Product Development And Reseller Agreement

Exhibit 10.27


[GENOMICA LETTERHEAD]


4001 Discovery Drive, Suite 130
Boulder, Colorado 80303
Phone: (303) 402-9800
Fax: (303) 402-9877


Product Development and
Reseller Agreement


April 7, 2000


The information in this Agreement shall not be disclosed outside PE Biosystems and shall not be duplicated, used or disclosed in whole or in part for any purpose other than to evaluate the Agreement, provided that if the Agreement is signed, PE Biosystems shall have the right to duplicate, use or disclose the information for archival and other internal purposes, or as otherwise provided by the Agreement. This restriction does not limit the right of PE Biosystems to use information contained in the Agreement if it is obtained from another source authorized to disclose it.


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Table of Contents Table of Contents...................................................................... 2 Section 1.0 Definitions.............................................................. 7
1.1 Distribute................................................................... 7
1.2 Documentation................................................................ 7
1.3 End-Customer................................................................. 7
1.4 Evaluation Product........................................................... 8
1.5 Exclusive.................................................................... 8
1.6 Genomica Product............................................................. 8
1.7 GeneMapper Product........................................................... 8
1.8 Object Code.................................................................. 8
1.9 Sale......................................................................... 8
1.10 Software License Agreement................................................. 8
1.11 Sold Product............................................................... 9
1.12 Source Code................................................................ 9
1.13 Source Party............................................................... 9
1.14 Technical Support.......................................................... 9
1.15 Technical Support and Maintenance Agreement................................ 9


Section 2.0 APPOINTMENT AS RESELLER................................................ 9
2.1 Appointment of Reseller...................................................... 9
2.2 Conditional Exclusivity...................................................... 9
2.3 Effect of Non-Exclusivity.................................................... 10
2.4 Relationship as Asset........................................................ 10 Section 3.0 GENOMICA PRODUCT LICENSE GRANT......................................... 10
3.1 Distribution License......................................................... 10
3.2 Copying License Grant........................................................ 11
3.3 Evaluation, Training and Demonstration License Grant......................... 11
3.4 Development License Grant.................................................... 11
3.5 Documentation License Grant.................................................. 11
3.6 Proprietary Notices.......................................................... 11
3.7 Ownership.................................................................... 11
3.8 Derivative Rights............................................................ 12
3.9 Remedies..................................................................... 12


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Section 4.0 REPRESENTATIONS AND OBLIGATIONS.............................................. 12
4.1 Product Feedback................................................................ 12
4.2 Representations on Behalf of the Other Party.................................... 12
4.3 Ethical Conduct................................................................. 12
4.4 Representations................................................................. 13 Section 5.0 MARKETING AND LAUNCH SUPPORT................................................. 13
5.1 Appointment of Principal Marketing Contact Person............................... 13
5.2 Datasheet Development........................................................... 13
5.3 Genomica Collateral Material.................................................... 13
5.4 Tag-Along Marketing............................................................. 13
5.5 Advertising..................................................................... 14
5.6 Co-Marketing Responsibilities................................................... 14
5.7 Industry Events................................................................. 14
5.8 Users Conference Participation.................................................. 14
5.9 PEB Internal Sales Meetings..................................................... 14
5.10 Sales Training................................................................ 14
5.11 Sales Binder.................................................................. 15
5.12 Mutual References............................................................. 15
5.13 Promotional Materials......................................................... 15
5.14 Evaluation, Training and Demonstration License Grant.......................... 15 Section 6.0 BRANDING AND TRADEMARKS...................................................... 15
6.1 Dual-Branding................................................................... 15
6.2 Trademarks...................................................................... 16
6.3 Use of Trademarks............................................................... 16 Section 7.0 GENOMICA PRODUCT DEVELOPMENT................................................. 16
7.1 Appointment of Project Manager.................................................. 16
7.2 Development Schedule Sharing.................................................... 16
7.3 Integration Definition.......................................................... 17
7.4 Integration Testing............................................................. 17
7.5 GeneMapper Product License Grant................................................ 17
7.6 Beta Sites...................................................................... 17
7.7 Pre-Release Evaluation Program Participation.................................... 17
7.8 Genomica Product Updates........................................................ 17
7.9 Retiring Genomica Product....................................................... 17


