Common use of PROGRESS AND ROYALTY REPORTS Clause in Contracts

PROGRESS AND ROYALTY REPORTS. 8.1. Beginning [*** Redacted] and [*** Redacted] thereafter, Licensee shall submit to Berkley Lab a progress report covering Licensee's activities related to the development and testing of all Licensed Products and the obtaining of the governmental approvals necessary for marketing. Licensee shall make these progress reports until commercial sales of the Licensed Product start. 8.2. The progress reports Licensee submits under paragraph 8.1 must include, but not be limited to, the following topics: 8.2.1. summary of work completed related to the requirements of paragraph 7.4; 8.2.2. key scientific discoveries; 8.2.3. summary of work in progress; 8.2.4. current schedule of anticipated milestones; and 8.2.5. market plans for introduction of Licensed Products; and 8.2.6. number of full-time equivalent employees or agents (FTEs) working on the development of Licensed Products and overall number of FTEs employed by Licensee. 8.3. Upon the earlier of [*** Redacted] after the Effective Date or after the first commercial sale of a Licensed Product anywhere in the world, Licensee shall make [*** Redacted] royalty reports to Berkeley Lab on or before [*** Redacted] of each [*** Redacted]. *** Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed separately with the Commission. Each royalty report must cover the most recently completed [*** Redacted] and must show for all sales (or other transfer in accordance with paragraph 2.8): 8.3.1. the Selling Price of each type of Licensed Product sold by Licensee; 8.3.2. the number of each type of Licensed Product sold; 8.3.3. the royalties, in U.S. dollars, payable under this Agreement on those sales; 8.3.4. the exchange rates used in calculating the royalty due; 8.3.5. the royalties on government sales that otherwise would have been due under paragraph 6.12; and

PROGRESS AND ROYALTY REPORTS. 8.1. 7.1 Beginning [June 1, 1999 and *** Redacted] and [*** Redacted] thereafter, Licensee Digirad shall submit to Berkley Berkeley Lab a progress report covering LicenseeDigirad's activities related to the development and testing of all Licensed Products and the obtaining of the governmental approvals necessary for marketing. Licensee Digirad shall make these progress reports until commercial sales of the for each Licensed Product startuntil the first commercial sale of that Licensed Product occurs anywhere in the world. 8.2. 7.2 The progress reports Licensee Digirad submits under paragraph 8.1 Section 7.1 must include, but not be limited to, the following topics: 8.2.1. 7.2.1 summary of work completed related to the requirements of paragraph 7.4Section 6.4; 8.2.2. 7.2.2 key scientific discoveries; 8.2.3. 7.2.3 summary of work in progress; 8.2.4. 7.2.4 current schedule of anticipated milestones; and; 8.2.5. 7.2.5 market plans for introduction of Licensed Products; and 8.2.6. 7.2.6 number of full-time equivalent (FTEs) employees or agents (FTEs) working on the development of Licensed Products and overall number of FTEs employed by LicenseeProducts. 8.3. Upon 7.3 Digirad shall also report to Berkeley Lab in its immediately subsequent royalty report on the earlier date of [*** Redacted] after first commercial sale of each Licensed Product in the Effective Date or after U.S. and in each other country. 7.4 After the first commercial sale of a Licensed Product anywhere in the world, Licensee Digirad shall make [*** Redacted] royalty reports to Berkeley Lab on or before [*** Redacted] of each [*** Redacted]. *** Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed separately with the Commission. Each royalty report must cover the most recently completed [*** Redacted] and must show for all sales (or other transfer in accordance with paragraph 2.8):show: 8.3.1. 7.4.1 the Selling Price of each type of Licensed Product sold by LicenseeDigirad; 8.3.2. 7.4.2 the number of each type of Licensed Product sold; 8.3.3. 7.4.3 the royalties, in U.S. dollars, payable under this Agreement on those sales; 8.3.4. 7.4.4 the exchange rates used in calculating the royalty due; 8.3.5. 7.4.5 the royalties on government sales that otherwise would have been due under paragraph 6.12Section 5.10; and 7.4.6 for each sublicense, if any: *** Portions of this page have been omitted pursuant to a request for Confidential Treatment and filed separately with the Commission. 7 of 17 7.4.6.1 the sublicensee;

