Document:

Exhibit 10.1.9 

	 	
	 	Regeneron
      Pharmaceuticals, Inc.
		ID:
      [                    ]
      
	Notice of Grant of Stock
      Options	777 Old Saw Mill River
      Road
	and Option
      Agreement	Tarrytown, New York
      10591
	 
	 
		Option		
	[OPTIONEE
      NAME]	Number:               	[            	]
	[OPTIONEE
      ADDRESS]	Plan:	04	
		ID	[	]
	 			

Effective <date> (the Grant Date)
you have been granted a Non-Qualified Stock Option to buy
[     ] shares of Regeneron Pharmaceuticals, Inc. (the
Company) stock at [$     ] per share.

The total option price of the shares
granted is [$     ].

Shares in each period will become fully
vested on the date shown.

	[Shares	     	Vest Type	     	Full Vest	     	Expiration Date
							[10 years from
    Grant
	**		On Vest Date		[__/__/__]**		Date]
							[10 years from Grant
	**		On Vest Date		[__/__/__]**		Date]
							[10 years from
    Grant
	**		On Vest Date		[__/__/__]**		Date]
	 	 	 	 	 	 	 

 

	 
	
      You and the Company agree that
      these options are granted under and governed by the terms and conditions
      of the Company’s Second Amended and Restated 2000 Long-Term Incentive Plan
      and the enclosed Option Agreement, both of which are attached and made a
      part of this document.

	 

____________________
 

	**	 	
      Options for non-employee
      directors will vest in approximately equal annual 33-1/3% installments.
      Full Vest Dates will occur on the first, second, and third anniversaries
      of the Grant Date.

		     	
	***	 	
      Date to be 10 years from the
      Grant Date.

REGENERON PHARMACEUTICALS,
INC.

Non-Qualified Stock Option

OPTION AGREEMENT
PURSUANT TO THE REGENERON PHARMACEUTICALS, INC.
SECOND AMENDED AND
RESTATED 2000 LONG-TERM INCENTIVE PLAN
(Non-Employee Director Grant)

          THIS
AGREEMENT, made as of the date on the Notice
of Grant of Stock Options, by and between
Regeneron Pharmaceuticals, Inc., a New York corporation (the "Company"), and the
individual named on the Notice of Grant of
Stock Options (the "Grantee"); 

          WHEREAS,
the Grantee is a non-employee member of the board of directors of the Company
(the "Board") and the Company desires to afford the Grantee the opportunity to
acquire or enlarge the Grantee's stock ownership in the Company so that the
Grantee may have a direct proprietary interest in the Company's success; and

          WHEREAS,
the Committee administering the Company's Second Amended and Restated 2000
Long-Term Incentive Plan (as amended from time to time, the "Plan") has granted
(as of the effective date of grant specified in the Notice of Grant of Stock Options) to
the Grantee a Stock Option to purchase the number of shares of the Company's
Common Stock ($.001 par value) (the "Common Stock") as set forth in the
Notice of Grant of Stock
Options. 

          NOW,
THEREFORE, in consideration of the covenants and agreements herein contained,
the parties agree as follows: 

     1. Grant of Award.
Pursuant to Section 7 of the Plan, the
Company grants to the Grantee, subject to the terms and conditions of the Plan
and subject further to the terms and conditions set forth here, the option to
purchase from the Company all or any part of an aggregate of shares of Common
Stock at the purchase price per share (the "Option") as shown on the
Notice of Grant of Stock
Options. No part of the Option granted hereby
is intended to qualify as an Incentive Stock Option under Section 422 of the
Internal Revenue Code of 1986, as amended (the "Code"). 

     2. Vesting; Exercise.
(a) The Option is exercisable in
installments as provided on the Notice of
Grant of Stock Options. To the extent that
the Option has become exercisable with respect to the number of shares of Common
Stock as provided on the Notice of Grant of
Stock Options and subject to the terms and
conditions of the Plan, including without limitation, Section 7(c)(2), the
Option may thereafter be exercised by the Grantee, in whole or in part, at any
time or from time to time prior to the expiration of the Option in accordance
with the requirements set forth in Section 7(c)(3) of the Plan, including,
without limitation, the filing of such written form of exercise notice as may be
provided by the Company, and in accordance with applicable tax and other laws.
In addition to the methods of payment described in Section 7(c)(3) of the Plan,
the Grantee shall be eligible to pay for shares of Common Stock purchased upon
the exercise of the Option by directing the Company to withhold shares of Common
Stock that would otherwise be issued pursuant to the Option exercise having a
Fair Market Value (as measured on the date of exercise) equal to the Option
exercise price. The Grantee acknowledges that it is the Grantee's responsibility
to satisfy any federal, state and local tax requirements related to the exercise
of the Option. 

     (b)
The Notice of
Grant of Stock Options indicates each date
upon which the Grantee shall be entitled to exercise the Option with respect to
the number of shares of Common Stock granted as indicated provided that (except
as set forth below with respect to Retirement) the Grantee has not incurred a
termination of service as a member of the Board prior to such date. There shall
be no proportionate or partial vesting in the periods between the Full Vest
Dates specified in the Notice of Grant of
Stock Options and all vesting shall occur
only on the Full Vest Dates. Except as otherwise provided below or in the
Notice of Grant of Stock
Options or as may be otherwise determined by
the Committee in accordance with Section 7(e) of the Plan, no vesting shall
occur after such date as the Grantee ceases to be on the Board and all unvested
Options shall be forfeited at such time. Notwithstanding the preceding sentence,
upon the Grantee’s Retirement from service on the Board, the Option shall
continue to vest in installments as provided on the Notice of Grant of Stock Options as if
the Grantee had remained in service on the Board. For purposes of this
Agreement, "Retirement" shall mean a voluntary termination of service on the
Board (including by not standing for re-election) by the Grantee at a time when
the Grantee meets both of the following criteria: the Grantee has served as a
member of the Board for a minimum of three (3) years, and the combination of the
Grantee’s age and total years of service as a member of the Board equals a
minimum of 80. 

     (c) Notwithstanding anything herein
or in the Notice of Grant of Stock
Options to the contrary, the Option shall be
fully vested on the date of a Change in Control. If the application of the
provision in the foregoing sentence, similar provisions in other stock option or
restricted stock grants, and other payments and benefits payable to the Grantee
in connection with a Change in Control (collectively, the “Company Payments”)
would result in the Grantee being subject to the excise tax payable under
Internal Revenue Code Section 4999 (the “Excise Tax”), the amount of any Company
Payments shall be automatically reduced to an amount one dollar less than an
amount that would subject the Grantee to the Excise Tax; provided, however, that the reduction
shall occur only if the reduced Company Payments received by the Grantee (after
taking into account further reductions for applicable federal, state and local
income, social security and other taxes) would be greater than the unreduced
Company Payments to be received by the Grantee minus (i) the Excise Tax payable
with respect to such Company Payments and (ii) all applicable federal, state and
local income, social security and other taxes on such Company Payments. If the
Company Payments are to be reduced in accordance with the foregoing, the Company
Payments shall be reduced as mutually agreed between the Company and the Grantee
or, in the event the parties cannot agree, in the following order (1)
acceleration of vesting of any option where the exercise price exceeds the fair
market value of the underlying shares at the time the acceleration would
otherwise occur, (2) any lump sum severance based on a multiple of base salary
or bonus, (3) any other cash amounts payable to the Grantee, (4) any benefits
valued as parachute payments, and (5) acceleration of vesting of any equity not
covered by (1) above. 

2

     3. Option Term.
Except as otherwise provided in the next
sentence or in the Plan, the Option shall expire on the tenth anniversary of the
grant of the Option as shown on the Notice of
Grant of Stock Options. In the event of
termination of service as a member of the Board of the Company, except as may be
otherwise determined by the Committee in accordance with Section 7(e) of the
Plan, the vested portion of the Option shall expire on the earlier of (i) the
tenth anniversary of this grant, or (ii)(A) subject to (D) below, three months
after such termination if such termination is for any reason other than death,
Retirement, or long-term disability, (B) the tenth anniversary of this grant if
such termination is due to the Grantee's Retirement, (C) one year after the
termination if such termination is due to the Grantee's death or long-term
disability or (D) one year after such termination if such termination is at any
time within two years after the occurrence of a Change in Control. 

     4. Restrictions on Transfer
of Option. The Option granted hereby
shall not be transferable other than by will or by the laws of descent and
distribution. During the lifetime of the Grantee, this Option shall be
exercisable only by the Grantee. In addition, except as otherwise provided in
this Agreement, the Option shall not be assigned, negotiated, pledged or
hypothecated in any way (whether by operation of law or otherwise), and the
Option shall not be subject to execution, attachment or similar process. Upon
any other attempt to transfer, assign, negotiate, pledge or hypothecate the
Option, or in the event of any levy upon the option by reason of any execution,
attachment, or similar process contrary to the provisions hereof, the Option
shall immediately become null and void. Notwithstanding the foregoing provisions
of this Section 4, subject to the approval of the Committee in its sole and
absolute discretion and to any conditions that the Committee may prescribe, the
Grantee may, upon providing written notice to the Company, elect to transfer the
Option to members of his or her immediate family, including, but not limited to,
children, grandchildren and spouse or to trusts for the benefit of such
immediate family members or to partnerships in which such family members are the
only partners; provided, however, that no such transfer may be made in exchange
for consideration. 

     5. Rights of a Stockholder.
The Grantee shall have no rights as a
stockholder with respect to any shares of Common
Stock subject to this Option prior to the date of issuance to the Grantee of a
certificate or certificates for such shares. No adjustment shall be made for
dividends in cash or other property, distributions, or other rights with respect
to such shares for which the record date is prior to the date upon which the
Grantee shall become the holder of record therefor. 

     6. Compliance with Law and
Regulations. This award and any
obligation of the Company hereunder shall be subject to all applicable federal,
state and local laws, rules and regulations and to such approvals by any
government or regulatory agency as may be required. The Company shall be under
no obligation to effect the registration pursuant to federal securities laws of
any interests in the Plan or any shares of Common Stock to be issued hereunder
or to effect similar compliance under any state laws. The Company shall not be
obligated to cause to be issued or delivered any certificates evidencing shares
of Common Stock pursuant to this Agreement unless and until the Company is
advised by its counsel that the issuance and delivery of such certificates is in
compliance with all applicable laws, regulations of governmental authority and
the requirements of any securities exchange on which shares of Common Stock are
traded. The Committee may require, as a condition of the issuance and delivery
of certificates evidencing shares of Common Stock pursuant to the terms hereof,
that the recipient of such shares make such agreements and representations, and
that such certificates bear such legends, as the Committee, in its sole
discretion, deems necessary or desirable. Except to the extent preempted by any
applicable federal law, this Agreement shall be construed and administered in
accordance with the laws of the State of New York without reference to its
principles of conflicts of law. 

     7. Grantee Bound by Plan.
The Grantee acknowledges receipt of a
copy of the Plan and agrees to be bound by all the terms and provisions thereof.
The Plan is incorporated herein by reference, and any capitalized term used but
not defined herein shall have the same meaning as in the Plan. To the extent
that this Agreement is silent with respect to, or in any way inconsistent with,
the terms of the Plan, the provisions of the Plan shall govern and this
Agreement shall be deemed to be modified accordingly. 

     8. Notices.
Any notice or communication given
hereunder shall be in writing and shall be deemed given when delivered in
person, or by United States mail, at the following addresses: (i) if to the
Company, to: Regeneron Pharmaceuticals, Inc., 777 Old Saw Mill River Road,
Tarrytown, NY 10591, Attention: Secretary, and (ii) if to the Grantee, to: the
Grantee at Regeneron Pharmaceuticals, Inc., 777 Old Saw Mill River Road,
Tarrytown, NY 10591, or, if the Grantee has terminated service, to the last
address for the Grantee indicated in the records of the Company, or such other
address as the relevant party shall specify at any time hereafter in accordance
with this Section 8.

