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Exhibit 10.11  

        ***Text Omitted and Filed Separately

with the Securities and Exchange Commission.

Confidential Treatment Requested

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

200.83 and 230.406.  

  
 

    Exclusive License and Bailment Agreement    
    
    between    
    
    The Regents of the University of California    
    
    and    
    
    Ambryx Inc.    
    
    for    
    
    "Nucleic
Acids Encoding Proteins Used in Assays for
  Identifying Taste Modulators"    
    
    UC Case Nos. 1998-122,1998-306,1999-0151
  1999-029,11999-168, 1999-203, 1999-204, and 2000-045    
    

Table of Contents  

	Article No.
 
	 	Title
	 	Page

	Recitals	 	1
	1.	 	Definitions	 	2
	2.	 	Grant	 	6
	3.	 	Issue Fee	 	8
	4.	 	Royalties	 	9
	5.	 	Due Diligence	 	11
	6.	 	Progress and Royalty Reports	 	12
	7.	 	Books and Records	 	13
	8.	 	Life of the Agreement	 	13
	9.	 	Termination by the Regents	 	13
	10.	 	Termination by the Licensee	 	14
	11.	 	Disposition of Products and Biological Materials on Hand Upon Termination	 	14
	12.	 	Supply of the Biological Material	 	14
	13.	 	Maintenance of the Biological Material	 	14
	14.	 	Use of Names and Trademarks	 	15
	15.	 	Limited Warranty	 	15
	16.	 	Patent Prosecution and Maintenance	 	16
	17.	 	Patent Marking	 	17
	18.	 	Patent Infringement	 	17
	19.	 	Indemnification	 	18
	20.	 	Notices	 	19
	21.	 	Assignability	 	19
	22.	 	Late Payments	 	19
	23.	 	Waiver	 	20
	24.	 	Failure to Perform	 	20
	25.	 	Governing Laws	 	20
	26.	 	Government Approval or Registration	 	20
	27.	 	Export Control Laws	 	20
	28.	 	Force Majeure	 	20
	29.	 	Confidentiality	 	20
	30.	 	Miscellaneous	 	21
	APPENDIX A—PAGE 1A	 	23
	APPENDIX A—PAGE 2A	 	24
	APPENDIX A—PAGE 3A	 	25
	APPENDIX B—PAGE 1B	 	26
	APPENDIX C—PAGE 1C	 	28
	Exhibit A	 	 

   
UC Case Nos. 1998-122, 1998-306, 1999-015, 1999-029, 1999-168, 1999-203, 1999-204, and 2000-045. 

Print
date: March 10, 2000 

Exclusive
License and Bailment Agreement

for

Nucleic Acids Encoding Proteins Used in Assays for Identifying Taste Modulators 

        This
license agreement (Agreement) is effective this 10th day of March, 2000
by and between The Regents of the University of California (The Regents), a California corporation, having its statewide administrative offices at 1111 Franklin Street, 12th floor,
Oakland, CA 94607-5200, and Ambryx Inc. (Licensee), a Delaware corporation, having a principal place of business at 11099 North Torrey Pines Road Suite 160,
La Jolla, CA 92037, herein referred to collectively as the parties (Parties). 

Recitals

        Whereas,
certain inventions generally characterized as "Nucleic Acids Encoding Proteins Used In Assays for Identifying Taste Modulators," that may be useful for detecting molecules or
compounds that effect taste (Invention), were made at the University of California, San Diego by Drs. Charles S. Zuker, Juergen Lindemeier, and John E. Adler (Principal Investigators),
and at the National Institutes of Health (NIH) by Drs. Mark Hoon and Nick Ryba and are claimed in Patent Rights defined below; 

        Whereas,
the Licensee and The Regents entered into a Secrecy Agreement (Secrecy Agreement), having U.C. Agreement Control No 1999-20-0167, effective
October 1, 1998, for the purpose of evaluating the Invention; 

        Whereas,
the Licensee and The Regents entered into a letter agreement (Letter Agreement), having U.C. Agreement Control No. 1999-30-0464, effective
April 9, 1999, for the
purpose of entering into good-faith negotiations for a license to the Invention in accordance with the terms of the Letter Agreement; 

        Whereas,
because the Invention was developed under funding provided in part by NIH and in part by the Howard Hughes Medical Institute (HHMI), this Agreement, and any licenses covering
such Invention, are subject to overriding obligations to the federal government and HHMI; 

        Whereas,
under 35 U.S.C. §§ 200-212, The Regents may elect to retain title to any invention made by it under U.S. government funding; 

        Whereas,
if The Regents elects to retain title to such an invention, then The Regents is required by law to grant to the United States Government a nontransferable, paid up,
nonexclusive, irrevocable license to use the invention by or on behalf of the United States Government throughout the world; 

        Whereas,
in accordance with 35 U.S.C. §§ 200-212,'The Regents elected to retain title to the Invention and granted the required licenses to the
United States Government on the following dates: November 13, 1998, (UC Case Nos. 1998-122, 1998-306, 1999-015 and 1999-029);
February 5, 1999, (UC Case No. 1999-168); July 7, 1999, (UC Case No. 1999-203); September 13, 1999, (UC Case No. 1999-204)
and December 28, 1999 (UC Case No. 2000-045); 

        Whereas,
patent applications claiming the Invention have been filed by the Principal Investigators who, in accordance with their employment agreements, have assigned their rights in the
patent applications to The Regents and HHMI; 

        Whereas,
The Regents has acquired the right to grant this license from HHMI under the terms of the interinstitutional agreement (HHMI Interinstitutional Agreement), having UC Control
No. 86-18-0017, which is incorporated herein by reference; 

1

 

        Whereas,
The Regents is required under the terms of the HHMI Interinstitutional Agreement to grant to the HHMI a paid-up, non-exclusive, irrevocable license to
use the Invention for non-commercial purposes, without any right to sublicense others; 

        Whereas,
Mark Hoon and Nick Ryba are employed at NIH, and in accordance with their patent agreement with NIH, have assigned to NIH their interest in any patent rights covering inventions
made during the course of their employment with NIH; 

        Whereas,
under the terms of an interinstitutional agreement (NIH Interinstitutional Agreement), having UC Control
No.                        , between NIH and The Regents, The Regents is granted
the exclusive right to negotiate, execute, and administer on behalf of both parties any resulting license agreements to patent applications and patents jointly owned by The Regents and NIH and
contained in Patent Rights I, and Patent Rights II appended hereto as Exhibit "A" and incorporated herein; 

        Whereas,
due to the Parties' inability to appropriately value the Biological Products and Covered Products with respect to the value of any product identified therewith, the Parties
agree that for their convenience, a royalty should be paid to The Regents on Identified Products and Service Products; 

        Whereas,
the Licensee is a "small entity" as defined in 37 CFR §1.9 and a "small-business concern" defined in 15 U.S.C. §632; 

        Whereas,
both Parties recognize that the royalties due under this Agreement will be paid on pending patent applications and issued patents; 

        Whereas
certain Biological Materials, defined below, relating to the Invention were made during the course of research by the Principal Investigator; 

        Whereas,
it is the intent of the Parties to this Agreement to create a bailment, among other things, for the Biological Materials defined below; 

        Whereas,
Licensee has requested rights to practice the Invention and use the Biological Materials in order to develop and commercialize products; 

        Whereas,
The Regents has responded to Licensee's request by granting the following rights to the Licensee so that the products and other benefits derived from the Invention can be
enjoyed by the general public. 

The
Parties agree as follows: 

1.     Definitions  

        As used in this Agreement, the following terms will have the meaning set forth below: 

        1.1    "Property Rights" means all the personal proprietary rights of The Regents covering the tangible personal property in the
Biological Materials; 

        1.2    "Biological material" means the following biological materials using nomenclature of the Principal Investigator: 

[***]

        1.3    "Biological Product" means: (a) any product containing a biological substance (e.g., nucleic acids, amino acids,
carbohydrates, or lipids) that is comprised of or derived from the Biological Material, including, but not limited to, the following: a taste receptor, plasmid, CDNA clone, gene, promoter, protein,
peptide, antibody, glycoprotein, hormone, or fragments and any sequences thereof, or (b) any product produced or encoded by the Biological Materials; or (c) any product substantially
similar or identical to a compound in (a) or (b) that is produced by chemical synthesis or by any other 

2

 

method
where such product could not have been produced but for the use of the Biological Materials. Biological Products may either be a Covered Product or Non-Patent Product. 

        1.4    "Patent Rights I" means all U.S. patents and patent applications and foreign patents and patent applications
assigned to The Regents, and in the case of foreign patents and patent applications, those existing as of the effective date of this Agreement and those requested under Article 16.3 herein,
including any reissues, extensions, substitutions, continuations, divisions, and continuations-in-part applications (only to the extent, however, that claims in the
continuations-in-part applications are supported in the specification of the parent patent application) based on any subject matter claimed in the following: 

        (a)   U.S.
Patent Application Serial No. [***], entitled  [***]; 

        (b)   U.S.
Patent Application Serial No. [***], entitled  [***]; and 

        (c)   any
U.S. Patent Application claiming a future invention relating to the subject matter of the  [***]. 

        1.5    "Patent Rights II" means all U.S. patents and patent applications and foreign patents and potent applications
assigned to The Regents, and in the case of foreign patents and patent applications, those existing as of the effective date of this Agreement and those requested under Article 16.3 herein,
including any reissues, extensions, substitutions, continuations, divisions, and continuations-in-part applications (only to the extent, however, that claims in the
continuations-in-part applications are supported in the specification of the parent patent application) based on any subject matter claimed in the following: 

        (a)   U.S.
Provisional Patent Application Serial No. [***], entitled  [***], which has been abandoned; 

        (b)   U.S.
Patent Application Serial No. [***], entitled  [***]; 

        (c)   Foreign
PCT Application Serial No. [***], entitled  [***]; 

        (d)   U.S.
Provisional Patent Application Serial No. [***], entitled  [***], which has been abandoned; 

        (e)   U.S.
Provisional Patent Application Serial No. [***], entitled  [***], which has been abandoned; 

        (f)    U.S.
Patent Application Serial No. [***], entitled  [***]; 

        (g)   Foreign
PCT Application Serial No. [***], entitled  [***]; and 

        (h)   any
U.S. patent applications claiming a future invention relating to the subject matter of the  [***]. 

        1.6    "Patent Rights III" means all U.S. patents and patent applications and foreign patents and patent applications
assigned to The Regents, and in the case of foreign patents and patent applications, those existing as of the effective date of this Agreement and those requested under Article 16.3 herein,
including any reissues, extensions, substitutions, continuations, divisions, and continuations-in-part applications (only to the extent, however, that claims in the
continuations-in-part applications are supported in the specification of the parent patent application) based on any subject matter claimed in the following: 

        (a)   U.S.
Provisional Patent Application Serial No. [***], entitled  [***], which has been abandoned; 

        (b)   U.S.
Patent Application Serial No. [***] entitled  [***]; 

3

 

        (c)   Foreign
PCT Application Serial No. [***], entitled  [***]; 

        (d)   U.S.
Provisional Patent Application Serial No. [***], entitled  [***], which has been abandoned; 

        (e)   U.S.
Patent Application Serial No. [***] entitled  [***]; 

        (f)    Foreign
PCT Application Serial No. [***], entitled  [***]; 

        (g)   U.S.
Provisional Patent Application Serial No. [***], entitled  [***], which has been abandoned; 

        (h)   U.S.
Patent Application Serial No. [***], entitled  [***]; 

        (i)    U.S.
Provisional Patent Application Serial No. [***], entitled  [***], which has been abandoned; 

        (j)    U.S.
Patent Application Serial No. [***], entitled  [***]; 

        (k)   U.S.
Provisional Patent Application Serial No. [***], entitled  [***], which has been abandoned; 

        (l)    U.S.
Patent Application Serial No. [***], entitled  [***]; and 

        (m)  any
U.S. Patent Application claiming future inventions relating to the subject matter of the  [***]. 

        1.7    "Patent Rights" means Patent Rights I, Patent Rights II, and Patent Rights III. 

        1.8    "Patent Method" means any process or method claimed in Patent Rights, the use of which, in a particular country, would
infringe, but for the license granted to the Licensee, an unexpired claim of a patent or pending claim of a patent application were said claim issued in a patent under Patent Rights in that country. 

        1.9    "Covered Products" means: 

         (a)    any kit, composition of matter, material, product, or Biological Product; 

        (b)    any kit, composition of matter, material, product, or Biological Product to be used in a manner requiring the performance of the
Patent Method;
or 

         (c)    any kit, composition of matter, material, product, or Biological Product produced by the Patent Method; 

to
the extent that the manufacture, use, or sale of such kit, composition of matter, material, product, or Biological Product, in a particular country, would be covered by or infringe, but for the
license granted to Licensee, an unexpired claim of a patent or pending claim of a patent application were said claim issued in a patent under Patent Rights in that country. 

        1.10    "Services" means a service provided by the Licensee, its Affiliates, Joint Ventures, or sublicensees to a third party
when such service requires the making or using of the Biological Product, Covered Product or the practicing of the Patent Rights. 

        1.11    "Non-Patent Products" means any kit, composition of matter, material, product, comprising a Biological
Product to the extent that the manufacture, use, or sale of which, in a particular country, does not infringe an unexpired claim of a patent or pending claim of a patent application under Patent
Rights. 

4

 

        1.12    "Identified Product" means any kit, product, compound, biological agent, or other material the manufacture, use or sale
of which is not covered by Patent Rights and does not comprise a Biological Product, but which is an agonist, an antagonist, or an inverse agonist that is identified through the use of the Biological
Product, Covered Product or the practice of the Patent Rights and sold by Licensee, its Affiliates, Joint Ventures, or sublicensees. 

        1.13    "Service Product" means any kit, product, compound, biological agent or other material, made, used, or sold by a third
party, which is not covered by Patent Rights and does not comprise a Biological Product, but which is an agonist, an antagonist, or an inverse agonist that is identified by the Licensee, its
Affiliates, Joint Ventures, or sublicensees through the use of Services provided to the third party by Licensee, its Affiliates, Joint Ventures, or sublicensees. 

        1.14    "Products" means Covered Products, Non-Patent Products, Identified Products, and Services. 

        1.15    "Service Revenues" means the total amount of gross consideration collected from the sale of Services (1) less the
cost of raw materials, labor, direct and indirect cost (where such indirect and direct costs do not exceed 125% of the cost for raw materials and labor) or (2) the standard cost of Services as
calculated in accordance with generally acceptable accounting methods uniformly applied in all circumstances and approved in writing by The Regents, provided, however, that such costs specified under
(1) or (2) above have not already been deducted from Research Funding. Service Revenues does not include any consideration that Licensee receives for Research Funding, reimbursement of patent
filing, patent prosecution, patent maintenance, royalties on Identified Products, royalties on Covered Products, royalties on Profits, Sublicense Fees, or other expenses (as agreed upon in writing by
the Parties). [***] Moreover, if a Service is provided that combines biologically or chemically active components provided by
third parties, then Licensee will be entitled to reduce the Profits paid to The Regents by adjusting the Service Revenues on which the Profits are based. In such event, the Service Revenues will be
adjusted by the fraction (A/A+B) where A is the number of biologically or chemically active components contained in Services covered by Patent Rights or the use of the Biological Products and B is the
number of biologically or chemically active components provided by the third party or Licensee that are not either Biological Products or covered by Patent Rights. 

        1.16    "Affiliate" of the Licensee means any entity which, directly or indirectly, controls the License, is controlled by the
Licensee, or is under common control with the Licensee. For these purposes, "control" is defined as one person or entity having: the ownership or control of at least fifty percent (50%) of the voting
stock of the other person or entity, or a lesser percentage of the voting stock if such a percentage is the maximum allowed to be owned by a foreign entity in a particular jurisdiction. 

        1.17    "Joint Venture" means any separate entity established by an agreement between one or more third parties and Licensee, in
which the separate entity manufactures, uses, purchases, sells, or acquires Products from the Licensee. 

        1.18    "Net Sales" means the gross invoice prices from the sale of Products by the Licensee, its sublicensee, Affiliate, or
Joint Venture to one or more third parties for cash or other form of consideration in accordance with generally accepted accounting principles, less only the following deductions (if not already
deducted from the gross invoice price and at rates customary within the industry): (a) allowances (actually paid and limited to rejections, returns, prompt payment discounts and volume
discounts granted to customers of Products, whether in cash or Products in lieu of cash); (b) freight, transport packing, insurance charges and postage associated with transportation; and
(c) taxes, tariff, or import/export duties based on sales when included in gross sales, but not value-added taxes or taxes assessed on income derived from such sales. 

        1.19    "Proprietary Information" will have the meaning set forth in Paragraph 29.1. 

5

 

        1.20    "Research Funding" means the total payments received by Licensee, its Affiliates, Joint Ventures, or sublicensees from a
third party for the conduct of scientific research, other than scientific research targeted to the identification of Products or Service Products or a third party, under which the Biological Product
is used or the Patent Rights are practiced. Any consideration received by Licensee, its Affiliates, Joint Ventures, or sublicensees for the conduct of scientific research that does not use the
Biological Product or is not covered by the Patent Rights is outside the scope of this Agreement, and The Regents is not entitled to share in such consideration. 

        1.21    "Profits" means the sum total of Service Revenue and royalties on Service Products. 

2.     Grant  

        2.1    Subject to the limitations set forth in this Agreement and subject to the licenses granted to the United States
Government and HHMI as set forth in the Recitals above, The Regents hereby grants to Licensee exclusive licenses under Patent Rights in countries where Patent Rights exist for the following:
(i) to make, have made, use, sell, offer for sale, have sold, export, and import the Covered Products; (ii) to provide Services to one or more third parties; and (iii) to identify
Identified Products and Service Products. For the avoidance of doubt, for so long as The Regents has granted to Licensees the above rights and licenses set forth in this Paragraph 2.1,
Licensee, its Affiliates, Joint Ventures, and sublicensees have the right to sell Identified Products, and their third-party customers of Services have the right to sell Service Products independent
of The Regents. 

        2.2    Subject to the limitations set forth in this Agreement and subject to the licenses granted to the United States
Government and HHMI as set forth in the Recitals above, The Regents hereby grants to Licensee exclusive licenses under Property Rights in countries where Property Rights may be lawfully granted for
the following: (i) to possess, make (propagate), have made, and use the Biological Materials; (ii) to make, have made, use, sell, offer for sale, have sold, export, and import the
Non-Patent Products; (iii) to provide Services to one or more third parties; and (iv) to identify Identified Products and Service Products. For the avoidance of doubt, for so
long as The Regents has granted to Licensee the above rights and licenses set forth in this Paragraph 2.2, Licensee, its Affiliates, Joint Ventures, and sublicensees have the right to sell
Identified Products, their third-party customers of Services have the right to sell Service Products independent of The Regents. 