PROGRESS AND ROYALTY REPORTS. 8.1. 7.1 Beginning [*** Redacted] June 1, 1999 and [*** Redacted] semi-annually thereafter, Licensee Digirad shall submit to Berkley Berkeley Lab a progress report covering LicenseeDigirad's activities related to the development and testing of all Licensed Products and the obtaining of the governmental approvals necessary for marketing. Licensee Digirad shall make these progress reports until commercial sales of the for each Licensed Product startuntil the first commercial sale of that Licensed Product occurs anywhere in the world. 8.2. 7.2 The progress reports Licensee Digirad submits under paragraph 8.1 Section 7.1 must include, but not be limited to, the following topics: 8.2.1. 7.2.1 summary of work completed related to the requirements of paragraph 7.4Section 6.4; 8.2.2. 7.2.2 key scientific discoveries; 8.2.3. 7.2.3 summary of work in progress; 8.2.4. 7.2.4 current schedule of anticipated milestones; and; 8.2.5. 7.2.5 market plans for introduction of Licensed Products; and 8.2.6. 7.2.6 number of full-time equivalent (FTEs) employees or agents (FTEs) working on the development of Licensed Products and overall number of FTEs employed by LicenseeProducts. 8.3. Upon 7.3 Digirad shall also report to Berkeley Lab in its immediately subsequent royalty report on the earlier date of [*** Redacted] after first commercial sale of each Licensed Product in the Effective Date or after U.S. and in each other country. 7.4 After the first commercial sale of a Licensed Product anywhere in the world, Licensee Digirad shall make [*** Redacted] quarterly royalty reports to Berkeley Lab on or before [*** Redacted] February 28, May 31, August 31 and November 30 of each [*** Redacted]. *** Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed separately with the Commissionyear. Each royalty report must cover the most recently completed [*** Redacted] calendar quarter and must show for all sales (or other transfer in accordance with paragraph 2.8):show: 8.3.1. 7.4.1 the Selling Price of each type of Licensed Product sold by LicenseeDigirad; 8.3.2. 7.4.2 the number of each type of Licensed Product sold; 8.3.3. 7.4.3 the royalties, in U.S. dollars, payable under this Agreement on those sales; 8.3.4. 7.4.4 the exchange rates used in calculating the royalty due; 8.3.5. 7.4.5 the royalties on government sales that otherwise would have been due under paragraph 6.12Section 5.10; and 7.4.6 for each sublicense, if any: 7 of 17 7.4.6.1 the sublicensee; 7.4.6.2 the number, description, and aggregate Selling Prices of Licensed Products that the sublicensee sold or otherwise disposed of; 7.4.6.3 the exchange rates used in calculating the royalties due Berkeley Lab from the sublicensee's sales. 7.5 If no sales of Licensed Products have been made during any reporting period, Digirad shall make a statement to this effect.

PROGRESS AND ROYALTY REPORTS. 8.1. 8.1 Beginning [*** Redacted] September 30, 2003, and [*** Redacted] semi-annually thereafter, Licensee shall submit to Berkley Lab The Regents a written progress report covering Licensee's (and any Affiliate's or sublicensee's) activities related to the development and testing of all Licensed Products and the obtaining of the governmental approvals necessary for marketing. Licensee Progress reports are required until the first commercial sale of a Licensed Product occurs in the U.S. and shall make these progress reports until be again required if commercial sales of all Licensed Products are suspended or discontinued. All reports under this Article 7 shall be deemed the Licensed Product startConfidential Information of Licensee pursuant to the terms of Article 28 (Secrecy). 8.2. The progress 8.2 Progress reports Licensee submits submitted under paragraph Paragraph 8.1 must shall include, but are not be limited to, the following topics: 8.2.1. 8.2.1 a statement specifically addressing each diligence requirement of Article 7 (DUE DILIGENCE), 8.2.2 summary of work completed related to the requirements of paragraph 7.4;completed, 8.2.2. 8.2.3 key scientific discoveries; 8.2.3. 8.2.4 summary of work in progress;, 8.2.4. 8.2.5 current schedule of anticipated events or milestones; and, 8.2.5. 8.2.6 market plans for introduction of Licensed Products; Product, and 8.2.6. number 8.2.7 a summary of full-time equivalent employees or agents resources (FTEsdollar value) working on spent in the development of Licensed Products and overall number of FTEs employed by Licenseereporting period. 8.3. Upon 8.3 Licensee has a continuing responsibility to keep The Regents informed of the earlier large or small business entity status (as defined by the U.S. Patent and Trademark Office) of [*** Redacted] after itself and its sublicensees and Affiliates. 8.4 Licensee shall report to The Regents in its immediately subsequent progress and royalty report the Effective Date or after date of first commercial sale of a Licensed Product in each country. 8.5 After the first commercial sale of a Licensed Product anywhere in the world, Licensee shall make quarterly royalty reports to The Regents on or before each February 28 (for the quarter ending December 31) May 31 (for the quarter ending March 31), August 31 (for the quarter ending June 30) and November 30 (for the quarter ending September 30) of each year. Each royalty report will cover Licensee's most recently completed calendar quarter and will show: 8.5.1 the gross sales and Net Sales of Licensed Product sold during the most recently completed calendar quarter; 8.5.2 the number of each type of Licensed Product sold; 8.5.3 the royalties, in U.S. dollars, payable with respect to sales of Licensed Product; 8.5.4 the method used to calculate the royalty; 8.5.5 the exchange rates used; 8.5.6 a justification in writing for the values of A and B along with the method of their calculation if combination products are sold and Licensee wishes to apply the fraction [*** Redacted] royalty reports as discussed in Paragraph 1.4 "Net Sales"; and 8.5.7 written evidence of license agreements with third parties that include the third parties' agreement to Berkeley Lab on or before [*** Redacted] a proportional reduction in royalties due, evidence of each [*** Redacted]. payments made to such third *** Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed separately with the Commission. Each parties under such license agreements, and the method of calculation of the reduced royalty report must cover the most recently completed [*** Redacted] and must show for all rate if Licensee wishes to implement a reduction in royalties due under Paragraph 6.2. 8.6 If no sales (or other transfer in accordance with paragraph 2.8): 8.3.1. the Selling Price of each type of Licensed Product sold by Licensee; 8.3.2. the number of each type of Licensed Product sold; 8.3.3. the royalties, in U.S. dollars, payable under this Agreement on those sales; 8.3.4. the exchange rates used in calculating the royalty due; 8.3.5. the royalties on government sales that otherwise would have been due under paragraph 6.12; andmade during any reporting period, then a statement to this effect is required.