3Exhibit 10.26 

Portions of this Exhibit Have
Been
Omitted and Separately Filed
with the Securities And
Exchange
Commission with a Request For
Confidential Treatment

NON-EXCLUSIVE LICENSE AND PARTIAL
SETTLEMENT AGREEMENT

     This
Non-Exclusive License and Partial Settlement Agreement (“Agreement”) is entered
into as of the Effective Date by and between Genentech, Inc. (“Genentech”), a
Delaware corporation having its principal place of business at 1 DNA Way, South
San Francisco, California 94080 and Regeneron Pharmaceuticals, Inc.
(“Licensee”), a New York corporation having its principal place of business at
777 Old Saw Mill River Road, Tarrytown, NY 10591. 

WHEREAS: 

	      	A.	      	
      Genentech and Licensee are
      parties to a patent litigation now pending in the United States District
      Court, Southern District of New York, captioned Regeneron Pharmaceuticals, Inc. vs. Genentech, Inc.
      (Civil Action No. 11-CV-01156-VB) (the
      “Pending U.S. Litigation”);

		 
		B.		
      In general, Genentech claims in the Pending
      U.S. Litigation that certain of Licensee’s activities with respect to the
      biopharmaceutical product known as aflibercept infringe and/or will
      infringe certain United States patents owned by Genentech, and Licensee
      claims that none of its activities with respect to aflibercept infringe
      any valid claim of such patents; and

		 
		C.		
      Genentech and Licensee now are
      willing to settle some of the matters in dispute in the Pending U.S.
      Litigation, by means of Genentech’s granting to Licensee certain
      non-exclusive patent licenses desired by Licensee, and Licensee’s paying
      to Genentech certain monetary consideration for the grant of such rights,
      all on the specific terms and conditions set forth
  herein.

      NOW, THEREFORE, in consideration of
the promises and mutual covenants recited herein, the Parties agree as follows:

Page 1

Article I 

DEFINITIONS 

     The following
words and phrases shall have meanings set forth below solely for purposes of
this Agreement: 

    
1.01. “Affiliate” shall
mean any Person that, on or after the Effective Date, controls, is controlled
by, or is under common control with, a Party. For purposes of this definition
only, “controlled” and “control” shall mean (i) owning, directly or indirectly,
at least fifty percent (50%) of the outstanding voting securities or other
ownership interest of a Person, or (ii) possessing, directly or indirectly, the
power to manage, direct, or cause the direction of the management and policies
of a Person or the power to elect or appoint fifty percent (50%) or more of the
members of the governing body of the Person. A Person shall be an Affiliate only
during such period of time that such Person meets the definition set forth in
this Section 1.01. With respect to Genentech, the term “Affiliate” shall not
include Chugai Pharmaceutical Co., Ltd. (“Chugai”) unless and until Genentech
provides written notice to Licensee specifying Chugai as an Affiliate of
Genentech. 

    
1.02. “Calendar Quarter”
shall mean each three month period commencing January 1, April 1, July 1 and
October 1 of each calendar year. 

    
1.03. “Designee” shall
mean any Person (other than an Affiliate of Licensee) that is employed by or
otherwise under written contract with Licensee to make, use, sell, offer for
sale, promote, distribute, or market Licensed Product in the Field in the
Territory on behalf of, or in collaboration or partnership with, Licensee;
provided however, the term “Designee” shall not apply to any such Person to
which Licensed Product is sold by Licensee solely for resale by such Person to
Third Parties in the Field in the Territory, where such Person (i) does not pay
any consideration to Licensee or any Affiliate of Licensee in connection with
its resale of Licensed Product, and (ii) has no significant contractual
obligations to Licensee or any Affiliate of Licensee with regard to marketing or
promotion of the Licensed Product. 

    
1.04. “Effective Date”
shall mean December 31, 2011. 

    
1.05. “Encumbered Patent”
shall mean any U.S. patent or U.S. patent application, other than those within
the Excluded Patents, that is owned or co-owned by Genentech as of the Effective
Date, and with respect to which Genentech has entered into a written agreement
prior to the Effective Date that grants one or more Third Parties a license,
co-license, co-ownership, control, right to enforce, or other right in regards
to such patent or patent application, as a consequence of which Genentech is
contractually precluded, as of the Effective Date, from granting to Licensee a
license under such patent or patent application, or under a U.S. patent that
issues from or claims priority to such patent application, of the scope set
forth in Section 2.01, without breaching such written agreement or owing a
royalty or other financial obligation to one or more of such Third Parties.

    
1.06. “Europe” shall mean
the member states of the European Union together with the member states of the
European Economic Area and Switzerland. 

Page 2

      1.07.
“Excluded Patents” shall mean (i) the U.S.
patents listed on Exhibit A hereto; (ii) any U.S. patent issuing at any time
from any patent application to which any patent listed on Exhibit A claims
priority; (iii) any U.S. patent issuing at any time from a divisional,
continuation, or continuation-in-part of any patent application to which any
patent listed on Exhibit A claims priority; (iv) all reissues, reexaminations,
and extensions of any of the foregoing (i), (ii), and (iii); and (v) all
non-U.S. patents and non-U.S. patent applications that are owned or co-owned by
Genentech prior to or after the Effective Date, and all extensions thereof (for
example, any Supplementary Protection Certificate). 

      1.08.
“Field” shall mean and be limited to the
prevention or treatment of eye diseases and eye disorders in a human through the
administration of Licensed Product to the eye, (including, but not limited to,
the prevention or treatment of age-related macular degeneration, central retinal
vein occlusion, diabetic macular edema, and/or myopic choroidal
neovascularization in a human). The Parties acknowledge and agree, for the sake
of clarity, that “Field” does not mean, and therefore excludes, the use of
Licensed Product for any other purpose, including prevention or treatment of any
other diseases or disorders other than eye diseases and eye disorders in a
human. By way of example only, and without limitation, “Field” excludes any use
of Licensed Product for the prevention or treatment of any form of breast
cancer, colorectal cancer, lung cancer, ovarian cancer, or prostate cancer in a
human. 

      1.09.
“First Commercial Sale” shall mean the
first sale in the Territory of Licensed Product by Licensee or any of its
Affiliates or Designees to a Third Party for use in the Field. That sale shall
be deemed to have occurred on the date of the first invoice to the Third Party
for the Licensed Product (which date may be prior to the Effective Date).

      1.10.
“Genentech Technology Patents” shall
mean all U.S. patents (whether issued prior to or after the Effective Date),
other than the Licensed Patents, Excluded Patents, and Encumbered Patents, that
(i) are owned or co-owned by Genentech as of the Effective Date or (ii) are
issued after the Effective Date and claim priority to a patent application owned
or co-owned by Genentech as of the Effective Date; and that, in each of cases
(i) and (ii), would be infringed by any activity licensed under Section 2.01 but
for the license granted under Section 2.02. 

      1.11.
“Gross Sales” shall have the meaning
given in Section 1.15. 

      1.12.
“Legal Proceeding” shall mean any legal
or administrative proceeding in any country, including, but not limited to, the
Pending U.S. Litigation and any legal or administrative proceeding in Europe,
now or in the future, involving [**************]. 

      1.13.
“Licensed Patents” shall mean (i) U.S.
Patent Nos. 5,952,199; 6,100,071; 6,383,486; 6,897,294; and 7,771,721; (ii) any
U.S. patent issuing at any time from any patent application to which any of the
foregoing patents claim priority; (iii) any U.S. patent issuing at any time from
a divisional, continuation, or continuation-in-part of any patent application to
which any of the foregoing patents claims priority; and (iv) all reissues,
reexaminations, and extensions of any of the foregoing (i), (ii), and (iii).
Under no circumstance shall a Licensed Patent be deemed
to be within the definition of Excluded Patents. The Parties acknowledge and
agree, for the sake of clarity, that the definition of Licensed Patents set
forth in this Section 1.13 includes any U.S. patent issuing from any patent
application, or any divisional, continuation, or continuation-in-part of any
patent application, that is in the chain of applications through which any of
the U.S. patents listed in clause (i) claims priority. 

Page 3

     1.14.
“Licensed Product” shall mean aflibercept,
which is being sold in the Field in the Territory under the trade name EyleaTM as
of the Effective Date, and any pharmaceutical formulation containing aflibercept
that is intended for use in the Field in the Territory. 

    
1.15. “Net Sales” shall
mean: 

          1) The
gross amounts invoiced for sales of all Licensed Product, commencing with the
First Commercial Sale, sold in the Territory by Licensee, its Affiliates and
Designees to Third Parties for use in the Field (such invoiced amounts referred
to hereinafter as “Gross Sales”), less the following deductions from Gross Sales
which are actually incurred: 

	      	(i)	      	
      credits or allowances granted for
      billing errors or for damaged, outdated, returned, rejected or recalled
      Licensed Product;

		 
		(ii)		
      uncollectible amounts on
      previously sold Licensed Product and retroactive price
      reductions;

		 
		(iii)		
      reasonable trade, cash and quantity discounts
      or rebates;

		 
		(iv)		
      taxes, duties and any other
      governmental charges or levies imposed upon or measured by the
      manufacture, use, or sale of a Licensed Product, as adjusted by any
      rebates or refunds;

		 
		(v)		
      chargebacks and rebates, including those
      granted to managed health care organizations, wholesalers, buying groups,
      retailers or to federal, state, local and other governments, their
      agencies and purchasers and reimbursers;

		 
		(vi)		
      freight, insurance, data,
      distribution-related fees, and other charges or fees directly related to
      the handling or distribution of Licensed Product or services provided in
      connection with the handling or distribution of Licensed Product (to the
      extent not paid by a Third Party customer), subject, however, to the
      limitation that only fifty percent (50%) of any charges and fees
      associated with any credit card transactions may be included in the
      deductions; and

		 
		(vii)		
      nursing fees, and inventory management fees,
      discounts or credits; and credits and allowances made for wastage
      replacement, indigent patients, patients unable to satisfy co-pay
      obligations and similar programs;

All of the foregoing elements of Net
Sales calculations shall be determined and recorded in accordance with U.S.
Generally Accepted Accounting Principles, consistently applied. Where actual
data for a particular deduction is not reasonably available at the time that a
royalty payment is due under this Agreement with respect
to relevant Gross Sales, Licensee shall make a reasonable estimate of that
deduction for purposes of calculating Net Sales due for a particular Calendar
Quarter. Licensee will subsequently make any required adjustment with respect to
that deduction in the royalty payment owed for the Calendar Quarter in which
actual data for a particular deduction does reasonably become available. In the
case of actual data for a particular deduction that is not reasonably available
until after the Royalty Term, Licensee’s royalty payments made during the
Royalty Term shall be adjusted by a subsequent payment to Genentech or refund to
Licensee (as the case may be) as required based on such actual data, provided,
however, that (i) Licensee shall report such actual data to Genentech as soon as
it reasonably becomes available to Licensee, and (ii) any such refund to
Licensee shall not in any event exceed five million U.S. dollars ($5,000,000).

Page 4

          2) In the event a Licensed Product is sold in combination with
one or more other active ingredients that are not the subject of this Agreement
(as used in this definition of Net Sales, a “Combination”), then the gross
amount invoiced for that Licensed Product shall be calculated by multiplying the
gross amount invoiced for such Combination by the fraction A/(A+B), where “A” is
the gross amount invoiced for the Licensed Product sold separately and “B” is
the gross amount invoiced for the other active ingredient(s) sold separately.

In the event that the other active
ingredient(s) is not sold separately, then the gross amount invoiced for that
Licensed Product shall be calculated by multiplying the gross amount invoiced
for the Combination by the fraction A/C, where “A” is the gross invoice amount
for the Licensed Product, if sold separately, and “C” is the gross invoice
amount for the Combination. 

In the event that no such separate
sales are made, Net Sales for royalty determination shall be determined by the
Parties in good faith. 

    
1.16. “Party” shall mean
either Genentech or Licensee, and when used in the plural shall mean both
Genentech and Licensee. 

    
1.17. “Person” shall mean an individual, trust, corporation, partnership, joint venture, limited liability company, association,
unincorporated organization or other legal or governmental entity. 

    
1.18. “Royalty Term”
shall mean the period commencing on the date of the First Commercial Sale and
ending on May 7, 2016. 

    
1.19. “Term of this
Agreement” shall have the meaning given in Section 7.01. 

    
1.20. “Territory” shall
mean the United States of America only, including its territories and
possessions. 

    
1.21. “Third Party” shall
mean any Person other than Genentech or Licensee or any of their respective
Affiliates and Designees. 

     1.22.
“U.S.” and “United States” shall mean the
United States of America, including its territories and possessions. 

