Exhibit 10.1
 
DATED            OCTOBER 2008

(1) CANCER RESEARCH TECHNOLOGY LIMITED

AND

(2) PERCIPIO BIOTHERAPEUTICS

Patent and Know How Licence

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THIS AGREEMENT is made the________ day of October 2008
 
BETWEEN:
 
(1)  
Cancer Research Technology Limited, a company registered in England and Wales
under number 1626049 with registered office at Sardinia House, Sardinia Street,
London WC2A 3NL, England (“CRT”); and

(2)  
Percipio Biotherapeutics, Inc. a company incorporated in the State of Nevada,
United States of America whose principal place of business is at 10990 Wilshire
Blvd., Suite 1410, Los Angeles, California, 90024, United States of America
(“Percipio”).

RECITALS
       

(A) CRT is an oncology focused technology transfer and development company.    
(B)
CRT is wholly owned by Cancer Research UK, a company registered under number
4325234 and registered charity number 1089464. Cancer Research UK was formed as
a result of the merger on 4 February 2002 of two charities: the Cancer Research
Campaign (“CRC”) and Imperial Cancer Research Fund.

 
(C)
CRC funded research concerning the [********] in the laboratories of
[****************] at the [*******************************] (the “University”).
Pursuant to a Research Collaboration and Option Agreement dated 27th July 2000
made between CRT (under its former name of Cancer Research Campaign Technology
Limited), Viragen (Scotland) Limited and the University, as amended by the
Novation Agreement dated 7th September 2001 (the “Collaboration Agreement”), the
research led to a novel therapeutic use of [**********] antibodies (the
“Invention”) and CRT is the registered proprietor of the application(s) for
patent(s) described in Schedule 2 (the ”Scheduled Patents”) in respect of
the  Invention. Under a letter agreement dated 11th November 2003 between
Viragen, Inc. and CRT (the “Letter Agreement”), CRT granted a limited licence to
Viragen, Inc. to certain intellectual property in respect of the Invention. The
Collaboration Agreement and Letter Agreement expired and Viragen, Inc. (the
parent company of Viragen (Scotland) Limited), entered into a patent and know
how licence agreement dated 27 April 2005 (the “2005 Licence”) under which CRT
granted Viragen, Inc. an exclusive licence to the Scheduled Patents, Licensed
Know How (defined in Clause 1) and Licensed Materials (defined in Clause
1).  During the term of the Letter Agreement and 2005 Licence, Viragen, Inc.
(either itself or through its wholly owned subsidiary Viragen (Scotland)
Limited) generated certain Viragen Intellectual Property (defined in Clause 1).

 
(D)
Following the liquidation of Viragen, Inc. and Viragen (Scotland) Limited, the
2005 Licence was terminated in accordance with its terms by CRT. In the
interests of ensuring the further development of the Invention, CRT waived its
rights to call for Viragen, Inc.’s rights in the Viragen Intellectual Property
(as defined in the 2005 Licence) to be assigned to CRT, and at the request of
Viragen Inc.’s liquidators CRT agreed to enter into negotiations to conclude a
licence in materially similar terms to the 2005 Licence with the purchasers,
from the liquidators, of Viragen, Inc. and Viragen (Scotland) Ltd.’s assets to
ensure the commercial exploitation of the Invention and [*************] antibody
programme to develop Products (as defined in Clause 1) based upon the
exploitation of its rights under the 2005 Licence by Viragen, Inc (including
through the use and development of Viragen Intellectual Property).

 
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 (E)
On the basis of the arrangements described in paragraph D, (i) Viragen
Intellectual Property has been assigned to Hamilton Atlantic (a company
organized in the Cayman Islands) pursuant to an Assignation executed by Hamilton
Atlantic on  6 May  2008; and (ii) Hamilton Atlantic has granted Percipio (under
its former name of Sunburst Acquisitions III, Inc.) an exclusive worldwide right
and licence under all of its rights in the Viragen Intellectual Property to
research, develop, use, keep, make, have made, market, distribute, sell, offer
to sell, advertise or otherwise dispose of licensed products pursuant to a
licence agreement dated 21st August 2008 (the “Sunburst Licence Agreement”).

 
(F)
CRT and Hamilton Atlantic have entered into a separate agreement addressing the
consequences of termination of this Agreement.

 
(G)
CRT has agreed to grant Percipio an exclusive licence under the Licensed Patents
(defined in Clause 1), the Licensed Know How and the Licensed Materials upon the
terms and conditions set out in this Agreement.

NOW IT IS HEREBY AGREED as follows:
 
1.  
DEFINITIONS AND INTERPRETATION

 
1.1  
In this Agreement and in the Schedules to this Agreement the following words and
phrases shall have the following meanings:

 
“Affiliate”
means, with respect to a Party, any company, corporation, partnership or other
entity, which directly or indirectly Controls, or is controlled by, or is under
the common control with such Party including as a subsidiary, parent or holding
company of such Party; and the term “Control” means the ownership of more than
fifty per cent (50%) of the issued share capital or the legal power to direct or
cause the direction of the general management and policies of the relevant
Party.
“Agreement”
means this document entitled “Patent and Know How Licence” and any and all
schedules, appendices and other addenda to it as may be varied or otherwise
altered or amended from time to time in accordance with the provisions of Clause
13.3.
“Business Day”
means a day other than a Saturday, Sunday, bank or other public holiday in
England.
“Commencement Date”
means the date first above written.
“Competent Authority”
means any local or national agency, authority, department, inspectorate,
minister, ministry official or public or statutory person (whether autonomous or
not) of any government or of any country having jurisdiction over this Agreement
or of any of the Parties or over the development or marketing of medicinal
products including, but not limited to, the European Commission, the European
Court of Justice and the Food and Drug Administration of the United States of
America.

 
 
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“Confidential Information”
means any and all information which is identified and treated by the disclosing
Party as secret and confidential or which, by reason of its character or the
circumstances or manner of its disclosure, is evidently secret and confidential
and which the disclosing Party from time to time discloses to the recipient
Party, whether orally, in writing, in digital form, in the form of machine
readable code or any other physical medium which relates to the disclosing
Party, its business activities and including, but not limited to Know How,
financial information (except that published in audited accounts), business
strategies or intentions, marketing plans or information, formulae, inventions
or product or services development.
“Development Plan”
means the programme for the development of Products to be undertaken by or on
behalf of Percipio as more particularly set out in Schedule 1 and as may be
amended from time to time by agreement of the Parties in writing.
“European Economic Area”
means those countries that are members of the European Economic Area as
constituted at the Commencement Date.
“Field”
means the field of use of [********] for the immunotherapeutic treatment and/or
diagnosis of diseases.
“Financing Event”
means the receipt by Percipio of at least [****************], in total, whether
in a single tranche or cumulatively, in cash.
“Force Majeure”
means in relation to either Party any event or circumstance which is beyond the
reasonable control of that Party, which that Party could not reasonably be
expected to have taken into account at the Commencement Date and which results
in or causes the failure of that Party to perform any or all of its obligations
under this Agreement including an act of God, lightning, fire, storm, flood,
earthquake, accumulation of snow or ice, lack of water arising from weather or
environmental problems, strike, lockout or other industrial disturbance, war,
terrorist act, blockade, revolution, riot insurrection, civil commotion, public
demonstration, sabotage, act of vandalism, prevention from or hindrance in
obtaining in any way materials, energy or other supplies, explosion, fault or
failure of plant or machinery, governmental restraint, act of legislature and
directive or requirement of a Competent Authority governing any Party provided
that lack of funds shall not be interpreted as a cause beyond the reasonable
control of that Party.

