 and 5,475,610 (such injunction, the &#147;Injunction&#148;); and</P>
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<P style="line-height:14pt; margin:0pt; text-indent:36pt; font-size:12pt" align=justify>WHEREAS, Applera and Roche, but for this Agreement, would continue to pursue the Connecticut Litigation by, among other things, Applera enforcing the Injunction, pursuing sanctions, and Applera and Roche pursuing attorney&#146;s fees and post-judgment interest; </P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin:0pt; text-indent:36pt; font-size:12pt" align=justify>WHEREAS the Parties desire to settle completely and for all time any and all disputes or differences between them regarding any matters which are the subject of litigations currently pending among the MJ Parties, on the one hand, and Applera and Roche, on the other hand, as set forth herein, arising out of PCR technology, the patenting of PCR technology, or the licensing of PCR technology; </P>
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<P style="line-height:14pt; margin:0pt; text-indent:36pt; font-size:12pt" align=justify>WHEREAS, as part of the settlement hereunder, the Parties have agreed upon a CONSENT JUDGMENT AND PERMANENT INJUNCTION that the Parties will move to have entered in United States District Court for the District of Connecticut; </P>
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<P style="line-height:14pt; margin:0pt; text-indent:36pt; font-size:12pt" align=justify>WHEREAS as part of the settlement hereunder, Bio-Rad for itself and its affiliated entities including MJ Research have entered into an Amended and Restated Thermal Cycler Supplier Agreement with Applera dated of even date herewith; </P>
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<P style="line-height:14pt; margin:0pt; text-indent:36pt; font-size:12pt" align=justify>WHEREAS certain disputes between Applera and Bio-Rad relating to real-time PCR instrumentation and related technology are the subject of a separate settlement agreement and real-time PCR instrumentation license agreement entered into of even date herewith; and</P>
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<P style="line-height:14pt; margin:0pt; text-indent:36pt; font-size:12pt" align=justify>WHEREAS certain disputes between Applera and Bio-Rad relating to capillary electrophoresis instrumentation and related technology are the subject of a separate settlement agreement and license agreement entered into of even date herewith.</P>
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<P style="line-height:14pt; margin:0pt; text-indent:36pt; font-size:12pt" align=justify>NOW, THEREFORE, in consideration of the promises set forth herein and other good and valuable consideration the sufficiency and receipt of which is hereby acknowledged, the Parties agree as follows.</P>
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<P style="line-height:14pt; margin:0pt; font-size:12pt" align=center>2</P>
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<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:27pt; text-indent:-9pt; font-size:12pt" align=justify>I.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:27pt; font-size:12pt" align=justify>DEFINITIONS</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:18pt; font-size:12pt" align=justify>Terms when used herein with initial capital letters shall have the respective meanings set forth below or as otherwise defined in this Agreement.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:72pt; text-indent:-18pt; font-size:12pt" align=justify>a.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:72pt; font-size:12pt" align=justify>&quot;Affiliate&quot; means, with respect to a Party, any Person that, directly or indirectly, through one or more intermediaries, controls, is controlled by, or is under common control with, such Party; where &#147;control&#148; refers to (i) the ownership, directly or indirectly, of the lesser of at least fifty percent (50%) or the highest percentage permitted by applicable law of the voting securities or other ownership interests of a Person (or Party) or (ii) otherwise the ability to direct the management of such Person (or Party).</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:72pt; text-indent:-18pt; font-size:12pt" align=justify>b.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:72pt; font-size:12pt" align=justify>&nbsp;&#147;California Litigation&#148; refers to the proceeding entitled <U>Hoffman-La Roche, Inc., et al. v. Promega Corp</U>., CA No. 93-1748, previously pending in the United States District Court for the Northern District of California.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:72pt; text-indent:-18pt; font-size:12pt" align=justify>c.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:72pt; font-size:12pt" align=justify>&#147;CE Litigation&#148; shall mean the proceeding entitled <I>Bio-Rad Laboratories, Inc. v. Applera Corporation</I>, Case No. C02-5946 JW pending in the United States District Court for the Northern District of California.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:72pt; text-indent:-18pt; font-size:12pt" align=justify>d.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:72pt; font-size:12pt" align=justify>&#147;Connecticut Litigation&#148; shall mean the proceeding entitled <U>Applera Corporation et al. v. MJ Research, Inc.</U>, Case No. 3-98-CV-1201, pending in the United States District Court for the District of Connecticut (the &#147;District Court&#148;) and Appeal Nos. 06-1007, 06-1008, 06-1030 in the United States Court of Appeals for the Federal Circuit.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:72pt; text-indent:-18pt; font-size:12pt" align=justify>e.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:72pt; font-size:12pt" align=justify>&#147;Consent Judgment&#148; shall mean the Consent Judgment and Permanent Injunction attached hereto as Exhibit A.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:72pt; text-indent:-18pt; font-size:12pt" align=justify>f.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:72pt; font-size:12pt" align=justify>&#147;District Court&#148; shall have the meaning set forth in part [d] of this Article I.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:72pt; text-indent:-18pt; font-size:12pt" align=justify>g.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:72pt; font-size:12pt" align=justify>&#147;Effective Date&#148; shall have the meaning set forth in the preamble hereto.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:72pt; text-indent:-18pt; font-size:12pt" align=justify>h.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:72pt; font-size:12pt" align=justify>&#147;Litigations&#148; shall mean one or more of the California Litigation, the Connecticut Litigation, the Promega Litigation, the Qui Tam Litigation, the MD Labs Litigation, the Wisconsin Litigation or other litigation identified in this Agreement.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:72pt; text-indent:-18pt; font-size:12pt" align=justify>i.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:72pt; font-size:12pt" align=justify>&#147;MD Labs Litigation&#148; shall mean the proceeding entitled <U>Molecular Diagnostics Laboratories v. Hoffman-La Roche, Inc., et al.</U>, Case No. 1: 04CV01649, pending in the United States District Court for the District of Columbia.</P>
<P style="margin-top:0pt; margin-bottom:12pt" align=justify><BR>
<BR></P>
<P style="line-height:14pt; margin:0pt; font-size:12pt" align=center>3</P>
<P style="line-height:10pt; margin:0pt"><BR></P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt; page-break-before:always" align=center><BR></P>
<P style="margin:0pt"><BR></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:72pt; text-indent:-18pt; font-size:12pt" align=justify>j.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:72pt; font-size:12pt" align=justify>&#147;MJ Obligations&#148; shall have the meaning set forth in Article 8 herein.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:72pt; text-indent:-18pt; font-size:12pt" align=justify>k.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:72pt; font-size:12pt" align=justify>&#147;Patents-in-Suit&#148; shall have the meaning set forth in Article 15 herein.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:72pt; text-indent:-18pt; font-size:12pt" align=justify>l.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:72pt; font-size:12pt" align=justify>&#147;Person&#148; shall mean any individual, group, corporation, partnership, limited liability company, joint venture, association or other organization or entity (including, without limitation, any governmental agency or political subdivision thereof).</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:72pt; text-indent:-18pt; font-size:12pt" align=justify>m.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:72pt; font-size:12pt" align=justify>&#147;Promega Litigation&#148; shall mean the proceeding entitled <U>United States of America, ex rel. Promega Corporation v. Hoffman-La Roche</U>, Case No. 03-CV-1447, previously pending in the United States District Court for the Eastern District of Virginia.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:72pt; text-indent:-18pt; font-size:12pt" align=justify>n.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:72pt; font-size:12pt" align=justify>&#147;Real-Time License Agreement&#148; shall mean the Real-Time License Agreement entered into between Bio-Rad and Applera concurrently with this Agreement.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:72pt; text-indent:-18pt; font-size:12pt" align=justify>o.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:72pt; font-size:12pt" align=justify>&#147;Real-Time PCR Litigation&#148; shall mean the proceeding entitled <I>Applera Corporation v. Bio-Rad Laboratories et al.</I>, Case No. 3:04-cv-01881-RNC pending in the United States District Court for the District of Connecticut.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:72pt; text-indent:-18pt; font-size:12pt" align=justify>p.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:72pt; font-size:12pt" align=justify>&#147;Settlement Payment&#148; shall have the meaning set forth in Article 3 herein.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:72pt; text-indent:-18pt; font-size:12pt" align=justify>q.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:72pt; font-size:12pt" align=justify>&#147;TCSA&#148; shall mean the Amended and Restated Thermal Cycler Supplier Agreement entered into between Bio-Rad, MJ Research and Applera of even date herewith.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:72pt; text-indent:-18pt; font-size:12pt" align=justify>r.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:72pt; font-size:12pt" align=justify>&#147;Wisconsin Litigation&#148; refers to the proceeding entitled <U>Promega v. Applera et al.</U>, 01-C-0244-C previously pending in the United States District Court for the Western District of Wisconsin.</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:27pt; text-indent:-9pt; font-size:12pt" align=justify>II.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:27pt; text-indent:9pt; font-size:12pt" align=justify>CONSENT JUDGMENT</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:18pt; font-size:12pt" align=justify>The Parties hereby agree to the Consent Judgment and will within five (5) business days after the date of execution of this Agreement submit the Consent Judgment to the District Court for entry in the Connecticut Litigation. Each of Applera and Roche shall have the right to rescind this Agreement and Applera shall have the right to rescind the TCSA if the Consent Judgment is not entered by the District Court without modification, unless any such proposed modification is acceptable to Applera and Roche. &nbsp;Without limiting the Consent Judgment, or the obligations, covenants, representations and warranties of the MJ Parties under this Agreement, the MJ Parties agree that the statements set forth on Exhibit B (such statements, collectively, the &#147;Stipulated Facts&#148;) hereto are true and accurate and shall have the same force and effect as if made in the Consent Judgment. &nbsp;The MJ Partie
s (for themselves and their </P>
<P style="margin-top:0pt; margin-bottom:12pt" align=justify><BR>
<BR></P>
<P style="line-height:14pt; margin:0pt; font-size:12pt" align=center>4</P>
<P style="line-height:10pt; margin:0pt"><BR></P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt; page-break-before:always" align=center><BR></P>
<P style="margin:0pt"><BR></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:18pt; font-size:12pt" align=justify>officers, directors, principals, agents, shareholders, successors and assigns) each agree and acknowledge that the Consent Judgment and this Agreement (and all obligations under the Consent Judgment and this Agreement) are fully effective and enforceable by their terms and that the MJ Parties (individually and collectively) have no claims, defenses, offsets or counterclaims to the Consent Judgment or this Agreement (or any obligations under the Consent Judgment or the Agreement). &nbsp;For the avoidance of doubt, even though certain of the MJ Parties were not signatories to the Consent Judgment, all of the MJ Parties hereby agree to be bound by the terms thereof in the same manner as the MJ Parties that are signatories to the Consent Judgment.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:27pt; text-indent:-9pt; font-size:12pt" align=justify>III.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:27pt; text-indent:9pt; font-size:12pt" align=justify>SETTLEMENT PAYMENT</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:18pt; font-size:12pt" align=justify>The MJ Parties each acknowledge and agree that MJ Research, John Finney and Michael Finney have agreed to the Consent Judgment and that, pursuant to that Consent Judgment, the MJ Parties must pay to Applera and Roche (in the proportions set forth in Article 6) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[**] &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;plus interest accruing from &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[**] &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;at a rate of the &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[**] &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;interest compounded annually or the maximum rate permitted under applicable law (collectively, the &#147;Settlement Payment&#148;), in accordance with the terms set forth in Article 6 of this Agreement. &nbsp;The MJ Parties each acknowledge that they are jointly and severally liable for full payment of the Settlement Payment.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:27pt; text-indent:-9pt; font-size:12pt" align=justify>IV.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:27pt; text-indent:9pt; font-size:12pt" align=justify>SOLVENCY OF PAYOR</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:18pt; font-size:12pt" align=justify>Each of the MJ Parties represents, warrants and covenants that: &nbsp;(i) there are no other cases or proceedings pending under the United States Bankruptcy Code or any other similar state or federal insolvency, reorganization or receivership laws involving any of the MJ Parties; (ii) none of the MJ Parties has any reason to seek relief under the United States Bankruptcy Code or any other similar state or federal insolvency, reorganization, receivership or similar laws; (iii) none of the MJ Parties has any present intention to seek relief in the future under the United States Bankruptcy Code or any other similar state or federal insolvency, reorganization, receivership or similar laws; (iv) none of the MJ Parties is insolvent, as defined in the United States Bankruptcy Code or any applicable state or federal statute, nor will any of the MJ Parties be rendered insolvent by the execution, delivery a
nd performance of this Agreement; (v) upon the performance of the obligations under this Agreement, each of the MJ Parties will have the financial wherewithal to pay such MJ Party&#146;s debts as and when they become due; (vi) none of the MJ Parties intends to, nor does such MJ Party believe that such MJ Party will, incur debts beyond its ability to pay such debts as they mature; (vii) none of the MJ Parties presently has nor will have unreasonably small capital to conduct its business after the execution of this Agreement and the performance of its obligations (including payment of the Settlement Payment) under this Agreement; and (viii) without limiting the MJ Parties joint and several liability for the same, the Settlement Payment will be paid, pursuant to Article 6, entirely by Bio-Rad without the financial contribution of any of the other MJ Parties.</P>
<P style="margin-top:0pt; margin-bottom:12pt" align=justify><BR>
<BR></P>
<P style="line-height:14pt; margin:0pt; font-size:12pt" align=center>5</P>
<P style="line-height:10pt; margin:0pt"><BR></P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt; page-break-before:always" align=center><BR></P>
<P style="margin:0pt"><BR></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:27pt; text-indent:-9pt; font-size:12pt" align=justify>V.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:27pt; text-indent:9pt; font-size:12pt" align=justify>SETTLEMENT PAYMENT NOT IN SATISFACTION OF FUTURE OBLIGATIONS OR FUTURE INFRINGEMENT.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:18pt; font-size:12pt" align=justify>For the avoidance of doubt, none of the Settlement Payment is in satisfaction of, nor shall be creditable against (i) any payment obligations (including, without limitation royalties) due pursuant to the TCSA; (ii) any payment obligations under other agreements (including without limitation the Real-Time License Agreement) entered into between any of the MJ Parties, on the one hand, and Applera or Roche, on the other hand; or (iii) claims of Applera or Roche for future infringement by the MJ Parties of Applera&#146;s or Roche&#146;s intellectual property rights. &nbsp;The MJ Parties acknowledge and agree that they each have received new consideration of reasonably equivalent value in exchange for the Settlement Payment consisting of, among other things, (a) the compromises and settlements set forth herein and in the Consent Judgment; (b) Applera's agreement to forebear enforcing the Injunction and
 the injunctive relief provision set forth in paragraph 15 of the Consent Judgment against the defendant MJ Parties in the Connecticut Litigation; and (c) Applera&#146;s agreement to enter into the TCSA (that, for the avoidance of doubt, Applera otherwise has no obligation to do).</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:27pt; text-indent:-9pt; font-size:12pt" align=justify>VI.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:27pt; text-indent:9pt; font-size:12pt" align=justify>AVOIDANCE</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:18pt; font-size:12pt" align=justify>Within within five (5) business days of the Effective Date, Bio-Rad shall pay the Settlement Payment to Applera and Roche in full via wire transfer as per the instructions and payment allocation set forth in this Article. &nbsp;In the event that (i) Bio-Rad fails to timely pay all of the Settlement Payment or (ii) any part of the Settlement Payment or any other MJ Obligation (as defined below) is subsequently invalidated, declared to be fraudulent, a fraudulent conveyance or preferential, set aside and/or required to be repaid to a trustee, receiver, debtor-in-possession or any other party under any bankruptcy law, state or federal law, common law or equitable cause (the foregoing events in parts (i) and (ii) individually and collectively, an &quot;Avoidance&quot;), then the MJ Parties shall be deemed to be in material breach of this Agreement and, without limiting Applera&#146;s or Roche&#146;s o
ther legal or equitable remedies, Applera shall have the right to enforce the &nbsp;Injunction and obtain other injunctive relief provided under the Consent Judgment against the MJ Parties.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:36pt; font-size:12pt" align=justify>Roche&#146;s share of the Settlement Payment and other back royalty obligations (e.g., for the MJ Parties&#146; infringing activities prior to the Effective Date of this Agreement) under the TCSA is &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[**] &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;and shall be paid in accordance with the following wire transfer instructions:</P>
<TABLE style="font-size:10pt" cellspacing=0><TR><TD width=221.4></TD><TD width=221.4></TD></TR>
<TR><TD valign=top width=295.2><P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; font-size:12pt" align=justify>Bank:</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt" align=justify>&nbsp;</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:144pt; font-size:12pt" align=justify>&nbsp;</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:216pt; font-size:12pt" align=justify>&nbsp;</P>
</TD><TD valign=top width=295.2><P style="margin:0pt; font-size:12pt">[**]</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt">&nbsp;</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:144pt; font-size:12pt">&nbsp;</P>
<P style="margin:0pt; text-indent:216pt; font-size:12pt">&nbsp;</P>
<P style="margin:0pt; padding-left:36pt; text-indent:36pt; font-size:12pt">&nbsp;</P>
<P style="margin:0pt; font-size:12pt">&nbsp;</P>
<P style="margin:0pt; text-indent:72pt; font-size:12pt">&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD></TR>
</TABLE>
<P style="margin-top:0pt; margin-bottom:12pt" align=justify><BR>
<BR></P>
<P style="line-height:14pt; margin:0pt; font-size:12pt" align=center>6</P>
<P style="line-height:10pt; margin:0pt"><BR></P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt; page-break-before:always" align=center><BR></P>
<P style="margin:0pt"><BR></P>
<BR></P>
<TABLE style="font-size:10pt" cellspacing=0><TR><TD width=221.4></TD><TD width=221.4></TD></TR>
<TR><TD valign=top width=295.2><P style="margin:0pt"><BR></P>
<P style="margin:0pt; text-indent:36pt; font-size:12pt">[**]</P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt; font-size:12pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; font-size:12pt" align=justify>&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=top width=295.2>&nbsp;</TD></TR>
</TABLE>
<P style="margin-top:0pt; margin-bottom:12pt" align=justify><BR></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:36pt; font-size:12pt" align=justify>Applera&#146;s share of the Settlement Payment shall be the remaining &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[**] &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;and shall be paid in accordance with the following wire transfer instructions:</P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt; padding-left:36pt; font-size:12pt">[**]</P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt"><BR></P>
<P style="margin-top:0pt; margin-bottom:12pt" align=justify><BR></P>
<P style="margin-top:0pt; margin-bottom:12pt" align=justify><BR></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:27pt; text-indent:-9pt; font-size:12pt" align=justify>VII.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:27pt; text-indent:45pt; font-size:12pt" align=justify>THERMAL CYCLER SUPPLIER AGREEMENT</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:18pt; font-size:12pt" align=justify>Concurrently with this Agreement, Bio-Rad and Applera shall execute the TCSA. &nbsp;For the avoidance of doubt, Applera&#146;s entering into the TCSA with Bio-Rad is predicated upon and in reliance upon the MJ Parties' representations, warranties and covenants herein. &nbsp;The MJ Parties hereby acknowledge and agree that the TCSA is intended by Applera and Bio-Rad to be, and is, personal in nature, and that, except as expressly permitted under the terms of the TCSA, Bio-Rad&#146;s rights and obligations under the TCSA are non-delegable and non-assignable and that such agreements cannot be assumed or assumed and assigned by a trustee or debtor-in-possession in bankruptcy as set forth in section 365(c)(1) of the Bankruptcy Code or any similar provisions of state or federal law. &nbsp;For the avoidance of doubt, MJ Parties that are not expressly identified in the TCSA as licensees are neither licens
ed thereunder nor third party beneficiaries of the TCSA. </P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:27pt; text-indent:-9pt; font-size:12pt" align=justify>VIII.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:27pt; text-indent:45pt; font-size:12pt" align=justify>MATERIAL BREACH; CONSEQUENCES OF MATERIAL BREACH</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:18pt; font-size:12pt" align=justify>In addition to any other possible material breaches, the MJ Parties each agree and covenant that any breach of a representation, warranty or covenant made herein by any one or more of them is a material breach of this Agreement by all of the MJ Parties. &nbsp;Any material breach by Bio-Rad or MJ Research (or termination by Applera for cause) of the TCSA (which breach is not cured within the time frame allowed for cure under the TCSA) shall constitute a material breach by the MJ Parties of this Agreement and conversely any material breach of this Agreement by the Bio-Rad or MJ Parties shall constitute a material breach of the TCSA by MJ Research. &nbsp;Without </P>
<P style="margin-top:0pt; margin-bottom:12pt" align=justify><BR>
<BR></P>
<P style="line-height:14pt; margin:0pt; font-size:12pt" align=center>7</P>
<P style="line-height:10pt; margin:0pt"><BR></P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt; page-break-before:always" align=center><BR></P>
<P style="margin:0pt"><BR></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:18pt; font-size:12pt" align=justify>limiting Applera&#146;s other legal or equitable remedies, upon any such material breach, Applera shall have the right to enforce the Consent Judgment in its entirety against each and all of the MJ Parties. &nbsp;Each and all of the MJ Parties hereby, jointly and severally, unconditionally and irrevocably, guarantee to Applera and Roche and its and their successors and assigns, the prompt and complete payment and performance when due of the Settlement Payment, the other obligations and liabilities of the MJ Parties under this Agreement. &nbsp;Each and all of the MJ Parties, excluding Michael Finney and John Finney, hereby, jointly and severally, unconditionally and irrevocably, guarantee to Applera and Roche and its and their successors and assigns, the prompt and complete payment and performance when due of the obligations and liabilities of Bio-Rad under the TCSA and all related obligations and 
liabilities, absolute or contingent, due or that become due (all of the foregoing payments, obligations and liabilities recited in the preceding two sentences, collectively, the &#147;MJ Obligations&#148;). &nbsp;In the event of the Avoidance of any part of the Settlement Payment or any other MJ Obligation or any breach by the MJ Parties of the MJ Obligations, (i) the TCSA shall immediately and automatically terminate without notice or any further or other action by Applera; (ii) this Agreement shall immediately terminate without notice or any further or other action by Applera or Roche and Applera and Roche shall have no further or other obligations under this Agreement; and (iii) either or both of Applera and Roche may immediately pursue any and all of their respective rights, remedies, claims and causes of action against each of the MJ Parties under this Agreement, and Applera may immediately enforce the Injunction and Applera may also immediately pursue all of its other remedies under the Consent Judgmen
t &nbsp;(including, without limitation, any injunctive relief thereunder), or applicable law. &nbsp;Notwithstanding anything herein to the contrary, only Applera and its successors and assigns shall have the right to enforce the Injunction or pursue injunctive relief or other remedies or causes of action (whether or not under this Agreement or the Consent Judgment) under, or for the MJ Parties&#146; infringement of, patents owned by Applera or for the MJ Parties&#146; failure to pay royalties to Applera under the TCSA or other license agreements with Applera. &nbsp;</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:27pt; text-indent:-9pt; font-size:12pt" align=justify>IX.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:27pt; text-indent:9pt; font-size:12pt" align=justify>WITHDRAWAL FROM OPPOSITIONS; SUSPENSION OF FOREIGN PROCEEDINGS</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:18pt; font-size:12pt" align=justify>The MJ Parties shall promptly (within ten (10) days from the Effective Date) withdraw their oppositions (and the MJ Parties shall neither reinstate nor participate or render assistance to other parties in any such opposition and/or nullity/revocation actions against the respective national parts) of European Patent Nos. EP 810030 and EP 1157744. &nbsp;Applera shall withdraw, pursuant to German Civil Procedure Code (ZPO) Section 269, its complaint in the D&#252;sseldorf District Court case no. 4a O 64/04 (EP 812621) against the MJ Parties and Biozym. The MJ Parties and Biozym shall withdraw pursuant to German Civil Procedure Code (ZPO) Section 269, their appeal (I-2 U 56/05) against the judgment of the D&#252;sseldorf District Court dated April 14, 2005 in case no. 4a O 234/03. The MJ Parties will agree, and cause Biozym to agree, to the withdrawal and &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbs
p;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
<P style="margin-top:0pt; margin-bottom:12pt" align=justify><BR>
<BR></P>
<P style="line-height:14pt; margin:0pt; font-size:12pt" align=center>8</P>
<P style="line-height:10pt; margin:0pt"><BR></P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt; page-break-before:always" align=center><BR></P>
<P style="margin:0pt"><BR></P>
<P style="line-height:14pt; margin:0pt; padding-left:27.35pt; text-indent:195.1pt; font-size:12pt" align=justify>[**] &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:27pt; font-size:12pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subject to the MJ Parties compliance with the terms and conditions of this Agreement and so long as Bio-Rad and MJ Research are licensed in good standing under the TCSA, Applera agrees to forebear enforcing the injunction and judgment rendered by the D&#252;sseldorf District Court dated April 14, 2005 in case no. 4a O 234/03. &nbsp;Applera shall within ten (10) days after the Effective Date withdraw, or cause to be withdrawn, its opposition (and Applera shall neither reinstate nor participate or render assistance to other parties in any such opposition nor in any nullity or revocation actions against the respective national parts) of European Patent No. EP 1 202 805.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:27pt; text-indent:-9pt; font-size:12pt" align=justify>X.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:27pt; text-indent:9pt; font-size:12pt" align=justify>QUI TAM</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:18pt; font-size:12pt" align=justify>The MJ Parties agree not to appeal the dismissal or affirmance of the dismissal of <U>U.S. ex rel. MJ Research, Inc. v, Applera, Inc.</U>, Appeal No. 03-57299 (9<SUP>th</SUP> Cir.) and related proceedings (the &#147;Qui Tam&#148;). &nbsp;Without limiting the foregoing, the MJ Parties shall take such actions set forth in Exhibit C hereto. &nbsp;Without limiting the foregoing, the MJ Parties shall defend, indemnify and hold Applera harmless from any and all damages, liability, losses, expenses (including, without limitation, attorney&#146;s fees) arising from such Qui Tam after the Effective Date .</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:27pt; text-indent:-9pt; font-size:12pt" align=justify>XI.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:27pt; text-indent:9pt; font-size:12pt" align=justify>MJ PARTIES&#146; RELEASE OF CLAIMS AGAINST APPLERA AND ROCHE</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:18pt; font-size:12pt" align=justify>The MJ Parties for themselves and their parents, subsidiaries, affiliates and all of their officers, directors, principals, shareholders, representatives, successors and assigns: (i) represent and warrant that none of them are participating in litigation or proceeding before any court, tribunal or patent office involving (or asserting claims against) Applera or Roche or its or their Affiliates, or their rights, other than the Connecticut Litigation and such other proceedings specifically identified in Exhibit D hereto; and (ii) do hereby fully release, acquit and forever discharge Applera and Roche and each of their parents, subsidiaries, affiliates (including, without limitation, Affiliates) and all of their officers, directors, principals, shareholders, representatives, agents, successors and assigns from any and all claims, causes of action, charges, grievances, obligations, rights, demands, de
bts, damages, costs, losses, liabilities of any nature, whether known or unknown, arising anytime prior to the Effective Date of this Agreement: (A) relating to the Patents-in-Suit (including, without limitation, their enforcement, alleged unenforceability, misuse or invalidity); or (B) that were (or of the type that were) asserted in or that could have been asserted in, or relating to the allegations in or arising from, any of the legal proceedings (including, without limitation, the Litigations) referenced in this Agreement, including, without limitation, any claims based upon or asserting violations of antitrust law or unfair competition); <I>provided</I>, <I>however</I>, that nothing herein shall be construed to release Applera or Roche from any future obligations under this Agreement nor to release Roche or its Affiliates from any obligations under written agreements between Bio-Rad or its Affiliates, on the one hand, and Roche or its Affiliates, on the other hand. &nbsp;Each of the MJ Parties for thems
elves and their parents, subsidiaries, affiliates and all </P>
<P style="margin-top:0pt; margin-bottom:12pt" align=justify><BR>
<BR></P>
<P style="line-height:14pt; margin:0pt; font-size:12pt" align=center>9</P>
<P style="line-height:10pt; margin:0pt"><BR></P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt; page-break-before:always" align=center><BR></P>
<P style="margin:0pt"><BR></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:18pt; font-size:12pt" align=justify>of their officers, directors, principals, shareholders, representatives, successors and assigns hereby further acknowledges that each such MJ Party expressly waives any and all provisions, rights, and benefits conferred by any law of any state or territory of the United States, or principle of common law, including, without limitation, California Civil Code section 1542, which provides that a release does not extend to claims that a party does not know or suspect to exist in such party&#146;s favor at the time of executing the release, which if known by such party may have materially affected such party&#146;s settlement. &nbsp;Notwithstanding the foregoing, Bio-Rad and its Affiliates&#146; release, acquittal and discharge set forth in this Article XI does not apply to the following (i) those pending proceedings set forth in Exhibit D, involving the non-United States and non-Canadian patents and p
atent applications owned by Applera that claim priority from United States application Serial No. 07/695,201 (which patents and patent applications claim a real-time thermal cycler apparatus as an invention); (ii) the CE Litigation (as defined on Exhibit D) which is the subject of a separate settlement agreement that is referenced in the Recitals hereto; and (iii) any pending opposition and any pending nullity actions against Roche with respect to patents that are not now or in future licensed (or sublicensed) to Bio-Rad (collectively, the &#147;Preserved Claims&#148;). &nbsp;</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:27pt; text-indent:-9pt; font-size:12pt" align=justify>XII.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:27pt; text-indent:45pt; font-size:12pt" align=justify>[**]; DISMISSAL WITH PREJUDICE OF CLAIMS</P>
<P style="line-height:14pt; margin:0pt; padding-left:18pt; font-size:12pt" align=justify>Without limiting Article XI above, the MJ Parties agree not to assert, file, pursue or cooperate in the assertion, filing or pursuit by anyone else of any claims or causes of action against or adverse to Applera or Roche (or their respective Affiliates that qualify as Affiliates as of the Effective Date) arising from or relating to any acts, facts or circumstances existing or of the same nature as such acts, facts or circumstances existing as of or prior to the Effective Date and which in any way arise from or relate to any of the following: the Patents-in-Suit or PCR related technology owned, or known (now or in future) by Bio-Rad or MJ Research to be licensed or controlled by Applera or Roche, the patenting or licensing of Applera or Roche&#146;s PCR related<B> </B>&nbsp;technology or intellectual property rights and the circumstances attendant thereto or the subject matters of the Litigations as defined herein; except
, however, that the foregoing obligation in this Article XII shall not apply to Bio-Rad solely with respect to (A) intellectual property owned or controlled (wherein &#147;controlled&#148; means in-licensed by Bio-Rad, MJ Research or their Affiliates such that Bio-Rad, MJ Research or their Affiliates has the right under such intellectual property to enforce against infringers, grant sublicenses or covenants not to sue) by Bio-Rad, MJ Research or their Affiliates; (B) oppositions or nullity actions by Bio-Rad or MJ Research with respect to patents that are not now or in future licensed (or sublicensed) by Applera or Roche to Bio-Rad; (C) patents that are not now or in future licensed (or sublicensed) by Applera or Roche to Bio-Rad or MJ Research provided that, after the Effective Date, Applera or Roche (as the case may be) brings an infringement action or delivers a written notice (in a manner that would give Bio-Rad or MJ Research jurisdiction to seek declaratory judgment, whether in the U.S. or abroad, of n
oninfringement) to Bio-Rad or MJ Research (as the case may be) asserting that Bio-Rad or MJ Research </P>
<P style="margin:0pt" align=justify><BR>
<BR></P>
<P style="line-height:14pt; margin:0pt; font-size:12pt" align=center>10</P>
<P style="line-height:10pt; margin:0pt"><BR></P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt; page-break-before:always" align=center><BR></P>
<P style="margin:0pt"><BR></P>
<P style="line-height:14pt; margin:0pt; padding-left:18pt; font-size:12pt" align=justify>infringes such patents; or (D) contractual rights and obligations under existing, written agreements between Bio-Rad or MJ Research or their Affiliates, on the one hand, and Roche or its Affiliates, on the other hand; <I>provided however</I>, that this part (D) shall not in any way prejudice or limit the following: (1) the MJ Parties&#146; releases, representations, warranties and covenants with respect to the Patents-in-Suit or the Litigations, &nbsp;or (2) any other releases, representations, warranties or covenants granted by the MJ Parties to Applera, its Affiliates, officers, directors, principals, shareholders, representatives, successors and assigns. &nbsp;</P>
<P style="line-height:14pt; margin:0pt; padding-left:18pt; font-size:12pt" align=center>[**] </P>
<P style="margin:0pt" align=center><BR></P>
<P style="line-height:14pt; margin:0pt; padding-left:18pt; font-size:12pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) each of the MJ Parties shall dismiss with prejudice any claims or causes of action asserted heretofore by any of the MJ Parties or their Affiliates against Applera and Roche within the scope of the waiver and release set forth in Article XI herein; and (iii) the MJ Parties will use reasonable efforts to cause to be dismissed or terminated with prejudice any claims or causes of action that were asserted, with the assistance, participation or cooperation of any of the MJ Parties, by third parties against either or both of Applera or Roche. &nbsp;For the avoidance of doubt, the MJ Parties&#146; obligations with respect to dismissal of the qui tam action identified in Article X are set forth in Article X herein. &nbsp;For the avoidance of doubt, Bio-Rad and its Affiliates retain the r
ight to assert the Preserved Claims, except as provided by the separate settlement agreement for the CE Litigation that is referenced in the Recitals hereto. &nbsp;Notwithstanding anything in this Article XII to the contrary, in the event Applera brings a suit against Bio-Rad or MJ Research under the TCSA or Applera bring a suit against Bio-Rad or MJ Research under any other license agreement entered into with Bio-Rad or MJ Research after the Effective Date or otherwise threatens to terminate (in a manner giving Bio-Rad or MJ Research declaratory judgment jurisdiction whether in the United States or abroad) any such license agreement in both cases because Bio-Rad and MJ Research have failed to pay royalties for a given product other than Accused Products (as defined in the Consent Judgment) for which Applera asserts royalties are due under such agreement, then in such contract action (whether initiated by Applera or, by MJ Research or Bio-Rad, as a declaratory judgment action) under such agreement Bio-Rad an
d MJ Research shall have the right to assert as a defense that such product (other than an Accused Product) does not infringe the patent asserted under the TCSA or other such license agreement (as the case may be);</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin:0pt; padding-left:18pt; font-size:12pt" align=center>[**]</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:27pt; text-indent:-9pt; font-size:12pt" align=justify>XIII.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:27pt; text-indent:45pt; font-size:12pt" align=justify>TERMINATION OR RESCISSION OF AGREEMENT</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:18pt; font-size:12pt" align=justify>[**]</P>
<P style="margin-top:0pt; margin-bottom:12pt" align=justify><BR></P>
<P style="margin-top:0pt; margin-bottom:12pt" align=justify><BR></P>
<P style="margin-top:0pt; margin-bottom:12pt" align=justify><BR>
<BR></P>
<P style="line-height:14pt; margin:0pt; font-size:12pt" align=center>11</P>
<P style="line-height:10pt; margin:0pt"><BR></P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt; page-break-before:always" align=center><BR></P>
<P style="margin:0pt"><BR></P>
<P style="margin-top:0pt; margin-bottom:12pt" align=justify><BR></P>
<P style="margin-top:0pt; margin-bottom:12pt" align=justify><BR></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:27pt; text-indent:-9pt; font-size:12pt" align=justify>XIV.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:27pt; text-indent:45pt; font-size:12pt" align=justify>REPRESENTATION AND WARRANTY BY APPLERA AND ROCHE</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:18pt; font-size:12pt" align=justify>Except for Opposition to EP 1 202 805, filed on September 29, 2005 in the name of Corinna Vossius. EP 1 202 805 to Chu et al. is titled &quot;TEMPERATURE CONTROL FOR MULTI-VESSEL REACTION APPARATUS&quot;, each of Applera and Roche for itself represents and warrants that it is participating in no other litigation or proceeding before any court or tribunal involving the MJ Parties or challenging patents assigned to the MJ Parties, other than those identified in this Agreement (including, without limitation, the CE Litigation and the Real-Time PCR Litigation).</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:27pt; text-indent:-9pt; font-size:12pt" align=justify>XV.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:27pt; text-indent:45pt; font-size:12pt" align=justify>NO WAIVER OR RELEASE OF CLAIMS OTHER THAN PAST INFRINGEMENT OF PATENTS-IN-SUIT</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:18pt; font-size:12pt" align=justify>Nothing in this Agreement (including, without limitation, the Consent Judgment) shall be construed as a waiver or release of any claims or causes of action of Applera or Roche arising prior to or following the Effective Date, including, without limitation, any claims for infringement of any of Applera&#146;s or Roche&#146;s intellectual property rights (including, among other things, real-time PCR rights), except for claims or causes of action for infringement prior to August 18, 2004 by the MJ Parties of the Patents-In-Suit that were or that could have been asserted by Roche and Applera against MJ Research, Michael Finney and John Finney in the Connecticut Litigation and in all cases solely to the extent such claims for infringement of the Patents-In-Suit arise from sales, prior to August 18, 2004, by MJ Research of thermal cyclers (provided that such thermal cyclers solely bear MJ Research&#146;
