Document:

Exhibit1026BAmendmenttoExelaLicenseAgreement

[***] Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

Exhibit 10.26B
AMENDMENT NO. 1 TO THE LICENSE AGREEMENT
THIS AMENDMENT NO. 1 TO THE LICENSE AGREEMENT, together with the exhibits attached hereto (the “Amendment”), is entered into and effective as of December 28, 2009 (the “Amendment Effective Date”), by and among Exela PharmSci, Inc., a Virginia corporation, having a place of business at 11710 Plaza America Drive, Suite 2000, Reston, Virginia 20190 (“Exela” or “Licensor”) and Codexis, Inc., a Delaware corporation, having a place of business at 200 Penobscot Drive, Redwood City, California 94063 (“Codexis” or “Licensee”) (each a “Party,” and collectively, the “Parties”).  Except as expressly provided herein, capitalized terms used in this Amendment shall have the meaning set forth in the Agreement (defined below).
BACKGROUND
WHEREAS, Exela granted Codexis certain exclusive rights and licenses to Licensed Technology pursuant to that certain License Agreement dated September 18, 2007 (the “Agreement”).
WHEREAS, Exela desires to obtain from Codexis, and Codexis is willing to grant to Exela, certain exclusive rights and licenses under Codexis Licensed Technology (as defined below). 
WHEREAS, in connection with such license grant, the Parties desire to amend certain sections of the Agreement to reflect such license grant and the development and commercialization, by Exela, of a product covered by such Codexis Licensed Technology.
AGREEMENT
NOW THEREFORE, the Parties agree as follows:
I.    For the purposes of Article 6 (Payments, Reports and Records) and Sections 2.6 (First Commercial Sale), 2.7 (Fully Burdened Manufacturing Cost) (including, for clarity, Exhibit A), 2.15 (Milestone Payments), 2.16 (Net Sales), 2.17 (Profit), 2.20 (Sublicense Revenue), 8.7 (Defense of Infringement Claim), and 11.3 (Covenants of Licensor), (i) references to “LICENSEE” shall be replaced with “Exela” and Exela hereby assumes all such rights and obligations under the foregoing sections, (ii) references to “LICENSOR” shall be replaced with “Codexis” and Codexis hereby assumes all such rights and obligations under the foregoing sections, and (iii) references to “Licensed Technology” shall be replaced with “Codexis Licensed Technology”.   
II.    Article 2 (Definitions) of the Agreement is hereby amended as follows:
A.    The definition of “Licensed Product” as set forth in Section 2.13 is hereby deleted in its entirety and replace with the following:  
2.13    “Licensed Product” means any product that, the manufacture, use or sale of which (a) is covered by the Licensed Patent Rights; or (b) involves the use of Licensed Know-How or Codexis Licensed Know-How.

B.    The following definitions are added:        
2.23      “Codexis Licensed Know-How” means technology, information, expertise, know-how and/or trade secrets owned or controlled by Codexis relating to the manufacture and/or use of Licensed Product including without limitation any Improvement owned or otherwise controlled by Codexis during the term of this Agreement.    
2.24      “Codexis Licensed Technology” means all Licensed Technology and Codexis Licensed Know-How.
III.    Article 3 (Grant) of the Agreement is hereby amended as follows:
A.    Section 3.2 (Reservation of Rights) is hereby deleted in its entirety and replaced with the following:
3.2    Reservation of Rights.  Notwithstanding anything to the contrary, Codexis retains the right to use the Codexis Licensed Technology for internal research purposes and for the benefit of Exela, including the purpose set forth in Section 5.2.2.  For purposes of clarification, (i) any Improvement discovered by Codexis as a result of such research shall be included in the Codexis Licensed Technology and subject to the license grant set forth below in Section 3.4, and (ii) any Improvement discovered by Exela as a result of the use of the Licensed Technology by Exela for internal research purposes for the benefit of Codexis, shall be included in the Licensed Technology and subject to the license grant set forth in Section 3.1.
B.    The following Section 3.4 is added as follows:
3.4    License Grant Back.  Effective on the Amendment Effective Date and subject to Sections 3.2 and 5.2.2, Codexis hereby grants to Exela an exclusive right and license, including the right to grant sublicense rights, under Codexis Licensed Technology to make, have made, use, offer to sell, sell, and import Licensed Products in the Territory.
IV.    Article 5 (Development) is hereby deleted in its entirety and replaced with the following:
5.1    Efforts of Exela.  Exela shall use commercially reasonable efforts to (a) develop and commercialize Licensed Products in the United States, at Exela’s cost and expense, including without limitation causing an ANDA to be filed on Exela’s behalf with respect to a Licensed Product, or (b) sublicense the Codexis Licensed Technology to a Third Party, such Third Party to be reasonably acceptable to Codexis, to develop and commercialize Licensed Products in the United States.  The Parties agree that time is of the essence.  Exela covenants that such Licensed Products shall be manufactured in accordance with the formulation set forth in Exhibit C, unless Exela obtains Codexis’ prior written consent.  In the event that Exela determines, in Exela’s sole discretion, to grant a sublicense under the Codexis Licensed Technology, (i) Exela shall provide Codexis an opportunity to review and comment upon the terms and conditions of such sublicenses, and (ii) such sublicenses shall require the sublicensee to file an ANDA with respect to a Licensed Product.  For purposes of clarification, as between the Parties, Exela shall own all Regulatory Filings.