Page 5

Article II 

GRANTS 

    
2.01. License to
Licensed Patents. Subject to the terms and
conditions of this Agreement, Genentech hereby grants to Licensee and Licensee
hereby accepts a non-exclusive license under the Licensed Patents for the Term
of this Agreement to: 

	     	(i)	     	make and have made
      Licensed Product in the Territory solely for use or sale in the Field in
      the Territory, and to export Licensed Product that is initially made in
      bulk or other non-finished form in the Territory solely for the purpose of
      converting such Licensed Product to filled and/or finished form outside
      the Territory for reimportation into the Territory pursuant to Section
      2.01(ii);
		  
		(ii)		reimport Licensed
      Product into the Territory that initially is made in bulk or other
      non-finished form in the Territory pursuant to the preceding subsection
      2.01(i) and subsequently converted to filled and/or finished form outside
      the Territory, which reimported Licensed Product is solely for use or sale
      in the Field in the Territory;
		 
		(iii)		import Licensed
      Product into the Territory that is made on or after October 29, 2012
      outside the Territory for export to the Territory, which imported Licensed
      Product is solely for use or sale in the Field in the Territory;
    and
		 
		(iv)		use, sell, offer for
      sale, and have sold Licensed Product made or had made pursuant to the
      preceding subsection 2.01(i), or reimported pursuant to the preceding
      subsection 2.01(ii), or imported pursuant to the preceding subsection
      2.01(iii), in each case solely in the Field in the
  Territory.

     2.02.
License to Genentech Technology
Patents. Subject to the terms and conditions
of this Agreement, Genentech hereby grants to Licensee and Licensee hereby
accepts a non-exclusive license under the Genentech Technology Patents for the
Term of this Agreement solely to practice the license granted to Licensee in
Section 2.01. 

Page 6

     2.03.
Covenant Not To Sue For Activities Prior
to Effective Date. Genentech, on behalf of
itself and its predecessors, successors, assigns, and Affiliates, agrees and
covenants not to sue Licensee, its Affiliates or Designees for infringement of
any of the Licensed Patents or Genentech Technology Patents based on any
activity that occurred prior to the Effective Date that would be licensed under
Section 2.01 had such activity occurred on or after the Effective Date;
provided, however, that this covenant does not release Licensee, its Affiliates
and Designees from any obligation under this Agreement, including, but not
limited to, the obligation to pay the sales milestone and royalties and to
maintain records and make reports under and in accordance with Articles III and
IV with respect to all Net Sales of Licensed Product sold during the Royalty
Term. The Parties acknowledge and agree, for the sake of clarity, that (i) the
covenant in this Section 2.03 is given only with respect to the Licensed Patents
and Genentech Technology Patents, and not any other patents, and (ii) nothing
contained in this Agreement is intended or shall be deemed to prevent or limit
either Party from seeking, in connection with any Legal Proceeding to the extent
permitted by governing laws and rules, discovery from the other Party and its
Affiliates and Designees relating to any activity that occurred prior to the
Effective Date. 

    
2.04. Right of
Licensee to Grant Sublicenses. Licensee shall
have the right to grant sublicenses to its Affiliates and Designees under the
licenses granted to Licensee in Sections 2.01 and 2.02; provided, however, that
Licensee may not grant to any of its Designees a sublicense to have Licensed
Product made for such Designee by a Third Party. Licensee shall always be
responsible for the payment of royalties on Net Sales of Licensed Product sold
during the Royalty Term by any of its Affiliates or Designees and for the
performance by such Affiliates and Designees of obligations delegated to them by
Licensee pursuant to this Agreement, irrespective of whether such Affiliate or
Designee has formally been granted a sublicense by Licensee under this Section
2.04. No Affiliate or Designee of Licensee shall have the right to grant any
further sublicenses to any Licensed Patents and/or Genentech Technology Patents,
except that any Affiliate of Licensee may grant a sublicense to have Licensed
Product made for such Affiliate. 

    
2.05. License Scope
Limitations. Licensee acknowledges and agrees
that the licenses granted to it in this Article II are limited in scope and, by
way of example only and without limitation, do not confer on Licensee or its
Affiliates or Designees any license (express or implied) or any other rights (i)
under any Excluded Patent, including, but not limited to, [**************]; (ii)
under any Encumbered Patent; (iii) to promote, distribute, market, sell, offer
for sale, or have sold any Licensed Product outside the U.S. for any purpose;
(iv) to make or have made Licensed Product (in any form) in the U.S. for sale or
offer for sale in any other country; (v) to make or have made Licensed Product
(in any form) in the U.S. for export to any other country, except to the extent
expressly permitted under Section 2.01(i); (vi) to make or have made Licensed
Product (in any form) outside the U.S. for sale or offer for sale outside the
U.S.; or (vii) to make, have made, use, promote, distribute, market, sell, offer
for sale, or have sold any Licensed Product for any use
outside the Field. Licensee further acknowledges and agrees that (a) nothing in
Article II is intended or shall be deemed to grant, whether by implication,
estoppel, or otherwise, any right or license under any non-U.S. patent or any
extension thereof, including but not limited to [**************], and (b) any
activities outside the U.S. involving or relating to Licensed Product continue
to be subject to, and are conducted at risk of Genentech’s asserting at any
time, all claims of patent infringement under non-U.S. patents and/or claims for
violation of other non-U.S. legal rights, notwithstanding the licenses under the
Licensed Patents and Genentech Technology Patents that are granted in Section
2.01 and Section 2.02 and the covenant that is granted in Section 2.03.

Page 7

     2.06.
Disputed Activities. The Parties acknowledge and agree, for the avoidance of
doubt, that Licensee shall not be in breach of this Agreement by performing any
activities, or inducing or encouraging others to perform any activities, that
Genentech contends are outside the scope of the licenses granted to Licensee
pursuant to Sections 2.01 and 2.02 of this Agreement and/or the covenant granted
to Licensee pursuant to Section 2.03; provided, however, that Genentech shall be
entitled to seek any other relief that may be available at law and equity to
redress such activities, including, but not limited to, filing an action against
Licensee and/or such others for infringement of any patents. 

    
2.07. Acknowledgement, Licensee acknowledges that U.S. patents are publicly available
documents and consequently Licensee had the ability prior to the Effective Date
to search for and identify those U.S. patents owned or co-owned by Genentech for
which it believed a license was necessary or desirable to make, use, or sell
Licensed Product in the Field in the Territory. Licensee further acknowledges
that it could have sought from Genentech royalty-bearing licenses with respect
to only one or several individual patents within the Licensed Patents and/or the
Genentech Technology Patents prior to entering into this Agreement, but that for
reasons of convenience, business certainty, and other considerations, Licensee
agreed to enter into this Agreement and obtain the licenses herein with respect
to all patents within the Licensed Patents and Genentech Technology Patents.

Article III 

MILESTONE AND ROYALTIES OWED 

    
3.01. Sales
Milestone. Within thirty (30) days following
the date when total cumulative Net Sales of Licensed Product reach four hundred
million U.S. dollars ($400,000,000), Licensee shall make a one-time,
non-refundable, non-creditable payment of sixty million U.S. dollars
($60,000,000) to Genentech. 

Page 8

     3.02.
Royalties. Licensee shall pay to Genentech the following royalties as a percentage
of Net Sales of Licensed Product sold during the Royalty Term:         

	     	(i)	     	4.75% on total
      cumulative Net Sales of Licensed Product between four hundred million U.S.
      dollars ($400,000,000) and three billion U.S. dollars ($3,000,000,000);
      and
		  
		(ii)		5.50% on total
      cumulative Net Sales of Licensed Product in excess of three billion U.S.
      dollars ($3,000,000,000).

Royalties shall be paid within sixty
(60) days after the end of each full or partial Calendar Quarter during the
Royalty Term in which sales subject to royalties occur. For the purpose of
calculating royalties under this Section 3.02, the sale of a unit of Licensed
Product shall be deemed to occur on the date of the first invoice to a Third
Party for the Licensed Product. Royalties owed under this Section 3.02 are in
addition to the sales milestone owed under Section 3.01. The Parties acknowledge
and agree, for the sake of clarity, that no royalties shall be owed on any
Licensed Product that is sold after the last day of the Royalty Term (even if
such Licensed Product was made during the Royalty Term). 

     3.03.
Sales To or Between Licensee, Affiliates,
and Designees. No royalties shall be paid
upon sales of Licensed Product to or between any of Licensee, its Affiliates and
Designees for further sale; provided, however, that in such cases royalties
shall be paid based on the first sale of each unit of Licensed Product by
Licensee, or any of its Affiliates or Designees, to a Third Party in an arm’s
length transaction. 

    
3.04. No Other
Consideration. Without the prior written
consent of Genentech, Licensee and its Affiliates and Designees shall not
solicit or accept any consideration for the sale of Licensed Product other than
as will be accurately reflected in Net Sales; provided, however, that the supply
or other disposition of Licensed Product, without charge, in the Field in the
Territory (i) as samples, (ii) as replacement for damaged or otherwise unusable
Licensed Product (provided that such replacement is not with respect to damaged
or otherwise unusable Licensed Product for which a deduction from Net Sales has
or will be taken under Section 1.15); (iii) for use in clinical studies
conducted in the Territory to obtain U.S. regulatory approval(s) or for post-marketing surveillance purposes in the U.S. (also referred to as Phase IV
clinical trials); or (iv) for use in any tests or studies reasonably necessary
to comply with any applicable U.S. law or U.S. regulation, or any request by a
U.S. regulatory or U.S. governmental authority, in each of cases (i), (ii),
(iii), and (iv) in an amount that is commercially reasonable, shall not be
included in the computation of Net Sales. 

Page 9

Article IV 

RECORDS, REPORTS AND PAYMENTS

     4.01.
Records Retention. Licensee and its Affiliates shall keep true, complete, and
accurate records of all sales of all Licensed Product in the Field in the
Territory in sufficient detail to permit Genentech to confirm the accuracy of
Licensee’s Net Sales calculations and royalty calculations, including for sales
by a Designee. At Genentech’s request and expense, Licensee shall permit not
more than once in a twelve (12) month period an independent certified public
accountant appointed by Genentech and approved by Licensee (such approval not to
be unreasonably withheld or delayed) to examine at a mutually agreeable location
in New York, NY or another city as to which the Parties may mutually agree, upon
reasonable notice and at reasonable times, such records to the extent necessary
for Genentech to confirm the accuracy of Licensee’s Net Sales calculations
(including the details of all deductions taken from Gross Sales to arrive at Net
Sales) and royalty calculations. Licensee shall be responsible for providing the
appointed accountant access at such location to such records that in the
ordinary course of business are in the possession, custody, or control of
Licensee and its Affiliates. In addition, Licensee shall (a) require its
Designees to keep and maintain true, complete, and accurate records of all Net
Sales and the calculation of royalties due on such Net Sales for at least three
(3) years from the Calendar Quarter in which such Net Sales are made, ensure
compliance with such obligation by its Designees, and require quarterly written
reports to Licensee of all Net Sales and all deductions therefrom, and (b) use
commercially reasonable efforts to cause its Designees to make available for
inspection by the appointed accountant, at a mutually convenient location in the
United States, true, complete, and accurate records of Designee’s sales of all
Licensed Product in the Field in the Territory in sufficient detail to permit
Genentech to confirm the accuracy of Licensee’s Net Sales calculations and
royalty calculations based on such Designee’s sales. The appointed accountant
shall enter into a confidentiality agreement with Licensee upon terms comparable
to those in Section 8.13, which confidentiality agreement shall continue to
apply to any information provided to such accountant for the examination unless
and until such information (i) becomes generally available to the public other
than through any breach of the confidentiality agreement by such accountant or
(ii) becomes known to such accountant other than from or through a Person having
an obligation to Licensee not to disclose such information. Such examination of
the records of Licensee, its Affiliates and Designees shall be limited to a
period of time no more than three (3) years immediately preceding the request
for examination. The report of any such examination shall be made simultaneously
to Genentech and Licensee and shall include a statement of the amount, if any,
by which Licensee has underpaid or overpaid its royalties, and a description of
the nature and basis of the underpayment or overpayment. In the event of an
underpayment of royalties, Licensee shall promptly pay the deficiency plus
interest pursuant to Section 4.05 to Genentech; and if royalties to Genentech
were underpaid by more than five (5) percent, then Licensee shall additionally
reimburse Genentech for its reasonable costs incurred in examining such records.

