Document:

Exhibit
10.64

 

CONFIDENTIAL
TREATMENT

 

SCREENING SERVICE AGREEMENT

 

This Screening Service Agreement (“Agreement”) dated
as of December 7, 2001 (the “Effective Date”) is between Cetek Corporation
(hereinafter “Cetek”) having a place of business at 260 Cedar Hill Street,
Marlborough, Massachusetts, 01752 and Cubist Pharmaceuticals, Inc. (hereinafter
“Cubist”) having a place of business at 65 Hayden Ave., Lexington,
Massachusetts, 02421.

 

Cetek and Cubist
hereby agree to the following:

 

1.                                       Cetek
has developed confidential and proprietary technology, including know-how,
patents, patent applications, trade secrets, methods, processes, techniques,
products, materials, compositions, equipment, information, data, results of
tests or studies and expertise developed or owned by or licensed to Cetek,
relating to primary high throughput screening, dereplication of natural product
hits, deconvolution of combinatorial chemical libraries, and secondary assays
of chemical compounds to ascertain chemical properties using various
instruments (hereinafter “Cetek Proprietary Technology”).

 

2.                                       Cubist
has developed confidential and proprietary technology including know-how,
patents, patent applications, trade secrets, methods, processes, techniques,
products, materials, compositions, equipment, information, data, results of
tests or studies and expertise developed or owned by or licensed to Cubist,
relating to primary high throughput screening, dereplication of natural product
hits, targets, assays, peptides and a compound library including natural
product extracts and synthetic compounds (hereinafter “Cubist Proprietary
Technology”).

 

3.                                       Cetek
will provide Cubist with screening and dereplication services utilizing only
Cetek Proprietary Technology (the “Screening Services”). All information and
materials exchanged by the parties in the course of performing the Screening
Services and deemed confidential by the disclosing party shall be marked
“confidential” (hereinafter “Confidential Information”).

 

4.                                       Within
[*] days of the Effective Date, the parties shall each appoint three (3)
persons to serve on the Screening Management Committee (“SMC”). During the term
of the Agreement, the SMC shall agree on (a) the schedule for performing the
work contemplated by the Screening Services Plan; (b) such other matters as are
delegated to it pursuant to the Screening Services Plan; and (c) any changes,
variations, modifications or refinements of the Screening Services Plan they
deem appropriate to effectuate the purposes of this Agreement, provided
however, that in the event the members of the SMC are unable to reach agreement
on a course of action, then the SMC shall adopt the course of action advocated
by the Cubist members of the SMC. The members of the SMC will communicate on a
regular basis by any appropriate means (telephone, email, FAX, meeting) and
will convene in person or by teleconference no less than four (4) times per
year, at locations and times to be agreed upon.

 

*Confidential Treatment Requested. Omitted portions filed with the Commission.

 

 

5.                                       Cubist
shall pay to Cetek the following milestone payments upon the achievement of the
corresponding milestone event

 

	
  Event

  	
   

  	
  Payment

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  (a)

  	
  Completion by [*]

  	
   

  	
  $

  	
  10,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  (b)

  	
  Acceptance by the [*]of as many [*]:

  	
   

  	
  $

  	
  40,000

  	
   

  
	
  New:

  	
  [*]

  	
   

  	
   

  	
   

  
	
  Unique:

  	
  [*].

  	
   

  	
   

  	
   

  
	
  Reversible:

  	
  [*].

  	
   

  	
   

  	
   

  
	
  Potent:

  	
  [*].

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (c)

  	
  Completion by
  [*]

  	
   

  	
  $

  	
  10,000/extract

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (d)

  	
  Identification
  by [*]:

  	
   

  	
  $

  	
  100,000

  	
   

  
	
   

  	
  •

  	
  [*]

  	
   

  	
   

  	
   

  
	
   

  	
  •

  	
  [*]

  	
   

  	
   

  	
   

  
	
   

  	
  •

  	
  [*]

  	
   

  	
   

  	
   

  
	
   

  	
  •

  	
  [*]

  	
   

  	
   

  	
   

  
	
   

  	
  •

  	
  [*]

  	
   

  	
   

  	
   

  
	
   

  	
  •

  	
  [*]

  	
   

  	
   

  	
   

  
	
   

  	
  •

  	
  [*]

  	
   

  	
   

  	
   

  
	
   

  	
  •

  	
  [*]

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (e)

  	
  Submission by [*]

  	
   

  	
  $

  	
  200,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (f)

  	
  Enrollment by [*]

  	
   

  	
  $

  	
  300,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (g)

  	
  Enrollment by [*]

  	
   

  	
  $

  	
  500,000

  	
   

  
									

 

 

*Confidential Treatment Requested. Omitted portions filed with the
Commission.

 

2

 

* [*]

 

** [*]

 

Cubist shall
notify Cetek no later than [*] days after the achievement of any of the
milestones described above with respect to each compound. Such notice shall be
followed within [*] days by payment in full of any amounts due Cetek for the achievement
of such milestone.

 

6.                                       Additional
analysis and research beyond the screening services described in this Agreement
may be carried out upon mutual written agreement between the parties. The
parties agree that any negotiations shall be conducted in good faith and shall
be commercially reasonable.

 

7.                                       Cetek
shall promptly provide [*].

 

8.                                       Each
party represents to the other that:

 

(a)                                  Such
party is and at all times during the term of this Agreement shall remain a
corporation duly organized, validly existing and in good standing under the
laws of its jurisdiction of organization.

 

(b)                                 The
execution and delivery of this Agreement has been duly authorized by all
requisite corporate action. This Agreement is and shall remain a valid and
binding obligation of such party, enforceable in accordance with its terms,
subject to laws of general application relating to bankruptcy, insolvency and
the relief of debtors.

 

(c)                                  Such
party carries, with financially sound and reputable insurers, insurance
coverage (including workers’ compensation, errors and omissions, professional
liability and comprehensive liability coverage) with respect to the conduct of
its business against loss from such risks and in such amounts as is customary
for well insured companies engaged in similar businesses.

 

*Confidential Treatment Requested. Omitted portions filed with the
Commission.

 

3

 

(d)                                 Such
party has no contractual or other obligation or restriction which is
inconsistent with its execution or performance of this Agreement.

 

9.                                       Cetek
warrants and represents to Cubist as follows:

 

(a)                                  that
all Screening Services will be performed in a timely, expert and professional
manner in accordance with the highest industry standards and all applicable
laws, and that it will comply with all business conduct, regulatory, health and
safety guidelines, of any governmental authority, provided, however, that the
inability of Cetek to develop one or more target assays or to identify
compounds as contemplated by this Agreement shall not be deemed a breach of
this Agreement it being acknowledged by the parties hereto that the research
and development activity contemplated by this Agreement is experimental in
nature and that success cannot be guaranteed.

 

(b)                                 to
the best of Cetek’s knowledge, it has sufficient legal and/or beneficial title
under its intellectual property rights necessary to perform the activities
contemplated under this Agreement.

 

10.                                 Cubist
warrants and represents to Cetek as follows:

 

(a)                                  that
Cubist will inform Cetek of any actual or potential toxicity or other possible
hazardous property or handling condition for all compounds and other materials
furnished by Cubist to Cetek under this Agreement.