 
 
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“Know How”
means technical and other information which is not in the public domain
including, ideas, concepts, inventions, discoveries, data, formulae,
specifications, information relating to Materials (including Licensed
Materials), procedures for experiments and tests and results of experimentation
and testing, results of research and development including laboratory records
and data analyses which is secret, substantial and identifiable.
“Licensed Intellectual Property”
means the Licensed Know How, the Licensed Materials and the Licensed Patents.
“Licensed Know How”
means any and all Know How set out in Schedule 3 to this Agreement.
“Licensed Materials”
means (i) the mouse monoclonal antibody called [******] and (ii) the hybridoma
[*****************************] owned by CRT.
“Licensed Patents”
means (i)  Patent Application Number PCT/GB2003/005163 (and all foreign
equivalents thereof); (ii) any and all other patent application(s), patents,
divisionals, continuations, continuations in part and improvements arising
therefrom; and (iii) any and all other Patent Rights obtained in pursuance of or
deriving priority from the Patent Rights listed in items (i) and (ii) hereof.  A
list of Patent Rights as of the Commencement Date is set forth in Schedule 2.
“Major Market”
means each of the following groups of countries:
 
(i)[*****************************];
 
(ii)[*****************************]; and
 
(iii)[*****************************].
“Marketing Plan”
has the meaning set forth in Clause 3.5.

 
 
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“Material”
means any chemical or biological substance directly related to the Licensed
Materials, including any:
 
(i)organic or inorganic chemical element or compound;
 
(ii)nucleotide or nucleotide sequence including DNA and RNA sequences;
 
(iii)gene;
 
(iv)vector or construct including plasmids, phages, or viruses;
 
(v)host organism including bacteria, fungi, algae, protozoa and hybridomas;
 
(vi)eukaryotic or prokaryotic cell line or expression system or any development
strain or product of that cell line or expression system;
 
(vii)protein including any peptide, amino acid sequence, enzyme, antibody or
protein conferring targeting properties and any fragment of a protein, peptide,
enzyme, or antibody;
 
(viii)drug or pro-drug;
 
(ix)other genetic or biological material or micro-organism; or
 
(x)assay or reagent.
“Net Sales”
means the invoiced amount actually received
[*********************************************].
“Orphan Indication”
means a disease indication which is rare in the general population in the
Territory, as defined by the controlling Competent Authority in the country of
interest, as such definition may be amended from time to time.
“Parties”
means CRT and Percipio (as defined above) and “Party”  shall be construed as any
of them.
“Patent Rights”
means any patent applications, patents, author certificates, inventor
certificates, utility certificates, utility models and all foreign counterparts
of them and includes all divisions, renewals, continuations,
continuations-in-part, extensions, reissues, substitutions, provisional
applications, continued prosecution applications, requests for continued
examinations, re-examinations, confirmations, registrations, revalidations and
additions of or to them, as well as any supplementary protection certificate, or
like form of protection.

 
 
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“Percipio Intellectual Property”
means any Know How, Material or Patent Rights directly related to the
development of antibodies directed against [******] or the Products, whether as
an improvement to the Licensed Intellectual Property and/or Viragen Intellectual
Property or otherwise, discovered, invented, developed, or manufactured as a
result of research undertaken by Percipio itself or its Affiliates or
Sub-licensees or research funded by Percipio but undertaken by a Third Party and
undertaken pursuant to the licence in this Agreement.
“Pivotal Registration Study”
means a clinical study designed to provide the efficacy data required to enable
a new drug application or other like documentation to be filed in the United
States of America  or any Major Market.
“Product”
means any item, thing or process that falls within the scope of a Licensed
Patent or that uses Licensed Know How, or which contains or was developed using
Licensed Materials or any Viragen Intellectual Property.
“Quarter”
means any period of three consecutive calendar months commencing on 1 January, 1
April, 1 July, or 1 October in any year.
“Revenue Share”
[**********************************************]
“SPC”
means a right based on the Licensed Patents or any of them pursuant to which the
holder of the right is entitled to exclude Third Parties from using, making,
having made, selling, advertising or otherwise disposing or offering to dispose
of, importing or keeping the product to which the right relates, such as
Supplementary Protection Certificates in Europe, and any similar right anywhere
in the world.
“Sub-licence”
means a sub-licence of the Licensed Intellectual Property granted by Percipio to
its Affiliate or a Third Party.
[*****************]
[*******************************************]
“Sub-licensee”
means any Third Party or Affiliate of Percipio granted a Sub-licence by Percipio
in accordance with Clause 2.4.
“Territory”
means the world.

 
 
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“Third Party”
means any entity or person other than the Parties or an Affiliate of either of
them.
“Tobacco Party”
means any corporation, company, partnership or other organisation or person with
a material interest in or links to the tobacco industry.
“Viragen Intellectual Property”
means any Know How, Material or Patent Rights directly related to the
development of antibodies directed against [****], whether as an improvement to
the Licensed Intellectual Property or otherwise, discovered, invented,
developed, or manufactured as a result of research undertaken by Viragen, Inc.
itself or its Affiliates or Sub-licensees or research funded by Viragen, Inc.
but undertaken by a Third Party and whether undertaken pursuant to the 2005
Licence or pursuant to the Letter Agreement and included within the Sunburst
Licence Agreement.

1.2  
In this Agreement:

 
1.2.1  
unless the context otherwise requires, all references to a particular Clause or
schedule shall be a reference to that Clause or schedule in or to this Agreement
as it may be amended from time to time pursuant to this Agreement;

 
1.2.2  
the headings are inserted for convenience only and shall be ignored in
construing this Agreement;

 
1.2.3  
unless the contrary intention appears, words importing the masculine gender
shall include the feminine and vice versa and words in the singular include the
plural and vice versa;

 
1.2.4  
unless the contrary intention appears, words denoting “persons” shall include
any individual, partnership, company, corporation, joint venture, trust
association, organisation or other entity, in each case whether or not having
separate legal personality;

 
1.2.5  
the words “include”, “included” and “including” are to be construed without
limitation to the generality of the preceding words; and

 
1.2.6  
reference to any statute or regulation includes any modification or re-enactment
of that statute or regulation.