        2.3    The rights granted to Licensee under Paragraphs 2.1 and 2.2 above are limited to the right to possess, make (propagate),
have made, and use the Biological Materials only for the purposes stated in this Agreement and for no other purposes. Licensee acknowledges that title to the tangible material comprising the
Biological Materials is owned by The Regents and is not transferred to Licensee under this Agreement except as necessary to permit the sale of Products that is comprised of the Biological Material
(e.g. Biological Product). Licensee will not sell, donate, abandon, or otherwise transfer the Biological Materials to any third party other than an Affiliate, Joint Venture, or, sublicensee. 

6

           2.4    For any licenses granted to Licensee under Paragraphs 2.1 and 2.2 above, The Regents also grants
to Licensee the right to
issue sublicenses to one or more third parties to make, have made, use, sell, offer for sale, have sold, export, and import Products and practice the Patent Method, provided that Licensee retains
exclusive rights thereto under this Agreement. To the extent that rights are granted to sublicensees under specific terms and covenants, such terms and covenants will provide for the rights and
obligations due The Regents, HHMI, and United States Government, including royalties sufficient to provide for payment to The Regents by Licensee at the rates and bases set forth in Article 4
(Royalties) and Sublicense Fees, if any, as set forth in Paragraph 3.2. For each sublicense granted by Licensee, the Licensee will: 

         (a)    notify The Regents of the sublicense granted and provide the Regents with an unredacted copy of the sublicense agreement, which
will be subject
to the confidentiality provisions of this Agreement; 

        (b)    [***] and 

         (c)    [***] The Parties recognize that a sublicensee may request modifications
or changes to these reports, and that such modifications or changes will be acceptable subject to receipt of The Regents' consent. 

        2.5    Licensee may, at its sole discretion, reduce the exclusive licenses granted under Paragraphs 2.1 and 2.2 to
non-exclusive licenses, and subject to Paragraph 2.6, all sublicenses granted by Licensee must be assigned to The Regents. 

        2.6    Upon the earlier to occur, termination of this Agreement or when licenses granted to License under Paragraphs 2.1 and 2.2
are reduced from exclusive to nonexclusive licenses, Licensee will assign to The Regents any sublicenses issued by Licensee, except that The Regents will not assume any obligations of the sublicense
that extend beyond the duties and obligations of The Regents that are contained in this Agreement. If this Agreement is terminated and Licensee has issued any contracts to a third party under which
Licensee receives a royalty based on a Service Product, then the third party will pay directly to The Regents its share of the royalty based on Profits as set forth in Paragraph 4.1 below. 

        2.7    The licenses granted hereunder will be subject to the overriding obligations of the U.S. Government, including those set
forth in 35 U.S.C. 200-212 and applicable governmental implementing regulations. 

        2.8    The manufacture of Covered Products and the practice of the Patent Method will be subject to applicable government
importation laws and regulations of a particular country when Covered Products are made outside the particular country in which such Covered Products are used or sold. 

        2.9    Nothing in this Agreement will limit the right of The Regents, the U.S. government, and HHMI to do any of the following:
(1) publish any and all technical data resulting from any search performed by The Regents, the U.S. government, and HHMI relating to the Invention, to the extent that such results do not
contain Licensee's Proprietary Information; or (2) make and use the Invention, Biological Materials, Biological Products, Covered Products, Patent Method, and associated technology and allow
other educational and non-profit institutions to do so only for educational and noncommercial research purposes. 

7

 

3.     Issue Fee  

        3.1    As partial consideration for all the rights and licenses granted to the Licensee, the Licensee will pay to The Regents a
license issue fee of [***] to be paid according to the following schedule: 

         (a)    [***] to be paid to The Regents on or before  [***]
 recited on page one of this Agreement. This payment includes  [***]
[***]; 

         (b)    [***] to be paid to The Regents on or before  [***]
 This payment includes [***];
 

         (c)    [***] to be paid to The Regents on or before  [***]
. This payment includes [***]; 

         (d)    [***] to be paid to The Regents on or before  [***]
. This payment includes [***]; 

        (e)    [***] to be paid to The Regents on or before  [***]
. This payment includes [***]; and 

         (f)    [***] to be paid to The Regents on or before  [***]
. This payment includes [***]. 

        3.2    Beginning [***] and for each year thereafter
through the year [***], Licensee will pay to The Regents an annual maintenance fee of  [***]. This license maintenance fee will be paid to The Regents on or
before February 28 of each such year. 

        3.3    For each sublicense granted by Licensee to an Affiliate, Joint Venture, or sublicensee to make and use the Biological
Materials, Biological Products, or Covered Products or the practice of Patent Rights, Licensee will pay to The Regents [***] of
all consideration due under each sublicense agreement, which will include the Premium as defined below, (Sublicense Fee). The Sublicense Fee does not include any consideration received by Licensee for
Research Funding, investments in equity or debt financing, excluding the Premium, royalties on Identified Products, royalties on Covered Products and Profits, minimum annual royalties, and
reimbursement of patent costs, as specified in this Agreement. Licensee will pay each Sublicense Fee to The Regent quarterly on or before the dates set forth in Paragraph 4.3 below for
Sublicense Fees received in the prior calendar quarter. 

        3.4    If Licensee desires to accept from a third party  [***], then the Licensee and The
Regents will cooperate with each other in determining the portion of the  [***] and in determining the fair market value of that
[***]. If the Licensee and The Regents are not able to agree upon the fair market value of the  [***], then the Parties will choose a mutually acceptable
third party to determine the fair market value of  [***]. 

        3.5    If a Sublicense Fee is collected that combines biologically or chemically active components comprising either Biological
Products or that are covered by Patent Rights (The Regents' Products) and biologically or chemically active components provided by third parties, then Licensee will be entitled to reduce the portion
of the Sublicense Fee paid to The Regents by adjusting the total amount of the Sublicense Fees on which The Regents' portion is based. In such event, the total amount of the Sublicense Fees will be
adjusted by the fraction (A/A+B) where A comprises The Regents' Products and B is the number, of biologically or chemically active components provided by Licensee or third parties that do not either
comprise the Biological Products or covered by Patent Rights. 

        3.6    The fees set forth in Paragraphs 3.1, 3.2 and 3.3 above will not be refunded, credited, or considered an advance against
royalties, fees, or reimbursements for patent costs due and owing to The Regents under this Agreement. 

8

 

4.     Royalties  

        4.1    As further consideration for all the rights and licenses granted to the Licensee, its Affiliates, Joint Ventures and
sublicensees will pay to The Regents a royalty according to the following: 

         (a)    A royalty rate of [***] received by Licensee, its Affiliates, Joint
Ventures or sublicensees where Covered Products are used or Patent Rights are practiced; 

         (b)    A royalty rate of [***] received by Licensee, its Affiliates, Joint
Ventures, or sublicensees where a Biological Material or a Non-Patent Product is used. If a Product falls within the provisions of both 4.1a and 4.1b, then Licensee will pay only the
royalty rate specified in Paragraph 4.1a above (i.e., a royalty rate of [***] received by Licensee, its Affiliates, Joint
Ventures, and sublicenses); 

         (c)    A royalty rate of [***] of each Identified Product sold by Licensee, its
Affiliates, Joint Ventures, or sublicensees and identified through the use of Covered Products or the practice of the Patent Rights; 

         (d)    A royalty rate of [***] of each Identified Product sold by Licensee, its
Affiliates, Joint Ventures, or sublicensees and identified through the use of Non-Patent Products or the Biological Materials; 

         (e)    A royalty rate of [***] of each Covered Product sold by Licensee, its
Affiliates, Joint Ventures or sublicensees. In the event Licensee must pay to The Regents and one or more third parties a total royalty rate that exceeds  [***] for royalties paid on Products covered by
Patent Rights and the patent rights of one or more third parties, Licensee may
reduce the royalty rate due The Regents by [***] the royalty rate paid to a third party, provided, however, that in no event
will the royalty rate paid to The Regents be less than [***]. 

        In
the event that Licensee is unable to negotiate a royalty based on the sales of Service Products due to payments already received by Licensee for the sale of Services, then no royalty
will be due to The Regents. 

        4.2    If a Product is combined and sold in the form of a multi-component product containing ingredients, which ingredients,
themselves, are not Products, then Licensee will be entitled to reduce the royalties paid to The Regents by adjusting the Net Sales on which the royalties are based. In such event, the Net Sales base
will be adjusted to be the greater of the amounts calculated using Methods A, B or C below, as follows: 

         (a)    Method A: Net Sales equals ((cost of the Product used in the subject multi-component product) divided by (the total cost of such
multi-component
product)) and multiplied by (the sales price of such multi-component product); 

        (b)    Method B: Net Sales equals (the sales price of the subject multi-component product containing the Product) minus (the sales price of
a comparable
multi-component product not containing the Product); provided that the components which are not the Product are similar and comparable in each case; or 

         (c)    Method C: Net Sales equals the sales price for the Product (not combined with other components) as sold to independent third
parties purchasing
similar quantities of the Product. 

        4.3    Royalties will accrue in each country for the duration of Patent Rights in that country and will be payable to The
Regents when: (1) the Profits are received by the Licensee on Service Products, and (2) Products are invoiced, or if not invoiced, when the Products are delivered to a third party or to
the Licensee, Affiliate, Joint Venture, or sublicensee for end use. 

9

 

        4.4    Royalties and Sublicense Fees accruing to The Regents will be paid to The Regents quarterly on or before the following
dates for the royalties and Sublicensing Fees received in the prior calendar quarter: 

	•
	February 28
for the calendar quarter ending December 31;

	•
	May 31
for the calendar quarter ending March 31;

	•
	August 31
for the calendar quarter ending June 30; and

	•
	November 30
for the calendar quarter ending September 30. 

        4.5    Each such payment will be for royalties and Sublicense Fees that have accrued up to Licensee's most recently completed
quarter. 

        4.6    Beginning in the year 2014, the Licensee will pay to The Regents a minimum annual royalty in the amounts and at the times
set forth below: 

	Year
 
	 	Amount

	2014	 	[***]
	

2015	
 	
[***]
	

2016	
 	
[***]
	

2017	
 	
[***]
	

2018	
 	
[***]

        4.7    In each succeeding calendar year after the year 2018, the Licensee will pay a minimum annual royalty of  [***] and thereafter for the life of this Agreement. This minimum annual royalty will be paid to The Regents by
February 28 of each year and will be credited against any royalties due and owing for the calendar year in which the minimum payment was made 

        4.8    If the licenses granted to Licensee under Paragraphs 2.1 and 2.2 are reduced from exclusive to non-exclusive
licenses, and The Regents grants the same rights under a non-exclusive license to any third party at more favorable financial terms than specified in Articles 3 (issue Fees) and 4
(Royalties), then The Regents will notify the Licensee in writing of the financial terms contained in the other license agreement. Licensee will have  [***] days from the effective date of The Regents'
written notice to elect to amend this Agreement. Licensee may elect to amend
this Agreement, upon written notice to The Regents, by replacing in whole, but not in part, the financial terms of this Agreement with the financial terms of the other license agreement. 

        4.9    In the event reproducible data shows that functional expression of human T1R1, T1R2 or an member of the T2R receptor
family can be used in a format suitable for identifying taste modulators consisting of a sweet or salt antagonist, inverse agonist, or agonist, then the Parties will negotiate in good faith to raise
the minimum annual royalties to account for additional amounts to be paid to The Regents for the increased value provided to Licensee for the use of receptors in identifying the additional taste
modulators. 

        4.10    All consideration due The Regents will be payable in United States currency collectible at par in San Francisco,
California. When Products are sold or Sublicense Fees are paid for consideration other than United States currency, the royalties and Sublicense Fees will first be determined in the foreign currency
of the country in which such Products were sold and Sublicense Fees were received and then converted into equivalent United States currency. The exchange rate will be the rate that is quoted in the
Wall Street Journal on the last business day of the reporting period. 

10

 

        4.11    Royalties on sales of Products and Sublicense Fees received in any country outside the United States will not be reduced
by any taxes, fees, or other charges imposed by the government of such country except those taxes, fees, and charges allowed under the provisions of Paragraph 1.18 (Net Sales).  [***]

        4.12    Notwithstanding the provisions of Article 28 (Force Majeure) below, if at any time Licensee is prevented from
promptly paying part or all of the royalties or Sublicense Fees owed to The Regents because of legal restrictions encountered by Licensee in any country where a Product is sold or distributed, or a
sublicense is issued, the Licensee will convert the amount owed to The Regents into United States currency and will pay The Regents directly from another source of funds for the amount impounded. 

        4.13    In the event any patent or claim under Patent Rights is held invalid in a final decision by a court of competent
jurisdiction and last resort and from which no appeal has or can be taken, Licensee, its Affiliates, Joint Ventures, or sublicensees are not obligated to pay royalties based on such patent or claim,
or any claim patentably indistinct therefrom as of the date of final decision. The Licensee, its Affiliates, Joint Ventures, or sublicensees will not, however, be relieved from paying:
(1) royalties that accrued before the final decision; (2) royalties that are based on another unexpired patent or claim; (3) royalties that are not involved in the final decision;
or (4) Profits due under Paragraph 4.1b, and royalties due on Identified Products under Paragraph 4.1d. 

        4.14    No royalties will be collected or paid to the Regents on Products and Service Products sold to the United States
Government. The Licensee, its Affiliates, Joint Ventures or sublicensees will reduce the amount charged for Products and Service Products distributed to the United States Government by an amount equal
to the royalty otherwise due The Regents for such Products and Service Products. 

5.     Due Diligence  

        5.1    The Licensee, upon execution of this Agreement, will diligently proceed to develop, manufacture, market, and sell
Identified Products and to develop and to provide Services to its customers, in quantities sufficient to meet market demand therefor. 

        5.2    The Licensee will be entitled to exercise prudent and reasonable business judgment in the manner in which it meets its
due diligence obligations. In no case, however, will the Licensee be relieved of its obligations to meet the due diligence provisions of this Article 5 (Due Diligence). 

        5.3    The Licensee will obtain all necessary governmental approvals in each country in which Licensee manufactures and sells
Covered Products, Non-Patent Products, and Identified Products and provides Services to its customers. 

        5.4    Subject to Paragraph 5.6, The Regents will have the right to  [***] if the
Licensee is unable to perform any of the following: 

[***]

        5.5    In the event reproducible data shows that functional expression of human T1R1, T1R2, or any member of the T2R receptor
family can be used in a format suitable for identifying taste modulators consisting of a sweet or salt antagonist, inverse agonist, or agonist, then additional due diligence provisions, such as
milestone events and the corresponding dates in which such milestone events will be met, will be added to this Agreement upon the good-faith negotiations of the Parties. 

        5.6    To exercise the right to [***], The Regents will
give Licensee written notice of the deficiency. If Licensee does not cure the deficiency within sixty (60) days after the written notice takes effect and does not demonstrate to the Regents'
satisfaction, by written, tangible evidence, that such default has been cured, then The Regents may, at its option, [***]. The
exercise of this right and option by The Regents supersedes the rights granted in Article 2 (Grant). Any notice given by either Party will be subject to Article 20 (Notices). 

11

   6.     Progress and Royalty Reports  

        6.1    Licensee will provide The Regents with a progress report every six months beginning on August 31, 2000, and
continuing until the first commercial sale in the United States, Europe, and Japan for each of the following Product categories: Covered Product, Identified Product, and Services. 

        6.2    The progress reports submitted under Paragraph 6.1 will cover the development and testing of all Products, and the
receipt of all governmental approvals necessary for the marketing of these Products. In particular, the progress reports will include, but not be limited to, the following topics directly related to
Products so that The Regents may determine Licensee's progress in developing and testing Products and whether Licensee has met its diligence obligations set forth in Article 5 (Due Diligence)
above: 

	•
	summary
of work completed

	•
	key
scientific discoveries

	•
	summary
of work in progress

	•
	current
schedule of anticipates events or milestones

	•
	anticipated
date of first commercial sale, which date shall not be required to be reported earlier than 6 months prior to such date, for Covered Products (if
applicable), Identified Products, and Services (if applicable), in the United States, Europe and Japan

	•
	activities
of Affiliates, Joint Ventures and sublicensees, if any. 

        6.3    The Licensee will report to The Regents the first date Licensee receives Profits and the date of first commercial sale of
each Product in the United States, Europe and Japan by reporting these dates in its subsequent progress and royalty reports. 

        6.4    After the first commercial sale of a Product, the Licensee will provide The Regents with quarterly royalty reports on or
before each February 28, May 31, August 31, and November 30 of each year. Each royalty report will cover the most recently completed quarter (October through December,
January through March, April through June, and July through September) and will show: 

         (a)    the Sublicense Fees, Service Revenues, gross sales and Net Sales of Products sold by the Licensee and its Affiliates, Joint
Ventures,
sublicensees, and the Profits based on Service Products sold by a third party during the most recently completed calendar quarter; 

         (b)    the number of Products; sold or distributed and the Profits received by the Licensee, its Affiliates, Joint Ventures, sublicensees,
and the
number of Service Products; sold by a third party; 

         (c)    the patent applications and patents contained in Patent Rights that either claim the Products or were used to identify the
Identified Products
and Service Products. If neither Patent Rights claim the Products nor were the Patent Rights used to identify Identified Products and Service Products, then the Biological Materials or
Non-Patent Products used to make or use the Products or identify the Identified Products and Service Products; 

         (d)    the royalties and Sublicense Fees paid in United States currency; 

         (e)    the exchange rates used, if any; and 

        (f)    the method used to calculate the royalty, including all deductions taken. 

        6.5    If no sales have been made on Products or no Profits have been received by Licensee during any reporting period after the
first commercial sale of a Product or the first date Profit were received, then a statement to that fact is required. 

12

 

7.     Books and Records  

        7.1    The Licensee will keep accurate books and records showing all Products manufactured, used, or sold and Profits received
under the terms of this Agreement. Such books and records will be held in safe keeping for at least five years after the date of the royalty payment to which they pertain. The Regents and its
representatives and agents may inspect such books and records at reasonable times, and not more than once per calendar year, as agreed to in advance by Licensee, to determine the accuracy of the books
and records and to determine whether Licensee is in compliance with the terms of this Agreement. 

        7.2    The Regents will pay the fees and expenses of its representatives that perform the inspection as specified in
Paragraph 7.1. If, however, an error in royalties or Sublicense Fees is discovered that amounts to more than five percent (5%) of the total royalties and Sublicense Fees due for the first three
years after the effective date of this agreement, or an error in royalties or Sublicensee Fees that amounts to more than ten percent (10%) of the total royalties and Sublicense Fees for any year after
the third year past the effective date of this Agreement, then the fees and expenses of these representatives will be borne by the Licensee. 