 

(b)                                 to
the best of Cubist’s knowledge, it has sufficient legal and/or beneficial title
under its intellectual property rights to all targets, screening libraries,
compounds and other materials furnished by Cubist to Cetek under this
Agreement.

 

11.                                 Cetek
will defend, indemnify, save and hold Cubist harmless from and against any
third party claims, demands, suits, actions, causes of actions, losses,
damages, fines and liabilities, including reasonable attorney’ fees
(hereinafter “Losses”) arising out of (1) the breach by Cetek of this Agreement
or (2) the Screening Services, and will pay any costs and damages which, by
final judgment, after exhaustion of all reasonable appeals, may be
assessed against Cubist, except that Cetek shall not be obligated to indemnify
Cubist for losses to the extent they result from the gross negligence or
willful misconduct of Cubist.

 

12.                                 Cubist
will defend, indemnify, save and hold Cetek harmless from and against any third
party claims, demands, suits, actions, causes of actions, losses, damages,
fines and liabilities, including reasonable attorney’ fees (hereinafter
“Losses”) arising out of (1) the breach by Cubist of this Agreement or (2) the
development, manufacture, use or sale of any product resulting from an
identified compound, and will pay any costs and damages which, by final
judgment, after exhaustion of all reasonable appeals, may be assessed
against Cetek, except that Cubist shall not be obligated to indemnify Cetek for
losses to the extent they result from the gross negligence or willful
misconduct of Cetek.

 

*Confidential Treatment Requested. Omitted portions filed with the
Commission.

 

4

 

13.                                 Cetek
and Cubist shall each hold the other’s Confidential Information, including
Cetek Proprietary Technology and Cubist Proprietary Technology and the results
of the Screening Services, disclosed to it in confidence and shall use the same
level of care to prevent any unauthorized use or disclosure of such
Confidential Information or results of the Screening Services as it exercises
in protecting its own Information of a similar nature. Cetek and Cubist will
limit internal dissemination of Confidential Information to those employees or
affiliates whose duties justify their need to know such Information.

 

14.                                 The
confidentiality obligations of this Agreement shall not apply to:

 

(a)                                  Information
which at the time of disclosure is in the public domain: or

 

(b)                                 Information
which, after its disclosure, becomes part of the public domain by publication
or otherwise, except in breach of this Agreement; or

 

(c)                                  Information
which Cetek or Cubist can establish by reasonable proof was in its possession
at the time of disclosure or was subsequently and independently developed by
employees of Cetek or Cubist who had no knowledge of the Information disclosed;
or

 

(d)                                 Information
which Cetek or Cubist shall receive from a third party, provided however that
the third party has the right to disclose the Information to Cetek or Cubist,
respectively, or

 

(e)                                  Information
which is required by law to be disclosed.

 

15.                                 The
confidentiality obligations under this Agreement shall expire [*] from the
Effective Date of this Agreement.

 

16.                                 Cetek
shall have no right to publish or otherwise publicly disclose, during or after
the completion of this Screening Services Agreement, Results (as defined in
Section 17 below) generated during the conduct of the screening services.

 

17.                                 Cubist
shall retain its sole ownership of all Cubist Proprietary Technology, including
materials and compositions provided to Cetek hereunder. Cubist shall
exclusively own all results and data, derivatives of Cubist materials and
compositions, and discoveries and inventions pertaining to or resulting from
the Screening Services that relate to materials or Confidential Information provided
by Cubist (hereinafter “Results”), and such Results shall be “works made for
hire”. Results shall not include any Cetek Proprietary Technology or
improvements to Cetek Proprietary Technology arising during the course of this
Agreement Cubist shall have the exclusive right to use all such Results in the
course of its business, and shall have the right to publish such Results. No
right or license or option for any Cubist Proprietary Technology or Results is
granted to Cetek under this Agreement.

 

18.                                 Cetek
has or shall obtain agreements with all employees, consultants and advisors who
participate in rendering the services which impose confidentiality obligations
on such personnel consistent with the terms hereunder, and which effectively
vest in Cetek any and all rights which

 

*Confidential Treatment Requested. Omitted portions filed with the
Commission.

 

5

 

such personnel
might otherwise have in the result of their work and are adequate to permit
Cetek to transfer such rights to Cubist under Paragraph 20 of this Agreement.

 

19.                                 Cetek
shall not engage in any activities or use any third party facilities or
intellectual property in performing services under this Agreement which could
result in claims of ownership to any results of services being made by such
third party.

 

20.                                 Cetek
assigns and agrees to assign to Cubist all of Cetek’s right, title and interest
in and to any and all Results produced under this Agreement, other than Cetek
Proprietary Technology. During and after the term of this Agreement, Cetek will
cooperate fully in obtaining patent and other proprietary protection for the
results and data, all in the name of Cubist and at Cubist’s cost and expense,
and, without limitation, shall execute and deliver all requested applications,
assignments and other documents, and take such other measures as Cubist shall
reasonably request in order to perfect and enforce Cubist’s rights in the
Results.

 

21.                                 Cetek
shall retain its sole ownership of all Cetek’s Proprietary Technology,
including all improvements or discoveries relating thereto, arising during the
course of this Agreement. Nothing in this agreement shall grant to Cubist any
right, license or option to utilize Cetek’s Proprietary Technology for any
purpose other than interpreting the Results and for the assessment of the
feasibility of a further collaboration between Cubist and Cetek.

 

22.                                 Cubist
acknowledges that Cetek is in the business of developing and screening assays
for its own account and for other third parties utilizing Cetek Proprietary
Technology, and that Cetek will continue to perform services similar to
services provided under this Agreement for its own account and for third
parties.  Subject to the provisions of
this Agreement regarding Cubist’s exclusive ownership of Cubist Proprietary
Technology and Results and provisions regarding the confidentiality of Cubist
Proprietary Technology and Results, nothing in this Agreement shall limit or
prohibit Cetek from utilizing Cetek Proprietary Technology in the performance
of services for its own account or for third parties.

 

23.                                 This
Agreement shall commence as of the Effective Date and, unless sooner terminated
as provided hereunder, shall terminate when Cubist has no further payment
obligations to Cetek under this Agreement.

 

24.                                 Either
party may terminate this Agreement at its sole discretion at any time with
thirty (30) day advance notice, by giving written notice to the other party,
and such termination shall be effective thirty (30) days after such notice is
received by the other. After receipt by Cetek of such notice of termination, it
will stop work hereunder and return to Cubist any materials provided to Cetek
in connection with the Screening Services as well as any Results generated prior
to the date of termination.

 

25.                                 Cubist
may terminate its research and development efforts with respect to a
particular active compound or the entire Agreement at any time, provided,
however, that in the event Cubist terminates its research or development
efforts with regard to a particular active compound that has satisfied lead
optimization criteria defined in Section 5(c) above for any of the following
reasons: (i) Cubist is purchased by, purchases, or merges with a third party
and such third party

 

*Confidential Treatment Requested. Omitted portions filed with the
Commission.

 

6

 

is developing a
compound for the same target as the relevant active compound is being developed
or (ii) Cubist acquires the right from a third party to commercialize a
compound that acts solely on the same target as such active compound, then
Cubist will pay to Cetek a “Development Termination Fee” of One Hundred
Thousand Dollars ($100,000). In no event will more than one Development
Termination Fee be applicable per Target.