[***] Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

5.2    Responsibilities of Codexis.  
5.2.1    Codexis shall provide to Exela or its designee copies of any and all documentation, information and materials, including without limitation, tangible embodiments of Codexis Licensed Technology, that are within Codexis’ possession and which Codexis has the right to provide to Exela that are necessary or useful for the manufacture of Licensed Products.  
5.2.2    Codexis will use commercially reasonable efforts to conduct an in vitro study for inclusion in Exela’s 505(b)(2) application; provided that in the event the Licensed Product available to Codexis as of the Amendment Effective Date is not reasonably acceptable for use in such in vitro study, either prior to or after the completion of such in vitro study, the Parties will discuss in good faith the best method of obtaining sufficient Licensed Product to enable completion of such in vitro study.  
5.3    Assignment of Certain Third Party Agreements by Codexis.  

5.3.1    Codexis hereby assigns to Exela all of Codexis’ rights, title and interest in and to, and obligations under, certain third-party agreements set forth in Exhibit D (as attached to this Amendment), and Exela hereby assumes all rights, title and interest in and to, and obligations under, such third-party agreements.  

5.3.2     Codexis shall use commercially reasonable efforts to obtain the requisite consents to transfer the third-party agreements set forth in Exhibit E (as attached to this Amendment) and upon receipt of such consents, Codexis shall assign to Exela, and Exela shall assume, all rights, title and interest in and to, and obligations under, such third-party agreements.

5.4    Responsibilities of Exela.  In the event that the practice of the license granted by Exela to Codexis under Section 3.1 or granted by Codexis to Exela under Section 3.4 is found by a court of competent jurisdiction to infringe any intellectual property rights of any Third Party, Exela shall use its best efforts, at Exela’s sole cost and expense, to develop a non-infringing formulation for Compound and will license such formulation to Codexis under terms contained herein.
V.    Article 6 (Payments, Reports and Records) is hereby amended as follows:
A.    Sections 6.1.1 (Milestone Payments) and 6.1.2 (Profit Share) are hereby deleted in their entirety and replaced with the following:
6.1.1    Milestone Payments.  Exela shall pay to Codexis an amount equal to (a) [***] percent ([***]%) of the first [***] Dollars ($[***]) in Milestone Payments received and fully earned by Exela, and (b) [***] percent ([***]%) of Milestone Payments received and fully earned by Exela in excess of [***] Dollars ($[***]).
6.1.2    Profit Share.  Exela shall pay to Codexis an amount equal to [***] percent ([***]%) of Profits of Licensed Products in the Territory that are received and fully earned by Exela.