 
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2.  
GRANT OF LICENCE

 
2.1  
In consideration for the payments to be made by Percipio to CRT pursuant to
Clause 4, CRT hereby grants to Percipio an exclusive worldwide right and licence
under all of its rights in the Licensed Intellectual Property to research,
develop, use, keep, make, have made, market, distribute, sell, offer to sell,
advertise or otherwise dispose of Products in the Field. Percipio hereby
acknowledges that as of the Commencement Date it is already in possession of the
Licensed Know How and Licensed Materials and CRT is under no obligation to
provide further quantities of such Licensed Know How and Licensed Materials.

 
2.2  
Subject to Clause 2.3, the licence granted in Clause 2.1 shall, in relation to a
particular country in the Territory, terminate on:

 
2.2.1  
the expiry of the relevant Licensed Patent in the relevant country; or

 
2.2.2  
ten years after the date that the first therapeutic Product was placed on the
market in such country,

 
whichever is the later.
 
2.3  
It is acknowledged and agreed that:

 
2.3.1  
this Agreement shall be subject to the academic research rights granted to the
University under the Licensed Intellectual Property; and

 
2.3.2  
[******************************************************************].

 
2.4  
Percipio shall have the right to grant Sub-licences of any or all of the rights
granted to it pursuant to Clause 2.1 to a Third Party or an Affiliate if, in
respect of each Sub-licence, Percipio ensures that CRT’s rights under this
Agreement are maintained and that Percipio meets the material terms and
conditions of the Agreement.  In the case of the grant of a Sub-licence to a
Third Party only, Percipio shall obtain the prior written consent of CRT, such
consent not to be unreasonably withheld or delayed, provided, however, that
CRT’s failure to provide written “good cause” denial of consent within thirty
(30) Business Days after Percipio requests consent to grant a Sub-licence shall
be deemed to be consent. Notwithstanding anything to the contrary set forth
herein, (i) Percipio shall have the right to grant Sub-licences of any or all of
the rights granted to it pursuant to Clause 2.1 to any Affiliate of Percipio
without obtaining CRT’s prior written consent and (ii) Percipio shall also have
the right, without obtaining CRT’s prior written consent, to enter into a
sub-contract manufacturing, co-marketing or distribution agreement with a Third
Party under which Percipio appoints a Third Party as its agent to manufacture,
promote or sell Products. Within thirty (30) Business Days of the grant of any
Sub-licence to a Third Party, Percipio shall provide CRT with a true copy of the
Sub-licence signed by Percipio and such Third Party, at Percipio’s own expense.
Any Sub-licence that is granted in breach of this Clause 2.4 shall be void.
Without prejudice to Percipio’s obligation to seek CRT’s consent to grant
Sub-licences to Third Parties as set forth under this Clause 2.4, any
Sub-licence granted by Percipio to a Third Party shall be presumed to meet the
requirements of this Clause 2.4 if it shall:

 
2.4.1  
be granted on an arm’s length basis reflecting the arms length fair market value
for 100% cash consideration;

 
2.4.2  
provide that the Sub-licence shall terminate automatically on termination for
whatever reason of this Agreement;

 
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2.4.3  
provide that the Third Party with whom the Sub-licence has been entered into
shall undertake to allow Percipio access to such Third Party’s books and records
relating to the calculation of Net Sales of Products, and Percipio undertakes to
include in its books and records or make available to CRT all Net Sales
information and records it receives from such Third Party relating to Products;

 
2.4.4  
provide that, in the event of termination of this Agreement, the Third Party
Sub-licensee shall have the right, for a period of ninety (90) Business Days
following the date of termination, to sell off stocks of Product held by it at
the date of termination; and

 
2.4.5  
prohibit the assignment of the Sub-licence to any Third Party; provided,
however, that Percipio shall be permitted to permit such Third Party
Sub-licensee to sub-licence the rights granted to it under the Sub-licence,
provided that (1) Percipio shall ensure that the terms of such sub-sub-licence
comply with the terms of this Clause 2.4 mutatis mutandis; and (2) the terms of
the sub-sub-licence prohibit the sub-licensing of the rights granted thereunder
and Percipio shall, at its own cost, provide a copy of each sub-sub-licence to
CRT as soon as possible after completion.

 
2.5  
Any breach of Clauses 2.3 or 2.4 shall be a material breach of this Agreement.

 
2.6  
In the event that this Agreement is terminated by Percipio pursuant to Clause
10.5 hereof,
[*************************************************************************].

 
3.  
DEVELOPMENT AND MARKETING PLAN

 
3.1  
Percipio shall:

 
3.1.1  
subject to Clause 3.3, use commercially reasonable endeavours to undertake the
Development Plan at its own cost and expense; and

 
3.1.2  
provide [********] reports until the [*****] anniversary of the Commencement
Date, and thereafter [*****]l reports outlining its and its Affiliates and any
Sub-licensee’s progress with respect to the milestone deadlines in the
Development Plan and proposing any reasonable changes to the Development Plan it
requires.

 
3.2  
In the event that Percipio proposes amendment of the Development Plan pursuant
to Clause 3.1.2 or otherwise, the Parties shall discuss such amendment in good
faith but no amendment to the Development Plan shall be effective unless made in
writing and signed by both Parties.

 
3.3  
In the event that Percipio misses any of the material milestones highlighted in
the Development Plan (as may have been amended pursuant to Clause 3.2)
[**********************************************************************] and the
Parties shall meet to discuss the matter with an aim to come to an agreement on
the reassignment of the milestones, but on doing so, if the Parties cannot reach
agreement, CRT shall have the right to terminate this Agreement in accordance
with the terms of Clause 10.5 below.

 
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3.4  
Percipio shall, and shall procure that its Affiliates and Sub-licensees shall,
use their commercially reasonable endeavours to: (i) obtain all necessary and
desirable regulatory and other approvals to market and sell Products
(collectively, “Marketing Approval”) from any relevant Competent Authority and,
upon receipt of Marketing Approval in a country; (ii) commercialize the Products
in each such country to the maximum extent practicable; and (iii) without
limitation of its obligations under Clause 3.4(i) and (ii) hereof, adhere to the
Marketing Plan as further set forth in Clause 3.5 hereof.

 
3.5  
Commencing with the [***********************************](each a “Marketing
Plan”)[****************************], which shall include a summary of the
marketing, sales and distribution plans on a country-by-country basis for
[************] of Percipio or its Affiliates or Sub-licensees, as
applicable.  Each Marketing Plan shall be of sufficient detail to allow CRT to
determine that a highly professional and logical plan has been devised that will
support the objective of making the Product available to as many patients as
possible as early as possible, within the applicable laws and regulations, and
thereby generating, growing and maintaining Product sales throughout the term of
this Agreement.  The Marketing Plan may be subject to changes based upon local
market conditions, changes in competition, changes in other aspects that may be
expected to have an impact on local sales results and as a result, the Marketing
Plan shall be subject to change by Percipio upon prior written notice to CRT
(provided, further, that the foregoing shall be without limitation of the
obligations of Percipio pursuant to Clause 3.4(i) and (ii) hereof).  All costs
relating to the preparation and submission of the Marketing Plans shall be borne
by Percipio.  All Marketing Plans shall be deemed as Confidential Information
for purposes of this Agreement and CRT shall not provide any Third Party with
access to any Marketing Plan, or any portion thereof.