 

26.                                 The
obligations set forth in Paragraphs 5, and 11 - 21 hereof shall survive the
expiration or termination of this Agreement.

 

27.                                 This
Agreement, and the rights and obligation hereunder, may not be assigned or
transferred by either party without the prior written consent of the other
party, except that either party may assign its respective rights and
transfer its respective duties hereunder to an affiliate, to any assignee of
all or substantially all of its business, or in the event of a merger or
consolidation with or into another corporation.

 

28.                                 This
Agreement shall be construed and interpreted in accordance with the laws of the
Commonwealth of Massachusetts.

 

29.                                 This
Agreement constitutes the entire understanding of the parties with respect to
the subject matter hereof and shall not be modified except by subsequent mutual
written agreement.

 

IN WITNESS
WHEREOF, each of the parties hereto have caused this Agreement to be executed
as a sealed instrument by its duly authorized representative, effective as of
the date first written above.

 

	
  CETEK
  CORPORATION

  	
   

  	
  CUBIST
  PHARMACEUTICALS, INC.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  /s/ James Little

  	
   

  	
  /s/ Scott Rocklage

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Name:  James Little

  	
   

  	
  Name:  Scott Rocklage, Ph.D

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Title:  

  	
    President

  	
   

  	
  Title:  Chairman, President & CEO

  	
   

  
					

 

 

*Confidential Treatment Requested. Omitted portions filed with the
Commission.

 

7Exhibit 10.65

 

CONFIDENTIAL TREATMENT

 

 

LICENSE AGREEMENT

 

dated
December 27, 2001 between

 

CUBIST
PHARMACEUTICALS, INC.

 

and

 

UNIVERSITY OF UTAH
RESEARCH FOUNDATION

 

 

Revised
July 2001

Exclusive License
Agreement

 

 

TABLE OF CONTENTS

 

	
  Article No.

  
	
   

  
	
   1. 
  DEFINITIONS

  
	
   

  
	
   2. 
  LICENSE GRANT

  
	
   

  
	
   3.  EXCLUSIVE PERIOD AND
  TERM OF AGREEMENT

  
	
   

  
	
   4.  SUBLICENSES

  
	
   

  
	
   5.  LICENSE ISSUE FEE

  
	
   

  
	
   6.  ROYALTIES AND MILESTONE
  PAYMENTS

  
	
   

  
	
   7.  DUE DILIGENCE

  
	
   

  
	
   8.  CONFIDENTIALITY

  
	
   

  
	
   9.  REPORTS

  
	
   

  
	
  10.  PATENT PROSECUTION AND MAINTENANCE

  
	
   

  
	
  11.  PATENT MARKING

  
	
   

  
	
  12.  BOOKS AND RECORDS

  
	
   

  
	
  13.  TERMINATION BY UNIVERSITY

  
	
   

  
	
  14.  TERMINATION BY CUBIST

  
	
   

  
	
  15.  DISPOSITION OF LICENSED PRODUCTS ON HAND

  
	
   

  
	
  16.  WARRANTY BY UNIVERSITY

  
	
   

  
	
  17.  INFRINGEMENT

  
	
   

  
	
  18.  WAIVER

  
	
   

  
	
  19.  ASSIGNABILITY

  
	
   

  
	
  20.  INDEMNIFICATION BY CUBIST

  
	
   

  
	
  21.  INDEMNIFICATION BY UNIVERSITY

  
	
   

  
	
  22.  LATE PAYMENTS

  
	
   

  
	
  23.  NOTICES

  
	
   

  
	
  24.  FOREIGN LAWS

  
	
   

  
	
  25.  RELATIONSHIP OF PARTIES

  
	
   

  
	
  26.  NON-USE OF NAMES

  
	
   

  
	
  27.  DISPUTE RESOLUTION

  
	
   

  
	
  28.  GENERAL PROVISIONS

  

 

2

 

LICENSE AGREEMENT

 

THIS LICENSE AGREEMENT
(“AGREEMENT”) is entered into this 27th day of December, 2001 (the “Effective
Date”) by and between the UNIVERSITY OF UTAH RESEARCH FOUNDATION, a Utah
non-profit corporation, having its principal place of business at 615 Arapeen
Drive, Suite 110, Salt Lake City, UT 84108, hereinafter referred to as
“UNIVERSITY,” and CUBIST PHARMACEUTICALS, INC., having its principal place of
business at 65 Hayden Avenue, Lexington, MA 02421, hereinafter referred to as
“CUBIST.”

 

W I T N E S S E T
H

 

WHEREAS, certain inventions, generally characterized
as COMPLEXES TO IMPROVE ORAL ABSORPTION OF POORLY ABSORBABLE ORAL ANTIBIOTICS
and assigned University of Utah identification number U-3241, hereinafter
collectively referred to as “the INVENTION,” have been made in the course of
research at the University of Utah conducted by Dr. Jeong Soo Lee and at the
University of Utah under a Testing Agreement dated July 1, 1996 with MC
Technologies, Inc. conducted by Dr. Seung-Ho Choi;

 

WHEREAS, patent applications have been filed related
to such INVENTION; WHEREAS, UNIVERSITY desires that the intellectual property
captured in such patent applications be developed and utilized to the fullest
extent so that its benefits can be enjoyed by the general public;

 

WHEREAS, CUBIST wishes to
obtain from UNIVERSITY a license under certain rights for the commercial
development, production, manufacture, use sand sale of products developed using
such intellectual property, and UNIVERSITY is willing to grant such a license
upon the terms and conditions hereinafter set forth;

 

NOW THEREFORE, for and in
consideration of the covenants, conditions and undertakings hereinafter set
forth, the parties hereby agree as follows:

 

*Confidential Treatment Requested. Omitted portions filed with the
Commission.

 

3

 

ARTICLE
1.  DEFINITIONS

 

Section 1.1                                      “AFFILIATE” means
any person or entity that controls, is controlled by, or is under common
control with CUBIST, directly or indirectly. For purposes of this definition,
“control” and its various inflected forms means the possession, directly or
indirectly, of the power to direct or cause the direction of the management and
policies of such person or entity, whether through ownership of voting
securities, by contract or otherwise.

 

Section 1.2                                      “QUARTER” shall
mean a period of three (3) consecutive calendar months ending on March 31,
June 30, September 30 or December 31.

 

Section 1.3                                      “FDA” shall
mean., the United States Food and Drug Administration.

 

Section 1.4                                      “FIELD” shall
mean all fields of use. Notwithstanding the foregoing, [*], pursuant to Section
4.2 below.

 

Section 1.5                                      “LICENSED
PRODUCT” means any product, process, method, apparatus, kit or component part
thereof, or any other subject matter the snaking, using, selling, offering for
sale or import of which would constitute, but for the license granted to CUBIST
pursuant to this AGREEMENT, an infringement of any VALID CLAIM or CLAIMS
included within PATENT RIGHTS.

 

Section 1.6                                      “INDIVIDUAL
LICENSED PRODUCT” means any federally approved LICENSED PRODUCT which requires
separate governmental safety and efficacy approval before introduction to the
market.  For example, if a LICENSED
PRODUCT must be subjected to a separate clinical trial so that a separate use
for the same formula is demonstrated for safety and efficacy, then it is a
distinct INDIVIDUAL PRODUCT.