[***] Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

B.    Section 6.2 is hereby deleted in its entirety.
VI.    Article 8 (Intellectual Property) is hereby amended as follows:
A.    Section 8.1 (Ownership) is hereby deleted in its entirety and replaced with the following:
8.1       Ownership.  Codexis acknowledges that Exela owns or otherwise controls all right, title, and interest in, to, and under the Licensed Technology.  Exela acknowledges that Codexis owns or otherwise controls all right, title and interest in, to and under the Codexis Know-How.  Ownership of patents and patent applications covering Improvements shall be determined in accordance with the rules of inventorship under U.S. patent law.  
B.    The following sentence in Section 8.2: 
“LICENSOR and LICENSEE shall share equally all prosecution and maintenance expenses; provided, however, that in the event that LICENSEE funds the development of the Exhibit Batches for any Licensed Product, LICENSEE shall pay [***] percent ([***]%) of such costs incurred after the date of ANDA filing for such Licensed Product and LICENSOR shall pay [***] percent ([***]%) of such costs” 
is hereby deleted in its entirety and replaced by the following: 
“Codexis shall pay [***] percent ([***]%) of all prosecution, filing and maintenance costs and Exela shall pay [***] percent ([***]%) of such costs.”
VII.    Article 9 (Term and Termination) is hereby amended as follows:
A.    Sections 9.2 (Termination Upon Material Breach), 9.3 (Termination by Licensee) and 9.5 (Consequences of Expiration or Termination) are hereby deleted in their entirety and replaced with the following:
9.2      Termination Upon Material Breach.  
9.2.1    Upon any breach of, or default by Exela under Sections 5.1, 5.4 or 6.1 of this Agreement (each, a “Material Breach”), Codexis may, in addition to any other rights and remedies it may have at law or in equity, terminate the rights and licenses granted hereunder to Exela by [***] ([***]) days written notice to Exela.  Said notice shall become effective at the end of such period unless during said period Exela cures such Material Breach (if curable).
9.2.2    Upon any other breach or default by Exela not covered under Section 9.2.1 (each, a “Non-Material Breach”), Codexis shall notify Exela and Exela shall use commercially reasonable efforts to promptly remedy such Non-Material Breach.   For the sake of clarity, Codexis may not terminate the rights and licenses granted hereunder to Exela but reserves any other rights and remedies it may have at law or in equity, provided that Exela demonstrates to Codexis that it has undertaken precautions to prevent any further such Non-Material Breaches.  

[***] Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

9.3    Termination by Exela.  Exela shall have the right to terminate the rights and licenses granted to each Party pursuant to this Amendment  at any time upon [***] ([***]) days written notice to Codexis in the event that (a) the commercialization of any Licensed Product by Exela creates a conflict with any of Exela’s partners, or (b) Exela makes a good faith determination that any Licensed Product is not suitable for commercial use, where "not suitable for commercial use" means, for example, that such Licensed Product is not safe, not effective, unstable, impure, fails to scale up, fails analytical validation or fails to have suitable shelf life; provided that such unsuitability is not caused by the API supplied by Exela.

9.5      Consequences of Expiration or Termination.  Upon expiration of this Agreement in accordance with Section 9.1, but not early termination, the rights and licenses granted by Codexis to Exela pursuant to Article 3 shall become fully paid-up, royalty-free and irrevocable.  In the event of termination of this Agreement, each Party shall promptly return, or at the other Party’s request destroy, any Confidential Information of the other Party in such Party’s possession or control at the time of termination.  In the case of termination (a) by Codexis pursuant to Section 9.2, or (b) by Exela pursuant to Section 9.3, the rights and licenses granted hereunder to Exela shall terminate, and for the avoidance of doubt, the rights and licenses granted under the Agreement to Codexis shall remain in full force and effect.  In the case of termination by Codexis pursuant to Section 9.2, Exela shall supply Codexis with API for any Licensed Product at a transfer price equal to the [***] for such API plus [***] percent ([***]%); provided that a court of competent jurisdiction has not held that the Licensed Technology infringes the intellectual property rights of any Third Party; provided further that such supply does not conflict with any contractual obligations of Exela.  In the event of any termination of this Agreement, (i) any sublicense granted by Exela prior to the effective date of such termination shall survive such termination, and (ii) all sublicense royalties or other sublicense-related consideration that the sublicense would have owed to Exela under such sublicense shall be paid by such sublicensee to Codexis.
B.    Section 9.4 (Termination by Licensor) is hereby deleted in its entirety.
VIII.    Except to the extent amended by this Amendment, all of the definitions, terms, provision and conditions of the Agreement shall remain in full force and effect.  The Agreement and this Amendment shall be read and construed together as a single agreement.
IX.    This Amendment may be executed in counterparts, each of which shall be deemed an original and all of which together shall constitute one instrument.