Page 10

     4.02.
Reports. Within sixty (60) days after the end of each full or partial Calendar
Quarter during the Royalty Term, Licensee shall furnish to Genentech a written
report of all sales of all Licensed Product during such Calendar Quarter. Such
report shall separately state with respect to such sales (i) the total Gross
Sales, (ii) the Net Sales, and (iii) for all Net Sales subject to royalties
pursuant to Section 3.02, the amount of royalties owed. Genentech shall maintain
this report as confidential pursuant to Section 8.13. 

    
4.03. Payments. The sales milestone (Section
3.01), royalties (Section 3.02), and any other amounts owed by Licensee to
Genentech under this Agreement shall be paid in U.S. dollars and, unless
otherwise agreed to by Genentech in writing, shall be made by wire transfer of
immediately available funds to such bank account as Genentech may from time to
time designate in writing. All payments shall be free and clear of any taxes,
duties, levies, fees or charges. 

    
4.04. Finality. Except in the event of
Genentech’s material breach of Section 2.01, 2.02, and/or 2.03, as established
in an arbitration proceeding conducted pursuant to Section 8.10, Licensee hereby
releases and forever waives any right to challenge or dispute any amounts paid
or owed on Licensed Product pursuant to the terms and conditions of this
Agreement after the Effective Date, except to the extent the Parties have a
disagreement with respect to the calculation of Net Sales or the timing of the
royalty payments owed on Net Sales of Licensed Product. 

    
4.05. Interest. Any payment not made when
due shall bear interest, calculated from the date such payment was due, at the
annual rate of one percent (1%) over the prime rate of interest as reported in
the Wall Street Journal. 

Article V 

REPRESENTATIONS AND WARRANTIES;
COVENANTS 

    
5.01. Each Party
represents and warrants that it has been represented by independent legal
counsel of its own choosing in connection with this Agreement, and that it had
adequate opportunity to consult with such counsel prior to the execution of this
Agreement. 

    
5.02. Genentech
represents and warrants that, as of the Effective Date, it is the owner of the
Licensed Patents, and that it has the right to grant the licenses set forth in
Article II. 

    
5.03. Genentech
represents that, to the best of its knowledge as of the Effective Date, it did
not within the six months preceding the Effective Date assign to any of its
Affiliates or any Third Party ownership of, or grant to any of its Affiliates or
any Third Party an exclusive license under, any U.S. patent that (i) would be
infringed by Licensee’s practice of the license granted to it in Section 2.01,
and (ii) but for such assignment or exclusive license, would have been within
the definition of Genentech Technology Patents as of the
Effective Date. As used in this paragraph, “knowledge” means actual knowledge
following reasonable inquiry within Genentech’s Legal Department based on
whatever facts Genentech has regarding, for example, the structure, composition,
formulation, and manufacture of the Licensed Product. 

Page 11

     5.04.
Genentech represents that, to the best of its
knowledge as of the Effective Date, Licensee’s practice of the license granted
to it in Section 2.01 would not infringe any U.S. patent within the Encumbered
Patents issued and existing as of the Effective Date. As used in this paragraph,
“knowledge” means actual knowledge following reasonable inquiry within
Genentech’s Legal Department based on whatever facts Genentech has regarding,
for example, the structure, composition, formulation, and manufacture of the
Licensed Product. 

    
5.05. Licensee represents
and warrants that it has obtained (or will obtain) the agreement of its
Affiliates, Designees, and any Person to whom Licensee discloses any of the
terms of this Agreement under and in accordance with Section 8.13(iii), to be
bound by Sections 8.08 and 8.15. Genentech represents and warrants that it will
obtain the agreement of any Third Party to which Genentech discloses any of the
terms of this Agreement under and in accordance with Section 8.13(iv) to be
bound by Section 8.15. 

    
5.06. Except in the event
of Genentech’s material breach of Section 2.01, 2.02, and/or 2.03, as
established in an arbitration proceeding conducted pursuant to Section 8.10,
Licensee covenants that during the Term of this Agreement it will not fail or
refuse to pay to Genentech the sales milestone (Section 3.01) and royalties
(Section 3.02) owed with respect to Licensed Product pursuant to the terms and
conditions of this Agreement. 

    
5.07. Nothing in this
Agreement is or shall be construed as: 

	      	(i)	      	
      A warranty or representation by
      Genentech as to the scope of any claim or patent or patent application
      within the Licensed Patents or the Genentech Technology
    Patents;

		 
		(ii)		
      A warranty or representation by Genentech that
      anything made, used, offered for sale, sold, or otherwise disposed of
      under any license granted in this Agreement is or will be free from
      infringement of any patent rights or other intellectual property right of
      any Third Party;

		 
		(iii)		
      A grant by Genentech, whether by
      implication, estoppel, or otherwise, of any right or license under any
      non-U.S. patent or any extension thereof, including but not limited to
      [**************];

Page 12

	      	(iv)	      	
      A grant by Genentech, whether by
      implication, estoppel, or otherwise, of any licenses other than those expressly granted under
      Article II; or

		 
		(v)		
      An obligation on the part of Genentech to bring
      or prosecute actions or suits against any Third
      Party for infringement of any of the Licensed Patents or the Genentech Technology
  Patents.

     5.08. EXCEPT AS OTHERWISE SET FORTH IN THIS AGREEMENT, NO PARTY
MAKES ANY REPRESENTATIONS OR WARRANTIES, EXPRESS OR IMPLIED, EITHER IN FACT OR
BY OPERATION OF LAW, BY STATUTE OR OTHERWISE, AND EACH PARTY SPECIFICALLY
DISCLAIMS ANY EXPRESS OR IMPLIED REPRESENTATION OR WARRANTY WHATSOEVER. THE
PARTIES SPECIFICALLY DISCLAIM ANY EXPRESS OR IMPLIED WARRANTY OF
MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, OR PATENTABILITY, VALIDITY,
OR ENFORCEABILITY OF THE LICENSED PATENTS OR THE GENENTECH TECHNOLOGY PATENTS.

Article VI 

INDEMNIFICATION 

    
6.01. Indemnification
by Licensee. Licensee shall indemnify, defend
and hold harmless Genentech, its Affiliates, and each of their respective
directors, officers, employees and agents from and against any and all
liabilities, claims, demands, expenses (including, without limitation,
reasonable attorneys’ and professional fees and other costs of litigation),
losses or causes of action (each, a “Liability”) arising out of or relating to a
claim by a Third Party in any way based on (i) the possession, manufacture, use,
sale or other disposition of Licensed Product, whether based on breach of
warranty, negligence, product liability or otherwise, or (ii) the exercise of
any right granted to Licensee or its Affiliates or Designees pursuant to this
Agreement, except to the extent, in each case (i) and (ii), that such Liability
is caused by the negligence or willful misconduct of Genentech as determined by
a court or other tribunal having jurisdiction. Upon receiving notice of any such
Liability from or with respect to any Third Party, Genentech shall promptly
inform Licensee of such notice of Liability and permit Licensee to handle and
control the defense (including litigation and settlement) of such Liability, at
Licensee’s sole expense, provided, however, that Licensee shall not settle any
such Liability without the prior written consent of Genentech (which consent
shall not be unreasonably withheld or delayed). 

Page 13

     6.02.
Indemnification for Breach of
Warranty. Any Party that breaches any
warranty set forth in Article V shall indemnify, defend and hold harmless the
other Party and its Affiliates, and each of their respective directors,
officers, employees and agents, from and against any and all liabilities,
claims, demands, expenses (including, without limitation, reasonable attorneys’
and professional fees and other costs of litigation), losses or causes of action
arising out of or relating to any such breach of warranty. 

Article VII 

TERM AND TERMINATION 

    
7.01. Term. This Agreement will commence on
the Effective Date and remain in full force and effect until the expiration of
the last patent within the Licensed Patents and the Genentech Technology Patents
(“Term of this Agreement”). Subject to the fulfillment by Licensee and its
Affiliates and Designees of all the terms and conditions of this Agreement
including, but not limited to, the payment of all amounts owed under Article
III, following the Royalty Term the licenses under Sections 2.01 and 2.02 and
any sublicense(s) granted in accordance with Section 2.04 shall become fully
paid-up and royalty free for the remainder of the Term of this Agreement.

    
7.02. Breach of
Article III. Genentech is materially relying
on Licensee’s agreement to comply fully and in all respects with Article III.
Accordingly, Genentech and Licensee agree that if Licensee fails to comply with
any section of Article III in any respect, Genentech shall notify Licensee in
writing of such failure to comply and Licensee shall have thirty (30) days to
cure the failure to comply (“the Licensee Cure Period”). If Licensee fails to
cure the non-compliance by the end of the Licensee Cure Period, Genentech shall
be entitled to seek all relief available at law and equity in an arbitration
proceeding conducted pursuant to Section 8.10. If the arbitration award includes
an order terminating this Agreement on account of Licensee’s failure to comply
with Article III, Genentech shall be entitled to file in a U.S. district court
or other tribunal of competent jurisdiction a patent infringement lawsuit
against Licensee, its Affiliates and/or Designees with respect to the Licensed
Patents, Genentech Technology Patents, and/or any other patents. 

    
7.03. Breach of
Article II. Licensee is materially relying on
Genentech’s agreement to grant the licenses and covenant not to sue provided for
in Article II. Accordingly, Genentech and Licensee agree that if Genentech
commits a material breach of Article II by revoking or terminating any of the
licenses and/or covenant provided for therein, Licensee shall notify Genentech
in writing of such material breach and Genentech shall have thirty (30) days to
cure that material breach (“the Genentech Cure Period”). If Genentech fails to
cure the material breach by the end of the Genentech Cure Period, Licensee shall
be entitled to seek all relief available at law and equity in an arbitration
proceeding conducted pursuant to Section 8.10. 

Page 14

Article VIII 

MISCELLANEOUS PROVISIONS 

     8.01.
No Other License. No license other than those expressly set forth in Article
II is or shall be deemed to have been granted under this Agreement whether by
implication, estoppel or otherwise. 

    
8.02. Relationship of
the Parties. Nothing in this Agreement is
intended or shall be deemed to constitute or give rise to a partnership, agency,
distributorship, employer-employee, joint venture, or fiduciary relationship
between the Parties. No Party shall incur any debts or make any commitments for
the other. 

    
8.03. Patent
Prosecution and Enforcement. Genentech shall
be solely responsible, at its sole discretion and expense, for the prosecution,
defense, and maintenance of the Licensed Patents and Genentech Technology
Patents (including whether to undertake such activities), and for enforcing the
same against actual or suspected Third Party infringers (including whether to
undertake such activities). 

    
8.04. Assignment. Neither Party shall assign
any of its rights or obligations hereunder except: (i) as incident to the
merger, consolidation, reorganization or acquisition of stock or assets
affecting substantially all of the assets or voting control of the assigning
Party; (ii) to any Person to which it transfers all or substantially all of its
assets related to the Licensed Product; (iii) to an Affiliate if the assigning
Party remains liable and responsible for the performance and observance of all
of the Affiliate’s duties and obligations hereunder; or (iv) with the prior
written consent of the other Party (which consent shall not be unreasonably
withheld). A Party making an assignment shall promptly give written notice
thereof to the other Party. This Agreement shall be binding upon the successors
and permitted assigns of the Parties, and the name of a Party appearing herein
shall be deemed to include the names of such Party’s successor’s and permitted
assigns to the extent necessary to carry out the intent of this Agreement. Any
assignment not in accordance with this Section 8.04 shall be void. 

    
8.05. Trade Names and
Trademarks. Except as otherwise provided
herein, no right, expressed or implied, is granted by this Agreement to use in
any manner the name “Genentech” or any other trade name or trademark of
Genentech in connection with the performance of this Agreement. Except as
otherwise provided herein, no right, expressed or implied, is granted by this
Agreement to use in any manner the name “Regeneron” or any other trade name or
trademark of Licensee in connection with the performance of this Agreement.