 

Section 1.7                                      “FIRST LICENSED
PRODUCT” means the first federally approved INDIVIDUAL LICENSED PRODUCT to be
subjected to a governmental safety and efficacy approval process prior to
market introduction, and which is sold in any country of the TERRITORY.

 

Section 1.8                                      “NET SALES” means
the aggregate gross sales of LICENSED PRODUCT sold

 

*Confidential Treatment Requested. Omitted portions filed with the
Commission.

 

4

 

by CUBIST or its SUBLICENSEE, net of the sum of the
following items (where applicable): (1) cash, trade or quantity discounts
actually allowed; (2) sales, use, tariff, customs duties or other excise taxes
directly imposed upon particular sales; (3) outbound transportation charges
prepaid or allowed; and (4) allowances or credits to third parties for
rejections or returns.  A LICENSED
PRODUCT shall be considered sold when billed out or invoiced, or if not
invoiced, upon transfer of LICENSED PRODUCT to a THIRD PARTY end user of such
LICENSED PRODUCT.  There shall be no
deductions from NET SALES for costs of commissions or collections. NET SALES
shall not include (a) promotional or sampled LICENSED PRODUCTS or (b) billings
for LICENSED PRODUCTS sold by CUBIST to any AFFILIATE unless such AFFILIATE is
an end-user of any LICENSED PRODUCT.

 

Section 1.9                                      “PATENT RIGHTS”
means the patents and patent applications set forth in Exhibit A, and any
divisions, continuations, continuations-in-part, reissues, renewals,
extensions, supplementary protection certificates, utility, models and the like
of any such patents and patent applications, and any foreign equivalents thereof.
In addition, “PATENT RIGHTS” shall also mean any patents and any applications
for patents (including provisional, utility, priority applications,
international, and design applications) filed anywhere in the world and
disclosing the INVENTION, further including any and all patents issuing from
such applications, together with all foreign equivalents, additions,
divisionals, continuations, continuations-in-part (to the extent that the
INVENTION is disclosed therein), substitutions, extensions, registrations, or
renewals therefor, and all reissues, reexaminations, and revalidations thereof,
including supplementary protection certificates.

 

Section 1.10                                “SUBLICENSEE” shall
mean any THIRD PARTY (but not including an AFFILIATE of a Party) expressly
licensed by a Party to make, use, import, offer for sale or LICENSED PRODUCTS.

 

Section 1.11                                “THIRD PARTY” shall
mean any person other than the UNIVERSITY, CUBIST

 

*Confidential Treatment Requested. Omitted portions filed with the
Commission.

 

5

 

and their respective AFFILIATE.

 

Section 1.12                                “PHASE III CLINICAL
TRIAL” shall mean a pivotal phase 3 study, as defined in 21 C.F.R. 312.21,
of LICENSED PRODUCT aiming to generate sufficient data and information to
support Regulatory Approval.

 

Section 1.13                                “ TERRITORY” shall mean
all territories of the world.

 

Section 1.14                                “VALID CLAIM” means a
claim of (i) a pending patent application (other than a patent application that
has been pending for more than ten (10) years after the priority filing date
thereof), or (ii) an issued and unexpired patent, in either case which is
included within the PATENT RIGHTS, which has not been revoked or held
unenforceable or invalid by a decision of a court or other governmental agency
of competent jurisdiction, unappealable or unappealed within the time allowed
for appeal, and which has not been disclaimed, denied or admitted to be invalid
or unenforceable in writing through reissue or disclaimer or otherwise.

 

Section 1.15                                “MAJOR MARKET” shall
mean a market in the United States, Europe, or Japan.

 

ARTICLE 2.  LICENSE GRANT

 

Section 2.1                                      Subject to the
terms and conditions set forth herein, UNIVERSITY hereby grants to CUBIST an
exclusive license, with the right to sublicense, under UNIVERSITY PATENT RIGHTS
to make, have made, import, use, offer to sell and sell any LICENSED PRODUCTS
in the FIELD throughout the TERRITORY.

 

Section 2.2                                      CUBIST hereby
grants to the UNIVERSITY a non-exclusive, non-sublicenseable license under
UNIVERSITY PATENT RIGHTS [*].

 

*Confidential Treatment Requested. Omitted portions filed with the
Commission.

 

6

 

ARTICLE
3.  EXCLUSIVE
PERIOD AND TERM OF AGREEMENT

 

Section 3.1                                      This AGREEMENT
shall be in full force and effect from the EFFECTIVE DATE until the end of the
term of the last-to-expire of UNIVERSITY’S PATENT RIGHTS licensed under this
AGREEMENT, unless otherwise terminated by operation of law or by acts of the
parties pursuant to the terms of this AGREEMENT.

 

Section 3.2                                      The license
granted under Section 2.1 shall be exclusive and UNIVERSITY hereby agrees that
it shall not grant any other license to make, have made, use, lease, sell and
import LICENSED PRODUCTS in the TERRITORY for the FIELD during the term of this
AGREEMENT.

 

ARTICLE
4.  SUBLICENSE

 

Section 4.1                                      LICENSOR hereby
grants to LICENSEE the right to enter into sublicensing agreements with third
parties to the extent of LICENSEE’S rights under the grant provided in Section
2.1 and provided that LICENSEE has current exclusive rights thereto in the
TERRITORY being sublicensed pursuant to Section 2.1. Any sublicense granted by
LICENSEE to a SUBLICENSEE shall [*]. 
Upon any termination of this AGREEMENT, any sublicense granted by CUBIST
to a SUBLICENSEE shall be [*].

 

Section 4.2                                      CUBIST shall be
obligated for a period of [*] from the EFFECTIVE DATE to grant an exclusive
sublicense under the PATENT RIGHTS to [*]. 
CUBIST agrees to negotiate the IIVAA sublicense in good faith and on
reasonable terms. CUBIST

 

*Confidential Treatment Requested. Omitted portions filed with the
Commission.

 

7

 

[*].   Notwithstanding the foregoing, in the event
that (a) IHMA does [*], or (b) CUBIST and IHMA are [*], then CUBIST shall
provide the UNIVERSITY with evidence of either (a) or (b) as the case
may be, and CUBIST will then no longer be [*], and CUBIST shall be free to
offer such rights [*] for the rights to [*] and [*].

 

Section 4.3                                      Upon UNIVERSITY’S
request, CUBIST shall promptly provide UNIVERSITY with a copy of any Sublicense
granted and any relevant reports due to CUBIST as a consequence of that
Sublicense by CUBIST hereunder and any amendments thereto or terminations
thereof.

 

ARTICLE
5.  LICENSE
ISSUE FEE

 

CUBIST shall pay to UNIVERSITY a [*] of this AGREEMENT,
[*]. Such [*] shall be deemed [*]. 
Additionally, CUBIST shall pay to the UNIVERSITY [*].

 

ARTICLE
6.  ROYALTIES
AND MILESTONE PAYMENTS

 

Section 6.1                                      Subject to the
terms and conditions of this AGREEMENT, and as consideration for the licenses
granted under this AGREEMENT, CUBIST shall pay to the UNIVERSITY an earned
royalty of [*] of NET SALES of the [*] launched by CUBIST [*]. CUBIST shall pay
to          
                the
UNIVERSITY an earned royalty of [*] of NET SALES of  [*] sold by CUBIST [*].