s trademarks) to end-users (but not to other thermal cycler suppliers) of thermal cyclers. &nbsp;As used herein, the term &#147;Patents-In-Suit&#148; shall mean as follows: U.S. Patent Nos. 4,683,195; 4,683,202, 4,965,188; 5,333,675; 5,656,493 and 5,475,610, and patents and patent applications that claim priority from (or share a common parent with) any of the foregoing patents and any foreign counterparts thereof (including, for example, any patent or patent application owned by Applera anywhere in the world that claims the benefit of priority of one or more of US Ser. No. 06/833,368, 06/899,061, 07/620,606, 07/670,545, and 07/871,264). &nbsp;Nothing in this Agreement (including, without limitation, the Consent Judgment) shall be construed as a waiver or release of any claims or causes of action Applera or Roche has or may in future have against infringing resellers or manufacturers of thermal cyclers who purchased or who, in the future, purchase products from any of the MJ Parties that infringe any of Appl
era&#146;s or Roche&#146;s intellectual property rights (including, without limitation, any of the Patents-In-Suit); <I>provided</I>, <I>however</I>, that Applera and Roche covenant that, subject to the payment by Bio-Rad of its payment obligations under the TCSA, Applera and Roche will not assert any claims for infringement of the Patents-In-Suit against the MJ Parties for any infringing sales of thermal cyclers to such resellers or manufacturers that occurred prior to the Effective Date. </P>
<P style="margin-top:0pt; margin-bottom:12pt" align=justify><BR>
<BR></P>
<P style="line-height:14pt; margin:0pt; font-size:12pt" align=center>12</P>
<P style="line-height:10pt; margin:0pt"><BR></P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt; page-break-before:always" align=center><BR></P>
<P style="margin:0pt"><BR></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:27pt; text-indent:-9pt; font-size:12pt" align=justify>XVI.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:27pt; text-indent:45pt; font-size:12pt" align=justify>ATTORNEYS&#146; FEES</P>
<P style="line-height:14pt; margin:0pt; padding-left:18pt; font-size:12pt" align=justify>Except as set forth in the Consent Judgment, the Parties agree that </P>
<P style="line-height:14pt; margin:0pt; padding-left:18pt; font-size:12pt" align=justify>[**]</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:27pt; text-indent:-9pt; font-size:12pt" align=justify>XVII.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:27pt; text-indent:45pt; font-size:12pt" align=justify>ENTIRE AGREEMENT</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:18pt; font-size:12pt" align=justify>This Agreement, together with the Consent Judgment and the TCSA, contains and sets forth the entire agreement between the Parties concerning the subject matter hereof and supersedes any and all prior agreements, representations or understandings between the Parties pertaining to the subject matter hereof. &nbsp;No waiver, modification or amendment of this Agreement shall be effective unless pursuant to written instrument duly executed by the authorized representatives of each of the Parties.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:27pt; text-indent:-9pt; font-size:12pt" align=justify>XVIII.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:27pt; text-indent:45pt; font-size:12pt" align=justify>WAIVER</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:18pt; font-size:12pt" align=justify>The waiver by any Party hereto of any right hereunder shall not be deemed a waiver of any other right. &nbsp;Temporary waiver or forbearance hereunder shall not constitute permanent waiver.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:27pt; text-indent:-9pt; font-size:12pt" align=justify>XIX.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:27pt; text-indent:45pt; font-size:12pt" align=justify>SEVERABILITY</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:18pt; font-size:12pt" align=justify>If any provision hereof should be held invalid, illegal or unenforceable in any respect, then, to the fullest extent permitted by applicable law: (a) all other provisions hereof shall remain in full force and effect and shall be liberally construed in order to carry out the intent of the Parties as nearly as may be possible, and (b) the Parties agree to use their best efforts to negotiate a provision, in replacement of the provision held invalid, illegal or unenforceable, that is consistent with applicable law and accomplishes, as nearly as possible, the original intention of the Parties with respect thereto. &nbsp;To the fullest extent permitted by applicable law, each Party hereby waives any provision of law that would render any provision hereof prohibited or unenforceable in any respect.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:27pt; text-indent:-9pt; font-size:12pt" align=justify>XX.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:27pt; text-indent:45pt; font-size:12pt" align=justify>NONDISCLOSURE OBLIGATION</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:18pt; font-size:12pt" align=justify>The MJ Parties shall forever maintain the confidentiality of this Agreement and all exhibits hereto and shall not disclose the terms hereof or the subject matter of any negotiations with Applera or Roche preceding this Agreement; <I>provided</I>, <I>however</I>, that nothing herein shall restrict an MJ Party&#146;s disclosure of such information subject to a nondisclosure agreement with such parties that is consistent with the nondisclosure obligations of this Agreement to (i) its officers, directors, shareholders, attorneys, auditors or accountants; (ii) its lenders or prospective lenders; and (iii) prospective investors or investment advisors. &nbsp;The MJ Parties shall provide prompt written notification to Applera and Roche of any disclosure of this Agreement or any exhibits hereto in accordance with the preceding sentence. &nbsp;The MJ Parties shall also </P>
<P style="margin-top:0pt; margin-bottom:12pt" align=justify><BR>
<BR></P>
<P style="line-height:14pt; margin:0pt; font-size:12pt" align=center>13</P>
<P style="line-height:10pt; margin:0pt"><BR></P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt; page-break-before:always" align=center><BR></P>
<P style="margin:0pt"><BR></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:18pt; font-size:12pt" align=justify>have the right to disclose solely such information as may be required by court order or subpoena or order of other regulatory authority with applicable jurisdiction; <I>provided</I>, <I>however</I>, that the MJ Parties shall provide prompt, prior written notification of the same to Applera and Roche and provide Applera and Roche the opportunity to seek a protective order or other injunctive relief to limit, or protect the confidentiality of, such disclosure. &nbsp;The MJ Parties further shall use their best efforts to file this Agreement and all exhibits hereto under seal with the District Court and shall not file this Agreement or any exhibits hereto without the protection of a seal unless Applera and Roche first consent to such filing in writing. &nbsp;</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:18pt; font-size:12pt" align=justify>Applera and Roche shall forever maintain the confidentiality of this Agreement and all exhibits hereto and shall not disclose the terms hereof or the subject matter of any negotiations with the MJ Parties preceding this Agreement; <I>provided</I>, <I>however</I>, that nothing herein shall restrict Applera or Roche&#146;s disclosure of such information to their officers or directors or subject to a nondisclosure agreement with such parties that is consistent with the nondisclosure obligations of this Agreement to (i) their officers, directors, shareholders, attorneys, auditors or accountants; (ii) their lenders or prospective lenders; and (iii) prospective investors or investment advisors. &nbsp;Applera and Roche shall also have the right to disclose solely such information as may be required by court order or subpoena or order of other regulatory authority with applicable jurisdiction; <I>provided
</I>, <I>however</I>, that Applera and Roche shall provide prompt, prior written notification of the same to Bio-Rad and provide Bio-Rad the opportunity to seek a protective order or other injunctive relief to limit, or protect the confidentiality of, such disclosure. &nbsp;</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:18pt; font-size:12pt" align=justify>Notwithstanding the foregoing, any Party may make any public or private disclosure that it has determined based upon the advice of its legal counsel is required by applicable law or stock exchange rules (in which case such party will provide advance notice to the other party to the extent reasonably practical under the circumstances). &nbsp;In the event of litigation between two or more of the Parties relating to this Agreement, the litigating Parties shall have the right to offer this Agreement for use in prosecuting or defending such litigation; <I>provided, however</I>, that to the extent reasonably possible the producing Party shall seek to have the Agreement or information contained herein be filed under seal or for in camera inspection. &nbsp;Applera and Roche shall also have the right to disclose this Agreement and the terms hereof (i) to the extent relevant to prospective licensee; and (ii
) in prosecuting or defending litigation involving third parties provided, however, that to the extent reasonably possible Applera or Roche (as the case may be) shall seek to have the Agreement be filed under seal or for in camera inspection. &nbsp;Bio-Rad and Applera agree to jointly draft and issue a mutually acceptable press release announcing this Agreement, substantially in the form of Exhibit E hereto, promptly after this Agreement has been fully executed; such acceptance to be in writing and not to be unreasonably withheld. &nbsp;Except as provided above, no Party shall issue a press release concerning this Agreement or the terms hereof.</P>
<P style="margin-top:0pt; margin-bottom:12pt" align=justify><BR>
<BR></P>
<P style="line-height:14pt; margin:0pt; font-size:12pt" align=center>14</P>
<P style="line-height:10pt; margin:0pt"><BR></P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt; page-break-before:always" align=center><BR></P>
<P style="margin:0pt"><BR></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:18pt; font-size:12pt" align=justify>Roche will issue a press release announcing this Agreement acceptable to all parties, substantially in the form of Exhibit F hereto, promptly after the Agreement has been fully executed. &nbsp;</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:27pt; text-indent:-9pt; font-size:12pt" align=justify>XXI.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:27pt; text-indent:45pt; font-size:12pt" align=justify>CERTAIN REPRESENTATIONS OF THE PARTIES</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:18pt; font-size:12pt" align=justify>Each Party hereto each represents that: (i) such Party has been fully advised by counsel in connection with the negotiation and execution of this Agreement; (ii) each has the corporate power and authority, and the legal right, to make, execute, deliver and perform this Agreement; (iii) no consent or authorization or, filing with, any governmental authority is required in connection with the execution, delivery, performance, validity or enforceability of this Agreement, (iv) the execution, delivery and performance of this Agreement will not violate any requirement of law or any contractual obligation of such Party and will not result in, or require, the creation or imposition of any lien on any of their respective properties or revenues pursuant to any requirement of law or any such contractual obligation (other than the liens created by this Agreement) and (v) this Agreement constitutes a legal, v
alid and binding obligation of such Party, enforceable against each such Party, its affiliates, successors and assigns in accordance with its terms.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:27pt; text-indent:-9pt; font-size:12pt" align=justify>XXII.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:27pt; text-indent:45pt; font-size:12pt" align=justify>JURISDICTION; VENUE; SERVICE</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:72pt; text-indent:-18pt; font-size:12pt" align=justify>a.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:72pt; font-size:12pt" align=justify>This Agreement, its construction, performance and enforcement shall be governed by the laws of the State of California without regard to any conflicts of law provisions. &nbsp;All claims or disputes arising under or with respect to this Agreement, or with respect to the interpretation, performance, enforcement, or breach of this Agreement, shall be resolved in the District Court, which shall have exclusive jurisdiction for all such claims or disputes. &nbsp;If for any reason the District Court or other court with jurisdiction holds that the District Court lacks jurisdiction to adjudicate disputes arising from this Agreement, the Parties agree that the exclusive jurisdiction and venue for disputes arising from this Agreement shall be in the state courts of the State of California, the United States District Court for the Northern District of California, and appellate courts thereof. &nbsp;Each Part
y consents that any such action or proceeding may be brought in the courts provided for under this Article XXII and waives any objection or defense (including, without limitation any defense of inconvenient forum) that it may now or hereafter have to the venue of any such action or proceeding in any such court.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:72pt; text-indent:-18pt; font-size:12pt" align=justify>b.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:72pt; font-size:12pt" align=justify>Without limiting the right to effect service of process in any other manner permitted by law, service of process in any such action or proceeding may be effected by mailing a copy thereof by registered or certified mail (or any substantially similar form of mail), postage prepaid, to such Party at its address referred to in Article XXIII hereof.</P>
<P style="margin-top:0pt; margin-bottom:12pt" align=justify><BR>
<BR></P>
<P style="line-height:14pt; margin:0pt; font-size:12pt" align=center>15</P>
<P style="line-height:10pt; margin:0pt"><BR></P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt; page-break-before:always" align=center><BR></P>
<P style="margin:0pt"><BR></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:27pt; text-indent:-9pt; font-size:12pt" align=justify>XXIII.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:27pt; text-indent:45pt; font-size:12pt" align=justify>NOTICES</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:18pt; font-size:12pt" align=justify>All notices or other communications that are required or permitted hereunder shall be in writing and delivered personally, sent by facsimile (and promptly confirmed by personal delivery, registered or certified mail or overnight courier), sent by nationally-recognized overnight courier or sent by registered or certified mail, postage prepaid, return receipt requested, addressed as follows:</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:306pt; text-indent:-288pt; font-size:12pt" align=justify>For Applera:</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:306pt; text-indent:-126pt; font-size:12pt" align=justify>For Roche:</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:306pt; font-size:12pt" align=justify>For the MJ Parties (other than Michael and John Finney):</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:18pt; font-size:12pt" align=justify>850 Lincoln Centre Drive</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:18pt; text-indent:162pt; font-size:12pt" align=justify>4300 Hacienda Drive</P>
<P style="line-height:14pt; margin:0pt; padding-left:18pt; text-indent:288pt; font-size:12pt" align=justify>Bio-Rad Laboratories Inc.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:180pt; text-indent:-162pt; font-size:12pt" align=justify>Foster City, CA 94404</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:180pt; font-size:12pt" align=justify>Pleasanton, CA 94588</P>
<P style="line-height:14pt; margin:0pt; padding-left:180pt; text-indent:126pt; font-size:12pt" align=justify>1000 Alfred Nobel Drive, </P>
<P style="line-height:14pt; margin:0pt; padding-left:180pt; text-indent:126pt; font-size:12pt">Hercules, CA 94547</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:18pt; font-size:12pt">Fax No.: 650 638-6677</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:18pt; text-indent:162pt; font-size:12pt">Fax: 925-225-0369</P>
<P style="line-height:14pt; margin:0pt; padding-left:18pt; text-indent:288pt; font-size:12pt">Fax: (510) 741-5815</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:18pt; font-size:12pt">Attn: VP, Intellectual Property</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:18pt; text-indent:162pt; font-size:12pt">Attn: General Counsel</P>
<P style="line-height:14pt; margin:0pt; padding-left:18pt; text-indent:288pt; font-size:12pt">Attn: General Counsel<BR>
</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:18pt; font-size:12pt">With copies to:</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:18pt; font-size:12pt">________________</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:18pt; text-indent:162pt; font-size:12pt">__________________</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:18pt; text-indent:306pt; font-size:12pt">______________</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin:0pt; padding-left:18pt; font-size:12pt" align=justify>For Michael Finney and John Finney:</P>
<P style="line-height:14pt; margin:0pt; padding-left:18pt; font-size:12pt" align=justify>489 Douglass Street </P>
<P style="line-height:14pt; margin:0pt; padding-left:18pt; font-size:12pt" align=justify>San Francisco, CA 94114-2725</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:18pt; font-size:12pt" align=justify>&nbsp;</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:18pt; font-size:12pt" align=justify>Fax:</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:6pt; padding-left:36pt; font-size:12pt" align=justify>or to such other address as the Party to whom notice is to be given may have furnished to the other Parties in writing in accordance herewith. &nbsp;Any such communication shall be deemed to have been given (i) when delivered, if personally delivered or sent by telecopier on a business day, (ii) on the business day after dispatch, if sent by nationally-recognized overnight courier, and (iii) on the third business day following the date of mailing, if sent by mail. &nbsp;</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:6pt; padding-left:18pt; font-size:12pt" align=center>&nbsp;&nbsp;</P>
<P style="margin-top:0pt; margin-bottom:6pt" align=center><BR>
<BR></P>
<P style="line-height:14pt; margin:0pt; font-size:12pt" align=center>16</P>
<P style="line-height:10pt; margin:0pt"><BR></P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt; page-break-before:always" align=center><BR></P>
<P style="margin:0pt"><BR></P>
<P style="margin-top:0pt; margin-bottom:6pt" align=center><BR></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:6pt; padding-left:18pt; font-size:12pt" align=justify>IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be duly executed by their respective authorized officers, effective as of the Effective Date.</P>
<P style="margin-top:0pt; margin-bottom:6pt" align=justify><BR></P>
<P style="margin-top:0pt; margin-bottom:6pt" align=justify><BR></P>
<TABLE style="font-size:10pt" cellspacing=0><TR><TD width=35.4></TD><TD width=203.8></TD><TD width=34.15></TD><TD width=191.4></TD></TR>
<TR><TD valign=top width=47.2>&nbsp;</TD><TD valign=top width=271.733><P style="line-height:13pt; margin:0pt; font-size:11pt" align=justify>MJ RESEARCH, INC.</P>
</TD><TD valign=top width=45.533>&nbsp;</TD><TD valign=top width=255.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=justify>BIO-RAD LABORATORIES, INC.</P>
</TD></TR>
<TR><TD valign=top width=47.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>By:</P>
</TD><TD valign=top width=271.733><P style="line-height:13pt; margin:0pt; font-size:11pt" align=justify><U>/s/ Norman Schwartz</U></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=justify>Name: &nbsp;Norman Schwartz</P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=justify>Title: &nbsp;&nbsp;&nbsp;President</P>
</TD><TD valign=top width=45.533><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>By:</P>
</TD><TD valign=top width=255.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=justify><U>&nbsp;/s/ Norman Schwartz</U></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=justify>Name: &nbsp;Norman Schwartz</P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=justify>Title: &nbsp;&nbsp;&nbsp;President</P>
</TD></TR>
<TR><TD valign=top width=47.2>&nbsp;</TD><TD valign=top width=271.733>&nbsp;</TD><TD valign=top width=45.533>&nbsp;</TD><TD valign=top width=255.2>&nbsp;</TD></TR>
<TR><TD valign=top width=47.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>By:</P>
</TD><TD valign=top width=271.733><P style="line-height:13pt; margin:0pt; font-size:11pt" align=justify>MJ BIOWORKS, INC.</P>
</TD><TD valign=top width=45.533>&nbsp;</TD><TD valign=top width=255.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=justify>MJ GENEWORKS, INC.</P>
</TD></TR>
<TR><TD valign=top width=47.2>&nbsp;</TD><TD valign=top width=271.733><P style="line-height:13pt; margin:0pt; font-size:11pt" align=justify><U>/s/ Norman Schwartz</U></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=justify>Name: &nbsp;Norman Schwartz</P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=justify>Title: &nbsp;&nbsp;&nbsp;President</P>
</TD><TD valign=top width=45.533><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>By:</P>
</TD><TD valign=top width=255.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=justify><U>/s/ Norman Schwartz</U></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=justify>Name: &nbsp;Norman Schwartz</P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=justify>Title: &nbsp;&nbsp;&nbsp;President</P>
</TD></TR>
<TR><TD valign=top width=47.2>&nbsp;</TD><TD valign=top width=271.733>&nbsp;</TD><TD valign=top width=45.533>&nbsp;</TD><TD valign=top width=255.2>&nbsp;</TD></TR>
<TR><TD valign=top width=47.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>By:</P>
</TD><TD valign=top width=271.733><P style="line-height:13pt; margin:0pt; font-size:11pt">APPLERA CORPORATION, THROUGH ITS APPLIED BIOSYSTEMS GROUP</P>
</TD><TD valign=top width=45.533><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>By:</P>
</TD><TD valign=top width=255.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=justify>JOHN FINNEY</P>
</TD></TR>
<TR><TD valign=top width=47.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>By:</P>
</TD><TD valign=top width=271.733><P style="line-height:13pt; margin:0pt; font-size:11pt" align=justify><U>/s/ Catherine M. Burzik</U></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=justify>Name: &nbsp;Catherine M. Burzik</P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=justify>Title: &nbsp;&nbsp;&nbsp;President</P>
</TD><TD valign=top width=45.533><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>By:</P>
</TD><TD valign=top width=255.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=justify><U>/s/ John Finney</U></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=justify>Name:</P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=justify>Title:</P>
</TD></TR>
<TR><TD valign=top width=47.2>&nbsp;</TD><TD valign=top width=271.733>&nbsp;</TD><TD valign=top width=45.533>&nbsp;</TD><TD valign=top width=255.2>&nbsp;</TD></TR>
<TR><TD valign=top width=47.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>By:</P>
</TD><TD valign=top width=271.733><P style="line-height:13pt; margin:0pt; font-size:11pt">ROCHE MOLECULAR SYSTEMS, INC.</P>
</TD><TD valign=top width=45.533>&nbsp;</TD><TD valign=top width=255.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=justify>MICHAEL FINNEY</P>
</TD></TR>
<TR><TD valign=top width=47.2>&nbsp;</TD><TD valign=top width=271.733><P style="line-height:13pt; margin:0pt; font-size:11pt" align=justify><U>/s/ H. Dreismann</U></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=justify>Name: &nbsp;H. Dreismann</P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=justify>Title:</P>
</TD><TD valign=top width=45.533><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>By:</P>
</TD><TD valign=top width=255.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=justify><U>/s/ Michael Finnery</U></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=justify>Name:</P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=justify>Title:</P>
</TD></TR>
<TR><TD valign=top width=47.2>&nbsp;</TD><TD valign=top width=271.733>&nbsp;</TD><TD valign=top width=45.533>&nbsp;</TD><TD valign=top width=255.2>&nbsp;</TD></TR>
</TABLE>
<P style="margin-top:0pt; margin-bottom:6pt" align=justify><BR></P>
<P style="margin-top:0pt; margin-bottom:12pt"><BR></P>
<P style="margin-top:0pt; margin-bottom:12pt"><BR>
<BR></P>
<P style="line-height:14pt; margin:0pt; font-size:12pt" align=center>17</P>
<P style="line-height:10pt; margin:0pt"><BR></P>
<P style="margin:0pt"><BR></P>
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<DOCUMENT>
<TYPE>EX-10
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<FILENAME>exh1015.htm
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<TITLE>Converted by EDGARwiz</TITLE>
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<P style="line-height:14pt; margin:0pt; font-size:12pt" align=right><FONT FACE="Times New Roman" COLOR=#000000><B>Exhibit 10.15</B></FONT></P>
<P style="margin:0pt"><BR></P>
<P style="line-height:14pt; margin:0pt; font-size:12pt" align=center><B>REAL-TIME SETTLEMENT AGREEMENT</B></P>
<P style="margin:0pt"><BR></P>
<P style="line-height:14pt; margin:0pt; text-indent:72pt; font-size:12pt" align=justify>This Real-Time Settlement Agreement (&#147;Agreement&#148;) is made and entered, effective as of February 9, 2006 (the &#147;Effective Date&#148;), by and between Applera Corporation (&#147;Applera&#148;), a corporation of the State of Delaware, through its Applied Biosystems Group, having an office at 850 Lincoln Centre Drive, Foster City, California 94404, on the one hand, and Bio-Rad Laboratories, Inc. (&#147;Bio-Rad&#148;), a corporation of the State of California having an office at 1000 Alfred Nobel Drive, Hercules, California 94547, and MJ Research, Inc. (&#147;MJ Research&#148;), having a place of business at 590 Lincoln Street, Waltham, MA &nbsp;02451, on the other hand (collectively, &#147;the Parties&#148;).</P>
<P style="margin:0pt"><BR></P>
<P style="line-height:14pt; margin:0pt; font-size:12pt" align=center><B>RECITALS</B></P>
<P style="margin:0pt"><BR></P>
<P style="line-height:14pt; margin:0pt; text-indent:72pt; font-size:12pt" align=justify>WHEREAS, Applera sued Bio-Rad and MJ Research in Civil File No. 3:04-CV-01881-RNC in the United States District Court for the District of Connecticut;</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin:0pt; text-indent:72pt; font-size:12pt" align=justify>WHEREAS, Applera on the one hand, and Bio-Rad and MJ Research on the other hand, desire to settle the foregoing litigation, with the Parties entering into a Consent Judgment, attached hereto as Exhibit A;</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin:0pt; text-indent:72pt; font-size:12pt" align=justify>WHEREAS, as part of the foregoing settlement, Applera on the one hand, and Bio-Rad and MJ Research on the other hand, have agreed to enter into that certain Real-Time Instrument Patent License Agreement, attached hereto as Exhibit B; </P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin:0pt; text-indent:72pt; font-size:12pt" align=justify>WHEREAS the Parties are signatories to a separate agreement (the &#147;Connecticut Settlement Agreement&#148;) entered into of even date herewith that includes a license agreement entitled &#147;Amended and Restated Thermal Cycler Supplier Agreement&#148; and consent judgment effecting the settlement of litigation entitled <U>Applera Corporation, et al. v. MJ Research, Inc. et al.</U>, Case No. 3-98-CV-1201 JBA pending in the United States District Court for the District of Connecticut;</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin:0pt; text-indent:72pt; font-size:12pt" align=justify>WHEREAS, on or before August 18, 2004, Bio-Rad succeeded to the interests of MJ Research and its Affiliates by acquiring MJ Geneworks, Inc., and its subsidiaries including MJ Research; and</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin:0pt; text-indent:72pt; font-size:12pt" align=justify>WHEREAS Applera and Bio-Rad are signatories to a separate agreement entered into of even date herewith that includes a license agreement and consent judgment effecting the settlement of litigation entitled <U>Bio-Rad Laboratories, Inc. v. Applera Corp. and Applied Biosystems</U>, Case No. C02-5946 JW, pending in the United States District Court for the Northern District of California;</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin:0pt; text-indent:72pt; font-size:12pt" align=justify>NOW, THEREFORE, in consideration of the promises and the covenants and obligations herein undertaken, the Parties hereto for themselves and their respective Affiliates </P>
<P style="margin:0pt" align=justify><BR>
<BR></P>
<P style="line-height:14pt; margin:0pt; font-size:12pt" align=center>1</P>
<P style="margin:0pt">Legend:</P>
<P style="margin:0pt">[**] This material has been omitted pursuant to a request for confidential treatment. &nbsp;The material has been filed separately with the Commission.</P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt; page-break-before:always" align=right><BR></P>
<P style="margin:0pt"><BR></P>
<P style="line-height:14pt; margin:0pt; text-indent:72pt; font-size:12pt" align=justify>hereby agree as follows:</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin-top:12pt; margin-bottom:-14pt; padding-left:54pt; text-indent:-36pt; font-size:12pt"><B>1.</B></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:3pt; padding-left:54pt; font-size:12pt"><B>DEFINITIONS</B></P>
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<P style="line-height:14pt; margin:0pt; text-indent:72pt; font-size:12pt" align=justify>As used herein with initial capital letters, the following terms shall have the respective meanings set forth below or as otherwise defined in this Agreement:</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:104.4pt; text-indent:-50.4pt; font-size:12pt">1.1.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:104.4pt; font-size:12pt">&#147;Affiliate&#148; means, with respect to a Party, any Person that, directly or indirectly, through one or more intermediaries, controls, is controlled by, or is under common control with, such Party; where &#147;control&#148; refers to (i) the ownership, directly or indirectly, of the lesser of at least fifty percent (50%) or the highest percentage permitted by applicable law of the voting securities or other ownership interests of a Person (or Party) or (ii) otherwise the ability to direct the management of such Person (or Party).</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:104.4pt; text-indent:-50.4pt; font-size:12pt">1.2.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:104.4pt; font-size:12pt">&#147;Bio-Rad Party&#148; or &#147;Bio-Rad Parties&#148; shall mean one or more of Bio-Rad, MJ Research, their respective parents, subsidiaries or affiliates</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:104.4pt; text-indent:-50.4pt; font-size:12pt">1.3.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:104.4pt; font-size:12pt"><B><I>&nbsp;</I></B>&#147;Consent Judgment&#148; means the Consent Judgment attached hereto as Exhibit A.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:104.4pt; text-indent:-50.4pt; font-size:12pt">1.4.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:104.4pt; font-size:12pt">&nbsp;&#147;License Agreement&#148; means that certain &#147;Real-Time Instrument Patent License Agreement&#148; entered into by the Parties of even date herewith, attached hereto as Exhibit B.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:104.4pt; text-indent:-50.4pt; font-size:12pt">1.5.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:104.4pt; font-size:12pt">&nbsp;&#147;Bio-Rad Accused Instruments&#148; means all instruments set forth in Exhibit C attached hereto, as well as all equivalent or immaterially distinct variants thereof, including without limitation any other instruments that were accused of infringement at any time in this Real-Time Litigation, regardless of the name under which such products were or will be sold and whether or not sold or offered for sale in conjunction with any thermal cycler.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:104.4pt; text-indent:-50.4pt; font-size:12pt">1.6.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:104.4pt; font-size:12pt">&nbsp;&#147;MJ Research Accused Instruments&#148; means all instruments set forth in Exhibit D attached hereto, as well as all equivalent or immaterially distinct variants thereof, including without limitation any other instruments that were accused of infringement at any time in this Real-Time Litigation, regardless of the name under which such products were or will be sold and whether or not sold or offered for sale in conjunction with any thermal cycler.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:104.4pt; text-indent:-50.4pt; font-size:12pt">1.7.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:104.4pt; font-size:12pt">&nbsp;&#147;Accused Instruments&#148; refers to the Bio-Rad Accused Instruments and the MJ Research Accused Instruments, collectively.</P>
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<P style="line-height:14pt; margin:0pt; font-size:12pt" align=center>2</P>
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<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:104.4pt; text-indent:-50.4pt; font-size:12pt">1.8.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:104.4pt; font-size:12pt">&nbsp;&#147;Patent-in-Suit&#148; means U.S. Patent No. 6,814,934.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:104.4pt; text-indent:-50.4pt; font-size:12pt">1.9.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:104.4pt; font-size:12pt">&nbsp;&#147;Related Patents&#148; refers to all of Applera&#146;s United States patents and applications that claim priority from United States application Serial No. 07/695,201 and all Canadian counterparts thereof.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:104.4pt; text-indent:-50.4pt; font-size:12pt">1.10.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:104.4pt; font-size:12pt">&nbsp;&#147;Real-Time Patents&#148; shall mean the Patent-in-Suit and any Related Patents.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:104.4pt; text-indent:-50.4pt; font-size:12pt">1.11.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:104.4pt; font-size:12pt">&nbsp;&#147;Real-Time Litigation&#148; shall mean the proceeding entitled <U>Applera Corp. v. Bio-Rad Laboratories, et al.</U>, Case No. 3:04-CV-1881 (RNC) pending in the United States District Court for the District of Connecticut (such court, the &#147;District Court&#148;).</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:104.4pt; text-indent:-50.4pt; font-size:12pt">1.12.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:104.4pt; font-size:12pt">&nbsp;&#147;Connecticut Litigation&#148; means <U>Applera Corporation, et al. v. MJ Research, Inc.</U>, Case No. 3-98-CV-1201 pending in the United States District Court for the District of Connecticut.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:104.4pt; text-indent:-50.4pt; font-size:12pt">1.13.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:104.4pt; font-size:12pt">&nbsp;&#147;CE Litigation&#148; means <U>Bio-Rad Laboratories, Inc., v. Applera Corp. and Applied Biosystems</U>, Case No. C02-5946 JW, pending in the United States District Court for the Northern District of California.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:104.4pt; text-indent:-50.4pt; font-size:12pt">1.14.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:104.4pt; font-size:12pt">&#147;Valid Claim&#148; shall mean a claim of a patent or pending application that has not been held invalid or permanently unenforceable by a court from which no appeal has been taken within the time allowed for appeal or from which no appeal can be taken, or has not otherwise finally been held unpatentable by an appropriate patent office or administrative agency.</P>
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<P style="line-height:14pt; margin-top:12pt; margin-bottom:-14pt; padding-left:54pt; text-indent:-36pt; font-size:12pt"><B>2.</B></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:3pt; padding-left:54pt; font-size:12pt"><B>CONSENT JUDGMENT</B></P>
<P style="line-height:14pt; margin-top:12pt; margin-bottom:-14pt; padding-left:104.4pt; text-indent:-50.4pt; font-size:12pt"><U>2.1.</U></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:3pt; padding-left:104.4pt; font-size:12pt"><U>Consent Judgment</U>. &nbsp;The Parties for themselves and their respective parents, subsidiaries, affiliates, officers, directors, principals, shareholders, representatives, successors and assigns hereby agree to the Consent Judgment, attached hereto as Exhibit A, including, without limitation, the judgment therein that (i) all the claims of the Patent-in-Suit are valid and enforceable in all respects; and (ii) one or more claims of the Patent-in-Suit are infringed by Bio-Rad&#146;s and MJ Research&#146;s making, using, offering for sale, selling or importing into the United States the Accused Instruments, or otherwise infringing or inducing or contributing to the infringement by others of any claim of the Patent-in-Suit. &nbsp;The Parties shall within five (5) business days of the Effective Date submit the Consent Judgment to the District Court for entry in the Real-Time Litigation. &nbsp;Applera shall h
ave the </P>
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<P style="line-height:14pt; margin:0pt; font-size:12pt" align=center>3</P>
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<P style="line-height:14pt; margin-top:12pt; margin-bottom:3pt; padding-left:104.4pt; font-size:12pt">right to rescind this Agreement and the License Agreement if the Consent Judgment is not entered by the District Court without modification, unless any such proposed modification is acceptable to Applera. &nbsp;The Consent Judgment shall not be admissible in any proceedings outside of the United States or Canada.</P>
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<P style="line-height:14pt; margin-top:12pt; margin-bottom:-14pt; padding-left:104.4pt; text-indent:-50.4pt; font-size:12pt">2.2.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:3pt; padding-left:104.4pt; font-size:12pt">Subject to Bio-Rad and MJ Research&#146;s compliance with the terms and conditions of this Agreement and the License Agreement, Applera will waive its claims for damages for past infringement of the Patents-in-Suit by Bio-Rad and MJ Research that occurred prior to &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[**]</P>
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<P style="line-height:14pt; margin-top:12pt; margin-bottom:-14pt; padding-left:54pt; text-indent:-36pt; font-size:12pt"><B>3.</B></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:3pt; padding-left:54pt; font-size:12pt"><B>LICENSE </B></P>
<P style="line-height:14pt; margin-top:12pt; margin-bottom:-14pt; padding-left:104.4pt; text-indent:-50.4pt; font-size:12pt"><U>3.1.</U></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:3pt; padding-left:104.4pt; font-size:12pt"><U>License Agreement</U>. &nbsp;As part of this Agreement, and in reliance upon Bio-Rad&#146;s and MJ Research&#146;s representations, warranties and covenants herein, the Parties have entered into the License Agreement attached hereto as Exhibit B. &nbsp;For the avoidance of doubt, Applera&#146;s entering into the License Agreement with Bio-Rad and MJ Research is predicated upon and in reliance upon Bio-Rad&#146;s and MJ Research's representations, warranties and covenants herein. &nbsp;Except as expressly provided under the License Agreement, neither Bio-Rad nor MJ Research shall have any license under the Real-Time Patents<B> </B>to make, use, sell, offer for sale or import the Accused Instruments and other products that infringe the Patent-in-Suit and Related Patents. &nbsp;The Bio-Rad Parties hereby acknowledge and agree that the License Agreement is personal in nature, and that, except as set forth in t
he License Agreement, MJ Research&#146;s and Bio-Rad&#146;s rights and obligations under the License Agreement are non-delegable and non-assignable and that such agreements cannot be assumed or assumed and assigned by a trustee or debtor-in-possession in bankruptcy as set forth in section 365(c)(1) of the Bankruptcy Code or any similar provisions of state or federal law.</P>
<P style="line-height:14pt; margin-top:12pt; margin-bottom:-14pt; padding-left:104.4pt; text-indent:-50.4pt; font-size:12pt"><U>3.2.</U></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:3pt; padding-left:104.4pt; font-size:12pt"><U>Cross Default; Remedies for Material Breach</U>. &nbsp;The Parties expressly acknowledge and agree that any material breach of the License Agreement, including, without limitation, failure to pay royalties and other payments due thereunder (subject to the cure provisions set forth therein) shall constitute a breach of this Agreement and conversely, any material breach of this Agreement shall constitute a material breach of the License Agreement. &nbsp;Without limiting Applera&#146;s legal or equitable remedies, upon any such material breach, Applera shall have the right to immediate </P>
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<P style="line-height:14pt; margin-top:12pt; margin-bottom:3pt; padding-left:104.4pt; font-size:12pt">enforcement of the Consent Judgment (including, without limitation, any injunctive relief therein). Without limiting the foregoing or any of Applera&#146;s other legal or equitable remedies, Applera shall also have the right of rescission of this Agreement and/or the License Agreement in the event that any payment that is required to be paid to Applera within three (3) business days after the Signing Date (as defined in the License Agreement) under the License Agreement is not paid in full upon such date.</P>
<P style="line-height:14pt; margin-top:12pt; margin-bottom:-14pt; padding-left:54pt; text-indent:-36pt; font-size:12pt"><B>4.</B></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:3pt; padding-left:54pt; font-size:12pt"><B>RELEASE</B></P>
<P style="line-height:14pt; margin-top:12pt; margin-bottom:-14pt; padding-left:104.4pt; text-indent:-50.4pt; font-size:12pt"><U>4.1.</U></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:3pt; padding-left:104.4pt; font-size:12pt"><U>Bio-Rad and MJ Research Release of Claims</U>. &nbsp;Bio-Rad and MJ Research, for themselves and for the other Bio-Rad Parties: (i) represent and warrant that none of them are participating in litigation involving (or asserting claims against) Applera, Applera&#146;s affiliates, or Applera&#146;s intellectual property rights, other than the Real-Time Litigation and such other proceedings specifically identified in Exhibit E hereto; and (ii) do hereby fully release, acquit and forever discharge Applera and each of its parents, subsidiaries, affiliates (including, without limitation, Affiliates) and all of its officers, directors, principals, shareholders, representatives, agents, successors and assigns from any and all claims, causes of action, charges, grievances, obligations, rights, demands, debts, damages, costs, losses, liabilities of any nature, whether known or unknown, arising anytime prior to the E
ffective Date of this Agreement: (A) relating to the Real-Time Patents<B> </B>(including, without limitation, their enforcement, alleged unenforceability, misuse or invalidity of any claims based upon or asserting violations of antitrust or unfair competition law); or (B) that were (or of the type that were) asserted in, or that could have been asserted in, or relating to the allegations in or arising from any of the legal proceedings referenced in this Agreement (including, without limitation, the proceedings identified in Exhibit E hereto) including, without limitation, any claims based upon or asserting violations of antitrust law or unfair competition law; provided, however, that nothing herein shall be construed to release Applera from any future obligations under this Agreement. &nbsp;Bio-Rad and MJ Research for themselves and the other Bio-Rad Parties hereby further acknowledges that each of them expressly waives any and all provisions, rights, and benefits conferred by any law of any state or territo