8.     Life of the Agreement  

        8.1    Unless otherwise terminated by operation of law or by acts of the Parties in accordance with the terms of this Agreement,
this Agreement will be in force from the effective date recited on page one and will remain in effect until the later to occur of the following: (a) the expiration of the
last-to-expire patent licensed under this Agreement; or (b) for ten (10) years from the date of the last Identified Product to be introduced to the market in the
United States by Licensee, its Affiliates, Joint Ventures, or sublicensees. 

        8.2    Any termination of this Agreement will not affect the rights and obligations set forth in the following Articles: 

	Article 7	 	Books and Records
	

Article 11	
 	

Disposition of Products and Biological Materials on Hand Upon Termination
	

Article 14	
 	

Use of Names and Trademarks
	

Article 15	
 	

Limited Warranty
	

Paragraph 16.5	
 	

Patent Prosecution and Maintenance
	

Article 19	
 	

Indemnification
	

Article 24	
 	

Failure to Perform
	

Article 29	
 	

Confidentiality

        8.3    Any termination of this Agreement will not relieve the Licensee of its obligation to pay any monies due and owing at the
time of, or prior to, such termination. Licensee is not obligated to pay The Regents any issue fees due under Paragraph 3.1 and any minimum annual royalties due under Article 4, which
fees and royalties are not due and owing at the effective date of termination. 

9.     Termination by The Regents  

        9.1    Subject to Paragraph 5.6, if Licensee violates or fails to perform any term or covenant of this Agreement, then
The Regents may give written notice of default (Notice of Default) to the Licensee. If Licensee fails to cure the default within sixty (60) days after such notice takes effect, then The Regents 

13

 

will
have the right to terminate this Agreement by giving a second written notice (Notice of Termination) to Licensee. If a Notice of Termination is sent to Licensee, this Agreement will automatically
terminate on the date such notice takes effect. Termination of this Agreement will not relieve the Licensee of its obligation to pay any royalty, minimum annual royalty, reimbursement for patent
costs, and Sublicense Fee owing at the time of, or prior to, such termination and will not impair any accrued right of The Regents. These notices will be subject to Article 20 (Notices). 

10.   Termination by the Licensee  

        10.1    The Licensee will have the right at any time to terminate this Agreement in whole or with respect to any portion of
Patent Rights or Property Rights by giving to The Regents a written Notice of Termination. Subject to Article 20 (Notices), if a Notice of Termination is sent to The Regents, this Agreement, or
that portion of the Patent Rights or Property Rights subject to such Notice of Termination, will automatically terminate sixty (60) days after such notice takes effect. 

        10.2    In the event of termination, Licensee is not relieved of any obligation or liability that has accrued hereunder prior to
or at the time of termination, including any obligation to pay fees (e.g., Sublicense Fees), royalties, minimum annual royalties, or reimbursements of patent costs. Any performance(s) made by Licensee
prior to the termination of this Agreement, including any payment made by Licensee, is not rescinded by the event of termination. Minimum annual royalties not already owed prior to or at the date of
such Notice of Termination will not be owed to The Regents. Any rights of The Regents that arose under this Agreement prior to the termination will not be affected by he event of termination. 

11.   Disposition of Products and Biological Materials on Hand Upon Termination.  

        11.1    In the event this Agreement terminates prior to the expiration of its full term, Licensee may sell only previously made
or partially made Products for a period of not more than [***] days following the effective date of termination. The sale of
such Products will be subject to the terms of this Agreement including, but not limited to, the payment of Sublicense Fees and royalties at the rates, bases, and times provided herein, and the
rendering of reports in connection therewith. 

        11.2    Upon termination of this Agreement, Licensee will destroy any Biological Materials and Biological Products that Licensee
has in its possession within [***] after the effective date of termination. Within  [***] following the effective date of termination, Licensee will notify
The Regents in writing that such Biological Materials
and Biological Products have been destroyed. 

12.   Supply of the Biological Material  

        12.1    The Principal Investigators will initially supply Licensee with viable samples of the Biological Materials within sixty
(60) days from the effective date recited on page one of this Agreement. To the extent Licensee requests and necessarily requires additional samples from the Principal Investigators during the
term hereof, and the Principal Investigators have such additional samples in its possession and control, the Principal Investigators will supply such additional samples to the Licensee. Licensee will
pay the actual handling and shipping costs for any samples provided. 

13.   Maintenance of the Biological Material  

        13.1    The Regents and the NIH expressly reserves the right to transfer the Biological Materials to one or more
non-profit third parties for educational and non-commercial research purposes only. The Regents will instruct the Principal Investiga- tors that they can transfer the
Biological Materials to non-profit third parties solely for educational and non-commercial research purposes under the terms and conditions set forth in the biological material
transmission letter attached hereto as Appendix A. The NIH will instruct its inventors that they can transfer the Biological Materials to non-profit third 

14

 

parties
solely for educational and non-commercial research purposes under the terms and conditions set forth in the Uniform Biological Material Transfer Agreement issued by the NIH. The
Licensee understands that The Regents' and the NIH's right to transfer the Biological Materials for educational and non-commercial research purposes could lead to the inadvertent loss or
diminution of proprietary and commercial value of the Biological Materials. The Regents will use its best efforts to transfer the Biological Material to non-profit third parties in the
manner set forth above in order to minimize the loss or diminution of value. If a loss does occur, The Regents agrees to negotiate in good faith for a reduction in payments owed by Licensee when such
payments directly relate to the Biological Material. 

14.   Use of Names and Trademarks  

        14.1    Nothing contained in this Agreement will be construed as giving Licensee, the HHMI, or The Regents the right to use any
name, trade name, trademark, or other designation (including contractions, abbreviations or other designations thereof) of any of the above-named entities for the purpose of advertising, publicity, or
other promotional activities. Unless required by law or consented to in writing by the Executive Director, Research Administration and Technology Transfer of The Regents, the Licensee is expressly
prohibited from using the name "The Regents of the University of California," the name of any campus of the University of California, the National Institutes of Health, or Howard Hughes Medical
Institute for the purposes of advertising, publicity, or other promotional activities. 

        14.2    The Regents, the NIH, and HHMI will be free to release the terms of this Agreement upon the request of, and only to the
inventors and senior administrative officials of The Regents, the NIH, and HHMI. If such release is made, The Regents, the NIH, and HHMI will request that the terms of this Agreement be kept in
confidence pursuant to Article 29 (Confidentiality). Should a third party inquire whether a license to Patent Rights is available, The Regents, the NIH, and HHMI may disclose the existence of
this Agreement and the extent to which rights are granted under Article 2 (Grant). The Regents, the NIH, and HHMI will not disclose the name of the Licensee, except when The Regents, the NIH,
or HHMI is required by law to release such information pursuant to the California Public Records Act or other applicable law. 

15.   Limited Warranty  

        15.1    The Regents, the U.S. government, and HHMI warrant to the Licensee that they have the lawful right to grant this
license. 

        15.2    The Invention, Biological Material, Products, Patent Rights, Property Rights and Patent Methods are provided WITHOUT
WARRANTY OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR ANY OTHER WARRANTY, EXPRESS OR IMPLIED. THE REGENTS, THE U.S. GOVERNMENT, AND HHMI MAKE NO REPRESENTATION OR WARRANTY THAT THE
INVENTION, BIOLOGICAL MATERIAL, PRODUCTS, PATENT RIGHTS, PROPERTY RIGHTS OR PATENT METHOD WILL NOT INFRINGE ANY OTHER PATENT OR OTHER PROPRIETARY RIGHT. 

        15.3    IN NO EVENT WILL THE REGENTS, THE U.S. GOVERNMENT, OR HHMI BE LIABLE FOR ANY INCIDENTAL, SPECIAL, OR CONSEQUENTIAL
DAMAGES RESULTING FROM EXERCISE OF THIS LICENSE OR THE USE OF THE INVENTION, BIOLOGICAL MATERIAL, PRODUCTS, PATENT RIGHTS, PROPERTY RIGHTS OR PATENT METHOD. 

        15.4    Nothing in this Agreement will be construed as: 

        (a)    A warranty or representation by The Regents, the U.S. government, or HHMI as to the validity, enforceability, or scope of any Patent
Rights; or 

15

 

         (b)    a warranty or representation that anything made, used, sold, or otherwise disposed of under any license granted in this Agreement
is or will be
free from infringement of patents of third parties; or 

        (c)    an obligation to bring or prosecute actions or suits against third parties for patent infringement except as provided in
Article 18.
(Patent Infringement); or 

         (d)    conferring by implication, estoppel, or otherwise, any license or rights under any patents of The Regents, the U.S. government, and
HHMI other
than Patent Rights as defined herein, regardless of whether such patents are dominant or subordinate to Patent Rights; or 

        (e)    an obligation to furnish any know-how not provided in Patent Rights or Biological Materials. 

16.   Patent Prosecution and Maintenance  

        16.1    The Regents will diligently prosecute and maintain the patent applications and patents under Patent Rights. The Regents
will promptly provide the Licensee with copies of all relevant documentation so that Licensee may continually be informed on the status of the prosecution. Licensee may comment upon such documentation
one month in advance of any initial deadline for filing a response to the U.S. or foreign patent office. If, however, Licensee has not commented sufficiently in advance of the initial deadline for
filing a response with the appropriate government patent office, The Regents will be free to respond without considering Licensee's comments, if any. Both Parties will keep all prosecution related
documents in confidence pursuant to the provisions of Article 29 (Confidentiality) herein. Counsel for The Regents will take instructions only from The Regents. 

        16.2    The Regents will use all reasonable efforts to amend any patent application, including claims requested by Licensee, to
protect the Covered Products, Services, and Patent Methods that are contemplated to be sold or practiced under this Agreement. 

        16.3    The Regents will, at the request of the Licensee, file, prosecute, and maintain patent applications and patents under
Patent Rights in foreign countries if such rights are available. The Licensee must notify The Regents within seven months of filing a corresponding United States patent application of its decision to
file a counterpart foreign patent application. This notice concerning foreign filing must be in writing and must identify the countries desired. If The Regents does not receive written notice
within the seven-month period, then the absence of such notice will be considered an election by License not to secure foreign patent rights on its behalf. The Regents will have the right to file
patent applications at its own expense in any country not designated by Licensee, and such patent applications and resulting patents, if any, will not be included in the licenses granted under this
Agreement. 

        16.4    Licensee will reimburse The Regents for all past, present and future costs of preparing, filing, prosecuting and
maintaining the United States and foreign patent applications, including costs for interference and opposition proceedings. All such costs incurred by The Regents prior to the execution of this
Agreement will be due upon execution of this Agreement and will be payable at the time that the license issue fee is due and owing. The Licensee will reimburse The Regents for all other costs and
charges within 30 days after Licensee's receipt of an itemized invoice from The Regents stating such cost. 

16

           16.5    Licensee's obligation to underwrite and to pay patent preparation, filing, prosecution,
maintenance, and related costs
will continue for costs incurred by The Regents until three months after expiration of this Agreement or three months after receipt by either Party of a Notice of Termination. The Licensee will
reimburse The Regents for all patent costs incurred during the term of this Agreement and for three months thereafter, whether or not invoices for such costs are received during the three month period
after expiration of this Agreement or receipt by either Party of a Notice of Termination. The Licensee may, with respect to any particular patent application or patent, terminate its obligations to
the patent application or patent in any or all designated countries upon giving The Regents advance written notice of three months. The Regents may continue prosecution or maintenance of such
application(s) or patent(s) at its sole discretion and expense, provided, however, that the Licensee will have no further rights or licenses thereunder. 

        16.6    The Licensee will notify The Regents of any change of status as a small entity (as defined by the United States Patent
and Trademark Office), which includes notifying The Regents of its first sublicensee that does not qualify as a small entity. 

17.   Patent Marking  

        17.1    The Licensee will mark all Products, or containers thereof, made, used, or sold under the terms of this Agreement in
accordance with the applicable patent marking laws. 

18.   Patent Infringement  

        18.1    In the event Licensee knows that one or more third parties are substantially infringing the Patent Rights under this
Agreement, the Licensee will promptly notify The Regents in writing and provide The Regents with reasonable evidence of such infringement. 

        18.2    Both Parties to this Agreement acknowledge that during the period and in a jurisdiction where the Licensee has exclusive
rights under this Agreement, neither Party will notify a third party other than NIH and HHMI that an infringement of Patent Rights occurred without first obtaining consent of the other Party. Both
Parties will use their best efforts in cooperation with each other to terminate the infringement without litigation. 

        18.3    If the Licensee desires that Patent Rights be enforced against infringers, and the Licensee has exclusive rights under
Patent Rights, the Licensee either may request The Regents to take legal action against the patent infringer or may request permission from The Regents to file suit against the patent infringer.
Licensee's request must be made in writing and must include reasonable evidence of the infringement and resulting damages to the Licensee. If the infringing activity has not been abated within
90 days following the effective date of Licensee's request, then The Regents and The NIH will have the right to elect one of the following: 

         (a)    commence suit on their own account; or 

         (b)    refuse to participate in suit against the patent infringer. 

        The
Regents and NIH will give written notice of their election to the Licensee within 100 days following the effective date of Licensee's written request. The Licensee,
thereafter, may bring suit for patent infringement if and only if The Regents and the NIH elects not to commence suit and if the infringement occurred during the period and in a jurisdiction where the
Licensee had exclusive rights under this Agreement. In the event Licensee elects to bring suit in accordance with this Paragraph, The Regents and NIH may thereafter join such suit at their own
expense. 

        18.4    The Party who brought the suit will pay for all legal costs and will recover any and all recoveries; provided, however,
that if The Regents and/or the NIH brought suit on their own account, 

17

 

then
the Parties and the NIH may share in the expense and the recoveries will be allocated in the following order: (a) each party will be reimbursed in equal amounts for attorney's costs, fees,
and other related expenses (to the extent that each party paid for such costs, fees, and expenses) until all such costs, fees, and expenses are reimbursed; and (b) each party will share equally
in any remaining amount in proportion to the share of expenses paid by each party. 

        18.5    Each party will cooperate with the others during litigation proceedings instituted hereunder but at the expense of the
party who brought the suit. The party bringing suit will control such litigation, except that The Regents may be represented by counsel of its choice in any suit brought by the Licensee. 

19.   Indemnification  

        19.1    The Licensee will (and require its Affiliates, Joint Ventures and sublicensees to) indemnify, hold harmless, and defend
The Regents, NIH, and HHMI, its officers, employees, agents, and the sponsors of the research (e.g. NIH and HHMI) that led to the Biological Materials and Invention; the inventors of any invention
covered by patents or patent applications in Patent Rights (including Products and Patent Method contemplated thereunder) and their employers against any and all claims, suits, losses, damage, costs,
fees, and expenses resulting from or arising out of exercise of this license or any sublicense. This indemnification will include, but will not be limited to, any product liability. 

        19.2    The Licensee, at its sole cost and expense, will insure its activities in connection with the work or activities under
this Agreement and obtain prior to initiating such work or activity, and keep in force, and maintain insurance as follows (or an equivalent program of self insurance): 

         (a)    Comprehensive or Commercial Form General Liability Insurance (contractual liability included) with limits as follows: 

	Each Occurrence	 	$	1,000,000
	Products/Completed Operations Aggregate	 	$	5,000,000
	Personal and Advertising Injury	 	$	1,000,000
	General Aggregate (commercial form only)	 	$	5,000,000

         (b)    The above referenced coverages and limits will not limit in any way the liability of the Licensee. The Licensee will furnish The
Regents with
certificates of insurance evidencing compliance with all requirements. Such certificates will: 

          (i)  provide The Regents with advance written notice of 30 days to any modification; 

         (ii)  indicate that The Regents NIH, and HHMI have been insured under the above coverages; and 

       (iii)  provide that coverages will be primary and will not participate with nor will be excess over any valid and collectable
insurance or program of self-insurance carried or maintained by The Regents, NIH, and HHMI. 

        19.3    The Regents will promptly notify the Licensee in writing of any claim or suit that has been brought against The Regents
for which The Regents, NIH, or HHMI intends to invoke the provisions of this Article 19 (Indemnification). The Licensee also will keep The Regents informed on a current basis of its defense of
any claims pursuant to this Article 19 (Indemnification). 

18

 

20.   Notices  

        20.1    Any notice or payment required to be given to either Party will be deemed to have been properly given and to be
effective: 

         (a)    on the date of delivery if delivered in person; 

         (b)    on the date of mailing if mailed by first-class certified mail, postage paid; or 

        (c)    on the date of mailing if mailed by any global express carrier service that requires the recipient to sign the documents
demonstrating the
delivery of such notice of payment; and 

when
sent to the respective addresses given below, or to another address as designated in writing by the Party changing its address. 

	In the case of the Licensee:	 	Ambryx Inc.

11099 North Torrey Pines Road, Suite 160

La Jolla, CA 92037

Telephone: (858) 646-8300

Facsimile: (858) 404-0750

Attention:
	 	 	 	Steve K. Snyder

Executive Director, Corporate Development

Telephone: (858) 646-8304
	

In the case of The Regents:	
 	

THE REGENTS OF THE UNIVERSITY OF CALIFORNIA

Office of the President

Office of Technology Transfer

1111 Franklin Street, 5th Floor

Oakland, CA 94607-5200

Telephone: (510) 587-6000

Facsimile: (510) 587-6090

Attention:
	 	 	 	Executive Director

Research Administration and Technology Transfer

Referring to: U.C. Case No. 1998-122

21.   Assignability  

        21.1    This Agreement is binding upon and will inure to the benefit of The Regents, its successors and assigns, but will be
personal to the Licensee. This Agreement will not be assigned by the Licensee to any third party without the prior written consent of The Regents, except that Licensee can assign this Agreement to its
successor without prior written consent of The Regents provided that Licensee has sold all or substantially all of its business assets or in connection with the acquisition of Licensee. Any other
attempt by Licensee to assign this Agreement is void unless Licensee obtains the prior written consent of The Regents. 

22.   Late Payments  

        22.1    In the event royalty payments, fees, or reimbursements for patent prosecution costs are not received by The Regents when
due, the Licensee will pay to The Regents interest charges at a rate of ten percent (10%) simple interest per annum. Such interest will be calculated from the date payment was due until actually
received by The Regents. The Regents' acceptance of any late payment interest from the Licensee under Article 22 will in no way affect the provision of Article 23 (Waiver) herein. 

19

 

23.   Waiver  

        23.1    If either Party waives any breach committed by the other Party of any term or covenant, such a waiver will not be deemed
a waiver of any subsequent or similar breach. 

24.   Failure to Perform  

        24.1    In the event either Party fails to perform under the terms and covenants of this Agreement, and the other Party
undertakes legal action in response to such failure, then any legal proceedings that arise
from the action will be conducted in San Francisco, California, and the prevailing Party will be entitled to reasonable attorney's fees in addition to costs and necessary disbursements. 