 

Section 6.2                                      Commencing the
QUARTER in which the first NET SALES occur (the “first QUARTER”), and
continuing as specified in the table below, CUBIST shall pay to UNIVERSITY [*]
royalties according to the following schedule:

 

	
  QUARTERS

  	
   

  	
  [*]
  Royalty Due

  	
   

  
	
  [*]

  	
   

  	
  [*]

  	
   

  
	
  [*]

  	
   

  	
  $

  	
  [*]

  	
   

  
	
  [*]

  	
   

  	
  $

  	
  [*]

  	
   

  
	
  [*]

  	
   

  	
  $

  	
  [*]

  	
   

  

 

*Confidential Treatment Requested. Omitted portions filed with the
Commission.

 

8

 

CUBIST shall continue to
pay  [*] as defined in Section 3.1.
UNIVERSITY shall fully credit each payment of [*] royalties against any earned
royalties payable by CUBIST with respect to the QUARTER in which the minimum
royalty is made.

 

Section 6.3                                      CUBIST shall pay
milestones payments to the UNIVERSITY as follows:

 

(a)                                  CUBIST
shall pay UNIVERSITY a milestone payment of One Hundred Thousand US Dollars
($100,000) [*]. Such [*] is prepared for review;

 

(b)                                 CUBIST
shall pay UNIVERSITY a milestone payment of Two Hundred Thousand US Dollars
($200,000) upon  [*].   Such [*];

 

(c)                                  CUBIST
shall pay UNIVERSITY a milestone payment of Two Hundred Fifty Thousand US
Dollars ($250,000)* upon the [*];

 

(d)                                 CUBIST
shall pay UNIVERSITY a milestone payment of Two Hundred Fifty Thousand US
Dollars ($250,000) upon the [*]; CUBIST shall pay to the UNIVERSITY a one time
milestone payment of Five Hundred Thousand US Dollars ($500,000) upon the
receipt by [*]. Only one such milestone payment shall be due [*]; and,

 

(e)                                  CUBIST
shall pay to UNIVERSITY a patent issue fee of Thirty Thousand US Dollars
($30,000)* for each [*]. The first of such fees will be due upon [*];

 

Section 6.4                                      CUBIST shall pay
all royalties accruing to UNIVERSITY in U.S. Dollars within [*] days following
the QUARTER being reported. All milestone payments shall be paid within [*]
days of the occurrence of the milestone event.

 

Section 6.5                                      If any patent or
any claim thereof included within UNIVERSITY’S PATENT RIGHTS shall be found
invalid by a court of competent jurisdiction and last resort, from which
decision no appeal may be taken, CUBIST’S obligation to pay UNIVERSITY

 

*Confidential Treatment Requested. Omitted portions filed with the
Commission.

 

9

 

royalties based on such patent or claim or any claim
patentably indistinct therefrom shall cease as of the date of such decision.
CUBIST shall not, however, be relieved from paying UNIVERSITY any royalties or
fees that accrued prior to the date of such decision or that are based on any
of UNIVERSITY’S PATENT RIGHTS not the subject of such decision.

 

ARTICLE
7.  DUE
DILIGENCE

 

Section 7.1                                      Immediately
following the EFFECTIVE DATE, CUBIST shall diligently proceed with the [*] in
order to make them [*] on commercially reasonable terms. CUBIST shall continue
active, diligent development and marketing efforts for one or more INDIVIDUAL
LICENSED PRODUCT(S) throughout the term of this AGREEMENT. Diligence for
purposes of this Section 7.1 shall mean efforts commensurate in scope with
those that would be applied by a similarly situated pharmaceutical company to
the development and pursuit of regulatory approval in the United States of drug
candidates of commercial potential similar to the applicable LICENSED PRODUCT.

 

Section 7.2                                      In addition to
the obligations set forth in Section 7.1, CUBIST shall perform the following
obligations as part of its due diligence activities hereunder:

 

(a)                                  CUBIST
shall deliver to UNIVERSITY, on or before [*] a [*] showing the amount of [*]
of the LICENSED PRODUCTS.

 

(b)                                 CUBIST
or its SUBLICENSEE shall [*] within [*] of the EFFECTIVE DATE;

 

*Confidential Treatment Requested. Omitted portions filed with the
Commission.

 

10

 

(c)                                  CUBIST
or is SUBLICENSEE shall have [*] within [*] of the EFFECTIVE DATE; and,

 

(d)                                 CUBIST
or its SUBLICENSEE [*] within [*] of the EFFECTIVE DATE.

 

ARTICLE
8.  CONFIDENTIALITY

 

Section 8.1                                      CUBIST and
UNIVERSITY acknowledge that either party may provide certain information
to the other about LICENSED PRODUCTS or the INVENTION that is considered to be
confidential. CUBIST and UNIVERSITY shall take reasonable precautions to
protect such confidential information. Such precautions shall involve at least
the same degree of care and precaution that CUBIST and UNIVERSITY customarily
uses to protect its own confidential information. All confidential information
disclosed by or on behalf of one Party to the other Party hereunder shall be
maintained in confidence by the receiving Party and shall not be disclosed to a
non-Party or used for any purpose whatsoever except as set forth herein without
the prior written consent of the other Party, except to the extent that such
confidential information:

 

(a)                                  is
known by recipient at the time of its receipt, and not through a prior
disclosure by or on behalf of the disclosing party, as documented by
contemporaneous business records;

 

(b)                                 is
properly in the public domain through no fault of the recipient;

 

(c)                                  is
subsequently disclosed to a receiving party by a THIRD PARTY who
may lawfully do so and is not directly or indirectly under an obligation
of confidentiality to the disclosing Party, as documented by written business
records in existence prior to the receipt of such information from the
disclosing Party;

 

(d)                                 is
developed by the recipient independently of, and without reference to or use
of, Confidential Information received from the disclosing Party;

 

(e)                                  is
required to be disclosed to governmental or other regulatory agencies in order
to obtain patents, to obtain approval to conduct clinical trials or to market
LICENSED PRODUCT, or to comply with applicable NASDAQ or Securities and
Exchange Commission regulations,

 

*Confidential Treatment Requested. Omitted portions filed with the
Commission.

 

11

 

provided however, that such disclosure may be
only to the extent reasonably necessary to obtain patents or approval, or to
comply with regulations as appropriate and that confidential treatment will be
sought to the extent reasonable practicable;

 

(f)                                    is
necessary to be disclosed to permitted SUBLICENSEES, agents, consultants,
AFFILIATES and/or other THIRD PARTIES for the purpose of conducting activities
in accordance with this AGREEMENT on the condition that such THIRD PARTIES
agree to be bound by confidentiality obligations substantially equivalent to
the terms herein, and, provided that such confidentiality obligations shall
endure for no less than  [*];

 

(g)                                 is
required to be disclosed by law or court order, provided that notice is
promptly delivered to the other party in order to provide an opportunity to
challenge or limit the disclosure obligations, and provided further that such
disclosure may be only to the extent reasonably necessary to comply with
the applicable law or court order.