ry of the United States, or principle of common law, including, without limitation, California Civil Code section 1542, which provides that a release does not extend to claims that a party does not know or suspect to exist in such party&#146;s favor at the time of executing the release, which if known by such party may have materially affected such party&#146;s settlement. &nbsp;Notwithstanding the foregoing, the release, acquittal and discharge set forth in this Section 4.1 does not apply to the following (i) those pending European and Japanese </P>
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<P style="line-height:14pt; margin:0pt; font-size:12pt" align=center>5</P>
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<P style="line-height:14pt; margin-top:12pt; margin-bottom:3pt; padding-left:104.4pt; font-size:12pt">proceedings, and all non-US and non-Canadian applications and patents (which patents and patent applications claim a real-time thermal cycler apparatus as an invention) owned by Applera claiming priority from US 07/695,201 ; (ii) proceedings that are settled pursuant to the Connecticut Settlement Agreement; or (iii) the CE Litigation (as defined on Exhibit E) which is the subject of a separate settlement agreement that is referenced in the Recitals hereto (collectively, the &#147;Preserved Claims&#148;). </P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:104.4pt; text-indent:-50.4pt; font-size:12pt"><U>4.2.</U></P>
<P style="line-height:14pt; margin:0pt; padding-left:104.4pt; font-size:12pt"><U>Dismissal With Prejudice</U>. &nbsp;Without limiting Section 4.1 above, Bio-Rad and MJ Research for themselves and their parents, subsidiaries, affiliates and all of their officers, directors, principals, shareholders, representatives, successors and assigns agree (i) not to assert, file, pursue or cooperate in the assertion, filing or pursuit by anyone else of any claims or causes of action against or adverse to Applera (or entities that as of the Effective Date are Affiliates of Applera) arising from any acts, facts or circumstances existing or of the same nature as such acts, facts or circumstances existing as of or prior to the Effective Date and which in any way arise from or relate to any of the following: the Real-Time Patents or real-time PCR technology owned, or known (now or in future) by Bio-Rad, MJ Research or their Affiliates to be licensed or controlled by Applera, the patenting or licensing of Applera&#146;s techn
ology or intellectual property rights and the circumstances attendant thereto or the subject matters of the litigations or proceeding referenced herein; except, however, that the foregoing obligation in this part (i) of Section 4.2 shall not apply (A) to oppositions filed after the Effective Date by Bio-Rad, MJ Research or their Affiliates with respect to patents that are not now or in future licensed (or sublicensed) by Applera to Bio-Rad; or (B) to the following patents (as set forth in parts (1) through (3) below) provided that Applera brings an infringement action or delivers a written notice (in a manner that would give Bio-Rad or MJ Research jurisdiction to seek declaratory judgment, whether in the United States or abroad, of noninfringement) to Bio-Rad or MJ Research asserting that Bio-Rad or MJ Research infringes such patents: (1) those patents that are not now or in future licensed (or sublicensed) by Applera to Bio-Rad;</P>
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<P style="line-height:14pt; margin:0pt; padding-left:102pt; font-size:12pt" align=center>[**]</P>
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<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:102pt; font-size:12pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
<P style="line-height:14pt; margin:0pt; padding-left:102pt; text-indent:294pt; font-size:12pt">from</P>
<P style="line-height:14pt; margin:0pt; padding-left:104.4pt; font-size:12pt">contesting the validity or enforceability of those particular Added Real-Time Rights that fulfill both of the following conditions: (A) such Added Real-Time Rights are not within the Territory (as defined in the License </P>
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<P style="line-height:14pt; margin:0pt; font-size:12pt" align=center>6</P>
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<P style="line-height:14pt; margin:0pt; padding-left:104.4pt; font-size:12pt">Agreement); and (B) such Added Real-Time Rights are not specifically enumerated or identified (whether by patent number, application number, serial number or publication number) in the definition set forth in the License Agreement of Added Real-Time Rights or Optics Improvement Patents; (ii) to dismiss with prejudice any claims or causes asserted heretofore by any of Bio-Rad and MJ Research against Applera within the scope of the waiver and release set forth in Section 4.1 herein; and (iii) to use their best efforts to cause to be dismissed or terminated with prejudice any claims or causes of action asserted (with the assistance, participation or cooperation of any of Bio-Rad and MJ Research) by third parties against Applera. &nbsp;For the avoidance of doubt, Section 4.2 shall not apply to the Preserved Claims, except as otherwise provided by (and without limiting) (X) the separate settlement agreement for the CE Litigation that is
 referenced in the Recitals hereto or (Y) the Connecticut Settlement Agreement. &nbsp;Notwithstanding Section 4.2(i), in the event Applera brings a suit under the License Agreement (or other license agreement entered into between the Parties) or otherwise threatens to terminate (in a manner giving Bio-Rad and MJ Research declaratory judgment jurisdiction whether in the United States or abroad) the License Agreement in both cases because Bio-Rad or MJ Research have failed to pay royalties for a given product other than Covered Products (as defined in the License Agreement) for which Applera asserts royalties are due under the License Agreement (or other license agreement entered into between the Parties), then in such contract action (whether initiated by Applera or as a declaratory judgment action by Bio-Rad or MJ Research) under the License Agreement (or such other license agreement) Bio-Rad and MJ Research shall have the right to assert as a defense that such product (other than a Covered Product) does not
 infringe the patent asserted under the License Agreement or other license agreement </P>
<P style="line-height:14pt; margin:0pt; padding-left:104.4pt; font-size:12pt" align=center>[**]</P>
<P style="line-height:14pt; margin:0pt; padding-left:104.4pt; text-indent:183.6pt; font-size:12pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;with respect to any such patent that is licensed pursuant to the License Agreement (or such other license agreement).</P>
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<P style="line-height:14pt; margin:0pt; padding-left:104.4pt; font-size:12pt">Notwithstanding anything in this Section 4.2 or in the Connecticut Settlement Agreement to the contrary:</P>
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<P style="line-height:14pt; margin:0pt; padding-left:104.4pt; font-size:12pt">Bio-Rad and MJ Research for themselves and for the other Bio-Rad Parties hereby fully release, acquit and forever discharge and covenant not to sue Applera and each of its parents, subsidiaries, Affiliates (which entities were parents, subsidiaries or Affiliates as of the Effective Date) and their respective officers, directors, principals, shareholders, representatives, agents, successors and assigns from any and all claims, causes of action, </P>
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<P style="line-height:14pt; margin:0pt; padding-left:104.4pt; font-size:12pt">charges, grievances, obligations, rights, demands, debts, damages, costs, losses, liabilities of any nature, whether known or unknown, relating to or arising from infringement of intellectual property rights owned or controlled by Bio-Rad, MJ Research and their Affiliates, by Applera, its Affiliates (existing as of the Effective Date) and the customers of Applera and its Affiliates, both prior to the Effective Date and after the Effective Date. &nbsp;Notwithstanding the foregoing, the above release and covenant not to sue under of any intellectual property owned or controlled by Bio-Rad, MJ Research or their Affiliates &nbsp;with respect to infringing activities after the Effective Date is limited to infringing activities by Applera, its Affiliates and customers arising from the making, having made, using, selling, offering for sale or importing of products (that are the same as or immaterially distinct variants of the products sol
d, as of the Effective Date, by Applera or its Affiliates), methods and services, which methods or services were practiced or provided as of the Effective Date, covered by patents or patent applications that </P>
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<P style="line-height:14pt; margin:0pt; padding-left:104.4pt; font-size:12pt" align=center>[**]</P>
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<P style="line-height:14pt; margin:0pt; padding-left:104.4pt; text-indent:327.6pt; font-size:12pt">The</P>
<P style="line-height:14pt; margin:0pt; padding-left:104.4pt; font-size:12pt">foregoing release and covenant not to sue the customers of Applera or its Affiliates is limited to infringement resulting from such customers&#146; use of products or services purchased from Applera or its Affiliates. &nbsp;As used in this paragraph, the term &#147;control&#148; or &#147;controlled&#148; means in-licensed by Bio-Rad, MJ Research or their Affiliates.</P>
<P style="margin:0pt"><BR></P>
<P style="line-height:14pt; margin-top:12pt; margin-bottom:-14pt; padding-left:104.4pt; text-indent:-50.4pt; font-size:12pt">4.3.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:3pt; padding-left:104.4pt; font-size:12pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[**] &nbsp;&nbsp;&nbsp;&nbsp;. &nbsp;Bio-Rad and MJ Research for themselves and the other Bio-Rad Parties covenant that they will not </P>
<P style="line-height:14pt; margin:0pt; font-size:12pt" align=center>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[**]</P>
<P style="line-height:14pt; margin:0pt; padding-left:102pt; font-size:12pt">in any domestic proceeding, including, without limitation, any proceeding in any court or tribunal or in or before the U.S. Patent and Trademark Office or any other country in which the Real-Time Patents are licensed pursuant to the License Agreement, without regard to the identity of any product accused of infringing one or more Real-Time Patents made, used, or sold by Bio-Rad or MJ Research or any of their parents, subsidiaries, affiliates, assigns, successors or those who act for or in concert with any of them at any time during the life of the Real-Time Patents; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
<P style="line-height:14pt; margin:0pt; padding-left:102pt; font-size:12pt" align=center>[**]</P>
<P style="line-height:14pt; margin:0pt; padding-left:102pt; font-size:12pt">as a result of the making, using, selling, offering for sale, or importing of any Accused Instruments;</P>
<P style="line-height:14pt; margin:0pt; padding-left:102pt; font-size:12pt" align=center>[**]</P>
<P style="margin:0pt"><BR></P>
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<BR></P>
<P style="line-height:14pt; margin:0pt; font-size:12pt" align=center>8</P>
<P style="margin:0pt"><BR></P>
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<P style="margin:0pt; page-break-before:always" align=right><BR></P>
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<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:104.4pt; text-indent:-50.4pt; font-size:12pt"><U>4.4.</U></P>
<P style="line-height:14pt; margin:0pt; padding-left:104.4pt; font-size:12pt"><U>Termination or Rescission of Agreement</U>. &nbsp;Without limiting any of the </P>
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<P style="line-height:14pt; margin:0pt; font-size:12pt" align=center>[**]</P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt"><BR></P>
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<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:104.4pt; text-indent:-50.4pt; font-size:12pt"><U>4.5.</U></P>
<P style="line-height:14pt; margin:0pt; padding-left:104.4pt; font-size:12pt"><B><U>Grant of &#145;435 Patent License to Applera</U></B>. &nbsp;In consideration of, among other things, Applera&#146;s agreement to withdraw from its opposition to European Patent No. EP 1 202 805, and without limiting Section 4.2, Bio-Rad and MJ Research hereby grant to Applera and its Affiliates a worldwide, nonexclusive, irrevocable license under the Bio-Rad Lid Patents to make, have made, use, sell, offer for sale and import products, methods and services covered by the Bio-Rad Lid Patents. &nbsp;As used herein, the term &#147;Bio-Rad Lid Patents&#148; shall mean United States Patent No. 6,337,435 B1 and parent patents or patent applications thereof, all patents and patent applications claiming priority from any of the foregoing and all foreign counterparts of any of the foregoing. &nbsp;Within &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[**] &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;following the Applera fis
cal quarter in which such sale occurs, Applera shall pay Bio-Rad a royalty equal to &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[**] &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;multiplied by the quantity sold by Applera or its Affiliates of such products covered by a Valid Claim of the Bio-Rad Lid Patents. &nbsp;The foregoing license and royalty obligation shall continue until the date of the last to expire of the Valid Claims within the definition of Bio-Rad Lid Patents. &nbsp;In addition, &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nb
sp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[**] &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;following the Applera fiscal quarter in which the first commercial sale by Applera or its Affiliates of a product covered by a Valid Claim of the Bio-Rad Lid Patents, Applera shall pay Bio-Rad a one-time, non-refundable issuance fee of &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[**] &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(the &#147;Issuance Fee&#148;) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp
;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
<P style="line-height:14pt; margin:0pt; font-size:12pt" align=center>[**]</P>
<P style="line-height:14pt; margin:0pt; padding-left:54pt; text-indent:54pt; font-size:12pt">Applera represents and warrants that as of the Effective Date</P>
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<P style="line-height:14pt; margin:0pt; font-size:12pt" align=center>[**]</P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt"><BR></P>
<P style="line-height:14pt; margin:0pt; padding-left:108pt; text-indent:180pt; font-size:12pt">The sole remedy for any other breach by Applera of the foregoing license under the Bio-Rad Lid Patents shall be </P>
<P style="margin:0pt"><BR>
<BR></P>
<P style="line-height:14pt; margin:0pt; font-size:12pt" align=center>9</P>
<P style="margin:0pt"><BR></P>
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<P style="margin:0pt"><BR></P>
<P style="margin:0pt; page-break-before:always" align=right><BR></P>
<P style="margin:0pt"><BR></P>
<P style="line-height:14pt; margin:0pt; padding-left:108pt; font-size:12pt">that Applera shall be liable for unpaid royalties due pursuant to this Section 4.5 and Bio-Rad&#146;s reasonable, out-of-pocket attorney&#146;s fees incurred in any litigation to enforce Applera&#146;s obligations under this Section 4.5. &nbsp;In the event Bio-Rad becomes aware of any such breach by Applera under this Section 4.5 it shall deliver written notice of the same to Applera and provide Applera thirty (30) days in which to effect a cure of such breach prior to commencing such enforcement proceedings under this Section 4.5.</P>
<P style="margin:0pt"><BR></P>
<P style="line-height:14pt; margin:0pt; padding-left:108pt; font-size:12pt">Applera shall keep, and shall require its pertinent Affiliates and distributors to keep, full, true and accurate records containing all particulars necessary to show the amount payable to Bio-Rad under this Agreement and to demonstrate Applera&#146;s (and its Affiliates and distributors&#146;) compliance with its obligations under Section 4.5 of this Agreement. &nbsp;Such records and the supporting data shall be open at all reasonable times, for &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[**] &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the end of the calendar year to which they pertain (and access shall not be denied thereafter, if reasonably available), to the inspection of an independent certified public accounting firm retained by Bio-Rad. &nbsp;Such accounting firm will hold such records and supporting data in strict confidence, exc
ept as necessary to consult with and report to Bio-Rad and Applera on Applera&#146;s compliance with this Agreement. &nbsp;If in dispute, such records shall be kept until the later of &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[**] &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;or the date the dispute is settled. &nbsp;Inspection shall be at Bio-Rad&#146;s expense, unless the inspector concludes that the amount payable that is stated in a report is understated by &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[**] &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;or more, in which case expenses shall be paid by Applera.</P>
<P style="margin:0pt"><BR></P>
<P style="line-height:14pt; margin:0pt; padding-left:108pt; font-size:12pt">Until &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[**] &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;, Applera shall provide one annual report (within forty-five days following each Applera fiscal year) to Bio-Rad &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[**] &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;. &nbsp;Following &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[**] &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;, on a quarterly basis, within &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp
;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[**] &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the end of each Applera fiscal quarter deliver to Bio-Rad a true and accurate royalty accounting report. &nbsp;This report shall be on a U.S. and rest-of-world basis and shall detail Applera&#146;s sales of such products covered by the Bio-Rad Lid Patents during the preceding three (3) calendar months as are pertinent to accounting under this Section 4.5. &nbsp;The correctness and completeness of each report shall be attested to in writing by the responsible financial officer of Applera or by Applera&#146;s external auditor. &nbsp;In the event that no royalty is due for a given quarter, then the royalty accounting report shall so state. &nbsp;Simultaneously with the delivery of each royalty accounting report, Applera shall pay to Bio-Rad the </P>
<P style="margin:0pt"><BR>
<BR></P>
<P style="line-height:14pt; margin:0pt; font-size:12pt" align=center>10</P>
<P style="margin:0pt"><BR></P>
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<P style="margin:0pt; page-break-before:always" align=right><BR></P>
<P style="margin:0pt"><BR></P>
<P style="line-height:14pt; margin:0pt; padding-left:108pt; font-size:12pt">monies then due under this Section 4.5 for the period covered by the report. &nbsp;</P>
<P style="line-height:14pt; margin-top:12pt; margin-bottom:-14pt; padding-left:54pt; text-indent:-36pt; font-size:12pt"><B>5.</B></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:3pt; padding-left:54pt; font-size:12pt"><B>GENERAL</B></P>
<P style="line-height:14pt; margin-top:12pt; margin-bottom:-14pt; padding-left:104.4pt; text-indent:-50.4pt; font-size:12pt"><U>5.1.</U></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:3pt; padding-left:104.4pt; font-size:12pt"><U>Entire Agreement</U>. &nbsp;This Agreement, together with the Consent Judgment and the License Agreement, constitutes the entire agreement between the Parties as to the subject matter hereof, and supersedes all prior negotiations, representations, agreements and understandings. &nbsp;Concurrently with this Agreement, the Parties have also entered into separate agreements to bring about a settlement of the Connecticut Litigation and the CE Litigation, respectively. &nbsp;This Agreement may be modified or amended only by written agreement, executed by the authorized representatives of each of the Parties.</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin-top:12pt; margin-bottom:-14pt; padding-left:104.4pt; text-indent:-50.4pt; font-size:12pt"><U>5.2.</U></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:3pt; padding-left:104.4pt; font-size:12pt"><U>Notices</U>. &nbsp;All notices or other communications that are required or permitted hereunder shall be in writing and delivered personally, sent by facsimile (and promptly confirmed by personal delivery, registered or certified mail or overnight courier), sent by nationally-recognized overnight courier or sent by registered or certified mail, postage prepaid, return receipt requested, addressed as follows:</P>
<P style="margin:0pt"><BR></P>
<P style="line-height:14pt; margin:0pt; padding-left:180pt; text-indent:-36pt; font-size:12pt" align=justify>If to Applera:</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin:0pt; padding-left:180pt; text-indent:-36pt; font-size:12pt" align=justify>Applied Biosystems</P>
<P style="line-height:14pt; margin:0pt; padding-left:180pt; text-indent:-36pt; font-size:12pt" align=justify>850 Lincoln Centre Drive</P>
<P style="line-height:14pt; margin:0pt; padding-left:180pt; text-indent:-36pt; font-size:12pt" align=justify>Foster City, California, U.S.A. 94404</P>
<P style="line-height:14pt; margin:0pt; padding-left:180pt; text-indent:-36pt; font-size:12pt" align=justify>Attention: &nbsp;Director of Licensing</P>
<P style="line-height:14pt; margin:0pt; padding-left:180pt; text-indent:-36pt; font-size:12pt" align=justify>Fax No. (650) 638-6071</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin:0pt; padding-left:180pt; text-indent:-36pt; font-size:12pt" align=justify>If to Bio-Rad:</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin:0pt; padding-left:180pt; text-indent:-36pt; font-size:12pt" align=justify>Bio-Rad Laboratories, Inc.</P>
<P style="line-height:14pt; margin:0pt; padding-left:180pt; text-indent:-36pt; font-size:12pt" align=justify>1000 Alfred Nobel Drive</P>
<P style="line-height:14pt; margin:0pt; padding-left:180pt; text-indent:-36pt; font-size:12pt" align=justify>Hercules, CA &nbsp;94547</P>
<P style="line-height:14pt; margin:0pt; padding-left:180pt; text-indent:-36pt; font-size:12pt" align=justify>Attention: &nbsp;General Counsel</P>
<P style="line-height:14pt; margin:0pt; padding-left:180pt; text-indent:-36pt; font-size:12pt" align=justify>Fax No. (510) 741-5815</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin:0pt; padding-left:180pt; text-indent:-36pt; font-size:12pt" align=justify>If to MJ Research:</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin:0pt; padding-left:180pt; text-indent:-36pt; font-size:12pt" align=justify>Bio-Rad Laboratories, Inc.</P>
<P style="line-height:14pt; margin:0pt; padding-left:180pt; text-indent:-36pt; font-size:12pt" align=justify>1000 Alfred Nobel Drive</P>
<P style="margin:0pt" align=justify><BR>
<BR></P>
<P style="line-height:14pt; margin:0pt; font-size:12pt" align=center>11</P>
<P style="margin:0pt"><BR></P>
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<P style="margin:0pt; page-break-before:always" align=right><BR></P>
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<P style="line-height:14pt; margin:0pt; padding-left:180pt; text-indent:-36pt; font-size:12pt" align=justify>Hercules, CA &nbsp;94547</P>
<P style="line-height:14pt; margin:0pt; padding-left:180pt; text-indent:-36pt; font-size:12pt" align=justify>Attention: &nbsp;General Counsel</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:108pt; text-indent:36pt; font-size:12pt" align=justify>ax No. (510) 741-5815</P>
<P style="margin-top:0pt; margin-bottom:12pt" align=justify><BR></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:108pt; font-size:12pt" align=justify>or to such other address as the Party to whom notice is to be given may have furnished to the other Parties in writing in accordance herewith. &nbsp;Any such communication shall be deemed to have been given (i) when delivered, if personally delivered or sent by telecopier on a business day, (ii) on the business day after dispatch, if sent by nationally-recognized overnight courier, and (iii) on the third business day following the date of mailing, if sent by mail. &nbsp;</P>
<P style="line-height:14pt; margin-top:12pt; margin-bottom:-14pt; padding-left:104.4pt; text-indent:-50.4pt; font-size:12pt"><U>5.3.</U></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:3pt; padding-left:104.4pt; font-size:12pt"><U>Certain Representations of the Parties</U>. &nbsp;Each Party hereto represents that: (i) such Party has been fully advised by counsel in connection with the negotiation and execution of this Agreement; (ii) each has the corporate power and authority, and the legal right, to make, execute, deliver and perform this Agreement; (iii) no consent or authorization or, filing with, any governmental authority is required in connection with the execution, delivery, performance, validity or enforceability of this Agreement, (iv) the execution, delivery and performance of this Agreement will not violate any requirement of law or any contractual obligation of such Party and will not result in, or require, the creation or imposition of any lien on any of their respective properties or revenues pursuant to any requirement of law or any such contractual obligation (other than the liens created by this Agreement) and (v) t
his Agreement constitutes a legal, valid and binding obligation of each Party, enforceable against each such Party, its affiliates, successors and assigns in accordance with its terms.</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin-top:12pt; margin-bottom:-14pt; padding-left:104.4pt; text-indent:-50.4pt; font-size:12pt"><U>5.4.</U></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:3pt; padding-left:104.4pt; font-size:12pt"><U>Governing Law and Venue</U>. &nbsp;This Agreement, its construction, performance and enforcement shall be governed by the laws of the State of California without regard to any choice of law provisions. &nbsp;All claims or disputes arising under or with respect to this Agreement, or with respect to the interpretation, performance, enforcement, or breach of this Agreement, shall be resolved in the District Court, which shall have exclusive jurisdiction for all such claims or disputes. &nbsp;If for any reason the District Court or other court with jurisdiction holds that the District Court lacks jurisdiction to adjudicate any such claim or dispute, the Parties agree that the exclusive jurisdiction and venue for resolving such claim or dispute shall reside in the courts of the State of California, the courts of the United States in the Northern District of California, and appellate courts from any thereof. &nb
sp;Each Party consents that any such action or proceeding may be </P>
<P style="margin-top:12pt; margin-bottom:3pt"><BR>
<BR></P>
<P style="line-height:14pt; margin:0pt; font-size:12pt" align=center>12</P>
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<P style="line-height:14pt; margin-top:12pt; margin-bottom:3pt; padding-left:104.4pt; font-size:12pt">brought in such courts and waives any objection or defense (including, without limitation any defense of inconvenient forum) that it may now or hereafter have to the venue of any such action or proceeding in any such court.</P>
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<P style="line-height:14pt; margin-top:12pt; margin-bottom:-14pt; padding-left:104.4pt; text-indent:-50.4pt; font-size:12pt"><U>5.5.</U></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:3pt; padding-left:104.4pt; font-size:12pt"><U>Service of Process</U>. &nbsp;Without limiting the right to effect service of process in any other manner permitted by law, service of process in any such action or proceeding arising under or with respect to this Agreement, or with respect to the interpretation, performance, enforcement, or breach of this Agreement may be effected by mailing a copy thereof by registered or certified mail (or any substantially similar form of mail), postage prepaid, to such Party at its address referred to in Article 5 hereof.</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin-top:12pt; margin-bottom:-14pt; padding-left:104.4pt; text-indent:-50.4pt; font-size:12pt"><U>5.6.</U></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:3pt; padding-left:104.4pt; font-size:12pt"><U>Severability</U>. &nbsp;If any provision hereof should be held invalid, illegal or unenforceable in any respect, then, to the fullest extent permitted by applicable law: (a) all other provisions hereof shall remain in full force and effect and shall be liberally construed in order to carry out the intent of the Parties as nearly as may be possible, and (b) the Parties agree to negotiate in good faith a provision, in replacement of the provision held invalid, illegal or unenforceable, that is consistent with applicable law and accomplishes, as nearly as possible, the original intention of the Parties with respect thereto. &nbsp;To the fullest extent permitted by applicable law, each Party hereby waives any provision of law that would render any provision hereof prohibited or unenforceable in any respect.</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin-top:12pt; margin-bottom:-14pt; padding-left:104.4pt; text-indent:-50.4pt; font-size:12pt"><U>5.7.</U></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:3pt; padding-left:104.4pt; font-size:12pt"><U>Construction</U>. &nbsp;Except where the context otherwise requires, wherever used, the singular shall include the plural and the word &#147;or&#148; is used in the inclusive sense. &nbsp;The captions and headings of this Agreement are for convenience of reference only and in no way define, describe, extend or limit the scope or intent of this Agreement or the intent of any provision contained in this Agreement. &nbsp;Each Party hereto and its counsel have participated fully in the review and negotiation of this Agreement. &nbsp;Both Parties have participated equally in the formation of this Agreement; the language of this Agreement shall not be presumptively construed against either Party.</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin-top:12pt; margin-bottom:-14pt; padding-left:104.4pt; text-indent:-50.4pt; font-size:12pt"><U>5.8.</U></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:3pt; padding-left:104.4pt; font-size:12pt"><U>Waiver</U>. &nbsp;The waiver by either Party hereto of any right hereunder shall not be deemed a waiver of any other right hereunder. &nbsp;&nbsp;Temporary waiver or forbearance hereunder shall not constitute permanent waiver.</P>
<P style="margin-top:12pt; margin-bottom:3pt"><BR>
<BR></P>
<P style="line-height:14pt; margin:0pt; font-size:12pt" align=center>13</P>
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<P style="line-height:14pt; margin-top:12pt; margin-bottom:-14pt; padding-left:104.4pt; text-indent:-50.4pt; font-size:12pt"><U>5.9.</U></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:3pt; padding-left:104.4pt; font-size:12pt"><U>Execution in Counterparts</U>. &nbsp;This Agreement may be executed (including via facsimile) in two (2) or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin-top:12pt; margin-bottom:-14pt; padding-left:104.4pt; text-indent:-50.4pt; font-size:12pt"><U>5.10.</U></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:3pt; padding-left:104.4pt; font-size:12pt"><U>No Third Party Beneficiary</U>. &nbsp;The representations, warranties, covenants, rights and obligations set forth in this Agreement are for the sole benefit of the Parties and their successors and permitted assigns, and they shall not be construed as conferring any rights on any third parties.</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin-top:12pt; margin-bottom:-14pt; padding-left:104.4pt; text-indent:-50.4pt; font-size:12pt"><U>5.11.</U></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:3pt; padding-left:104.4pt; font-size:12pt"><U>Assignment</U>. &nbsp;</P>
<P style="margin:0pt"><BR></P>
<P style="line-height:14pt; margin:0pt; font-size:12pt" align=center>[**]</P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin-top:12pt; margin-bottom:-14pt; padding-left:104.4pt; text-indent:-50.4pt; font-size:12pt"><U>5.12.</U></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:3pt; padding-left:104.4pt; font-size:12pt"><U>Legal Costs</U>. &nbsp;The Parties agree that.</P>
<P style="line-height:14pt; margin:0pt; font-size:12pt" align=center>[**]</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin-top:12pt; margin-bottom:-14pt; padding-left:104.4pt; text-indent:-50.4pt; font-size:12pt"><U>5.13.</U></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:3pt; padding-left:104.4pt; font-size:12pt"><U>Nondisclosure Obligation</U>. &nbsp;Each Party shall forever maintain the confidentiality of this Agreement and all exhibits hereto and shall not disclose the terms hereof or the subject matter of any negotiations with Applera preceding this Agreement; provided, however, that nothing herein shall restrict a Party&#146;s disclosure of such information subject to a nondisclosure agreement with such parties that is consistent with the nondisclosure obligations of this Agreement to (i) its officers, directors, shareholders, attorneys, auditors or accountants; (ii) its lenders or prospective lenders; and (iii) prospective investors or investment advisors. &nbsp;Bio-Rad and MJ Research shall provide prompt written notification to Applera of any disclosure of this Agreement or any exhibits hereto in accordance with the preceding sentence. &nbsp;Each Party shall also have the right to disclose solely such informat
ion as may be required by court order or subpoena or order of other regulatory authority with applicable jurisdiction; provided, however, that the Party proposing to make such disclosure shall provide prompt, prior written notification of the same to the other Party and provide the other Party the opportunity to seek a </P>
<P style="margin-top:12pt; margin-bottom:3pt"><BR>
<BR></P>
<P style="line-height:14pt; margin:0pt; font-size:12pt" align=center>14</P>
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<P style="margin:0pt; page-break-before:always" align=right><BR></P>
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<P style="line-height:14pt; margin-top:12pt; margin-bottom:3pt; padding-left:104.4pt; font-size:12pt">protective order or other injunctive relief to limit, or protect the confidentiality of, such disclosure. &nbsp;The Parties further shall use their best efforts to file this Agreement and all exhibits hereto under seal with the District Court and shall not file this Agreement or any exhibits hereto without the protection of a seal unless Applera consents to such filing in writing. &nbsp;Either Party may make any public or private disclosure that it has determined based upon the advice of its legal counsel is required by applicable law or stock exchange rules (in which case such party will provide advance notice to the other party to the extent reasonably practical under the circumstances). &nbsp;In the event of litigation between Applera on the one hand and one or more of Bio-Rad and MJ Research on the other hand, each Party shall have the right to offer this Agreement for use in prosecuting or defending suc
h litigation; provided, however, that to the extent reasonably possible the producing Party shall seek to have the Agreement be filed under seal or for in camera inspection. &nbsp;Applera shall also have the right to disclose this Agreement and the terms hereof (i) to prospective licensees under confidentiality agreement; and (ii) in prosecuting or defending litigation involving third parties provided, however, that to the extent reasonably possible Applera shall seek to have the Agreement be filed in such litigation under seal or for in camera inspection. &nbsp;Notwithstanding anything herein to the contrary, &nbsp;</P>
<P style="margin:0pt"><BR></P>
<P style="line-height:14pt; margin:0pt; font-size:12pt" align=center>[**]</P>
<P style="margin:0pt"><BR></P>
<P style="line-height:14pt; margin:0pt; padding-left:102pt; font-size:12pt">The Parties agree to jointly draft and issue a mutually acceptable press release announcing this Agreement, substantially in the form of Exhibit F hereto, promptly after this Agreement has been fully executed; such acceptance to be in writing and not to be unreasonably withheld. &nbsp;Except as provided above, neither Party shall issue a press release concerning this Agreement or the terms hereof.</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="margin:0pt"><BR></P>
<P style="line-height:14pt; margin:0pt; font-size:12pt">/ / /</P>
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<BR></P>
<P style="line-height:14pt; margin:0pt; font-size:12pt" align=center>15</P>
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<P style="line-height:14pt; margin-top:0pt; margin-bottom:6pt; text-indent:36pt; font-size:12pt" align=justify>IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be duly executed by their respective authorized representatives, effective as of the Effective Date.</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="margin:0pt" align=justify><BR></P>
<TABLE style="font-size:10pt" cellspacing=0><TR><TD width=35.4></TD><TD width=203.8></TD><TD width=34.15></TD><TD width=191.4></TD></TR>
<TR><TD valign=top width=47.2>&nbsp;</TD><TD valign=top width=271.733>&nbsp;</TD><TD valign=top width=45.533>&nbsp;</TD><TD valign=top width=255.2>&nbsp;</TD></TR>
<TR><TD valign=top width=47.2>&nbsp;</TD><TD valign=top width=271.733><P style="line-height:13pt; margin:0pt; font-size:11pt">APPLERA CORPORATION, THROUGH ITS APPLIED BIOSYSTEMS GROUP</P>
</TD><TD valign=top width=45.533>&nbsp;</TD><TD valign=top width=255.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=justify>BIO-RAD LABORATORIES, INC.</P>
</TD></TR>
<TR><TD valign=top width=47.2>&nbsp;</TD><TD valign=top width=271.733>&nbsp;</TD><TD valign=top width=45.533>&nbsp;</TD><TD valign=top width=255.2>&nbsp;</TD></TR>
<TR><TD valign=top width=47.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>By:</P>
</TD><TD valign=top width=271.733><P style="line-height:13pt; margin:0pt; font-size:11pt" align=justify><U>/s/ Catherine M. Burzik</U></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=justify>Name: &nbsp;Catherine M. Burzik</P>
</TD><TD valign=top width=45.533><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>By:</P>
</TD><TD valign=top width=255.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=justify><U>/s/ Norman Schwartz</U></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=justify>Name: &nbsp;Norman Schwartz</P>
</TD></TR>
<TR><TD valign=top width=47.2>&nbsp;</TD><TD valign=top width=271.733><P style="line-height:13pt; margin:0pt; font-size:11pt" align=justify>Title: &nbsp;&nbsp;&nbsp;President</P>
</TD><TD valign=top width=45.533>&nbsp;</TD><TD valign=top width=255.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=justify>Title: &nbsp;&nbsp;&nbsp;President</P>
</TD></TR>
<TR><TD valign=top width=47.2>&nbsp;</TD><TD valign=top width=271.733>&nbsp;</TD><TD valign=top width=45.533>&nbsp;</TD><TD valign=top width=255.2>&nbsp;</TD></TR>
<TR><TD valign=top width=47.2>&nbsp;</TD><TD valign=top width=271.733><P style="line-height:13pt; margin:0pt; font-size:11pt" align=justify>Date: &nbsp;&nbsp;February 9, 2006</P>
</TD><TD valign=top width=45.533>&nbsp;</TD><TD valign=top width=255.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=justify>Date: &nbsp;&nbsp;&nbsp;February 9, 2006</P>
</TD></TR>
<TR><TD valign=top width=47.2>&nbsp;</TD><TD valign=top width=271.733>&nbsp;</TD><TD valign=top width=45.533>&nbsp;</TD><TD valign=top width=255.2>&nbsp;</TD></TR>
<TR><TD valign=top width=47.2>&nbsp;</TD><TD valign=top width=271.733><P style="line-height:13pt; margin:0pt; font-size:11pt" align=justify>MJ RESEARCH, INC.</P>
</TD><TD valign=top width=45.533>&nbsp;</TD><TD valign=top width=255.2>&nbsp;</TD></TR>
<TR><TD valign=top width=47.2>&nbsp;</TD><TD valign=top width=271.733>&nbsp;</TD><TD valign=top width=45.533>&nbsp;</TD><TD valign=top width=255.2>&nbsp;</TD></TR>
<TR><TD valign=top width=47.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>By:</P>
</TD><TD valign=top width=271.733><P style="line-height:13pt; margin:0pt; font-size:11pt" align=justify><U>/s/ Norman Schwartz</U></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=justify>Name: &nbsp;Norman Schwartz</P>
</TD><TD valign=top width=45.533>&nbsp;</TD><TD valign=top width=255.2>&nbsp;</TD></TR>
<TR><TD valign=top width=47.2>&nbsp;</TD><TD valign=top width=271.733><P style="line-height:13pt; margin:0pt; font-size:11pt" align=justify>Title: &nbsp;&nbsp;&nbsp;President</P>
</TD><TD valign=top width=45.533>&nbsp;</TD><TD valign=top width=255.2>&nbsp;</TD></TR>
<TR><TD valign=top width=47.2>&nbsp;</TD><TD valign=top width=271.733>&nbsp;</TD><TD valign=top width=45.533>&nbsp;</TD><TD valign=top width=255.2>&nbsp;</TD></TR>
<TR><TD valign=top width=47.2>&nbsp;</TD><TD valign=top width=271.733><P style="line-height:13pt; margin:0pt; font-size:11pt" align=justify>Date: &nbsp;&nbsp;&nbsp;February 9, 2006</P>
</TD><TD valign=top width=45.533>&nbsp;</TD><TD valign=top width=255.2>&nbsp;</TD></TR>
</TABLE>
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<FILENAME>exh1016.htm
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<P style="margin:0pt" align=right><FONT FACE="Times New Roman" COLOR=#000000><B><U>Exhibit 10.16</U></B></FONT></P>
<P style="margin:0pt"><BR></P>
<P style="line-height:14pt; margin:0pt; font-size:12pt" align=center><B><U>AMENDED AND RESTATED THERMAL CYCLER SUPPLIER</U></B></P>
<P style="line-height:14pt; margin:0pt; font-size:12pt" align=center><B><U>AGREEMENT</U></B></P>
<P style="margin:0pt" align=center><BR></P>
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<P style="line-height:20pt; margin:0pt; text-indent:72pt; font-size:12pt" align=justify>This Amended and Restated Thermal Cycler Supplier Agreement (this &#147;Agreement&#148;), is entered into as of February &nbsp;9, 2006 (the &#147;Effective Date&#148;), by and between Applera Corporation, a corporation of the State of Delaware, through its Applied Biosystems Group, having an office at 850 Lincoln Centre Drive, Foster City, California 94404 (collectively, &quot;ABI&quot;), and Bio-Rad Laboratories, Inc., having an office at 1000 Alfred Nobel Drive, Hercules, California 94547 (&#147;Bio-Rad&#148;) and MJ Research Inc., having an office at 590 Lincoln Street, Waltham, Massachusetts 02451 (&#147;MJ Research&#148;) (Bio-Rad and MJ Research, collectively, &quot;Thermal Cycler Supplier&quot;). (each of ABI and Thermal Cycler Supplier, &nbsp;a &#147;Party&#148;, and, collectively, &#147;Parties.&quot;) &nbsp;This Agreement supersedes and replaces the Thermal Cycler Supplier Agreement between ABI and Bio-Rad havin
g an effective date of April 1, 1998 (the &#147;Prior Agreement&#148;).</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:20pt; margin:0pt; text-indent:36pt; font-size:12pt" align=justify>WHEREAS, ABI and MJ Research have engaged in a litigation styled <U>Applera Corporation and Roche Molecular Systems, Inc., plaintiffs, v. MJ Research Inc. and Michael and John Finney, defendants</U>, 3:98cv1201 (JBA) (&quot;the Litigation&quot;) in the United States District Court for the District of Connecticut (the &#147;District Court&#148;) wherein ABI and Roche Molecular Systems (&#147;Roche&#148;) have charged MJ Research and the other defendants with infringing and inducing others to infringe several Roche and ABI patents described below; </P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:20pt; margin:0pt; text-indent:36pt; font-size:12pt" align=justify>WHEREAS, on April 2, 2004, the jury, in the Litigation rendered a verdict (hereinafter, the &#147;Verdict&#148;) in Phase I of the trial finding, among other things, that (i) defendants induced infringement of all the Patents in Suit, and directly and contributorily infringed the &#145;675 and &#145;610 Patents, and (ii) defendants&#146; induced infringement as to the PCR Process Patents and the &#145;493 Patent was willful. &nbsp;The jury&#146;s verdict was entered on April 15, 2004;</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:20pt; margin:0pt; text-indent:36pt; font-size:12pt" align=justify>WHEREAS, the District Court has granted summary judgment in favor of the plaintiffs in the Connecticut Litigation on all of defendants&#146; defenses and counterclaims alleging patent misuse and</P>
<P style="margin:0pt" align=justify><BR>
<BR></P>