25.   Governing Laws  

        25.1    THIS AGREEMENT WILL BE INTERPRETED AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF CALIFORNIA, excluding any
choice of law rules that would direct the application of the laws of another jurisdiction, but the scope and validity of any patent or patent application will be governed by the applicable laws of the
country of such patent or patent application. 

26.   Government Approval or Registration  

        26.1    If this Agreement or any associated transaction is required by the law of any nation to be either approved or registered
with any governmental agency, the Licensee will assume all legal obligations to do so. The Licensee will notify The Regents if it becomes aware that this Agreement is subject to a United States or
foreign government reporting or approval requirement. The Licensee will make all necessary filings and pay all costs including fees, penalties, and all other out-of-pocket
costs associated with such reporting or approval process. 

27.   Export Control Laws  

        27.1    The Licensee will observe all applicable United States and foreign laws with respect to the transfer of Products and
related technical data to foreign countries, including, without limitation, the International Traffic in Arms Regulations (ITAR) and the Export Administration Regulations. 

28.   Force Majeure  

        28.1    The Parties to this Agreement will be excused from any performance required hereunder if such performance is rendered
impossible or unfeasible due to any acts of God, catastrophes, or other major events beyond their reasonable control, including, without limitation, war, riot, and insurrection, laws, proclamations,
edicts, ordinances, regulations, strikes, lock-outs, or other serious labor disputes, floods, fires, explosions, or other natural disasters. Either Party to this Agreement, however, will
have the right to terminate this Agreement upon thirty (30) days prior written notice if either Party is unable to fulfill its obligations under this Agreement due to any of the causes
mentioned above and such inability to perform continues for a period of one year. Notices given under this paragraph will be subject to Article 20 (Notices). When such events have abated, the
Parties' respective obligations hereunder shall resume. 

29.   Confidentiality  

        29.1    The Licensee and The Regents respectively will treat and maintain the proprietary business, patent prosecution and
technical information, and other proprietary information, (collectively referred to as "Proprietary Information"), of the other Party in confidence using at least the same degree of care as that Party
uses to protect its own proprietary information of a like nature for a period of time 

20

 

beginning
on the date of disclosure of such Proprietary Information and until [***] after the date of termination of this
Agreement. This confidentiality obligation will also apply to the information defined as "Data" under the Secrecy Agreement, and such Data will be treated as Proprietary Information hereunder. 

        29.2    All Proprietary Information will be labeled or marked confidential or as otherwise marked appropriately by the
disclosing Party. In the event Proprietary Information is orally disclosed, it will be reduced to writing or to some other tangible form, marked and labeled as set forth above by the disclosing Party,
and delivered to the receiving Party within thirty (30) days after the oral disclosure as a record of the disclosure and its confidential nature thereof. Notwithstanding the foregoing, the
Licensee and The Regents may use and disclose Proprietary Information to HHMI, its employees, agents, consultants, contractors, the NIH, and in the case of the Licensee, its sublicensees, provided
that any such parties are bound by a like duty of confidentiality. 

        29.3    Nothing contained in this Agreement will in any way restrict or impair the right of the Licensee or The Regents to use,
disclose, or otherwise deal with any Proprietary Information: 

         (a)    that recipient can demonstrate by written records was previously known to it; 

         (b)    that is now, or becomes in the future, public knowledge other than through the acts or omissions of recipient; 

        (c)    that is lawfully obtained without restrictions by recipient from sources independent of the disclosing Party; 

         (d)    that is required to be disclosed to a governmental entity or agency in connection with seeking any governmental or regulatory
approval, or
pursuant to the lawful requirement or request of a governmental entity or agency under which the governmental entity or agency would not hold the Proprietary Information in confidence; 

        (e)    that is furnished to a third party by the recipient with similar confidentiality restrictions imposed on such third party, as
evidenced in
writing; or 

         (f)    that The Regents is required to disclose pursuant to the California Public Records Act or other applicable law. 

        29.4    Upon termination of this Agreement, the Licensee and The Regents will destroy or return to the disclosing Party
Proprietary Information received from the other in its possession within fifteen (15) days following the effective date of termination. The Licensee and The Regents will provide each other,
within thirty (30) days following termination, a written notice that Proprietary Information has been returned or destroyed. Each Party may, however, retain one copy of Proprietary Information
for archival purposes in non-working files. 

30.   Miscellaneous  

        30.1    The headings of the several Articles are inserted for convenience of reference only and are not intended to be a part of
or to affect the meaning or interpretation of this Agreement. 

        30.2    This Agreement will not be binding upon the Parties until it has been signed below on behalf of each Party, in which
event, it will be effective as of the date recited on page one. 

        30.3    No amendment or modification hereof will be valid or binding upon the Parties unless made in writing and signed on
behalf of each Party. 

        30.4    This Agreement embodies the entire understanding of the Parties and will supersede all previous communications,
representations or understandings, either oral or written, between the Parties relating to the subject matter hereof. The Secrecy Agreement and Letter Agreement specified in the Recitals above are
hereby terminated. 

        30.5    If any of the provisions contained in this Agreement are held to be invalid, illegal, or unenforceable in any respect,
such provisions will not affect any other provisions of this Agreement, and this Agreement will be construed as if such invalid, illegal or unenforceable provisions had never been contained herein. 

        30.6    This Agreement has been negotiated and prepared jointly by both Parties and will not be construed for or against any
Party, but will be given a fair and reasonable construction in accordance with the intention of the Parties. 

        30.7    This Agreement contains Appendix A, Appendix B, Appendix C, and Exhibit A which are attached
and incorporated herein. 

21

 

        Both
The Regents and the Licensee have executed this Agreement, in duplicate originals, by their duty authorized officers on the date and year hereinafter written. 

	Ambryx Inc.	 	The Regents of the University of California
	

By	
 	

/s/  PAUL GRAYSON      
	
 	

By	
 	

/s/  TERRENCE A. FEUERBORN      

	 	 	(Signature)	 	 	 	(Signature)
	

 	
 	

 	
 	

 	
 	

for
	

Name	
 	

Paul Grayson
	
 	

Name:	
 	

Terrence A. Feuerborn
	 	 	(Please Print)	 	 	 	 
	

Title	
 	

President & CEO
	
 	

Title:	
 	

Executive Director, Research Administration and Technology Transfer
	

Date	
 	

3/10/00
	
 	

Date	
 	

3/10/00

22

   
Appendix A—Page 1a 

University
of California 

Instructions
for Standard Letter Transmitting

Biological Materials to Universities and

Nonprofit Institutions 

        The
attached letter is authorized for use by University of California Inventors and administrators only with scientists at other  universities and nonprofit research
institutions when transmitting cell lines, plasmids and the like for non-commercial research purposes.
 

	1.
	Choose
the appropriate form of university or nonprofit research institution in Paragraph 2.

	2.
	Choose
whether or not to include the phrase "our cooperative" in Paragraph 2.

	3.
	Insert
in Paragraph 4 the amount of processing charge. If the material is to be shipped at no charge, insert the words "no charge."

	4.
	Send
the letter in duplicate to the other scientists.

	5.
	Do
not send biological materials until you receive the duplicate copy executed by both the scientist and the other institution.

	6.
	Send
a copy of the fully executed letter agreement to: 

Terence
A. Feuerborn

Executive Director,

Research Administration and Technology Transfer

1111 Franklin Street, 5th Floor

Oakland, CA 94607-5200 

	7.
	Any
changes in the wording of this standard letter must be reviewed by the Director of the Research Administration and Technology Transfer before acceptance. 

23

 

Appendix A—Page
2a 

SAMPLE
LETTER FOR USE PRIOR TO TRANSMISSION OF BIOLOGICAL MATERIALS TO INVESTIGATORS AT UNIVERSITIES OR NON-PROFIT RESEARCH INSTITUTIONS 

(date)

IN
DUPLICATE 

	To:
	

        This
is to (acknowledge receipt of your letter) (confirm our telephone conversation) in which you requested certain research materials developed in this laboratory be sent to you for
scientific research purposes. The materials concerned, which belong to The Regents of the University of California
are:                        . 

        While
I cannot transfer ownership of these materials to you, I will be pleased to permit your use of these materials within your (university) (Non-Profit Research
Institution) laboratory for (our cooperative) scientific research. However, before forwarding them to you, I require your agreement that the materials will be received by you only for use in (our
cooperative work) (scientific research), that you will bear all risk to you or any others resulting from your use, and that you will not pass these materials, their progeny or derivatives, on to any
other party or use them for commercial purposes without the express written consent of The Regents of the University of California. You understand that no other right or license to these materials,
their progeny or derivatives, is granted or implied as a result of our transmission of these materials to you. 

        These
materials are to be used with caution and prudence in any experimental work, since all of their characteristics are not known. 

        As
you recognize, there is a processing cost to us involved in providing these materials to you. We will bill you for our processing costs, which will amount to
$                        . 

        If
you agree to accept these materials under the above conditions, please sign the enclosed duplicate copy of this letter, then have it signed by an authorized representative of your
institution, and return it to me. Upon receipt of that confirmation I will forward the material(s) to you. 

24

 
Appendix A—Page
3a 

        (Note:
other Paragraphs discussing the relevant literature, the nature of the work, hazards relating to materials to be sent etc. may be appropriate. These will vary depending on the
individual circumstances and the relationship between the two parties previously established. Be sure to retain a signed copy when received and send a photocopy of the completed agreement to the
University of California, Office of Technology Transfer, 1111 Franklin Street, 5th Floor, Oakland, CA 94607-5200) 

Sincerely
yours,
                                         
     

	ACCEPTED:	 	 
	

RESEARCH INVESTIGATOR	
 	

 
	

 Printed Name	
 	

 
	

 (Signature)	
 	

 
	

 Date	
 	

 
	

RESEARCH UNIVERSITY OR NON-PROFIT INSTITUTION	
 	

 
	

 Printed Name	
 	

 
	

 (Signature)	
 	

 
	

 Date	
 	

 

25

 
Appendix B—Page
1b 

        The
INVENTOR listed below understand and agree to abide by the terms and conditions of Articles 12 and 13 of the Exclusive License and Bailment Agreement between The Regents of the
University of California and Ambryx, Inc. effective 3/23/00 and to instruct all relevant personnel working within their laboratory to act
accordingly. Said Paragraphs read, in part, as follows: 

	12.1
	The
Principal Investigators will initially supply Licensee with viable samples of the Biological Materials within sixty (60) days from the effective date recited on page one
of this Agreement. To the extent Licensee requests and necessarily requires additional samples from the Principal Investigators during the term hereof, and the Principal Investigators have such
additional samples in its possession and control, the Principal Investigators will supply such additional samples to the Licensee. Licensee will pay the actual handling and shipping costs for any
samples provided.

	13.1
	Th
Regents expressly reserves the right to transfer the Biological Materials to one or more non-profit third parties for educational and non-commercial
research purposes only. The Regents will instruct the Principal Investigators that they can transfer the Biological Materials to non-profit third parties solely for educational and
non-commercial research purposes under the terms and conditions set forth in the biological material transmission letter attached hereto as Appendix A. The Licensee understands that
The Regents' right to transfer the Biological Materials for educational and non-commercial research purposes could lead to the inadvertent loss or diminution of proprietary and commercial
value of the Biological Materials. 

        The
Biological Material is defined in said Agreement as follows: 

	1.2
	"Biological
Material" means the following: 

[***]

26

 

Appendix B—Page
2b 

	By:	 	 
	

/s/  CHARLES S. ZUKER      
 Charles S. Zuker	
 	

3/23/00
 Date

27

 
Appendix C—Page
1c 

CHANCELLOR
APPROVAL OF COMMERCIAL RESTRICTIONS OF TANGIBLE RESEARCH PRODUCTS 

        In
May 1989, the University of California issued the Guidelines on University-Industry
Relations ("Guidelines"). Guideline 10 entitled "Tangible Research Products" requires that when the commercial availability of tangible research products resulting from the
conduct of research is restricted by a license, approval must be obtained from the Chancellor of the campus where the research took place. 

        The
Exclusive License and Bailment Agreement ("Agreement") between THE REGENTS OF THE UNIVERSITY OF CALIFORNIA ("The Regents") and Ambryx Inc. ("Licensee") entitled "Nucleic Acids
Encoding G-Protein Coupled Receptors and Assays for Identifying Taste Modulators" contains provisions that restrict the transfer of certain tangible research products to the commercial
competitors of the Licensee. The provisions of the Agreement require that The Regents will convey tangible research products to others for educational and research purposes under a biological material
transfer agreement. In accordance with the Guidelines, this Agreement permits the University to retain the discretion to publish any results of research at any time and to disseminate the tangible
materials for educational and research purposes. 

        Chancellor
Robert C. Dynes of the University of California, San Diego, approves the provisions of the attached Agreement that restrict the commercial availability of tangible research
products. 

Approval:

	/s/  ROBERT C. DYNES      
 Robert C. Dynes, Chancellor	 	3/7/00
 Date

28

 

[University
of California Letterhead] 

        March 10,
2000 

Mr. Paul
Grayson

President and CEO

Ambryx, Inc.

11099 North Torrey Pines Road, Suite 160

La Jolla, CA 92037 

	Re:
	Side
Letter Agreement Exclusive License and Bailment Agreement between The Regents of the University of California and Ambryx, In. 

Dear
Mr. Grayson: 

        Reference
is made to that certain Exclusive License and Bailment Agreement (the "Agreement") dated as of the date hereof between The Regents of the University of California ("The
Regents") and Ambryx Inc. ("Licensee"). Capitalized terms used but not defined herein shall have the meanings assigned to them in the Agreement. 

        Notwithstanding
any other provisions of the Agreement, the following shall apply: 

	1.
	Licensee
acknowledges that the grant by The Regents to Licensee pursuant to the Agreement of any interest of the NIH in the Patent Rights shall be subject to the review and approval
thereof by the NIH ("NIH Approval").

	2.
	If
NIH Approval shall not have been obtained by the date that is thirty (30) days from the date hereof, then in lieu of any provisions of the Agreement requiring payments by
Licensee, Licensee shall [***]. In such event, at such time thereafter as NIH Approval is obtained, Licensee shall pay to The
Regents, within ten (10) days of written certification to Licensee thereof by The Regents, all payments that would have been payable by Licensee following the date hereof but which were
deferred by the provisions of this paragraph.

	3.
	If
NIH Approval is obtained and Licensee has received written certification hereof by The Regents on or prior to the date that is thirty (30) days from the date hereof, then
paragraphs 1 and 2 above shall not apply and Licensee shall make all payments required to be made by Licensee in accordance with the terms of the Agreement.

	4.
	Licensee
further acknowledges that the grant by The Regents to Licensee pursuant to the Agreement of any interest of The Regents in the Patent Rights shall be subject to the execution
by the Chancellor of Appendix C to the Agreement ("The Regents Approval").

	5.
	The
Regents will proceed to obtain NIH Approval and The Regents Approval as soon as possible. 

        The
foregoing is agreed to as of the date set forth above. 

	Ambryx Inc.	 	The Regents of the University of California
	

By	
 	

/s/  PAUL GRAYSON      
	
 	

By	
 	

/s/  [TEXT ILLEGIBLE]      

	Title	 	3/10/00 President & CEO	 	Title	 	3/10/00 Associate Director

Sincerely,

/s/  JOHN F. GILL      

John
F. Gill

Senior Licensing Officer 

29

 

[Senomyx, Inc.
Letterhead] 

Via Certified U.S. Mail

11099
North Torrey Pines Road

La Jolla, CA 92037 

October 9,
2000 

The
Regents of the University of California

Office of the President

Office of Technology Transfer

1111 Franklin Street, 5th Floor

Oakland, CA 94607-5200

	Attention:	 	Executive Director,

Research Administration and Technology Transfer

	Re:
	Exclusive
License and Bailment Agreement between The Regents of the University of California and Ambryx, Inc. dated March 10, 1999 "Nucleic Acids Encoding Proteins Used
in Assays for Identifying Taste Modulators" U.C. Case No. 1998-122 

Dear
Sir or Madam: 

        In
accordance with Section 20.1 of the above-referenced Agreement, following is a change to the notice requirements in the case of the Licensee: 

Senomyx, Inc.

11099 North Torrey Pines Road

La Jolla, CA 92037

Telephone: (858) 646-8300

Facsimile: (858) 404-0750

Attention: Corporate Counsel

(With a copy to the President) 

        Please
update your records accordingly. 

Sincerely,

	/s/  TRACY KOHLENBERG      
 Tracy Kohlenberg

Vice President, Corporate Counsel

Phone (858) 646-8306

Fax (858) 404-0750	 	 

30

QuickLinks

Exclusive License and Bailment Agreement between The Regents of the University of California and Ambryx Inc. for "Nucleic Acids Encoding Proteins Used in Assays for Identifying Taste Modulators" UC Case Nos.
1998-122,1998-306,1999-0151 1999-029,11999-168, 1999-203, 1999-204, and 2000-045QuickLinks
 -- Click here to rapidly navigate through this document

Exhibit 10.12  

***Text Omitted and Filed Separately

with the Securities and Exchange Commission.

Confidential Treatment Requested

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

200.83 and 230.406.  

  
 

    COLLABORATIVE RESEARCH    
    
    AND    
    
    LICENSE AGREEMENT    
    
    BETWEEN    
    
    SENOMYX, INC.    
    
    AND    
    
    AURORA BIOSCIENCES CORPORATION    

 
COLLABORATIVE RESEARCH AND LICENSE AGREEMENT  

        THIS AGREEMENT is entered into as of the Effective Date by and between SENOMYX, INC., a Delaware corporation having offices at 11099 North Torrey
Pines Road, La Jolla, California 92037 ("Senomyx"), and AURORA BIOSCIENCES CORPORATION, a Delaware corporation having offices at 11010 Torreyana Road, San Diego, California 92121
("Aurora"). 

RECITALS 

        WHEREAS,
Senomyx conducts research in the field of chemosensation, an objective of which is to discover potential biological targets and develop assays for use in taste, olfaction and
pheromone detection; and 

        WHEREAS,
Aurora develops assays and screening systems and related biologies/chemistries used therein; and 

        WHEREAS,
Senomyx and Aurora are interested in collaborating in the development of assays and screening systems to identify and develop small molecules for use in consumer products and
therapeutics. 

AGREEMENT 

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

1.     DEFINITIONS  

        As used herein, the following terms shall have the following meanings: 

        "Agreement"
means this agreement, together with all exhibits attached hereto, as the same may be amended or supplemented from time to time hereafter by a written agreement duly executed
by authorized representatives of each party. 

        "Assay
Platform" means one or more cell lines or biochemical screens developed under the collaboration by Aurora and/or Senomyx for Targets, as described in a Work Plan. 

        "Aurora
Compound" means any chemical Controlled by Aurora. 