 
4.  
CONSIDERATION

 
4.1  
Percipio shall pay to CRT:

 
4.1.1  
[*************************************];

 
and
 
4.1.2  
[*************************************];

 
and
 
4.1.3  
subject to the provisions of Clauses 4.2, 4.3 10.6 and 11.4, the following
payments [********************] of the occurrence of the relevant milestone
event [********************************] set forth in this Clause 4.1.3:

 
4.1.3.1  
[******************************************]

 
4.1.3.2  
[******************************************]

 
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4.1.3.3  
[******************************************]

 
4.1.3.4  
[******************************************]

 
and
 
4.1.4  
subject to the provisions of Clauses 4.2, 4.3, 10.6 and 11.4, the following
payments within [*****************] of the occurrence of the relevant milestone
event [***************************************]:

 
[*******************************************************];
 
and
 
4.1.5  
subject to the provisions of Clauses 10.6 and 11.4, [*************************
***************************];

 
and
 
4.1.6  
subject to the provisions of Clauses 10.6 and 11.4, [************************].

 
4.2  
For the avoidance of doubt, if, in respect of each of the milestone events
described in Clauses 4.1.3 and 4.1.4, that milestone event is achieved in
respect of a particular Product by a Sub-licensee which is not an Affiliate of
Percipio, [***********************************].

 
4.3  
Notwithstanding anything to the contrary set forth herein, (i) Percipio shall
[***********]

 
4.4  
[*************************************************************************].

 
5.  
PAYMENT

 
5.1  
All payments due to CRT under this Agreement shall be made in pounds sterling in
cleared funds to the account of
[*******************************************************] (or such other account
details as CRT may from time to time notify to Percipio).

 
5.2  
Where sums are received by Percipio in a currency other than pounds sterling,
conversion of such currencies to pounds sterling shall be performed at the
closing mid-spot rate for that currency published in the Financial Times in
London on the last Business Day of the Quarter in which the sum is to be paid.

 
5.3  
All costs of transmission or currency conversion shall be borne by Percipio.

 
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5.4  
All payments by Percipio to CRT under this Agreement are expressed to be
exclusive of value added tax howsoever arising, and Percipio shall pay to CRT in
addition to those payments or if earlier on receipt of a tax invoice or invoices
from CRT, all Value Added Tax for which CRT is liable to account in relation to
any supply made or deemed to be made for Value Added Tax purposes pursuant to
this Agreement.

 
5.5  
All payments to CRT shall be made free and clear of, and without deduction or
deferment in respect of, any claims, set-off and taxes imposed or levied by any
Competent Authority including any withholding taxes.  In the event that Percipio
is obliged to deduct any withholding or other taxes it shall pay to CRT an
amount as shall result in the net amount being received by CRT being equal to
the amount which would have been received by CRT had no deduction or withholding
been made; provided always that, if CRT is able to recover or set-off any such
deduction or withholding, it shall refund such amount to Percipio as shall
result in the net amount being retained by CRT being equal to the amount which
would have been received by CRT had no deduction or withholding been made.

 
5.6  
The provisions of Clause 5.5 above requiring Percipio to pay to CRT a sum such
that the net amount received by CRT is equal to the amount that would have been
received by CRT had no deduction or withholding been made shall not apply if,
and only to the extent that, the relevant deduction results from Percipio being
under a legal obligation under the UK tax rules requiring Percipio to deduct
income tax at source from royalties payable by Percipio to CRT in respect of a
UK granted patent.

 
5.7  
Where CRT does not receive payment of any sums due to it
within[*******************], interest shall accrue on the sum due and owing to
CRT at the rate equivalent to an annual rate of three per cent (3%) over the
then current base rate of the Bank of England, for the UK, calculated on a daily
basis, without prejudice to CRT’s right to receive payment on the Due Date.

 
6.  
BOOKS AND RECORDS

 
6.1  
Pursuant to Clause 4.4, Percipio shall prepare quarterly reports. The Quarterly
Reports shall include Net Sales by country, including the company making the
sales and the amount of Products sold. If CRT gives notice to Percipio within
twenty (20) Business Days of the receipt of any such Quarterly Report that it
does not accept the same, that Quarterly Report shall be certified by an
independent accountant appointed by agreement between Percipio and CRT or, in
default of agreement within ten (10) Business Days, appointed by the President
for the time being of the Institute of Chartered Accountants of England and
Wales in London. Percipio shall (subject to the independent accountant agreeing
to maintain the confidentiality of the books and records save insofar as is
necessary for the proper reporting to Percipio and CRT) make available to the
independent accountant all books and records required for the purpose of that
certification and the statements so certified shall be final and binding between
the Parties.  The cost of the certification shall be the responsibility of
Percipio if the statement is shown to have underestimated the monies payable to
CRT by[********************] and the responsibility of CRT otherwise.  Any
outstanding payments due to CRT which are identified as a result of carrying out
the investigation shall be paid to CRT [********************]. There shall be no
more than one certification by an independent accountant in relation to any one
calendar year.

 
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6.2  
Percipio shall keep true and accurate records and books of account, and shall
require in its contracts with Sub-licensees that its Sub-licensees shall keep
true and accurate records and books of account, containing all data necessary
for the calculation of the amounts payable by Percipio to CRT pursuant to this
Agreement, including such amounts payable pursuant to Clause 2.4.3.  Such
records and books of account shall be kept for six (6) years following the end
of the calendar year to which they relate and Percipio’s records and books of
account shall, upon reasonable notice having been given by CRT, be open at
reasonable times on Business Days for inspection under the terms of
confidentiality contained in this Agreement, by an independent firm of
accountants appointed by agreement between the Parties or, failing such
agreement within ten (10) Business Days, appointed by the President for the time
being of the Institute of Chartered Accountants of England and Wales in London.
The cost of any such examination shall be borne by CRT, such examination to take
place and be completed not later than six (6) years following the expiration of
the period to which it relates and there shall be no more than one examination
per year.

 
7.  
MANAGEMENT OF PATENT RIGHTS; OWNERSHIP OF INTELLECTUAL PROPERTY

 
7.1  
Subject to Clauses 7.4, 7.5 and 7.6 hereof, Percipio shall, from expiry of the
2005 Licence, undertake or procure the filing, prosecution, and maintenance of
the Licensed Intellectual Property, including the Licensed Patents, in the name
of CRT and be responsible for any enforcement proceedings relating to them
(including any interference or opposition proceedings); provided, further, that
the Parties agree that Percipio’s obligations hereunder shall extend only within
the Field (unless such filing, prosecution or maintenance is not separable by
Field). Percipio or CRT shall provide copies of all relevant correspondence to
CRT or Percipio, as the case may be, within fourteen (14) Business Days of
receipt, and the Parties shall consult in all material respects with each other
in relation to such filing, prosecution, and maintenance.