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7.10 Retiring GeneMapper Product.................................................................... 18 7.11 Ownership of Integration Intellectual Property................................................. 18 Section 8.0 TECHNICAL SUPPORT........................................................................... 18 8.1 End-Customer Technical Support by Genomica..................................................... 18 8.2 End-Customer Technical Support by PEB.......................................................... 18
8.2.1 PEB Responsible For Total Customer Support................................................... 18
8.2.2 Technical Support Outside of North America and Europe........................................ 18
8.2.3 Technical Support In North America and Europe................................................ 19
8.2.4 Customer Dissatisfaction with Genomica Support............................................... 19
8.2.5 Technical Support Warranties................................................................. 19
8.2.6 Technical Support Assistance from Genomica................................................... 19 8.3 GeneMapper Product Technical Support Requests to Genomica...................................... 19 8.4 Evaluation Product Support..................................................................... 19 Section 9.0 MANUFACTURING AND DISTRIBUTION.............................................................. 20 9.1 Materials Hand-off............................................................................. 20
9.1.1 Materials Acceptance......................................................................... 20 9.2 CD Manufacturing and Quality Assurance......................................................... 20 9.3 Documentation Manufacturing and Quality Assurance.............................................. 20 9.4 Shipping Container Manufacturing and Quality Assurance......................................... 20 9.5 Genomica Product Package Assembly.............................................................. 21 9.6 Genomica Sign-off.............................................................................. 21 9.7 Genomica Product Inventory..................................................................... 21 9.8 Genomica Product Distribution.................................................................. 21 9.9 Distribution of Current Materials.............................................................. 21 9.10 Evaluation Product Distribution.............................................................. 21 9.11 Update Product Distribution.................................................................. 21 Section 10.0 SALES, ORDER PROCESSING AND COLLECTIONS..................................................... 22 10.1 PEB Sales Material........................................................................... 22 10.2 PEB Sales Effort............................................................................. 22 10.3 Genomica Presales Support.................................................................... 22 10.4 Sale of Technical Support and Maintenance Contracts.......................................... 22
10.4.1 Notification of Technical Support and Maintenance Sale...................................... 22 10.5 Sales Leads.................................................................................. 23 10.6 Order Processing............................................................................. 23 10.7 Collections.................................................................................. 23 Section 11.0 PAYMENTS TO GENOMICA........................................................................ 23 11.1 Fees......................................................................................... 23
11.1.1 Payments.................................................................................... 23


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11.1.2 Fee Payment Schedule..................................................................... 23
11.1.3 Non Fee-Generating Activities............................................................ 23
11.1.4 Returns.................................................................................. 24 11.2 Payments...................................................................................... 24
11.2.1 Form of Payment.......................................................................... 24
11.2.2 Late Payments............................................................................ 24
11.2.3 Right to Challenge....................................................................... 24 11.3 Reporting..................................................................................... 24 11.4 Record Inspection and Audit................................................................... 24
11.4.1 Record Keeping and Archiving............................................................. 24
11.4.2 Auditing................................................................................. 24
11.4.3 Underpayment............................................................................. 25 11.5 Taxes......................................................................................... 25 Section 12.0 TERM AND TERMINATION..................................................................... 25 12.1 Initial Term.................................................................................. 25 12.2 Termination................................................................................... 25
12.2.1 Breach................................................................................... 25
12.2.2 Insolvency............................................................................... 26
12.2.3 Acquisition, Change of Control or Merger................................................. 26 12.3 Effect of Termination......................................................................... 26 12.4 Survival...................................................................................... 26 Section 13.0 CONFIDENTIALITY.......................................................................... 26 13.1 Obligations................................................................................... 26 13.2 Exceptions.................................................................................... 27 13.3 Confidentiality Agreements.................................................................... 27 Section 14.0 WARRANTY................................................................................. 28 14.1 Ownership Warranty............................................................................ 28 14.2 Genomica Warranty Disclaimer.................................................................. 28 Section 15.0 INDEMNITIES.............................................................................. 28 15.1 Indemnity..................................................................................... 28 15.2 Exclusions.................................................................................... 28 15.3 Exclusive Remedies............................................................................ 29 15.4 Sole Obligation............................................................................... 29 15.5 PEB Indemnity................................................................................. 29 15.6 Sole Obligation............................................................................... 29 Section 16.0 LIMITATION OF LIABILITY.................................................................. 29 Section 17.0 MISCELLANEOUS............................................................................ 30 17.1 Confidentiality of Agreement.................................................................. 30


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17.2 Solicitation.................................................................................... 30 17.3 Assignment...................................................................................... 30 17.4 Parties Independent............................................................................. 30 17.5 Force Majeure................................................................................... 31 17.6 Notices......................................................................................... 31 17.7 Governing Law; Forum Selection.................................................................. 31 17.8 Export Regulations.............................................................................. 31 17.9 Government Rights............................................................................... 32 17.10 Severability.................................................................................... 32 17.11 Waiver.......................................................................................... 32 17.12 Entire Agreement................................................................................ 32 EXHIBIT A--GENOMICA PRODUCT DESCRIPTION................................................................. 33 EXHIBIT B--SOFTWARE LICENSE AGREEMENT................................................................... 34 EXHIBIT C--TECHNICAL SUPPORT AND MAINTENANCE AGREEMENT.................................................. 36 EXHIBIT D--PAYMENTS AND SALES MILESTONES................................................................ 39 EXHIBIT E--TRADEMARKS................................................................................... 40 EXHIBIT F--GENOMICA PRODUCT BILL OF MATERIALS........................................................... 41 EXHIBIT G--MONTHLY AND QUARTERLY REPORTING FORMAT....................................................... 42


