CONFIDENTIAL

 

Exhibit 10.1

 

***Text Omitted and Filed Separately

with the Securities and Exchange Commission.

Confidential Treatment Requested

Under 17 C.F.R. Sections 200.80(b)(4)

and 240.24b-2.

 

SECOND AMENDMENT
TO THE
COLLABORATIVE RESEARCH AND LICENSE AGREEMENT

 

THIS SECOND AMENDMENT TO THE COLLABORATIVE RESEARCH AND LICENSE AGREEMENT (the
“Second Amendment”) is made by and between SENOMYX, INC. (“Senomyx”), a Delaware
corporation, having a principal place of business at 11099 North Torrey Pines
Road, La Jolla, California 92037, and NESTEC, Ltd. (“Nestlé”), a Swiss company,
having a principal place of business at Avenue Nestlé 55, CH-1800 Vevey,
Switzerland.

 

Whereas, Senomyx and Nestlé entered into that certain Collaborative Research and
License Agreement dated as of April 18, 2002, as amended by that certain First
Amendment dated October 23, 2003, (collectively, the “Agreement”) to collaborate
in the following research and development programs: (i) to discover compounds
that enhance the [***] taste of products in defined fields; and (ii) to discover
compounds that enhance and/or mimic the taste of [***] in defined fields
(capitalized terms used but not otherwise defined in this Second Amendment shall
have the meanings given such terms in the Agreement); and

 

WHEREAS, the parties wish to amend the Agreement to extend Collaborative Period
for the [***] Program in the manner set forth in this First Amendment.

 

NOW, THEREFORE, in consideration of the foregoing premises and of the covenants,
representations and agreements set forth below, the parties hereby agree to
amend the Agreement as follows:

 

1.             The following definitions of Appendix A of the Agreement are
hereby amended and restated herein. All other definitions in the Agreement will
remain unchanged.

 

“Collaborative Period” means (i) in the case of the [***] Program the period
beginning on the Effective Date and ending seventy-two (72) months thereafter,
unless earlier terminated in accordance with Section 14; (ii) in the case of the
[***] Program the period beginning on the Effective Date and ending thirty-six
(36) months thereafter, unless earlier terminated in accordance with Section
14.”

 

“Go/No-Go Decision Date” means April 18, 2006.”

 

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2.             The first two sentences of Section 7.1 of the Agreement are
hereby amended and restated in their entirety as follows:

 

“Annual Research Support. Each year during the Collaborative Period, Nestlé will
pay Senomyx as follows:

 

(A)                                First Three Years of Collaborative Period. 
[***] per year for first three years of the Collaborative Programs, [***] for
the [***] Program and [***] for the [***] Program.  Such payments will be made
in advance and on an equal quarterly basis.

 

(B)                                  Second Three Years of the Collaborative
Period.

 

a.               [***] per month for the second three years of the Collaborative
Period for the [***] Program until achievement of the following interim goal: 
identification of at least one Compound that [***] (“Interim Goal”).

 

b.              From and after achievement of the Interim Goal, [***] per month
for the remainder of the Collaborative Period for the [***] Program, provided,
however, that if Senomyx fails to achieve [***] (as defined below) within [***]
of achievement of the Interim Goal, then the research funding will be [***] per
month until the earlier of: (i) the end of the Collaborative Period for the
[***] Program; or (ii) achievement of [***], whereupon funding will be increased
again to [***] per month for the remainder of the Collaborative Period for the
[***] Program.   [***] as used herein means identification of at least one
Compound that [***].

 

c.               Payments under this Section 7.1(B) shall be paid quarterly in
advance.  Payments for any period which is for less than one (1) month of the
Collaborative Period will be a pro rata portion of the monthly installment based
on the actual number of days in such month.

 

d.              Any adjustments in funding due to achievement of the milestone
set forth in (a) above will be made by Nestlé within [***] days of milestone
achievement or with the next quarterly payment, whichever is earlier.”

 

The remainder of Section 7.1 shall remain unchanged.

 

3.             Section 8.4 is hereby added to the Agreement as follows:

 

“Research Information.