[***] Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

IN WITNESS WHEREOF, the Parties have cause this Amendment to be executed by their respective duly authorized officers as of the Amendment Effective Date, each copy of which will for all purposes be deemed to an original.

 EXELA PHARMSCI, INC.

By: [***]
Name: [***]
Title: [***]

CODEXIS, INC.

By:  [***]
Name:  [***]
Title:  [***]

[***] Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

Exhibit C
Formulation Specification 
 
Composition comparison

[***]

[***] Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

Exhibit D
Services Agreement between [***] and Codexis, Inc., dated August 1, 2006.
Commercial Supply Agreement between [***] and Codexis, Inc., dated March 19, 2007.

[***] Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

Exhibit E

Master Services Agreement between [***] and Codexis, Inc., dated October 8, 2007.
Quality Agreement between [***] and Codexis, Inc., dated August 5, 2009.
Master Services Agreement between [***] and Codexis, Inc., dated October 16, 2007.

[***] Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.Exhibit1027MHoOfferLetter2

Codexis, Inc. 
200 Penobscot Drive 
Redwood City, CA  94063 
Tel:  650.421.8100 
Fax: 650.421-8135 
www.codexis.com 

Exhibit 10.27

August 20, 2009

Mark Ho
[ADDRESS]

Dear Mark:

On behalf of Codexis, I am pleased to extend to you this offer of employment as
Director of Technical Accounting & Reporting, this position will report to Brian Dowd. Your position is a full-time position.  

Your employment is subject to proof of your legal right to work in the United States, and to your completing the United States Citizenship and Immigration Service Employment Eligibility Verification Form I-9. Your employment is also subject to successful verification of your professional and character references.

Compensation

If you accept this offer and you begin employment with Codexis, you will receive an initial salary of $165,000.00 per year, payable semi-monthly. 
    
You will also be eligible to participate in the Codexis Employee Incentive Compensation Plan.  Your incentive plan target will be 20% of your base salary.  If Codexis meets all of its corporate goals for 2009, and you also perform well against your individual and group goals, to be established with your supervisor, you can expect to receive an incentive plan payment at or near this target after our Board’s approval of our 2009 year-end financial statements.  Naturally, based on the Company’s performance and your individual and group’s goal performance, your actual bonus may be more or less than this target.  Any incentive plan payment you receive under this plan will be prorated based on your service during 2009 as a percentage of the full year; and no bonus will be paid unless you are an employee of the Company on the date the bonus is paid.  Please also note that this Plan does not constitute a contract of employment or alter the “at will” status of your employment.

You will also receive a sign-on bonus of $8,000.00, which will be paid out in your first pay check.  If you choose to resign employment within a year, you will be required to repay this sign-on bonus, as follows:

		
	a)
	within three months of your date of hire:  100%

		
	b)
	between three and twelve months:  prorated monthly. 

Stock Options

Codexis, Inc. 
200 Penobscot Drive 
Redwood City, CA  94063 
Tel:  650.421.8100 
Fax: 650.421-8135 
www.codexis.com 

Subject to approval by the Codexis Board of Directors, you will be granted an option to purchase 15,000 shares of stock at an exercise price equal to the fair market value of the shares on the date the option is granted.  The shares subject to the Option will vest one fourth or 25% on the first anniversary of your employment start date and thereafter will vest as to 1/48 of the shares subject to the Option per month for the following 36 months until the option is 100% vested.   Your stock options will be subject to the terms of the Codexis Inc. 2002 Stock Plan and will be conditioned on your acceptance of an appropriate stock option agreement. 

Employee Benefits

As a full time employee, you will be eligible for the Codexis employee benefit plans, including medical, dental, vision, long and short-term disability plans, life insurance, a 401(k) savings plan, and our flexible time off plan that allows full time employees to accrue 20 days of flexible time off each year of employment.  