        "Aurora
Know-How" means all Know-How related to the Assay Platforms or Aurora Reporters, which is not covered by the Aurora Patent Rights, but is necessary to
practice the licenses granted under this Agreement, and which is Controlled by Aurora as of the Effective Date or developed by Aurora in the course of performing activities under a Work Plan. 

        "Aurora
Patent Rights" mean all Patent Rights that claim Assay Platforms or Aurora Reporters, which are necessary to practice the licenses granted under this Agreement, and which are
Controlled by Aurora as of the Effective Date or developed by Aurora in the course of performing activities under a Work Plan, but excluding any Joint Patent Rights. The Aurora Patent Rights as of the
Effective Date are set forth on Exhibit 1. 

        "Aurora
Reporter" means any of the reporters described in Exhibit 3. 

        "Aurora
Screening Program" has the meaning set forth in Section 2.4. 

        "Aurora
Technology" means Aurora Patent Rights and Aurora Know-How. 

        "Collaborative
Period" means the period beginning on the Effective Date and ending three (3) years thereafter, unless terminated earlier in accordance with Section 10.2,
10.3 or 10.4. 

        "Compound
Supply" has the meaning set forth in Section 2.4.1. 

2

 

        "Confidential
Information" means all information, Inventions and Know-How disclosed by one party to the other party pursuant to this Agreement, including, without limitation,
information and material (whether or not patentable) regarding technology, products, research, development, manufacturing, marketing, finances, personnel or other business information or objectives
which is designated as confidential in writing by the disclosing party, whether by letter or by the use of an appropriate stamp or legend, prior to or at the time any such material, trade secret or
other information is disclosed by the disclosing party to the other party. Notwithstanding the foregoing to the contrary, Know-How or other information which is orally, electronically or
visually disclosed by a party, or is disclosed in writing without an appropriate letter, stamp or legend, shall constitute Confidential Information of a party if the disclosing party, within thirty
(30) days after such disclosure, delivers to the other party a written document or documents describing the Know-How or other information and referencing the place and date of such
oral, visual, electronic or written disclosure and the names of the persons to whom such disclosure was made. 

        "Control"
or "Controlled" means, with respect to intellectual property, possession by a party, as of the Effective Date or during the Collaborative Period, of the ability to grant a
license or sublicense in accordance with the terms of this Agreement, without violating the terms of any agreement by such party with any Third Party that is in effect on the Effective Date. 

        "Derivative"
means a chemical that has a structure based on data derived from a Hit; provided that such chemical has the same modulating effect as such Hit when tested in the same assay
which was used to identify such Hit. It is understood that Senomyx will test chemicals having a structure based on data derived from a Hit in the same assay which was used to identify such Hit. It is
further understood that a Derivative includes a chemical derived from another Derivative. 

        "Development
Compound" means any Hit or Derivative selected for development as a Product and for which studies necessary for an IND filing (e.g., good laboratory practice safety studies)
have been initiated. 

        "Effective
Date" means the date that this Agreement is signed by the last party to sign below. 

        "Excluded
Compounds" has the meaning set forth in Section 2.4.4. 

        "FDA"
means the United States Food and Drug Administration, or any successor agency having regulatory jurisdiction over the manufacture, distribution and sale of drugs in the United
States or the equivalent governmental agency in any other jurisdiction. 

        "Field I"
means [***]. 

        "Field II"
means [***]. 

        "Full
Time Equivalent" or "FTE" means the full time equivalent of one (1) Aurora scientist, based on a minimum of  [***] hours per year. 

        "GAAP"
means generally accepted accounting principles consistently applied. 

        "Hit"
means any chemical (e.g. a small molecule or protein) identified or discovered in the course of screening such chemical by or for Senomyx using an assay which incorporates or uses
the Aurora Technology or an Aurora Reporter. 

        "IND"
means an Investigational New Drug Application filed with the FDA to commence human clinical testing of a Product. 

        "Internal
Research" means self-funded or Third Party funded biological research conducted by Senomyx at the premises of Senomyx, including the development of screens, the
performance of screening, the cloning of genes and the validation of Targets. Notwithstanding the foregoing, Internal Research does not include use of an Aurora Reporter or the Aurora Technology in a
promoterless, 

3

 

gene
trap, enhancer trap or promoter trap vector for integration into a mammalian genome using non-homologous recombination integration methods (e.g. random integration). 

        "Invention"
means any new and useful process, method, or composition of matter, or improvement thereto, whether or not patentable. 

        "Joint
Invention" has the meaning set forth in Section 4.3.4. 

        "Joint
Patent Rights" means all Patent Rights containing one or more claims to a Joint Invention. 

        "Know-How"
means information and data, whether or not patentable, which is not generally known to the public, including, without limitation, designs, concepts, formulae,
techniques, practices, processes, methods, knowledge, skill, experience, expertise, technical information and data, including pharmacological, toxicological and clinical test data, analytical and
quality control data, patent and legal data or marketing, sales and manufacturing data. 

        "Licensee"
means any Third Party to whom Senomyx or any of its Affiliates grants a license, sublicense or other right to manufacture, use, sell, offer for sale, distribute and/or import
one or more Products or Development Compounds. 

        "Licensor"
means any Third Party that grants Senomyx or any of its Affiliates a license, sublicense or other right to manufacture, use, sell, offer for sale, distribute and/or import one
or more Products or Development Compounds. 

        "Materials"
mean any reagents, promoters, enhancers, vectors, plasmids, genes, polynucleotides, cell lines, proteins and fragments thereof, peptides, antigens, antibodies, antagonists,
agonists, inhibitors, compounds and chemicals. 

        "NDA"
means a New Drug Application or the equivalent, and all supplements pursuant to the requirements of the FDA, including all documents, data and other information concerning Products
which are necessary for FDA approval to market a Product, or the equivalent governmental approval in any other country. 

        "Net
Sales" means, with respect to a Product, the gross amount invoiced by Senomyx, its Affiliates, Licensors, Licensees, and/or permitted sublicensees on sales or other transfers of the
Product, less the following items: 

	(i)
	allowances
(actually paid and limited to rejections, returns, and prompt payment and volume discounts granted to customers of Products, whether in cash or Products in
lieu of cash);

	(ii)
	freight,
transport packing, insurance charges associated with transportation; and

	(iii)
	taxes,
tariff or import/export duties based on sales when included in gross sales, but not value-added taxes or taxes assessed on income derived from such sales. 

        Where
Senomyx distributes to an Affiliate, Licensor, Licensee, a joint venture or permitted sublicensees for end use by such Affiliate, Licensor, Licensee, joint venture or permitted
sublicensees then such distribution will be considered a sale at list price normally charged to independent Third Parties and Aurora will be entitled to collect a royalty on such sale in accordance
with Section 3. Such amounts shall be determined from the books and records of Senomyx, its Affiliates, Licensor, Licensees, joint venture and/or its permitted sublicensees, maintained in
accordance with GAAP. 

        "Patent
Rights" means all rights associated with all United States or foreign (including regional authorities such as the European Patent Office) regular or provisional patents or patent
applications, including any continuation, continuation-in-part, or division thereof or any substitute application therefor or equivalent thereof, and any patent issuing
thereon, including any reissue, reexamination or extension thereof and any confirmation patent or registration patent or patent of additions based on any such patent. 

4

 

        "Phase II
Clinical Trial" means studies in humans of the safety, dose ranging and efficacy of a Product in Field I. 

        "Product"
means any composition of matter which incorporates a Development Compound or is manufactured using the Aurora Technology or an Aurora Reporter. 

        "Royalty
Term" means, in the case of any Product and as to any country, the period of time commencing on the first commercial sale for use or consumption of such Product in such country
and ending upon the date that is ten (10) years after the date of such first commercial sale for use or consumption of such Product in such country. 

        "Senomyx
Compound" means any chemical Controlled by Senomyx. 

        "Senomyx
Know-How" means all Know-How related to the Assay Platforms (including the Targets), which is not covered by the Senomyx Patent Rights, but is necessary
to accomplish the activities to be conducted under this Agreement, and which is Controlled by Senomyx as of the Effective Date or developed by Senomyx in the course of performing activities under a
Work Plan. 

        "Senomyx
Patent Rights" means all Patent Rights which are necessary to accomplish the activities to be conducted under this Agreement, and which are Controlled by Senomyx as of the
Effective Date or developed by Senomyx in the course of performing activities under a Work Plan, but excluding any Joint Patent Rights. The Senomyx Patent Rights as of the Effective Date are set forth
on Exhibit 2. 

        "Senomyx
Technology" means Senomyx Patent Rights and Senomyx Know-How. 

        "Steering
Committee" has the meaning set forth in Section 2.1. 

        "Stock
Purchase Agreement" means the stock purchase agreement set forth on Exhibit 4. 

        "Target"
means a target identified in taste, olfaction and pheromone detection and listed on Exhibit 5, as modified from time to time by the Steering Committee as provided under
Section 2.2. 

        "Term"
has the meaning set forth in Section 10.1. 

        "Third
Party" means any person or entity other than Aurora or Senomyx. 

        "Tracking
Record" has the meaning set forth in Section 5.5.2. 

        "Ultra-High
Throughput Screening System" or "UHTSSTM System" means a technology platform sold by Aurora that has the capability of screening over 100,000 compounds
per day, accessed from a store of compounds, with the additional ability to capture and store large volumes of information. 

        "Validation"
has the meaning set forth in Section 2.3.3. 

        "Validation
Criteria" means the parameters, standard and results established by the Steering Committee for each Assay Platform based on the performance criteria provided in
Exhibit 6. 

        "Voltage
Ion Probe Reader" or "VIPR" means the instrumentation described in Exhibit 7. 

        "Voltage
Ion Probe Reader II" or "VIPR II" means the instrumentation described in Exhibit 7. 

        "Work
Plan" has the meaning set forth in Section 2.3.1. 

5

   2.     COLLABORATION, ASSAY PLATFORM DEVELOPMENT AND SCREENING PROGRAM  

        2.1    Steering Committee.    No later than ten (10) days after the Effective Date, the parties shall establish
a joint steering committee (the "Steering Committee"). The Steering Committee shall prepare and manage each Work Plan. The Steering Committee shall consist of two (2) representatives designated
by Senomyx and two (2) representatives designated by Aurora. Each representative to the Steering Committee will have one vote. The Steering Committee will meet no later than thirty
(30) days after the Effective Date and at least four (4) times per year using mutually agreed upon meeting locations and formats including tele- and video-conferencing. On an
alternating basis, one party shall promptly prepare and deliver to the members of the Steering Committee minutes of such meetings for review and approval of both parties. Aurora and Senomyx shall flip
a coin to determine who shall prepare the minutes for the first Steering Committee meeting. Decisions in the Steering Committee will be made by unanimous vote, at a meeting where all four
(4) voting representatives are present. All unresolved disputes will be settled in accordance with Section 11.13, or as otherwise mutually agreed upon in writing. 

        2.2    Target Selection.    The Steering Committee may, in its sole discretion, add and/or remove Targets from the
list of Targets set forth on Exhibit 5. 

        2.3    Assay Platform Program.    

        2.3.1    Work Plan.    The Steering Committee will prepare and agree
upon a written plan for each Assay Platform (a "Work Plan"), which sets forth the respective responsibilities of the parties for the development of each Assay Platform. Each Work Plan will contain a
description of the specific deliverables and documentation to be produced, any Aurora Reporter to be used, the dates by which such activities are expected to be accomplished by the parties, and
Validation Criteria for each Assay Platform. 

        2.3.2    Assay Platform Development.    Within ten (10) days
following the approval of each Work Plan, Aurora will commence the development of the applicable Assay Platform using2.3.3 reasonable efforts, consistent with commercial business practices, and using
the resources provided under Section 3.1. All work under a Work Plan shall be performed in accordance with the provisions of this Agreement. 

        2.3.3    Validation of Assay Platforms.    When Aurora completes the
development of an Assay Platform, a written report describing the Assay Platform and the data demonstrating compliance with the Work Plan, including the Validation Criteria, shall be provided by
Aurora to the Steering Committee. The Steering Committee will either approve the report and accept each Assay Platform according to the Validation Criteria ("Validation") or decide on additional work,
if any, necessary for Validation. Within thirty (30) days of such Validation of an Assay Platform developed by Aurora, and as requested in writing by Senomyx, Aurora shall transfer such Assay
Platform to Senomyx. 

        2.4    Screening by Aurora.    During the Collaborative Period and for  [***] thereafter, Senomyx may purchase from Aurora contract screening pursuant to Section 3.3. Aurora will screen Aurora
Compounds or Senomyx Compounds as determined by the Steering Committee and provide re-tests of putative Hits, and determination of crude EC50s or IC50s as determined by the Steering
Committee (an "Aurora Screening Program"). 

        2.4.1    Senomyx Compounds.    Senomyx shall, at its expense, supply
Aurora with Senomyx Compounds for each Aurora Screening Program. Any Senomyx Compounds supplied by Senomyx for use in an Aurora Screening Program will be  [***], or another format mutually agreed to in
writing by the parties (the "Compound Supply"). The quantities needed for each
screen will be specified in writing in the Work Plan. Aurora agrees not to transfer the Compound Supply to any Third Party or to use it for any purpose other than developing or screening Assay
Platforms 

6

 

without
Senomyx's prior written consent. Aurora will return to Senomyx any unused Compound Supply. 

        2.4.2    Aurora Compound Supply.    Aurora will make available to
Senomyx up to five hundred thousand (500,000) Aurora Compounds for use in Aurora Screening Programs. The Steering Committee will select, on an entire microtiter plate-by-entire
microtiter plate basis, Aurora Compounds for use in an Aurora Screening Program. Information concerning Aurora Compounds shall be owned exclusively by Aurora and shall be treated as Confidential
Information of Aurora hereunder. 

        2.4.3    Screening Program Reports.    During the course of an Aurora
Screening Program, individuals from Senomyx and Aurora, appointed by the Steering Committee, will discuss and review monthly, if not more frequently, the progress and any issues relating to such
Aurora Screening Program. During the Collaboration Period, the Steering Committee will review data and prepare summary quarterly reports for each Aurora Screening Program in progress at that time.
Each progress report shall provide a written update of work performed, any Hits identified, and all available supporting electronic data. 

        2.4.4    Designation of Excluded Compounds.    At least thirty
(30) days prior to commencement of any Aurora Screening Program, Senomyx shall submit to Aurora in writing a list of the Excluded Compounds designated for a particular screen to be used as a
positive control in such screens, which list is subject to the approval of the Steering Committee, which approval shall not be unreasonably withheld. 

        2.4.5    Ownership of Results and Data.    All results and data
generated from screening the Compound Supply by or for Senomyx under this Agreement shall be owned exclusively by Senomyx and shall be treated as Senomyx Confidential Information hereunder. Aurora
will not provide to a Third Party the Materials provided by Senomyx to Aurora hereunder. 

        2.5    Development of Products.    Senomyx will be responsible, at Senomyx's expense, for all formulation and
regulatory approval of Products arising out of this Agreement. Senomyx shall use reasonable efforts, consistent with commercial business practices, to develop any Product, to perform all regulatory
activities relating to the manufacture, use or sale of any Product, and to commercialize and market any Product in any country. All regulatory filings made or filed by Senomyx for any Development
Compound or Product shall be owned solely by Senomyx. At Senomyx's request and expense, Aurora shall cooperate to the extent reasonably necessary to permit Senomyx to perform the foregoing activities. 

        2.6    Supply of VIPR and Option to Upgrade to VIPR II.    Within thirty (30) days after the Effective
Date, Aurora will deliver a VIPR to the Senomyx facility in La Jolla, California, or another Senomyx location mutually agreed upon by the parties, and within thirty (30) days of receipt of such
VIPR, Aurora shall install and commission it to demonstrate functionality as to the instrumentation specifications listed in Exhibit 7. On or before  [***], Senomyx shall have the option to exchange
the VIPR for a VIPR II by providing written notice to Aurora and making
the additional payment to Aurora in accordance with Section 3.9. Within [***] of receipt of such notice, Aurora will
deliver a VIPR II to the Senomyx facility in La Jolla, California, or another Senomyx location mutually agreed by the parties, and within  [***] of receipt of such VIPR II, Aurora shall
(i) install and commission the VIPR II to demonstrate
functionality as to the instrumentation specification listed in Exhibit 7, and (ii) return the VIPR to Aurora. Subject to payment of the warranty fee set forth in Section 3.9,
Aurora will provide to Senomyx Aurora's then-current standard warranty as described on Exhibit 7 for such VIPR or VIPR II for a period of  [***] [***] from the date of delivery of the VIPR,
provided that such warranty may be extended as
provided for in Section 3.9. 

7

 

3.     FINANCIAL TERMS  

        3.1    Annual Research Support.    Each year during the Collaborative Period, Senomyx shall pay Aurora for 
[***] FTEs at an annual rate of [***] per FTE. These
payments shall be made in advance on an equal quarterly basis. The first payment shall be made within ten (10) business days following the Effective Date. These payments are inclusive of
overhead, labor, and supplies; provided, however, that in any given year, a portion of these payments may be allocated to cover the cost of high
throughput screening of Senomyx Compounds by Aurora [***] with a commensurate reduction in the allocation of payments for FTEs.
These payments shall not cover the cost associated with providing the Compound Supply to Aurora or other unanticipated materials, as agreed to by the parties in advance in writing, or the costs of
high throughput screening for over [***]. Additional funding, if any, shall be proposed by the Steering Committee and agreed to
by the parties in advance in writing. 

        3.2    Validation Payments.    Senomyx will pay to Aurora the following non-creditable,
non-refundable milestone payments within thirty (30) days following achievement of the following milestone events: 

	Milestone
 
	 	Payment

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

        3.3    Screening by Aurora.    Aurora will screen Aurora Compounds and Senomyx Compounds under each Aurora Screening
Program in accordance with Section 2.4. Senomyx will pay Aurora for such screening within thirty (30) days after the completion of such screening. For screening conducted by Aurora using
its ultra-high throughput screening system, Senomyx will pay Aurora [***], with  [***]. For screening conducted by Aurora using its VIPR, Senomyx will pay
Aurora  [***], with [***]. The parties will negotiate in good
faith the payments to be made by Senomyx to Aurora for Aurora Compounds which may be licensed to Senomyx hereunder, including, without limitation,  [***]. 

        3.4    Milestones and Royalties.    

        3.4.1    Milestone Payments for Field I.    Senomyx will pay to
Aurora the following non-creditable, non-refundable milestone payments for each Product in Field I within thirty (30) days following achievement of the following
milestone events: 

	Milestone
 
	 	Payment

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

        The
foregoing milestones apply only to the first chemical developed for each Product. Under no circumstances shall Senomyx be obligated to pay any of the foregoing payments to Aurora
more than once for each Product. 

        3.4.2    Royalty on Net Sales.    Senomyx will pay to Aurora a royalty
equal to [***] of Net Sales for each Product in Field I during the Royalty Term. 