    
8.06. Entire Agreement. This
Agreement constitutes and contains the entire understanding and agreement of the
Parties with respect to the subject matter hereof and cancels and supersedes any and all prior negotiations, correspondence,
understandings and agreements, whether verbal or written, between the Parties
with respect to subject matter hereof. No waiver, modification, or amendment of
any provision of this Agreement shall be valid or effective unless made in
writing and signed by a duly authorized representative of each of the Parties.

Page 15

     8.07. No Effect on Other Agreements. Nothing
in this Agreement is intended or shall be deemed to amend, alter, modify, or
have any effect whatsoever on any of the terms and conditions of any other
written agreement between the Parties entered into prior to the Effective Date
that pertains to subject matter different from the subject matter of this
Agreement. Nothing in this Agreement shall be used to construe or interpret any
other written agreement between the Parties. By way of example only, and without
limitation, nothing in this Agreement is intended or shall be deemed to amend,
alter, modify, or have any effect on (i) that certain Confidentiality Agreement
that was entered into by and between the Parties with respect to the settlement
discussions that preceded this Agreement, and (ii) [**************]. 

    
8.08. No Effect Outside the Territory. Nothing contained in this Agreement is intended or shall be deemed to
have any effect whatsoever on any legal or administrative proceedings outside
the Territory, now or in the future, between Genentech, on the one hand, and
Licensee, its Affiliates, Designees, and/or any Third Party on the other hand,
relating to Licensed Product. By way of example only, and without limitation,
nothing contained in this Agreement has any effect whatsoever on legal or
administrative proceedings in Europe, now or in the future, involving
[**************]. 

    
8.09. Waiver of Breach or Default. The waiver by a Party of any breach of or default under any of the
provisions of this Agreement or the failure of a Party to enforce any of the
provisions of this Agreement or to exercise any right hereunder shall not
constitute or be construed as a waiver of any other breach or default or as a
waiver of any such rights or provisions hereunder. 

Page 16

    
8.10. Dispute
Resolution. Except as otherwise expressly
provided in this Agreement, any dispute, controversy, or claim arising out of or
in connection with or relating to this Agreement or the breach or alleged breach
thereof (including any dispute regarding arbitrability), but not including any
dispute, controversy, or claim concerning the patentability, validity,
enforceability, or infringement of any patent, shall be finally and exclusively
decided by binding arbitration under the then-current Commercial Arbitration
Rules of the American Arbitration Association (“AAA”). If the arbitration is
demanded by Genentech, the arbitration shall be held in New York, New York. If
the arbitration is demanded by Licensee, the arbitration shall be held in San
Francisco, California. The Parties shall choose, by mutual agreement, one (1)
neutral arbitrator within thirty (30) days of
receipt of the notice of the intent to arbitrate. If no arbitrator is appointed
within that time or any extension thereof to which the Parties may mutually
agree, the AAA shall make the appointment of the arbitrator within thirty (30)
days of such failure, which arbitrator shall have substantial prior experience
arbitrating patent licensing disputes. The Parties shall have the right to
conduct discovery as provided for in the Federal Rules of Civil Procedure. All
discovery shall be completed within two (2) months following the appointment of
the arbitrator. The arbitrator’s decision and award in the arbitration shall be
in writing setting forth the basis therefor and shall be rendered within six (6)
months following the appointment of the arbitrator. The award rendered by the
arbitrator shall include costs of the arbitration, reasonable attorneys’ fees,
and reasonable costs for experts and other witnesses, and judgment on the award
may be entered in any court having jurisdiction. To the extent permitted by law,
the arbitration proceeding and arbitrator’s decision shall be confidential and
the arbitrator shall issue appropriate protective orders to safeguard each
Party’s confidential information. Nothing in this Agreement shall be deemed as
preventing either Party from seeking temporary injunctive relief (or any other
provisional remedy) from any court having jurisdiction over the Parties and the
subject matter of the dispute but only to the extent necessary to protect such
Party’s name, confidential information, or other similar proprietary rights, or
to prevent any imminent irreparable harm. Each Party hereby consents to the
jurisdiction and venue of the courts in the State of California and the State of
New York for purposes of entering judgment on the arbitration award. 

     8.11.
Choice of Law. The validity, performance, construction, and effect of this Agreement
and any arbitration conducted under Section 8.10 shall be governed by and
interpreted in accordance with the laws of the State of New York without regard
to conflict of laws principles. 

    
8.12. Notices. Any notice, request, consent,
or other document required or permitted to be given under this Agreement or
otherwise relating to this Agreement shall be in writing and shall be deemed to
have been sufficiently given if delivered in person, or sent by overnight
courier or registered mail to the Party to whom it is directed at its address
shown below or such other address as such Party shall have last given by notice
to the other Party. Any such notice, request, delivery, approval or consent
shall be deemed received on the date of hand delivery (provided that such date
is a business day, otherwise it shall be deemed received on the next business
day), or one (1) business day after dispatch by overnight courier, or five (5)
business days after dispatch by registered mail. 

If to
Licensee, addressed to:
Regeneron Pharmaceuticals, Inc.
777 Old Saw Mill
River Road
Tarrytown, NY 10591
Attn:
General Counsel 

Page 17

If to
Genentech, addressed to:
Genentech, Inc.
1
DNA Way 
South San Francisco, CA
94080
Attn: Corporate Secretary 

     8.13.
Confidentiality. Each Party agrees not to disclose any of the terms of this Agreement or
any of the information contained in reports pursuant to Section 4.02 of this
Agreement to any Person without the prior written consent of the other Party;
provided, however, that each Party shall be free to disclose any such terms or
information (i) to the extent that the Party is required to make such disclosure
pursuant to any court order or subpoena, provided that the Party required to
make such disclosure shall promptly notify the other Party and allow the other
Party a reasonable opportunity to seek a protective order or injunctive relief
from the obligation to make such disclosure; (ii) that in the opinion of such
Party’s legal counsel is required to be disclosed by the securities laws or
regulations of any jurisdiction or the rules or regulations of any relevant
stock exchange, or by any other governmental law or regulation or by any order
of a government agency, provided that to the extent possible under the
circumstances the Party intending to make such disclosure shall provide prior
notice thereof to the other Party and, in addition, shall request confidential
treatment for any part of such disclosure for which such treatment may
reasonably be expected to be granted; (iii) to its Affiliates, Designees,
accountants, attorneys and other professional advisors, provided that such
Persons are obligated to keep such terms or information confidential to the same
extent as said Party and agree to be bound by Section 8.15; and
[**************]. Each Party may disclose the terms of this Section 8.13, 8.15,
and 8.16 (but no other terms of this Agreement) for the sole and exclusive
purpose of seeking from any Person to whom a Party intends to make a disclosure
under and in accordance with clause (iii) or (iv) that Person’s acceptance of
the conditions of disclosure set forth in such clause. Licensee represents that,
in the opinion of its counsel, the public disclosure of the financial terms of
this Agreement is required by the securities laws and/or regulations of the
United States as applied to Licensee. The confidentiality terms of this Section
8.13 shall survive any expiration of this Agreement or the Licensed Patents or
the Genentech Technology Patents. 

    
8.14. Publicity. Neither Party
shall issue any press release or other publicity material or make any public
representation that refers to the existence of this Agreement without the prior
written consent of the other Party (which consent shall not be unreasonably
withheld or delayed). Notwithstanding the generality of the foregoing, either
Party may issue a press release that contains, or may otherwise disclose, any or
all of the information set forth in Exhibit B. In addition, either Party may
disclose that (i) this Agreement conveys no license or other rights under any non-U.S. patents or other non-U.S. legal rights, (ii) this Agreement conveys no license or other rights with respect to any diseases or disorders other than eye diseases and eye disorders in a human, and (iii) this Agreement shall have no effect upon any patent litigation or other patent dispute outside of the United States. The text set forth in Exhibit B is for reference in connection with this Section 8.14 only and shall not control or affect in any way the meaning or construction of any other provisions of this Agreement. This Section 8.14 and any announcement or disclosure permitted under this Section 8.14 shall in no way limit the provisions of Sections 8.15 and 8.16. 

Page 18

     8.15.
Prohibited Use and Discovery of Agreement
in Legal Proceedings. This Agreement is the
result of settlement and compromise. Except as expressly set forth in Section
8.16, no Party, or any of its Affiliates or Designees, or any other Person to
which either Party discloses any of the terms of this Agreement under and in
accordance with Section 8.13(iii) or 8.13(iv), shall seek to obtain through
discovery, attempt to admit into evidence, or attempt to reference or use for
any purpose, this Agreement or any of its terms in any Legal Proceeding,
regardless of whether the Parties or any of their respective Affiliates or
Designees or such other Persons are litigants in such Legal Proceeding, and
regardless of the subject matter of such Legal Proceeding. Without in any way
limiting the generality of the foregoing, except as expressly permitted under
Section 8.16: No Party, or any of its Affiliates or Designees, or any other
Person to which either Party discloses any of the terms of this Agreement under
and in accordance with Section 8.13(iii) or 8.13(iv), shall reference or use
this Agreement, or any facts relating to the terms or existence of this
Agreement, in any Legal Proceeding for purposes of any statement, analysis,
expert opinion, or argument relating to patent infringement, patent validity,
liability, damages (including reasonable royalty and lost profits measures of
damages), willful infringement, enhanced or augmented damages, or attorneys’
fees and costs. In addition, no Party, or any of its Affiliates or Designees, or
any other Person to which either Party discloses any of the terms of this
Agreement under and in accordance with Section 8.13(iii) or 8.13(iv), shall
attempt to admit into evidence or make reference to in any Legal Proceeding the
fact that Licensee, its Affiliates and/or Designees are able to perform the
activities licensed under Article II with the permission of Genentech, or
without interference or objection by Genentech, or the like. 

    
8.16. Limited
Permitted Use of Agreement in Legal Proceedings. Notwithstanding anything set forth in Section 8.15, the Parties may use
or rely upon this Agreement in a Legal Proceeding (i) to the limited extent
necessary for the sole and exclusive purpose of enforcing this Agreement
(including, for example, (a) proving or disproving a defense of license to any
claim of patent infringement; (b) proving or disproving the right to add,
prosecute, or defend against claims, counterclaims, allegations, or parties with
respect to activities that are not licensed under Article II; or (c) in support
of a motion in limine, a request for an injunction, or any similar motion or
request to a court or other tribunal, to prevent or limit any reference to or
use of this Agreement), or (ii) in response to this Agreement’s being admitted
into evidence, or referenced or used, by any Third Party in any Legal Proceeding. In addition, notwithstanding anything set forth in Section 8.15, the Parties may disclose to the judge (but not the jury) in the Pending U.S. Litigation or any related U.S. litigation the existence of this Agreement and the Parties’ respective views regarding whether and to what extent the terms of this Agreement affect any substantive or procedural issues in such legal proceedings, so long as the disclosure is not made for any purpose prohibited by the third sentence of Section 8.15.

Page 19

     8.17.
No Admissions or
Concessions. Nothing contained in this
Agreement, nor any milestone or royalty payment made by Licensee pursuant to
this Agreement, is intended or shall be deemed to be, or offered in any Legal
Proceeding as evidence of, any admission or concession (i) by Licensee that any
Licensed Patent, Genentech Technology Patent, Encumbered Patent, Excluded Patent
or any other patent owned or co-owned by Genentech is valid, enforceable, and/or
infringed by Licensee or any of its Affiliates or Designees, or (ii) by
Genentech, that it is willing or able to grant licenses under the Licensed
Patents and/or Genentech Technology Patents, or as to what is or may be
reasonable consideration for a license under the Licensed Patents, Genentech
Technology Patents, and/or any other patent owned or co-owned by Genentech.

    
8.18. Effect of
Agreement on Pending U.S. Litigation. Nothing
contained in this Agreement shall preclude or otherwise have any effect on
Licensee’s ability in the Pending U.S. Litigation or the lawsuit referenced in
the last sentence of Section 8.19, to the extent permitted by governing laws and
rules, to (i) challenge the validity or enforceability of any patent; (ii) take
any position with respect to the scope or interpretation of any patent or any
claim of any patent; or (iii) seek to establish that Licensee (and its
Affiliates and Designees) do not infringe any patent or to defend against any
claim that Licensee (and its Affiliates and Designees) infringe any patent, in
each of cases (i), (ii), and (iii) including, but not limited to, any Licensed
Patent, Genentech Technology Patent, Excluded Patent, or Encumbered Patent.
Nothing contained in this Agreement shall preclude or otherwise have any effect
on Genentech’s ability, to the extent permitted by governing laws and rules, to
amend its pleadings in the Pending U.S. Litigation at any time to add claims,
counterclaims, allegations, or parties with respect to activities that are not
licensed under Article II. 