<P style="line-height:11pt; margin-top:0pt; margin-bottom:-11pt; font-size:9pt">Legend:</P>
<P style="margin:0pt; text-indent:214.75pt">1</P>
<P style="margin:0pt">[**] This material has been omitted pursuant to a request for confidential treatment. &nbsp;The material has been filed separately with the Commission.</P>
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<P style="line-height:20pt; margin:0pt; font-size:12pt" align=justify>violations of state and federal and state antitrust laws and unfair trade or competition laws, and dismissed all of defendants&#146; counterclaims based thereon;</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:20pt; margin:0pt; text-indent:36pt; font-size:12pt" align=justify>WHEREAS, on or before August 18, 2004 BioRad succeeded to the interests of MJ Research and its Affiliates by acquiring MJ Geneworks, Inc., and its subsidiaries including MJ Research;</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:20pt; margin:0pt; text-indent:36pt; font-size:12pt" align=justify>WHEREAS, on March 30, 2005 the District Court, entered judgement against the defendants in the Connecticut Litigation and awarded the plaintiffs enhanced damages for the defendants&#146; willful infringement; </P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:20pt; margin:0pt; text-indent:36pt; font-size:12pt" align=justify>WHEREAS, on August 30, 2005 the District Court entered an injunction against the defendants, permanently enjoining the defendants from further infringement of the &#145;675, &#145;610 and &#145;493 Patents (the &#147;Instrument-Patents-in-Suit&#148;)</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:20pt; margin:0pt; text-indent:36pt; font-size:12pt" align=justify>WHEREAS, Applera, but for this Agreement, would continue to pursue the Litigation by, among other things, seeking attorney&#146;s fees prejudgment interest and postjudgment interest;</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:20pt; margin:0pt; text-indent:36pt; font-size:12pt" align=justify>WHEREAS, the parties to the Litigation have agreed to entry of a Consent Judgment (as defined below) in that litigation adjudging said patents to be valid, enforceable and infringed and enjoining Thermal Cycler Supplier and the other defendants from continuing their infringing activities;</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:20pt; margin:0pt; text-indent:36pt; font-size:12pt" align=justify>WHEREAS, as part of a settlement of the foregoing Litigation, this Agreement is entered into in conjunction with and as a part of that certain &#147;Settlement Agreement&#148; (the &#147;Settlement Agreement&#148;) of even date herewith between ABI and Roche, on the one hand, and MJ Research and </P>
<P style="margin:0pt" align=justify><BR>
<BR></P>
<P style="margin:0pt; text-indent:214.75pt">2</P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt; page-break-before:always" align=right><BR></P>
<P style="margin:0pt"><BR></P>
<P style="line-height:20pt; margin:0pt; font-size:12pt" align=justify>other defendants, on the other hand, and Thermal Cycler Supplier agrees to sign the Settlement Agreement as if it were a defendant in the Litigation;</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:20pt; margin:0pt; text-indent:36pt; font-size:12pt" align=justify>WHEREAS, ABI is entering into this Agreement in reliance upon, among other things, the representations, warranties and covenants of Thermal Cycler Supplier contained in the Settlement Agreement;</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:20pt; margin:0pt; text-indent:36pt; font-size:12pt" align=justify>WHEREAS, ABI had (as to such patents that have now expired) and has (as to remaining patents) the power to convey certain limited rights for research and in certain other fields under the now expired U.S. Patents Nos. 4,683,195, 4,683,202 and 4,965,188, describing and claiming gene amplification processes including, among others, a process known as the polymerase chain reaction (&quot;PCR&quot;) process, which are owned by Roche Molecular Systems, Inc., and amplification process claims in corresponding counterpart patents and patent applications in other countries, owned by F. Hoffmann-La Roche Ltd (both of which are referred to collectively herein as &quot;Roche&quot;);</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:20pt; margin:0pt; text-indent:36pt; font-size:12pt" align=justify>WHEREAS, ABI offers to PCR users certain commercial and non-commercial license rights under these patents and patent applications for the automated performance of the PCR process for research and certain other fields that include, <U>inter</U> <U>alia</U>, an up-front fee component based on the capacity of thermal cyclers used to perform the process;</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:20pt; margin:0pt; text-indent:36pt; font-size:12pt" align=justify>WHEREAS, ABI offers to thermal cycler suppliers license rights under those patents, namely, an authorization to distribute their instruments with a label conveying to their customers rights under the up-front fee component of the PCR licenses described above, and the right to promote their instruments as &quot;Authorized Thermal Cyclers&quot; (as defined below) for PCR;</P>
<P style="margin:0pt" align=center><BR></P>
<P style="line-height:20pt; margin:0pt; text-indent:36pt; font-size:12pt" align=justify>WHEREAS, ABI owns U.S. Patents Nos. 5,038,852 and 5,333,675, describing and claiming automated apparatus suitable for performing the PCR process, and apparatus claims in corresponding counterpart patents and patent applications in other countries;</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="margin:0pt" align=justify><BR>
<BR></P>
<P style="margin:0pt; text-indent:214.75pt">3</P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt; page-break-before:always" align=right><BR></P>
<P style="margin:0pt"><BR></P>
<P style="line-height:20pt; margin:0pt; text-indent:36pt; font-size:12pt" align=justify>WHEREAS, ABI owns U.S. Patent Nos. 5,475,610, 6,703,236 B2, and U.S. Patent Application Ser. No. 10/691,186 (Publication No. 2004/0248146 A2), describing and claiming </P>
<P style="line-height:20pt; margin:0pt; font-size:12pt" align=justify>improvements in thermal cycling apparatus for PCR, including methods comprising calculating </P>
<P style="margin:0pt" align=justify><BR></P>
<P style="margin:0pt" align=justify><BR></P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:20pt; margin:0pt; font-size:12pt" align=justify>sample temperatures (algorithm claims) and a pressing heated cover, and corresponding counterpart patents and patent applications in other countries;</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:20pt; margin:0pt; text-indent:36pt; font-size:12pt" align=justify>WHEREAS, ABI owns U.S. Patent No. 5,656,493, describing and claiming an amplification system comprising PCR reagents and a thermal cycler programmed to carry out a PCR protocol;</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:20pt; margin:0pt; text-indent:36pt; font-size:12pt" align=justify>WHEREAS, ABI owns patents and applications outside the U.S. that claim priority of U.S. application Serial No. 899,061 (filed in 1986) and that claim automated performance of the PCR process using certain programmed thermal cyclers;</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:20pt; margin:0pt; text-indent:36pt; font-size:12pt" align=justify>WHEREAS, ABI offers to PCR users license rights for research and certain other fields under its U.S. Patent No. 5,656,493 amplification system claims and under the automated method claims of its foreign patents and applications claiming priority of U.S. application Serial No. 899,061 respectively, and offers to thermal cycler suppliers the right to pass such rights to their thermal cycler customers;</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:20pt; margin:0pt; text-indent:36pt; font-size:12pt" align=justify>WHEREAS, ABI has offered to Thermal Cycler Supplier the above Roche process rights claimed by U.S. Patents Nos. 4,683,195, 4,683,202 and 4,965,188 and corresponding amplification process claims in patents and patent applications in other countries claiming priority of any of them, and the ABI systems, apparatus, automated method and pressing heated cover rights under the other patents and patents applications enumerated above separately or in combinations; </P>
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<BR></P>
<P style="margin:0pt; text-indent:214.75pt">4</P>
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<P style="line-height:20pt; margin:0pt; text-indent:36pt; font-size:12pt" align=justify>WHEREAS, Thermal Cycler Supplier has requested, as part of the Settlement Agreement, all the foregoing license rights in combination, together with license rights under the algorithm claims of U.S. Patent No. 5,475,610, 6,703,236 B2 and U.S. Patent Application Ser. No. 10/691,186 (Publication No. 2004/0248146 A2) and corresponding counterpart patents and patent applications in other countries; and</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:20pt; margin:0pt; text-indent:36pt; font-size:12pt" align=justify>WHEREAS, Thermal Cycler Supplier wishes to sell Thermal Cyclers and Temperature Cycling Instruments in modular form in addition to selling the same as complete instruments.</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:20pt; margin:0pt; text-indent:36pt; font-size:12pt" align=justify>NOW, THEREFORE, in consideration of the promises set forth herein and other good and valuable consideration the sufficiency and receipt of which is hereby acknowledged, the Parties agree as follows:</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:36pt; font-size:12pt" align=justify><B><U>1.</U></B></P>
<P style="line-height:20pt; margin-top:0pt; margin-bottom:12pt; text-indent:54pt; font-size:12pt" align=justify><B><U>Definitions</U></B></P>
<P style="line-height:20pt; margin-top:0pt; margin-bottom:12pt; text-indent:72pt; font-size:12pt" align=justify>Terms, when used herein with initial capital letters, shall have the respective meanings set forth below.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:36pt; font-size:12pt" align=justify><B>1.1</B></P>
<P style="line-height:20pt; margin-top:0pt; margin-bottom:12pt; text-indent:54pt; font-size:12pt" align=justify><B>&quot;Affiliate&quot;</B> of a Party to this Agreement shall mean an organization: &nbsp;a) whose voting stock is controlled or owned directly or indirectly to the extent of fifty percent (50%) or more by the party; b) which directly or indirectly owns or controls fifty percent (50%) or more of the voting stock of the party; c) whose majority ownership is directly or indirectly common to that of the party; or d) defined under (a), (b), or (c) above except the amount of said ownership is less than fifty percent (50%) but that amount is the maximum amount permitted by law and Thermal Cycler Supplier has effective control.</P>
<P style="line-height:20pt; margin-top:0pt; margin-bottom:12pt; text-indent:72pt; font-size:12pt" align=justify>It is understood and agreed that OEM Systems KK, a Japanese corporation with offices at 84 Mekawa Makishima-cho, Uji, Kyoto, 611-0041 Japan (&#147;OEM Systems KK&#148;) shall be deemed an Affiliate of Thermal Cycler Supplier for so long as Thermal Cycler Supplier maintains at least &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[**] &nbsp;&nbsp;&nbsp;&nbsp;ownership interest in OEM Systems KK.</P>
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<BR></P>
<P style="margin:0pt; text-indent:214.75pt">5</P>
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<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:36pt; font-size:12pt" align=justify>1.2</P>
<P style="line-height:20pt; margin-top:0pt; margin-bottom:12pt; text-indent:54pt; font-size:12pt" align=justify>&#147;<B>Algorithm Patent Rights&quot;</B> shall mean within claims 1, 44 and 158 (to the extent it incorporates the features of claim 1) of U.S. Patent No. 5,475,610, claim 7 of U.S. Patent No. 6,703,236, and Valid Claims of U.S. Patent Application Publication No. US 2004/0248146 A2, and corresponding Valid Claims in foreign counterpart patents and patent applications thereof in other countries. &nbsp;</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:36pt; font-size:12pt" align=justify>1.3</P>
<P style="line-height:20pt; margin-top:0pt; margin-bottom:12pt; text-indent:54pt; font-size:12pt" align=justify>&quot;<B>Amplification Patent Rights</B>&quot; shall mean the nucleic acid amplification processes, including particularly the PCR process, covered by: United States Patents Nos. 4,683,195, 4,683,202 </P>
<P style="margin-top:0pt; margin-bottom:12pt" align=justify><BR></P>
<P style="margin-top:0pt; margin-bottom:12pt" align=justify><BR></P>
<P style="line-height:20pt; margin-top:0pt; margin-bottom:12pt; font-size:12pt" align=justify>and 4,965,188; and any corresponding amplification process Valid Claim in patents and patent applications in other countries claiming priority of any of them. &nbsp;</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:36pt; font-size:12pt" align=justify><B>1.4</B></P>
<P style="line-height:20pt; margin-top:0pt; margin-bottom:12pt; text-indent:54pt; font-size:12pt" align=justify><B>&quot;Amplification System Patent Rights&quot;</B> shall mean U.S. Patent No. 5,656,493, which describes and claims an amplification system comprising PCR reagents and a thermal cycler programmed to carry out a PCR protocol. &nbsp;</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:36pt; font-size:12pt" align=justify><B>1.5</B></P>
<P style="line-height:20pt; margin-top:0pt; margin-bottom:12pt; text-indent:54pt; font-size:12pt" align=justify><B>&quot;Authorized Reagent&quot;</B> shall mean a DNA polymerase whose use in performance of the PCR process is covered by the running-royalty component of a PCR process license under the Amplification Patent Rights for internal research and development. &nbsp;The running-royalty component of that license may be obtained through the purchase of reagents bearing a valid label conveying the running-royalty component; alternatively, it may be purchased from ABI. &nbsp;Other PCR process licenses in the Fields also require use of Authorized Reagents.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:36pt; font-size:12pt" align=justify>1.6</P>
<P style="line-height:20pt; margin-top:0pt; margin-bottom:12pt; text-indent:54pt; font-size:12pt" align=justify>&quot;<B>Authorized Thermal Cycler</B>&quot; shall mean a Thermal Cycler or Temperature Cycling Instrument whose use in automated performance of the PCR process is covered by the automated-capacity, up-front fee component of a PCR process license under the Amplification Patent Rights for internal research and development. &nbsp;The up-front fee component of that license may be obtained through the purchase of a Thermal Cycler or Temperature Cycling Instrument bearing a valid label </P>
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<BR></P>
<P style="margin:0pt; text-indent:214.75pt">6</P>
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<P style="line-height:20pt; margin-top:0pt; margin-bottom:12pt; font-size:12pt" align=justify>conveying the up-front component; alternatively, it may be purchased from ABI. &nbsp;Other PCR process licenses in the Fields also require use of an instrument whose use is similarly covered, i.e., an &quot;Authorized Thermal Cycler&quot;. &nbsp;</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:36pt; font-size:12pt" align=justify>1.7</P>
<P style="line-height:20pt; margin-top:0pt; margin-bottom:12pt; text-indent:54pt; font-size:12pt" align=justify>&quot;<B>Automated Method Patent Rights</B>&quot; shall mean automated method n ABI's patents and applications outside the U.S. that claim priority of U.S. application Serial No. 899,061. &nbsp;Automated Method Patent Rights include rights only under the identified ABI patents and applications. &nbsp;</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:36pt; font-size:12pt" align=justify><B>1.8</B></P>
<P style="line-height:20pt; margin-top:0pt; margin-bottom:12pt; text-indent:54pt; font-size:12pt" align=justify><B>&#147;Consent Judgment&#148; </B>shall mean the Consent Judgment of even date herewith entered into by ABI and Roche, on the one hand, and MJ Research, Thermal Cycler Supplier, Michael Finney and John Finney, on the other hand.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:36pt; font-size:12pt" align=justify><B>1.9</B></P>
<P style="line-height:20pt; margin-top:0pt; margin-bottom:12pt; text-indent:54pt; font-size:12pt" align=justify><B>&quot;Fields&quot;</B> shall mean research and development, quality assurance or control, environmental testing, food testing, plant diagnostics, identity testing (other than parentage testing for humans) and forensics. &nbsp;The Fields specifically exclude human and veterinary diagnostics.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:36pt; font-size:12pt" align=justify>1.10</P>
<P style="line-height:20pt; margin-top:0pt; margin-bottom:12pt; text-indent:72pt; font-size:12pt" align=justify>&#147;<B>MJ Catalog</B>&#148; shall mean the copy of the published &#148;MJ Research 2004 / 05 product catalog&#148; &nbsp;that has been scanned into an Adobe Acrobat (&#145;pdf&#148;) file and attached hereto as Exhibit A.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:36pt; font-size:12pt" align=justify><B>1.11</B></P>
<P style="line-height:20pt; margin-top:0pt; margin-bottom:5pt; text-indent:72pt; font-size:12pt" align=justify><B>&quot;Net Sales Price&quot;</B> shall mean</P>
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<P style="line-height:20pt; margin-top:0pt; margin-bottom:12pt; text-indent:36pt; font-size:12pt" align=center>[**]</P>
<P style="margin-top:0pt; margin-bottom:12pt" align=center><BR>
<BR></P>
<P style="margin:0pt; text-indent:214.75pt">7</P>
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<P style="line-height:20pt; margin-top:0pt; margin-bottom:12pt; text-indent:36pt; font-size:12pt" align=justify>&nbsp;</P>
<P style="margin-top:0pt; margin-bottom:12pt" align=justify><BR></P>
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<BR></P>
<P style="margin:0pt; text-indent:214.75pt">8</P>
<P style="margin:0pt"><BR></P>
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<P style="margin:0pt"><BR></P>
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<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:36pt; font-size:12pt" align=justify>1.12</P>
<P style="line-height:20pt; margin-top:0pt; margin-bottom:12pt; text-indent:72pt; font-size:12pt" align=justify>&quot;<B>Pressing Heated Cover Patent Rights</B>&quot; shall mean Valid Claims of claims 160-163 and 167 of U.S. Patent No. 5, 475,610 and Valid Claims of claims 1-6 of U.S. Patent No. 6,703,236 and foreign equivalent claims thereof in other countries. &nbsp;</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:36pt; font-size:12pt" align=justify><B>1.13</B></P>
<P style="line-height:20pt; margin-top:0pt; margin-bottom:12pt; text-indent:72pt; font-size:12pt" align=justify><B>&#147;Pressing Heated Cover&#148;</B> shall mean a product that but for the licenses granted hereunder would infringe the Pressing Heated Cover Patent Rights.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:36pt; font-size:12pt" align=justify><B>1.14</B></P>
<P style="line-height:20pt; margin-top:0pt; margin-bottom:12pt; text-indent:72pt; font-size:12pt" align=justify><B>&#147;Progeny Patent Rights&#148;</B> shall mean solely such Valid Claims of U.S. Patent Application Ser. No. 10/691,186 (Publication No. US 2004/0248146 A2) (and continuations, divisionals, and continuations-in-part thereof)that &nbsp;are entitled to the benefit of priority of U.S. application Ser. No. 07/620,606, U.S. application Ser. No. 07/670,545, or U.S. application Ser No. 07/871,264. &nbsp;The term &#147;Progeny Patent Rights&#148; excludes any Valid Claims of continuations-in-part of any of the foregoing patents and patent applications that are not entitled to the benefity of U.S. application Ser. No. 07/620,606, U.S. application Ser. No. 07/670,545, or U.S. application Ser No. 07/871,264.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:36pt; font-size:12pt" align=justify><B>1.15</B></P>
<P style="line-height:20pt; margin-top:0pt; margin-bottom:12pt; text-indent:72pt; font-size:12pt" align=justify><B>&#147;Real-Time Settlement Agreements</B>&#148; shall mean the Real-Time Settlement Agreement, the Real-Time Consent Judgment and the Real-Time Instrument Patent License Agreement of even date herewith entered into as part of the settlement of the litigation entitled Applera Corp. v. Bio-Rad Laboratories et al., Case No. 3:04-CV-01881 (RNC), USDC D. Conn.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:36pt; font-size:12pt" align=justify><B>1.16</B></P>
<P style="line-height:20pt; margin-top:0pt; margin-bottom:12pt; text-indent:72pt; font-size:12pt" align=justify><B>&quot;Temperature Cycling Instrument&quot;</B>, as used in this Agreement, shall be limited to an instrument that includes a Thermal Cycler.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:36pt; font-size:12pt" align=justify><B>1.17</B></P>
<P style="line-height:20pt; margin-top:0pt; margin-bottom:12pt; text-indent:72pt; font-size:12pt" align=justify><B>&quot;Territory&quot;</B> shall mean worldwide.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:36pt; font-size:12pt" align=justify><B>1.18</B></P>
<P style="line-height:20pt; margin-top:0pt; margin-bottom:12pt; text-indent:72pt; font-size:12pt" align=justify><B>&quot;Thermal Cycler&quot;</B>, as used in this Agreement, shall mean an instrument, whether in single or multiple modules, that is capable in itself of automatically thermally cycling samples in the PCR process and is covered by, or the use of which is covered by, a Valid Claim of the Algorithm Patent Rights, Amplification Patent Rights, Amplification System Patent Rights, Automated Method </P>
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<BR></P>
<P style="margin:0pt; text-indent:214.75pt">9</P>
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<P style="line-height:20pt; margin-top:0pt; margin-bottom:12pt; font-size:12pt" align=justify>Patent Rights, Pressing Heated Cover Patent Rights or Thermal Cycling Instrument Patent Rights.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:36pt; font-size:12pt" align=justify>1.19</P>
<P style="line-height:20pt; margin-top:0pt; margin-bottom:12pt; text-indent:72pt; font-size:12pt" align=justify>&quot;<B>Thermal Cycling Instrument Patent Rights</B>&quot; shall mean Valid Claims of (i) U.S. Patent Nos. 5,038,852 and 5,333,675; and foreign equivalent Valid Claims of any such apparatus claims in other countries; (ii) U.S. Patent No. 6,555,792, parent Swiss application no. 1782/99, and patents and patent applications worldwide claiming priority thereto; and (iii) U.S. Patent No. 6,153,426, parent German application no. 19859586, and patents and patent applications worldwide claiming priority thereto. &nbsp;</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:36pt; font-size:12pt" align=justify><B>1.20</B></P>
<P style="line-height:20pt; margin-top:0pt; margin-bottom:12pt; text-indent:72pt; font-size:12pt" align=justify><B>&quot;Third Party&quot;</B> shall mean a party other than the Parties.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:36pt; font-size:12pt" align=justify><B>1.21</B></P>
<P style="line-height:20pt; margin-top:0pt; margin-bottom:12pt; text-indent:72pt; font-size:12pt" align=justify><B>&quot;Valid Claim&quot; </B>shall mean a claim of a patent &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[**] &nbsp;&nbsp;&nbsp;&nbsp;which has not been held invalid or permanently unenforceable by a court from which no appeal has been taken within the time allowed for appeal or from which no appeal can be taken, or has not otherwise finally been held unpatentable by an appropriate patent office or administrative agency.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:36pt; font-size:12pt" align=justify><B><U>2.</U></B></P>
<P style="line-height:20pt; margin-top:0pt; margin-bottom:12pt; text-indent:54pt; font-size:12pt" align=justify><B><U>Grant</U></B></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:36pt; font-size:12pt" align=justify><U>2.1</U></P>
<P style="line-height:20pt; margin-top:0pt; margin-bottom:12pt; text-indent:54pt; font-size:12pt" align=justify><U>Thermal Cycling Instrument; Algorithm; Pressing Heated Cover Patent Rights; Progeny Patent Rights.</U> &nbsp;Upon the terms and subject to the exceptions and conditions of this Agreement, ABI grants to Thermal Cycler Supplier under the Thermal Cycling Instrument Patent Rights, the Algorithm Patent Rights, Progeny Patent Rights, and the Pressing Heated Cover Patent Rights a personal, non-transferable, royalty-bearing, non-exclusive license in the Fields and in the Territory to make </P>
<P style="line-height:20pt; margin-top:0pt; margin-bottom:12pt; font-size:12pt" align=center>[**]</P>
<P style="line-height:20pt; margin-top:0pt; margin-bottom:12pt; text-indent:108pt; font-size:12pt" align=justify>&nbsp;to use and to sell the following to end users solely under Thermal Cycler Supplier&#146;s name and trademarks but not otherwise to manufacture for, or sell or distribute to, thermal cycler suppliers (except for such thermal cycler suppliers set forth in Section 2.8 herein):</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:108pt; text-indent:-36pt; font-size:12pt" align=justify>(a)</P>
<P style="line-height:20pt; margin-top:0pt; margin-bottom:12pt; padding-left:108pt; font-size:12pt" align=justify>Thermal Cyclers and Temperature Cycling Instruments, either as complete instruments or as <U>base units</U>, (as used herein, the term &#147;base unit&#148; means a </P>
<P style="margin-top:0pt; margin-bottom:12pt" align=justify><BR>
<BR></P>
<P style="margin:0pt; text-indent:214.75pt">10</P>
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<P style="line-height:20pt; margin-top:0pt; margin-bottom:12pt; padding-left:108pt; font-size:12pt" align=justify>product that consists of the same or similar elements and functionality as the product referred to in the MJ Catalog as the part number PTC-0200, &#147;DNA Engine thermal cycler chassis, does not include Alpha unit&#148;, that in combination with sample blocks or sample-block/heat-pump assemblies constitute Thermal Cyclers); and </P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:108pt; text-indent:-36pt; font-size:12pt" align=justify>(b)</P>
<P style="line-height:20pt; margin-top:0pt; margin-bottom:12pt; padding-left:108pt; font-size:12pt" align=justify>other modules or components for integration solely with such Thermal Cyclers, Temperature Cycling Instruments and base units. &nbsp;</P>
<P style="line-height:20pt; margin-top:0pt; margin-bottom:12pt; text-indent:36pt; font-size:12pt" align=justify>Notwithstanding the foregoing restrictions, subject to its compliance with Section 3.2 herein, Thermal Cycler Supplier may continue to sell the identical or similar product referred to in the MJ Catalog as catalog number PTC-0221, &#147;Dyad Disciple&#148; (despite its lack of an integrated controller, requiring the use of either a Dyad (as such product, with part number PTC-0220, is defined in the MJ Catalog) and associated &#147;Alpha units&#148; (as such products are referred to in the MJ Catalog) or an external stand-alone computer equipped with Disciple Desktop software (as such software is referred to in the MJ Catalog)). &nbsp;The grant of this Section 2.1 conveys no right or immunity, express or implied, under the Amplification Patent Rights, the Automated Method Patent Rights or the Amplification System Patent Rights. </P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:36pt; font-size:12pt" align=justify><U>2.2</U></P>
<P style="line-height:20pt; margin-top:0pt; margin-bottom:12pt; text-indent:54pt; font-size:12pt" align=justify><U>Amplification Patent Rights.</U> &nbsp;Upon the terms and subject to the exceptions and conditions of this Agreement, ABI grants to Thermal Cycler Supplier the following personal, non-transferable, royalty-bearing, non-exclusive rights in the Territory under the Amplification Patent Rights: </P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:108pt; text-indent:-36pt; font-size:12pt" align=justify>(a)</P>
<P style="line-height:20pt; margin-top:0pt; margin-bottom:12pt; padding-left:108pt; font-size:12pt" align=justify>Thermal Cycler Supplier is hereby authorized to sell and distribute to end users solely under Thermal Cycler Supplier's name and trademarks, but not to sell or distribute to thermal cycler suppliers: (i) Thermal Cyclers and Temperature Cycling Instruments manufactured by Thermal Cycler Supplier (or by OEM Systems KK, as long as it is an Affiliate of Thermal Cycler Supplier and such other entities as permitted under Section 2.9 herein) with a label conveying to end users (including Thermal Cycler Supplier itself) in the </P>
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<P style="margin:0pt; text-indent:214.75pt">11</P>
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<P style="line-height:20pt; margin-top:0pt; margin-bottom:12pt; padding-left:108pt; font-size:12pt" align=justify>Fields the up-front rights of PCR process licenses under the Amplification Patent Rights as specified in the label set forth in Section 5.1 below, that is, with an Authorized Thermal Cycler label; and (ii) base units and Dyad Disciples manufactured by Thermal Cycler Supplier (or OEM Systems KK, as long as it is an Affiliate of Thermal Cycler Supplier and such other entities as permitted under Section 2.9 herein) with a label conveying to end users (including Thermal Cycler Supplier itself) in the Fields the up-front rights of PCR process licenses under the Amplification Patent Rights only when combined with the modules specified in Section 2.1, as specified in the labels set forth in Sections 5.2 and 5.3 below, that is, with an Authorized Thermal Cycler label.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:108pt; text-indent:-36pt; font-size:12pt" align=justify>(b)</P>
<P style="line-height:20pt; margin-top:0pt; margin-bottom:12pt; padding-left:108pt; font-size:12pt" align=justify>Thermal Cycler Supplier may advertise and promote Thermal Cyclers and Temperature Cycling Instruments so labeled as &quot;Authorized Thermal Cyclers for PCR&quot; and Thermal Cycler Supplier may advertise its base units and Dyad Disciples as constituting &#147;Authorized Thermal Cyclers for PCR&#148; when </P>
<P style="line-height:20pt; margin-top:0pt; margin-bottom:12pt; padding-left:108pt; font-size:12pt" align=justify>combined with Thermal Cycler Supplier&#146;s modules needed to constitute Thermal Cyclers or Temperature Cycling Instruments.</P>
<P style="line-height:20pt; margin-top:0pt; margin-bottom:12pt; font-size:12pt" align=justify>The grant of this Section 2.2 conveys no right or immunity, express or implied, under the Thermal Cycling Instrument Patent Rights, the Amplification System Patent Rights, the Automated Method Patent Rights, the Algorithm Patent Rights, the Progeny Patent Rights or the Pressing Heated Cover Patent Rights. &nbsp;</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:36pt; font-size:12pt" align=justify><U>2.3</U></P>
<P style="line-height:20pt; margin-top:0pt; margin-bottom:12pt; text-indent:54pt; font-size:12pt" align=justify><U>Amplification System Patent Rights and Automated Method Patent Rights.</U> &nbsp;Upon &nbsp;the terms and subject to the exceptions and conditions of this Agreement, ABI grants to Thermal Cycler Supplier a personal, non-transferable, royalty-bearing, non-exclusive right under the Amplification System Patent Rights and the Automated Method Patent Rights to convey to end-user customers (including Thermal Cycler Supplier itself) of Thermal Cycler Supplier's Thermal Cyclers and Temperature Cycling Instruments sold or distributed solely under Thermal Cycler Supplier's name </P>
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<P style="margin:0pt; text-indent:214.75pt">12</P>
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<P style="line-height:20pt; margin-top:0pt; margin-bottom:12pt; font-size:12pt" align=justify>and trademarks a non-exclusive license to use the same in the Fields in the Territory. &nbsp;The grant of this Section 2.3 includes no right or immunity, express or implied, under the Amplification Patent Rights, Thermal Cycling Instrument Patent Rights, the Algorithm Patent Rights or the Pressing Heated Cover Patent Rights.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:36pt; font-size:12pt" align=justify><U>2.4</U></P>
<P style="line-height:20pt; margin-top:0pt; margin-bottom:12pt; text-indent:54pt; font-size:12pt" align=justify><U>No Implied Rights.</U> &nbsp;No right, immunity, authorization or license is granted, expressly or by implication, for any other purpose, or in any other field, including: to make, have made, use or sell any polymerase (such as Taq), amplification reagent or kit; or to perform PCR or nucleic acid amplification that is not fully licensed under the Amplification Patent Rights. &nbsp;&nbsp;No right, immunity, authorization or license is granted, expressly or by implication, under any patent or patent application that is not expressly included in the Amplification Patent Rights, the Amplification System Patent Rights, the Algorithm Patent Rights, the Pressing Heated Cover Patent Rights, the Automated Method Patent Rights, the Progeny Patent Rights, or the Thermal Cycling Instrument Patent Rights. &nbsp;Specifically, but without limitation, no right, immunity, authorization or license is granted, exp
ressly or by implication, under patents and applications of Applera Corporation or Roche that cover apparatus, methods, or reagents for real-time detection (for example, U.S. Patent No. 5,928,907 or Applera's U.S. Patent No. 6,814,934 B1, Japanese Patent No. JP 3136129, European Patent No. EP 0 872 562 B1; and claims in Applera's patents and applications that claim priority of United States patent application Serial No. &nbsp;08/968,208 or EP 0 512 334 B1) or for homogeneous assay (for example, U.S. Patents Nos. 5,210,015, 5,487,972, 5,538,848, all related to the 5&#146; nuclease assay).</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:36pt; font-size:12pt" align=justify><U>2.5</U></P>
<P style="line-height:20pt; margin-top:0pt; margin-bottom:12pt; text-indent:54pt; font-size:12pt" align=justify><U>Exceeding Scope of License.</U> &nbsp;Rights granted to Thermal Cycler Supplier by this Agreement are personal to Thermal Cycler Supplier alone. &nbsp;Thermal Cycler Supplier shall have no right to sublicense, assign or otherwise transfer or share its rights hereunder. &nbsp;Without limiting other acts or omissions constituting material breach hereof or ABI&#146;s remedies or causes of action for the same, any breach by the Thermal Cycler Supplier of Article 2 (including, without limitation, by Thermal Cycler Supplier exceeding the scope of the license herein) of this Agreement shall be deemed a material breach of this Agreement.</P>
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<P style="margin:0pt; text-indent:214.75pt">13</P>
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<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:36pt; font-size:12pt" align=justify><U>2.6</U></P>
<P style="line-height:20pt; margin-top:0pt; margin-bottom:12pt; text-indent:54pt; font-size:12pt" align=justify><U>Sales by Affiliates or Distributors</U>. &nbsp;Notwithstanding the prohibition of Section 2.5, Thermal Cycler Supplier's rights to sell to end users under the grants of Sections 2.1 through 2.3 include the right to sell through Affiliates (so long as Thermal Cycler Supplier reports and pays under this Agreement on their behalf) and through distributors of Thermal Cycler Supplier and such Affiliates, as well as directly.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:36pt; font-size:12pt" align=justify><U>2.7</U></P>
<P style="line-height:20pt; margin-top:0pt; margin-bottom:12pt; text-indent:54pt; font-size:12pt" align=justify><U>Thermal Cycler Supplier Obligations. &nbsp;</U>The Parties understand and agree that Thermal Cycler Supplier shall have no obligation to monitor or police its customers' use of Authorized Reagents in the performance of PCR. &nbsp;Thermal Cycler Supplier's obligations under this Agreement in regard to Authorized Reagents shall be limited to providing the notice as specified in Sections 5.1, 5.2 and 5.3. &nbsp;However, Thermal Cycler Supplier agrees not to knowingly promote, directly or through its distributors or Affiliates, the unlicensed performance of PCR in the Fields through the use of reagents which are not Authorized Reagents or Thermal Cyclers for which the up-front license fee has not been paid, <I>i.e.</I> a thermal cycler which is not an Authorized Thermal Cycler. &nbsp;</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:36pt; font-size:12pt" align=justify><U>2.8</U></P>
<P style="line-height:20pt; margin-top:0pt; margin-bottom:12pt; text-indent:54pt; font-size:12pt" align=justify><U>Limited Right to Sell to Other Suppliers</U><B>. &nbsp;&nbsp;</B>Notwithstanding the restrictions in Section 2.1 and Section 2.2 on the right to sell Thermal Cyclers and Temperature Cycling Instruments solely under Thermal Cycler Supplier's name and trademarks, Thermal Cycler Supplier may make, but not have made, and sell Thermal Cyclers and Temperature Cycling Instruments (but not Licensed Real-Time Thermal Cyclers, as such term is defined in the Real-Time Instrument Patent License Agreement) that are complete instruments to a Third Party that is itself a licensee in good standing under the Thermal Cycling Instrument Patent Rights, the Algorithm Patent Rights, the Pressing Heated Cover Patent Rights, the Progeny Patent Rights, and the Amplification Patent Rights under that Third Party licensee's name and trademarks provided that Thermal Cycler Supplier gives ABI ninety (90) days prior written n
otification of such arrangement and provided that the Third Party licensee to whom product is sold under that Third Party licensee's name and trademarks agrees in a writing delivered thirty (30) days prior to commencement of such supply arrangement to pay royalties on the Net Sales Price of the Thermal Cyclers and Temperature Cycling Instruments as if it were the manufacturer of such Thermal Cyclers and Temperature Cycling Instruments. &nbsp;Thermal Cycler Supplier&#146;s right to supply Thermal Cyclers and Temperature Cycling Instruments to such </P>
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<P style="margin:0pt; text-indent:214.75pt">14</P>
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<P style="line-height:20pt; margin-top:0pt; margin-bottom:12pt; font-size:12pt" align=justify>Third Party shall terminate upon Thermal Cycler Supplier&#146;s receipt of written notification by ABI of termination of such Third Party licensee&#146;s license agreement. &nbsp;Without limiting Section 2.4 (No Implied Rights) herein, Thermal Cycler Supplier shall have no right to make Licensed Real-Time Thermal Cyclers or have made Licensed Real-Time Thermal Cyclers except as provided in the Real-Time Instrument Patent License Agreement.</P>
<P style="line-height:20pt; margin-top:0pt; margin-bottom:12pt; text-indent:36pt; font-size:12pt" align=justify>2.9</P>
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<P style="line-height:20pt; margin-top:0pt; margin-bottom:12pt; font-size:12pt" align=center>[**]</P>
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<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:36pt; font-size:12pt" align=justify>2.10</P>
<P style="line-height:20pt; margin-top:0pt; margin-bottom:12pt; text-indent:72pt; font-size:12pt" align=justify>The Parties agree that as of March 28, 2006, certain provisions of this Agreement relating to Amplification Patent Rights will change as specified in Exhibit B attached hereto.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:36pt; font-size:12pt" align=justify>2.11</P>
<P style="line-height:20pt; margin-top:0pt; margin-bottom:12pt; text-indent:72pt; font-size:12pt" align=justify>ABI agrees to offer Thermal Cycler Supplier a license substantially consistent with the template &#147;Restated and Amended Patent License Agreement&#148;, attached hereto as Exhibit C (the &#147;Template Agreement&#148;), which offer shall be in effect if and only if Thermal Cycler Supplier responds to such offer within sixty (60) days of the Effective Date and further provided that such license is finalized and executed within one hundred and twenty (120) days following the Effective Date. &nbsp;Notwithstanding the foregoing, Thermal Cycler Supplier acknowledges and agrees that any </P>
<P style="margin-top:0pt; margin-bottom:12pt" align=justify><BR>
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<P style="margin:0pt; text-indent:214.75pt">15</P>
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<P style="line-height:20pt; margin-top:0pt; margin-bottom:12pt; font-size:12pt" align=justify>such license will be subject to the terms and conditions of the Settlement Agreement and the Real-Time Settlement Agreements.</P>
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<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:36pt; font-size:12pt" align=justify><B><U>3.</U></B></P>
<P style="line-height:20pt; margin-top:0pt; margin-bottom:12pt; text-indent:54pt; font-size:12pt" align=justify><B><U>Fees, Royalties, Records and Reports</U></B></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:36pt; font-size:12pt" align=justify>3.1</P>
<P style="line-height:20pt; margin-top:0pt; margin-bottom:12pt; text-indent:54pt; font-size:12pt" align=justify>In consideration of the licenses in the United States granted pursuant to Article 2 herein to MJ Research and to Bio-Rad under the Algorithm Patent Rights, the Amplification System Patents, the Automated Method Patent Rights, Progeny Patent Rights, and the Pressing Heated Cover Patent Rights, Licensee shall pay to ABI</P>
<P style="margin-top:0pt; margin-bottom:12pt" align=justify><BR></P>
<P style="line-height:20pt; margin-top:0pt; margin-bottom:12pt; font-size:12pt" align=center>[**]</P>
<P style="margin-top:0pt; margin-bottom:12pt" align=justify><BR></P>
<P style="margin-top:0pt; margin-bottom:12pt" align=justify><BR></P>
<P style="line-height:20pt; margin-top:0pt; margin-bottom:12pt; font-size:12pt" align=justify>For the avoidance of doubt, the Incremental Fee is in addition to (and is not in lieu of, nor creditable against,) any other payments or royalties due pursuant to Article 3 of this Agreement. &nbsp;Subject to Licensee&#146;s compliance with all of the terms and conditions of this Agreement, ABI agrees to forebear enforcement of the permanent injunction entered in the District Court enjoining enforcement against MJ Research and Bio-Rad of the Instrument-Patents-in-Suit and the injunctive relief provision set forth in paragraph 15 of the Consent Judgment.</P>
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<P style="margin:0pt; text-indent:214.75pt">16</P>
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<P style="line-height:20pt; margin:0pt; padding-left:108pt; text-indent:-36pt; font-size:12pt" align=center>[**]</P>
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<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:36pt; font-size:12pt" align=justify><U>3.2</U></P>
<P style="line-height:20pt; margin-top:0pt; margin-bottom:12pt; text-indent:54pt; font-size:12pt" align=justify><U>Fees; Royalties.</U> &nbsp;For the licenses and rights granted under Article 2, Thermal Cycler Supplier shall pay to ABI: &nbsp;</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:108pt; text-indent:-36pt; font-size:12pt">(a)</P>
<P style="line-height:20pt; margin-top:0pt; margin-bottom:12pt; padding-left:108pt; font-size:12pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[**]</P>
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<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:108pt; text-indent:-36pt; font-size:12pt" align=justify>(b)</P>
<P style="line-height:20pt; margin-top:0pt; margin-bottom:12pt; padding-left:108pt; font-size:12pt" align=justify>[**] &nbsp;&nbsp;&nbsp;&nbsp;for each Thermal Cycler or Temperature Cycling Instrument, each base unit (for example, the products designated in the MJ Catalog model part </P>
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<P style="margin:0pt; text-indent:214.75pt">17</P>
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<P style="line-height:20pt; margin-top:0pt; margin-bottom:12pt; padding-left:108pt; font-size:12pt" align=justify>numbers PTC-0200, PTC-0220 or PTC-0240) and each Dyad Disciple &quot;chassis&quot; (for example, the product designated in the MJ Catalog as model part number PTC-0221) delivered, invoiced or otherwise transferred by Thermal Cycler Supplier or an Affiliate after the Effective Date; &nbsp;</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:108pt; text-indent:-36pt; font-size:12pt" align=justify>(c)</P>