 

Section 8.2                                      CUBIST
acknowledges that UNIVERSITY is subject to the Utah Governmental Records Access
and Management Act (“GRAMA”), Section 63-2-101 et. seg, Utah Code
Ann. (1953), as amended. UNIVERSITY shall keep confidential any information
provided to UNIVERSITY by CUBIST that CUBIST considers confidential, to the
extent allowable under GRAMA and as provided in Section 53B-16-301 et seq.,
Utah Code Ann. In order to be eligible for such protection under GRAMA,
confidential information of CUBIST disclosed to UNIVERSITY must be in written
or other tangible form, marked as proprietary, and accompanied by a written
claim by CUBIST stating the reasons that such information must be kept
confidential.

 

*Confidential Treatment Requested. Omitted portions filed with the
Commission.

 

12

 

ARTICLE
9.  REPORTS

 

Section 9.1                                      Commencing on [*]
and on [*] thereafter, until the first occurrence of NET SALES, CUBIST shall
[*] covering CUBIST’S progress in (a) [*]; (b) [*]; and (c) [*]. Each [*] shall
be in substantially similar form and contain at least the information required
by Exhibit “B” attached hereto and incorporated herein.

 

Section 9.2                                      Within [*] days
after the QUARTER in which NET SALES first occur, and within [*] days after
each QUARTER thereafter, CUBIST shall provide UNIVERSITY with a [*], and
detailing the amount of [*] and [*] pursuant to Articles 6.1 and 6.2 hereof.
Each [*] shall include at least the following:

 

a.                                       [*];

 

b.                                      [*];

 

c.                                       [*];

 

d.                                      [*];

 

e.                                       [*];

 

f.                                         [*];

 

g.                                      [*];

 

h.                                      [*];

 

*Confidential Treatment Requested. Omitted portions filed with the
Commission.

 

13

 

Section 9.3                                      Each [*] shall be
in substantially similar form as Exhibit “C” attached hereto. Each such [*].
With each such [*] submitted, CUBIST shall [*] under this AGREEMENT. [*].

 

Section 9.4                                      CUBIST shall
provide written notification to UNIVERSITY of the date of first occurrence of
NET SALES in each country within [*] days of its occurrence.

 

ARTICLE
10.  PATENT PROSECUTION
AND MAINTENANCE

 

Section 10.1                                CUBIST, at its sole
discretion, may diligently prosecute and maintain PATENT RIGHTS with legal
counsel of its choice, after consultation with UNIVERSITY. CUBIST shall provide
UNIVERSITY with copies of all relevant documentation and keep UNIVERSITY
informed and apprised of the continuing prosecution. UNIVERSITY shall keep any
such documentation and information confidential. The UNIVERSITY shall use its
best efforts to cooperate in such prosecution and maintenance, including, but
not limited to, signing appropriate documents, providing strategic input, and
reviewing documents.

 

Section 10.2                                CUBIST shall pay all
costs and legal fees incurred in the preparation, prosecution and maintenance
of PATENT RIGHTS, including without limitation, any taxes on such PATENT
RIGHTS.

 

Section 10.3                                If CUBIST decides to
abandon or to allow to lapse any of the PATENT RIGHTS, CUBIST shall inform the
UNIVERSITY at least [*] days prior to the effective date of such decision and
the UNIVERSITY shall be given the opportunity to assume responsibility and
control with respect to such PATENT RIGHT, at its cost. Upon transfer of
CUBIST’s responsibility and control with respect to prosecuting, maintaining
and defending any PATENT RIGHTS under the preceding sentence, CUBIST shall
promptly deliver to the UNIVERSITY all necessary files related to the PATENT
RIGHTS with respect to which responsibility has been transferred and shall take
all actions and execute

 

*Confidential Treatment Requested. Omitted portions filed with the
Commission.

 

14

 

all documents reasonably necessary for the UNIVERSITY to assume
prosecution.

 

ARTICLE
11.  PATENT
MARKING

 

CUBIST shall mark all
LICENSED PRODUCTS made, used or sold under the terms of this AGREEMENT, or
their containers, in accordance with all applicable patent marking laws.

 

ARTICLE
12.  BOOKS
AND RECORDS

 

CUBIST shall keep
complete, true and accurate books of account containing all particulars that
may be necessary for the purpose of showing the amounts payable to
UNIVERSITY hereunder. Said books of account shall be kept at CUBIST’S principle
place of business or the principal place of business of the appropriate
division of CUBIST to which this AGREEMENT relates. Said books and the
supporting data shall be open at all reasonable times for [*] following the end
of the calendar year to which they pertain, to inspection by UNIVERSITY or its
agents, upon notice to CUBIST, for the purpose of verifying CUBIST’S royalty statement
or compliance in other respects with this AGREEMENT. Should such inspection
lead to the discovery of a greater than [*] discrepancy in reporting to
UNIVERSITY’S detriment, CUBIST agrees to pay the full cost of such inspection.

 

ARTICLE
13.  TERMINATION
BY UNIVERSITY

 

Section 13.1                                If CUBIST should (a)
fail to deliver to UNIVERSITY any statement or report required hereunder when
due; (b) fail to make any payment at the time that the same should be due; (c)
violate or fail to perform any covenant, condition, or undertaking of this
AGREEMENT to be performed by it hereunder; or (d) file a bankruptcy action, or
have a bankruptcy action against it, or become insolvent, enter into a
composition with creditors or have a receiver appointed for it; then UNIVERSITY

 

*Confidential Treatment Requested. Omitted portions filed with the
Commission.

 

15

 

may give
written notice of such default to CUBIST. If CUBIST should fail to cure such
default within ninety (90) days of such notice, the rights, privileges, and
license granted hereunder shall automatically terminate.

 

Section 13.2                                If CUBIST shall cease
to carry on its business with respect to the rights granted in this AGREEMENT,
this AGREEMENT shall terminate upon thirty (30) day written notice by
UNIVERSITY.

 

Section 13.3                                No termination of this
AGREEMENT by UNIVERSITY shall relieve CUBIST of its obligation to pay any
royalty or license fees due or owing at the time of such termination and shall
not impair any accrued right of UNIVERSITY. CUBIST shall pay all attorneys’
fees and costs incurred by UNIVERSITY in enforcing any obligation of CUBIST or
accrued right of UNIVERSITY. Articles 8, 12, 13.3, 20, 22, 26, 27, and 28.7
shall survive any termination of this AGREEMENT.

 

ARTICLE
14.  TERMINATION
BY CUBIST

 

Section 14.1                                CUBIST
may terminate this AGREEMENT at any time and from time to time without
cause, by giving written notice thereof to UNIVERSITY. Such termination shall
be effective ninety (90) days after such notice and all CUBIST’S rights
associated therewith shall cease as of that date.

 

Section 14.2                                Any termination
pursuant to Section 14.1 shall not relieve CUBIST of any obligation or
liability accrued hereunder prior to such termination, or rescind or give rise
to any right to rescind any payments made or other consideration given to
UNIVERSITY hereunder prior to the time such termination becomes effective. Such
termination shall not affect in any manner any rights of UNIVERSITY arising
under this AGREEMENT prior to the date of such termination.

 

*Confidential Treatment Requested. Omitted portions filed with the
Commission.

