CONFIDENTIAL DRAFT FOR PURPOSES OF SETTLEMENT DISCUSSIONS ONLY September 3, 2013 William H. Gates Dear Bill: RE: Letter of Agreement Regarding Purchase of Partnership Interest This letter sets forth the agreement by and between you, William H. Gates ("Gates"), and me, Dr. Boris Nikolic ("Dr. Nikolic"), with respect to the purchase by Gates from Dr. Nikolic of Dr. Nikolic's interest in a partnership, under the terms of which we discussed potential investment in a range up to $100 Million in certain investments discovered and researched by Dr. Nikolic (the "Investment Entity"). Only two of such investments, totaling Twenty Million Dollars, as detailed below, were ever made. The partnership was formed effective April 1, 2013. We now agree to dissolve and wind up the Investment Entity and Gates shall purchase from Dr. Nikolic Dr. Nikolic's interest in the Investment Entity. Gates and Dr. Nikolic have agreed as follows: Dissolution and Winding Up the Partnership SE251912 vl EFTA_R1_00438087 EFTA01961275
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Sale and Purchase of Interest in Investment Entity - 5 - EFTA_R1_00438091 EFTA01961279
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Advance 1 I - 20 - EFTA_R1_00436106 EFTA01961294
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Foundation Medicine, Inc. and ResearchGate GmbH - 43 - EFTA_R1_00436129 EFTA01961317
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Investment Entity Payment Demands At any time and from time to time commencing on the date hereof and continuing through and including September 3, 2016 (the "Payment Period"), Dr. Nikolic shall have the right, exercisable by written notice to Gates, to demand payment of the increase in value in respect of all or a portion of the Foundation Medicine Investment and/or up to fifty percent (50%) or a portion of fifty percent (50%) of the ResearchGate Investment (an "Investment Entity Payment Demand"). Dr. Nikolic may deliver to Gates up to an aggregate of four (4) Investment Entity Payment Demands during the Payment Period. The amount of each Investment Entity Payment Demand shall be equal to the sum of: I. The portion of the Foundation Medicine Investment, expressed as a percentage, as to which Dr. Nikolic in his sole discretion elects to make such Investment Entity Payment Demand (provided it is equal to or smaller than any percentage remaining after any prior partial percentage Investment Entity Payment Demands), multiplied by the difference of (a) the fair market value of the Foundation Medicine Investment (including all dividends, payments, distributions, securities and other items of value at any time previously or hereafter distributed or paid by Foundation Medicine in respect of such investment) as of the date of such Investment Entity Payment Demand, less (b) Ten Million Dollars (510,000,000) and less any prior payments, including the Advances; and 2. The portion of the ResearchGate Investment, expressed as a percentage, as to which Dr. Nikolic in his sole discretion elects to make such Investment Entity Payment Demand (provided it is equal to or smaller than any percentage remaining after any prior partial percentage Investment Entity Payment Demands), multiplied by the difference of (a) the fair market value of the ResearchGate Investment (including all dividends, payments, distributions, securities and other items of value at any time previously or hereafter distributed or paid by ResearchGate in - 63 - EFTA_R1_00438149 EFTA01961337
3. respect of such investment) as of the date of such Investment Entity Payment Demand, less (b) Ten Million Dollars ($10,000,000) and any prior payments, including the Advances. The portion of the Foundation Medicine Investment as to which any Investment Entity Payment Demand may be made at any given time may not exceed the difference of 100% less the aggregate percentage of the Foundation Medicine Investment as to which all then prior Investment Entity Payment Demands were paid by Gates to Dr. Nikolic. The portion of the ResearchGate Investment as to which any Investment Entity Payment Demand may be made at any given time may not exceed the difference of 50% less the aggregate percentage of the ResearchGate Investment as to which all then prior Investment Entity Payment Demands were paid by Gates to Dr. Nikolic. In the event that all of the shares of Foundation Medicine or ResearchGate are acquired by a third party entity, not affiliated with either of the parties to this Agreement, then the remaining interest of Dr. Nikolic under this Agreement, in the acquired company, shall be calculated immediately following the date on which the final interest of the Gates Purchaser is known and such amount shall be paid out by Gates to Dr. Nikolic and Dr. Nikolic shall have no further claim under this Agreement as to that particular investment. Fair Market Values - 64 - EFTA_R1_00436150 EFTA01961338
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