<P style="line-height:20pt; margin-top:0pt; margin-bottom:12pt; padding-left:108pt; font-size:12pt" align=justify>[**] &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;of the Net Sales Price for all of the following items that are delivered, invoiced or otherwise transferred by Thermal Cycler Supplier or an Affiliate after the Effective Date: </P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:144pt; text-indent:-36pt; font-size:12pt" align=justify>(i)</P>
<P style="line-height:20pt; margin:0pt; padding-left:144pt; font-size:12pt" align=justify>Thermal Cyclers; </P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:144pt; text-indent:-36pt; font-size:12pt" align=justify>(ii)</P>
<P style="line-height:20pt; margin:0pt; padding-left:144pt; font-size:12pt" align=justify>Temperature Cycling Instruments; </P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:144pt; text-indent:-36pt; font-size:12pt" align=justify>(iii)</P>
<P style="line-height:20pt; margin-top:0pt; margin-bottom:12pt; padding-left:144pt; font-size:12pt" align=justify>modules and components of, or intended for use with, </P>
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<P style="line-height:20pt; margin-top:0pt; margin-bottom:12pt; padding-left:144pt; font-size:12pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[**]</P>
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<P style="margin:0pt; text-indent:214.75pt">18</P>
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<P style="line-height:20pt; margin-top:0pt; margin-bottom:12pt; padding-left:144pt; font-size:12pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[**]</P>
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<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:108pt; text-indent:-36pt; font-size:12pt" align=justify>(d)</P>
<P style="line-height:20pt; margin-top:0pt; margin-bottom:12pt; padding-left:108pt; font-size:12pt" align=justify>an additional [**] for each Pressing Heated Cover delivered, invoiced or otherwise transferred by Thermal Cycler Supplier or an Affiliate after the Effective Date, irrespective of whether said Pressing Heated Cover is transferred separately or included in a larger module or in a Thermal Cycler or Temperature Cycling Instrument.</P>
<P style="line-height:20pt; margin-top:0pt; margin-bottom:12pt; text-indent:36pt; font-size:12pt" align=justify>ABI agrees that there shall be only one payment under each of subsections 3.2(b), 3.2(c) and 3.2(d), for each Thermal Cycler or Temperature Cycling Instrument placed as a no-charge &quot;loaner&quot; or demonstration instrument. &nbsp;Thermal Cycler Supplier shall pay for such an instrument (wherein the quantity of such loaner or demonstration instruments placed in a given year does not exceed</P>
<P style="margin-top:0pt; margin-bottom:12pt" align=justify><BR>
<BR></P>
<P style="margin:0pt; text-indent:214.75pt">19</P>
<P style="margin:0pt"><BR></P>
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<P style="margin:0pt"><BR></P>
<P style="margin-top:0pt; margin-bottom:12pt" align=justify><BR></P>
<P style="line-height:20pt; margin-top:0pt; margin-bottom:12pt; font-size:12pt" align=center>[**]</P>
<P style="line-height:20pt; margin-top:0pt; margin-bottom:12pt; text-indent:36pt; font-size:12pt" align=justify>&nbsp;&nbsp;For any quantity of loaners or demonstration instruments above such &nbsp;&nbsp;&nbsp;&nbsp;[**] &nbsp;&nbsp;&nbsp;, the</P>
<P style="line-height:20pt; margin-top:0pt; margin-bottom:12pt; font-size:12pt" align=justify>Thermal Cycler Supplier shall pay, at the time of placement of such loaner or demonstration instrument, such payments under each of subsections 3.2(b), 3.2(c) and 3.2(d) (including royalties) based upon the Average Net Sales Price for a new such instrument at the time it is placed as a loaner. &nbsp;However, if any module or component is subsequently added to such loaner or demonstration instrument or substituted any modules or components in such loaner or demonstration instrument, then payment under subsections 3.2(c) and 3.2(d) shall be made for such module or component at the time such module or component is added or substituted.</P>
<P style="line-height:20pt; margin-top:0pt; margin-bottom:12pt; font-size:12pt" align=justify>Payments specified in this Section 3.2 (b) &#150; (d) shall be paid as specified in Section 3.7. &nbsp;Each Thermal Cycler and Temperature Cycling Instrument for which those payments are paid shall be an Authorized Thermal Cycler and shall be so designated pursuant to Article 5 hereof.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:36pt; font-size:12pt" align=justify><U>3.3</U></P>
<P style="line-height:20pt; margin-top:0pt; margin-bottom:12pt; text-indent:54pt; font-size:12pt" align=justify><U>Settlement Fees and Report</U>. &nbsp;In partial consideration of ABI&#146;s agreement to settle the Litigation as provided in the Settlement Agreement with respect to ABI&#146;s instrument patent rights asserted in such Litigation and ABI&#146;s covenant not to assert set forth in Section 4.1 of this Agreement, Thermal Cycler Supplier shall pay ABI payments as set forth in Section 3.2(b)-(d) on Net Sales of Accused Products (as such term is defined in the Consent Judgment). &nbsp;Royalties paid for a given Accused Product pursuant to Section 3.2 shall be credited against payment obligations for the same such Accused Product under this Section 3.3. &nbsp;Licensee shall provide a royalty report conforming with the requirements of Section 3.7 herein.</P>
<P style="margin-top:0pt; margin-bottom:12pt" align=justify><BR></P>
<P style="margin-top:0pt; margin-bottom:12pt" align=justify><BR></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:36pt; font-size:12pt" align=justify><U>3.4</U></P>
<P style="line-height:20pt; margin-top:0pt; margin-bottom:12pt; text-indent:54pt; font-size:12pt" align=justify><U>Currency.</U> &nbsp;All amounts payable hereunder shall be payable in United States Dollars. &nbsp;For the purpose of calculating royalties, the Net Sales Price invoiced or received by Thermal Cycler </P>
<P style="margin-top:0pt; margin-bottom:12pt" align=justify><BR>
<BR></P>
<P style="margin:0pt; text-indent:214.75pt">20</P>
<P style="margin:0pt"><BR></P>
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<P style="margin:0pt"><BR></P>
<P style="line-height:normal; margin-top:0pt; margin-bottom:12pt; font-size:12pt" align=justify>Supplier in currencies other than U.S. Dollars shall be converted to U.S. dollars based on the New York rate of exchange as quoted in the Wall Street Journal for the last business day of the month (as per Section 3.7 herein) in which the sale or transfer occurred. &nbsp;If not so published, the Parties may agree in writing on a substitute publication. &nbsp;In the event there is no comparable publication, the applicable rate shall be the rate published by the United States Federal Reserve. </P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:36pt; font-size:12pt" align=justify><U>3.5</U></P>
<P style="line-height:20pt; margin-top:0pt; margin-bottom:12pt; text-indent:54pt; font-size:12pt" align=justify><U>Maintenance of Records; Audit.</U> &nbsp;Thermal Cycler Supplier shall keep and maintain (and shall require its Affiliates to keep and maintain) complete and accurate records and in sufficient detail to enable an independent certified public accountant or auditor retained by ABI to validate Thermal Cycler Supplier&#146;s compliance with this Agreement, and for the time period preceding the Effective Date to validate Thermal Cycler Supplier's compliance with its earlier Thermal Cycler Supplier Agreement having an effective date of April 1, 1998, and verify amounts payable by Thermal Cycler Supplier. &nbsp;To the extent such records are financial in nature or relate to royalty obligations, such records shall be compiled and maintained in accordance with Generally Accepted Accounting Principles (&#147;GAAP&#148;). &nbsp;Thermal Cycler Supplier shall keep and maintain such records and supporting dat
a during the term of this Agreement and for a period of &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[**] &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;. &nbsp;Such records and the supporting data shall be available for inspection and copying, for a period of &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[**] &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the end of the calendar year to which they pertain, during regular business hours by an independent certified public accountant or auditor retained by ABI. &nbsp;If in dispute, such records shall be kept at least until the dispute is settled. &nbsp;Inspection and auditing shall be at ABI's expense, unless the audit demonstrates that the amount payable that is stated in a report is understated by &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[**] &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;, in which case Thermal Cycler Supplier shall reimburse ABI for the expense of such audit. The Parties agree that any certified public accountant or auditor inspecting Thermal Cycler Supplier's records pursuant to this Section 3.5 shall retain as confidential all information about Thermal Cycler Supplier's finances and customers gained as a result of that inspection, with the exception that the accountant shall be free to communicate with ABI (i) whether or not Thermal Cycler Supplier complied with the terms of its Thermal Cycler Supplier Agreement having an effective date of April 1, 1998, or is in compliance with the terms of this Agreement, (ii) the results of the audit, including financial information but not customer information, and (iii) if, in the auditor's professional opinion, Thermal Cycler Supplier is not complying or has not compli
ed </P>
<P style="margin-top:0pt; margin-bottom:12pt" align=justify><BR>
<BR></P>
<P style="margin:0pt; text-indent:214.75pt">21</P>
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<P style="margin:0pt; page-break-before:always" align=right><BR></P>
<P style="margin:0pt"><BR></P>
<P style="line-height:20pt; margin-top:0pt; margin-bottom:12pt; font-size:12pt" align=justify>with the terms of its Thermal Cycler Supplier Agreement having an effective date of April 1, 1998 or this Agreement, the underlying facts and information relevant to said non-compliance. &nbsp;Without limiting the foregoing audit rights Applera, through its independent auditors, shall have the right to audit software (including, without limitation, source code, and the same shall be made available by Thermal Cycler Supplier for such audit) distributed or provided directly or otherwise by Thermal Cycler Supplier to determine the accuracy and completeness of BioRad&#146;s reporting and paying of royalties under this Agreement in view of the licenses granted pursuant to Article 2 of this Agreement under the Algorithm Patent Rights. &nbsp;</P>
<P style="line-height:20pt; margin-top:0pt; margin-bottom:12pt; padding-left:216pt; font-size:12pt" align=justify>[**]</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:36pt; font-size:12pt" align=justify><U>3.6</U></P>
<P style="line-height:20pt; margin-top:0pt; margin-bottom:12pt; text-indent:54pt; font-size:12pt" align=justify><U>Final Report and Payment Under Prior Agreement</U>. &nbsp;Thermal Cycler Supplier shall submit a final royalty report which shall be in the form and included the details required under Section 3.7 and make payment of all of its outstanding royalty and payment obligations under its Thermal Cycler Supplier Agreement having an effective date of April 1, 1998 within &nbsp;&nbsp;&nbsp;[**] &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;after the Effective Date of this Agreement. &nbsp;Such report and payment shall include only products sold under Bio-Rad's name and trademarks. &nbsp;Pre-Effective Date activities of MJ Research shall be subject to Article 4 of this Agreement.</P>
<P style="line-height:20pt; margin-top:0pt; margin-bottom:12pt; text-indent:36pt; font-size:12pt" align=justify>Licensee will cooperate (i.e., by having an explanatory meeting and providing responses to ABI inquiries) with ABI to determine the correctness and completeness of the final report and payment as well as the first report and payment and if reasonably necessary subsequent reports.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:36pt; font-size:12pt" align=justify><U>3.7</U></P>
<P style="line-height:20pt; margin-top:0pt; margin-bottom:12pt; text-indent:54pt; font-size:12pt" align=justify><U>Mode of Royalty Payments; Royalty Reports</U>. &nbsp;Except for the Incremental Fee (which shall be due in accordance with Section 3.1), Thermal Cycler Supplier shall within &nbsp;&nbsp;&nbsp;[**] &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;after the first of January, April, July and October (i) pay ABI royalties due under this Agreement for each preceding three (3) month period; and (ii) provide ABI with a true and accurate written royalty report detailing the amount of royalties due for each such three (3) month period. &nbsp;With respect to payments due pursuant to Section 4.1(b), such payment shall be due and payable within &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[**] &nbsp;&nbsp;&nbsp;&nbsp;after the Effective Date; and with respect to payments due under Section 4.1(c) such payment shall </P>
<P style="margin-top:0pt; margin-bottom:12pt" align=justify><BR>
<BR></P>
<P style="margin:0pt; text-indent:214.75pt">22</P>
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<P style="margin:0pt"><BR></P>
<P style="line-height:20pt; margin-top:0pt; margin-bottom:12pt; font-size:12pt" align=justify>be due within &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[**] &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;following the Effective, in both cases accompanied by true and accurate royalty report detailing for each three (3) month period spanning encompassed by Section 4.1(b) and (c) respectively the amount of royalties due. &nbsp;All royalty reports required by this Section shall be</P>
<P style="margin-top:0pt; margin-bottom:12pt" align=justify><BR></P>
<P style="line-height:20pt; margin-top:0pt; margin-bottom:12pt; font-size:12pt" align=center>[**]</P>
<P style="margin-top:0pt; margin-bottom:12pt" align=justify><BR></P>
<P style="margin-top:0pt; margin-bottom:12pt" align=justify><BR></P>
<P style="margin-top:0pt; margin-bottom:12pt" align=justify><BR></P>
<P style="line-height:20pt; margin-top:0pt; margin-bottom:12pt; font-size:12pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The correctness and completeness of each royalty report shall be attested to in writing by the responsible financial officer of Thermal Cycler Supplier or by Thermal Cycler Supplier's external auditor. &nbsp;Failure to provide a timely and complete royalty report shall be deemed a material breach of this Agreement.</P>
<P style="line-height:20pt; margin-top:0pt; margin-bottom:5pt; text-indent:36pt; font-size:12pt" align=justify>Each royalty report and payment shall be sent by the due date to the following address:</P>
<P style="line-height:14pt; margin:0pt; text-indent:36pt; font-size:12pt" align=justify>Applied Biosystems</P>
<P style="line-height:14pt; margin:0pt; text-indent:36pt; font-size:12pt" align=justify>850 Lincoln Centre Drive</P>
<P style="line-height:14pt; margin:0pt; text-indent:36pt; font-size:12pt" align=justify>Foster City, California, 94404 U.S.A.</P>
<P style="line-height:14pt; margin:0pt; text-indent:36pt; font-size:12pt" align=justify>Attention: Director of Licensing </P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin:0pt; text-indent:36pt; font-size:12pt" align=justify>with a copy sent by email in excel format (or other reasonable format requested in writing by ABI) to royalties@appliedbiosystems.com</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:36pt; font-size:12pt" align=justify>or to any mail or email address that ABI may advise in writing.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:36pt; font-size:12pt" align=justify><U>3.8</U></P>
<P style="line-height:20pt; margin:0pt; text-indent:54pt; font-size:12pt" align=justify><U>Interest. </U>&nbsp;If Thermal Cycler Supplier shall fail to pay any amount owing under its Thermal Cycler Supplier Agreement having an effective date of April 1, 1998 or this Agreement by the due date, the amount owed shall bear interest at &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[**]</P>
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<BR></P>
<P style="margin:0pt; text-indent:214.75pt">23</P>
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<P style="line-height:20pt; margin:0pt; font-size:12pt" align=justify>from the due date until paid, provided, however, that if this interest rate is held to be unenforceable for any reason, the interest rate shall be the maximum rate allowed by law at the time the payment is due.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:36pt; font-size:12pt" align=justify><U>3.9</U></P>
<P style="line-height:20pt; margin-top:0pt; margin-bottom:12pt; text-indent:54pt; font-size:12pt" align=justify><U>Failure to Pay.</U> &nbsp;Failure of Thermal Cycler Supplier to pay any amount specified under this Agreement when due shall constitute a material breach of this Agreement. </P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:36pt; font-size:12pt" align=justify><U>3.10</U></P>
<P style="line-height:20pt; margin-top:0pt; margin-bottom:12pt; text-indent:72pt; font-size:12pt" align=justify><U>World-Wide Averaging; Expiration of Patent Rights.</U> &nbsp;Thermal Cycler Supplier acknowledges and agrees that the license herein reflects a worldwide averaging of royalty obligations. &nbsp;In particular, rather than a higher royalty rate that is pegged to Valid Claims of licensed patents and patent application on a jurisdiction by jurisdiction basis, and also to avoid the costs and administrative burden of reporting and calculating royalties on a jurisdiction by jurisdiction basis, Thermal Cycler Supplier has voluntarily opted for the lower royalty rate reflected in this Article 3 whereby royalties are due on the Net Sales Price of products covered by Valid Claims regardless of where made, used or sold so long as the making, having made, using, selling, offering for sale or importation of such product is covered in any one jurisdiction by at least one Valid Claim of the patents and patent a
pplications licensed pursuant to Article 2 herein. &nbsp;If all U.S. and foreign patents included in the Amplification Patent Rights expire before all patents included in the Thermal Cycling Instrument Patent Rights, the Amplification System Patent Rights and the Automated Method Patent Rights, or <U>vice</U> <U>versa</U>, the per-thermal cycler payments specified in Section 3.2(b) shall thereafter be reduced as follows. &nbsp;For the purpose of this Agreement, upon expiration of all patents included in the Amplification Patent Rights, the dollar amount stated in Section 3.2(b) shall be reduced thereafter to &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[**] &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;until the expiration of all of the patents included in the Amplification System Patent Rights and the Automated Method Patent Rights, at which point the per unit dollar amount stated in Section 3.2(b) shall be reduced thereafter to &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[**] &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nb
sp;&nbsp;&nbsp;. &nbsp;Royalty obligations under Sections 3.2(c) and 3.2(d) shall remain in effect until the last to expire of the Valid Claims licensed under Article 2 of this Agreement. &nbsp;</P>
<P style="line-height:20pt; margin-top:0pt; margin-bottom:12pt; text-indent:36pt; font-size:12pt" align=justify>After expiration of the Amplification Patent Rights, the Amplification System Patent Rights and the Automated Method Patent Rights, Progeny Patent Rights and Thermal Cycling Instrument </P>
<P style="margin-top:0pt; margin-bottom:12pt" align=justify><BR>
<BR></P>
<P style="margin:0pt; text-indent:214.75pt">24</P>
<P style="margin:0pt"><BR></P>
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<P style="margin:0pt"><BR></P>
<P style="line-height:20pt; margin-top:0pt; margin-bottom:12pt; font-size:12pt" align=justify>Patent Rights, as remaining patents licensed hereunder expire, the royalty rate under Section 3.2(c) shall be reduced to the amount ABI is then charging for the remaining Valid Claims.</P>
<P style="line-height:20pt; margin-top:0pt; margin-bottom:12pt; text-indent:36pt; font-size:12pt" align=justify>Royalties under Section 3.2(d) for Net Sales of Pressing Heated Covers under the Pressing Heated Cover Patent Rights shall be due only so long as at least one patent containing such Valid Claims (of Pressing Heated Cover Patent Rights) is in effect and shall not be subject to the reduction specified in this Section.</P>
<P style="line-height:20pt; margin-top:0pt; margin-bottom:12pt; text-indent:36pt; font-size:12pt" align=justify>For the avoidance of doubt, the payment obligation set forth in Section 3.1 herein is not subject to any reduction whatsoever. &nbsp;In addition, expiration of Valid Claims shall not affect any payment obligations that have accrued prior to such expiration.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:36pt; font-size:12pt" align=justify><B><U>4.</U></B></P>
<P style="line-height:20pt; margin-top:0pt; margin-bottom:12pt; text-indent:54pt; font-size:12pt" align=justify><B><U>Past Sales and Activities of MJ Research, Inc.</U></B></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:36pt; font-size:12pt" align=justify><U>4.1</U></P>
<P style="line-height:20pt; margin-top:0pt; margin-bottom:12pt; text-indent:54pt; font-size:12pt" align=justify><U>Covenant Not to Assert; Retroactive License</U>. &nbsp;Subject to the terms and conditions of this Section 4.1, Section 4.2 and Section 5.4, in consideration of the payments specified in parts (a)-(c) below of this Section 4.1, products that (had they been made, used or sold after the Effective Date by Thermal Cycler Supplier) would have been within the scope of the license granted pursuant to Article 2 of this Agreement that were delivered, invoiced or otherwise transferred by MJ Research solely under MJ Research's own name and trademarks to end user customers, directly or through its Affiliates (as Affiliates are defined in this Agreement) or distributors, prior to the Effective Date shall be deemed to be Authorized Thermal Cyclers licensed pursuant to this Agreement as follows:</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:108pt; text-indent:-36pt; font-size:12pt" align=justify>(a)</P>
<P style="line-height:20pt; margin:0pt; padding-left:108pt; font-size:12pt" align=justify>for such products &nbsp;so delivered, invoiced or otherwise transferred by MJ Research prior to August 18, 2004, upon Thermal Cycler Supplier&#146;s payment of the &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:72pt; font-size:12pt" align=justify>&nbsp;</P>
<P style="line-height:20pt; margin:0pt; padding-left:72pt; text-indent:180pt; font-size:12pt" align=justify>[**]</P>
<P style="margin:0pt" align=justify><BR></P>
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<P style="margin:0pt" align=justify><BR></P>
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<BR></P>
<P style="margin:0pt; text-indent:214.75pt">25</P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt; page-break-before:always" align=right><BR></P>
<P style="margin:0pt"><BR></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:108pt; text-indent:-36pt; font-size:12pt" align=justify>(b)</P>
<P style="line-height:20pt; margin:0pt; padding-left:108pt; font-size:12pt" align=justify>for such products so delivered, invoiced or otherwise transferred by MJ Research between August 18, 2004 and September 30, 2005 of this Agreement, by Thermal Cycler Supplier&#146;s payment of the </P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:20pt; margin:0pt; padding-left:252pt; font-size:12pt" align=justify>[**]</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:108pt; text-indent:-36pt; font-size:12pt" align=justify>(c)</P>
<P style="line-height:20pt; margin:0pt; padding-left:108pt; font-size:12pt" align=justify>for such products so delivered, invoiced or otherwise transferred by MJ Research between October 1, 2005 and the Effective of this Agreement, by Thermal Cycler Supplier&#146;s payment of the &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[**]</P>
<P style="line-height:20pt; margin:0pt; padding-left:180pt; text-indent:36pt; font-size:12pt" align=justify>; and</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:108pt; text-indent:-36pt; font-size:12pt" align=justify>(d)</P>
<P style="line-height:20pt; margin-top:0pt; margin-bottom:12pt; padding-left:108pt; font-size:12pt" align=justify>all use, prior to the Effective Date, of such Authorized Thermal Cyclers by customers, direct or indirect, of MJ Research shall be deemed to have been use of a Thermal Cycler or Temperature Cycling Instrument that is licensed by this Agreement. &nbsp;This Section does not apply to Thermal Cyclers or Temperature Cycling Instruments for which the end-user has already obtained authorization from ABI.</P>
<P style="line-height:20pt; margin-top:0pt; margin-bottom:12pt; padding-left:72pt; font-size:12pt" align=justify>For the avoidance of doubt, products made prior to the Effective Date that (had they been made, used or sold after the Effective Date by Thermal Cycler Supplier) would have been within the scope of the license granted pursuant to the Prior Agreement that were delivered, invoiced or otherwise transferred by Bio-Rad solely under Bio-Rad&#146;s own name and trademarks to end user customers, directly or through its Affiliates (as Affiliates are defined in this Agreement) or distributors, prior to the Effective Date shall be deemed to be Authorized Thermal Cyclers licensed pursuant to this Agreement to the extent that BioRad has complied with its royalty and other obligations under the Prior Agreement.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:36pt; font-size:12pt" align=justify><U>4.2</U></P>
<P style="line-height:20pt; margin-top:0pt; margin-bottom:12pt; text-indent:54pt; font-size:12pt" align=justify><U>Notification to End-Users</U>. &nbsp;Thermal Cycler Supplier shall use reasonable efforts to send to the original end-user customers of the Thermal Cyclers and Temperature Cycling Instruments that are the subject of Section 4.1, Authorized Thermal Cycler notices in accord </P>
<P style="margin-top:0pt; margin-bottom:12pt" align=justify><BR>
<BR></P>
<P style="margin:0pt; text-indent:214.75pt">26</P>
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<P style="line-height:20pt; margin-top:0pt; margin-bottom:12pt; font-size:12pt" align=justify>(substituting &quot;MJ Research&quot; and &quot;Bio-Rad&quot; where appropriate) with Sections 5.1, 5.2 and 5.3 with a means reasonably satisfactory to ABI to relate each such notice to the appropriate Thermal Cycler or Temperature Cycling Instrument. &nbsp;Any such Thermal Cycler or Temperature Cycling Instrument not having an authorization notice within sixty (60) days after the Effective Date of this Agreement shall cease to be an Authorized Thermal Cycler unless Thermal Cycler Supplier establishes to the reasonable satisfaction of ABI that (a) the Thermal Cycler or Temperature Cycling Instrument falls within Section 4.1, and (b) the Authorized Thermal Cycler notice (pursuant to Sections 5.1 through 5.3, as the case may be) for the Thermal Cycler or Temperature Cycling Instrument has not been applied incorrectly (i.e., to an instrument other than that for which the such notice was intended).</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:36pt; font-size:12pt" align=justify><B><U>5.</U></B></P>
<P style="line-height:20pt; margin-top:0pt; margin-bottom:12pt; text-indent:54pt; font-size:12pt" align=justify><B><U>Authorization Notice</U></B></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:36pt; font-size:12pt" align=justify><U>5.1</U></P>
<P style="line-height:20pt; margin-top:0pt; margin-bottom:12pt; text-indent:54pt; font-size:12pt" align=justify><U>Patent Notice.</U> &nbsp;Thermal Cycler Supplier agrees to include prominently in the front of the user's manual for each Authorized Thermal Cycler, and for no other Thermal Cycler or Temperature Cycling Instrument, a notice (&#147;Notice&#148;) as specified from time to time by ABI. &nbsp;Unless and until ABI reasonably instructs differently, the Notice shall be:</P>
<P style="margin:0pt" align=center><BR></P>
<P style="margin:0pt" align=center><BR>
<BR></P>
<P style="margin:0pt; text-indent:214.75pt">27</P>
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<P style="line-height:20pt; margin:0pt; font-size:12pt" align=center><B><U>Authorized Thermal Cycler</U></B></P>
<P style="margin:0pt" align=center><BR></P>
<P style="line-height:14pt; margin:0pt; padding-left:54pt; padding-right:36pt; font-size:12pt" align=justify><B>This instrument, Serial No. <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>, is an Authorized Thermal Cycler. &nbsp;Its purchase price includes the up-front fee component of a license under non- U.S. counterparts of &nbsp;U. S. Patent Nos. 4,683,195, 4,683,202 and 4,965,188, owned by F. Hoffmann-La Roche Ltd, covering the Polymerase Chain Reaction (&quot;PCR&quot;) process, to practice the PCR process for internal research and development using this instrument. &nbsp;The running royalty component of that license may be purchased from Applied Biosystems or obtained by purchasing Authorized Reagents. &nbsp;This instrument is also an Authorized Thermal Cycler for use with applications licenses available from Applied Biosystems. &nbsp;Its use with Authorized Reagents also provides a limited PCR license in accordance with the label rights acc
ompanying such reagents. &nbsp;Purchase of this product does not itself convey to the purchaser a complete license or right to perform the PCR process. &nbsp;Further information on purchasing licenses to practice the PCR process may be obtained by contacting the Director of Licensing at Applied Biosystems, 850 Lincoln Centre Drive, Foster City, California 94404, USA.</B></P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin:0pt; padding-left:54pt; padding-right:36pt; font-size:12pt" align=justify><B>No rights are conveyed expressly, by implication or estoppel to any patents on real-time methods, including but not limited to 5' nuclease assays, or to any patent claiming a reagent or kit.</B></P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:54pt; padding-right:36pt; font-size:12pt" align=justify><B>Applied Biosystems does not guarantee the performance of this instrument.</B></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:36pt; font-size:12pt" align=justify><U>5.2</U></P>
<P style="line-height:20pt; margin:0pt; text-indent:54pt; font-size:12pt" align=justify><U>Different User Manuals.</U> &nbsp;If Thermal Cycler Supplier sells base units separately from sample blocks or sample-block/heat-pump assemblies and/or with different user manuals, the Notice </P>
<P style="margin:0pt" align=justify><BR></P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:20pt; margin:0pt; font-size:12pt" align=justify>specified in this Section 5.2 shall be in the user manual for each base unit. &nbsp;Unless and until ABI reasonably instructs differently, the Notice shall be:</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:20pt; margin:0pt; font-size:12pt" align=center><B><U>Authorized Thermal Cycler</U></B></P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin:0pt; padding-left:54pt; padding-right:36pt; font-size:12pt" align=justify><B>This base unit, Serial No. <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>, in combination with its immediately attached &nbsp;Bio-Rad sample block modules, comprise an Authorized Thermal Cycler. The purchase price of this base unit includes the up-front fee component of a license under non-U.S. counterparts of &nbsp;U. S. Patent Nos. </B></P>
<P style="margin:0pt" align=justify><BR>
<BR></P>
<P style="margin:0pt; text-indent:214.75pt">28</P>
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<P style="margin:0pt"><BR></P>
<P style="line-height:14pt; margin:0pt; padding-left:54pt; padding-right:36pt; font-size:12pt" align=justify><B>4,683,195, 4,683,202 and 4,965,188, owned by F. Hoffmann-La Roche Ltd, covering the Polymerase Chain Reaction (&quot;PCR&quot;) process, to practice the PCR process for internal research and development using this instrument. &nbsp;The running royalty component of that license may be purchased from Applied Biosystems or obtained by purchasing Authorized Reagents. &nbsp;This instrument is also an Authorized Thermal Cycler for use with applications licenses available from Applied Biosystems. &nbsp;Its use with Authorized Reagents also provides a limited PCR license in accordance with the label rights accompanying such reagents. &nbsp;Purchase of this product does not itself convey to the purchaser a complete license or right to perform the PCR process. &nbsp;Further information on purchasing licenses to practice the PCR process may be obtained by contacting the Director of Licensing at Applied Biosys
tems, 850 Lincoln Centre Drive, Foster City, California 94404, USA.</B></P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin:0pt; padding-left:54pt; padding-right:36pt; font-size:12pt" align=justify><B>No rights are conveyed expressly, by implication or estoppel to any patents on real-time methods, including but not limited to 5' nuclease assays, or to any patent claiming a reagent or kit.</B></P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:54pt; padding-right:36pt; font-size:12pt" align=justify><B>Applied Biosystems does not guarantee the performance of this instrument.</B></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:36pt; font-size:12pt" align=justify><U>5.3</U></P>
<P style="line-height:20pt; margin:0pt; text-indent:54pt; font-size:12pt" align=justify><U>Dyad Disciple Notice.</U> &nbsp;If Thermal Cycler Supplier sells Dyad Disciple &quot;chassis&quot; separately from sample blocks or sample-block/heat-pump assemblies and separately from personal computers and/or Disciple Desktop software, or does not sell personal computers that may be utilized as programmable controllers, the Notice specified in this Section 5.3 shall be in the user manual for each Dyad Disciple &quot;chassis&quot;. &nbsp;Unless and until ABI reasonably instructs differently, the Notice shall be:</P>
<P style="margin:0pt" align=justify><BR></P>
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<P style="line-height:20pt; margin:0pt; font-size:12pt" align=center><B><U>Authorized Thermal Cycler</U></B></P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin:0pt; padding-left:54pt; padding-right:36pt; font-size:12pt" align=justify><B>This Dyad Disciple, Serial No. <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>, in combination with its immediately attached Bio-Rad sample block modules and a personal computer loaded with Disciple Desktop software, comprise an Authorized Thermal Cycler. The purchase price of this Dyad Disciple includes the up-</B></P>
<P style="margin:0pt" align=justify><BR>
<BR></P>
<P style="margin:0pt; text-indent:214.75pt">29</P>
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<P style="margin:0pt; page-break-before:always" align=right><BR></P>
<P style="margin:0pt"><BR></P>
<P style="line-height:14pt; margin:0pt; padding-left:54pt; padding-right:36pt; font-size:12pt" align=justify><B>front fee component of a license under non-U.S. counterparts of &nbsp;U. S. Patent Nos. 4,683,195, 4,683,202 and 4,965,188, owned by F. Hoffmann-La Roche Ltd, covering the Polymerase Chain Reaction (&quot;PCR&quot;) process, to practice the PCR process for internal research and development using such instrument. &nbsp;The running royalty component of that license may be purchased from Applied Biosystems or obtained by purchasing Authorized Reagents. &nbsp;Such instrument is also an Authorized Thermal Cycler for use with applications licenses available from Applied Biosystems. &nbsp;Its use with Authorized Reagents also provides a limited PCR license in accordance with the label rights accompanying such reagents. &nbsp;Purchase of this product does not itself convey to the purchaser a complete license or right to perform the PCR process. &nbsp;Further information on purchasing licenses to practice t
he PCR process may be obtained by contacting the Director of Licensing at Applied Biosystems, 850 Lincoln Centre Drive, Foster City, California 94404, USA.</B></P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin:0pt; padding-left:54pt; padding-right:36pt; font-size:12pt" align=justify><B>No rights are conveyed expressly, by implication or estoppel to any patents on real-time methods, including but not limited to 5' nuclease assays, or to any patent claiming a reagent or kit.</B></P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; padding-left:54pt; padding-right:36pt; font-size:12pt" align=justify><B>Applied Biosystems does not guarantee the performance of this instrument.</B></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:36pt; font-size:12pt" align=justify><U>5.4</U></P>
<P style="line-height:20pt; margin-top:0pt; margin-bottom:12pt; text-indent:54pt; font-size:12pt" align=justify><U>Labeling.</U> &nbsp;Thermal Cycler Supplier agrees to affix permanently and prominently to each complete Thermal Cycler that is an Authorized Thermal Cycler the designation &quot;Authorized Thermal Cycler&quot;, its Serial Number and a direction to consult the user's manual for license information. &nbsp;Thermal Cycler Supplier agrees to fix permanently and prominently to each base unit and Dyad Disciple &quot;chassis&quot; for which a [**] payment is made under Section 3.2(b) its Serial Number and the designation &quot;See Authorized Thermal Cycler Notice In User Manual For License Information.&quot;</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:36pt; font-size:12pt" align=justify><U>5.5</U></P>
<P style="line-height:20pt; margin-top:0pt; margin-bottom:12pt; text-indent:54pt; font-size:12pt" align=justify><U>Instructions to End Users. &nbsp;</U>Thermal Cycler Supplier further agrees to use reasonable efforts to instruct the end-user purchaser that transfer of the Thermal Cycler, Temperature Cycling Instrument, base unit or Dyad Disciple &quot;chassis&quot; without the Serial Number or the Notice shall </P>
<P style="margin-top:0pt; margin-bottom:12pt" align=justify><BR></P>
<P style="line-height:20pt; margin-top:0pt; margin-bottom:12pt; font-size:12pt" align=justify>automatically terminate the authorization granted by this Agreement and the authorization granted hereunder for or in connection with such product shall expire.</P>
<P style="margin-top:0pt; margin-bottom:12pt" align=justify><BR>
<BR></P>
<P style="margin:0pt; text-indent:214.75pt">30</P>
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<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:36pt; font-size:12pt" align=justify><U>5.6</U></P>
<P style="line-height:20pt; margin-top:0pt; margin-bottom:12pt; text-indent:54pt; font-size:12pt" align=justify><U>Naming.</U> &nbsp;To avoid confusion among thermal cycler users, Thermal Cycler Supplier agrees not to designate or refer to Thermal Cyclers, Temperature Cycling Instruments or other products covered by this Agreement as &quot;licensed&quot; unless it fully and simultaneously explains that the Thermal Cyclers, Temperature Cycling Instruments or other such products do not convey with their purchase a complete license under the Amplification Patent Rights. &nbsp;Attachment of the appropriate authorization Notice as set forth in Section 5 of this agreement shall satisfy this requirement.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:36pt; font-size:12pt" align=justify><U>5.7</U></P>
<P style="line-height:20pt; margin-top:0pt; margin-bottom:12pt; text-indent:54pt; font-size:12pt" align=justify><U>No Authorization Notice.</U> &nbsp;No Authorization Notice shall be supplied with any instrument, module or component other than a complete Thermal Cycler or Temperature Cycling Instrument, a base unit, or a Dyad Disciple &quot;chassis&quot;. &nbsp;</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:36pt; font-size:12pt" align=justify><B><U>6.</U></B></P>
<P style="line-height:20pt; margin-top:0pt; margin-bottom:12pt; text-indent:54pt; font-size:12pt" align=justify><B><U>Term and Termination</U></B></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:36pt; font-size:12pt" align=justify><U>6.1</U></P>
<P style="line-height:20pt; margin-top:0pt; margin-bottom:12pt; text-indent:54pt; font-size:12pt" align=justify><U>Term.</U> &nbsp;This Agreement, unless sooner terminated, shall continue until the expiration of the last-to-expire of the patents under which rights are granted in this Agreement. &nbsp;</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:36pt; font-size:12pt" align=justify><U>6.2</U></P>
<P style="line-height:20pt; margin-top:0pt; margin-bottom:12pt; text-indent:54pt; font-size:12pt" align=justify><U>Patent Invalidation. &nbsp;</U>This Agreement shall terminate upon a holding of invalidity or unenforceability of all patent claims licensed hereunder by a final court decision from which no appeal is or can be taken.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:36pt; font-size:12pt" align=justify><U>6.3</U></P>
<P style="line-height:20pt; margin-top:0pt; margin-bottom:12pt; text-indent:54pt; font-size:12pt" align=justify><U>Termination by Thermal Cycler Supplier.</U> &nbsp;Thermal Cycler Supplier may terminate this Agreement for any reason by giving written notice to ABI and ceasing to label, advertise or promote its Thermal Cyclers or Temperature Cycling Instruments as Authorized Thermal Cyclers and ceasing to label, advertise or promote its base units and Dyad Disciple &quot;chassis&quot; when combined with other modules as Authorized Thermal Cyclers. &nbsp;Such termination shall be effective ninety (90) days after said notice or cessation, whichever is later. &nbsp;Such termination shall not affect the obligations of Thermal Cycler Supplier, MJ Research, Michael Finney, John Finney or any other person or party under the Settlement Agreement, and Thermal Cycler Supplier shall comply with the injunctive provisions of the Consent Judgment immediately upon such termination.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:36pt; font-size:12pt" align=justify><U>6.4</U></P>
<P style="line-height:20pt; margin-top:0pt; margin-bottom:12pt; text-indent:54pt; font-size:12pt" align=justify><U>Termination by ABI.</U> &nbsp;&nbsp;Without limiting its other contractual, legal or equitable rights or remedies, ABI shall have the right to terminate this Agreement immediately upon notice to </P>
<P style="margin-top:0pt; margin-bottom:12pt" align=justify><BR>
<BR></P>
<P style="margin:0pt; text-indent:214.75pt">31</P>
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<P style="margin:0pt"><BR></P>
<P style="line-height:20pt; margin-top:0pt; margin-bottom:12pt; font-size:12pt" align=justify>Thermal Cycler Supplier in the event that a court finds ABI liable for any damages or causes of action resulting from Thermal Cycler Supplier's manufacture of Thermal Cyclers, Temperature Cycling Instruments, base units, Dyad Disciple &quot;chassis&quot; or associated modules or components thereof covered by this Agreement or due to the sale or distribution of any of the foregoing by Thermal Cycler Supplier, an Affiliate or a distributor.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:36pt; font-size:12pt" align=justify><U>6.5</U></P>
<P style="line-height:20pt; margin-top:0pt; margin-bottom:12pt; text-indent:54pt; font-size:12pt" align=justify><U>Insolvency.</U> &nbsp;This Agreement shall terminate immediately and automatically without any requirement of notice or any other action by ABI upon &nbsp;(i) an adjudication of Thermal Cycler Supplier as bankrupt or insolvent, or Thermal Cycler Supplier's admission in writing of its inability to pay its obligations as they mature; &nbsp;(ii) an assignment by Thermal Cycler Supplier for the benefit of creditors; &nbsp;(iii) the appointment of, or Thermal Cycler Supplier's applying for or consenting to the appointment of, a receiver, trustee or similar officer for a substantial part of its property; or (iv) the institution of or any act of Thermal Cycler Supplier instituting any bankruptcy, insolvency arrangement, or similar proceeding. &nbsp;This Agreement shall terminate immediately and automatically without any requirement of notice or any other action by ABI upon the occurrence of any of the 
following unless cured by Thermal Cycler Supplier within (30) days of such process: &nbsp;the issuance or levy of any judgment, writ, warrant of attachment or execution or similar process against a substantial part of the property of Thermal Cycler Supplier. A termination pursuant to this Section 6.5 shall be deemed to have occurred immediately prior to the events set forth in this Section triggering such termination</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:36pt; font-size:12pt" align=justify><U>6.6</U></P>