 

16

 

ARTICLE
15.  DISPOSITION
OF LICENSED PRODUCTS ON HAND

 

Upon expiration or
termination of this AGREEMENT by either party, CUBIST shall provide UNIVERSITY
with a [*]. CUBIST may dispose of any such [*] within the [*] day period
following such expiration or termination, [*].

 

ARTICLE
16.  WARRANTY
BY UNIVERSITY

 

Section 16.1                                UNIVERSITY warrants that
it has the lawful right to grant the license set forth in this AGREEMENT.

 

Section 16.2                                EXCEPT AS EXPRESSLY PROVIDED IN SECTION
16.1, THE PARTIES ACKNOWLEDGE AND AGREE THAT UNIVERSITY HAS MADE NO
REPRESENTATIONS OR WARRANTIES, EXPRESS OR IMPLIED, INCLUDING BUT NOT LIMITED
TO, WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. IN NO
EVENT SHALL UNIVERSITY BE HELD RESPONSIBLE FOR ANY SPECIAL, INDIRECT OR
CONSEQUENTIAL DAMAGES ARISING OUT OF THE USE OF PATENT RIGHTS, EVEN IF
UNIVERSITY IS ADVISED IN ADVANCE OF THE POSSIBILITY OF SUCH DAMAGES.

 

Section 16.3                                Nothing in this
AGREEMENT shall be construed as:

 

(a)                                  a warranty or representation by UNIVERSITY as to the
validity or scope of any PATENT RIGHTS.

 

(b)                                 a warranty or representation by UNIVERSITY that
anything made, used, sold or otherwise disposed of pursuant to any license
granted under this AGREEMENT is or will be free from infringement of patents of
THIRD PARTIES.

 

(c)                                  an obligation by UNIVERSITY to bring or prosecute
actions or suits

 

*Confidential Treatment Requested. Omitted portions filed with the
Commission.

 

17

 

against THIRD PARTIES for patent infringement, except as
expressly provided in Article 17 hereof.

 

(d)                                 conferring by implication, estoppel or otherwise any
license or rights under any patents of UNIVERSITY other than PATENT RIGHTS.

 

Section 16.4                                Any breach of the
representations or warranties made in this Article 16 shall entitle CUBIST to a
refund of all payments made to UNIVERSITY as consideration for the rights
granted under this AGREEMENT, and said refund shall be the sole remedy
available to CUBIST for breach or violation of any provisions contained in this
Article 16.

 

ARTICLE
17.  INFRINGEMENT

 

Section 17.1                                If either party learns
of a claim of infringement of or by any of UNIVERSITY’S PATENT RIGHTS licensed
under this AGREEMENT, that party shall give written notice of such claim to the
other party. CUBIST shall then use reasonable efforts to terminate such
infringement. In the event CUBIST fails to abate the infringing activity within
[*] days after such written notice or to bring legal action against the THIRD
PARTY, either party may bring suit for patent infringement, naming the
other party as nominal party plaintiff. No settlement, consent judgment or
other voluntary final disposition of the suit may be entered into without
the consent of UNIVERSITY, which consent shall not be unreasonably withheld.

 

Section 17.2                                Any such legal action
shall be at the expense of the party by whom suit is filed, hereinafter
referred to as the “Litigating Party”. Any damages or costs recovered by the
Litigating Party in connection with a legal action filed by it hereunder, and
remaining after the Litigating Party is reimbursed for its costs and expenses
reasonably incurred in the lawsuit, and after any royalties or other payments
due to UNIVERSITY under Articles 4, 5 and 6 are paid, shall be equally divided
between CUBIST and UNIVERSITY.

 

Section 17.3                                CUBIST and UNIVERSITY
shall cooperate with each other in litigation

 

*Confidential Treatment Requested. Omitted portions filed with the
Commission.

 

18

 

proceedings instituted hereunder, provided that such cooperation shall be
at the expense of the Litigating Party, and such litigation shall be controlled
by the Litigating Party.

 

ARTICLE
18.  WAIVER

 

No waiver by either party
hereto of any breach or default of any of the covenants or agreements herein
set forth shall be deemed a waiver as to any subsequent and/or similar breach
or default.

 

ARTICLE
19.  ASSIGNABILITY

 

This AGREEMENT is binding
upon and shall inure to the benefit of the parties, their successors and
assigns. Subject to CUBIST’S rights to sublicense, as set forth in Article 4
hereof, CUBIST may assign this AGREEMENT only with the written consent of
UNIVERSITY, which consent shall not be unreasonably withheld.

 

ARTICLE
20.  INDEMNIFICATION
BY CUBIST 

 

CUBIST shall
indemnify, hold harmless and defend UNIVERSITY, the University of Utah, and
their respective officers, employees and agents, against any and all claims,
suits, losses, damages, costs, liabilities, fees and expenses (including
reasonable fees of attorneys) resulting from or arising out of exercise of: a)
any license granted under this AGREEMENT; or b) any act, error, or omission of
CUBIST, its agents, employees or SUBLICENSEES, except where such claims, suits,
losses, damages, costs, fees, or expenses result solely from the negligent acts
or omissions, or willful misconduct of the UNIVERSITY, its officers, employees
or agents. CUBIST shall give UNIVERSITY [*] notice of any claim or suit
instituted of which CUBIST has knowledge that in any way, directly or
indirectly, affects or might affect UNIVERSITY, and UNIVERSITY shall have the
right at its own expense to participate in the defense of the same.

 

*Confidential Treatment Requested. Omitted portions filed with the
Commission.

 

19

 

ARTICLE
21.  INDEMNIFICATION
BY UNIVERSITY

 

The UNIVERSITY is a
governmental entity and is subject to the Utah Governmental Immunity Act,
Section 63-30-1 et seq., Utah Code Ann. (1997 and Supp. 2000)(the “Act”).
Section 63-30-34 of the Act expressly limits judgments against the UNIVERSITY,
its officers and employees to $250,000 per person and $500,000 per occurrence
for bodily injury and death and to $100,000 per occurrence for property damage.
Subject to the provisions of the Act, UNIVERSITY shall indemnify, defend and
hold harmless CUBIST, its officers, agents, and employees against any and all
claims, suits, losses, damages, costs, liabilities, fees, and expenses
(including reasonable fees of attorneys) resulting solely from the negligent
acts or omissions of UNIVERSITY, its officers, agents or employees in
connection with this AGREEMENT. Nothing in this AGREEMENT shall be construed as
a waiver of any rights or defenses applicable to UNIVERSITY under the Act,
including without limitation, the provisions of Section 63-30-34 regarding
limitation of judgments. UNIVERSITY shall give CUBIST timely notice of any
claim or suit instituted of which UNIVERSITY has knowledge that in any way,
directly or indirectly, affects or might affect CUBIST, and CUBIST shall have
the right at its own expense to participate in the defense of the same.

 

ARTICLE
22.  LATE
PAYMENTS

 

In the event royalty
payments or other fees are not received by UNIVERSITY when due hereunder,
CUBIST shall pay to UNIVERSITY interest charges at the rate of  [*] over the prime lending rate as published
in the Wall Street Journal at the time of invoice on the total royalties or
fees due for the reporting period.

 

*Confidential Treatment Requested. Omitted portions filed with the
Commission.

