Document:

EX-10.1 2005 LONG-TERM INCENTIVE PLAN

 

 

    Exhibit 10.1

 

    CONFORMED
    COPY

 

    WEBMD
    HEALTH CORP.

    

 

    

    2005
    LONG-TERM INCENTIVE PLAN

 

 

    (AS
    AMENDED THROUGH SEPTEMBER 18, 2007)

 

 

    ARTICLE 1

    

 

    PURPOSE

 

    1.1 General.  The purpose of the WebMD
    Health Corp. 2005 Long-Term Incentive Plan (as it may be amended
    from time to time, the “Plan”) is to promote the
    success, and enhance the value, of WebMD Health Corp., a
    Delaware Corporation (the “Corporation”), by linking
    the personal interests of its employees, officers, directors and
    consultants to those of Corporation shareholders and by
    providing such persons with an incentive for outstanding
    performance. The Plan is further intended to provide flexibility
    to the Corporation in its ability to motivate, attract and
    retain the services of employees, officers, directors and
    consultants upon whose judgment, interest and special effort the
    successful conduct of the Corporation’s operation is
    largely dependent. Accordingly, the Plan permits the grant of
    incentive awards from time to time to selected employees and
    officers, directors and consultants.

 

    ARTICLE 2

 

    EFFECTIVE DATE

 

    2.1 Effective Date.  The Plan became
    effective on the date upon which it was approved by the Board
    and the shareholders of the Corporation, which was
    September 26, 2005 (the “Effective Date”). The
    effective date of the amendment and restatement of the Plan is
    July 27, 2006 (the “Amendment and Restatement
    Date”).

 

    ARTICLE 3

    

 

    DEFINITIONS

 

    3.1 Definitions.  When a word or phrase
    appears in this Plan with the initial letter capitalized, and
    the word or phrase does not commence a sentence and is not
    otherwise defined in the Plan, the word or phrase shall
    generally be given the meaning ascribed to it in this Section.
    The following words and phrases shall have the following
    meanings:

 

    (a) “1933 Act” means the Securities Act of
    1933, as amended from time to time.

 

    (b) “1934 Act” means the Securities Exchange
    Act of 1934, as amended from time to time.

 

    (c) “Affiliate” means any Parent or Subsidiary
    and any person that directly, or indirectly through one or more
    intermediaries, controls, is controlled by, or is under common
    control with, the Corporation.

 

    (d) “Amendment and Restatement Date” has the
    meaning specified in Section 2.1.

 

    (e) “Award” means any Option, Stock Appreciation
    Right, Restricted Stock Award, Performance Share Award, Dividend
    Equivalent Award or Other Stock-Based Award, or any other right
    or interest relating to Stock or cash, granted to a Participant
    under the Plan.

 

    (f) “Award Agreement” means any written
    agreement, contract or other instrument or document evidencing
    an Award.

 

    (g) “Board” means the Board of Directors of the
    Corporation.

 

    (h) “Cause” as a reason for a Participant’s
    termination of employment or service shall have the meaning
    assigned such term in the employment agreement, if any, between
    such Participant and the Corporation or an affiliated company,
    provided, however, that if there is no such
    employment agreement in which such term is defined,
    “Cause” shall mean any of the following acts by the
    Participant, as determined by the Board: gross neglect of duty,
    prolonged absence from duty without the consent of the
    Corporation, intentionally engaging in any activity that is in
    conflict with or adverse to the business or other interests of
    the Corporation, or willful misconduct, misfeasance or
    malfeasance of duty which is reasonably determined to be
    detrimental to the Corporation.

 

    (i) “Change of Control” means and includes the
    occurrence of any one of the following events:

 

    (i) individuals who, at the effective date of the Initial
    Public Offering, constitute the Board (the “Incumbent
    Directors”) cease for any reason to constitute at least a
    majority of the Board, provided that any person becoming
    a director after the Effective Date and whose election or
    nomination for election was approved by a vote of at least a
    majority of the Incumbent Directors then on the Board (either by
    a specific vote or by approval of the proxy statement of the
    Corporation in which such person is named as a nominee for
    director, without written objection to such nomination) shall be
    an Incumbent Director; provided, however, that no
    individual initially elected or nominated as a director of the
    Corporation as a result of an actual or threatened election
    contest (as described in
    Rule 14a-11
    under the 1934 Act (“Election Contest”)) or other
    actual or threatened solicitation of proxies or consents by or
    on behalf of any “person” (as such term is defined in
    Section 3(a)(9) of the 1934 Act and as used in
    Section 13(d)(3) and 14(d)(2) of the 1934 Act) other
    than the Board (“Proxy Contest”), including by reason
    of any agreement intended to avoid or settle any Election
    Contest or Proxy Contest, shall be deemed an Incumbent Director;

 