<P style="line-height:20pt; margin-top:0pt; margin-bottom:12pt; text-indent:54pt; font-size:12pt" align=justify><U>Change of Control.</U> &nbsp;Subject to Section 9.1 herein, this Agreement will terminate immediately and automatically upon any change in the ownership or control of Thermal Cycler Supplier or of its assets unless ABI has provided prior written consent to such change in ownership or control. &nbsp;For such purposes, a &quot;change in ownership or control&quot; shall mean that 50% or more of the voting stock of Thermal Cycler Supplier becomes subject to the ownership or control of a person or entity (other than a beneficiary under a last will and testament) or any related group of persons or entities acting in concert, which person(s) or entity(ies) did not own or control such portion of voting stock on the Effective Date hereof. &nbsp;Subject to Section 9.1 herein, this Agreement will also terminate </P>
<P style="margin-top:0pt; margin-bottom:12pt" align=justify><BR></P>
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<BR></P>
<P style="margin:0pt; text-indent:214.75pt">32</P>
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<P style="margin:0pt"><BR></P>
<P style="line-height:20pt; margin-top:0pt; margin-bottom:12pt; font-size:12pt" align=justify>immediately and automatically upon any transfer of 50% or more of the assets of Thermal Cycler Supplier. &nbsp;Without limiting ABI&#146;s foregoing right to terminate, MJ Research shall remain licensed hereunder for only so long as MJ Research remains a wholly (i.e., one hundred percent (100%)) owned subsidiary of Bio-Rad.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:36pt; font-size:12pt" align=justify><U>6.7</U></P>
<P style="line-height:20pt; margin-top:0pt; margin-bottom:12pt; text-indent:54pt; font-size:12pt" align=justify><U>Termination for Licensee&#146;s Material Breach.</U> &nbsp;Except as otherwise provided under the Settlement Agreement, in the event of a material breach or default under this Agreement or the Settlement Agreement by Thermal Cycler Supplier, this Agreement shall terminate automatically [**] &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;after ABI provides written notice of such breach or default; provided that such breach or default has not been cured by Thermal Cycler Supplier within such &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[**] &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;period of time. &nbsp;Any material breach by Thermal Cycler Supplier of the Settlement Agreement or the Consent Judgment shall be deemed a mate
rial breach of this Agreement. &nbsp;Without limiting the foregoing, this Agreement is subject to the provisions addressing remedies and termination of the Settlement Agreement because of breach or default under this Agreement. &nbsp;</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:36pt; font-size:12pt" align=justify><U>6.8</U></P>
<P style="line-height:20pt; margin-top:0pt; margin-bottom:12pt; text-indent:54pt; font-size:12pt" align=justify><U>Effect of Termination; Expiration</U>. &nbsp;Upon expiration or termination of this Agreement, all licenses granted to Thermal Cycler Supplier shall terminate. &nbsp;Thermal Cycler Supplier's obligations under Article 3 or Article 4 accruing prior to termination or expiration and Articles 6, 7, 10 and 11 shall survive termination or expiration. &nbsp;Termination of this Agreement for any reason shall be without prejudice to any rights that shall have accrued to the benefit of a Party prior to or on account of such termination or expiration. &nbsp;All remedies provided hereunder or elsewhere are cumulative. &nbsp;</P>
<P style="line-height:20pt; margin-top:0pt; margin-bottom:12pt; text-indent:36pt; font-size:12pt" align=justify>6.9</P>
<P style="margin-top:0pt; margin-bottom:12pt" align=justify><BR></P>
<P style="line-height:20pt; margin-top:0pt; margin-bottom:12pt; text-indent:36pt; font-size:12pt" align=center>[**]</P>
<P style="margin-top:0pt; margin-bottom:12pt" align=justify><BR></P>
<P style="margin-top:0pt; margin-bottom:12pt" align=justify><BR></P>
<P style="margin-top:0pt; margin-bottom:12pt" align=justify><BR>
<BR></P>
<P style="margin:0pt; text-indent:214.75pt">33</P>
<P style="margin:0pt"><BR></P>
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<P style="margin:0pt; page-break-before:always" align=right><BR></P>
<P style="margin:0pt"><BR></P>
<P style="margin-top:0pt; margin-bottom:12pt" align=justify><BR></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:36pt; font-size:12pt" align=justify><B><U>7.</U></B></P>
<P style="line-height:20pt; margin-top:0pt; margin-bottom:12pt; text-indent:54pt; font-size:12pt" align=justify><B><U>Confidentiality - Publicity</U></B></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:36pt; font-size:12pt" align=justify><U>7.1</U></P>
<P style="line-height:normal; margin:0pt; text-indent:54pt; font-size:12pt" align=justify><U>Markings</U>. &nbsp;Unless and until ABI reasonably instructs differently<B>, </B>in advertisements, catalogs, brochures, sales literature and promotional literature for Authorized Thermal Cyclers, Thermal Cycler Supplier, its Affiliates and distributors shall state the following prominently in type and location:</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:20pt; margin-top:0pt; margin-bottom:12pt; text-indent:36pt; font-size:12pt" align=justify>Practice of the patented polymerase chain reaction (PCR) process requires a license. &nbsp;Bio-Rad Thermal Cyclers, whether purchased as complete instruments or as multiple modules, are Authorized Thermal Cyclers and may be used with PCR licenses available from Applied Biosystems. &nbsp;Their use with Authorized Reagents also provides a limited PCR license in accordance with the label rights accompanying such reagents.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:36pt; font-size:12pt" align=justify><U>7.2</U></P>
<P style="line-height:20pt; margin-top:0pt; margin-bottom:12pt; text-indent:54pt; font-size:12pt" align=justify><U>Publicity.</U> &nbsp;With respect to Thermal Cycler Supplier's distribution of any written information to Third Parties, including but not limited to, advertising, brochures, catalogs, promotional and sales material, and public relations material, ABI shall have the right to prescribe changes regarding references to, or descriptions of: &nbsp;ABI, PCR, the patents under which rights are granted in this Agreement, PCR licenses or authorizations, or this Agreement. &nbsp;Thermal Cycler Supplier agrees to comply with ABI's reasonable prescriptions. &nbsp;</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:36pt; font-size:12pt" align=justify><U>7.3</U></P>
<P style="line-height:20pt; margin-top:0pt; margin-bottom:12pt; text-indent:54pt; font-size:12pt" align=justify><U>Confidentiality.</U> &nbsp;Except as provided in Sections 7.1 and 7.2, Thermal Cycler Supplier shall maintain the confidentiality of the provisions of this Agreement, its terms and conditions, and shall refrain from disclosing without ABI&#146;s written consent the same to anyone except employees with a need to know and who are bound by confidentiality obligations consistent with this Agreement. &nbsp;Notwithstanding the foregoing, Thermal Cycler Supplier shall have the right to make such disclosure solely to the extent such disclosure is required pursuant to court order or applicable law or regulation in which case Thermal Cycler Supplier shall promptly notify ABI of such requirement thirty (30) days in advance of any disclosure. &nbsp;Thermal Cycler Supplier shall in any event provide ABI a reasonable opportunity to comment upon, object to or seek a protective order </P>
<P style="margin-top:0pt; margin-bottom:12pt" align=justify><BR>
<BR></P>
<P style="margin:0pt; text-indent:214.75pt">34</P>
<P style="margin:0pt"><BR></P>
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<P style="margin:0pt"><BR></P>
<P style="line-height:20pt; margin-top:0pt; margin-bottom:12pt; font-size:12pt" align=justify>with respect to the disclosure, or to redact the proposed disclosure copy of the Agreement. &nbsp;Should Thermal Cycler Supplier conclude in good faith that such disclosure is in fact required pursuant to applicable law, Thermal Cycler Supplier shall notify ABI in writing at least thirty (30) days before such disclosure is made to permit ABI to comment upon or object to the disclosure, or to redact the disclosure copy of the Agreement such that the disclosure is limited to such information as is required by law. </P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:36pt; font-size:12pt" align=justify><B><U>8.</U></B></P>
<P style="line-height:20pt; margin-top:0pt; margin-bottom:12pt; text-indent:54pt; font-size:12pt" align=justify><B><U>Compliance and Quality</U></B></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:36pt; font-size:12pt" align=justify><U>8.1</U></P>
<P style="line-height:20pt; margin-top:0pt; margin-bottom:12pt; text-indent:54pt; font-size:12pt" align=justify><U>Compliance with Applicable Law.</U> &nbsp;In the exercise of any and all rights and in performance hereunder, it shall be the duty of Thermal Cycler Supplier, not ABI, to comply fully with all applicable laws, regulations and ordinances and to obtain and keep in effect licenses, permits and other governmental approvals (federal, state or local) necessary or appropriate to carry on activities hereunder.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:36pt; font-size:12pt" align=justify><U>8.2</U></P>
<P style="line-height:20pt; margin-top:0pt; margin-bottom:12pt; text-indent:54pt; font-size:12pt" align=justify><U>No Endorsement.</U> &nbsp;ABI does not approve or endorse Thermal Cyclers, Temperature Cycling Instruments, base units, Dyad Disciple &quot;chassis&quot; or other modules and components of Thermal Cycler Supplier in any way or for any purpose, including PCR. &nbsp;Quality and quality control with respect to suitability for PCR, according to standards and requirements that may exist in the marketplace from time to time, are the sole responsibility of Thermal Cycler Supplier.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:36pt; font-size:12pt" align=justify><B><U>9.</U></B></P>
<P style="line-height:20pt; margin-top:0pt; margin-bottom:12pt; text-indent:54pt; font-size:12pt" align=justify><B><U>Assignment</U></B></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:36pt; font-size:12pt" align=justify><U>9.1</U></P>
<P style="line-height:20pt; margin-top:0pt; margin-bottom:12pt; text-indent:54pt; font-size:12pt" align=justify><U>Assignment by Thermal Cycler Supplier.</U> &nbsp;This Agreement and the licenses granted hereunder are personal in nature. &nbsp;This Agreement and the rights hereunder are non-delegable and nonassignable by Thermal Cycler Supplier</P>
<P style="line-height:20pt; margin-top:0pt; margin-bottom:12pt; font-size:12pt" align=center>[**]</P>
<P style="line-height:20pt; margin-top:0pt; margin-bottom:12pt; font-size:12pt" align=justify>&nbsp;&nbsp;Any other assignment without prior written consent from ABI shall be void <I>ab initio</I> and result in automatic termination of this Agreement without any requirement or notice or other action by ABI. &nbsp;Without limiting the foregoing, this Agreement cannot be assumed or assumed and assigned by a </P>
<P style="margin-top:0pt; margin-bottom:12pt" align=justify><BR>
<BR></P>
<P style="margin:0pt; text-indent:214.75pt">35</P>
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<P style="margin:0pt"><BR></P>
<P style="line-height:20pt; margin-top:0pt; margin-bottom:12pt; font-size:12pt" align=justify>trustee or debtor-in-possession in bankruptcy as set forth in section 365(c)(1) of the United States Bankruptcy Code or any similar provisions of state or federal law.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:36pt; font-size:12pt" align=justify><U>9.2</U></P>
<P style="line-height:20pt; margin-top:0pt; margin-bottom:12pt; text-indent:54pt; font-size:12pt" align=justify><U>Assignment by ABI.</U> &nbsp;ABI may assign all or any part of its rights and obligations under this Agreement at any time without the consent of Thermal Cycler Supplier. &nbsp;Thermal Cycler Supplier agrees to execute such further acknowledgments or other instruments as ABI may reasonably request in connection with such assignment.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:36pt; font-size:12pt" align=justify><B><U>10.</U></B></P>
<P style="line-height:20pt; margin-top:0pt; margin-bottom:12pt; text-indent:54pt; font-size:12pt" align=justify><B><U>Negation of Warranties and Indemnity</U></B></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:36pt; font-size:12pt" align=justify><U>10.1</U></P>
<P style="line-height:20pt; margin-top:0pt; margin-bottom:12pt; text-indent:72pt; font-size:12pt" align=justify><U>No Warranty.</U> &nbsp;NEITHER ABI NOR ROCHE MAKE ANY EXPRESS OR IMPLIED WARRANTIES INCLUDING, WITHOUT LIMITATION, ANY EXPRESS OR IMPLIED WARRANTY OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE OR NONINFRINGEMENT. Nothing in this Agreement shall be construed as: &nbsp;(a) a warranty or representation by ABI or Roche as to the valid&shy;ity or scope of any patent; (b) a warranty or represen&shy;tation that the practice under the Amplification Patent Rights, the Amplification System Patent Rights, the Thermal Cycling Instrument Patent Rights, the Automated Method Patent Rights, the Algorithm Patent Rights, the Progeny Patent Rights or the Pressing Heated Cover Patent Rights is or will be free from infringement of patents of Third Parties; &nbsp;(c) an obligation to sue Third Parties for infringement; &nbsp;(d) except as expressly set forth herein, conferr&shy;ing the right to use in advertis
ing, publicity or otherwise, in any form, the name of, or any trademark or trade name of, ABI or Roche; &nbsp;(e) conferring by implication, estoppel or other&shy;wise any license, immunity or right under any patent owned by or licensed to ABI or Roche other than those expressly licensed pursuant to Article 2 herein, regardless of whether such patent is dominant or subordinate to the patents licensed to Thermal Cycler Supplier under Article 2 of &nbsp;this Agreement; &nbsp;(f) an obligation to furnish any know-how; or (g) creating any agency, partnership, joint venture or similar relationship between ABI or Roche and Thermal Cycler Supplier.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:36pt; font-size:12pt" align=justify><U>10.2</U></P>
<P style="line-height:20pt; margin-top:0pt; margin-bottom:12pt; text-indent:72pt; font-size:12pt" align=justify><U>Indemnification. &nbsp;</U>Thermal Cycler Supplier shall assume all risk and full responsibility for Thermal Cycler Supplier making, having made (as permitted hereunder), using or selling of those products. &nbsp;Thermal Cycler Supplier shall defend, indemnify and hold ABI and Roche harmless from </P>
<P style="margin-top:0pt; margin-bottom:12pt" align=justify><BR>
<BR></P>
<P style="margin:0pt; text-indent:214.75pt">36</P>
<P style="margin:0pt"><BR></P>
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<P style="margin:0pt; page-break-before:always" align=right><BR></P>
<P style="margin:0pt"><BR></P>
<P style="line-height:20pt; margin-top:0pt; margin-bottom:12pt; font-size:12pt" align=justify>and against all liability, demands, damages, expenses (including attorneys' fees) and losses arising or resulting from Thermal Cycler Supplier&#146;s (or its Affiliates or distributor&#146;s) making, using or selling those products, including, without limitation any claims for infringement, personal injury, &nbsp;property damage or any other injury or damage. </P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:36pt; font-size:12pt" align=justify><B><U>11.</U></B></P>
<P style="line-height:20pt; margin-top:0pt; margin-bottom:12pt; text-indent:54pt; font-size:12pt" align=justify><B><U>General</U></B></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:36pt; font-size:12pt" align=justify><U>11.1</U></P>
<P style="line-height:normal; margin-top:0pt; margin-bottom:12pt; text-indent:72pt; font-size:12pt" align=justify><U>Integration.</U> &nbsp;This Agreement together with the Settlement Agreement and the Consent Judgment both of which are hereby incorporated by reference constitutes the entire agreement between the Parties as to the subject matter hereof, and supersedes and replaces all prior negotiations, representations, agreements and understandings with respect to the subject matter hereof. &nbsp;This Agreement supersedes and replaces Thermal Cycler Supplier's Thermal Cycler Supplier Agreement having an effective date of April 1, 1998 except as to payment and other obligations of Thermal Cycler Supplier that have already accrued (as of the Effective Date of this Agreement) under such prior agreement, all of which shall survive subject to the terms and conditions of this Agreement. &nbsp;This Agreement may be modified or amended only by a writing executed by authorized officers of each of the Parties. Concu
rrently with this Agreement, ABI, on the one hand, and Thermal Cycler Supplier and MJ Research, on the other hand, have also entered into the Real-Time Settlement Agreements (that, for the avoidance of doubt, are not superseded or replaced by this Agreement) and grant Thermal Cycler Supplier and MJ Research certain licenses pursuant to the Real-Time Instrument Patent License Agreement.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:36pt; font-size:12pt" align=justify><U>11.2</U></P>
<P style="line-height:20pt; margin-top:0pt; margin-bottom:12pt; text-indent:72pt; font-size:12pt" align=justify><U>Notices. &nbsp;</U>Any notice required or permitted to be given by this Agreement shall be in writing and shall be given by postpaid, first class, registered or certified mail, or by courier or facsimile, properly addressed to the other party at the respective address as shown below:</P>
<P style="margin-top:0pt; margin-bottom:12pt" align=justify><BR>
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<P style="margin:0pt; text-indent:214.75pt">37</P>
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<P style="margin:0pt"><BR></P>
<P style="line-height:20pt; margin-top:0pt; margin-bottom:12pt; font-size:12pt" align=justify>If to ABI:</P>
<P style="line-height:14pt; margin:0pt; text-indent:108pt; font-size:12pt" align=justify>Applied Biosystems</P>
<P style="line-height:14pt; margin:0pt; text-indent:108pt; font-size:12pt" align=justify>850 Lincoln Centre Drive</P>
<P style="line-height:14pt; margin:0pt; text-indent:108pt; font-size:12pt" align=justify>Foster City, California &nbsp;94404 &nbsp;&nbsp;U.S.A.</P>
<P style="line-height:14pt; margin:0pt; text-indent:108pt; font-size:12pt" align=justify>Attn.: &nbsp;Director of Licensing</P>
<P style="line-height:20pt; margin-top:0pt; margin-bottom:12pt; text-indent:108pt; font-size:12pt" align=justify>Fax No.: &nbsp;(650) 638-6071</P>
<P style="line-height:20pt; margin-top:0pt; margin-bottom:12pt; font-size:12pt" align=justify>If to Thermal Cycler Supplier:</P>
<P style="line-height:14pt; margin:0pt; text-indent:108pt; font-size:12pt" align=justify>Bio-Rad Laboratories, Inc.</P>
<P style="line-height:14pt; margin:0pt; text-indent:108pt; font-size:12pt" align=justify>1000 Alfred Nobel Drive</P>
<P style="line-height:14pt; margin:0pt; text-indent:108pt; font-size:12pt" align=justify>Hercules, CA 94547</P>
<P style="line-height:14pt; margin:0pt; text-indent:108pt; font-size:12pt" align=justify>Attn.: General Counsel </P>
<P style="line-height:20pt; margin-top:0pt; margin-bottom:12pt; text-indent:108pt; font-size:12pt" align=justify>Fax No.: &nbsp;(510) 741-5815</P>
<P style="line-height:20pt; margin-top:0pt; margin-bottom:12pt; font-size:12pt" align=justify>Either party may change its address by providing notice to the other. &nbsp;A notice shall be deemed given four (4) full business days after the day of mailing, or one full day after the date of delivery to the courier, or the date of facsimile transmission, as the case may be.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:36pt; font-size:12pt" align=justify><U>11.3</U></P>
<P style="line-height:20pt; margin-top:0pt; margin-bottom:12pt; text-indent:72pt; font-size:12pt" align=justify><U>Governing Law and Venue</U>. &nbsp;This Agreement shall be deemed made in the State of California, and it shall be construed and enforced in accordance with the law of the State of California. &nbsp;The Parties agree that the United States District Court for the District of Connecticut shall retain exclusive jurisdiction and and shall be the exclusive venue for any dispute or controversy arising from this Agreement or &nbsp;Thermal Cycler Supplier Agreement having an effective date of April 1, 1998.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:36pt; font-size:12pt" align=justify><U>11.4</U></P>
<P style="line-height:20pt; margin-top:0pt; margin-bottom:12pt; text-indent:72pt; font-size:12pt" align=justify><U>Conflicting Provisions.</U> &nbsp;Nothing in this Agreement shall be construed to require the commission of any act contrary to law, and wherever there is any conflict between any provision of this Agreement or concerning the legal right of the Parties to enter into this contract and any statute, law or ordinance, the latter shall prevail, but the provision shall be limited only to the extent necessary.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:36pt; font-size:12pt" align=justify><U>11.5</U></P>
<P style="line-height:20pt; margin-top:0pt; margin-bottom:12pt; text-indent:72pt; font-size:12pt" align=justify><U>Severability.</U> &nbsp;If any provision hereof should be held invalid, illegal or unenforceable in any respect, then, to the fullest extent permitted by applicable law: (a) all other provisions hereof </P>
<P style="margin-top:0pt; margin-bottom:12pt" align=justify><BR>
<BR></P>
<P style="margin:0pt; text-indent:214.75pt">38</P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt; page-break-before:always" align=right><BR></P>
<P style="margin:0pt"><BR></P>
<P style="line-height:20pt; margin-top:0pt; margin-bottom:12pt; font-size:12pt" align=justify>shall remain in full force and effect and shall be liberally construed in order to carry out the intent of the Parties as nearly as may be possible, and (b) the Parties agree to negotiate in good faith a provision, in replacement of the provision held invalid, illegal or unenforceable, that is consistent with applicable law and accomplishes, as nearly as possible, the original intention of the Parties with respect thereto. &nbsp;To the fullest extent permitted by applicable law, each Party hereby waives any provision of law that would render any provision hereof prohibited or unenforceable in any respect.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:36pt; font-size:12pt" align=justify><U>11.6</U></P>
<P style="line-height:20pt; margin-top:0pt; margin-bottom:12pt; text-indent:72pt; font-size:12pt" align=justify><U>Construction.</U> &nbsp;Except where the context otherwise requires, wherever used, the singular shall include the plural and the word &#147;or&#148; is used in the inclusive sense. &nbsp;The captions and headings of this Agreement are for convenience of reference only and in no way define, describe, extend or limit the scope or intent of this Agreement or the intent of any provision contained in this Agreement. &nbsp;Each Party hereto and its counsel have participated fully in the review and negotiation of this Agreement. &nbsp;Both parties have participated equally in the formation of this Agreement; the language of this Agreement shall not be presumptively construed against either Party.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:36pt; font-size:12pt" align=justify><U>11.7</U></P>
<P style="line-height:20pt; margin-top:0pt; margin-bottom:12pt; text-indent:72pt; font-size:12pt" align=justify><U>Independent Contractors.</U> &nbsp;It is expressly agreed that the Parties, shall be independent contractors and that the relationship between the Parties shall not constitute a partnership, joint venture or agency. </P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:36pt; font-size:12pt" align=justify><U>11.8</U></P>
<P style="line-height:20pt; margin-top:0pt; margin-bottom:12pt; text-indent:72pt; font-size:12pt" align=justify><U>Waiver.</U> &nbsp;The waiver by either Party hereto of any right hereunder or the failure to perform or a breach by the other Party shall not be deemed a waiver of any other right hereunder or of any other breach or failure by said other Party whether of a similar nature or otherwise.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:36pt; font-size:12pt" align=justify><U>11.9</U></P>
<P style="line-height:20pt; margin-top:0pt; margin-bottom:12pt; text-indent:72pt; font-size:12pt" align=justify><U>Counterparts.</U> &nbsp;This Agreement may be executed (including via facsimile) in two (2) or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:36pt; font-size:12pt" align=justify><U>11.10</U></P>
<P style="line-height:20pt; margin-top:0pt; margin-bottom:12pt; text-indent:72pt; font-size:12pt" align=justify><U>No Third Party Beneficiaries</U>. &nbsp;Except as otherwise expressly provided herein, the representations, warranties, covenants, rights and obligations set forth in this Agreement are for the sole benefit of the Parties and their successors and permitted assigns, and they shall not be construed as conferring any rights on any third parties.</P>
<P style="margin-top:0pt; margin-bottom:12pt" align=justify><BR>
<BR></P>
<P style="margin:0pt; text-indent:214.75pt">39</P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt; page-break-before:always" align=right><BR></P>
<P style="margin:0pt"><BR></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:36pt; font-size:12pt" align=justify><U>11.11</U></P>
<P style="line-height:20pt; margin-top:0pt; margin-bottom:12pt; text-indent:72pt; font-size:12pt" align=justify><U>Joint and Several Liability</U>. &nbsp;Bio-Rad is and shall remain jointly and severally liable with MJ Research for all of Thermal Cycler Supplier&#146;s obligations hereunder. &nbsp;Without limiting Thermal Cycler Supplier&#146;s obligations hereunder, each of MJ Research and Bio-Rad hereby agrees to act as guarantor for each other&#146;s performance (including each party&#146;s payment obligations hereunder) and compliance with its obligations under this Agreement. &nbsp;The foregoing obligation shall survive any expiration or termination of this Agreement and any change of control or acquisition of Thermal Cycler Suppler (even if such change of control or acquisition results in MJ Research no longer qualifying as an Affiliate of Bio-Rad).</P>
<P style="margin-top:0pt; margin-bottom:5pt">/ / /</P>
<P style="margin-top:0pt; margin-bottom:5pt"><BR>
<BR></P>
<P style="margin:0pt; text-indent:214.75pt">40</P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt; page-break-before:always" align=right><BR></P>
<P style="margin:0pt"><BR></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:6pt; text-indent:36pt; font-size:12pt">IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be duly executed by their respective authorized representatives, effective as of the Effective Date.</P>
<P style="margin-top:0pt; margin-bottom:12pt"><BR></P>
<TABLE style="font-size:10pt" cellspacing=0><TR><TD width=35.4></TD><TD width=203.8></TD><TD width=34.15></TD><TD width=191.4></TD></TR>
<TR><TD valign=top width=47.2>&nbsp;</TD><TD valign=top width=271.733>&nbsp;</TD><TD valign=top width=45.533>&nbsp;</TD><TD valign=top width=255.2>&nbsp;</TD></TR>
<TR><TD valign=top width=47.2>&nbsp;</TD><TD valign=top width=271.733><P style="line-height:13pt; margin:0pt; font-size:11pt">APPLERA CORPORATION, THROUGH ITS APPLIED BIOSYSTEMS GROUP</P>
</TD><TD valign=top width=45.533>&nbsp;</TD><TD valign=top width=255.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=justify>BIO-RAD LABORATORIES, INC.</P>
</TD></TR>
<TR><TD valign=top width=47.2>&nbsp;</TD><TD valign=top width=271.733>&nbsp;</TD><TD valign=top width=45.533>&nbsp;</TD><TD valign=top width=255.2><P style="line-height:14pt; margin:0pt; font-size:12pt" align=justify>(THERMAL CYCLER SUPPLIER)</P>
</TD></TR>
<TR><TD valign=top width=47.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>By:</P>
</TD><TD valign=top width=271.733><P style="line-height:13pt; margin:0pt; font-size:11pt" align=justify><U>/s/ Catherine M. Burzik</U></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=justify>Catherine M. Burzik</P>
</TD><TD valign=top width=45.533><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>By:</P>
</TD><TD valign=top width=255.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=justify><U>/s/ Norman Schwartz</U></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=justify>Norman Schwartz</P>
</TD></TR>
<TR><TD valign=top width=47.2>&nbsp;</TD><TD valign=top width=271.733><P style="line-height:13pt; margin:0pt; font-size:11pt" align=justify>Title: &nbsp;&nbsp;&nbsp;President</P>
</TD><TD valign=top width=45.533>&nbsp;</TD><TD valign=top width=255.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=justify>Title: &nbsp;&nbsp;&nbsp;President</P>
</TD></TR>
<TR><TD valign=top width=47.2>&nbsp;</TD><TD valign=top width=271.733>&nbsp;</TD><TD valign=top width=45.533>&nbsp;</TD><TD valign=top width=255.2>&nbsp;</TD></TR>
<TR><TD valign=top width=47.2>&nbsp;</TD><TD valign=top width=271.733><P style="line-height:13pt; margin:0pt; font-size:11pt" align=justify>Date: &nbsp;&nbsp;February 9, 2006</P>
</TD><TD valign=top width=45.533>&nbsp;</TD><TD valign=top width=255.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=justify>Date: &nbsp;&nbsp;&nbsp;February 9, 2006</P>
</TD></TR>
<TR><TD valign=top width=47.2>&nbsp;</TD><TD valign=top width=271.733>&nbsp;</TD><TD valign=top width=45.533>&nbsp;</TD><TD valign=top width=255.2>&nbsp;</TD></TR>
<TR><TD valign=top width=47.2>&nbsp;</TD><TD valign=top width=271.733><P style="line-height:13pt; margin:0pt; font-size:11pt" align=justify>MJ RESEARCH, INC.</P>
</TD><TD valign=top width=45.533>&nbsp;</TD><TD valign=top width=255.2>&nbsp;</TD></TR>
<TR><TD valign=top width=47.2>&nbsp;</TD><TD valign=top width=271.733>&nbsp;</TD><TD valign=top width=45.533>&nbsp;</TD><TD valign=top width=255.2>&nbsp;</TD></TR>
<TR><TD valign=top width=47.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>By:</P>
</TD><TD valign=top width=271.733><P style="line-height:13pt; margin:0pt; font-size:11pt" align=justify><U>/s/ Norman Schwartz</U></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=justify>Name: &nbsp;Norman Schwartz</P>
</TD><TD valign=top width=45.533>&nbsp;</TD><TD valign=top width=255.2>&nbsp;</TD></TR>
<TR><TD valign=top width=47.2>&nbsp;</TD><TD valign=top width=271.733><P style="line-height:13pt; margin:0pt; font-size:11pt" align=justify>Title: &nbsp;&nbsp;&nbsp;President</P>
</TD><TD valign=top width=45.533>&nbsp;</TD><TD valign=top width=255.2>&nbsp;</TD></TR>
<TR><TD valign=top width=47.2>&nbsp;</TD><TD valign=top width=271.733>&nbsp;</TD><TD valign=top width=45.533>&nbsp;</TD><TD valign=top width=255.2>&nbsp;</TD></TR>
<TR><TD valign=top width=47.2>&nbsp;</TD><TD valign=top width=271.733><P style="line-height:13pt; margin:0pt; font-size:11pt" align=justify>Date: &nbsp;&nbsp;&nbsp;February 9, 2006</P>
</TD><TD valign=top width=45.533>&nbsp;</TD><TD valign=top width=255.2>&nbsp;</TD></TR>
</TABLE>
<P style="margin:0pt" align=justify><BR></P>
<P style="margin:0pt" align=justify><BR></P>
<P style="margin:0pt" align=justify><BR></P>
<P style="margin:0pt" align=justify><BR></P>
<P style="margin:0pt" align=justify><BR>
<BR></P>
<P style="margin:0pt; text-indent:214.75pt">41</P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt; page-break-before:always" align=right><BR></P>
<P style="margin:0pt"><BR></P>
<P style="line-height:20pt; margin:0pt; font-size:12pt" align=center>EXHIBIT B</P>
<P style="margin:0pt"><BR></P>
<P style="line-height:20pt; margin:0pt; font-size:12pt" align=center><B><U>Amendments Taking Effect March 28, 2006</U></B></P>
<P style="line-height:20pt; margin:0pt; font-size:12pt" align=center><B><U>In Light of Expiration of Ex-U.S. Amplification Patent Rights</U></B></P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt; text-indent:36pt">With reference to the Amended and Restated Thermal Cycler Supplier Agreement of which this Exhibit is an integral part, the following revisions will take effect on March 28, 2006.</P>
<P style="margin:0pt"><BR></P>
<P style="line-height:17pt; margin:0pt; text-indent:36pt"><B><U>Section 2.2 (Amplification Patent Rights)</U></B> is replaced with:</P>
<P style="margin-top:0pt; margin-bottom:-12pt; text-indent:36pt">2.2</P>
<P style="line-height:17pt; margin:0pt; text-indent:72pt">[This section left blank]</P>
<P style="margin:0pt"><BR></P>
<P style="line-height:17pt; margin:0pt; text-indent:36pt" align=justify><B><U>Section 2.4 (No Implied Rights)</U></B> is replaced in its entirety by the following:</P>
<P style="margin-top:0pt; margin-bottom:-12pt; text-indent:36pt" align=justify>2.4</P>
<P style="line-height:17pt; margin:0pt; text-indent:72pt" align=justify><U>No Implied Rights.</U> &nbsp;No right, immunity, authorization or license is granted, expressly or by implication, under any patent or patent application that is not expressly included in the Amplification System Patent Rights, the Algorithm Patent Rights, the Pressing Heated Cover Patent Rights, the Automated Method Patent Rights, the Progeny Patent Rights, or the Thermal Cycling Instrument Patent Rights. &nbsp;Specifically, but without limitation, no right, immunity, authorization or license is granted, expressly or by implication, under patents and applications of Applera Corporation or Roche that cover apparatus, methods, or reagents for real-time detection (for example, U.S. Patent No. 5,928,907 or Applera's U.S. Patent No. 6,814,934 B1, Japanese Patent No. JP 3136129, European Patent No. EP 0 872 562 B1; and claims in Applera's patents and applications that claim priority of United States patent application Serial No. &nbsp;08/9
68,208 or EP 0 512 334 B1) or for homogeneous assay (for example, U.S. Patents Nos. 5,210,015, 5,487,972, 5,538,848, all related to the 5&#146; nuclease assay).</P>
<P style="margin:0pt"><BR></P>
<P style="line-height:17pt; margin:0pt; text-indent:36pt"><B><U>Section 2.7 (Thermal Cycler Supplier Obligations</U>)</B> is replaced with:</P>
<P style="margin-top:0pt; margin-bottom:-12pt; text-indent:36pt" align=justify>2.7</P>
<P style="line-height:17pt; margin:0pt; text-indent:72pt" align=justify>[This section left blank]</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:17pt; margin:0pt; text-indent:36pt" align=justify><B><U>Section 2.8 (No Implied Rights)</U></B> is replaced in its entirety by the following:</P>
<P style="margin-top:0pt; margin-bottom:-12pt; text-indent:36pt" align=justify>2.8</P>
<P style="line-height:17pt; margin:0pt; text-indent:72pt" align=justify><U>Limited Right to Sell to Other Suppliers</U><B>. &nbsp;</B>Notwithstanding the restrictions in Section 2.1 on the right to sell Thermal Cyclers and Temperature Cycling Instruments solely under Thermal Cycler Supplier's name and trademarks, Thermal Cycler Supplier may make, but not have made, and sell Thermal Cyclers and Temperature Cycling Instruments (but not Licensed Real-Time Thermal Cyclers, as such term is defined in the Real-Time Instrument Patent License Agreement) that are complete instruments to a Third Party that is itself a licensee in good standing under the Thermal Cycling Instrument Patent Rights, the Algorithm Patent Rights, Progeny Patent Rights, and the Pressing Heated Cover Patent Rights under that Third Party licensee's name and trademarks provided that Thermal Cycler Supplier gives ABI ninety (90) days prior written notification of such arrangement and provided that the Third Party licensee to whom product is sold 
under that Third </P>
<P style="margin:0pt" align=justify><BR>
<BR></P>
<P style="line-height:14pt; margin:0pt; font-size:12pt" align=center>42</P>
<P style="line-height:8.1pt; margin:0pt; font-size:9pt">103012.1</P>
<P style="margin:0pt" align=right><BR></P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt; page-break-before:always" align=right><BR></P>
<P style="margin:0pt"><BR></P>
<P style="line-height:17pt; margin:0pt" align=justify>Party licensee's name and trademarks agrees in a writing delivered thirty (30) days prior to commencement of such supply arrangement to pay royalties on the Net Sales Price of the Thermal Cyclers and Temperature Cycling Instruments as if it were the manufacturer of such Thermal Cyclers and Temperature Cycling Instruments. &nbsp;Thermal Cycler Supplier&#146;s right to supply Thermal Cyclers and Temperature Cycling Instruments to such Third Party shall terminate upon Thermal Cycler Supplier&#146;s receipt of written notification by ABI of termination of such Third Party licensee&#146;s license agreement. &nbsp;Without limiting Section 2.4 (No Implied Rights) herein, Thermal Cycler Supplier shall have no right to make Licensed Real-Time Thermal Cyclers or have made Licensed Real-Time Thermal Cyclers except as provided in the Real-Time Instrument Patent License Agreement.</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:17pt; margin:0pt; text-indent:36pt"><B><U>In Section 3.2, immediately before Section 3.3</U></B>, the final sentence is deleted (&#147;Each Thermal Cycler and Temperature Cycling Instrument for which those payments are paid shall be an Authorized Thermal Cycler and shall be so designated pursuant to Article 5 hereof.&#148;).</P>
<P style="margin:0pt"><BR></P>
<P style="line-height:17pt; margin:0pt; text-indent:36pt" align=justify><B><U>Amendments to Sections 5.1 through 5.3</U></B>.</P>
<P style="line-height:20pt; margin:0pt; text-indent:36pt; font-size:12pt" align=justify>The changes to Sections 5.1 to 5.3 below shall not be effective as to Section 4.2, which will continue to refer to unamended Sections 5.1 to 5.3. </P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:17pt; margin:0pt; text-indent:36pt" align=justify><B><U>Section 5.1 (Patent Notice)</U></B> is replaced in its entirety by the following:</P>
<P style="margin-top:0pt; margin-bottom:-12pt; text-indent:36pt" align=justify>5.1</P>
<P style="line-height:17pt; margin:0pt; text-indent:72pt" align=justify><U>Patent Notice, Thermal Cycler</U>. &nbsp;Thermal Cycler Supplier agrees to include prominently in the front of the user's manual for each Thermal Cycler licensed hereunder, and for no other Thermal Cycler or Temperature Cycling Instrument, a notice (&#147;Notice&#148;) as specified from time to time by ABI. &nbsp;Unless and until ABI reasonably instructs differently, the Notice shall be:</P>
<P style="margin:0pt; padding-left:54pt; padding-right:36pt" align=justify><B>Purchase of this instrument, Serial No. ____________, conveys a limited non-transferable immunity from suit for the purchaser&#146;s own internal research and development and for use in applied fields other than Human In Vitro Diagnostics under one or more of U.S. Patents Nos. 5,656,493, 5,333,675, 5,475,610 (claims 1, 44, 158, 160-163 and 167 only), and 6,703,236 (claims 1-7 only), or corresponding claims in their non-U.S. counterparts, owned by Applera Corporation. &nbsp;No right is conveyed expressly, by implication or by estoppel under any other patent claim, such as claims to apparatus, reagents, kits, or methods such as 5&#146; nuclease methods. &nbsp;Further information on purchasing licenses may be obtained by contacting the Director of Licensing, Applied Biosystems, 850 Lincoln Centre Drive, Foster City, California 94404, USA. &nbsp;</B></P>
<P style="margin:0pt" align=justify><BR></P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:17pt; margin:0pt; text-indent:36pt" align=justify><B><U>Section 5.2 (Different User Manuals)</U></B> is replaced in its entirety by the following</P>
<P style="margin-top:0pt; margin-bottom:-12pt; text-indent:36pt" align=justify>5.2</P>
<P style="line-height:17pt; margin:0pt; text-indent:72pt" align=justify><U>Patent Notice, Different User Manuals</U>. &nbsp;If Thermal Cycler Supplier sells base units separately from sample blocks or sample-block/heat-pump assemblies and/or with different user manuals, the Notice specified in this Section 5.2 shall be in the user manual for each base unit. &nbsp;Unless and until ABI reasonably instructs differently, the Notice shall be:</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="margin:0pt; padding-left:54pt; padding-right:36pt" align=justify><B>This base unit, Serial No. ____________, in combination with its immediately attached Bio-Rad sample block module(s), constitutes a </B></P>
<P style="margin:0pt" align=justify><BR>
<BR></P>
<P style="line-height:14pt; margin:0pt; font-size:12pt" align=center>43</P>
<P style="line-height:8.1pt; margin:0pt; font-size:9pt">103012.1</P>
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<P style="margin:0pt"><BR></P>
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<P style="margin:0pt"><BR></P>
<P style="margin:0pt; padding-left:54pt; padding-right:36pt" align=justify><B>thermal cycler whose purchase conveys a limited non-transferable immunity from suit for the purchaser&#146;s own internal research and development and for use in applied fields other than Human In Vitro Diagnostics under one or more of U.S. Patents Nos. 5,656,493, 5,333,675, 5,475,610 (claims 1, 44, 158, 160-163 and 167 only), and 6,703,236 (claims 1-7 only), or corresponding claims in their non-U.S. counterparts, owned by Applera Corporation. &nbsp;No right is conveyed expressly, by implication or by estoppel under any other patent claim, such as claims to apparatus, reagents, kits, or methods such as 5&#146; nuclease methods. &nbsp;Further information on purchasing licenses may be obtained by contacting the Director of Licensing, Applied Biosystems, 850 Lincoln Centre Drive, Foster City, California 94404, USA. &nbsp;</B></P>
<P style="margin:0pt" align=justify><BR></P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:17pt; margin:0pt; padding-left:36pt; padding-right:36pt" align=justify><B><U>Section 5.3 (Dyad Disciple Notice)</U></B> is replaced in its entirety by the following:</P>
<P style="margin-top:0pt; margin-bottom:-12pt; text-indent:36pt" align=justify>5.3</P>
<P style="line-height:17pt; margin:0pt; text-indent:72pt" align=justify><U>Patent Notice, Dyad Disciple</U>. &nbsp;If Thermal Cycler Supplier sells Dyad Disciple &quot;chassis&quot; separately from sample blocks or sample-block/heat-pump assemblies and separately from personal computers and/or Disciple Desktop software, or does not sell personal computers that may be utilized as programmable controllers, the Notice specified in this Section 5.3 shall be in the user manual for each Dyad Disciple &quot;chassis&quot;. &nbsp;Unless and until ABI reasonably instructs differently, the Notice shall be:</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="margin:0pt; padding-left:54pt; padding-right:36pt" align=justify><B>This Dyad Disciple, Serial No. <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>, in combination with its immediately attached Bio-Rad sample block module(s) and a personal computer loaded with Disciple Desktop software, constitutes a thermal cycler whose purchase conveys a limited non-transferable immunity from suit for the purchaser&#146;s own internal research and development and for use in applied fields other than Human In Vitro Diagnostics under one or more of U.S. Patents Nos. 5,656,493, 5,333,675, 5,475,610 (claims 1, 44, 158, 160-163 and 167 only), and 6,703,236 (claims 1-7 only), or corresponding claims in their non-U.S. counterparts, owned by Applera Corporation. &nbsp;No right is conveyed expressly, by implication or by estoppel under any other patent claim, such as claims to apparatus, reagents, kits, or methods such as 5&#146; nuclease methods. &nbsp;Further 
information on purchasing licenses may be obtained by contacting the Director of Licensing, Applied Biosystems, 850 Lincoln Centre Drive, Foster City, California 94404, USA.</B> &nbsp;</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:17pt; margin:0pt; padding-right:36pt; text-indent:36pt" align=justify><B><U>Section 5.4 (Labeling)</U></B> is replaced in its entirety by the following:</P>
<P style="margin-top:0pt; margin-bottom:-12pt; text-indent:36pt" align=justify>5.4</P>
<P style="line-height:17pt; margin:0pt; text-indent:72pt" align=justify><U>Product Labeling.</U> &nbsp;Thermal Cycler Supplier agrees to affix permanently and prominently to each complete Thermal Cycler that is licensed hereunder, as well as to each royalty bearing module or component thereof, the following Statement:</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="margin:0pt; padding-left:54pt; padding-right:36pt" align=justify><B>For use under one or more of U.S. Patents Nos. 5,656,493, 5,333,675, 5,475,610 (claims 1, 44, 158, 160-163 and 167 only), and 6,703,236 (claims 1-7 only). &nbsp;For applications other than Human In Vitro Diagnostics. See user's manual for further license information. &nbsp;</B></P>
<P style="margin:0pt" align=justify><BR></P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:17pt; margin:0pt; text-indent:36pt"><B><U>Section 5.5 (Labeling)</U></B> is replaced with:</P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-right:36pt; text-indent:36pt" align=justify>5.5</P>
