Document:

sgmo-ex103_154.htm

 

Exhibit 10.3

CONFIDENTIAL

NOTE: Portions of this Exhibit are the subject of a Confidential Treatment Request by the Registrant to the Securities and Exchange Commission (the “Commission”).  Such portions have been redacted and are marked with a “[***]” in the place of the redacted language.  The redacted information has been filed separately with the Commission.

First Amendment to the License Agreement

This First Amendment to the License Agreement (the “First Amendment”) is made and entered into as of September 20, 2016 (the “First Amendment Effective Date”) by and between Sangamo BioSciences, Inc., a Delaware corporation having its principal place of business at Point Richmond Tech Center, 501 Canal Boulevard, Suite A100, Richmond, California 94804 (“Sangamo”), and Open Monoclonal Technology, Inc., a Delaware corporation with offices at 3911 Sorrento Valley Boulevard, Suite 110, San Diego, CA 92121 (“OMT”).  OMT and Sangamo are individually referred to herein as a “Party” or collectively as the “Parties”. 

Recitals

A. OMT and Sangamo are parties to a License Agreement effective as of April 2, 2008, as modified by that certain letter agreement dated October 1, 2008 (the “Agreement”), under which Sangamo granted to OMT a license to use, for the purpose of producing antibodies for clinical and commercial purposes, certain genetically modified rats that were generated using Sangamo’s proprietary zinc finger protein technology. 

B. OMT and Sangamo desire to amend the Agreement in accordance with Section 10.7 of the Agreement to expand the scope of the license to include a new antibody-producing rat with an additional genetic modification generated using Sangamo’s proprietary zinc finger protein technology, under the terms and conditions of this First Amendment as set out herein. 

Now, Therefore, the Parties agree as follows:

1. First Amendment of the Agreement

The parties hereby agree to amend the terms of the Agreement as provided below, effective as of the First Amendment Effective Date. Where the Agreement is not explicitly amended, the terms of the Agreement will remain in force. Capitalized terms used in this First Amendment that are not otherwise defined herein shall have the same meanings as such terms are given in the Agreement. 

1.1 Section 1.10 shall be amended to read in its entirety as follows:

“1.10 “Modified Rat” means (a) a rat having a genomic modification that results from the use of the ZFN Deliverable created in the course of work performed under the Sigma Agreement, (b) any progeny or components thereof or any biological material derived therefrom (other than OMT Products), and (c) a DKO Rat.”

1

DB2/ 30701959.1

NOTE: Portions of this Exhibit are the subject of a Confidential Treatment Request by the Registrant to the Securities and Exchange Commission (the “Commission”).  Such portions have been redacted and are marked with a “[***]” in the place of the redacted language.  The redacted information has been filed separately with the Commission.

 

1.2 Section 1.18 shall be amended to read in its entirety as follows: 

“1.18 “Sangamo Patents” means all Patents that (a) are Controlled by Sangamo or its Affiliates as of the Effective Date or anytime during the term of this Agreement, and (b) claim or cover the Modified Rats or Aire-KO Rats or the use of the Modified Rats or Aire-KO Rats.”

1.3 The following new Section 1.26 shall be added to read in its entirety as follows:

“1.26 “Aire Gene” means the rat autoimmune regulator gene defined by the following NCBI gene ID:  [***].” 

1.4 The following new Section 1.27 shall be added to read in its entirety as follows:

“1.27 “Aire-KO Rat” means (a) a rat having a genomic modification at the Aire Locus, which genomic modification (i) was created using ZFPs pursuant to a research license from Sigma’s sublicensee Sage Labs, Inc. and (ii) results in eliminated or significantly reduced expression of the Aire Gene or the expression by the Aire Gene of a protein with significantly reduced function, and (b) any progeny thereof.”  

1.5 The following new Section 1.28 shall be added to read in its entirety as follows:

“1.28 “Aire Locus” means the location of the Aire Gene in the rat genome defined by the following NCBI reference location: [***].” 

1.6 The following new Section 1.29 shall be added to read in its entirety as follows:

“1.29 “Discovery” means that the therapeutic entity is not introduced artificially into the animal but rather is a product of endogenous processes that occur within the animal (albeit genetically modified) and whose exact chemical structure could not have been predicted a priori (e.g., an antibody).”

1.7 The following new Section 1.30 shall be added to read in its entirety as follows:

“1.30 “DKO Product” means any OMT Product wherein the relevant Modified Rat is a DKO Rat.” 