        3.4.3    Trade Secret Milestones and Royalty.    The parties
acknowledge that the principal value contributed by Aurora under this Agreement is the enhanced probability of identifying leads for Products, such as consumer products enhancing taste and olfaction
(or other products having commercial value), and the potential to generate multiple leads, either or both of which the parties reasonably believe will lessen the time required to bring products to
market and increase the efficiency of discovery and development processes and technologies. Additionally, the parties 

8

 

acknowledge
that Aurora may not Control Patent Rights covering the manufacture, sale, use or importation of a particular Development Compound or Product. Senomyx acknowledges and agrees that the value
it receives hereunder is in the access and use of a Assay Platform or Aurora Reporter. Accordingly, Senomyx agrees to pay [***]. 

        3.5    Supply of Aurora Reporters.    Within  [***] of a written
purchase order from Senomyx, Aurora will supply to Senomyx Materials pertaining to the Aurora Reporters.
Senomyx will be charged for all Materials so delivered at Aurora's then-current list price less  [***]; provided,
however, that
Senomyx will purchase [***], as defined on Exhibit 3, on or before  [***], at a price of  [***]. Senomyx will pay for all Materials so ordered within thirty (30) days after delivery of such Materials to Senomyx. 

        3.6    Aurora Stock Purchase.    Within ten (10) days following the Effective Date, Aurora will purchase
four million eight hundred thousand dollars ($4,800,000) of Senomyx Series C preferred stock under terms and conditions consistent with its most recent round of financing and pursuant to
the Stock Purchase Agreement at a price of four dollars, eighty cents ($4.80) per share. 

        3.7    License Fee.    In partial consideration for the licenses granted under Section 4.1, Senomyx will pay to
Aurora a non-creditable, non-refundable license fee of [***] within ten (10) days following the
Effective Date. 

        3.8    Purchase of VIPR and upgrade to VIPR II.    In consideration for the VIPR, Senomyx shall pay to Aurora
 [***] payable in two equal installments:
(i) [***] within  [***] after delivery of such VIPR to Senomyx, and
(ii) [***] within  [***] after the commissioning of such VIPR at Senomyx. If Senomyx exercises its
option to exchange the VIPR for a
VIPR II, then Senomyx will pay to Aurora an additional payment of [***] within  [***] after the commissioning of such VIPR II at Senomyx. In
consideration for the  [***] VIPR warranty provided under Section 2.6, Senomyx shall pay to Aurora a warranty fee of  [***] within [***] after the first anniversary of the
date of delivery of the VIPR to Senomyx. Senomyx may, at its sole discretion, extend the warranty on the VIPR or the VIPR II beyond
such [***] period for [***] per year payable on  [***] thereafter. 

4.     LICENSES; INTELLECTUAL PROPERTY RIGHTS  

        4.1    Grant of Rights from Aurora to Senomyx.    

        4.1.1    Non-Exclusive License to use Aurora Technology in Assay
Platforms.    Subject to the terms and conditions of this Agreement, Aurora hereby grants to Senomyx a non-transferable, except as provided in
Section 11.1, non-exclusive, worldwide license, without the right to grant sublicenses, under the Aurora Technology to use the Assay Platforms solely to conduct Internal Research to
develop screens for the Targets and to screen the Targets (i) to identify, discover and profile compounds, and (ii) to make, have made, use, sell, offer for sale and import compounds or
Products identified or discovered with activity against such Targets in the Assay Platforms. 

        4.1.2    Exclusive License to use Aurora Technology in Assay Platforms in
Field II.    Subject to the terms and conditions of this Agreement, Aurora hereby grants to Senomyx a non-transferable, except as provided in
Section 11.1, exclusive, worldwide license, without the right to grant sublicenses, under the Aurora Technology to use the Assay Platforms solely to conduct Internal Research to develop screens
for the Targets and to screen the Targets (i) to identify, discover and profile compounds in Field II, and (ii) to make, have made, use, sell, offer for sale and import compounds
or Products identified or discovered with activity against such Targets in the Assay Platforms in Field II. 

        4.1.3    Non-Exclusive License to use Aurora Reporters for Internal Research of
Targets.    Subject to the terms and conditions of this Agreement, Aurora hereby grants to Senomyx a non-transferable, except as provided in
Section 11.1, non-exclusive, worldwide license, without the right to grant sublicenses, under the Aurora Technology to use the Aurora Reporters solely to 

9

 

conduct
Internal Research on the Targets (i) to identify, discover and profile compounds, and (ii) to make, have made, use, sell, offer for sale and import compounds or Products
identified or discovered with activity against such Targets. 

        4.1.4    Exclusive License to Use Aurora Reporters for Internal Research of Targets in
Field II.    Subject to the terms and conditions of this Agreement, Aurora hereby grants to Senomyx a non-transferable, except as provided in
Section 11.1, exclusive, worldwide license, without the right to grant sublicenses, under the Aurora Technology to use the Aurora Reporters solely to conduct Internal Research on the Targets
(i) to identify, discover and profile compounds in Field II, and (ii) to make, have made, use, sell, offer for sale and import compounds or Products identified or discovered with
activity against such Targets in Field II. 

        4.1.5    Non-Exclusive License to use VIPR and VIPR II for Internal Research of
Targets.    Subject to the terms and conditions of this Agreement, including the payment obligations set forth in Section 3.9, Aurora hereby grants to Senomyx
a non-transferable, except as provided in Section 11.1, non-exclusive, worldwide license, without the right to grant sublicenses, under the Aurora Technology to use the
VIPR or VIPR II, if applicable, for Internal Research related to the Targets which shall commence upon the commissioning of the VIPR at Senomyx. 

        4.1.6    License Restrictions.    Except as expressly licensed in this
Section 4.1, Senomyx covenants not to use the Assay Platforms, Aurora Technology or Aurora Reporters for any purpose. Aurora will permit Senomyx to transfer Materials containing Aurora
Reporters or Aurora Technology to a Third Party under terms mutually agreed upon in writing by Aurora and Senomyx prior to such transfer; provided,
however, that such Third Party is a bona fide licensee of Aurora under the Aurora Patent Rights. 

        4.1.7    Exclusive License Exceptions.    

        4.1.7.1    Notwithstanding
anything contained herein to the contrary, the exclusive licenses granted by Aurora to Senomyx in this Section 4 are subject to all previous
licenses granted by Aurora under the Aurora Technology, which list of licensees, as of the Effective Date, includes, but is not limited to,  [***]. Additionally, Aurora will not be precluded by the grant
of such exclusive licenses from licensing the Aurora Technology
in Field II for use with the Targets to future licensees, but only when such license is granted in connection with the purchase of a UHTSSTM System from Aurora. Aurora will notify
Senomyx in writing if and when such a license is granted. 

        4.1.7.2    Notwithstanding
the exclusive licenses granted by Aurora to Senomyx in this Section 4, Aurora will not be precluded from selling and/or providing Aurora
Reporters to academic, government and other not-for-profit organizations. Aurora may grant licenses under the Aurora Technology to such not-for-profit
organizations to conduct research using the Aurora Reporters through material transfer agreements, shrink-wrap licenses or otherwise. 

        4.2    Grant of Rights from Senomyx to Aurora.    Senomyx hereby grants to Aurora a fully-paid,
non-transferable, except as provided in Section 11.1, non-exclusive, worldwide license, without the right to grant sublicenses, to use the
Senomyx Technology solely to perform its obligations under this Agreement. Except as expressly licensed in this Section 4.2, Aurora covenants not to use the Senomyx Compounds or the Senomyx
Technology provided by Senomyx either for Internal Research or with Third Parties. 

        4.3    Ownership of Intellectual Property.    

        4.3.1    Transfer of Rights.    All rights not expressly licensed or
assigned herein by Senomyx are retained by Senomyx. All rights not expressly licensed or assigned herein by Aurora are retained by Aurora. Except as otherwise expressly provided in this Agreement,
nothing in this 

10

 

Agreement
is intended to convey or transfer ownership by either party to the other party of any right, title or interest in any Confidential Information, Patent Rights or Know-How
Controlled by a party. Except as expressly provided for in this Agreement, nothing in this Agreement shall be construed as a license or sublicense by either party to the other party of any rights in
any Patent Rights or Know-How Controlled by a party. 

        4.3.2    Senomyx Inventions.    Senomyx shall own all Inventions and
other Know-How made solely by its employees and agents, and all Patent Rights claiming such Inventions and other Know-How. Senomyx hereby irrevocably assigns to Aurora all
right, title and interest in and to any such Inventions and other Know-How that consist of improvements to an Aurora Reporter, the Aurora Technology or the Aurora Compounds, and all Patent
Rights claiming such Inventions and other Know-How, subject to the licenses granted to Senomyx pursuant to Section 4.1. In the event that Senomyx is legally unable to assign such
rights to Aurora, then Senomyx agrees either to waive the enforcement of such rights against Aurora and any sublicensees and assignees, or to grant Aurora an exclusive, irrevocable, perpetual,
worldwide, fully-paid license, with right to sublicense through multiple tiers of sublicense, to such rights. 

        4.3.3    Aurora Inventions.    Aurora shall own all Inventions and
other Know-How made solely by its employees and agents, and all Patent Rights claiming such Inventions and other Know-How. Aurora hereby irrevocably assigns to Senomyx all
right, title and interest in and to any such Inventions and other Know-How that consist of improvements to the Senomyx Technology or the Senomyx Compounds, and all Patent Rights claiming
such Inventions and other Know-How, subject to the license granted to Aurora pursuant to Section 4.2. In the event that Aurora is legally unable to assign such rights to Senomyx,
then Aurora agrees either to waive the enforcement of such rights against Senomyx and any sublicensees and assignees, or to grant Senomyx an exclusive, irrevocable, perpetual, worldwide,
fully-paid license, with right to sublicense through multiple tiers of sublicense, to such rights. 

        4.3.4    Joint Inventions.    During the Collaboration Period, all
Inventions conceived jointly by employees or agents of Senomyx and employees or agents of Aurora (the "Joint Inventions") and all Joint Patent
Rights shall be owned jointly by Aurora and Senomyx. Aurora hereby assigns to Senomyx all right, title and interest in and to any Joint Inventions that consist of improvements to the Senomyx
Technology or the Senomyx Compounds, and all Joint Patent Rights claiming such Joint Inventions, subject to the license granted to Aurora pursuant to Section 4.2. In the event that Aurora is
legally unable to assign such rights to Senomyx, then Aurora agrees either to waive the enforcement of such rights against Senomyx and any sublicensees and assignees, or to grant Senomyx an exclusive,
irrevocable, perpetual, worldwide, fully-paid license, with right to sublicense through multiple tiers of sublicense, to such rights. Senomyx hereby irrevocably assigns to Aurora all
right, title and interest in and to any Joint Inventions that consist of improvements to the Aurora Technology, the Aurora Reporters or the Aurora Compounds, and all Joint Patent Rights claiming such
Joint Inventions, subject to the licenses granted to Senomyx pursuant to Section 4.1. In the event that Senomyx is legally unable to assign such rights to Aurora, then Senomyx agrees either to
waive the enforcement of such rights against Aurora and any sublicensees and assignees, or to grant Aurora an exclusive, irrevocable, perpetual, worldwide, fully-paid license, with right
to sublicense through multiple tiers of sublicense, to such rights. 

        4.3.5    Other Inventions.    Any Inventions not included in
Sections 4.3.2, 4.3.3 or 4.3.4 shall be owned by their inventors. 

        4.3.6    Inventorship and Assignment.    Inventorship of patentable
inventions shall be determined by United States patent law. Senomyx and Aurora agree to execute all documentation necessary to perfect all assignments of Inventions, Know-How and Patent
Rights contemplated herein. 

11

   5.     PAYMENTS OF ROYALTIES, ACCOUNTING FOR ROYALTIES AND RECORDS  

        5.1    Payment and Reporting.    The royalties due under Section 3.4.2 shall be paid within thirty
(30) days after the end of each calendar quarter period in which such royalties are earned during the Royalty Term for each Product. With each such quarterly payment, Senomyx shall furnish to
Aurora a royalty statement in sufficient detail to permit confirmation of the accuracy of the royalty payment made, which sets forth on a country-by-country basis the relevant
sales information, including the total number of units of each such Product sold, Net Sales, the royalties payable in United States dollars, the method used to calculate the royalty, the exchange rate
used and other information employed to calculate Net Sales for such Product. 

        5.2    Currency of Payment.    All payments to be made under this Agreement, including the royalties payable to Aurora
by Senomyx, shall be paid in United States dollars by wire transfer or other mutually acceptable means to a bank account designated by Aurora. With respect to each quarter, for countries other than
the United States, whenever conversion of payments form any foreign currency shall be required, such conversion shall be made at the rate of exchange reported in The Wall
Street Journal on the last business day of the applicable reporting period. 

        5.3    Taxes Withheld.    Any income or other tax that Senomyx or any of its Affiliates, Licensees or Licensees is
required by a government agency to withhold and pay on behalf of Aurora with respect to the royalties payable under this Agreement shall be deducted from and offset against such royalties prior to
remittance to Aurora; provided, however, that in regard to any tax so deducted, Senomyx shall give or cause to be given to Aurora such assistance as may
reasonably be necessary to enable Aurora to claim exemption therefrom or credit therefor, and in each case shall promptly furnish to Aurora proper evidence of the taxes paid on Aurora's behalf. 

        5.4    Records.    

        5.4.1    Net Sales and Royalty Calculations.    During the Royalty
Term and for a period of three (3) years thereafter, Senomyx shall keep complete and accurate records of sales and all other information necessary to calculate Net Sales of each Product in
sufficient detail to allow the accrued royalties to be determined accurately in accordance with GAAP. Aurora, with reasonable written notice to Senomyx,
shall have the right to cause a nationally recognized independent, certified public accountant to audit such records at the place or places of business where such records are customarily kept in order
to verify the accuracy of the reports of Net Sales and royalty payments made by Senomyx hereunder. Such accountant shall execute a confidentiality agreement prior to entering Senomyx's premises,
obligating such accountant to keep all information disclosed to it confidential and shall only be permitted to disclose to Aurora the extent of any discrepancy between royalty payments made by Senomyx
hereunder and the actual royalty required to be so paid. Aurora shall bear the full cost of such audit, unless such audit discloses a variance of more than five percent (5%) from the amount of the
royalties due under this Agreement, in which event, Senomyx shall bear the full cost of such audit. Aurora agrees not to disclose Confidential Information concerning royalty payments and reports, and
all information learned in the course of any audit or inspection, except to the extent necessary for Aurora to reveal such information in order to enforce its rights under this Agreement or if
disclosure is required by law. 

        5.4.2    Tracking Records.    The chemicals, screens and Targets
tested using an Assay Platform, Aurora Technology or Aurora Reporter will be recorded and stored by Senomyx using its customary means in a computer searchable database on a storage device. The
information stored will include the Target, screen type, the concentration, structure and activity of the chemical tested, and date of testing in a format mutually agreed upon in writing by the
parties. Records of any Hits, Derivatives, Aurora Compounds, Senomyx Compounds or other chemicals subjected to additional screening will be stored by Senomyx in a computer searchable file or database
that will be separate from other Senomyx data not related to an Assay Platform, Aurora Technology or 

12

 

Aurora
Reporter. Upon written request by Aurora, Senomyx will create an annual written report of Hits, Derivatives, Aurora Compounds, Senomyx Compounds or other chemicals subjected to additional
screening, in vivo testing, computer modeling, or medicinal chemistry to be accessible only by an independent consultant. All the records described in
this Section 5.4.2 are collectively referred to as tracking records (the "Tracking Records"). Senomyx will permit a Third Party appointed by Aurora and reasonably agreed to by Senomyx, and
subject to a confidential relationship with Senomyx, to inspect the Tracking Records once per year or upon reasonable request by Aurora for the sole purpose of determining the attainment of a
milestone or royalty under Section 3.4. The Tracking Records shall be securely retained for no less than five (5) years from the last use of an Assay Platform, Aurora Technology or
Aurora Reporter. When a compound, such as a Hit, Derivative or Development Compound, is selected for a good laboratory practice safety or toxicology study, Senomyx will disclose the compound to Aurora
under strict confidentiality. Upon reasonable request by Aurora, and at a minimum once per year, Senomyx will provide Aurora with a summary of the status of Development Compounds and Products that may
be used to calculate royalties or milestones hereunder. 

6.     INTELLECTUAL PROPERTY ENFORCEMENT AND DEFENSE OF CLAIMS  

        6.1    Intellectual Property Enforcement.    Each party shall have the right, but not the obligation, to bring
proceedings against any Third Party for the inappropriate use, including patent infringement, of Patent Rights solely Controlled by it, at its own risk and expense. If either party brings such an
action, such party shall be entitled to control such action, hire and retain counsel, make decisions, settle on any terms, and retain any and all awards or damages obtained in any such proceeding. At
the request and expense of either party, the other party shall give the requesting party all reasonable assistance required to file and conduct any such proceeding. 

        6.2    Defense of Infringement Claims for Aurora Technology.    Senomyx will cooperate with Aurora, at Aurora's
expense, in the defense of any suit, action or proceeding against Aurora alleging the infringement of the intellectual property rights of a Third Party by reason of Aurora's use of any Aurora
Technology or any Aurora Reporter in performing its obligations under this Agreement. Aurora shall notify Senomyx promptly in writing of the commencement of any such suit, action, proceeding or claim
of infringement. Senomyx shall give to Aurora full and sole authority, information and assistance necessary to defend, hire counsel, make decisions or settle on any terms any such suit, action or
proceeding, and Senomyx shall execute all documents, provide pertinent records, and take all other actions, including requiring persons within its control to give testimony, which may be reasonably
required in connection with the defense or settlement of such litigation. 

        6.3    Defense of Infringement Claims for Products.    Aurora will cooperate with Senomyx, at Senomyx's expense, in
the defense of any suit, action or proceeding against Senomyx and Senomyx's Affiliates or Aurora alleging the infringement of the intellectual property rights of a Third Party by reason of the
manufacture, use or sale of any Product. Each party shall give the other party prompt written notice of the commencement of any such suit, action, proceeding or claim of infringement. At the request
and expense of Senomyx, Aurora shall give Senomyx full and sole authority, information and assistance necessary to defend, hire counsel, make decisions or settle on any terms any such suit, action or
proceeding and Aurora shall execute all documents, provide pertinent records, and take all other actions, including requiring persons within its control to give testimony, which may be reasonably
required in connection with the defense or settlement of such litigation. 