<P style="line-height:17pt; margin:0pt; padding-right:36pt; text-indent:72pt" align=justify>[This section left blank]</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:17pt; margin:0pt; text-indent:36pt"><B><U>Section 5.7 ( No Authorization Notice)</U></B> is replaced in its entirety by the following:</P>
<P style="margin-top:0pt; margin-bottom:-12pt; text-indent:36pt">5.7</P>
<P style="line-height:17pt; margin:0pt; text-indent:72pt"><U>Patent Notice Limitations.</U> &nbsp;No Notice shall be supplied with any product other than a royalty-bearing product licensed under this Agreement.</P>
<P style="margin:0pt"><BR>
<BR></P>
<P style="line-height:14pt; margin:0pt; font-size:12pt" align=center>44</P>
<P style="line-height:8.1pt; margin:0pt; font-size:9pt">103012.1</P>
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<P style="line-height:17pt; margin:0pt; text-indent:36pt"><B><U>Section 6.3 (Termination by TCS)</U></B> is replaced in its entirety by the following:</P>
<P style="margin-top:0pt; margin-bottom:-12pt; text-indent:36pt" align=justify>6.3</P>
<P style="line-height:17pt; margin:0pt; text-indent:72pt" align=justify><U>Termination by Thermal Cycler Supplier.</U> &nbsp;Thermal Cycler Supplier may terminate this Agreement for any reason by giving written notice to ABI and ceasing to label, advertise or promote its Thermal Cyclers or Temperature Cycling Instruments (or its base units and Dyad Disciple &quot;chassis&quot; when combined with other modules) as being licensed under one or more of the Patent Rights, patents or patent applications specified in this Agreement. &nbsp;Such termination shall be effective ninety (90) days after said notice or cessation, whichever is later. &nbsp;Such termination shall not affect the obligations of Thermal Cycler Supplier, MJR, Michael Finney, John Finney or any other person or party under the Settlement Agreement, and Thermal Cycler Supplier shall comply with the injunctive provisions of the Consent Judgment immediately upon such termination.</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:17pt; margin:0pt; text-indent:36pt"><B><U>Section 7.1 (Markings)</U></B> is replaced in its entirety by the following:</P>
<P style="margin-top:0pt; margin-bottom:-12pt; text-indent:36pt" align=justify>7.1</P>
<P style="line-height:17pt; margin:0pt; text-indent:72pt" align=justify><U>Markings</U>. &nbsp;Unless and until ABI reasonably instructs differently<B>, </B>in advertisements, catalogs, brochures, sales literature and promotional literature for royalty-bearing products under this Agreement, Thermal Cycler Supplier, its Affiliates and distributors shall include prominently in type and location the appropriate patent Notice specified in Section 5.1 through 5.3.</P>
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<P style="line-height:14pt; margin:0pt; font-size:12pt" align=center>45</P>
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<P style="margin:0pt" align=right><FONT FACE="Times New Roman" COLOR=#000000><B><U>Exhibit 10.17</U></B></FONT></P>
<P style="margin:0pt"><BR></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:5pt; font-size:12pt" align=center><B><U>REAL-TIME INSTRUMENT PATENT LICENSE AGREEMENT</U></B></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:5pt; text-indent:36pt; font-size:12pt">This Agreement, is signed as of February 9, 2006 (the &#147;Signing Date&#148;) but is made effective as of April 1, 2005 (the<B> &quot;Effective Date&quot;</B>), by and between Applera Corporation, a corporation of the State of Delaware, through its Applied Biosystems Group, having an office at 850 Lincoln Centre Drive, Foster City, California 94404 (&quot;<B>ABI</B>&quot;) on the one hand, and Bio-Rad Laboratories, Inc., having an office at 1000 Alfred Nobel Drive, Hercules, California 94547 (&#147;BRL&#148;) and BRL&#146;s wholly owned subsidiary MJ Research, Inc. (&quot;MJR&quot;), having an office at 590 Lincoln Street, Waltham, MA 02451, each of ABI, BRL and MJR &nbsp;hereafter referred to as a &#147;Party&#148; and, collectively, as &#147;Parties&#148;.</P>
<P style="line-height:14pt; margin:0pt; text-indent:36pt; font-size:12pt" align=justify>WHEREAS, on April 2, 2004, the jury, in the proceeding entitled Applera Corporation, et al. v. MJ Research, Inc., Case No. 3-98-CV-1201 pending in the United States District Court for the District of Connecticut (such proceeding, the &#147;Connecticut Litigation&#148;) rendered a verdict finding, among other things, that (i) defendants induced infringement of U.S. Patent Nos. 4,683,195; 4,683,202, 4,965,188; 5,333,675; 5,656,493 and 5,475,610, and directly and contributorily infringed U.S. Patent Nos. 5,333,675; 5,656,493 and 5,475,610, and (ii) defendants&#146; inducement of infringement of U.S. Patent Nos. 4,683,195; 4,683,202, 4,965,188 and 5,656,493 was willful. &nbsp;The jury&#146;s verdict was entered on April 15, 2004; and</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin:0pt; text-indent:36pt; font-size:12pt" align=justify>WHEREAS, on or before August 18, 2004, BRL succeeded to the interests and liabilities of MJ Research and its Affiliates by acquiring MJ Geneworks, Inc., and its subsidiaries including MJ Research;</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin:0pt; text-indent:36pt; font-size:12pt" align=justify>WHEREAS, an oral decision of the Opposition Division of the EPO on December 8, 2004 held that EP 872562 is invalid and ABI has filed an appeal with the European Patent Office;</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin:0pt; text-indent:36pt; font-size:12pt" align=justify>WHEREAS, Applera is asserting infringement by BRL and its Affiliates of U.S. Patent No. 6,814,934 in litigation entitled Applera Corp. v. Bio-Rad Laboratories et al., Case No. 3:04-CV-01881 (RNC), USDC D. Conn. (the &#147;Real-Time Litigation&#148;);</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin:0pt; text-indent:36pt; font-size:12pt" align=justify>WHEREAS, the Parties wish to settle their differences in the U.S. with respect to the Real-Time Litigation; </P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin:0pt; text-indent:36pt; font-size:12pt" align=justify>WHEREAS, simultaneously with this Agreement, the Parties have settled the Connecticut Litigation pursuant to a separate settlement agreement, consent judgment (entered in the Connecticut Litigation) and the Amended and Restated Thermal Cycler Supplier Agreement entered into by the Parties and the other litigants in the Connecticut Litigation;</P>
<P style="margin:0pt" align=justify><BR>
<BR></P>
<P style="line-height:11pt; margin-top:0pt; margin-bottom:-11pt; padding-right:18pt; font-size:9pt">Legend:</P>
<P style="line-height:14pt; margin:0pt; padding-right:18pt; text-indent:213pt; font-size:12pt">1.</P>
<P style="margin:0pt">[**] This material has been omitted pursuant to a request for confidential treatment. &nbsp;The material has been filed separately with the Commission.</P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt; page-break-before:always"><BR></P>
<P style="margin:0pt"><BR></P>
<P style="line-height:14pt; margin:0pt; text-indent:36pt; font-size:12pt" align=justify>WHEREAS, under the Amended and Restated Thermal Cycler Supplier Agreement between the Parties, dated of even date herewith, Licensee has been granted certain license rights in certain fields under certain identified patents and patent applications claiming methods and apparatus for nucleic acid amplification, including the polymerase chain reaction (&quot;PCR&quot;) process, but not including real-time thermal cycling apparatus rights that are the subject of this Agreement;</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin:0pt; text-indent:36pt; font-size:12pt" align=justify>WHEREAS, in order to bring about a settlement of the Real-Time Litigation relating to Applera&#146;s real-time PCR instrument patents, the Parties have entered into that certain &#147;Real-Time Settlement Agreement&#148; including that certain Consent Judgment and Permanent Injunction (the &#147;Consent Judgment&#148;) entered into of even date herewith and its integral components including this Agreement; and</P>
<P style="margin:0pt" align=center><BR></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:5pt; text-indent:36pt; font-size:12pt">WHEREAS, pursuant to the Settlement Agreement and this Agreement, Applera is willing to grant Licensee a license in certain fields under Applera&#146;s United States Patent No. 6,814,934; and</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:5pt; text-indent:36pt; font-size:12pt">WHEREAS, Applera offered but Licensee rejected a license under Japanese Patent No. JP 3136129, European Patent <A NAME="OLE_LINK1"></A>No. EP 0 872 562 B1 counterparts of United States Patent No. 6,814,934 &nbsp;claiming thermal cycling apparatus capable of performing nucleic acid amplification and detecting that amplification in real time.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:5pt; text-indent:36pt; font-size:12pt">NOW, THEREFORE, in consideration of the recitals set forth above and the terms and conditions set forth below, the Parties agree as follows:</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:36pt; font-size:12pt"><U>1.</U></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:5pt; text-indent:54pt; font-size:12pt"><U>Definitions</U></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:5pt; text-indent:36pt; font-size:12pt">For the purpose of this Agreement the terms set forth hereinafter shall be defined as follows:</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:36pt; font-size:12pt"><B>1.1</B></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:5pt; text-indent:54pt; font-size:12pt"><B>&quot;Affiliate&quot;</B> of a Party to this Agreement shall mean an organization: a) whose voting stock is controlled or owned directly or indirectly to the extent of fifty percent (50%) or more by the Party; b) which directly or indirectly owns or controls fifty percent (50%) or more of the voting stock of the Party; c) whose majority ownership is directly or indirectly common to that of the Party; or d) defined under a), b), or c) above except the amount of said ownership is less than fifty percent (50%) but that amount is the maximum amount permitted by law and Licensee has effective control.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:5pt; text-indent:36pt; font-size:12pt">It is understood and agreed that OEM Systems KK, a Japanese corporation with offices at 84, Mekawa Maskishima-cho, Uji, Kyoto, 611-0041 Japan (&quot;OEM Systems KK&quot;) shall be deemed an Affiliate of Licensee for so long as Licensee maintains at least [**] &nbsp;ownership interest in OEM Systems KK.</P>
<P style="margin-top:0pt; margin-bottom:5pt"><BR>
<BR></P>
<P style="line-height:14pt; margin:0pt; padding-right:18pt; text-indent:213pt; font-size:12pt">2.</P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt; page-break-before:always"><BR></P>
<P style="margin:0pt"><BR></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:36pt; font-size:12pt"><B>1.2</B></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:54pt; font-size:12pt"><B>&#147;BRL Subsidiaries&#148;</B> shall mean the BRL subsidiaries, as evidenced in the United States Securities and Exchange Commission filings of BRL as of the Effective Date, whose voting stock is owned as of the Effective Date by BRL to the extent of the lesser of: (a) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[**] &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;or (b) the greatest percentage permitted under applicable law. &nbsp;For the avoidance of doubt, any such subsidiary shall cease to be a BRL Subsidiary when BRL ceases to own &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[**] &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(or the greatest amount allowed by applicable law) of the voting stock of such entity.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:36pt; font-size:12pt">1.3</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:54pt; font-size:12pt">&#147;<B>Developing Countries</B>&#148; shall mean all countries except for the following:</P>
<P style="line-height:14pt; margin:0pt; text-indent:504pt; font-size:12pt">&nbsp;&nbsp;[**]</P>
<P style="margin:0pt"><BR></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:36pt; font-size:12pt"><B>1.4</B></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:54pt; font-size:12pt"><B>&#147;Existing Product&#148;</B> shall mean the Licensed Real-Time Thermal Cyclers that as of the Effective Date were manufactured, made publicly available and identified in Licensee&#146;s then current product catalogs. &nbsp;The term &#147;Existing Product&#148; shall also include the following BRL products, sold as of the Signing Date, that are identified on BRL&#146;s catalog as: MiniOpticon Real-Time PCR Detection System, the IQ5 Real-Time PCR Detection System and the MyiQ Single-Color Real-Time PCR Detection System and the Chromo4 Four-Color Real-Time PCR System, which products are further described on Appendix B attached hereto.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:36pt; font-size:12pt"><B>1.5</B></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:54pt; font-size:12pt"><B>&quot;Fields&quot;</B> shall mean research, and all applied fields, specifically including food testing. &nbsp;The term &#147;Fields&#148; does not include &nbsp;the Human In Vitro Diagnostic Field or veterinary <I>in vitro</I> diagnostic applications.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:36pt; font-size:12pt"><B>1.6</B></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:54pt; font-size:12pt"><B>&quot;Human In Vitro Diagnostic Field&quot;</B> shall mean the <I>in vitro</I> measurement, observation, and/or determination of attributes, characteristics, diseases, traits or other conditions of a human being for the medical management of a human being. &nbsp;</P>
<P style="margin-top:0pt; margin-bottom:12pt"><BR></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; font-size:12pt" align=center>[**]</P>
<P style="margin-top:0pt; margin-bottom:12pt"><BR></P>
<P style="margin-top:0pt; margin-bottom:12pt"><BR></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:36pt; font-size:12pt"><B>1.7</B></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:54pt; font-size:12pt"><B>&quot;Licensed Real-Time Thermal Cycler&quot;</B> shall mean an instrument, whether sold as an integrated product or as one or more components or modules, the manufacture, importation, offer for sale, sale or use of which would, but for the rights granted under this Agreement, infringe at least one Valid Claim of the Real-Time Apparatus Patent Rights. &nbsp;For the purposes of the license set forth in Article 2 of this Agreement, Licensed Real-Time Thermal Cyclers are limited to instruments that are capable of thermally cycling &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[**] &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp
;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
<P style="margin-top:0pt; margin-bottom:12pt"><BR>
<BR></P>
<P style="line-height:14pt; margin:0pt; padding-right:18pt; text-indent:213pt; font-size:12pt">3.</P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt; page-break-before:always"><BR></P>
<P style="margin:0pt"><BR></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; font-size:12pt">&nbsp;&nbsp;The foregoing shall not preclude the networking of multiple Licensed Real-Time Thermal Cyclers.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:36pt; font-size:12pt"><B>1.8</B></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:54pt; font-size:12pt"><B>&#147;Licensee&#148;</B> shall mean MJR, BRL and BRL Subsidiaries.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:36pt; font-size:12pt" align=justify><B>1.9</B></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:5pt; text-indent:54pt; font-size:12pt" align=justify><B>&quot;Net Sales Price&quot;</B> shall mean</P>
<P style="margin-top:0pt; margin-bottom:5pt"><BR></P>
<P style="margin-top:0pt; margin-bottom:5pt"><BR></P>
<P style="margin-top:0pt; margin-bottom:5pt"><BR></P>
<P style="margin-top:0pt; margin-bottom:5pt"><BR></P>
<P style="margin-top:0pt; margin-bottom:5pt"><BR></P>
<P style="margin-top:0pt; margin-bottom:5pt"><BR></P>
<P style="margin-top:0pt; margin-bottom:5pt"><BR></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:5pt; text-indent:36pt; font-size:12pt" align=center>[**]</P>
<P style="margin-top:0pt; margin-bottom:5pt"><BR></P>
<P style="margin-top:0pt; margin-bottom:5pt"><BR></P>
<P style="margin-top:0pt; margin-bottom:5pt"><BR></P>
<P style="margin-top:0pt; margin-bottom:5pt"><BR></P>
<P style="margin-top:0pt; margin-bottom:5pt"><BR></P>
<P style="margin-top:0pt; margin-bottom:5pt"><BR></P>
<P style="margin-top:0pt; margin-bottom:5pt"><BR></P>
<P style="margin-top:0pt; margin-bottom:5pt"><BR></P>
<P style="margin-top:0pt; margin-bottom:5pt"><BR></P>
<P style="margin-top:0pt; margin-bottom:5pt"><BR></P>
<P style="margin-top:0pt; margin-bottom:5pt"><BR></P>
<P style="margin-top:0pt; margin-bottom:5pt"><BR>
<BR></P>
<P style="line-height:14pt; margin:0pt; padding-right:18pt; text-indent:213pt; font-size:12pt">4.</P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt; page-break-before:always"><BR></P>
<P style="margin:0pt"><BR></P>
<P style="margin-top:0pt; margin-bottom:5pt"><BR></P>
<P style="margin-top:0pt; margin-bottom:5pt"><BR></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:5pt; text-indent:36pt; font-size:12pt">&nbsp;</P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt"><BR></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:36pt; font-size:12pt"><B>1.10</B></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:72pt; font-size:12pt"><B>&#147;Optics Improvement Patents&#148;</B> shall mean any U.S. patents claiming priority to (i) U.S. provisional patent application no. 60/085,765, filed May 16, 1998, and (ii) U.S. provisional patent application no. 60/092,784, filed Jul. 14, 1998 (including United States Patent No. 6,818,437), and all foreign counterparts (including, without limitation, EP 1 078 245, EP 1 619 491, JP 2005-274579, CN 1 664 562, CN 1 201 016, CA 2,328,609, AU 759 974) of any of the foregoing and any other patents owned or controlled by Applera as of the Signing Date that claim optical elements of an apparatus configured for real-time detection of polymerase chain reaction (PCR) amplification, or methods of using such optical elements of an apparatus for real-time detection of polymerase chain reaction (PCR) amplification. &nbsp;The term &#147;Optics Improvement Patents&#148; expressly excludes: (i) the Category I Real-Time Ri
ghts, EP 872562 and all applications and/or patents claiming priority thereto, (ii) Japanese Patent No. 3,136,129, (iii) any patents and patent applications that cover real-time chemistry, reagents, reagent-containing kits, reagent-containing systems, and methods employing particular real-time chemistry, reagents, reagent-containing kits, reagent-containing systems, that instrument users, including Licensee, may wish or need for the performance of amplification and detection methods, including without limitation real-time detection methods, utilizing Licensed Real-Time Thermal Cyclers.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:36pt; font-size:12pt"><B>1.11</B></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:72pt; font-size:12pt"><B>&quot;Real-Time Apparatus Patent Rights&quot;</B> shall mean (a) Applera's United States Patent No. 6,814,934 B1; (b) Applera's other U.S. patents and applications that claim priority to United States patent application Serial No. &nbsp;07/695,201; (c) and any Canadian counterparts of any of the foregoing (the patents and patent applications in part (a) through (c) above of this Section 1.11 (collectively, &#147;Category I Real-Time Rights&#148;). &nbsp;Without limiting the foregoing, the term &#147;Real-Time Apparatus Patent Rights&#148; shall include any Valid Claims of other patents or patent applications (including, without limitation, the Optics Improvements Patents) owned by Applera as of the Signing Date (or controlled by Applera, as of the Signing Date, with the right to grant sublicenses) that (but for the license herein) are infringed by Licensee&#146;s manufacture and selling within the scope of th
e license granted in Section 2.1 of Existing Products. &nbsp;Notwithstanding anything herein to the contrary, the term &#147;Real-Time Apparatus Patent Rights&#148; expressly excludes: (i) EP 872562 and all applications and/or patents claiming priority thereto, (ii) Japanese Patent No. 3,136,129, (iii) any patents and patent applications that cover real-time chemistry, reagents, reagent-containing kits, reagent-containing systems, and methods employing particular real-time chemistry, reagents, reagent-containing kits, </P>
<P style="margin-top:0pt; margin-bottom:12pt"><BR>
<BR></P>
<P style="line-height:14pt; margin:0pt; padding-right:18pt; text-indent:213pt; font-size:12pt">5.</P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt; page-break-before:always"><BR></P>
<P style="margin:0pt"><BR></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; font-size:12pt">reagent-containing systems, that instrument users, including Licensee, may wish or need for the performance of amplification and detection methods, including without limitation real-time detection methods, utilizing Licensed Real-Time Thermal Cyclers; and (iv) any patents and patent applications licensed under the Amended and Restated Thermal Cycler Supplier Agreement. &nbsp;The Real-Time Apparatus Patent Rights other than the Category I Real-Time Rights are referred to collectively as the &#147;Added Real-Time Rights&#148;.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:36pt; font-size:12pt"><B>1.12</B></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:72pt; font-size:12pt"><B>&quot;Temperature Cycling Instrument&quot;</B> shall mean an instrument, whether in single or multiple modules, that includes a Thermal Cycler and additional structure for performing one or more other functions.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:36pt; font-size:12pt"><B>1.13</B></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:72pt; font-size:12pt"><B>&quot;Thermal Cycler&quot; </B>shall mean an instrument, whether in single or multiple modules, that is capable in itself of automatically cycling samples in the PCR process.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:36pt; font-size:12pt"><B>1.14</B></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:72pt; font-size:12pt"><B>&quot;Territory&quot;</B> </P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; font-size:12pt" align=center>[**]</P>
<P style="margin-top:0pt; margin-bottom:12pt"><BR></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:36pt; font-size:12pt"><B>1.15</B></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:72pt; font-size:12pt"><B>&quot;Third Party&quot;</B> shall mean a Party other than one of the Parties to this Agreement.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:36pt; font-size:12pt"><B>1.16</B></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:72pt; font-size:12pt"><B>&quot;Valid Claim&quot;</B> shall mean a claim of an unexpired patent [**] which has not been held invalid or unenforceable by a decision of a court, Patent Office, or administrative tribunal from which no appeal is available.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:36pt; font-size:12pt"><B><U>2.</U></B></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:54pt; font-size:12pt"><B><U>Grant</U></B></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:36pt; font-size:12pt">2.1</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:5pt; text-indent:54pt; font-size:12pt">Upon the terms and subject to the exceptions and conditions of this Agreement, ABI grants to Licensee under the Real-Time Apparatus Patent Rights a personal, non-transferable, royalty-bearing, non-exclusive license in the Fields and in the Territory, to make, but not have made, to use and to import, Licensed Real-Time Thermal Cyclers, and to offer to sell, sell and distribute the same solely to end users, and solely under Licensee's name and trademarks.</P>
<P style="margin-top:0pt; margin-bottom:5pt"><BR></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:5pt; text-indent:36pt; font-size:12pt" align=center>[**]</P>
<P style="margin-top:0pt; margin-bottom:5pt"><BR></P>
<P style="margin-top:0pt; margin-bottom:5pt"><BR></P>
<P style="margin-top:0pt; margin-bottom:5pt"><BR>
<BR></P>
<P style="line-height:14pt; margin:0pt; padding-right:18pt; text-indent:213pt; font-size:12pt">6.</P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt; page-break-before:always"><BR></P>
<P style="margin:0pt"><BR></P>
<P style="margin-top:0pt; margin-bottom:5pt"><BR></P>
<P style="margin-top:0pt; margin-bottom:5pt"><BR></P>
<P style="margin-top:0pt; margin-bottom:5pt"><BR></P>
<P style="margin-top:0pt; margin-bottom:5pt"><BR></P>
<P style="margin:0pt"><BR></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:36pt; font-size:12pt">2.2</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:54pt; font-size:12pt">Upon the terms and subject to the exceptions and conditions of this Agreement, ABI grants to Licensee under the Real-Time Apparatus Patent Rights a personal, non-transferable, royalty-bearing, non-exclusive license in the Fields and in the Territory, to make, but not have made, to use and to import add-on and substitute components, modules and software for Licensed Real-Time Thermal Cyclers, and to offer, sell and distribute the same solely to end-user Third-Party owners of Licensed Real-Time Thermal Cyclers purchased from Licensee.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:36pt; font-size:12pt">2.3</P>
<P style="margin-top:0pt; margin-bottom:12pt"><BR></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; font-size:12pt" align=center>[**]</P>
<P style="margin-top:0pt; margin-bottom:12pt"><BR></P>
<P style="margin-top:0pt; margin-bottom:12pt"><BR></P>
<P style="margin-top:0pt; margin-bottom:12pt"><BR></P>
<P style="margin-top:0pt; margin-bottom:12pt"><BR></P>
<P style="margin-top:0pt; margin-bottom:12pt"><BR></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:36pt; font-size:12pt">2.4</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:54pt; font-size:12pt">The grants under Sections 2.1 and 2.2 include no right, immunity, authorization or license, either expressly or by implication, under any patent or patent application that is not included in the Real-Time Apparatus Patent Rights, such as, by way of example but not of limitation, any patent claim or patent application claim to a real-time process or method.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:36pt; font-size:12pt">2.5</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:54pt; font-size:12pt">Rights granted to Licensee by this Agreement are personal to Licensee alone. &nbsp;Licensee shall have no right to sublicense, assign or otherwise transfer or share its rights hereunder. &nbsp;Without limiting other acts or omissions constituting material breach hereof or ABI&#146;s remedies or causes of action for the same: (i) any use, sale or promotion by Licensee of Licensed Real-Time Thermal Cyclers (including, without limitation, using or promoting the use of Licensed Real-Time Thermal Cyclers with assays or reagents in </P>
<P style="margin-top:0pt; margin-bottom:12pt"><BR>
<BR></P>
<P style="line-height:14pt; margin:0pt; padding-right:18pt; text-indent:213pt; font-size:12pt">7.</P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt; page-break-before:always"><BR></P>
<P style="margin:0pt"><BR></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; font-size:12pt">the Human In Vitro Diagnostic Field) in the Human In Vitro Diagnostic Field shall be deemed a material breach of this agreement; and (ii) any breach by the Licensee of Article 2 (including, without limitation, by Licensee exceeding the scope of the license herein) shall be deemed a material breach by Licensee of this Agreement.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:36pt; font-size:12pt">2.6</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:54pt; font-size:12pt">Notwithstanding the prohibition of Section 2.5, Licensee's rights to sell to end users under the grants of Sections 2.1 and 2.2 include the right to sell through Affiliates (so long as Licensee reports and pays under this Agreement on their behalf) and through distributors of Licensee and such Affiliates, as well as directly; provided that: (i) as for distributors being used as of the Effective Date to distribute Licensed Real-Time Thermal Cyclers, Licensee inform such distributors within sixty (60) days of Licensee&#146;s field and license restrictions under this Agreement and further inform such distributors that any sale by such distributors that exceeds the scope of the license hereunder will result in such distributors no longer having the right to distribute Licensed Real-Time Thermal Cyclers; (ii) as for new distribution agreements (whether renewals or new agreements with new distributors) such distributo
rs contractually agree to abide by the terms and conditions of this Agreement; and (iii) Affiliates contractually agree to abide by the terms and conditions of this Agreement.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:36pt; font-size:12pt">2.7</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:54pt; font-size:12pt">ABI covenants not to sue Licensee under any Valid Claims of patents issuing anywhere in the world claiming priority from United States patent serial number 08/113,168 or 08/266,061.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:36pt; font-size:12pt"><B><U>3.</U></B></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:54pt; font-size:12pt"><B><U>Fees, Royalties, Records and Reports</U></B></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:36pt; font-size:12pt">3.1</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:54pt; font-size:12pt">For licenses and rights granted under Article 2, Licensee shall pay to ABI:</P>
<P style="line-height:14pt; margin:0pt; padding-left:108pt; text-indent:-36pt; font-size:12pt">(a)</P>
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<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:108pt; text-indent:-36pt; font-size:12pt">(b)</P>
<P style="line-height:14pt; margin:0pt; padding-left:108pt; font-size:12pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
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<P style="line-height:14pt; margin:0pt; padding-left:72pt; font-size:12pt" align=center>[**]</P>
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<P style="line-height:14pt; margin:0pt; padding-right:18pt; text-indent:213pt; font-size:12pt">8.</P>
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<P style="line-height:14pt; margin:0pt; font-size:12pt" align=center>[**]</P>
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<P style="line-height:14pt; margin:0pt; font-size:12pt" align=center>[**]</P>
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<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:108pt; text-indent:-36pt; font-size:12pt">(c)</P>
<P style="line-height:14pt; margin:0pt; padding-left:108pt; font-size:12pt">for each Licensed Real-Time Thermal Cycler, including, without limitation, all modules and components, including software and computers and for each add-on or substitute component, module or software (excluding software upgrades valued or sold at US$ 300 or less) and associated warranty sold, delivered, invoiced or otherwise provided by any of Licensee, its Affiliates or distributors after the Effective Date, &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[**] &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
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<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:108pt; text-indent:-36pt; font-size:12pt">(d)</P>
<P style="line-height:14pt; margin:0pt; padding-left:108pt; font-size:12pt">for each repair or replacement component of a Licensed Real-Time Thermal Cycler, including any replacement modules and components, including software and computers, sold, delivered, invoiced or otherwise transferred by any of Licensee, its Affiliates or distributors after the Effective Date, &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[**] &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;, except that parts supplied free of charge under </P>
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<P style="line-height:14pt; margin:0pt; padding-right:18pt; text-indent:213pt; font-size:12pt">9.</P>
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<P style="line-height:14pt; margin:0pt; padding-left:108pt; font-size:12pt">warranty, or repair, not amounting to reconstruction, of a Licensed Real-Time Thermal Cycler for which a royalty already has been paid under this Agreement, including replacement of components by identical components shall not be subject to royalty hereunder unless the component itself would directly or contributorily infringe the Real-Time Apparatus Patent Rights;</P>
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<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:108pt; text-indent:-36pt; font-size:12pt">(e)</P>
<P style="line-height:14pt; margin:0pt; padding-left:108pt; font-size:12pt">for each detector module or combination of detector modules which is less than a complete Licensed Real-Time Thermal Cycler, sold, delivered, invoiced or otherwise transferred by any of Licensee, an Affiliate or distributor after the Effective Date,</P>
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<P style="line-height:14pt; margin:0pt; padding-left:72pt; font-size:12pt" align=center>[**]</P>
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<P style="line-height:14pt; margin:0pt; padding-left:72pt; text-indent:36pt; font-size:12pt">; and</P>
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<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:108pt; text-indent:-36pt; font-size:12pt">(f)</P>
<P style="line-height:14pt; margin:0pt; padding-left:108pt; font-size:12pt">for each Licensed Real-Time Thermal Cycler placed as a no-charge &quot;loaner&quot; or demonstration instrument, wherein the quantity of such loaner or demonstration instruments placed in a given year does not exceed</P>
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<P style="line-height:14pt; margin:0pt; padding-left:72pt; font-size:12pt" align=center>[**]</P>
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<P style="line-height:14pt; margin:0pt; padding-left:108pt; font-size:12pt">&nbsp;&nbsp;For any quantity of loaners or demonstration instruments above </P>
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<P style="line-height:14pt; margin:0pt; padding-left:36pt; text-indent:36pt; font-size:12pt" align=center>[**]</P>
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<P style="line-height:14pt; margin:0pt; padding-left:108pt; font-size:12pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;However, if any module or component is subsequently added or substituted, payment under subsections 3.1(d) and 3.1(e) shall be made for such module or component.</P>
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<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:36pt; font-size:12pt">3.2</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:54pt; font-size:12pt">So long as Licensee remains a licensee under its Amended and Restated Thermal Cycler Supplier Agreement (<B>&quot;TCSA&quot;</B>) with ABI, for each royalty-bearing item under Section 3.1 for which Licensee pays, <I>inter alia</I>, a percentage of the Net Sales Price under its TCSA, </P>
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<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; font-size:12pt" align=center>[**]</P>
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<P style="line-height:14pt; margin:0pt; padding-right:18pt; text-indent:213pt; font-size:12pt">10.</P>
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<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:36pt; font-size:12pt">3.3</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:54pt; font-size:12pt">All amounts payable hereunder shall be payable in United States dollars. &nbsp;Sales in other countries shall be converted to U.S. dollars based on the New York rate of exchange as quoted in the Wall Street Journal for the last business day of the applicable month in which such payment obligation accrued. &nbsp;If not so published, the Parties may agree in writing on a substitute publication. &nbsp;In the event there is no comparable publication, the applicable rate for such date by the appropriate governmental agency in such country shall apply.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:36pt; font-size:12pt">3.4</P>
<P style="line-height:14pt; margin:0pt; text-indent:54pt; font-size:12pt">Licensee shall keep, and shall require its pertinent Affiliates and distributors to keep, full, true and accurate records containing all particulars necessary to show the amount payable to ABI under this Agreement and to demonstrate Licensee&#146;s (and its Affiliates and distributors&#146;) compliance with its obligations under this Agreement. &nbsp;Licensee shall keep records </P>
<P style="line-height:14pt; margin:0pt; font-size:12pt" align=center>[**]</P>
<P style="line-height:14pt; margin:0pt; font-size:12pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;under the second paragraph of Section 2.1, which records shall be supplied to ABI as part of the quarterly royalty report to be delivered in accordance with Section 3.5 herein. &nbsp;Such records and the supporting data shall be open at all reasonable times, &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[**] &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;t
he end of the calendar year to which they pertain (and access shall not be denied thereafter, if reasonably available), to the inspection of an independent certified public accounting firm retained by ABI. &nbsp;Such accounting firm will hold such records and supporting data in strict confidence, except as necessary to consult with and report to ABI and Licensee on Licensee's compliance with this Agreement. &nbsp;If in dispute, such records shall be kept until the later of &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[**] &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;or the date the dispute is settled. &nbsp;Inspection shall be at ABI's expense, unless the inspector concludes that the amount payable that is stated in a report is understated by &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;[**]</P>
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<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:36pt; font-size:12pt">3.5</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:54pt; font-size:12pt">Licensee shall within &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[**] &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;after the first of January, April, July and October deliver (by U.S. mail or nationally recognized courier service with a text copy in excel format (or other reasonable format requested in writing by ABI) of such report transmitted by email to royalties@appliedbiosystems.com) to ABI a true and accurate royalty accounting report. &nbsp;This report shall be on a country-by-country basis and shall give such particulars of the business conducted by Licensee in each country during the preceding three (3) calendar months as are pertinent to accounting under this Agreement, and shall be in accordance with, and include all information specified in, the royalty report form attached hereto as Appendix A, as may be amended by ABI in writing from tim
e to time. &nbsp;The royalty accounting report for the period spanning April 1, 2005 through September 30, 2005 shall be delivered by Licensee to ABI within thirty (30) days of the Signing Date. &nbsp;The accounting report for the period spanning October 1, 2005 through December 31, 2005 shall be delivered by Licensee to ABI within thirty (30) days of the Signing Date.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:5pt; text-indent:36pt; font-size:12pt">The correctness and completeness of each report shall be attested to in writing by the responsible financial officer of Licensee or by Licensee's external auditor.</P>
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<P style="line-height:14pt; margin:0pt; padding-right:18pt; text-indent:213pt; font-size:12pt">11.</P>
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<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:36pt; font-size:12pt">3.6</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:5pt; text-indent:54pt; font-size:12pt">Simultaneously with the delivery of each royalty account report (as per the schedule set forth in Section 3.5), Licensee shall pay to ABI the monies then due under this Agreement for the period covered by the report. &nbsp;Each report and payment shall be sent by the due date to the following address:</P>
<P style="line-height:14pt; margin:0pt; text-indent:36pt; font-size:12pt">Applied Biosystems</P>
<P style="line-height:14pt; margin:0pt; text-indent:36pt; font-size:12pt">850 Lincoln Centre Drive</P>
<P style="line-height:14pt; margin:0pt; text-indent:36pt; font-size:12pt">Foster City, California, 94404 U.S.A.</P>
<P style="line-height:14pt; margin:0pt; text-indent:36pt; font-size:12pt">Attention: Director of Licensing </P>
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<P style="line-height:14pt; margin-top:0pt; margin-bottom:5pt; font-size:12pt">or to any address that ABI may advise in writing ninety (90) days prior to its becoming effective.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:36pt; font-size:12pt">3.7</P>
<P style="line-height:14pt; margin:0pt; text-indent:54pt; font-size:12pt">If Licensee shall fail to pay any amount owing under this Agreement by the due date, the amount owed shall bear interest at </P>
<P style="line-height:14pt; margin:0pt; font-size:12pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[**] &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;from the due date until paid, provided, however, that if this interest rate is held to be unenforceable for any reason, the interest rate shall be the maximum rate allowed by law at the time the payment is due.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:36pt; font-size:12pt">3.8</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:54pt; font-size:12pt">Failure of Licensee to pay any amount specified under this Agreement within thirty (30) days after the due date will allow ABI to automatically terminate this Agreement under Section 6.6.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:36pt; font-size:12pt">3.9</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:54pt; font-size:12pt">Without limiting the foregoing, Licensee acknowledges and agrees that (i) instruments defined as &#147;Accused Instruments&#148; in the Consent Judgment are covered (i.e., but for the license granted pursuant to Article 2, the making, having made, using, selling, offer for sale or importing of such Accused Products would infringe the Real Time Apparatus Patent Rights) by the Real-Time Apparatus Patent Rights licensed hereunder and are subject to the royalty payment obligations applicable to Licensed Real-Time Thermal Cyclers set forth in Article 3; and (ii) any instrument, whether in single or multiple modules that includes a Thermal Cycler or Temperature Cycling Instrument and a detector which can be used to detect a fluorescence optical signal while the Thermal Cycler is in operation and without opening the vessel(s) in which amplification is occurring is also covered by the Real-Time Apparatus Patent Rights (
Accused Instruments and such other instruments identified in part (ii) above, collectively, &#147;Covered Products&#148;). </P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:36pt; font-size:12pt">3.10</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:72pt; font-size:12pt">Licensee acknowledges and agrees that the license herein reflects a Territory-wide (i.e., across all countries in the Territory) averaging of royalty obligations. &nbsp;In particular, rather than a higher royalty rate that is pegged to Valid Claims of licensed patents and patent application on a jurisdiction by jurisdiction basis, and also to avoid the costs and administrative burden of reporting and calculating royalties on a jurisdiction by jurisdiction basis, Licensee has voluntarily opted for the lower royalty rate reflected in this Article 3 whereby royalties are due on the Net Sales Price of products covered by </P>
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<P style="line-height:14pt; margin:0pt; padding-right:18pt; text-indent:213pt; font-size:12pt">12.</P>