 

(A)         During the Collaborative Period for the [***] Program, Nestlé may
from time to time determine the [***] and provide the resulting [***]
information on the [***] to Senomyx (“[***] Information”) for use in studies
relating to [***]. In certain cases, Senomyx may assist Nestlé in the [***]
determination of [***], for example, to [***] determination. Nestlé hereby
grants to Senomyx a non-exclusive nontransferable (except as provided under
Section 17.12) worldwide license to use [***] Information in the [***] Program
and in [***]

 

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related collaborative programs with its Affiliates and with Third Parties
including, but not limited to, collaborative programs to discover compounds that
enhance the [***] taste of products outside the [***] Field.

 

(B)           Notwithstanding anything to the contrary in this Agreement, to the
extent that any Know-How or Inventions are generated, developed or discovered
from the [***] Information [***] on or after the date that this Second Amendment
has been signed by all parties to it, such Inventions shall be considered
Senomyx Inventions and will constitute Senomyx Technology.

 

(C)           Nestlé hereby represents and warrants to Senomyx that (i) it shall
use its commercially reasonable efforts to ensure that the [***] Information
will be obtained and provided in compliance with all applicable laws, statutes
and regulations; (ii) Nestlé is authorised to deliver [***] Information for the
uses and purposes set forth in this Agreement; and (iii) Nestlé is not aware of
any Affiliate (with the exception of Nestlé SA) or Third Party that has any
ownership interest in any intellectual property rights with respect to the [***]
Information.

 

(D)          Senomyx, its Affiliates and its Third Party licensees may sell any
products developed by Senomyx using, or which are derived from or incorporate,
[***] Information without payment or other obligation to Nestlé or any third
party.”

 

4.             Section 14.2 of the Agreement is hereby amended and restated in
its entirety as follows:

 

“Nestlé will have the right to terminate this Agreement without cause at any
time on or after the Go/No-Go Decision Date upon sixty (60) days written notice;
provided, however, that if such termination occurs after the Go/No-Go Decision
Date and prior to the end of the Collaborative Period, Nestlé will provide
additional research funding in accordance with Section 7.1 for a period of six
(6) months from the date of written notice of termination (for purposes of
clarity, such payment will be a pro rata portion of the research funding rate
set forth in Section 7.1).”

 

5.             Section 15.3 of the Agreement is hereby amended and restated in
its entirety as follows:

 

“Survival.  The obligations and rights of the parties under Sections 7.9, 8.4,
9.1 through 9.7, 10, 15, 16.2(B), 16.3, 16.4, 17, and Appendix A, will survive
termination of this Agreement.”

 

6.             The terms and conditions of the Appendix B Research Plan for the
[***] Program is hereby amended and restated in its entirety as attached hereto.
The terms and conditions of the Appendix B Research Plan for the [***] Program
shall remain unchanged.

 

7.             Senomyx will issue a press release to announce the execution of
this Second Amendment and the material terms; provided, however, that the extent
of disclosure of such material terms shall be no more than is required to comply
with applicable SEC disclosure

 

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requirements and otherwise subject to the prior written consent of Nestlé.
Thereafter, Nestlé and Senomyx may each disclose to Third Parties the
information contained in such press release without the need for further
approval by the other party.

 

8.             Except as specifically amended by this Second Amendment, the
terms and conditions of the Agreement shall remain in full force and effect.

 

9.             This Second Amendment will be governed by the laws of the State
of California, U.S.A., as such laws are applied to contracts entered into and to
be performed entirely within such State.

 

10.          This Second Amendment may be executed in two or more counterparts,
each of which shall be deemed an original, but all of which together shall
constitute one and the same instrument.

 

IN WITNESS WHEREOF, the parties have executed this Second Amendment effective as
of April 17, 2005.

 

 

 

NESTEC LTD.

 

 

 

By:

/s/ Peter Van Bladeren

 

 

 

Title:

Director NRC

 

 

 

Date:

20 April, 2005

 

 

 

SENOMYX, INC.