1.8 The following new Section 1.31 shall be added to read in its entirety as follows: 

“1.31 “DKO Rat” means (a) a rat that (i) is the progeny, whether direct or indirect, from the breeding of a Modified Rat described in Section 1.10(a) with a Aire-KO Rat, (ii) has both (1) the genomic modification at the Target that is found in such Modified Rat and (2) the genomic modification at the Aire Locus that is found in such Aire-KO Rat, and (iii) is a Modified Animal wherein the Discovery or creation of a new 

 

*** CONFIDENTIAL PORTIONS OMITTED AND FILED SEPARATELY WITH THE COMMISSION

 

2

DB2/ 30701959.1

NOTE: Portions of this Exhibit are the subject of a Confidential Treatment Request by the Registrant to the Securities and Exchange Commission (the “Commission”).  Such portions have been redacted and are marked with a “[***]” in the place of the redacted language.  The redacted information has been filed separately with the Commission.

 

therapeutic can be made, and (b) any progeny or components thereof or any biological material derived therefrom other than DKO Products.” 

1.9 The following new Section 1.32 shall be added to read in its entirety as follows: 

“1.32 “Modified Animal” means a multicellular non-human animal, or tissues or organs from such an animal, the genome or genetic composition of which has been modified through the use (whether directly or indirectly) of a ZFP.”

1.10 Section 2.1 shall be amended to read in its entirety as follows:

“2.1 Licenses to OMT. Subject to the terms and conditions of this Agreement, Sangamo agrees to grant to OMT a royalty-bearing, worldwide, non-exclusive license under the Sangamo Technology to use, distribute, reproduce, modify (without the use of ZFN Deliverables) and sell Modified Rats solely for the purpose of making, using and selling OMT Products.  Notwithstanding anything to the contrary in this Agreement, such license (a) does not include a license with respect to any genomic modifications that may be present in a Modified Rat that do not arise from or relate to a modification of the Target or the Aire Gene at the Aire Locus, (b) does not include any rights to any ZFPs and (c) does not include any rights to create or use DKO Rats for any purpose other than the Discovery or creation of new therapeutics, including creation of novel therapeutics through the DKO Rat’s response to stimuli.  Sangamo shall not (nor shall it authorize or assist any Third Party to) develop, use or transfer a ZFN Deliverable for the benefit of itself or any Third Party for use in connection with (whether directly or indirectly) inactivation of rat immunoglobulin expression in rat cells, tissues or whole animals for any purpose other than non-commercial research purposes provided, however, that OMT’s sole remedy for any material breach of this covenant by Sangamo or its Affiliates shall be termination of the OMT’s payment obligations set forth in Section 3 below.”

1.11 Section 3.3 shall be amended to read in its entirety as follows:

“3.3 “Royalties” For each calendar quarter in which there are Net Sales, OMT shall pay a royalty to Sangamo equal to [***] of Net Sales in such quarter.  With respect to OMT Products that are not DKO Products, OMT’s obligation to pay royalties under this Section 3.3 shall expire on a country-by-country basis upon the later of (a) expiration of the last to expire Sangamo Patent that would be infringed by use of the ZFN Deliverable to create or generate a Modified Rat and (b) ten (10) years after First Commercial Sale of the first OMT Product that is not a DKO Product in such country.  With respect to DKO Products, OMT’s obligation to pay royalties under this Section 3.3 shall expire on a country-by-country basis upon the latest of (i) expiration of the last to expire Sangamo Patent that would be infringed by use of the ZFN Deliverable to create or generate a Modified Rat; (ii) expiration of the last to expire Sangamo Patent that 

 

*** CONFIDENTIAL PORTIONS OMITTED AND FILED SEPARATELY WITH THE COMMISSION

 

3

DB2/ 30701959.1

NOTE: Portions of this Exhibit are the subject of a Confidential Treatment Request by the Registrant to the Securities and Exchange Commission (the “Commission”).  Such portions have been redacted and are marked with a “[***]” in the place of the redacted language.  The redacted information has been filed separately with the Commission.

 

would be infringed by use of ZFPs to create or generate an Aire-KO Rat; and (iii) ten (10) years after First Commercial Sale of the first DKO Product in such country.”

1.12 Section 3.4 shall be amended to read in its entirety as follows:

“3.4 “Sublicensee Income” OMT shall pay to Sangamo an amount equal to [***] of Sublicensee Income received by OMT or its Affiliates in such calendar quarter.  With respect to OMT Products that are not DKO Products, OMT’s obligation to pay Sublicensee Income under this Section 3.4 with shall expire on a country-by-country basis upon the later of (a) expiration of the last to expire Sangamo Patent that would be infringed by use of the ZFN Deliverable to create or generate a Modified Rat and (b) ten (10) years after First Commercial Sale of the first OMT Product that is not a DKO Product. With respect to DKO Products, OMT’s obligation to pay royalties under this Section 3.3 shall expire on a country-by-country basis upon the latest of (i) expiration of the last to expire Sangamo Patent that would be infringed by use of the ZFN Deliverable to create or generate a Modified Rat; (ii) expiration of the last to expire Sangamo Patent that would be infringed by use of ZFPs to create or generate a Aire-KO Rat; and (iii) ten (10) years after First Commercial Sale of the first DKO Product.”