 
7.2  
Each Party shall give the other immediate notice of any actual or suspected
infringement of the Licensed Patents or any actual or suspected misuse or
misapplication of the Licensed Know How and/or the Licensed Materials by a Third
Party which comes to that Party’s attention during the term of this Agreement.

 
7.3  
If either Party receives any notice, claim, or proceedings from any Third Party
alleging infringement of that Third Party’s intellectual property by reason of
either Party’s activities in relation to this Agreement or the use and
exploitation of the Licensed Intellectual Property in the Field, the Party
receiving that notice shall [*************************************] notify the
other Party of the notice, claim or proceeding.

 
7.4  
Percipio may (subject to Clause 7.5), at its own cost, defend and enforce or may
procure the defence or enforcement of the rights under the Licensed Intellectual
Property in the Field, including any interference proceedings. CRT shall, at
Percipio’s cost, render all such reasonable assistance as Percipio reasonably
requests. [*****************************].

 
7.5  
If Percipio elects not to defend or enforce the relevant Licensed Intellectual
Property in the Field pursuant to Clause 7.4 and if CRT desires the enforcement
or defence of such rights it shall notify Percipio and Percipio shall, at CRT’s
request [******], grant to CRT any and all rights that would be necessary solely
for the purpose of allowing CRT to undertake such enforcement or defence. If
Percipio is unable to grant such rights then it shall, at CRT’s request, grant
to CRT the right to conduct such an action in its name. CRT shall defend and
enforce or shall procure the defence or enforcement of the rights under Licensed
Intellectual Property in the Field pursuant to this Clause 7.5 [**********].
Percipio shall provide,[********], all such reasonable assistance as CRT may
reasonably request in any such
proceedings.  [*************************************************].

 
14

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7.6  
In the event that the Licensed Intellectual Property is licensed to a Third
Party outside the Field for commercial purposes the costs and expenses in
relation to the prosecution, maintenance and defence of the Licensed
Intellectual Property referred to in this Clause 7 shall no longer be borne by
Percipio alone and CRT undertakes to ensure that such costs and expenses shall
be apportioned as between each licensee of the Licensed Intellectual Property in
shares reflecting the commercial value of the Licensed Intellectual Property in
the respective fields. However, nothing herein, including any licence to a Third
Party by CRT, shall prevent Percipio from exercising its rights under Clause
7.4, and CRT agrees to take all steps necessary with said Third Parties to grant
to Percipio any and all rights necessary to allow Percipio to undertake such
enforcement or defence.  CRT further agrees that it will not allow any Third
Party to enforce or defend the Licensed Intellectual Property, either within or
outside the Field, without the prior express written permission of Percipio.

 
7.7  
CRT shall, [*************] provide such reasonable assistance and advice to
Percipio as Percipio may request (including the provision of copies of any
necessary documents) which is necessary or desirable for Percipio to apply for
an extension to the term of protection of the Licensed Patents in the Field
including any SPC or other like form of protection anywhere in the Territory.

 
7.8  
As between the Parties, their Affiliates and Sub-licensees:  (i) all rights,
title and interest in the Percipio Intellectual Property shall be exclusively
owned by Percipio and (ii) all rights, title and interest in any clinical data
or regulatory filings relating to the Products shall be exclusively owned by
Percipio.

 
8.  
WARRANTIES AND LIABILITY

 
8.1  
[**********************************]

 
8.1.1  
[**********************************]

 
8.1.2  
[**********************************]

 
8.2  
[**********************************]

 
8.3  
[**********************************].

 
8.4  
[**********************************].

 
8.5  
[**********************************].

 
8.6  
[**********************************].

 
15

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8.7  
[**********************************]

 
8.8  
[**********************************].

 
8.9  
[**********************************].

 
9.  
CONFIDENTIALITY

 
9.1  
Each Party undertakes to keep secret and confidential and agrees not at any time
for any reason whatsoever disclose or permit to be disclosed to any Third Party
or otherwise make use of or permit use to be made of (except as expressly
permitted by this Agreement), any Confidential Information of the disclosing
Party and/or Know How of the disclosing Party and/or the Licensed Intellectual
Property which come into the recipient Party’s possession during the term of
this Agreement.

 
9.2  
The Parties shall ensure that only those of, and their Affiliates’ and/or
Sub-licensees’, their directors, officers and employees who need to have access
to Confidential Information and/or Know How and/or the Licensed Intellectual
Property for the proper performance of this Agreement and any Sub-licence do
have access and that those who are directly concerned with the performance of
this Agreement and any Sub-licence and who have access to the Confidential
Information and/or Know How of the disclosing Party and/or the Licensed
Intellectual Property are informed of its secret and confidential nature and the
recipient Party undertakes to ensure that such of its, and its Affiliates’ and
its Sub-licensees’, directors, officers and employees to whom the Confidential
Information and/or Know How and/or the Licensed Intellectual Property is
disclosed shall have, prior to such disclosure, executed a confidentiality
undertaking on terms no less onerous than those contained in this Agreement or
that such disclosure is adequately governed by the terms of the contract of
employment of such director, officer or employee.

 
9.3  
The obligations of confidence referred to in this Clause 9 shall not extend to
any Confidential Information or Know How or the Licensed Intellectual Property
which:

 
9.3.1  
is at the time of disclosure, or thereafter becomes, generally available to the
public otherwise than by reason of a breach by the recipient Party of the
provisions of this Agreement; or

 
9.3.2  
is known to the recipient Party without obligations of confidence prior to its
receipt from the disclosing Party, as can be shown by written record; or

 
9.3.3  
is subsequently disclosed to the recipient Party without obligations of
confidence by another party owing no such obligations in respect thereof; or

 
9.3.4  
is required to be disclosed by any applicable law or any Competent Authority to
which a Party is from time to time subject; or

 
9.3.5  
is independently developed by a person or persons with no access to the
Confidential Information disclosed by a Party, as demonstrated by written
records; or

 
16

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9.3.6  
is required to be or is necessarily disclosed through the marketing of a Product
embodying Licensed Intellectual Property or to any Competent Authority or by the
rules of any stock exchange, including for the avoidance of doubt the United
States Securities and Exchange Commission pursuant to relevant U.S. securities
regulations, and as may be required under the National Audit Act 1983 or
otherwise legally required to be disclosed, provided always that the recipient
Party shall use its best endeavours to limit any such disclosure to a minimum
and shall, if reasonably possible, prior to such disclosure, provide the
disclosing Party with sufficient notice, in order to obtain a protective or
other order as a court of competent jurisdiction shall award.

 
9.4  
The obligations of each Party under Clauses 9.1-9.3 shall survive the expiration
or termination for whatever reason of this Agreement.