    
8.19. Effect of
Agreement on Any Future Litigation. Nothing
contained in this Agreement shall preclude or otherwise have any effect on
Licensee’s ability, to the extent permitted by governing laws and rules, (i) to
commence a new legal or administrative proceeding in any venue at any time
challenging the validity, enforceability, or infringement of any patent (a) to
which a license has not been granted to Licensee under Article II (including,
but not limited to, the Excluded Patents and the Encumbered Patents) or (b) in
connection with activities outside the scope of the licenses granted to Licensee
under Article II; or (ii) to defend against any new legal or administrative
proceeding commenced by Genentech against Licensee in any venue at any time by
challenging the validity, enforceability or infringement of any patent asserted
by Genentech against Licensee in that
proceeding. Nothing contained in this Agreement shall preclude or otherwise have
any effect on Genentech’s ability, to the extent permitted by governing laws and
rules, to commence at any time a new action for infringement of (a) any Licensed
Patent, but only in the United States District Court for the Southern District
of New York, White Plains Division, with respect to activities that are not
licensed under Section 2.01; or (b) any other patent (including, but not limited
to, the Excluded Patents and the Encumbered Patents), in any venue, with respect
to activities outside the scope of the licenses granted to Licensee under
Article II. Nothing contained in this Agreement shall preclude or otherwise have
any effect on Genentech’s maintaining and prosecuting, to the extent permitted
by governing laws and rules, the infringement action it filed in the United
States District Court for the Southern District of New York, captioned
Genentech, Inc. vs. Regeneron Pharmaceuticals,
Inc., Sanofi-Aventis U.S. LLC, et al. (Civil
Action No. 11-CV-09463).

Page 20

     8.20.
Amendment of Pleadings in Pending U.S.
Litigation. Not later than fifteen (15)
business days after the Effective Date, Genentech shall file an unopposed motion
in the form attached hereto as Exhibit C seeking leave to file the Second
Amended Answer and Counterclaims in the form attached hereto as Exhibit D. The
Parties acknowledge and agree, for the avoidance of doubt, that the Second
Amended Answer and Counterclaims is intended to withdraw allegations that are
inconsistent with the license and release granted pursuant to this Agreement. To
the extent that the Second Amended Answer and Counterclaims includes any
allegations that are inconsistent with the license and release granted pursuant
to this Agreement, the terms of this Agreement shall control. Nothing contained
in the Second Amended Answer and Counterclaims shall be used to construe any
term or condition of this Agreement. 

    
8.21. Construction. Both Parties have been
represented and advised by legal counsel in connection with the negotiation,
drafting, and execution of this Agreement, and both Parties, through their
respective counsel, have participated in the drafting of this Agreement and
accordingly that this Agreement shall not be deemed to have been drafted by one
Party or the other and will be construed accordingly. 

    
8.22. Counterparts. This Agreement may be
executed simultaneously in one or more counterparts (including in the form of a
PDF or other electronic document), each of which shall be deemed an original,
but all of which together shall constitute one and the same instrument.

Page 21

     IN WITNESS
WHEREOF, Genentech and Licensee have caused this Agreement to be executed by
their duly authorized representatives. 

			     		
					
	GENENTECH, INC.		REGENERON PHARMACEUTICALS, INC.
				 	
				 	
	By:	   /s/ Leonard Schleifer		By:	   /s/ Frederick C. Kentz III
		 			
		 			
	Title:	   President
    & CEO		Title:	   Sr. Vice President
		 	 		
		 			
	Date:	   December 31, 2011		Date:	   December 31, 2011

Page 22

Exhibit A 

Excluded Patents 
 

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

 

 

 

 

 

 

Page 23

Exhibit B 

Regeneron Announces Settlement of
Patent Litigation with Genentech for U.S. Ophthalmic Sales of EYLEATM (aflibercept)
Injection 

Tarrytown, NY, [date]
-- Regeneron Pharmaceuticals, Inc. (NASDAQ:
REGN) announced today that the Company has entered into a non-exclusive license
and partial settlement agreement (Agreement) with Genentech, Inc. relating to
U.S. ophthalmic sales of EYLEATM (aflibercept) Injection. 

Regeneron received a non-exclusive
license to certain patents relating to VEGF receptor proteins, known as the
Davis-Smyth patents, and other technology patents. The Davis-Smyth patents are
the subject of patent litigation between Regeneron and Genentech now pending in
the United States District Court, Southern District of New York. Patent
litigation is continuing with respect to matters not covered by the Agreement.

Under the terms of the Agreement,
Regeneron will make payments to Genentech based on U.S. sales of EYLEA through
May 7, 2016. Regeneron will pay $60 million upon cumulative U.S. sales of EYLEA
reaching $400 million. Regeneron will also pay royalties of 4.75% on cumulative
U.S sales of EYLEA between $400 million and $3 billion and 5.5% on any
cumulative U.S sales of EYLEA over $3 billion. 

About Regeneron
Pharmaceuticals
Regeneron is a fully
integrated biopharmaceutical company that discovers, invents, develops,
manufactures, and commercializes medicines for the treatment of serious medical
conditions. Regeneron markets two products, ARCALYST® (rilonacept) Injection For
Subcutaneous Use and EYLEATM (aflibercept) Injection. Regeneron also has
completed several Phase 3 studies and is conducting an additional Phase 3
clinical trial for the product candidate ZALTRAP® (aflibercept) Concentrate for
Intravenous Infusion. Additional therapeutic candidates developed from
proprietary Regeneron technologies for creating fully human monoclonal
antibodies are in earlier stage development programs in rheumatoid arthritis and
other inflammatory conditions, pain, cholesterol reduction, allergic and immune
conditions, and cancer. Additional information about Regeneron and recent news
releases are available on the Regeneron web site at www.regeneron.com.

Page 24

Regeneron Forward Looking
Statement
This news release includes forward-looking statements that involve risks
and uncertainties relating to future events and the future performance of
Regeneron, and actual events or results may differ materially from these
forward-looking statements. These statements concern, and these risks and
uncertainties include, among others, the nature, timing, and possible success
and therapeutic applications of EYLEA and Regeneron’s product candidates and
research and clinical programs now underway or planned,
the likelihood and timing of possible regulatory approval and commercial launch
of Regeneron’s late-stage product candidates, determinations by regulatory and
administrative governmental authorities which may delay or restrict Regeneron’s
ability to continue to develop or commercialize EYLEA and other products and
drug candidates, competing drugs that may be superior to EYLEA and Regeneron’s
products and drug candidates, uncertainty of market acceptance of EYLEA and
Regeneron’s products and drug candidates, the possibility of EYLEA sales meeting
or exceeding any of the cumulative U.S. sales targets triggering payments to
Genentech described in this news release, the possibility of EYLEA sales meeting
or exceeding any of the cumulative U.S. sales targets triggering payments to
Genentech described in this news release, unanticipated expenses, the
availability and cost of capital, the costs of developing, producing, and
selling products, the potential for any license or collaboration agreement,
including Regeneron’s agreements with Sanofi and Bayer HealthCare, to be
canceled or terminated without any product success, and risks associated with
third party intellectual property and pending or future litigation relating
thereto. A more complete description of these and other material risks can be
found in Regeneron's filings with the United States Securities and Exchange
Commission, including its Form 10-K for the year ended December 31, 2010 and
Form 10-Q for the quarter ended September 30, 2011. Regeneron does not undertake
any obligation to update publicly any forward-looking statement, whether as a
result of new information, future events, or otherwise, unless required by law.

Your Investor Relations Contact at
Regeneron:
Michael Aberman, M.D. Tel. +1 (914) 345-7799
E-Mail:
michael.aberman@regeneron.com 

Your Media Contact at
Regeneron:
Peter Dworkin, Tel. +1 (914) 345-7640
E-Mail:
peter.dworkin@regeneron.com 

Page 25

Exhibit C 

UNITED STATES DISTRICT
COURT
SOUTHERN DISTRICT OF NEW YORK

	REGENERON
    PHARMACEUTICALS, INC.,	     	
		Plaintiff,		
	v.			
	GENENTECH, INC.,		Civil Action No. 11-CV-01156 (VB)
		Defendant.		ECF Case
	GENENTECH, INC.,		
		Counter-Plaintiff,		
	v.			
	
      REGENERON
      PHARMACEUTICALS, INC.,
		
		Counter-Defendant.		

GENENTECH’S UNOPPOSED MOTION  FOR
LEAVE
TO AMEND ITS COUNTERCLAIMS  

     Genentech,
Inc. (“Genentech”) files this unopposed motion for leave to amend its
counterclaims in response to the Complaint filed by Plaintiff Regeneron
Pharmaceuticals, Inc. (“Regeneron”) to clarify the nature of Genentech’s
allegations against Regeneron. See
Exhibit 1. Regeneron does not oppose this
motion. 

    
Rule 15(a) provides that a Court’s permission to amend a pleading “shall
be freely given when justice so requires.” Fed.
R. Civ. P. 15(a); see also Foman v.
Davis, 371 U.S. 178, 182 (1962) (“[T]his mandate is to be
heeded. . . . [T]he leave sought should, as the rules require, be ‘freely
given.’”). In the Second Circuit, the rule is “to allow a party to amend its
pleadings in the absence of a showing by the nonmovant of prejudice or bad
faith.” Block v. First Blood
Assocs., 988 F.2d 344, 350 (2d Cir. 1993).

Page 26

     There is no
prejudice or bad faith here. Genentech’s motion to amend is timely filed within
the period allowed by this Court’s Scheduling Order. D.I. 33 (providing that the
deadline for amendment of pleadings is May 10, 2012). This case is still in an
early stage of proceedings, and the parties have yet to exchange infringement
contentions and invalidity contentions, which are due in February 2012 and March
2012, respectively. 

    
Accordingly, this Court should grant Genentech leave to amend its
counterclaims. 

Dated: January __, 2012 

	PAUL, WEISS, RIFKIND,
      WHARTON &
	GARRISON
  LLP
	 
	By:  	       /s/ Kenneth A
      Gallo
		Kenneth A. Gallo
		2001 K Street NW
		Washington, DC 20006
		Tel: (202) 223-7300
		Fax: (202) 223-7420
		Email: kgallo@paulweiss.com
		 
		John E. Nathan
		Eric Alan Stone
		1285 Avenue of the Americas
		New York, NY 10019
		Tel: (212) 373-3000
		Fax: (212) 757-3990
		Email: jnathan@paulweiss.com
		Email:
estone@paulweiss.com

Page 27

	     	BAKER BOTTS LLP
		Jennifer Gordon
	 	Scott Familant
		30 Rockefeller Center
		New York, NY 10112
		Tel: (212) 408-2500
		Fax: (212) 408-2501
		Email: jennifer.gordon@bakerbotts.com
		Email: scott.familant@bakerbotts.com
		
	Attorneys for Defendant and
  Counter-Plaintiff
	Genentech, Inc.

Page 28

Exhibit D 

UNITED STATES DISTRICT
COURT
SOUTHERN DISTRICT OF NEW YORK

	REGENERON
    PHARMACEUTICALS, INC.,	     	
		Plaintiff,		Civil
      Action No. 11-CV-01156 (VB)
	v.			ECF
      Case
	GENENTECH, INC.,		Jury
      Demand
		Defendant.		

SECOND AMENDED ANSWER AND COUNTERCLAIM

     Genentech, Inc. (“Genentech”) files this second amended answer and
counterclaim in response to the Complaint filed by Plaintiff Regeneron
Pharmaceuticals, Inc. (“Regeneron”). 

“NATURE OF THIS ACTION” 

    
1. Genentech admits that Regeneron purports to have brought this action
under 28 U.S.C. §§ 1331, 2201, and 2202, and 35 U.S.C. § 100 et seq. In all other
respects, Genentech denies the allegations in Paragraph 1 of the Complaint.

    
2. Genentech admits that Regeneron purports to seek a declaration in this
action relating to U.S. Patent Nos. 5,952,199; 6,100,071; 6,383,486; 6,897,294;
and 7,771,721. In all other respects, Genentech denies the allegations in
Paragraph 2 of the Complaint. 