7.     TREATMENT OF CONFIDENTIAL INFORMATION; PUBLICITY  

        7.1    Confidentiality.    Subject to the terms and conditions of this Agreement, Senomyx and Aurora each agree that,
during the Term and for a period of [***] thereafter, it will keep confidential, and will cause its Affiliates to keep
confidential, all Confidential Information that is disclosed to it or to any of 

13

 

its
Affiliates by the other party. Neither Senomyx nor Aurora nor any of their respective Affiliates shall use the other party's Confidential Information, except as expressly permitted in this
Agreement. 

        7.1.1    Disclosure to Related Parties.    Senomyx and Aurora each
agree that any disclosure of the other party's Confidential Information to any officer, employee, contractor, consultant, sublicensee or agent of the other party or to any of its Affiliates shall be
made only if and to the extent necessary to carry out its responsibilities under this Agreement and to exercise the rights granted to it hereunder, shall be limited to the extent consistent with such
responsibilities and rights, and shall be provided only to such persons or entities who are under an obligation of confidentiality no less stringent than as set forth herein. Each party shall use
reasonable efforts to take such action, and to cause its Affiliates to take such action, to preserve the confidentiality of each other's Confidential Information, which shall be the same efforts as it
would customarily take to preserve the confidentiality of its own Confidential Information. Each party shall promptly notify the other party upon discovery of any unauthorized use or disclosure of the
other party's Confidential Information. 

        7.1.2    Return of Confidential Material Upon Termination.    Upon
termination of this Agreement, each party, upon the other party's request, will return or destroy all Confidential Information received from the other party pursuant to this Agreement, including all
copies and extracts of documents, within thirty (30) days of the request of the other party; provided, however, one copy of such Confidential
Information may be retained for legal purposes. 

        7.1.3    Exceptions to Confidential Information.    Confidential
Information shall not include any information, which the receiving party can prove by competent written evidence: 

           i)  is
now, or hereafter becomes, through no act or failure to act on the part of the receiving party, generally known or available; 

          ii)  is
known by the receiving party at the time of receiving such information, as evidenced by its records; 

         iii)  is
hereafter furnished to the receiving party without restriction as to disclosure or use by a Third Party lawfully entitled to furnish such information; 

          iv)  is
independently developed by the employees, agents or contractors of the receiving party without the aid, application or use of the disclosing party's Confidential
Information; 

          vi)  is
the subject of a written permission to disclose provided by the disclosing party; or 

        vii)  is
provided by the disclosing party to a Third Party without restriction as to confidentiality. 

        A
party may also disclose Confidential Information of the other party where required to do so by law or legal process; provided, however,
that, in such event, the party required to disclose such information shall give advance written notice of such disclosure to the other party and will cooperate with the other party's efforts to seek,
at the request and expense of the other party, all confidential treatment and protection for such disclosure as is permitted by applicable law. 

        7.1.4    Confidential Financial Information.    The parties agree that
the material financial terms of this Agreement will be considered Confidential Information of both parties. Notwithstanding the foregoing, either party may disclose such terms in legal proceedings or
as are required to be disclosed in its financial statements, by law, or under an obligation of confidentiality to bona fide potential sublicensees. Either party shall have the further right to
disclose the material financial terms of this Agreement under an obligation of confidentiality to any potential acquirer, merger partner, bank, venture capital firm, or other financial institution to
obtain financing. Notwithstanding the foregoing, the parties shall agree upon a press release to announce the 

14

 

execution
of this Agreement. Thereafter, Aurora and Senomyx may each disclose to Third Parties the information contained in such press release without the need for further approval by the other party. 

        7.1.5    Confidential Research Information.    The parties agree that
information developed using an Assay Platform will be considered Confidential Information of both parties and shall be subject to the confidentiality requirements of this Article 7.
Notwithstanding the foregoing, either party may disclose and use information developed using an Assay Platform that is not specific to a Target proposed by Senomyx for screen development and screening
under an obligation of confidentiality to bona fide sublicensees. 

        7.2    Permitted Use and Disclosures.    Each party may use or disclose Confidential Information disclosed to it by
the other party to the extent such information is included in the Aurora Technology, Senomyx Technology or Joint Patent Rights, and to the extent such use or disclosure is reasonably necessary and
permitted in the exercise of the rights granted hereunder in filing or prosecuting patent applications, prosecuting or defending litigation, complying with applicable governmental regulations or court
orders
or otherwise submitting information to tax or other governmental authorities, conducting clinical trials, or making a permitted sublicense or otherwise exercising rights expressly granted to the other
party pursuant to the terms of this Agreement; provided, however, that if a party is required to make any such disclosure of the other party's
Confidential Information, other than pursuant to a confidentiality agreement, it will give reasonable advance notice of such disclosure to the other party where reasonably possible and, save to the
extent inappropriate in the case of patent applications, will use its reasonable efforts to secure confidential treatment of such Confidential Information in consultation with the other party prior to
such disclosure (whether through protective orders or otherwise) and disclose only the minimum necessary to comply with such requirements. 

        7.3    Use of Data for Promotional Purposes.    Either party may (i) make public statements regarding Products
by announcing the achievement of milestones and fees therefor, following consultation with the other party and with the written consent of the other party to the form and content of the public
statement, and (ii) without the prior consent of the other party, make public statements regarding the overall success rate(s) achieved by and/or for its customers with the use of Aurora
Technology or Senomyx Technology; provided, however, that it may not disclose any chemical structures, screens or the other party's identity. 

        7.4    Publication of Results.    Subject to this Article 7, results and data obtained by either party in the
course of the collaboration, including, but not limited to, the execution of a Work Plan or an Aurora Screening Program pursuant to this Agreement, may be submitted for publication by Senomyx in
accordance with Senomyx's customary practices; provided, however, that Senomyx shall credit Aurora in such publication as the developer and/or provider
of the technology that produced, in part, the published results or data. Senomyx shall send a copy of the proposed publication to Aurora at least forty-five (45) days prior to
submitting the paper to a publisher and shall allow Aurora thirty (30) days from the date of receipt in which to determine whether such publication contains subject matter for which patent
protection should be sought prior to disclosure, or otherwise contains Aurora Confidential Information. Senomyx shall comply with Aurora's request to delete references to Aurora's Confidential
Information in any such paper and agrees to withhold publication of the same for an additional one hundred and eighty (180) days to permit Aurora to obtain patent protection, if Aurora deems it
necessary, in accordance with the terms of this Agreement. If no answer is received from Aurora within thirty (30) days of receipt of the proposed publication, Senomyx shall be free to submit
such proposed publication. 

        7.5    Publicity.    Except as required by law and as provided in this Article 7, neither party may make any
public announcement or otherwise disclose the terms of this Agreement without the prior written consent of the other party, which consent shall not be unreasonably withheld. 

15

   8.     PATENT PROSECUTION AND MAINTENANCE  

        The control and expense of the filing, prosecution (including an opposition or interference) and maintenance of Patent Rights or other intellectual property
rights claiming Inventions made solely by a party will be the sole responsibility of the party that made such Invention, and the party not filing the patent application will cooperate in such filing,
prosecution and maintenance. Senomyx and Aurora will determine by mutual agreement which party will be responsible for, and will cooperate in, the filing, prosecution and maintenance of Joint Patent
Rights and will share equally in the expenses incurred with respect thereto. 

9.     WARRANTIES AND INDEMNIFICATION  

        9.1    Mutual Representations and Warranties.    Each party hereby makes the following representations and warranties
to the other party: 

        9.1.1    Corporate Power.    Each party hereby represents and warrants
that such party (a) is duly organized and validly existing under the laws of the state of its incorporation and has full corporate power and authority to enter into this Agreement and to carry
out the provisions hereof; (b) has the requisite power and authority and the legal right to own and operate its property and assets, to lease the property and assets it operates under lease,
and to carry on its business as it is now being conducted; and (c) is in compliance with all requirements of applicable law, except to the extent that any noncompliance would not have a
material adverse effect on its ability to perform its obligations under the Agreement. 

        9.1.2    Due Authorization.    Each party hereby represents and
warrants that such party (a) has the requisite power and authority and the legal right to enter into the Agreement and to perform its obligations hereunder; and (b) has taken all
necessary action on its part to authorize the execution and delivery of the Agreement and to authorize the performance of its obligations hereunder and the grant of rights extended by it hereunder. 

        9.1.3    Binding Agreement.    Each party hereby represents and
warrants to the other that (a) this Agreement has been duly executed and delivered on its behalf and is a legal and valid obligation binding upon it and is enforceable in accordance with its
terms; (b) the execution, delivery and performance of this Agreement by such party does not conflict with any agreement, instrument or understanding, oral or written, to which it is a party or
by which it may be bound, nor violate any law or regulation of any court, governmental body or administrative or other agency having authority over it; and (c) all necessary consents, approvals
and authorizations of all governmental authorities and other persons required to be obtained by it in connection with the Agreement have been obtained. 

        9.2    Warranties Regarding Senomyx Technology.    Senomyx represents and warrants to Aurora as of the Effective Date
the following: 

        9.2.1    To the best knowledge of Senomyx as of the Effective Date: (a) Senomyx has the lawful right to license the
Senomyx Technology to Aurora in accordance with the terms of this Agreement; (b) the Senomyx Patent Rights were properly filed and prosecuted; and (c) no Third Party suit exists relating
to the Senomyx Patent Rights. 

        9.2.2    EXCEPT AS EXPRESSLY SET FORTH HEREIN, SENOMYX (INCLUDING ITS OFFICERS, EMPLOYEES AND AGENTS) EXPRESSLY DISCLAIMS ANY
REPRESENTATIONS AND WARRANTIES, WHETHER EXPRESS OR IMPLIED, RELATING TO SENOMYX TECHNOLOGY. SENOMYX FURTHER DISCLAIMS ANY EXPRESS OR IMPLIED WARRANTY (a) OF MERCHANTABILITY OR FITNESS FOR A
PARTICULAR PURPOSE OF SENOMYX TECHNOLOGY; (b) THAT THE PRACTICE OF SENOMYX TECHNOLOGY WILL NOT INFRINGE A PATENT, COPYRIGHT, 

16

 

TRADEMARK
OR OTHER RIGHT OF A THIRD PARTY; AND (c) REGARDING THE PATENTABILITY OF ANY SENOMYX TECHNOLOGY, INCLUDING SENOMYX TECHNOLOGY CLAIMED IN PATENT APPLICATIONS AS PART OF SENOMYX PATENT
RIGHTS. 

        9.3    Senomyx Indemnification.    

        9.3.1    Senomyx hereby agrees to indemnify, defend and hold Aurora, and its respective officers, directors, employees and
agents (collectively, the "Aurora Indemnitees") harmless from and against all damages, losses, liabilities, expenses and costs or other amounts payable to a Third Party, including reasonable
attorneys' fees and costs of litigation, resulting from a claim, demand, action, suit or other proceeding brought or threatened by a Third Party against an Aurora Indemnitee based on (a) any
development, manufacture, use, handling, storage, sale or other disposition of a Development Compound or Product by or through Senomyx or its Affiliates, Licensees or permitted sublicensees,
(b) the practice by
Senomyx of any license granted hereunder, or (c) infringement by Aurora of Patent Rights of any Third Party as a result of using a Target in an Assay Platform, or Compound Supply provided under
this Agreement by Senomyx; except to the extent such damages or other amounts payable are attributable to: (i) a violation of any contractual or fiduciary duty owed by any Aurora Indemnitee to
a Third Party, (ii) any material breach of this Agreement by an Aurora Indemnitee, or (iii) trade secret misappropriation or patent infringement by Aurora of screen components (other
than a Target or Compound Supply) that are Controlled by a Third Party or are covered by a Third Party's Patent Rights. IN NO EVENT SHALL SENOMYX BE LIABLE FOR ANY INCIDENTAL OR CONSEQUENTIAL DAMAGES
SUFFERED BY AURORA RESULTING FROM THE EXERCISE OF ANY RIGHTS GRANTED IN ACCORDANCE WITH THIS AGREEMENT. 

        9.3.2    With respect to rights licensed to Aurora by the Howard Hughes Medical Institute ("HHMI") or by The Regents of the
University of California ("UC"), Senomyx hereby agrees to indemnify, defend and hold harmless HHMI or UC, as appropriate, and their respective officers, directors, employees, sponsors and agents from
and against all damages or other amounts payable to a Third Party (including product liability) resulting or arising from Senomyx's use of the rights granted herein to the extent that such
indemnification by Senomyx is required by HHMI or UC pursuant to agreements between HHMI and Aurora or between UC and Aurora. 

        9.4    Warranties Relating to Aurora Technology.    Aurora represents and warrants to Senomyx as of the Effective Date
the following: 

        9.4.1    To the best knowledge of Aurora as of the Effective Date: (a) Aurora has the lawful right to license (or
sublicense, as the case may be) the Aurora Technology to Senomyx in accordance with the terms of this Agreement; (b) the Aurora Patent Rights were properly filed and prosecuted; and
(c) no Third Party suit against Aurora exists relating to the Aurora Patent Rights. 

        9.4.2    EXCEPT AS EXPRESSLY SET FORTH HEREIN, AURORA (INCLUDING ITS OFFICERS, EMPLOYEES AND AGENTS) EXPRESSLY DISCLAIMS ANY
REPRESENTATIONS AND WARRANTIES OF ANY KIND, WHETHER EXPRESS OR IMPLIED, RELATING TO AURORA TECHNOLOGY OR AURORA REPORTERS. AURORA FURTHER DISCLAIMS ANY EXPRESS OR IMPLIED WARRANTY (a) OF
MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OF AURORA TECHNOLOGY OR AURORA REPORTERS; (b) THAT THE PRACTICE OF AURORA TECHNOLOGY OR AURORA REPORTERS WILL NOT INFRINGE A PATENT,
COPYRIGHT, TRADEMARK, TRADE SECRET OR OTHER RIGHT OF A THIRD PARTY; AND (c) REGARDING THE PATENTABILITY OF ANY AURORA TECHNOLOGY OR AURORA REPORTERS, INCLUDING AURORA TECHNOLOGY OR AURORA 

17

 

REPORTERS
CLAIMED IN PATENT APPLICATIONS AS PART OF AURORA PATENT RIGHTS. 

        9.5    Aurora Indemnification.    

        9.5.1    Aurora hereby agrees to indemnify, defend and hold Senomyx and its respective officers, directors, employees and agents
(collectively the "Senomyx Indemnitees") harmless from and against all damages, losses, liabilities, expenses and costs or other amounts payable to a Third Party, including reasonable attorneys' fees
and costs of litigation, resulting from a claim, demand, action, suit, or other proceeding brought or threatened by a Third Party against a Senomyx Indemnitee based on Aurora's gross negligence,
intentional misconduct, trade secret misappropriation or material misrepresentations contained herein. IN NO EVENT SHALL AURORA BE LIABLE FOR ANY INDIRECT, INCIDENTAL,SPECIAL OR CONSEQUENTIAL DAMAGES
SUFFERED BY SENOMYX RESULTING FROM THE EXERCISE OF ANY RIGHTS GRANTED IN ACCORDANCE WITH THIS AGREEMENT. 

        9.5.2    Aurora hereby agrees to indemnify, defend and hold The Regents of the University of California, National Institute of
Health, and the Howard Hughes Medical Institute and its respective officers, sponsors, directors, employees and agents (collectively the "IP Indemnitees") harmless from and against all damages or
other amounts payable to a Third Party, including reasonable attorneys' fees and costs of litigation, resulting or arising from the exercise of rights under the license granted from Senomyx to Aurora
under Section 4.2 and pursuant to any agreement between The Regents of the University of California and Senomyx, including product liability. 

10.   TERM AND TERMINATION  

        10.1    Term.    The term of this Agreement will begin on the Effective Date and shall continue until there is no
longer a royalty obligation owed by Senomyx to Aurora under this Agreement, unless terminated earlier in accordance with the provisions of Section 10.2, 10.3 or 10.4 hereof (the "Term"). 

        10.2    Termination by Senomyx.    Senomyx may terminate this Agreement without cause at any time upon  [***] prior written notice to Aurora which notice may not be provided earlier than [***
] from the Effective Date. 

        10.3    Termination By Mutual Agreement.    Notwithstanding Section 10.2, the parties may terminate this
Agreement at any time, in whole or in part, by mutual written agreement executed by both Aurora and Senomyx. 

        10.4    Termination for Breach.    Aurora shall have the right to terminate this Agreement at any time if Senomyx
fails to make any payment when due under this Agreement, provided that Senomyx has not made such payment within [***] after
written notice thereof by Aurora. Either party shall have the right to terminate this Agreement at any time for a material breach of this Agreement (other than non-payment) by the other
party, provided that the breaching party has not cured such breach within [***] after written notice thereof by the
non-breaching party. The non-breaching party, upon termination of this Agreement, may seek actual or general damages and remedies available to it at law or in equity. NO
PUNITIVE OR CONSEQUENTIAL DAMAGES MAY BE SOUGHT BY EITHER PARTY. 

        10.5    Effect of Termination.    

        10.5.1    Upon termination of this Agreement pursuant to Section 10.2, (i) Senomyx shall have no right to practice
within the Aurora Patent Rights or use any of the Aurora Technology or any Aurora Reporter, unless Senomyx pays to Aurora an early termination fee of  [***] within [***]
, 

18

 

and
(ii) Senomyx shall pay Aurora additional research support in accordance with Section 3.1 for a period of [***]
following the date Senomyx notifies Aurora of such termination. 

        10.5.2    Upon termination of this Agreement pursuant to Section 10.3, (i) Senomyx shall have no right to practice
within the Aurora Patent Rights or use any of the Aurora Technology or any Aurora Reporter, and (ii) all rights, title or interest in, or other incidents of ownership under, the Aurora
Technology and Aurora Reporters shall revert to and become the sole property of Aurora, unless otherwise agreed upon in writing by the parties on or before the effective date of such termination. 

        10.5.3    Upon termination of this Agreement pursuant to Section 10.4, (i) Senomyx shall have no right to practice
within the Aurora Patent Rights or use any of the Aurora Technology or any Aurora Reporter, and (ii) all rights, title or interest in, or other incidents of ownership under, the Aurora
Technology and Aurora Reporters shall revert to or become the property of Aurora. 

        10.5.4    Expiration or termination of this Agreement shall not relieve either party of any obligation accruing prior to such
expiration or termination. 

        10.6    Survival.    The obligations and rights of the parties under Sections 2.4.5, 4.3, 5.4, 10.5 and 10.6 and
Articles 1, 7, 9 and 11 shall survive termination or expiration of this Agreement. 

11.   MISCELLANEOUS  

        11.1    Assignment.    Notwithstanding any provision of this Agreement to the contrary, neither party may assign any
of its rights or obligations under this Agreement in any country to any Third Party without the prior written consent of the non-assigning party, which consent shall not be unreasonably
withheld; provided, however, that either party may assign its rights and obligations under this Agreement without the consent of the other party
(i) in connection with the transfer or sale of all or substantially all of its assets, or (ii) to any Affiliate. In the event of such transaction, however, intellectual property rights
(including Know-How) of a party to such transaction other than one of the parties to this Agreement, shall not be included in the technology licensed hereunder. Notwithstanding the
foregoing, any such assignment to an Affiliate shall not relieve the assigning party of its responsibilities for performance of its obligations under this Agreement. This Agreement shall survive any
merger or consolidation of either party with or into another party and no consent for any such merger, consolidation or similar reorganization shall be required hereunder. 