1.13 Notice to OMT pursuant to Section 10.4 shall be provided as follows:

 

	
If to OMT:
	
 
	
Open Monoclonal Technology, Inc.

	
 
	
 
	
c/o Ligand Pharmaceuticals Incorporated

	
 
	
 
	
3911 Sorrento Valley Boulevard, Suite 110

	
 
	
 
	
San Diego, CA 92121

	
 
	
 
	
Attention: General Counsel

2. Miscellaneous

2.1 Full Force and Effect.  This First Amendment amends the terms of the Agreement and is deemed incorporated into the Agreement.  The provisions of the Agreement, as amended by this First Amendment, remain in full force and effect.

2.2 Entire Agreement.  The Agreement as amended by this First Amendment sets forth the entire understanding of the parties hereto relating to the subject matter thereof and supersedes all prior agreements and understandings among or between any of the parties hereto relating to the subject matter thereof.

 

 

 

*** CONFIDENTIAL PORTIONS OMITTED AND FILED SEPARATELY WITH THE COMMISSION

 

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DB2/ 30701959.1

NOTE: Portions of this Exhibit are the subject of a Confidential Treatment Request by the Registrant to the Securities and Exchange Commission (the “Commission”).  Such portions have been redacted and are marked with a “[***]” in the place of the redacted language.  The redacted information has been filed separately with the Commission.

 

2.3 Counterparts. This First Amendment may be executed in several counterparts, each of which shall constitute an original and all of which, when taken together, shall constitute one agreement.  The exchange of a fully executed First Amendment (in counterparts or otherwise) by electronic transmission, including by email, or facsimile shall be sufficient to bind the Parties to the terms and conditions of this First Amendment.

 

 

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DB2/ 30701959.1

CONFIDENTIAL

 

In Witness Whereof, the Parties have executed this First Amendment by their proper officers as of the First Amendment Effective Date.

 

	
Sangamo BioSciences, Inc.
	
 
	
Open Monoclonal Technology, Inc.

 

	
By: 
	
 
	
/s/ Curt A. Herberts
	
 
	
By: 
	
 
	
/s/ Matthew W. Foehr

	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
Name: 
	
 
	
Curt A. Herberts
	
 
	
Name: 
	
 
	
Matthew W. Foehr

	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
Title: 
	
 
	
VP of Corporate Development
	
 
	
Title: 
	
 
	
President / COO

 