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This Product Development and Reseller ("Agreement") is entered into this 7th day of April, 2000 (the "Effective Date") by and between Genomica Corporation, a Delaware Corporation with principal offices at 1745 38th Street, Boulder, Colorado 80301 ("Genomica"), and PE Corporation, by and through its PE Biosystems divisions, a Delaware corporation with principal offices at 850 Lincoln Center Drive, Foster City, California 94404 ("PEB").


RECITALS


Whereas, PEB desires that Genomica develop, and Genomica desires to develop, a functional subset of Genomica genetic analysis software that shall be fully interoperable with PEB's GeneMapper Software Product and that PEB may resell and Distribute as provided in this Agreement;


Whereas, the parties entered into a Joint Development And Marketing Ageement, effective September 17, 1999 (the "Joint Development"), which describes the cooperation between the parties in developing software products in the field of high throughput linkage viz-a-viz gene sequencing;


Whereas, the parties now desire to provide further detail respecting the Joint Development by setting forth, in this Agreement, additional development and resale provisions applicable to software developed primarily by Genomica, as described herein.


Now, Therefore, in consideration of the foregoing and the mutual covenants contained herein, the parties agree as follows:


Section 1.0 Definitions


The following words, terms and phrases shall, in this Agreement, have the following meanings, which shall apply equally to both the singular and plural forms of the terms defined:


1.1 Distribute


"Distribute" means to issue, transfer or make available to an End-Customer a Genomica Product by any means now known or hereafter developed.


1.2 Documentation


"Documentation" means all written or electronic technical documentation furnished by Genomica during the term of this Agreement that relates to the Genomica Product.


1.3 End-Customer


"End-Customer" means an entity that has obtained from PEB or its Sub- Distributors (as defined in Section 3.11) a valid license to the GeneMapper Product and one or more Sold Products for use internally and not for resale, service bureau (including, but not limited to an Application Service Provider) or other non-internal commercial use.


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1.4 Evaluation Product


"Evaluation Product" means an Object Code version of the Genomica Product that is provided, at no charge, to an End-Customer for the purpose of evaluating the fitness of the Genomica Product to the needs of the End-Customer. An Evaluation Product must be Distributed for nonproductive, demonstration use with a usage limitation consistent with the purpose of fitness evaluation, dictated by Genomica and subject to approval of PEB, which approval shall not be unreasonably withheld.


1.5 Exclusive


"Exclusive" means PEB shall be the sole distributor of the Genomica Product having the specific features of Exhibit A.


1.6 Genomica Product


"Genomica Product" means the Object Code format only of a Genomica software product, with the features as described in Exhibit A, which shall integrate with PEB's GeneMapper Product in such a manner as to enhance the utility and marketability of PEB's GeneMapper Product.


1.7 GeneMapper Product


"GeneMapper Product" means the PEB Software Product that performs Allele Calling, including Personal Oracle, or any functionally similar product developed and licensed by PEB.


1.8 Object Code


"Object Code" means unmodified software related to the Genomica Product that is used in the installation or operation of the Genomica Product or in the preparation of data for, loading of data into or re-formatting of data exported from the Genomica Product. Object Code includes any Java code, any Oracle scripts, stored procedures, etc., and any other scripts or codes whether they be machine-readable or human readable. Object Code also includes any code or other information obtained by running analytic or transformation tools (such as decompilers) on any of the above types of items.


1.9 Sale


"Sale" means the Distribution of a Genomica Product or Technical Support and Maintenance Agreement, regardless of when billing or fee collection actually occurs by PEB.


1.10 Software License Agreement


"Software License Agreement" means an agreement between Genomica and an End- Customer that grants the End-Customer the right to use the Genomica Product. An example of a Software License Agreement is contained in Exhibit B. In no case shall the terms of the license in Exhibit B interfer with or impair the terms of this Agreement.


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1.11 Sold Product


"Sold Product" means a license, acquired by an End-Customer, for a non usage- limited Object Code version of a Genomica Product.


1.12 Source Code


"Source Code" means any software relevant to this Agreement that is not specifically defined as Object Code.