 
10.  
TERM AND TERMINATION

 
10.1  
This Agreement shall come into effect on the Commencement Date and, unless
sooner terminated as provided hereunder, shall continue in full force and effect
until the termination of all licences granted to Percipio pursuant to Clause 2.1
above.  [*********************]

 
10.2  
CRT may, on thirty (30) Business Days written notice, terminate this Agreement
if:

 
10.2.1  
Percipio takes any action, serves any notice or commences any proceedings
seeking to revoke or challenge the validity of the Licensed Patent or if it
procures or assists a Third Party to take any such action; or

 
10.2.2  
the Financing Event has not occurred prior to the first anniversary of the
Commencement Date; or

 
10.2.3  
the Sunburst Licence Agreement is terminated by Hamilton Atlantic; or

 
10.2.4  
at any time prior to the listing of shares of Percipio on a public exchange, in
the event of a change of Control of Percipio where the new Controlling party is
a Tobacco Party. “Control” for the purposes of this sub-clause means the power
to secure that the affairs of Peripio are conducted in accordance with the
wishes of another whether through ownership of 50% or more of the voting
securities of Percipio or by contract or otherwise and “Controlling” shall be
construed accordingly.

 
10.3  
[************************************************].

 
10.4  
[************************************************].

 
10.5  
Either CRT on the one hand or Percipio on the other hand (the “Terminating
Party”) shall have the right to terminate this Agreement forthwith upon giving
written notice of termination to Percipio on the one hand or CRT on the other
hand as the case may be (the “Defaulting Party”), upon the occurrence of any of
the following events at any time during this Agreement:

 
17

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10.5.1  
the Defaulting Party commits a material breach of this Agreement which in the
case of a breach capable of remedy has not been remedied[******************]
after the receipt by the Defaulting Party from the Terminating Party of written
notice identifying the breach and requiring its remedy;

 
10.5.2  
the Defaulting Party for a period of longer than
[**********************]suspends payment of its debts or otherwise ceases or
threatens to cease to carry on its business or becomes bankrupt or insolvent
(including without limitation being deemed to be unable to pay its debts);

 
10.5.3  
a proposal is made or a nominee or supervisor is appointed for a composition in
satisfaction of the debts of the Defaulting Party or a scheme or arrangement of
its affairs, or the Defaulting Party enters into any composition or arrangement
for the benefit of its creditors, or proceedings are commenced in relation to
the Defaulting Party under any law, regulation or procedure relating to the
re-construction or re-adjustment of debts (including where a petition is filed
or proceeding commenced seeking any reorganisation, arrangement, composition or
re-adjustment under any applicable bankruptcy, insolvency, moratorium,
reorganisation or other similar law affecting creditor’s rights or where the
Defaulting Party consents to, or acquiesces in, the filing of such a petition);
or

 
10.5.4  
the Defaulting Party takes any action, or any legal proceedings are started or
other steps are taken by a Third Party, with a view to:

 
 
(a)
the winding up or dissolution of the Defaulting Party (other than for the
reconstruction of a solvent company for any purpose, including the inclusion of
any part of the share capital of the Defaulting Party on a recognised public
stock exchange); or

 
 
(b)
the appointment of a liquidator, trustee, receiver, administrative receiver,
receiver and manager, interim receiver custodian, sequestrator or similar
officer of the Defaulting Party against the Defaulting Party or a substantial
part of the assets of the Defaulting Party; or

 
 
(c)
the undertaking of anything analogous to any of the foregoing under the laws of
any country.

 
10.6  
[****************************************************]

 
11.  
CONSEQUENCES OF TERMINATION

 
11.1  
Subject to Clauses 10.6 and 11.4 upon termination of this Agreement:

 
11.1.1  
the licence rights granted by CRT to Percipio pursuant to Clause 2 shall
terminate and any Sub-licences granted by Percipio pursuant to Clause 2.4 shall
terminate;

 
11.1.2  
Percipio shall pay to CRT within [********************] all sums due to CRT
hereunder which have accrued prior to the date of termination;

 
11.1.3  
each recipient of Confidential Information shall promptly return to each
disclosing Party, or, at the option of the disclosing Party, destroy, all
Confidential Information held in hard copy or electronic form which has been
provided to the recipient Party save that each recipient Party shall be
permitted to retain one copy of any document containing such Confidential
Information for the purposes of ensuring its continuing compliance with Clause 9
and for no other purpose; and

 
11.1.4  
upon written request by CRT, Percipio shall, [*************************] of
receipt of said notice, return to CRT, or, at CRT’s option, destroy all Licensed
Materials held by Percipio.  Nothing herein shall require Percipio to return
publicly available material or other materials that are the subject of Clause
9.3, above.

 
11.2  
Subject to the provisions of Clause 10.6 Percipio shall provide to CRT within
thirty (30) Business Days of termination of this Agreement one copy of each
document containing information, together with any information held in an
electronic form, in each case in reasonably sufficient detail to enable CRT
itself or through a Third Party to further develop Products, relating directly
to the Licensed Intellectual Property whilst undertaking the Development Plan or
comprised within Viragen Intellectual Property.

 
11.3  
In the event of termination:

 
11.3.1  
By Percipio pursuant to Clauses 10.3 or 10.4 in a particular country, then
Percipio agrees to provide CRT with a non-exclusive sub-licensable licence to
use the Percipio Intellectual Property and Viragen Intellectual Property on a
Revenue Share basis in that country or countries;

 
11.3.2  
By Percipio pursuant to Clauses 10.3 or 10.4 in the entire Territory, then
Percipio agrees to assign to CRT all Percipio Intellectual Property and clinical
data relating to the Licensed Intellectual Property to which it has rights and
in the event that the Sunburst Licence Agreement:

 
(a)  
remains in force or has been terminated by Hamilton Atlantic, Percipio agrees to
grant CRT an exclusive sub-licensable worldwide right and licence under all of
its rights in the Viragen Intellectual Property to research, develop, use, keep,
make, have made, market, distribute, sell, offer to sell, advertise or otherwise
dispose of Products in the Field, on a Revenue Share basis; or
   
(b)  
has been or is terminated by Percipio, Percipio agrees, in accordance with any
agreement in place between CRT and Hamilton Atlantic, to grant CRT an exclusive
sub-licensable worldwide right and licence under all of its rights in the
Viragen Intellectual Property to research, develop, use, keep, make, have made,
market, distribute, sell, offer to sell, advertise or otherwise dispose of
Products in the Field on a Revenue Share basis.

 
18

--------------------------------------------------------------------------------

 
11.3.3  
By CRT pursuant to Clauses 10.2.2, 10.2.3 or 10.5, Percipio shall assign all
Percipio Intellectual Property to which it has ownership rights and any clinical
data generated by Percipio relating to the Licensed Intellectual Property to CRT
and in the event that the Sunburst Licence Agreement:

 
(a)  
remains in force, or has been terminated by Hamilton Atlantic, Percipio agrees
to grant CRT an exclusive worldwide right and licence under all of its rights in
the Viragen Intellectual Property to research, develop, use, keep, make, have
made, market, distribute, sell, offer to sell, advertise or otherwise dispose of
Products in the Field, on Revenue Share terms to be agreed;
    (b)  
has been or is terminated by Percipio, Percipio agrees, in accordance with any
agreement in place between CRT and Hamilton Atlantic, to grant CRT an exclusive
worldwide right and licence under all of its rights in the Viragen Intellectual
Property to research, develop, use, keep, make, have made, market, distribute,
sell, offer to sell, advertise or otherwise dispose of Products in the Field on
a Revenue Share basis.