        11.2    Binding Effect.    This Agreement shall be binding upon and inure to the benefit of the successors and
permitted assigns of the parties. Any assignment not in accordance with this Agreement shall be void. 

        11.3    Force Majeure.    Neither party shall lose any rights hereunder or be liable to the other party for damages or
losses on account of failure of performance by the defaulting party if the failure is occasioned by war, fire, explosion, flood, El Niño, earthquake, strike, lockout, embargo, act of
God, or any other similar cause beyond the control of the defaulting party; provided, however, that the party claiming force majeure has exerted all
reasonable efforts to avoid or remedy such force majeure and thereafter takes all reasonable steps to mitigate any such delay in performance hereunder and any damages that may be incurred by the other
party thereby. 

        11.4    Notices.    Any notices or communications provided for in this Agreement to be made by either party to the
other party shall be in writing, in English, and shall be made by prepaid air mail or overnight carrier with return receipt addressed to the other party at its address set forth below. Any 

19

 

such
notice or communication may also be given by hand or facsimile to the appropriate designation. Notices shall be sent: 

If
to Senomyx, to: 

Senomyx, Inc.

11099 North Torrey Pines Road

La Jolla, CA 92037

Facsimile number: (858) 404-0750

Attention: Vice President, Corporate Counsel

with a copy to the President 

If
to Aurora, to: 

Aurora
Biosciences Corporation

11010 Torreyana Road

San Diego, CA 92121

Facsimile number: (858) 404-6743

Attention: General Counsel

with a copy to the President 

        Either
party may by like notice specify or change an address to which notices and communications shall thereafter be sent. Notices sent by mail, facsimile or overnight carrier shall be
effective upon receipt and notices given by hand shall be effective when delivered. 

        11.5    Governing Law and Jurisdiction.    This Agreement shall be governed by the laws of the State of California, as
such laws are applied to contracts entered into and to be performed entirely within such state. 

        11.6    Waiver.    Except as specifically provided for herein, the waiver from time to time by either party of any
right or the failure to exercise any remedy shall not operate or be construed as a continuing waiver of the same right or remedy or any of the other of such party's rights or remedies provided in this
Agreement. 

        11.7    Severability.    If any term, covenant or condition of this Agreement or the application thereof to any party
or circumstance shall, to any extent, be held to be invalid or unenforceable, then the remainder of this Agreement, or the application of such term, covenant or condition to parties or circumstances
other than those as to which it is held invalid or unenforceable, shall not be affected thereby and each term, covenant or condition of this Agreement shall be valid and enforced to the fullest extent
permitted by law. The parties covenant and agree to renegotiate any such term, covenant or condition or the application thereof in good faith in order to provide a reasonably acceptable alternative to
the term, covenant or condition of this Agreement or the application thereof that is invalid or
unenforceable, it being the intent of the parties that the basic purposes of this Agreement are to be effectuated. 

        11.8    Independent Contractors.    It is expressly agreed that Aurora and Senomyx shall be independent contractors
and that the relationship between the parties shall not constitute a partnership or agency of any kind. Neither Aurora nor Senomyx shall have the authority to make any statements, representations or
commitments of any kind, or to take any action, which shall be binding on the other party, without the prior written authorization of the other party to do so. 

        11.9    Counterparts.    This Agreement may be executed in two (2) or more counterparts, each of which shall be
deemed an original, but all of which together shall constitute one and the same instrument. 

20

 

        11.10    Entire Agreement; Amendment.    This Agreement sets forth all of the covenants, promises, agreements,
warranties, representations, conditions and understandings between the parties, and supersedes and terminates all prior agreements and understandings between the parties, with respect to the subject
matter hereof. There are no covenants, promises, agreements, warranties, representations, conditions or understandings, either oral or written, between the parties other than as set forth herein. No
subsequent alteration, amendment, change or addition to this Agreement shall be binding upon the parties unless reduced to writing and signed by the respective authorized officers of the parties. This
Agreement shall not be strictly construed against either party. Any conflict between the terms set forth in the text of this Agreement and the terms of any Exhibit hereto shall be resolved in favor of
the text of this Agreement. 

        11.11    No Third Party Beneficiaries.    No Third Party, including any employee of any party to this Agreement
(except as specifically provided in Sections 9.3 and 9.5), shall have or acquire any rights by reason of this Agreement. Nothing contained in this Agreement shall be deemed to constitute the parties
partners with each other or any Third Party. 

        11.12    Construction.    The term "Article" or "Section" can refer to any single paragraph level found herein or any
collection of multiple paragraphs thereunder. 

        11.13    Dispute Resolution.    The parties recognize that disputes as to certain matters may from time to time arise
during the Term, which relate to either party's rights and/or obligations hereunder. It is the objective of the parties to establish procedures to facilitate the resolution of disputes arising under
this Agreement in an expedient manner by mutual cooperation and without resort to arbitration. The parties agree that prior to any arbitration concerning this Agreement, Senomyx's  [*** ] and Aurora's
[***] will meet in person or by
video-conferencing in a good faith effort to resolve any disputes concerning this Agreement. Within thirty (30) days of a formal request by either party to the other party, either party may, by
written notice to the other party, have such dispute referred to their respective officers designated or their successors, for attempted resolution by good faith negotiations, such good faith
negotiations to begin within thirty (30) days after such notice is received. Any dispute arising out of or relating to this Agreement which is not resolved between the parties or the designated
officers of the parties pursuant to this Section 11.13 shall be resolved by final and binding arbitration conducted in San Diego, California (unless the parties mutually agree to another
location) in accordance with Sections 1282 through 1288 of the California Code of Civil Procedure. The arbitration shall be conducted by three (3) arbitrators who are knowledgeable in the
subject matter which is at issue in the dispute. One (1) arbitrator will be selected by Senomyx and one (1) arbitrator will be selected by Aurora. The third arbitrator will be selected
by mutual agreement of the two (2) arbitrators selected by the parties. In conducting the arbitration, the arbitrators shall (i) determine what discovery will be permitted, consistent
with the goal of limiting the cost and time which the parties must expend for discovery (and provided that the arbitrators shall permit such discovery they deem necessary to permit an equitable
resolution of the dispute), (ii) ensure that the total time of the arbitration from filing to a final decision or executed settlement agreement is less than six (6) months, and
(iii) be able to decree any and all relief of an equitable nature, including, but not limited to, such relief as a temporary restraining order, a preliminary injunction, a permanent injunction,
specific performance or repletion of property. The arbitrators shall also be able to award actual or general damages, but shall not award any other form of damage (e.g., consequential, punitive or
exemplary damages). The parties shall share equally the arbitrator's fees and expenses pending the resolution of the arbitration, unless the arbitrators, pursuant to their right, but not their
obligations, require the non-prevailing party to bear all or any portion of the costs of the prevailing party. The decision of the arbitrators shall be final and binding on the parties and
may be sued on or enforced by the party in whose favor it runs in any court of competent jurisdiction at the option of such party. Notwithstanding anything to the contrary in this
Section 11.13, either party may seek immediate injunctive or other interim relief from any court of competent jurisdiction with respect to any breach of Articles 4 or 7 hereof, or otherwise to
enforce and 

21

 

protect
the Patent Rights, copyrights, trademarks, or other intellectual property rights Controlled by such party. In addition, arbitration shall not be used to resolve disputes concerning Patent
Rights. Disputes concerning Patent Rights, including, but not limited to, disputes concerning patent ownership, claim language, claim scope and issues of validity shall be settled in a court of law.
Any arbitration ruling that relies on an interpretation of Patent Rights shall have no binding effect in a court of law on any Patent Rights related to this Agreement, unless such Patent Rights have
been adjudicated in a court of law. In no event shall a demand for arbitration be made after the date when the institution of a legal or equitable proceeding based on such claim, dispute or other
matter in question would be barred by the applicable statute of limitations. 

22

   
        IN WITNESS WHEREOF, the parties have caused this Agreement to be executed by their duly authorized representatives as of the Effective Date. 

	SENOMYX, INC.	 	AURORA BIOSCIENCES CORPORATION
	

By:	
 	

/s/  PAUL A. GRAYSON      
	
 	

By:	
 	

/s/  STUART J. M. COLLINSON      

	Name:	 	Paul A. Grayson	 	Name:	 	Stuart J. M. Collinson
	Title:	 	President and CEO	 	Title:	 	Chairman, CEO and President
	

Date:	
 	

November 1, 2000
	
 	

Date:	
 	

November 1, 2000

23

 
LIST OF EXHIBITS  

	Exhibit 1:	 	List of Aurora Patent Rights
	
Exhibit 2:	
 	

List of Senomyx Patent Rights
	
Exhibit 3:	
 	

Description of Reporters
	
Exhibit 4:	
 	

Stock Purchase Agreement
	
Exhibit 5:	
 	

Senomyx Target List
	
Exhibit 6:	
 	

Assay Platform Validation Criteria
	
Exhibit 7:	
 	

VIPR and VIPR II Performance Criteria and Service and Support

24

 
EXHIBIT 1  

 List of Aurora Patent Rights  

	TITLE
[***]	 	SERIAL NUMBER OR PATENT NUMBER
[***]

25

 
EXHIBIT 2  

 List of Senomyx Patent Rights  

	TITLE
[***]	 	APPLICATION NO.
[***]

26

 
EXHIBIT 3  

 Description of Reporters  

	1)
	[***]

	2)
	[***]

	3)
	[***]

	4)
	[***]

	5)
	The
following [***] appropriate for evaluation of Senomyx targets
 [***]

27

 
EXHIBIT 5  

 Senomyx Target List  

        Sequences listed as an attachment to this Exhibit, and incorporated by reference, include the following molecules: 

        [***]

28

 
EXHIBIT 6  

 Assay Platform Validation Criteria  

        Assay
Platform validation shall include the following characteristics: 

        [***]

29

 
EXHIBIT 7  

 Performance Specifications  

Voltage Ion Probe Reader (VIPR)  

        The VIPR is a 96-well compatible instrument designed to run voltage sensitive fluorescence assays on ion channel targets. 

        The
VIPR will be capable of dispensing reagent during a read of a ratiometric fluorescence signal from eight (8) wells at one time; provided,
however, that mixing will not be instantaneous. 

        The
VIPR's optical properties will be such that it is compatible with the current dyes developed by Aurora and will have sufficient sensitivity to see at least 20 mV changes in membrane
potential. 

Voltage Ion Probe Reader II (VIPR II)  

        The VIPR II is a 96-well and 384-well microplate compatible instrument designed to run voltage sensitive fluorescence assays on ion channel targets. 

        The
VIPR II will be capable of simultaneous liquid addition and optical detection for 96-well and 384-well plate formats. 

        The
VIPR II will be capable of dispensing liquids into a 96-well or 384-well microplate using 8 or 32 tips without changing the dispense head. 

        The
VIPR II will be capable of simultaneous optical measurements at two wavelengths at 1 Hz and up to100 Hz for the 96-well and 384-well plate format, respectively. 

Service and Support for VIPR or VIPR II  

        Service and support by Aurora for the VIPR or VIPR II includes the following: (i) customary  [***]; (ii) [***] by an Aurora Factory Certified
Engineer; and (iii) [***], exclusive of [***],
which are separate, prepaid and added to the service invoice after any visit or repair. Reasonable travel and related expenses for  [***] shall be paid by [***]. Only a Aurora Factory
Certified Engineer is authorized to service the VIPR or VIPR II, and any tampering with or modification of the instrument by any other party without the express written consent of Aurora will nullify
the service and support coverage for the VIPR or VIPR II. 

30

  

CONFIDENTIAL

***Text Omitted and Filed Separately

with the Securities and Exchange Commission.

Confidential Treatment Requested

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

200.83 and 230.406.  

 
 

FIRST AMENDMENT
  TO THE
  COLLABORATIVE RESEARCH AND LICENSE AGREEMENT    
    

        THIS FIRST AMENDMENT TO THE COLLABORATIVE RESEARCH AND LICENSE AGREEMENT (the "First Amendment") is made by and between SENOMYX, INC. ("Senomyx"), a
Delaware corporation, having a principal place of business at 11099 North Torrey Pines Road, La Jolla, California 92037, and AURORA BIOSCIENCES CORPORATION ("Aurora"), a Delaware corporation, having a
principal place of business at 11010 Torreyana Road, San Diego, California 92121. 

        WHEREAS,
Senomyx and Aurora entered into that certain Collaborative Research and License Agreement dated as of November 1, 2000 (the "Agreement") to collaborate in the development
of assays and screening systems to identify and develop small molecules for use in consumer products and therapeutics (capitalized terms used but not otherwise defined in this First Amendment shall
have the meanings given such terms in the Agreement); and 

        WHEREAS,
Senomyx and Aurora wish to amend the Agreement in the manner set forth in this First Amendment and otherwise to provide for certain agreements by the parties as set forth
herein. 

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

	1.
	The
definitions of "Collaborative Period", "Field II" and "Target" in Article 1 of the Agreement are hereby amended and restated its entirety as follows:

	

	"Collaborative
Period" means the period beginning on the Effective Date and ending on October 31, 2002, unless terminated earlier in accordance with
Section 10.3 or 10.4.

	

	"Field
II" means [***].

	

	"Target"
means a target identified in taste, olfaction or pheromone detection.

	2.
	The
definition of "Therapeutic Target" is hereby added to Article 1 of the Agreement as follows:

	

	"Therapeutic
Target" means a Target listed on Exhibit 5, as modified from time to time by the Steering Committee as provided under
Section 2.2.

	3.
	The
first sentence in Section 3.1 of the Agreement is hereby amended and restated in its entirety as follows:

	

	"During
the first fifteen (15) months of the Collaborative Period, Senomyx will pay Aurora for  [***] FTEs at an annual rate of [***] per FTE. During
the remaining nine (9) months of the Collaborative Period, Senomyx will pay Aurora for [***] FTEs at an annual rate of  [***] per FTE."

	4.
	Section 3.2
of the Agreement is hereby deleted in its entirety. The numbering of all other sections within Article 3 will remain unchanged. 

1

 
	5.
	The
last sentence in Section 3.8 of the Agreement is hereby amended and restated in its entirety as follows:

	

	"Senomyx
may, in its sole discretion, extend the warranty on the VIPR or the VIPR II beyond such  [***] period for [***] per year payable on  [***] thereafter; provided, however, such right to extend the warranty shall
expire on the [***] of the Effective Date."

	6.
	Section 4.1.1
of the Agreement is hereby amended and restated in its entirety as follows:

	

	"4.1.1    Non-Exclusive License to use Aurora Technology in Assay
Platforms.    Subject to the terms and conditions of this Agreement, Aurora hereby grants to Senomyx a non-transferable, except as provided in
Section 11.1, non-exclusive, worldwide license, without the right to grant sublicenses, under the Aurora Technology to use the Assay Platforms solely to conduct Internal Research:

	(a)
	to
develop screens for the Therapeutic Targets and to screen the Therapeutic Targets (i) to identify, discover and profile compounds in Field I, and (ii) to make, have
made, use, sell, offer for sale and import compounds or Products in Field I identified or discovered with activity against such Therapeutic Targets in the Assay Platforms; and

	(b)
	to
develop screens for the Targets and to screen the Targets (i) to identify, discover and profile compounds in Field II, and (ii) to make, have made, use, sell, offer
for sale and import compounds or Products in Field II identified or discovered with activity against such Targets in the Assay Platforms."

	7.
	Section 4.1.3
of the Agreement is hereby amended and restated in its entirety as follows:

	

	"4.1.3    Non-Exclusive License to use Aurora Reporters for Internal Research of Therapeutic
Targets.    Subject to the terms and conditions of this Agreement, Aurora hereby grants to Senomyx a non-transferable, except as provided in
Section 11.1, non-exclusive, worldwide license, without the right to grant sublicenses, under the Aurora Technology to use the Aurora Reporters solely to conduct Internal Research
on the Therapeutic Targets (i) to identify, discover and profile compounds in Field I, and (ii) to make, have made, use, sell, offer for sale and import compounds or Products in Field I
identified or discovered with activity against such Therapeutic Targets."

	8.
	Section 10.1
of the Agreement is hereby amended and restated in its entirety as follows:

	

	"10.1    Term.    The term of this Agreement will begin on the Effective Date and will
continue until October 31, 2002, unless terminated earlier in accordance with the provisions of Section 10.3 or 10.4 hereof (the "Term")."

	9.
	Section 10.2
is hereby deleted in its entirety. The numbering of all other sections within Article 10 will remain unchanged.

	10.
	Section 10.5.1
of the Agreement is hereby amended and restated in its entirety as follows:

	

	"10.5.1    Senomyx
will pay to Aurora a non-creditable, non-refundable termination fee of  [***] on or before October 30, 2002."

	11.
	Section 10.6
of the Agreement is hereby amended and restated in its entirety as follows:

	

	"10.6    Survival.    The obligations and rights of the parties under Sections 2.4.5,
2.5, 3.4, 3.8, 4.1.7, 4.3, 10.4, 10.5 and 10.6 and Articles 1, 5, 7, 9 and 11 will survive the termination or expiration of this Agreement. In addition, upon the expiration of this Agreement in
accordance with Section 10.1, the rights granted to Senomyx under Section 4.1 shall remain in full force and effect as long as Senomyx is not in material breach of its obligations to
Aurora under this Agreement."

	12.
	In
consideration for the [***] assay that Aurora has delivered to Senomyx, Senomyx will pay to Aurora a
non-creditable, non-refundable milestone payment of [***] on or before April 30, 2002. 

2

 
	13.
	Senomyx
will pay to Aurora the annual research support payment due February 1, 2002 under Section 3.1 on or before April 30, 2002.

	14.
	Except
as specifically amended by this First Amendment, the terms and conditions of the Agreement shall remain in full force and effect.

	15.
	This
First Amendment shall be governed by the laws of the State of California, as such laws are applied to contracts entered into and to be performed entirely within such state.

	16.
	This
First Amendment may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. 

        IN
WITNESS WHEREOF, the parties have executed this First Amendment effective as of April 16, 2002. 

	SENOMYX, INC.	 	AURORA BIOSCIENCES CORPORATION
	 	 	 
	 	 	 
	/s/  PAUL A. GRAYSON      
 Paul A. Grayson

Chairman and CEO	 	/s/  HARRY STYLLI      
 Harry Stylli

President

3

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FIRST AMENDMENT TO THE COLLABORATIVE RESEARCH AND LICENSE AGREEMENT

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