 

 

 

By:

/s/ Kent Snyder

 

 

 

Title:

President and CEO

 

 

 

Date:

April 20, 2005

 

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APPENDIX B

 

COLLABORATIVE RESEARCH AND LICENSE AGREEMENT

 

AMENDED AND RESTATED RESEARCH PLAN FOR [***] PROGRAM

 

 

Nestlé Responsibility

 

Steering Committee
Responsibility

 

Senomyx
Responsibility

 

Timeline

1. Evaluate [***] from [***].

 

 

 

1. Evaluate [***] from [***] samples

 

[***]

 

 

 

 

 

 

2. Provide to Senomyx [***] information on [***] from [***].

 

 

 

2. Evaluate [***] from [***] samples

 

1. Present additional information on [***].

 

1. Hold Steering Committee Meeting.

 

1. Present progress and status of the project.

 

[***]

 

 

 

 

 

 

 

 

2. Review minutes and action items from previous meeting.

 

 

 

 

 

1. Communicate on ad hoc basis between quarterly Steering Committee meetings.

 

1. Identify a [***] form of [***] 

 

[***]

 

 

 

 

2. Initiate [***] focused [***].

 

 

 

 

 

 

 

 

 

 

 

3. Identify [***] compounds in the [***].

 

 

 

 

 

 

 

 

 

 

 

4. Conduct [***] on active [***].

 

 

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Nestlé Responsibility

 

Steering Committee
Responsibility

 

Senomyx
Responsibility

 

Timeline

1. Review data on [***].

 

1. Hold Steering Committee Meeting.

 

1. Present progress and status of project.

 

[***]

 

 

 

 

 

 

 

 

2. Review and approve minutes from previous meeting.

 

2. Report results of [***].

 

 

 

 

 

 

 

 

 

 

 

 

1. Identify [***] Compound(s).

 

[***] 

 

 

 

 

 

 

 

 

 

 

2. Provide Nestlé with a sample of the [***] Compound(s).

 

 

 

 

 

 

 

 

 

 

 

3. Initiate [***] of [***] Compound(s).

 

1. Review [***] results and general progress on project.

 

1. Hold Steering Committee Meeting.

 

1. Share progress and status of project.

 

[***]

 

 

 

 

 

 

 

 

2. Review and approve minutes from previous meeting

 

 

 

1. Nestlé to evaluate [***] containing [***] Compound(s).

 

 

 

1. Continue [***] of compounds.

 

[***]

 

 

 

 

2. Test compounds for [***].

 

 

 

 

 

 

 

 

 

 

 

3. Prepare [***].

 

 

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Nestlé Responsibility

 

Steering Committee
Responsibility

 

Senomyx
Responsibility

 

Timeline

1. Review specific taste testing results and general progress on project.

 

1. Hold Steering Committee Meeting.

 

1. Share progress and status of project.

 

[***]

 

 

 

 

 

 

 

 

2. Review and approve minutes from previous meeting.

 

2. Submit to Nestlé [***] on Compounds.

 

1. Nestlé to evaluate [***] and conduct [***] containing Compound(s).

 

 

 

1. Senomyx to provide Nestlé with samples of Compounds in [***] for evaluation.

 

[***]

1. Nestlé shares comments on Compounds in [***] and other [***] results.

 

1. Hold Steering Committee Meeting.

 

1. Share progress and status of project.

 

[***]

 

 

2. Review and approve minutes from previous meeting.

 

 

 

 

 

3. Select [***] for [***].

 

 

 

1. Nestlé to present commercialization plan to Senomyx.

 

 

 

1. Initiate [***] of [***] Compound(s) for [***]. .

 

[***]

 

 

 

 

2. Schedule [***] with [***]

 

 

 

 

 

1. Conduct [***] studies to support [***].

 

[***]

 

 

 

 

1. Submit [***] on [***] Compound(s).

 

[***]

 

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Nestlé Responsibility

 

Steering Committee
Responsibility

 

Senomyx
Responsibility

 

Timeline

 

 

 

 

1. Receive [***] on [***] Compound(s).

 

[***]

 

 

 

 

1. Initiate [***] and other [***] based on [***].

 

[***]

 

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