“THE PARTIES” 

    
3. Genentech admits that Regeneron purports to be a corporation organized and existing under the laws of the State of New York with its principal place of business at 777 Old Saw Mill River Road, Tarrytown, New York. Genentech lacks knowledge and information sufficient to form a belief as to the truthfulness of the remaining allegations in Paragraph 3 of the Complaint and on that basis denies them. 

Page 29

     4. Genentech
denies that Regeneron scientists discovered a novel pharmaceutical referred to
in the Complaint as VEGF Trap. Genentech admits that the VEGF Trap is in
clinical development for ophthalmologic and oncology indications. Genentech
lacks knowledge and information sufficient to form a belief as to the
truthfulness of the remaining allegations in Paragraph 4 of the Complaint and on
that basis denies them. 

    
5. Genentech admits the allegations in Paragraph 5 of the Complaint.

    
6. Genentech admits that it has been and currently is licensed to do
business in the State of New York, and that it has and currently does business
in the State of New York. Genentech admits that it has sold and continues to
offer for sale and sells products in the State of New York and within this
judicial district. Genentech lacks knowledge and information sufficient to form
a belief as to the truthfulness of the remaining allegations in Paragraph 6 of
the Complaint and on that basis denies them. 

“JURISDICTION AND VENUE” 

    
7. This paragraph states a legal conclusion to which no response is
required. To the extent a response is required,
Genentech admits the allegations in Paragraph 7 of the Complaint. 

Page 30

    
8. This paragraph states a legal conclusion to which no response is
required. To the extent a response is required,
Genentech admits that venue is proper under 28 U.S.C. §§ 1391(b) & (c)
because Genentech admits that this Court had personal jurisdiction over
Genentech for the purposes of this action at the time the action was commenced.

“INTRA-DISTRICT ASSIGNMENT” 

     9. Genentech
admits that Regeneron resides in Westchester County. Genentech denies the remaining allegations in Paragraph 9 of the
Complaint. 

Page 31

“BACKGROUND” 

“DEVELOPMENT OF THE VEGF TRAP” 

     10. Genentech
admits that Regeneron purports to have filed in 2007 a Phase III clinical trial
for the use of VEGF Trap in the treatment of neovascular wet age-related macular
degeneration, that Phase III studies may be used to develop data to support a
Biologics License Application for the United States Food and Drug
Administration, and that a Biologics License Application is necessary to secure
approval to market a drug in commerce in the United States. Genentech lacks
knowledge and information sufficient to form a belief as to the truthfulness of
the remaining allegations in Paragraph 10 of the Complaint and on that basis
denies them. 

    
11. Genentech admits that on November 22, 2010, Regeneron issued a press
release regarding the results of purported Phase III studies for VEGF Trap
relating to wet age-related macular degeneration. 

    
12. Genentech lacks knowledge and information sufficient to form a belief
as to the truthfulness of the allegations in Paragraph 12 of the Complaint and
on that basis denies them. 

    
13. Genentech lacks knowledge and information sufficient to form a belief
as to the truthfulness of the allegations in Paragraph 13 of the Complaint and
on that basis denies them. 

    
14. Genentech lacks knowledge and information sufficient to form a belief
as to the truthfulness of the allegations in
Paragraph 14 of the Complaint and on that basis denies them. 

Page 32

     15.
Genentech lacks knowledge and information sufficient to form a belief as to the
truthfulness of the allegations in Paragraph 15 of the Complaint and on that
basis denies them.

“GENENTECH’S DAVIS-SMYTH PATENTS”

     16.
Genentech admits the allegations in Paragraph 16 of the Complaint. 

     17. Genentech admits that
Regeneron’s publicly-available filings with the United States Securities and Exchange Commission contain the statements
reflected in Paragraph 17 of the
Complaint.

     18. Genentech admits that it
maintains that VEGF Trap infringes one or more of the Davis-Smyth patents.
Genentech also admits that: after Regeneron filed a declaratory judgment
complaint against Genentech on November 19, 2010, relating to non-infringement
of the Davis-Smyth patents, Regeneron, by letter dated December 22, 2010, asked
Genentech for a covenant not to sue regarding those patents; and Genentech
subsequently responded that because of Regeneron’s complaint, any discussions
must involve the parties’ attorneys, and invited Regeneron to contact
Genentech’s general counsel for further discussion. Genentech also admits that
Arthur Levinson referred to Regeneron’s discussion in Regeneron’s own SEC
filings of the Davis-Smyth patents when responding to questions by investors.
Genentech denies the remaining allegations of Paragraph 18 of the
Complaint.

     19. Genentech denies the allegations
in Paragraph 19 as of the date this Complaint was
filed.

Page 33

“CLAIM FOR RELIEF”

“(Declaratory Judgment of
Non-Infringement and/or Invalidity of the Genentech Davis-Smyth
Patents)” 

     20.
Genentech incorporates by reference its answers to the allegations of
paragraphs 1 through 19.

     21. Genentech admits that Regeneron
seeks a judicial declaration that no acts by any entity related to the VEGF Trap
do or will directly infringe or infringe under the doctrine of equivalents, or
contribute to or induce the infringement of, any valid claim of U.S. Patent Nos.
5,952,199, 6,100,071, 6,383,486, 6,897,294, and 7,771,721, but denies that
Regeneron is entitled to such a judicial declaration. Genentech denies the
remaining allegations of Paragraph 21 of the Complaint.

“PRAYER FOR RELIEF”

     Genentech denies that Regeneron is
entitled to the relief requested or any other relief.

AFFIRMATIVE DEFENSES

FIRST AFFIRMATIVE DEFENSE
(Failure
to State a Claim)

     22. Regeneron’s claims are barred,
in whole or in part, as Regeneron has not stated
a claim upon which relief can be granted.

RIGHT TO ASSERT ADDITIONAL
DEFENSES

     23. Genentech reserves the right to
assert and pursue additional defenses.

DEMAND FOR A JURY TRIAL ON ALL
DEFENSES

     24. Genentech demands trial by jury
on all defenses and issues triable by jury.

Page 34

SECOND AMENDED COUNTERCLAIM

     For its
counterclaim against Regeneron, Counter-Plaintiff Genentech alleges as follows:

PARTIES 

     25. Counter-Plaintiff Genentech,
Inc. is a corporation organized under the laws of Delaware, with its principal
place of business in South San Francisco, California. Genentech is registered to
do business and is doing business in the State of New York.

     26. Counter-Defendant Regeneron,
Inc. is a corporation organized under the laws of the State of New York and
lists its principal place of business as 777 Old Saw Mill River Road, Tarrytown,
New York.

JURISDICTION AND VENUE

     27. This action arises under the
patent laws of the United States of America, 35 U.S.C. § 1 et seq., and jurisdiction
is therefore properly based on Title 35 of the United States Code, § 271, and
Title 28 of the United States Code, § 1338(a).

     28. This Court has personal
jurisdiction over Regeneron by virtue of, inter alia, its residing in the State
of New York.

     29. Venue is proper in this District pursuant to Title 28, United
States Code, §§ 1391(c) and 1400(b).

THE DAVIS-SMYTH
PATENTS

     30. U.S. Patent No. 5,952,199,
titled Chimeric Receptors as Inhibitors of Vascular Endothelial Growth Factor Activity, And Processes for Their
Production, was issued by the U.S. Patent and Trademark Office on September 14,
1999. The inventors on the patent are Terri Lynn Davis-Smyth, Helen Hsifei Chen,
Leonard Presta, and Napoleone Ferrara, all of whom are or were Genentech
employees.

Page 35

     31. U.S.
Patent No. 6,100,071, titled Receptors as Novel Inhibitors of Vascular
Endothelial Growth Factor Activity And Processes for Their Production, was
issued by the U.S. Patent and Trademark Office on August 8, 2000. The inventors
on the patent are Terri Lynn Davis-Smyth, Helen Hsifei Chen, Leonard Presta, and
Napoleone Ferrara, all of whom are or were Genentech employees.

     32. U.S. Patent No. 6,383,486,
titled Inhibitors of Vascular Endothelial Growth Factor Activity, Their Uses And
Processes for Their Production, was issued by the U.S. Patent and Trademark
Office on May 7, 2002. The inventors on the patent are Terri Lynn Davis-Smyth,
Helen Hsifei Chen, Leonard Presta, and Napoleone Ferrara, all of whom are or
were Genentech employees.

     33. U.S. Patent No. 6,897,294,
titled Inhibitors of Vascular Endothelial Growth Factor Activity, Their Uses And
Processes for Their Production, was issued by the U.S. Patent and Trademark
Office on May 24, 2005. The inventors on the patent are Terri Lynn Davis-Smyth,
Helen Hsifei Chen, Leonard Presta, and Napoleone Ferrara, all of whom are or
were Genentech employees.

     34. U.S. Patent No. 7,771,721,
titled Methods for Using Chimeric Vascular Endothelial Growth Factor Receptor Proteins, was issued by the U.S.
Patent and Trademark Office on August 10, 2010.
The inventors on the patent are Terri Lynn Davis-Smyth, Helen Hsifei Chen,
Leonard Presta, and Napoleone Ferrara, all of whom are or were Genentech employees.

Page 36

     35. The
5,952,199, 6,100,071, 6,383,486, 6,897,294, and 7,771,721 patents will be
referred to herein as the “Davis-Smyth patents.”

     36. Genentech owns all rights,
title, and interest in and to the Davis-Smyth patents.

     37. On information and belief,
Regeneron has known about the ’199, ’071 and/or ’486 patents at least since
March 3, 2005 and has known about the ’294 and ’721 patents at least since they
issued on May 24, 2005 and August 10, 2010, respectively.

VEGF Trap-Eye

     38. On information and belief,
Regeneron’s VEGF Trap-Eye product is a protein, the amino acid sequence of which
is in part derived from the human VEGF Receptor 1 (“VEGFR1” or “FLT-1”), the
human VEGF Receptor 2 (“VEGFR2” or “KDR”), and human immunoglobulin
G1.

     39. On information and belief,
Regeneron’s VEGF Trap-Eye product was and is designed to bind VEGF and, in turn,
treat disease states characterized by undesirable angiogenesis and/or
neovascularization.

     40. Regeneron has filed a BLA with
the FDA, seeking approval to market VEGF Trap-Eye
in the U.S. for use in treating wet age-related macular degeneration.

     41. On information and belief,
Regeneron: a) has made, used, offered for sale, and/or sold; b) is making, using, offering for sale, and/or selling;
and/or c) is preparing to make, use, offer for sale, and/or sell VEGF Trap-Eye
in the United States, including within this judicial district, for purposes of export, use, and/or sale in other
countries.

Page
37

     42. On
information and belief, Regeneron has taken concrete and substantial steps to
prepare for commercial manufacturing, marketing, and selling of VEGF Trap-Eye
throughout the United States, including within this judicial district, for
purposes of export, use, and/or sale of VEGF Trap-Eye in other
countries.

     43. On information and belief,
Regeneron is manufacturing VEGF Trap-Eye in the
United States for purposes of export, use, and/or sale in other
countries.

COUNT I 
(Infringement of the ’071 patent)

     44. Genentech incorporates the
allegations in Paragraphs 25-43 as if fully set forth herein.

     45. By virtue of Regeneron engaging
in the following past, present and/or prospective activities:

          a)
having made, used, offered for sale, and/or sold VEGF Trap-Eye in the United
States for export to; and/or use, offer for sale, and/or sale in other countries
(except where that exportation, use, offer for sale, and/or sale is solely for
purposes of converting bulk and/or other unfinished VEGF Trap-Eye into a filled
and/or finished form for re-importation into the United States for use, offer
for sale, and/or sale in the United States for prevention or treatment of eye
diseases and eye disorders in a human in the United States);

Page
38

          b)
making, using, offering for sale, and/or selling VEGF Trap-Eye in the United
States for export to; and/or use, offer for sale, and/or sale in other countries
(except where that exportation, use, offer for sale, and/or sale is solely for
purposes of converting bulk and/or other unfinished VEGF Trap-Eye into a filled
and/or finished form for re-importation into the United States for use, offer
for sale, and/or sale in the United States for prevention or treatment of eye
diseases and eye disorders in a human in the United States);

          c)
preparing to make, use, offer for sale, and/or sell VEGF Trap-Eye in the United
States for export to; and/or use, offer for sale, and/or sale in other countries
(except where that exportation, use, offer for sale, and/or sale is solely for
purposes of converting bulk and/or other unfinished VEGF Trap-Eye into a filled
and/or finished form for re-importation into the United States for use, offer
for sale, and/or sale in the United States for prevention or treatment of eye
diseases and eye disorders in a human in the United States), Regeneron has
infringed, is infringing and/or will infringe—directly, and/or by contributing
to others’ infringement of and/or by inducing others to infringe—one or more
claims of the ’071 patent, either literally and/or under the doctrine of
equivalents.