 
11.4  
In the event of the expiry of this Agreement or the termination of this
Agreement by Percipio pursuant to Clause 10.5, CRT shall grant to Percipio a
non-exclusive, perpetual, fully paid up royalty-free licence to the Licensed
Intellectual Property to research, develop, use, keep, make, have made, market,
distribute, sell, offer to sell, advertise or otherwise dispose of the Products
in the Territory. In the event of (i) a termination of a licence in a country
(except pursuant to Clauses 10.3 or 10.4) or (ii) the occurrence of an event as
set forth in Clause 10.6, CRT shall grant to Percipio a non-exclusive,
perpetual, fully paid up royalty-free licence to the Licensed Intellectual
Property to research, develop, use, keep, make, have made, market, distribute,
sell, offer to sell, advertise or otherwise dispose of the Products in such
country.  Notwithstanding anything to the contrary set forth in this Clause
11.4, if CRT shall terminate the Agreement pursuant to Clauses 10.2 or 10.5, the
licence shall terminate.

 
11.5  
If Percipio serves notice to terminate this Agreement in the Territory or in
particular countries pursuant to Clauses 10.3 or 10.4 it shall, without
prejudice to its obligation to pay royalties during the notice period, pay to
CRT all of any milestone payment which has not been paid and in respect of which
the milestone event has been achieved prior to the date of notification by
Percipio of its intention to terminate.

 
11.6  
Notwithstanding anything to the contrary herein, the termination or expiry of
this Agreement for whatever reason shall not affect the accrued rights of the
Parties arising in any way out of this Agreement as at the date of termination
or expiry and in particular but without limitation the right to recover damages
and interest, and the provisions of Clauses 2.3, 2.6, 6.2, 7.7 (but only to the
extent that a licence has been granted pursuant to Clause 11.4 hereof),7.8,
8.1-8.9, 9.1-9.4, 10.6, 11.1-11.8, 14.1-14.2, 17.1-17.3, 18.1, 18.2, 19.1, 20.1,
20.2, 21.1 and 22.1-22.3 shall remain in full force and effect.

 
19

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11.7  
Notwithstanding the provisions of Clause 11.1.1, termination or expiry of this
Agreement for whatever reason shall be without prejudice to the rights of
Percipio and/or its permitted Sub-licensees to fulfill orders received prior to
the termination or expiry subject to the payment of royalties on any Net Sales
accruing in respect thereof at the rates set out in this Agreement.

 
11.8  
[***************************************************].

 
12.  
WAIVER

 
12.1  
Neither Party shall be deemed to have waived any of its rights or remedies
conferred by this Agreement unless the waiver is made in writing and signed by a
duly authorised representative of that Party.  In particular, no delay or
failure of either Party in exercising or enforcing any of its rights or remedies
conferred by this Agreement shall operate as a waiver of those rights or
remedies or so as to preclude or impair the exercise or enforcement of those
rights or remedies nor shall any partial exercise or enforcement of any right or
remedy by either Party preclude or impair any other exercise or enforcement of
that right or remedy by that Party.

 
13.  
ENTIRE AGREEMENT/VARIATIONS

 
13.1  
This Agreement constitutes the entire agreement and understanding between the
Parties and supersedes all prior oral or written understandings, arrangements,
representations or agreements between them relating to the subject matter of
this Agreement.

 
13.2  
No director, employee or agent of either Party is authorised to make any
representation or warranty to the other Party not contained in this Agreement,
and each Party acknowledges that it has not relied on any such oral or written
representations or warranties. Nothing in this Clause 13 shall operate to limit
or exclude any liability for fraud.

 
13.3  
No variation, amendments, modification or supplement to this Agreement shall be
valid unless made in writing in the English language and signed by a duly
authorised representative of both Parties.

 
13.4  
In the event of any conflict or discrepancy between this Agreement and any other
agreement, schedule or amendment, the terms of this Agreement shall control
unless superseded by subsequent written agreement.

 
14.  
NOTICES

 
14.1  
Any notice to be given pursuant to this Agreement shall be in writing in the
English language and shall be delivered by hand, sent by overnight registered or
recorded delivery airmail post or sent by facsimile confirmed by registered or
recorded delivery post to the address or facsimile number of the recipient set
out below or such other address or facsimile number as a Party may from time to
time designate by written notice to the other Parties.

 
20

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Address of Percipio

Percipio Biotherapeutics, Inc.

10990 Wilshire Blvd., Suite 1410
Los Angeles
California 90024
USA

For the attention of   Robert Brooke
     Chief Executive Officer

Fax No. +1 (310) 696-0334

Address of CRT

Sardinia House
Sardinia Street
London
WC2A 3NL

Fax No. +44 (0) 20 7269 3641

For the attention of the Chief Executive.

14.2  
Any notice given pursuant to this Clause 14 shall be deemed to have been
received:

 
14.2.1  
in the case of delivery by hand, when delivered; or

 
14.2.2  
in the case of sending by overnight registered or recorded delivery airmail post
on the second Business Day following the day of posting; or

 
14.2.3  
in the case of facsimile, on acknowledgement by the recipient facsimile
receiving equipment if the acknowledgement occurs before 1700 hours local time
of the recipient on a Business Day and in any other case on the following
Business Day.

 
15.  
ASSIGNMENT

 
15.1  
Neither Party shall without the prior written consent of the other Party, assign
the benefit and/or burden of this Agreement nor sub-contract any of its
obligations hereunder unless otherwise permitted by the terms hereof; provided
always that CRT or Percipio may assign the benefit of this Agreement, or
sub-contract any of its obligations hereunder, in whole or in part to any
Affiliate or to a successor to or purchaser of all or substantially all of the
business of the assigning Party relating to this Agreement (whether in a merger,
sale of stock, sale of assets or otherwise), on the conditions that (i) the
assigning Party gives prior written notice to the non-assigning Party and (ii)
that the assignee is not a Tobacco Party; however, nothing herein shall permit
an assignment to any competitor of any Party.

 
16.  
FORCE MAJEURE

 
21

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16.1  
If a Party (the “Non-Performing Party”) is unable to carry out any of its
obligations under this Agreement due to Force Majeure this Agreement shall
remain in effect but the Non-Performing Party’s relevant obligations under this
Agreement and the relevant obligations of the other Party (the “Innocent Party”)
under this Agreement shall be suspended for a period equal to the duration of
the circumstance of Force Majeure (the “Suspension”) provided that:

 
16.1.1  
the Suspension is of no greater scope than is required by the Force Majeure;

 
16.1.2  
the Non-Performing Party gives the Innocent Party prompt notice describing the
circumstance of Force Majeure, including the nature of the occurrence and its
expected duration, and continues to furnish regular reports during the period of
Force Majeure;

 
16.1.3  
the Non-Performing Party uses all reasonable efforts to remedy its inability to
perform and to mitigate the effects of the circumstance of Force Majeure; and

 
16.1.4  
as soon as practicable after the event which constitutes Force Majeure the
Parties shall discuss how best to continue their operations as far as possible
in accordance with this Agreement.

