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.

 

THIRD AMENDMENT
TO THE
COLLABORATIVE RESEARCH AND LICENSE AGREEMENT

 

THIS THIRD AMENDMENT TO THE COLLABORATIVE RESEARCH AND LICENSE AGREEMENT (the
“Third 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 KRAFT FOODS GLOBAL, INC., a Delaware
corporation (“Kraft”) having offices at 801 Waukegan Road, Glenview, IL 60025.

 

WHEREAS, Senomyx and Kraft entered into that certain Collaborative Research and
License Agreement dated as of December 6, 2000, as amended by that certain First
Amendment dated May 2, 2002 and that certain Second Amendment dated April 29,
2005, (collectively, the “Agreement”); and

 

WHEREAS Senomyx and Kraft wish to amend the Agreement to extend the
Collaborative Period for the [***] Phase for an additional two (2) year period
in the manner set forth in this Third Amendment and otherwise to provide for
certain agreements by the parties as set forth herein (capitalized terms used
but not otherwise defined in this Third Amendment shall have the meanings given
such terms in the Agreement).

 

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.             Section 3.3(B) of the Agreement is hereby amended and restated in
its entirety as follows:

 

“(B)  Product Commercialization Plan.  Within [***] of selection of the Selected
Compound, Kraft will prepare a detailed Product Commercialization Plan for
approval by the Steering Committee, which will be made a part of the minutes of
the Steering Committee.  The Product Commercialization Plan will include
commercially reasonable timelines (which if commercially reasonable will provide
for the commercialization of Products within [***]) and levels of diligence
necessary for Kraft to maintain the respective co-exclusive and exclusive
licenses, as provided for under Section 10 of the Agreement.”

 

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2.             Section 9.3.1 of the Agreement is hereby amended and restated in
its entirety as follows:

 

“Royalty for [***] Products.  Kraft will pay to Senomyx the following earned
royalties during the Royalty Term beginning on the date that Patent Rights
Controlled by Senomyx or its Affiliates arise claiming the composition of
matter, or manufacture (if such method of manufacture is used by Kraft or
Kraft’s manufacturer) or use of a Selected [***] Compound that Kraft
incorporates or has incorporated into a [***] Product made, used, or sold by
Kraft in the country covered by such Patent Rights and ending on the date that
such Patent Rights for such Selected [***] Compound (i) expire or are canceled,
(ii) are declared invalid or unenforceable by an unreversed and unappealable
decision of a court or other appropriate body of competent jurisdiction,
(iii) are admitted to be invalid or unenforceable through reissue, disclaimer or
otherwise, or (iv) are abandoned:

 

(A)                              With respect to sales during the first one
(1) year period following the date of the First Commercial Sale of a [***]
Product(s), Kraft will pay Senomyx a royalty equal to [***] on total annual Net
Sales of each [***] Product(s); and

 

(B)                                With respect to sales after the one year
anniversary of the First Commercial Sale of a [***] Product(s), Kraft will pay
Senomyx a royalty equal to [***] on total annual Net Sales of each [***]
Product(s).

 

Multi-Component [***] Product.  If a [***] Product in Field III is combined and
sold in the form of a multi-component product containing ingredients, which
ingredients themselves are not in Field III, then Kraft will be entitled to
adjust the royalties paid to Senomyx under Section 9.3.1 by adjusting the Net
Sales on which the royalties are based.  In such event, the Net Sales base will
be adjusted by the following percentage: [***].”

 

3.             Section Section 9.5 of the Agreement is hereby amended and
restated in its entirety as follows:

 

“9.5        Manufacturing and Capital Credits.  Kraft may in its sole
discretion, manufacture or enter into supply and manufacturing agreements with a
mutually agreed upon Third Party regarding Selected Compounds; provided,
however, that Senomyx will have the right of first negotiation and refusal to
manufacture any such Selected Compounds, subject to provisions of cost, quality
and quantity.  At the request of Kraft, Senomyx will grant a license to any
Third Party hired by Kraft as necessary solely to manufacture Selected Compound
under this Agreement.  Senomyx will [***]. The parties agree that a goal for the
manufacturing cost of each Selected Compound is to be [***], which is equivalent
to [***].  If the manufacturing cost of Selected Compound [***], then such costs
[***].”

 

4.             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 [***] Phase the period
beginning on the Effective Date and ending three (3) years thereafter, unless
terminated earlier in

 

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accordance with Section 15; (ii) in the case of the [***] Phase the period
beginning on the Effective Date and ending three (3) years thereafter, unless
terminated earlier in accordance with Section 15; and (iii) in the case of the
[***] Phase, the period beginning on the First Amendment Effective Date and
ending July 30, 2007, unless terminated earlier in accordance with Section 15.

 

“Dessert Category” means [***] desserts.

 

“[***] Category” means [***].

 

“Field III” means the [***] Category and the Dessert Category.

 

“Patent Rights” means all of the patents and patent applications described
subsequently herein and the rights associated with all U.S. and foreign
(including regional authorities such as the European Patent Office) utility,
design, or provisional patents or patent applications, including any
continuation, continuation-in-part, or division thereof or any substitute
application therefore or equivalent thereof, and any patent issuing thereon,
including any reissue, reexamination or extension thereof and any confirmation
patent or registration patent or patent of additions based on any such patent.

 

“Regulatory Approval Date” means the date in a particular country that a
regulatory approval is granted that will allow a Selected Compound(s) to be sold
in such country in the applicable Product.

 

5.             For avoidance of doubt, during the two (2) year extension of the
Collaborative Period for the [***] Phase resulting from this Third Amendment,
research funding for the [***] Phase will continue at the annual rate of [***].

 

6.             Senomyx has an existing collaboration with a Third Party for the
discovery of compounds that [***] in [***].  Senomyx agrees to commence
commercially reasonable efforts [***] and will continue such efforts [***] to
[***] from such Third Party [***] to the [***] and to amend this Collaborative
Research and License Agreement to [***] Compounds for use in the [***] without
any [***] other than [***] detailed herein for [***] Products.

 

7.             Subject to prior written approval of Kraft, Senomyx will issue a
press release to announce the execution of this Third Amendment and the material
terms. Thereafter, Kraft 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 Third Amendment, the terms
and conditions of the Agreement shall remain in full force and effect.

 

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

 

10.          This Third 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.

 

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IN WITNESS WHEREOF, the parties have executed this Third Amendment effective as
of July 29, 2005.

 

 

KRAFT FOODS GLOBAL, INC.

 

 

By:

/s/ Jean E. Spence

 

 

 

Title:

 Executive Vice President

 

 

 

Date:

 7/29/05

 

 

 

 

 

SENOMYX, INC.

 

 

By:

/s/ Kent Snyder

 

 

 

Title:

 President and CEO

 

 

 

Date:

 7-29-05

 

 

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