     46. Regeneron’s past, ongoing,
and/or future infringement has damaged, is damaging, and/or will damage
Genentech, which is entitled to recover from Regeneron the damages resulting
from Regeneron’s wrongful acts in an amount to be determined at trial, but no
less than a reasonable royalty.

     47. Regeneron’s infringement has
been, is, and/or will be willful, justifying an
award to Genentech of increased damages under 35 U.S.C. § 284 and attorney’s
fees and costs incurred in prosecuting this action under 35 U.S.C. §
285.

Page
39

     48.
Regeneron’s infringing activities have caused, are causing, and/or will cause
Genentech to suffer irreparable harm for which there is no adequate remedy at
law. This harm will continue unless and until Counter-Defendant’s infringement
is enjoined by this Court.

COUNT II
(Infringement of the ’486 patent)

     49. Genentech incorporates the
allegations in Paragraphs 25-48 as if fully set forth herein.

     50. By virtue of Regeneron engaging
in the following past, present and/or prospective activities:

          a)
having made, used, offered for sale, and/or sold VEGF Trap-Eye in the United
States for export to; and/or use, offer for sale, and/or sale in other countries
(except where that exportation, use, offer for sale, and/or sale is solely for
purposes of converting bulk and/or other unfinished VEGF Trap-Eye into a filled
and/or finished form for re-importation into the United States for use, offer
for sale, and/or sale in the United States for prevention or treatment of eye
diseases and eye disorders in a human in the United States);

          b)
making, using, offering for sale, and/or selling VEGF Trap-Eye in the United
States for export to; and/or use, offer for sale, and/or sale in other countries
(except where that exportation, use, offer for sale, and/or sale is solely for
purposes of converting bulk and/or other unfinished VEGF Trap-Eye into a filled
and/or finished form for re-importation into the United States for use, offer
for sale, and/or sale in the United States for prevention or treatment of eye
diseases and eye disorders in a human in the United States);

Page
40

          c)
preparing to make, use, offer for sale, and/or sell VEGF Trap-Eye in the United
States for export to; and/or use, offer for sale, and/or sale in other countries
(except where that exportation, use, offer for sale, and/or sale is solely for
purposes of converting bulk and/or other unfinished VEGF Trap-Eye into a filled
and/or finished form for re-importation into the United States for use, offer
for sale, and/or sale in the United States for prevention or treatment of eye
diseases and eye disorders in a human in the United States), Regeneron has
infringed, is infringing and/or will infringe—directly, and/or by contributing
to others’ infringement of and/or by inducing others to infringe—one or more
claims of the ’486 patent, either literally and/or under the doctrine of
equivalents. 

     51.
Regeneron’s past, ongoing, and/or future infringement has damaged, is damaging,
and/or will damage Genentech, which is entitled to recover from Regeneron the
damages resulting from Regeneron’s wrongful acts in an amount to be determined
at trial, but no less than a reasonable royalty.

     52. Regeneron’s infringement has
been, is, and/or will be willful, justifying an award to Genentech of increased
damages under 35 U.S.C. § 284 and attorney’s fees and costs incurred in
prosecuting this action under 35 U.S.C. § 285.

     53. Regeneron’s infringing
activities have caused, are causing, and/or will cause Genentech to suffer irreparable harm for which there is no adequate
remedy at law. This harm will continue unless and
until Counter-Defendant’s infringement is enjoined by this Court.

Page
41

COUNT III
(Infringement of the ’294 patent) 

     54.
Genentech incorporates the allegations in Paragraphs 25-53 as if fully set
forth herein.

     55. By virtue of Regeneron engaging
in the following past, present and/or prospective activities:

          a)
having made, used, offered for sale, and/or sold VEGF Trap-Eye in the United
States for export to; and/or use, offer for sale, and/or sale in other countries
(except where that exportation, use, offer for sale, and/or sale is solely for
purposes of converting bulk and/or other unfinished VEGF Trap-Eye into a filled
and/or finished form for re-importation into the United States for use, offer
for sale, and/or sale in the United States for prevention or treatment of eye
diseases and eye disorders in a human in the United States);

          b)
making, using, offering for sale, and/or selling VEGF Trap-Eye in the United
States for export to; and/or use, offer for sale, and/or sale in other countries
(except where that exportation, use, offer for sale, and/or sale is solely for
purposes of converting bulk and/or other unfinished VEGF Trap-Eye into a filled
and/or finished form for re-importation into the United States for use, offer
for sale, and/or sale in the United States for prevention or treatment of eye
diseases and eye disorders in a human in the United States);

          c)
preparing to make, use, offer for sale, and/or sell VEGF Trap-Eye in the United
States for export to; and/or use, offer for sale, and/or sale in other countries
(except where that exportation, use, offer for sale, and/or sale is solely for
purposes of converting bulk and/or other unfinished VEGF Trap-Eye into a filled
and/or finished form for re-importation into the United States for use, offer
for sale, and/or sale in the United States for prevention or treatment of eye
diseases and eye disorders in a human in the United States), Regeneron has
infringed, is infringing and/or will infringe—directly, and/or by contributing
to others’ infringement of and/or by inducing others to infringe—one or more
claims of the ’294 patent, either literally and/or under the doctrine of
equivalents.

Page
42

     56.
Regeneron’s past, ongoing, and/or future infringement has damaged, is damaging,
and/or will damage Genentech, which is entitled to recover from Regeneron the
damages resulting from Regeneron’s wrongful acts in an amount to be determined
at trial, but no less than a reasonable royalty.

     57. Regeneron’s infringement has
been, is, and/or will be willful, justifying an award to Genentech of increased
damages under 35 U.S.C. § 284 and attorney’s fees and costs incurred in
prosecuting this action under 35 U.S.C. § 285. 

     58. Regeneron’s infringing
activities have caused, are causing, and/or will cause Genentech to suffer
irreparable harm for which there is no adequate remedy at law. This harm will
continue unless and until Counter-Defendant’s infringement is enjoined by this
Court.

COUNT IV
(Infringement of the ’721 patent) 

     59. Genentech incorporates the
allegations in Paragraphs 25-58 as if fully set forth herein.

     60. By virtue of Regeneron engaging
in the following past, present and/or prospective activities:

Page
43

          a) having made, used, offered for sale, and/or sold VEGF
Trap-Eye in the United States for export to; and/or use, offer for sale, and/or
sale in other countries (except where that exportation, use, offer for sale,
and/or sale is solely for purposes of converting bulk and/or other unfinished
VEGF Trap-Eye into a filled and/or finished form for re-importation into the
United States for use, offer for sale, and/or sale in the United States for
prevention or treatment of eye diseases and eye disorders in a human in the
United States);

          b)
making, using, offering for sale, and/or selling VEGF Trap-Eye in the United
States for export to; and/or use, offer for sale, and/or sale in other countries
(except where that exportation, use, offer for sale, and/or sale is solely for
purposes of converting bulk and/or other unfinished VEGF Trap-Eye into a filled
and/or finished form for re-importation into the United States for use, offer
for sale, and/or sale in the United States for prevention or treatment of eye
diseases and eye disorders in a human in the United States);

          c)
preparing to make, use, offer for sale, and/or sell VEGF Trap-Eye in the United
States for export to; and/or use, offer for sale, and/or sale in other countries
(except where that exportation, use, offer for sale, and/or sale is solely for
purposes of converting bulk and/or other unfinished VEGF Trap-Eye into a filled
and/or finished form for re-importation into the United States for use, offer
for sale, and/or sale in the United States for prevention or treatment of eye
diseases and eye disorders in a human in the United States), Regeneron has
infringed, is infringing and/or will infringe—directly, and/or by contributing
to others’ infringement of and/or by inducing others to infringe—one or more
claims of the ’721 patent, either literally and/or under the doctrine of
equivalents.

Page
44

     61.
Regeneron’s past, ongoing, and/or future infringement has damaged, is damaging,
and/or will damage Genentech, which is entitled to recover from Regeneron the
damages resulting from Regeneron’s wrongful acts in an amount to be determined
at trial, but no less than a reasonable royalty.

     62. Regeneron’s infringement has
been, is, and/or will be willful, justifying an award to Genentech of increased
damages under 35 U.S.C. § 284 and attorney’s fees and costs incurred in
prosecuting this action under 35 U.S.C. § 285.

     63. Regeneron’s infringing
activities have caused, are causing, and/or will cause Genentech to suffer
irreparable harm for which there is no adequate remedy at law. This harm will
continue unless and until Counter-Defendant’s infringement is enjoined by this
Court.

Page
45

PRAYER FOR RELIEF 

     WHEREFORE, Genentech requests that
judgment be entered in its favor against Regeneron:

     1. Finding that Regeneron by virtue
of the activities alleged above in each Count: a) has directly infringed and/or
will directly infringe; b) has actively induced and/or will actively induce
others to infringe, and/or c) has engaged and/or will engage in acts that
contribute to others infringing one or more claims of the ’071, ’486, ’294, and
’721 patents;

     2. Finding that Regeneron’s
infringement of the ’071, ’486, ’294, and ’721 patents, by virtue of the
activities alleged above in each Count, was and/or is willful and
deliberate;

     3. If appropriate, taking into
account the interests of patients, enjoining Regeneron and its officers, agents,
servants, employees, parents, subsidiaries, affiliates, successors, assignees,
licensees, and attorneys, and all persons acting in concert or participation
with them, from infringing the ’071, ’486, ’294, and ’721 patents directly, by
contributory infringement, and/or by actively inducing infringement, via the
activities alleged above in each Count;

     4. Ordering Regeneron to account for
and pay to Genentech any and all damages caused by the infringement of one or
more claims of the ’071, ’486, ’294, and ’721 patents, via the activities
alleged above in each Count;

     5. Ordering Regeneron to pay
increased damages, up to treble damages to Genentech because of the willful
nature of Regeneron’s infringement of one or more claims of the ’071, ’486,
’294, and ’721 patents, via the activities alleged above in each
Count;

     6. Ordering that this case be
declared an exceptional case under 35 U.S.C. § 285 and that Genentech be awarded
its attorney’s fees incurred in this action;

Page
46

     7. Ordering
an award of Genentech’s costs and expenses for this action, pre- and
post-judgment interest on any money damages award, and any other charges to the
maximum extent permitted;

     8. Ordering such future relief as
the Court deems just and proper under the circumstances.

Page
47

JURY TRIAL DEMAND 

     Genentech
demands a trial by jury of all issues so triable. 

	Dated: January ___, 2012			
			PAUL, WEISS, RIFKIND,
      WHARTON &
			GARRISON
  LLP
	   
		     	By: 
      	/s/ Kenneth A
      Gallo	 
				Kenneth A. Gallo
				2001 K Street NW
				Washington, DC 20006
				Tel: (202) 223-7300
				Fax: (202) 223-7420
				Email:
kgallo@paulweiss.com
	   
				John E. Nathan
				Eric Alan Stone
				1285 Avenue of the
Americas
				New York, NY 10019
				Tel: (212) 373-3000
				Fax: (212) 757-3990
				Email:
  jnathan@paulweiss.com
				Email:
estone@paulweiss.com
	  
				BAKER BOTTS
    LLP
				Jennifer Gordon
				Scott Familant
				30 Rockefeller Center
				New York, NY 10112
				Tel: (212) 408-2500
				Fax: (212) 408-2501
				Email:
      jennifer.gordon@bakerbotts.com
				Email:
      scott.familant@bakerbotts.com
	   
			Attorneys for Defendant
      and Counter-Plaintiff
			Genentech,
      Inc.

Page 48

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00199-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00199-of-00352.parquet"}]]