1.13 Source Party


"Source Party" means either Genomica or PEB, who in the context of a particular contract term is the party that is providing the product being discussed.


1.14 Technical Support


"Technical Support" means commercially reasonable efforts, undertaken to provide End-Customers with answers to questions, or to provide valid Technical Support and Maintenance Agreement licensees with software updates that repair defects in Genomica Products or its Documentation. Technical Support specifically excludes providing scientific expertise or consultation services. Such questions may be submitted to Genomica under a separate consulting agreement.


1.15 Technical Support and Maintenance Agreement


"Technical Support and Maintenance Agreement" means the agreement on Exhibit C attached to this Agreement, as it may be amended from time to time by Genomica, between Genomica and an End-Customer that specifies the terms and conditions under which Genomica will provide Technical Support and product updates to an End-Customer.


Section 2.0 APPOINTMENT AS RESELLER


2.1 Appointment of Reseller


Subject to the terms and conditions of this Agreement, Genomica hereby appoints PEB as an "Authorized Genomica Reseller," with worldwide rights to resell the Genomica Product. This appointment is Exclusive (as defined in Section 2.2) and non-transferable.


2.2 Conditional Exclusivity


PEB and Genomica acknowledge and agree that the grant of Exclusive distribution rights under Section 2.1 herein is in consideration for PEB's on-going achievement of the Sales Milestones (as defined in Exhibit D. Failure on the part of PEB to (i) achieve a Sales Milestone in two (2) consecutive quarters, or (ii) achieve 75% of the aggregate Sales Milestones for four (4) consecutive quarters, will cause this Agreement to change from a conditionally Exclusive to a non-exclusive Agreement for the remainder of the term of the Agreement. During the first four full calendar


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quarters of this Agreement, PEB may choose to fulfill its milestone obligations by remitting quarterly payments to Genomica equal to the number of Genomica Product and Technical Support and Maintenance contracts that were to be sold by PEB for that quarter multiplied by the agreed upon fees for Genomica Product and Technical Support and Maintenance contracts to be paid to Genomica pursuant to Exhibit D.


2.3 Effect of Non-Exclusivity


Should this Agreement become non-exclusive, PEB (i) shall have the right to renegotiate the terms and conditions of this Agreement such that they are no less favorable than the terms and conditions under which Genomica or any third party may sell the Genomica Product; (ii) shall have the option at its sole discretion to continue or discontinue any or all activities related to the responsibilities outlined in Sections: 5.4, 5.6, 5.7-5.10, 10.1, 10.2 and 10.5; (iii) shall not have to manufacture and distribute Genomica Products, pursuant to Section 9 of this Agreement, that are not sold by PEB; (iv) may require that no PEB Trademarks be associated with Genomica Products that are not sold by PEB.


2.4 Relationship as Asset


Both parties agree that the relationship established in this Agreement is a valuable business asset, and subject to Section 17.4 agree at all times, and in good faith, to promote and protect the interests of the other party, as described herein.


Section 3.0 GENOMICA PRODUCT LICENSE GRANT


3.1 Distribution License


3.1.1 Distribution License Grant


Subject to the terms and conditions of this Agreement, Genomica hereby grants to PEB, under all of Genomica's intellectual property rights in and to the Genomica Product, a conditionally Exclusive (as described in Section 2.2 above), non- transferable license, without right of sublicense, to Distribute on worldwide basis: (i) Sold Products directly, or indirectly through other resellers (the "Sub-Distributors") solely to End-Customers, and (ii) Evaluation Products directly or indirectly through Sub-Distributors to End-Customers.


3.1.2 License Grant Restriction


PEB shall have no rights to Distribute Genomica Product Source Code.


3.1.3 End-Customer Licenses


Distribution of the Genomica Products pursuant to Section 3.1.1 above shall only be permitted to End-Customers pursuant to the Software License Agreement between Genomica and the End-Customer, and optionally the End-Customer Technical Support and Maintenance Agreement between Genomica and the End-Customer, attached as Exhibits B and C respectively, as may be


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amended from time to time by Genomica, subject to the requirement that such amendments not interfere with or impair in any way the terms and conditions of this Agreement.


3.2 Copying License Grant


PEB may and is hereby granted the right and license to make copies of the master copy of the Genomica Product provided to PEB pursuant to Section 9 solely in support of its rights granted in this Section 3, and such copies may be Distributed strictly in accordance with the provisions specified in Section 9.


3.3 Evaluation, Training and Demonstration License Grant


Subject to the terms and conditions of this Agreement, Genomica grants to PEB a nontransferable evaluation, training and demonstration license to use and reproduce the Genomica Product and its associated Documentation, solely (i) for training PEB employees on the use of the product, and (ii) demonstrating Genomica Products ...