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DB2/ 30701959.1Exhibit

Exhibit 10.1
KIMBALL INTERNATIONAL, INC.
2016 ANNUAL CASH INCENTIVE PLAN
Background. Your Board believes that the long-term success of your Company depends, in part, on its ability to recruit and retain outstanding individuals as employees and to furnish these employees maximum incentive to improve operations and increase profits. Your Board also believes it is important to align compensation of officers and eligible employees with the interests of Share Owners. In accordance with this belief, your Board, upon recommendation of the Compensation and Governance Committee (“Committee”) of the Board (comprised of independent outside directors), has unanimously adopted and recommends for Share Owner approval, the Kimball International, Inc. 2016 Annual Cash Incentive Plan (the “Plan”).  This Plan is effective for fiscal year 2017 and forward and replaces, in full, the Amended and Restated 2010 Profit Sharing Bonus Plan.
The profit sharing framework of this Plan has been in place since prior to the Company becoming publicly traded in 1976. The Plan measures performance at two levels within the Company: (1) at the consolidated level (“Company”); and (2) at a business unit level for the performance of designated operations within the Company (“Business Unit”). All executive officers and other eligible employees participate at the Company level or a combination of the Company and Business Unit levels.
Goal. The goal of the Plan is to link an employee’s compensation to the financial success of the Company. The intent is to encourage participants to think, act and be rewarded like owners, and to seek out and undertake initiatives that continuously improve the performance of the Company.
Eligibility. Executive officers and all employees (other than temporary employees, employees engaged directly in manufacturing or delivery of product, and employees on a sales incentive plan) are eligible to participate in the Plan (“Participants”). 
Incentive Criteria. The Committee sets the performance measure and performance targets at the beginning of the fiscal year to incent desired results. The performance measure can vary from year to year and may be based on any one or any combination of the following business criteria:  (i) operating income; (ii) earnings per share; (iii) return on capital; (iv) return on assets; (v) economic profit; (vi) market value per share; (vii) EBITDA; (viii) cash flow; (ix) net income (before or after taxes); (x) revenues; (xi) cost reduction goals; (xii) market share; and (xiii) total return to shareholders. The Committee must approve the performance targets (“Targets”) within the first 25% of the period of service to which the Targets relate, but not later than 90 days after the commencement of that period (“Relevant Time Period”). The Committee, within the Relevant Time Period, may make adjustments for non-operating income and loss and other performance measure computation elements as it deems appropriate to provide optimal incentives for eligible employees. If other adjustments are necessary beyond the Relevant Time Period, the NEOs will not be eligible to receive any cash incentive resulting from such adjustments.
Cash Incentive Amounts. The Plan establishes potential cash incentive amounts as a range of percentages of the Participant’s salary, with the cash incentive percentage increasing with higher levels of performance. The Plan also establishes different cash incentive percentage ranges across several Participant categories, setting higher incentive-percentage ranges for Participants who, by virtue of their responsibilities, are expected to have a greater effect on the Company’s financial success. Within the Relevant Time Period, the Committee has the discretion to increase Executive Officer potential cash incentive payout percentages under the Plan with a payout cap of 100 percent of base salary.  The Committee may use this discretion to achieve a desired mix of short-term cash incentives as a percentage of total target compensation for a particular Executive Officer.  At the highest responsibility level, Participants may earn cash incentives of up to 100 percent of base salary. The Plan is designed so that Participants will achieve maximum cash incentives only if the Company achieves maximum targeted performance levels, considering various economic indicators and improvement goals as determined by the Committee. A Participant’s total cash incentive under the Plan may not exceed $1 million for any fiscal year. Awards under the Plan will be determined based on actual future performance. 
Administration. For a particular fiscal year, the Committee must approve the Targets, performance measure computation adjustments, and any other conditions within the Relevant Time Period. At the end of each fiscal year, but before Plan incentives may be paid, the Committee must certify in writing that Targets and other conditions have been satisfied. The Committee does not have the discretion to increase the amount of any cash incentive for the Named Executive Officers. The Board may amend or terminate the Plan effective for future fiscal years. The Board will not, however, amend the Plan without Share Owner approval if such approval is required to comply with Section 162(m) of the Internal Revenue Code or other applicable law or to comply with applicable stock exchange requirements.

Cash Incentive Payments. Cash incentives will be paid during the following fiscal year in two cash installments - 50% in August and 50% in December. If a Participant’s employment is terminated before a scheduled payment date, the former employee will not be entitled to receive that cash incentive payment or any subsequent cash incentive payment, unless the Participant’s termination was caused by retirement after attaining the country-specific retirement age (62 in the U.S.), death, or permanent disability, in which case, that Participant (or estate, in the event of the Participant’s death) will be entitled to receive all cash incentive payments for the previous fiscal year on the scheduled payment date(s), and a pro-rata share for the current fiscal year cash incentive if any which will be paid in full within 21⁄2 months after the end of the Company’s fiscal year.
Repayment, Forfeiture.  After the Committee certifies that Targets and other conditions have been satisfied as described above, no adjustments will be made to reflect any subsequent change in accounting, the effect of federal, state or municipal taxes later assessed or determined, or otherwise.  Notwithstanding the foregoing, the Company reserves the right to, and in appropriate cases, will seek recovery of all or any portion of cash incentive payments made if (i) the amount of the cash incentive payment was calculated based upon the achievement of certain financial results that were subsequently the subject of a restatement of all or a portion of the Company’s financial statements; (ii) the Participant engaged in intentional misconduct that caused or partially caused the need for such a restatement; and (iii) the amount of the cash incentive payment that would have been awarded to a Participant would have been lower than the amount actually awarded had the financial results been properly reported.  Further, the Company is not limited in its power to take other actions as it deems necessary to remedy the misconduct, prevent its recurrence and, if appropriate, based on all relevant facts and circumstances, punish the wrongdoer in a manner it deems appropriate. 
The foregoing policy may be amended as required to comply with (i) any applicable listing standards of a national securities exchange adopted in accordance with Section 10D of the Exchange Act (regarding recovering of erroneously awarded compensation) and any implementing rules and regulations of the U.S. Securities and Exchange Commission adopted thereunder; (ii) similar rules under the laws of any other governing jurisdiction; and (iii) any policies adopted by the Company to implement such requirements, all to the extent determined by the Company in its discretion to be applicable to a Participant.

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