 

20

 

ARTICLE
23.  NOTICES

 

Any payment, notice or
other communication required or permitted to be given to either party hereto
shall be in writing and shall be deemed to have been properly given and
effective: (a) on the date of delivery if delivered in person during
recipient’s normal business hours; or (b) on the date of delivery if delivered
by courier, express mail service or first-class mail, registered or certified.
Such notice shall be sent or delivered to the respective addresses given below,
or to such other address as either party shall designate by written notice
given to the other party as follows:

 

In the case of CUBIST:

 

Alan Watson, Ph.D., MBA

Cubist Pharmaceuticals, Inc.

65 Hayden Avenue

Lexington, MA 02421

 

In the case of UNIVERSITY:

 

UNIVERSITY OF UTAH RESEARCH FOUNDATION

Technology Transfer Office

615 Arapeen Drive, Suite 110

Salt Lake City, UT 84108

 

With a copy to:

 

OFFICE OF GENERAL COUNSEL

University of Utah

309 Park Building

Salt Lake City, Utah
84112

 

ARTICLE
24.  FOREIGN
LAWS

 

Section 24.1                                When required by
local/national law, CUBIST shall register this AGREEMENT, pay all costs and
legal fees connected therewith, and otherwise insure that the local/national
laws affecting this AGREEMENT are fully satisfied.

 

Section 24.2                                CUBIST shall comply
with all applicable U.S. laws dealing with the export of technology or
technical information.

 

*Confidential Treatment Requested. Omitted portions filed with the
Commission.

 

21

 

ARTICLE 25.  RELATIONSHIP
OF PARTIES

 

In assuming and performing the obligations of this
AGREEMENT, CUBIST and UNIVERSITY are each acting as independent parties and
neither shall be considered or represent itself as a joint venturer, partner,
agent or employee of the other.

 

ARTICLE
26.  NON-USE
OF NAMES

 

CUBIST shall not use the
names or trademarks of the University of Utah, or its employees, nor any
adaptation thereof, nor the names of any of their employees, in any
advertising, news releases, promotional or sales literature without prior
written consent obtained from UNIVERSITY, or said employee, in each case,
except that CUBIST may state that it is licensed by UNIVERSITY under one
or more of the patents and/or applications comprising the PATENT RIGHTS.

 

In addition, UNIVERSITY shall not use the names or
trademarks of CUBIST, or its employees, nor any adaptation thereof, nor the
names of any of their employees, in any advertising, news releases, promotional
or sales literature without prior written consent obtained from CUBIST, or said
employee, in each case, except that UNIVERSITY may state that it has
licensed to CUBIST under one or more of the patents and/or applications
comprising the PATENT RIGHTS.

 

ARTICLE
27.  DISPUTE
RESOLUTION

 

Except for the right of
either party to apply to a court of competent jurisdiction for a temporary
restraining order, a preliminary injunction, or other equitable relief to
preserve the status quo or prevent irreparable harm, any and all claims,
disputes or controversies arising under, out of, or in connection with the
AGREEMENT, including any dispute relating to patent validity or infringement,
which the parties shall be unable to resolve within [*] days shall be mediated
in good faith. The party raising such dispute shall promptly advise the other
party of such dispute. By not later than [*] days after the date

 

*Confidential Treatment Requested. Omitted portions filed with the
Commission.

 

22

 

of such notice of
dispute, the party against whom the dispute shall be raised shall select a
mediator in the Salt Lake City area for mediation and such representative shall
schedule a date with such mediator for a hearing. The parties shall enter into
good faith mediation and shall share the costs equally. If the representative
of the parties have not been able to resolve the dispute within [*] business
days after such mediation hearing, then the parties may resort to any
legal or equitable remedies available to them.

 

ARTICLE
28.  GENERAL
PROVISIONS

 

Section 28.1                                The headings of the
several sections 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.

 

Section 28.2                                This AGREEMENT shall
not be binding upon the parties until it has been signed herein below by or on
behalf of each party, in which event it shall be effective as of the date first
above written.

 

Section 28.3                                No amendment or
modification of this AGREEMENT shall be valid or binding upon the parties
unless made in writing and signed by both parties.

 

Section 28.4                                This AGREEMENT embodies
the entire understanding of the parties and supersedes all previous
communications, representations or understandings, either oral or written,
between the parties relating to the subject matter hereof.

 

Section 28.5                                The provisions of this
AGREEMENT are severable, and in the event that any provision of this AGREEMENT
shall be determined to be invalid or unenforceable under any controlling body
of the law, such invalidity or unenforceablility shall not in any way affect
the validity or enforceability of the remaining provisions hereof.

 

Section 28.6                                This AGREEMENT
may be signed in counterparts, each of which when taken together shall
constitute one fully executed document. Each individual executing this
AGREEMENT on behalf of a legal entity does hereby represent and warrant to each
other person so signing that he or she has been duly authorized to execute this
AGREEMENT on behalf of such entity.

 

*Confidential Treatment Requested. Omitted portions filed with the
Commission.

 

23

 

Section 28.7                                In the event of any
litigation, arbitration, judicial reference or other legal proceeding involving
the Parties to this AGREEMENT to enforce any provision of this AGREEMENT, to
enforce any remedy available upon default under this AGREEMENT, or seeking a
declaration of the rights of either Party under this AGREEMENT, the prevailing
Party shall be entitled to recover from the other such attorney’s fees and costs
as may be reasonably incurred, including the costs of reasonable
investigation, preparation and professional or expert consultation incurred by
reason of such litigation, arbitration, judicial reference, or other legal
proceeding.

 

IN WITNESS WHEREOF, UNIVERSITY
and CUBIST have executed this AGREEMENT by their respective officers hereunto
duly authorized, on the day and year hereinafter written.

 

	
  “CUBIST”

  CUBIST PHARMACEUTICALS, INC.

  	
   

  	
  “UNIVERSITY”

  UNIVERSITY OF UTAL RESEARCH

  FOUNDATION

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Alan Watson

  	
   

  	
  By:

  	
  /s/ Raymond F. Gesreland

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Name:

  	
  Alan Watson

  	
   

  	
  Name:

  	
  Raymond F. Gesteland

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Title:

  	
  Senior Vice President

  	
   

  	
  Title:

  	
  President

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Date:

  	
  12/31/01

  	
   

  	
  Date:

  	
  12-28-01

  

 

 

*Confidential Treatment Requested. Omitted portions filed with the
Commission.

 

24

 

EXHIBIT “A”

Patents and Patent
Applications

 

[*].

 

 

*Confidential Treatment Requested. Omitted portions filed with the
Commission.

 

25

 

EXHIBIT “B”

Due Diligence
Report for

U-3241 COMPLEXES
TO IMPROVE ORAL ABSORPTION OF

POORLY ABSORBABLE
ORAL ANTIBIOTICS

 

[*]

 

 

*Confidential Treatment Requested. Omitted portions filed with the
Commission.

 

26

 

EXHIBIT “C”

Quarterly Royalty
Report for

U-3241 COMPLEXES
TO IMPROVE ORAL ABSORPTION OF

POORLY ABSORBABLE
ORAL ANTIBIOTICS

 

[*]

 

 

*Confidential Treatment Requested. Omitted portions filed with the
Commission.

 

27

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