Other Terms and Conditions of Employment

All employment with Codexis is at will.  “Employment at will” means that you are free to resign from your employment at any time, for any reason or no reason at all, with or without cause and with or without notice. Similarly, Codexis may terminate your employment at any time for any legal reason, with or without cause and with or without notice.  By accepting this offer of employment, you agree that your employment is at will, and acknowledge that no one, other than the President of Codexis or the Chairman of the Board of Directors of Codexis, has the authority to promise you, either orally or in writing, anything to the contrary.  Any such agreement must be in writing and signed by both you and such individual to be effective.

Employment with any other entity or for yourself in competition with Codexis, or subsidiary of Codexis is not permitted.  If you want to take an outside job, you should discuss the outside opportunity with your manager and the Human Resources Department in advance so that we can determine if any actual or potential conflict of interest exists.

During the course of your employment, you may create, develop or have access to confidential information belonging to Codexis, including trade secrets and proprietary information, such as technical and scientific research and/or protocols, customer and supplier information, business plans, marketing plans, unpublished financial information, designs, drawings, innovations, inventions, discoveries, specifications, software, source codes, and personnel information.  You agree that as a condition of your employment with Codexis, you will sign and comply with the Codexis Confidential Information, Secrecy and Invention Agreement.  

Arbitration of Disputes

You agree that, except as described below, any dispute relating to your employment or the termination of your employment with Codexis shall be finally settled by binding arbitration in Palo Alto, California before a neutral arbitrator of the American Arbitration Association (“AAA”) 

Codexis, Inc. 
200 Penobscot Drive 
Redwood City, CA  94063 
Tel:  650.421.8100 
Fax: 650.421-8135 
www.codexis.com 

under its National Rules for the Resolution of Employment Disputes.  Claims subject to arbitration shall include, but shall not be limited to, claims under Title VII of the Civil Rights Act of 1964 (as amended) and other civil rights statutes of the United States, the Age Discrimination in Employment Act, the Americans with Disabilities Act, the Family and Medical Leave Act, the Employee Retirement Income Security Act of 1974, the California Fair Employment and Housing Act, the California Labor Code, and any other federal, state or local statute or regulation, and the common law of contract and tort.  However, this agreement to arbitrate shall not apply to claims (a) for workers’ compensation, (b) for unemployment compensation or (c) injunctive relief arising out of or related to misappropriation of trade secrets or misuse or improper disclosure of confidential information, unfair competition or breach of any non-competition or non-solicitation agreement between you and Codexis.  

You understand that by this agreement, you and Codexis are waiving your respective rights to trial by jury, and that judgment upon any arbitration award may be entered in any court having jurisdiction of the matter.  Any controversy or claim subject to arbitration shall be waived and forever barred if arbitration is not initiated within one year after the date the controversy or claim first arose, or if statutory rights are involved, within the time limit established by the applicable statute of limitations.
  
With regard to statutory claims, you and Codexis will have the same remedies available in arbitration as those available had the claim been filed in a court of law, including, where authorized by statute, compensatory and punitive damages, injunctive relief and attorneys’ fees.  Although Codexis will pay all costs of the AAA and the arbitrator, you agree to pay all costs you would otherwise be required to pay were your claims litigated in a court of law, such as costs of your attorney, deposition transcripts and expert witness fees and expenses.

The terms described in this letter replace all prior agreements, understandings, and promises between Codexis and you concerning the terms and conditions of your employment with Codexis.  

Mark, we hope that your association with Codexis will be mutually successful and rewarding, and we look forward to welcoming you aboard.   Please indicate your acceptance of this offer by signing this letter below and returning the letter to Human Resources by 8/21/2009.   A copy of the letter is enclosed for your records.
Sincerely,

Codexis, Inc.

By: /s/Andy Danforth            
      Andy Danforth
      Vice President, Human Resources

Codexis, Inc. 
200 Penobscot Drive 
Redwood City, CA  94063 
Tel:  650.421.8100 
Fax: 650.421-8135 
www.codexis.com 

I understand and agree to the foregoing terms and conditions of employment with Codexis.

/s/Mark Ho                

8/20/2009    No later than 9/14/2009 
Date            /          Start Date

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