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<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; font-size:12pt">Valid Claims regardless of where in the Territory such products are made, used or sold so long as the making, having made, using, selling, offering for sale or importation of such product is covered in any one jurisdiction in the Territory by at least one Valid Claim of the patents and patent applications licensed pursuant to Article 2 herein</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:36pt; font-size:12pt"><B><U>4.</U></B></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:54pt; font-size:12pt"><B><U>Past Sales and Activities</U></B></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:36pt; font-size:12pt">4.1</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:54pt; font-size:12pt">Subject to Licensee&#146;s compliance with its representations, warranties and covenants (including, without limitation, fulfillment of payment obligations) in this Agreement and in the Settlement Agreement, and Licensee&#146;s payment due upon the Signing Date of &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[**] &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;, all instruments that infringe the Category I Real-Time Rights (whether or not they also infringe any of the Added Real-Time Rights) that would have qualified (had they been sold after the Effective Date) as Licensed Real-
Time Thermal Cyclers, including all modules and components thereof, that were manufactured, delivered, invoiced or otherwise transferred by Licensee solely under its own name and trademarks to end user customers (directly or through distributors) prior to the Effective Date shall be considered Licensed Real-Time Thermal Cyclers; and all earlier use of such instruments by customers, direct or indirect, of Licensee shall be deemed to have been use of Licensed Real-Time Thermal Cyclers subject to Article 2 and Article 4 herein. &nbsp;</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:36pt; font-size:12pt">4.2</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:54pt; font-size:12pt">Licensee at its cost shall use reasonable efforts to send to the original end-user customers of the Licensed Real-Time Thermal Cyclers that are the subject of Section 4.1, license notices in accord with Section 5.1 with a means reasonably satisfactory to ABI to relate each such notice to the appropriate Licensed Real-Time Thermal Cycler. &nbsp;Such notices shall limit the end-user&#146;s rights to use within the Fields in a manner consistent with this Agreement. Any such Licensed Real-Time Thermal Cycler not having such a license notice within one hundred and eighty (180) days after the Effective Date of this Agreement shall cease to be a Licensed Real-Time Thermal Cycler. &nbsp;Any of Licensee&#146;s costs of enforcing such field limitations shall be borne by Licensee.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:36pt; font-size:12pt"><B><U>5.</U></B></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:54pt; font-size:12pt"><B><U>License Notice</U></B></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:36pt; font-size:12pt">5.1</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:5pt; text-indent:54pt; font-size:12pt">Licensee agrees to include prominently in the front of the user's manual, and affix a corresponding label statement to the corresponding product, for each Licensed Real-Time Thermal Cycler sold worldwide, and for no other Thermal Cycler or Temperature Cycling Instrument, a Notice as specified from time to time by Applera. &nbsp;Unless and until Applera reasonably instructs differently, the Notice shall be: &nbsp;</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:36pt; font-size:12pt"><B>(a) </B></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:5pt; text-indent:72pt; font-size:12pt">For a Licensed Real-Time Thermal Cycler sold as an integrated system containing at least a real time detector and a Thermal Cycler:</P>
<P style="line-height:14pt; margin:0pt; padding-left:36pt; padding-right:45.35pt; font-size:12pt"><B><U>NOTICE TO PURCHASER</U></B></P>
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<P style="line-height:14pt; margin:0pt; padding-right:18pt; text-indent:213pt; font-size:12pt">13.</P>
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<P style="line-height:14pt; margin:0pt; padding-left:36pt; padding-right:36pt; font-size:12pt" align=justify><B>This real-time thermal cycler is licensed under U.S. Patent No. 6,814,934 and corresponding claims in any counterpart Canadian patent thereof owned by Applera Corporation, solely in research and all other applied fields except human or veterinary in vitro diagnostics. &nbsp;No rights are conveyed expressly, by implication or estoppel to any patents on real-time methods, including but not limited to 5' nuclease assays, or to any patent claiming a reagent or kit.</B></P>
<P style="margin:0pt"><BR></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:36pt; font-size:12pt">(b) </P>
<P style="line-height:14pt; margin:0pt; text-indent:72pt; font-size:12pt">For a detection module that is capable of being combined with, but is sold separately from, a Thermal Cycler or Temperature Cycling Instrument: to form a Licensed Real-Time Thermal Cycler:</P>
<P style="margin:0pt"><BR></P>
<P style="line-height:14pt; margin:0pt; padding-left:36pt; font-size:12pt"><B><U>NOTICE TO PURCHASER</U></B></P>
<P style="margin:0pt"><BR></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:6pt; padding-left:36pt; font-size:12pt"><B>This [Bio-Rad product name ] detection module, when combined with a [Bio-Rad product name] thermal cycler for which the applicable real-time thermal cycler royalty fee has been paid, constitutes a real-time thermal cycler licensed under U.S. Patent No. 6,814,934 and corresponding claims in any Canadian counterpart patent thereof owned by Applera Corporation, for use solely in research and all applied fields except human and veterinary in vitro diagnostics. &nbsp;These license rights are effective only if this detection module is combined with a Bio-Rad thermal cycler for which the applicable real-time thermal cycler royalty fee has been paid and not with any other thermal cycler. &nbsp;No rights are conveyed expressly, by implication or estoppel to any patents on real-time methods, including but not limited to 5' nuclease assays, or to any patent claiming a reagent or kit. &nbsp;For further information on pur
chasing license rights, contact the Director of Licensing at Applied Biosystems, 850 Lincoln Centre Drive, Foster City, California, 94404, USA. &nbsp;</B></P>
<P style="margin:0pt"><BR></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:36pt; font-size:12pt">(c) </P>
<P style="line-height:14pt; margin:0pt; text-indent:72pt; font-size:12pt">For a Thermal Cycler module (i.e., for which applicable royalties under this Agreement have been paid) that is capable of being combined with, but is sold separately from, a detection module to form a Licensed Real-Time Thermal Cycler:</P>
<P style="margin:0pt"><BR></P>
<P style="line-height:14pt; margin:0pt; padding-left:36pt; padding-right:36pt; font-size:12pt" align=justify><B><U>NOTICE TO PURCHASER</U></B> </P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin:0pt; padding-left:36pt; padding-right:36pt; font-size:12pt" align=justify><B>This [Bio-Rad product name ] thermal cycler, when combined with a [Bio-Rad product name] detection module bearing a valid label license under U.S. Patent No. 6,814,934, constitutes a real-time thermal cycler licensed under U.S. Patent No. 6,814,934 and corresponding claims in any Canadian counterpart patent thereof owned by Applera Corporation, for use solely in research and all applied fields except human and veterinary in vitro diagnostics, provided that the real-time thermal cycler royalty fee that is </B></P>
<P style="margin:0pt" align=justify><BR>
<BR></P>
<P style="line-height:14pt; margin:0pt; padding-right:18pt; text-indent:213pt; font-size:12pt">14.</P>
<P style="margin:0pt"><BR></P>
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<P style="margin:0pt; page-break-before:always"><BR></P>
<P style="margin:0pt"><BR></P>
<P style="line-height:14pt; margin:0pt; padding-left:36pt; padding-right:36pt; font-size:12pt" align=justify><B>applicable to said thermal cycler has been paid. &nbsp;No rights are conveyed expressly, by implication or estoppel to any patents on real-time methods, including but not limited to 5' nuclease assays, or to any patent claiming a reagent or kit. &nbsp;For further information on purchasing license rights, contact the Director of Licensing at Applied Biosystems, 850 Lincoln Centre Drive, Foster City, California, 94404, USA. &nbsp;</B></P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:36pt; font-size:12pt"><B><U>6.</U></B></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:54pt; font-size:12pt"><B><U>Term and Termination</U></B></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:36pt; font-size:12pt">6.1</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:54pt; font-size:12pt">This Agreement (and the licenses and royalty obligations hereunder), unless sooner terminated pursuant to Article 6 herein, shall continue until the date of expiration of the last-to-expire of the patents under which rights are granted in this Agreement. &nbsp;</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:36pt; font-size:12pt">6.2</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:54pt; font-size:12pt">Licensee may terminate this Agreement for any reason by giving written notice to ABI and ceasing to label, advertise or promote any instruments as Licensed Real-Time Thermal Cyclers. &nbsp;Such termination shall be effective ninety (90) days after said notice or cessation, whichever is later. &nbsp;</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:36pt; font-size:12pt">6.3</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:54pt; font-size:12pt">INTENTIONALLY LEFT BLANK. </P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:36pt; font-size:12pt">6.4</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:54pt; font-size:12pt">This Agreement shall terminate upon (i) an adjudication of Licensee as bankrupt or insolvent, or Licensee's admission in writing of its inability to pay its obligations as they mature; (ii) an assignment by Licensee for the benefit of creditors; (iii) the appointment of, or Licensee's applying for or consenting to the appointment of, a receiver, trustee or similar officer for a substantial part of its property; or (iv) the institution of or any act of Licensee instituting any bankruptcy, insolvency arrangement, or similar proceeding. &nbsp;This Agreement shall terminate immediately and automatically without any requirement of notice or any other action by ABI upon the occurrence of any of the following unless cured by Licensee within a reasonable period following such process: &nbsp;the issuance or levy of any judgment, writ, warrant or attachment or execution or similar process against a substantial part of the
 property of Licensee. &nbsp;A termination pursuant to this Section 6.4 shall be deemed to have occurred immediately prior to the events set forth in this Section triggering such termination.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:36pt; font-size:12pt">6.5</P>
<P style="line-height:14pt; margin:0pt; text-indent:54pt; font-size:12pt">Subject to Section 9.1, ABI may terminate this Agreement immediately on notice upon any change in the ownership or control of Licensee. &nbsp;For such purposes, a &quot;change in ownership or control&quot; shall mean that, 50% or more of the voting stock of Licensee becomes subject to the ownership or control of a person or entity, other than a beneficiary under a last will and testament, or any related group of persons or entities acting in concert, which person(s) or entity(ies) did not own or control such portion of voting stock on the Effective Date hereof. &nbsp;Subject to Section 9.1, ABI shall have the same right to terminate upon any transfer of 50% or more of the assets of Licensee. &nbsp;Without limiting ABI&#146;s foregoing right to terminate, (i) MJR shall remain licensed </P>
<P style="margin:0pt"><BR>
<BR></P>
<P style="line-height:14pt; margin:0pt; padding-right:18pt; text-indent:213pt; font-size:12pt">15.</P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt; page-break-before:always"><BR></P>
<P style="margin:0pt"><BR></P>
<P style="line-height:14pt; margin:0pt; font-size:12pt">hereunder only so long as MJR remains a wholly (i.e., one hundred percent (100%)) owned subsidiary of BRL; and (ii) an entity that is or was a BRL Subsidiary (as defined in Section 1.2) shall remain a BRL Subsidiary only for so long as BRL owns ninety percent (90%), or the greatest amount allowed under applicable law, of the voting stock of such entity. </P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:36pt; font-size:12pt">6.6</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:54pt; font-size:12pt">In the event Licensee (whether one or more of BRL, MJR, or a BRL Subsidiary) materially breach this Agreement or the Settlement Agreement, then without limiting ABI&#146;s legal or equitable remedies, this Agreement shall terminate automatically thirty (30) days after ABI provides notice thereof to Licensee provided that Licensee fails to cure such material breach within such thirty (30) day period. &nbsp;In Developing Countries, ceasing sales, within the foregoing cure period, to a distributor exceeding the scope of the license herein, shall constitute a cure of a breach due to such acts by such distributor. &nbsp;Any failure by Licensee to perform any payment obligation as and when due under this Agreement shall be deemed a material breach of this Agreement and the Settlement Agreement.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:36pt; font-size:12pt">6.7</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:54pt; font-size:12pt">Upon expiration or termination of this Agreement, all rights granted to Licensee herein shall terminate.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:36pt; font-size:12pt">6.8</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:54pt; font-size:12pt">Subject to Section 6.7, termination or expiration of this Agreement for any reason shall be without prejudice to any rights that shall have accrued to the benefit of a Party prior to or on account of such termination or expiration. &nbsp;All remedies provided hereunder or elsewhere are cumulative. &nbsp;Licensee's obligations to report and pay royalties as to activities under this Agreement<B>,</B> and ABI's right to audit under Section 3.4, shall survive termination or expiration. &nbsp;Without limiting the survival of other Sections herein that expressly survive termination or expiration, Articles 1, 6, 7, 10 and 11 shall survive any termination or expiration of this Agreement. </P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:36pt; font-size:12pt">6.9</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:54pt; font-size:12pt">Without limiting ABI&#146;s remedies under the Settlement Agreement, ABI shall have the right to terminate this Agreement immediately upon written notice to Licensee if Licensee or any of its Affiliates </P>
<P style="margin-top:0pt; margin-bottom:12pt"><BR></P>
<P style="margin-top:0pt; margin-bottom:12pt"><BR></P>
<P style="margin-top:0pt; margin-bottom:12pt"><BR></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; font-size:12pt" align=center>[**]</P>
<P style="margin-top:0pt; margin-bottom:12pt"><BR></P>
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<P style="margin-top:0pt; margin-bottom:12pt"><BR></P>
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<BR></P>
<P style="line-height:14pt; margin:0pt; padding-right:18pt; text-indent:213pt; font-size:12pt">16.</P>
<P style="margin:0pt"><BR></P>
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<P style="margin:0pt; page-break-before:always"><BR></P>
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<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:36pt; font-size:12pt"><B><U>7.</U></B></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:54pt; font-size:12pt"><B><U>Confidentiality &#150; Publicity</U></B></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:36pt; font-size:12pt">7.1</P>
<P style="line-height:14pt; margin:0pt; text-indent:54pt; font-size:12pt">Unless and until ABI reasonably instructs differently<B>, </B>in advertisements, catalogs, brochures, sales literature and promotional literature for Licensed Real-Time Thermal Cyclers, Licensee, Affiliates and distributors shall state the following prominently in type and location:</P>
<P style="margin:0pt"><BR></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:5pt; padding-left:36pt; padding-right:54pt; font-size:12pt" align=justify>Bio-Rad Real-time thermal cycler [model(s) or product number] are licensed real-time thermal cycler(s) under Applera's United States Patent No. 6,814,934 B1 for use in research and for all other fields except the fields of human diagnostics and veterinary diagnostics.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:36pt; font-size:12pt">7.2</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:54pt; font-size:12pt">With respect to Licensee's distribution of any written information to Third Parties, including but not limited to advertising, brochures, catalogs, promotional and sales material, and public relations material, ABI shall have the right to prescribe changes regarding references to, or descriptions of: Applera, Applied Biosystems, the patents under which rights are granted in this Agreement or this Agreement. &nbsp;Licensee agrees to comply with ABI's reasonable prescriptions.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:36pt; font-size:12pt">7.3</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:54pt; font-size:12pt">Except as provided in Sections 7.1 and 7.2, Licensee shall maintain the confidentiality of the provisions of this Agreement and shall refrain from disclosing the terms of this Agreement without the prior written consent of ABI, except to the extent such disclosure is required under applicable law or regulation provided that (i) such disclosure is limited to the information that must be so disclosed under applicable law or regulation; and (ii) Licensee notifies ABI of such requirement and the text of the proposed disclosure at least (30) days before such proposed disclosure is required or in any event as far in advance of the date of disclosure as is reasonably possible and allows ABG a reasonable opportunity to comment upon, object or seek a protective order or other injunctive relief to prevent or limit such disclosure. &nbsp;Licensee shall be permitted to issue a press release, reasonably acceptable to ABI, th
at announces the grant of the license hereunder<B>.</B> &nbsp;Licensee may disclose the provisions of this Agreement to Michael Finney and John Finney, provided that they shall first have agreed in a writing provided to ABI that they will be bound by the confidentiality terms of this Article 7.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:36pt; font-size:12pt"><B><U>8.</U></B></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:54pt; font-size:12pt"><B><U>Compliance and Quality</U></B></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:36pt; font-size:12pt">8.1</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:54pt; font-size:12pt">In the exercise of any and all rights and in performance hereunder, it shall be the duty of Licensee, not ABI, to comply fully with all applicable laws, regulations </P>
<P style="margin-top:0pt; margin-bottom:12pt"><BR>
<BR></P>
<P style="line-height:14pt; margin:0pt; padding-right:18pt; text-indent:213pt; font-size:12pt">17.</P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt; page-break-before:always"><BR></P>
<P style="margin:0pt"><BR></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; font-size:12pt">and ordinances and to obtain and keep in effect licenses, permits and other governmental approvals (federal, state or local) necessary or appropriate to carry on activities hereunder.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:36pt; font-size:12pt">8.2</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:54pt; font-size:12pt">ABI does not approve or endorse any Licensed Real-Time Thermal Cycler of Licensee in any way or for any purpose, including for real-time PCR. &nbsp;Quality and quality control with respect to suitability for real-time PCR, according to standards and requirements that may exist in the marketplace from time to time, are the sole responsibility of Licensee. </P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:36pt; font-size:12pt"><B><U>9.</U></B></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:54pt; font-size:12pt"><B><U>Assignment</U></B></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:36pt; font-size:12pt">9.1</P>
<P style="line-height:14pt; margin:0pt; text-indent:54pt; font-size:12pt">This Agreement (and the licenses granted hereunder) is personal in nature. &nbsp;This Agreement and the rights hereunder are non-delegable and non-assignable by the Licensee. &nbsp;Without limiting the foregoing, this Agreement cannot be assumed or assumed and assigned by a trustee or debtor-in-possession in bankruptcy as set forth in Section 365(c)(1) of the United States Bankruptcy Code or any similar provisions of state or federal law. &nbsp;This Agreement shall not be assigned or transferred by Licensee (including without limitation by any attempted assignment or transfer that would arise from a sale or transfer of Licensee's business or assets or acquisition of all of the equity or any change of control of Licensee) except as permitted under this Section 9.1. &nbsp;Any such assignment or transfer or attempted assignment or transfer (except as permitted under this Section 9.1) shall be void <I>ab initio </I>and result in the immedi
ate and automatic termination of this Agreement without any requirement of notice or other action by ABI.</P>
<P style="margin:0pt"><BR></P>
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<P style="line-height:14pt; margin:0pt; font-size:12pt" align=center>[**]</P>
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<BR></P>
<P style="line-height:14pt; margin:0pt; padding-right:18pt; text-indent:213pt; font-size:12pt">18.</P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt; page-break-before:always"><BR></P>
<P style="margin:0pt"><BR></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:36pt; font-size:12pt">9.2</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:54pt; font-size:12pt">ABI may assign or transfer all or any part of its rights and obligations under this Agreement at any time without the consent of Licensee. &nbsp;Licensee agrees to execute such further acknowledgements or other instruments as ABI may reasonably request in connection with such assignment.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:36pt; font-size:12pt"><B><U>10.</U></B></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:54pt; font-size:12pt"><B><U>Negation of Warranties and Indemnity</U></B></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:36pt; font-size:12pt">10.1</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:72pt; font-size:12pt">Nothing in this Agreement shall be construed as: a) a warranty or representation by ABI as to the validity, enforceability or scope of any patent; b) a warranty or representation that anything made, used, sold, or otherwise disposed of pursuant to this Agreement is or will be free from infringement of patents or other intangible rights of third parties; or a warranty or representation that the practice (or making, using, selling, offering, importing or transferring products licensed under the Real-Time Apparatus Patent Rights) under the Real-Time Apparatus Patent Rights is or will be free from infringement of patents of Third Parties; c) an obligation by ABI to file any patent application, secure any patent, or maintain any patent in force; d) any obligations of ABI to prosecute, enforce or sublicense its patent rights to (or against) Third Party infringers; e) except as expressly set forth herein, conferring up
on Licensee the right to use in advertising, publicity or otherwise, in any form, the name of, or any trademark or trade name of, ABI or any of its affiliates; f) granting by implication, estoppel, or otherwise, any license, immunity or rights under patents, trade secrets, know-how, copyrights, or other intangible rights of ABI other than the express licenses granted under the Real-Time Apparatus Patent Rights pursuant to Article 2 regardless of whether such patent is dominant or subordinate to the patents under which rights are granted in this Agreement; g) an obligation to furnish any know-how; or h) creating any agency, partnership, joint venture or similar relationship between ABI and Licensee. &nbsp;Without limiting the foregoing, nothing herein shall be construed to convey to Licensee any rights, licenses or immunities from suit under the Real-Time Apparatus Patent Rights outside of the Territory or outside of the Field. &nbsp;Licensee acknowledges that ABI will be under no obligation to offer Licensee
 any license under the Real-Time Apparatus Patent Rights outside the Territory or outside of the Field and if Licensee offers any such licenses, ABI reserves the right to demand royalties or other payments that are less favorable to Licensee than the royalties and payments required under this Agreement.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:36pt; font-size:12pt">10.2</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:72pt; font-size:12pt">EXCEPT AS EXPRESSLY STATED HEREIN, ABI MAKES NO EXPRESS OR IMPLIED WARRANTIES OF ANY KIND (INCLUDING, WITHOUT LIMITATION, ANY WARRANTY OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE OR NONINFRINGEMENT) WITH RESPECT TO THE REAL-TIME APPARATUS PATENT RIGHTS, THE PRACTICE OF THE LICENSE HEREUNDER OR THE MAKING, USING OR SELLING OF PRODUCTS LICENSED HEREUNDER. &nbsp;IN NO EVENT SHALL ABI BE LIABLE FOR ANY SPECIAL, PUNITIVE, INCIDENTAL OR CONSEQUENTIAL DAMAGES (INCLUDING, WITHOUT LIMITATION LOST PROFITS).</P>
<P style="margin-top:0pt; margin-bottom:12pt"><BR>
<BR></P>
<P style="line-height:14pt; margin:0pt; padding-right:18pt; text-indent:213pt; font-size:12pt">19.</P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt; page-break-before:always"><BR></P>
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<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:36pt; font-size:12pt">10.3</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:72pt; font-size:12pt">Licensee shall assume full responsibility for its operation under the patents under which rights are granted in this Agreement, the manufacture of Licensed Real-Time Thermal Cyclers and the use thereof and shall defend, indemnify and hold ABI harmless from and against all liability, demands, damages, expenses (including attorneys' fees) and losses for death, personal injury, illness, property damage or any other injury or damage, including any damages or expenses arising in connection with state or federal regulatory action, in view of the use by Licensee, its officers, directors, agents and employees of the Real-Time Apparatus Patent Rights and the manufacture and use of Licensed Real-Time Thermal Cyclers except that Licensee shall not be liable to ABI for injury or damage arising solely because of ABI's negligence.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:36pt; font-size:12pt">10.4</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:72pt; font-size:12pt">ABI represents and warrants to Licensee that ABI is the sole and exclusive owner of all right, title and interest in the Real-Time Apparatus Patent Rights, and such Real-Time Apparatus Patent Rights are not subject to any encumbrance, lien or claim of ownership by any Third Party that would encumber the rights granted to Licensee in this Agreement</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:36pt; font-size:12pt"><B><U>11.</U></B></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:54pt; font-size:12pt"><B><U>General</U></B></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:36pt; font-size:12pt">11.1</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:72pt; font-size:12pt">If after execution of this Agreement, ABI grants a license to any Third Party, other than Roche or a collaboration partner (including, without limitation, any party to an agreement with ABI entailing collaborative research, development or manufacturing) of substantially the same scope and encompassing the same fields as the license granted to Licensee herein but under more favorable royalty rates, expressed as a percentage of the Net Sales Price of such other licensee&#146;s royalty-bearing products, than those given to Licensee under this Agreement then: ABI shall promptly notify Licensee of such more favorable royalty rates, and Licensee shall have the right and option to substitute such more favorable royalty rates that are expressed as percentages of Net Sales Price (such more favorable royalty rate, the &#147;Substituted Royalty Rate&#148;) for the royalty rates contained herein; provided that at ABI&#146;s
 election Licensee accepts all other terms and conditions (whether more or less favorable to Licensee) or at ABI&#146;s election all other terms and conditions excluding additional licenses granted in other fields of such agreement with such Third Party (such new agreement with Licensee on the same terms and conditions, <I>mutatis mutandum</I>, as apply to such Third Party, referred to hereafter as the &#147;Substituted Agreement&#148;). &nbsp;In no event shall Licensee be entitled to any refund, substitution or reduction of the issuance fee paid by Licensee pursuant to Section 3.1 or any other payment made by Licensee pursuant to this Agreement. &nbsp;If Licensee accepts a Substituted Agreement, such Substituted Agreement shall be effective as of the date of execution of such other Third Party license agreement; and shall not affect any of Licensee&#146;s obligations (including, without limitation, payment obligations) that have accrued prior to such date. &nbsp;&nbsp;Notwithstanding the foregoing, this Sec
tion 11.1 and Licensee&#146;s right to obtain the benefit of a Substituted Royalty Rate shall not apply with respect to any licenses wherein (i) Applera receives substantial non-monetary consideration, for example, such as intellectual property rights, as a part of the </P>
<P style="margin-top:0pt; margin-bottom:12pt"><BR>
<BR></P>
<P style="line-height:14pt; margin:0pt; padding-right:18pt; text-indent:213pt; font-size:12pt">20.</P>
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<P style="margin:0pt"><BR></P>
<P style="margin:0pt; page-break-before:always"><BR></P>
<P style="margin:0pt"><BR></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; font-size:12pt">consideration for its or their granting of such license to a Third Party; or (ii) such license is granted to such Third Party as part of a settlement of actual or threatened litigation.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:36pt; font-size:12pt">11.2</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:72pt; font-size:12pt">This Agreement together with the Settlement Agreement constitutes the entire agreement between the Parties as to the subject matter hereof, and all prior negotiations, representations, agreements and understandings are merged into, extinguished by and completely expressed by it. &nbsp;Concurrently with this Agreement, the Parties have also entered into separate agreements (including without limitation the Connecticut Settlement Agreement and the Amended and Restated Thermal Cycler Supplier Agreement) to bring about a settlement of the Connecticut Litigation. &nbsp;This Agreement may be modified or amended only by a writing executed by authorized officers of each of the Parties. &nbsp;</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:36pt; font-size:12pt">11.3</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:5pt; text-indent:72pt; font-size:12pt">Any notice required or permitted to be given by this Agreement shall be given by postpaid, first class, registered or certified mail, or by overnight courier or facsimile, properly addressed to the other Party at the respective address as shown below:</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:5pt; text-indent:36pt; font-size:12pt">If to ABI:</P>
<P style="line-height:14pt; margin:0pt; text-indent:36pt; font-size:12pt">Applied Biosystems</P>
<P style="line-height:14pt; margin:0pt; text-indent:36pt; font-size:12pt">850 Lincoln Centre Drive</P>
<P style="line-height:14pt; margin:0pt; text-indent:36pt; font-size:12pt">Foster City, California, U.S.A. 94404</P>
<P style="line-height:14pt; margin:0pt; text-indent:36pt; font-size:12pt">Attention: Director of Licensing</P>
<P style="line-height:14pt; margin:0pt; text-indent:36pt; font-size:12pt">Fax No.: &nbsp;(650) 638-6071</P>
<P style="margin:0pt"><BR></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:5pt; text-indent:36pt; font-size:12pt">If to Licensee:</P>
<P style="line-height:14pt; margin:0pt; text-indent:36pt; font-size:12pt">Bio-Rad Laboratories, Inc.</P>
<P style="line-height:14pt; margin:0pt; text-indent:36pt; font-size:12pt">1000 Alfred Nobel Drive</P>
<P style="line-height:14pt; margin:0pt; text-indent:36pt; font-size:12pt">Hercules, CA 94547</P>
<P style="line-height:14pt; margin:0pt; text-indent:36pt; font-size:12pt">Attention: &nbsp;General Counsel</P>
<P style="line-height:14pt; margin:0pt; text-indent:36pt; font-size:12pt">Fax No. (510) 741-5815</P>
<P style="margin:0pt"><BR></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:5pt; text-indent:36pt; font-size:12pt">Either Party may change its address by providing notice to the other. &nbsp;A notice shall be deemed given four (4) full business days after the day of mailing, or one full day after the date of delivery to the courier, or the date of facsimile transmission, as the case may be.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:36pt; font-size:12pt"><U>11.4</U></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:72pt; font-size:12pt"><U>Governing Law and Venue</U>. &nbsp;This Agreement shall be deemed made in the State of California, and it shall be construed and enforced in accordance with the law of the State of California. &nbsp;The Parties agree that the exclusive jurisdiction and venue for any dispute or controversy arising from this Agreement shall be in the state or federal courts in California.</P>
<P style="margin-top:0pt; margin-bottom:12pt"><BR>
<BR></P>
<P style="line-height:14pt; margin:0pt; padding-right:18pt; text-indent:213pt; font-size:12pt">21.</P>
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<P style="margin:0pt; page-break-before:always"><BR></P>
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<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:36pt; font-size:12pt">11.5</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:72pt; font-size:12pt">If any provision hereof should be held invalid, illegal or unenforceable in any respect, then, to the fullest extent permitted by applicable law: (a) all other provisions hereof shall remain in full force and effect and shall be liberally construed in order to carry out the intent of the Parties as nearly as may be possible, and (b) the Parties agree to negotiate in good faith a provision, in replacement of the provision held invalid, illegal or unenforceable, that is consistent with applicable law and accomplishes, as nearly as possible, the original intention of the Parties with respect thereto. &nbsp;To the fullest extent permitted by applicable law, each Party hereby waives any provision of law that would render any provision hereof prohibited or unenforceable in any respect.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:36pt; font-size:12pt">11.6</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:72pt; font-size:12pt">Except where the context otherwise requires, wherever used, the singular shall include the plural and the word &#147;or&#148; is used in the inclusive sense. &nbsp;The captions and headings of this Agreement are for convenience of reference only and in no way define, describe, extend or limit the scope or intent of this Agreement or the intent of any provision contained in this Agreement. &nbsp;Each Party hereto and its counsel have participated fully in the review and negotiation of this Agreement. &nbsp;Both parties have participated equally in the formation of this Agreement; the language of this Agreement shall not be presumptively construed against either Party.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:36pt; font-size:12pt">11.7</P>
<P style="line-height:14pt; margin:0pt; text-indent:72pt; font-size:12pt">It is expressly agreed that the Parties, shall be independent contractors and that the relationship between the Parties shall not constitute a partnership, joint venture or agency. </P>
<P style="margin:0pt"><BR></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:36pt; font-size:12pt">11.8</P>
<P style="line-height:14pt; margin:0pt; text-indent:72pt; font-size:12pt">The waiver by either Party hereto of any right hereunder or the failure to perform or a breach by the other Party shall not be deemed a waiver of any other right hereunder or of any other breach or failure by said other Party whether of a similar nature or otherwise.</P>
<P style="margin:0pt"><BR></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:36pt; font-size:12pt">11.9</P>
<P style="line-height:14pt; margin:0pt; text-indent:72pt; font-size:12pt">This Agreement may be executed (including via facsimile) in two (2) or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.</P>
<P style="margin:0pt"><BR></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:36pt; font-size:12pt">11.10</P>
<P style="line-height:14pt; margin:0pt; text-indent:72pt; font-size:12pt">The representations, warranties, covenants, rights and obligations set forth in this Agreement are for the sole benefit of the Parties and their successors and permitted assigns, and they shall not be construed as conferring any rights on any third parties.</P>
<P style="margin:0pt"><BR></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:36pt; font-size:12pt">11.11</P>
<P style="line-height:14pt; margin:0pt; text-indent:72pt; font-size:12pt">BRL is and shall remain jointly and severally liable with MJR and the BRL Subsidiaries for all of Licensee&#146;s obligations hereunder. &nbsp;Without limiting Licensee&#146;s obligations hereunder, each of MJR and BRL hereby agrees to act as guarantor for the other Licensee&#146;s and the BRL Subsidiaries performance (including payment obligations of each Licensee hereunder) and compliance with its obligations under this Agreement. &nbsp;BRL shall make royalty reports and royalty payments on behalf of MJR and all of the BRL Subsidiaries (in the same manner as BRL is obligated hereunder) regardless of whether such BRL Subsidiaries are signatories to this Agreement. &nbsp;BRL </P>
<P style="margin:0pt"><BR>
<BR></P>
<P style="line-height:14pt; margin:0pt; padding-right:18pt; text-indent:213pt; font-size:12pt">22.</P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt; page-break-before:always"><BR></P>
<P style="margin:0pt"><BR></P>
<P style="line-height:14pt; margin:0pt; font-size:12pt">represents and warrants that it has the authority to bind all of the BRL Subsidiaries to the terms and conditions of this Agreement. &nbsp;This Section 11.11 shall survive any expiration or termination of this Agreement and any change of control or acquisition of Licensee (even if such change of control or acquisition results in (i) BRL no longer qualifying as an Affiliate of MJR or (ii) an entity that was formerly a BRL Subsidiary (as defined in Section 1.2) ceasing to qualify as a BRL Subsidiary. </P>
<P style="margin:0pt"><BR>
<BR></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:6pt; font-size:12pt">/ / / </P>
<P style="margin-top:0pt; margin-bottom:6pt"><BR>
<BR></P>
<P style="line-height:14pt; margin:0pt; padding-right:18pt; text-indent:213pt; font-size:12pt">23.</P>
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<P style="margin:0pt"><BR></P>
<P style="margin:0pt; page-break-before:always"><BR></P>
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<P style="line-height:14pt; margin-top:0pt; margin-bottom:6pt; text-indent:36pt; font-size:12pt">IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be duly executed by their respective authorized representatives, effective as of the Effective Date.</P>
<TABLE style="font-size:10pt" cellspacing=0><TR><TD width=35.4></TD><TD width=203.8></TD><TD width=34.15></TD><TD width=191.4></TD></TR>
<TR><TD valign=top width=47.2>&nbsp;</TD><TD valign=top width=271.733>&nbsp;</TD><TD valign=top width=45.533>&nbsp;</TD><TD valign=top width=255.2>&nbsp;</TD></TR>
<TR><TD valign=top width=47.2>&nbsp;</TD><TD valign=top width=271.733><P style="line-height:13pt; margin:0pt; font-size:11pt">APPLERA CORPORATION, THROUGH ITS APPLIED BIOSYSTEMS GROUP</P>
</TD><TD valign=top width=45.533>&nbsp;</TD><TD valign=top width=255.2><P style="line-height:normal; margin:0pt; font-size:11pt" align=justify>.MJ RESEARCH, INC</P>
</TD></TR>
<TR><TD valign=top width=47.2>&nbsp;</TD><TD valign=top width=271.733>&nbsp;</TD><TD valign=top width=45.533>&nbsp;</TD><TD valign=top width=255.2>&nbsp;</TD></TR>
<TR><TD valign=top width=47.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>By:</P>
</TD><TD valign=top width=271.733><P style="line-height:13pt; margin:0pt; font-size:11pt" align=justify><U>/s/ Catherine M. Burzik</U></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=justify>Catherine M. Burzik</P>
</TD><TD valign=top width=45.533><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>By:</P>
</TD><TD valign=top width=255.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=justify><U>/s/ Norman Schwartz</U></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=justify>Norman Schwartz</P>
</TD></TR>
<TR><TD valign=top width=47.2>&nbsp;</TD><TD valign=top width=271.733>&nbsp;</TD><TD valign=top width=45.533>&nbsp;</TD><TD valign=top width=255.2>&nbsp;</TD></TR>
<TR><TD valign=top width=47.2>&nbsp;</TD><TD valign=top width=271.733><P style="line-height:13pt; margin:0pt; font-size:11pt" align=justify>Title: &nbsp;&nbsp;&nbsp;President</P>
</TD><TD valign=top width=45.533>&nbsp;</TD><TD valign=top width=255.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=justify>Title: &nbsp;&nbsp;&nbsp;President</P>
</TD></TR>
<TR><TD valign=top width=47.2>&nbsp;</TD><TD valign=top width=271.733>&nbsp;</TD><TD valign=top width=45.533>&nbsp;</TD><TD valign=top width=255.2>&nbsp;</TD></TR>
<TR><TD valign=top width=47.2>&nbsp;</TD><TD valign=top width=271.733><P style="line-height:13pt; margin:0pt; font-size:11pt" align=justify>Date: &nbsp;&nbsp;February 9, 2006</P>
</TD><TD valign=top width=45.533>&nbsp;</TD><TD valign=top width=255.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=justify>Date: &nbsp;&nbsp;&nbsp;February 9, 2006</P>
</TD></TR>
<TR><TD valign=top width=47.2>&nbsp;</TD><TD valign=top width=271.733>&nbsp;</TD><TD valign=top width=45.533>&nbsp;</TD><TD valign=top width=255.2>&nbsp;</TD></TR>
<TR><TD valign=top width=47.2>&nbsp;</TD><TD valign=top width=271.733><P style="line-height:13pt; margin:0pt; font-size:11pt" align=justify>BIO-RAD LABORATORIES, INC.</P>
</TD><TD valign=top width=45.533>&nbsp;</TD><TD valign=top width=255.2>&nbsp;</TD></TR>
<TR><TD valign=top width=47.2>&nbsp;</TD><TD valign=top width=271.733>&nbsp;</TD><TD valign=top width=45.533>&nbsp;</TD><TD valign=top width=255.2>&nbsp;</TD></TR>
<TR><TD valign=top width=47.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>By:</P>
</TD><TD valign=top width=271.733><P style="line-height:13pt; margin:0pt; font-size:11pt" align=justify><U>/s/ Norman Schwartz</U></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=justify>Norman Schwartz</P>
</TD><TD valign=top width=45.533>&nbsp;</TD><TD valign=top width=255.2>&nbsp;</TD></TR>
<TR><TD valign=top width=47.2>&nbsp;</TD><TD valign=top width=271.733><P style="line-height:13pt; margin:0pt; font-size:11pt" align=justify>Title: &nbsp;&nbsp;&nbsp;President</P>
</TD><TD valign=top width=45.533>&nbsp;</TD><TD valign=top width=255.2>&nbsp;</TD></TR>
<TR><TD valign=top width=47.2>&nbsp;</TD><TD valign=top width=271.733>&nbsp;</TD><TD valign=top width=45.533>&nbsp;</TD><TD valign=top width=255.2>&nbsp;</TD></TR>
<TR><TD valign=top width=47.2>&nbsp;</TD><TD valign=top width=271.733><P style="line-height:13pt; margin:0pt; font-size:11pt" align=justify>Date: &nbsp;&nbsp;&nbsp;February 9, 2006</P>
</TD><TD valign=top width=45.533>&nbsp;</TD><TD valign=top width=255.2>&nbsp;</TD></TR>
</TABLE>
<P style="margin:0pt" align=justify><BR></P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt"><BR>
<BR></P>
<P style="line-height:14pt; margin:0pt; padding-right:18pt; text-indent:213pt; font-size:12pt">24.</P>
<P style="margin:0pt"><BR></P>
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<P style="margin:0pt"><BR></P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt"><BR>
<BR></P>
<P style="line-height:14pt; margin:0pt; padding-right:18pt; text-indent:213pt; font-size:12pt">25.</P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt"><BR></P>
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