 
16.2  
If the Suspension continues for a period of six (6) calendar months the Innocent
Party may give thirty (30) Business Days written notice thereafter to terminate
this Agreement to the Non-Performing Party and termination shall occur if the
Force Majeure is continuing at the end of that thirty (30) Business Day notice
period.

 
17.  
DISPUTE RESOLUTION

 
17.1  
Any question, difference or dispute which may arise concerning the construction
meaning or effect of this Agreement or concerning the rights and liabilities of
the Parties hereunder or any other matter arising out of or in connection with
this Agreement shall first be submitted to the then acting Chief Executive
Officer of Percipio and the Chief Executive of CRT who may call on others to
advise them as they see fit.

 
17.2  
If the discussions under Clause 17.1 should fail to resolve the question,
difference or dispute within forty-five (45) Business Days, the Parties agree to
try in good faith to settle the matter by mediation, but not arbitration,
administered by the American Arbitration Association under its Commercial
Mediation Rules. Any mediation under this Clause 17.2 shall take place in
London.  If mediation should fail to resolve the question, difference or dispute
within forty-five (45) Business Days, the Parties agree that either Party may
seek resolution of such question, difference or dispute in court pursuant to
Clause 22.1.

 
17.3  
Notwithstanding the foregoing, and notwithstanding Clause 22, any Party may seek
immediate injunctive or other interim relief from any court of competent
jurisdiction with respect to any matter for which monetary damages would not
adequately protect such Party’s interests or otherwise to enforce and protect
intellectual property rights owned or licensed to such Party.

 
18.  
SEVERANCE OF TERMS

 
18.1  
If the whole or any part of this Agreement is or becomes or is declared illegal,
invalid or unenforceable in any jurisdiction for any reason (including both by
reason of the provisions of any legislation and also by reason of any court or
Competent Authority which either has jurisdiction over this Agreement or has
jurisdiction over any of the Parties):

 
22

--------------------------------------------------------------------------------

 
18.1.1  
in the case of the illegality, invalidity or unenforceability of the whole of
this Agreement it shall terminate only in relation to the jurisdiction in
question; or

 
18.1.2  
in the case of the illegality, invalidity or unenforceability of part of this
Agreement that part shall be severed from this Agreement in the jurisdiction in
question and that illegality, invalidity or unenforceability shall not in any
way whatsoever prejudice or affect the remaining parts of this Agreement which
shall continue in full force and effect.

 
18.2  
If in the reasonable opinion of any Party any severance under this Clause 18
materially affects the commercial basis of this Agreement, the Parties shall
discuss, in good faith, ways to eliminate the material effect.

 
19.  
THIS AGREEMENT NOT TO CONSTITUTE A PARTNERSHIP

 
19.1  
None of the provisions of this Agreement shall be deemed to constitute a
partnership between the Parties and neither of the Parties shall have any
authority to bind the other in any way except as provided in this Agreement.

 
20.  
PUBLIC STATEMENTS

 
20.1  
Except as provided in Clause 20.2, neither Party shall, without the prior
written consent of the other Party:

 
20.1.1  
use in advertising, publicly or otherwise, any trade-name, personal name, trade
mark, trade device, service mark, symbol, or any abbreviation, contraction or
simulation thereof, owned by the other Party; or

 
20.1.2  
represent, either directly or indirectly, that any product or service of the
other Party is a product or service of the representing Party or that it is made
in accordance with or utilises the information or documents of the other Party.

 
20.2  
The restrictions in Clause 20.1 shall not apply to the following:

 
20.2.1  
a press release, in a form agreed to in writing by both Parties, publicly
announcing this Agreement; or

 
20.2.2  
use as required by any applicable law or governmental regulation, including, for
the avoidance of doubt, compliance with all applicable United States Food and
Drug Administration and United States federal and state securities laws,
including the United States Securities and Exchange Commission Rules and
requirements.

 
23

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21.  
COSTS

 
21.1  
Each Party shall bear its own legal costs, legal fees and other expenses
incurred in the preparation and execution of this Agreement.

 
22.  
GOVERNING LAW, JURISDICTION AND PRESUMPTIONS

 
22.1  
All matters relating to this Agreement shall be governed by the laws of England
and the Parties submit to the non-exclusive jurisdiction of the English courts.

 
22.2  
This Agreement shall be deemed to be jointly created and drafted, and no
presumption shall arise, and no provision shall be construed, against the
drafter of a particular section or provision, when interpreting this Agreement.

 
22.3  
No term of this Agreement shall be enforceable under the Contracts (Rights of
Third Parties) Act 1999 by a person who is not a Party, but this does not affect
any right or remedy of a third party which exists or is available apart from
under that Act.

 
24

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SCHEDULE 1 – DEVELOPMENT PLAN

[***************************]

STAGE 1.

Activity
Estimated Timeline for Achievement
[***********************************]
[************]
[***********************************]
 
[************]
[***********************************]
 
[************]
[***********************************]
[************]

[********************************************************************]
STAGE 2.

[***************************************************************************]

25

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SCHEDULE 2

PATENT/APPLICATION NUMBER
COUNTRY/REGION
FILING DATE
[****************************]
[***********]
[***********]
[****************************]
[***********]
[***********]
[****************************]
[***********]
[***********]
[****************************]
[***********]
[***********]
[****************************]
[***********]
[***********]
[****************************]
[***********]
[***********]
[****************************]6
[***********]
[***********]
[****************************]
[***********]
[***********]
[****************************]
[***********]
[***********]

26

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SCHEDULE 3

Licensed Know How

Full detail is set out below of all Know How generated and arising from the
antibody programme prior to the termination of the Collaboration Agreement and
which forms the subject matter of the licence rights relating to the Licensed
Know How pursuant to Clause 2.1 as follows:

1.           C3b deposition assay
2.           Complement lysis assay
3.           Antibody dependent cellular cytotoxicity assay
4.           Anaphylatoxin assay
5.           Monocyte stimulation assay
6.           T cell co-stimulation assay

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--------------------------------------------------------------------------------

 
 

 
IN WITNESS whereof this Agreement has been executed by duly authorized officers
of the Parties on the date first above written.
 

 Signed by:                  Name:                Title:           For and on
behalf of        CANCER RESEARCH TECHNOLOGY LIMITED              Signed by:  
 Robert Brooke              Name:       

                            

 Title:   Chief Executive Officer        For and on behalf of        PERCIPIO
BIOTHERAPEUTICS, INC.    

 

               
                               

                               

 
 

 
 
 
 
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