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   &lt;div align="justify" style="font-size: 10pt; margin-top: 12pt"&gt;&lt;b&gt;Note 10 &amp;#8212; Contingencies&lt;/b&gt;
   &lt;/div&gt;
   &lt;div align="justify" style="font-size: 10pt; margin-top: 6pt"&gt;&lt;b&gt;&lt;i&gt;Contingent Consideration&lt;/i&gt;&lt;/b&gt;
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   &lt;div align="justify" style="font-size: 10pt; margin-top: 6pt"&gt;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;In connection with the Company&amp;#8217;s acquisition of Prodesse, the Company may be obligated to make
   certain payments to former Prodesse securityholders of up to $25.0&amp;#160;million. The aggregate fair
   value of these payments was $11.9&amp;#160;million as of June&amp;#160;30, 2010, and is reflected in the Company&amp;#8217;s
   consolidated balance sheets under the captions &amp;#8220;Other accrued expenses&amp;#8221; and &amp;#8220;Other long-term
   liabilities.&amp;#8221; On July&amp;#160;26, 2010, the Company received FDA clearance of its ProFAST&amp;#8482;&amp;#043; assay, thereby
   satisfying one of the acquisition-related milestones and triggering a $10&amp;#160;million payment to former
   Prodesse securityholders, the fair value of which was accrued as of June&amp;#160;30, 2010. The Company
   believes future milestone payments, if any, will occur between the fourth quarter of 2010 and the
   second quarter of 2012.
   &lt;/div&gt;
   &lt;div align="justify" style="font-size: 10pt; margin-top: 12pt"&gt;&lt;b&gt;&lt;i&gt;Litigation&lt;/i&gt;&lt;/b&gt;
   &lt;/div&gt;
   &lt;div align="justify" style="font-size: 10pt; margin-top: 6pt"&gt;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;The Company is a party to the following litigation and may also be involved in other
   litigation in the ordinary course of business. The Company intends to vigorously defend its
   interests in these matters. The Company expects that the resolution of these matters will not have
   a material adverse effect on its business, financial condition or results of operations. However,
   due to the uncertainties inherent in litigation, no assurance can be given as to the outcome of
   these proceedings.
   &lt;/div&gt;
   &lt;div align="justify" style="font-size: 10pt; margin-top: 12pt"&gt;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;
   &lt;i&gt;Digene Corporation&lt;/i&gt;
   &lt;/div&gt;
   &lt;div align="justify" style="font-size: 10pt; margin-top: 6pt"&gt;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;In December&amp;#160;2006, Digene Corporation (&amp;#8220;Digene&amp;#8221;) filed a demand for binding arbitration against
   F. Hoffmann-La Roche Ltd. and Roche Molecular Systems, Inc. (collectively, &amp;#8220;Roche&amp;#8221;), with the
   International Centre for Dispute Resolution (&amp;#8220;ICDR&amp;#8221;) of the American Arbitration Association in New
   York. In July&amp;#160;2007, the ICDR arbitrators granted the Company&amp;#8217;s petition to join the arbitration.
   Digene&amp;#8217;s arbitration demand challenged the validity of the February&amp;#160;2005 supply and purchase
   agreement between the Company and Roche. Under the supply and purchase agreement, Roche
   manufactures and supplies the Company with human papillomavirus (&amp;#8220;HPV&amp;#8221;) oligonucleotide products.
   Digene&amp;#8217;s demand asserted, among other things, that Roche materially breached a cross-license
   agreement between Roche and Digene by granting the Company an improper sublicense and sought a
   determination that the supply and purchase agreement is null and void.
   &lt;/div&gt;
   &lt;div align="justify" style="font-size: 10pt; margin-top: 6pt"&gt;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;In April&amp;#160;2009, following the arbitration hearing, a three-member arbitration panel from the
   ICDR issued an interim award rejecting all claims asserted by Digene (now Qiagen Gaithersburg,
   Inc.).
   &lt;/div&gt;
   &lt;div align="justify" style="font-size: 10pt; margin-top: 6pt"&gt;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;In August&amp;#160;2009, the arbitrators issued their final arbitration award, which confirmed the
   interim award and also granted the Company&amp;#8217;s motion to recover attorneys&amp;#8217; fees and costs from
   Digene in the amount of approximately $2.9&amp;#160;million. The Company filed a petition to confirm the
   arbitration award in the U.S. District Court for the Southern District of New York and Digene filed
   a petition to vacate or modify the award. A hearing on the petitions was held in December&amp;#160;2009 and
   a ruling has not yet been issued. The Company will record the $2.9&amp;#160;million as an offset to general
   and administrative expense upon cash receipt.
   &lt;/div&gt;
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   &lt;div align="justify" style="font-size: 10pt; margin-top: 12pt"&gt;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&lt;i&gt;Becton, Dickinson and Company&lt;/i&gt;
   &lt;/div&gt;
   &lt;div align="justify" style="font-size: 10pt; margin-top: 6pt"&gt;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;In October&amp;#160;2009, the Company filed a complaint for patent infringement against Becton,
   Dickinson and Company (&amp;#8220;BD&amp;#8221;) in the U.S. District Court for the Southern District of California.
   The complaint alleges that BD&amp;#8217;s Viper&lt;font style="font-variant: small-caps"&gt;&lt;sup style="font-size: 85%; vertical-align: text-top"&gt;tm&lt;/sup&gt;&lt;/font&gt; XTR&lt;sup style="font-size: 85%; vertical-align: text-top"&gt;TM&lt;/sup&gt; testing system
   infringes five of the Company&amp;#8217;s U.S. patents covering automated processes for preparing, amplifying
   and detecting nucleic acid targets. The complaint also alleges that BD&amp;#8217;s ProbeTec&lt;sup style="font-size: 85%; vertical-align: text-top"&gt;TM&lt;/sup&gt;
   Female Endocervical and Male Urethral Specimen Collection Kits for Amplified Chlamydia
   trachomatis/Neisseria gonorrhoeae (CT/GC) DNA assays used with the Viper XTR testing system
   infringe two of the Company&amp;#8217;s U.S. patents covering penetrable caps for specimen collection tubes.
   Finally, the complaint alleges that BD has infringed the Company&amp;#8217;s U.S. patent on methods and kits
   for destroying the ability of a nucleic acid to be amplified. The complaint seeks monetary damages
   and injunctive relief.
   &lt;/div&gt;
   &lt;div align="justify" style="font-size: 10pt; margin-top: 6pt"&gt;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;In March&amp;#160;2010, the Company filed a second complaint for patent infringement against BD in the
   U.S. District Court for the Southern District of California. The complaint alleges that BD&amp;#8217;s BD MAX
   System&lt;sup style="font-size: 85%; vertical-align: text-top"&gt;TM&lt;/sup&gt; (formerly known as the HandyLab Jaguar system) infringes four of the Company&amp;#8217;s
   U.S. patents covering automated processes for preparing, amplifying and detecting nucleic acid
   targets. The complaint seeks monetary damages and injunctive relief. In June&amp;#160;2010, these two
   actions were consolidated into a single legal proceeding. There can be no assurances as to the
   final outcome of the litigation.
   &lt;/div&gt;
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