    (ii) any person becomes a “beneficial owner” (as
    defined in
    Rule 13d-3
    under the 1934 Act), directly or indirectly, of securities
    of the Corporation representing 50% or more of the combined
    voting power of the Corporation’s then outstanding
    securities eligible to vote for the election of the Board (the
    “Corporation Voting Securities”); provided,
    however, that the event described in this
    paragraph (ii) shall not be deemed to be a Change of
    Control of the Corporation by virtue of any of the following
    acquisitions: (A) any acquisition by a person who is on the
    Effective Date the beneficial owner of 50% or more of the
    outstanding Corporation Voting Securities, (B) an
    acquisition by the Corporation which reduces the number of
    Corporation Voting Securities outstanding and thereby results in
    any person acquiring beneficial ownership of more than 50% of
    the outstanding Corporation Voting Securities, provided
    that if after such acquisition by the Corporation such person
    becomes the beneficial owner of additional Corporation Voting
    Securities that increase the percentage of outstanding
    Corporation Voting Securities beneficially owned by such person,
    a Change of Control of the Corporation shall then occur,
    (C) an acquisition by any employee benefit plan (or related
    trust) sponsored or maintained by the Corporation or any Parent
    or Subsidiary, (D) an acquisition by an underwriter
    temporarily holding securities pursuant to an offering of such
    securities or (E) an acquisition pursuant to a
    Non-Qualifying Transaction (as defined in
    paragraph (iii)); or

 

    (iii) the consummation of a reorganization, merger,
    consolidation, statutory share exchange or similar form of
    corporate transaction involving the Corporation that requires
    the approval of the Corporation’s stockholders, whether for
    such transaction or the issuance of securities in the
    transaction (a “Reorganization”), or the sale or other
    disposition of all or substantially all of the
    Corporation’s assets to an entity that is not an affiliate
    of the Corporation (a “Sale”), unless immediately
    following such Reorganization or Sale: (A) more than 50% of
    the total voting power of (x) the corporation resulting
    from such Reorganization or the corporation which has acquired
    all or

 

    PAGE 2

 

    substantially all of the assets of the Corporation (in either
    case, the “Surviving Corporation”) or (y) if
    applicable, the ultimate parent corporation that directly or
    indirectly has beneficial ownership of 100% of the voting
    securities eligible to elect directors of the Surviving
    Corporation (the “Parent Corporation”), is represented
    by the Corporation Voting Securities that were outstanding
    immediately prior to such Reorganization or Sale (or, if
    applicable, is represented by shares into which such Corporation
    Voting Securities were converted pursuant to such Reorganization
    or Sale), and such voting power among the holders thereof is in
    substantially the same proportion as the voting power of such
    Corporation Voting Securities among the holders thereof
    immediately prior to the Reorganization or Sale, (B) no
    person (other than (x) the Corporation, (y) any
    employee benefit plan (or related trust) sponsored or maintained
    by the Surviving Corporation or the Parent Corporation or
    (z) a person who immediately prior to the Reorganization or
    Sale was the beneficial owner of 25% or more of the outstanding
    Corporation Voting Securities) is the beneficial owner, directly
    or indirectly, of 25% or more of the total voting power of the
    outstanding voting securities eligible to elect directors of the
    Parent Corporation (or, if there is no Parent Corporation, the
    Surviving Corporation) and (C) at least a majority of the
    members of the board of directors of the Parent Corporation (or,
    if there is no Parent Corporation, the Surviving Corporation)
    following the consummation of the Reorganization or Sale were
    Incumbent Directors at the time of the Board’s approval of
    the execution of the initial agreement providing for such
    Reorganization or Sale (any Reorganization or Sale which
    satisfies all of the criteria specified in (A), (B) and
    (C) above shall be deemed to be a “Non-Qualifying
    Transaction”);

 

    provided, however, that in no event shall a Change
    of Control be deemed to have occurred so long as Emdeon
    Corporation directly or indirectly beneficially owns at least
    50% of the voting power represented by the securities of the
    Corporation entitled to vote generally in the election of the
    Corporation’s directors; and provided
    further, however, that under no circumstances
    shall a split-off, spin-off, stock dividend or similar
    transaction as a result of which the voting securities of the
    Corporation are distributed to shareholders of Emdeon
    Corporation or its successors constitute a Change of Control.

 

    Notwithstanding the foregoing, with respect to an Award that is
    subject to Section 409A of the Code, and payment or
    settlement of such Award is to be accelerated in connection with
    an event that would otherwise constitute a Change of Control, no
    event set forth in clause (i), (ii) or (iii) will
    constitute a Change of Control for purposes of the Plan and any
    Award Agreement unless such event also constitutes a
    “change in the ownership”, “change in the
    effective control” or “change in the ownership of a
    substantial portion of the assets” of the Corporation as
    defined under Section 409A of the Code and the Treasury
    guidance promulgated thereunder.

 

    (j) “Code” means the Internal Revenue Code of
    1986, as amended from time to time, and the regulations
    promulgated thereunder.

 

    (k) “Committee” means, subject to the last
    sentence of Section 4.1, the committee of the Board
    described in Article 4.

 

    (l) “Covered Employee” means a covered employee
    as defined in Section 162(m)(3) of the Code,
    provided that no employee shall be a Covered Employee
    until the deduction limitations of Section 162(m) of the
    Code are applicable to the Corporation and any reliance period
    under Treasury Regulation Section 1.162-27(f) has
    expired.

 

    (m) “Disability” has the meaning ascribed under
    the long-term disability plan applicable to the Participant.
    Notwithstanding the above, (i) with respect to an Incentive
    Stock Option, Disability shall mean Permanent and Total
    Disability as defined in Section 22(e)(3) of the Code and
    (ii) to the extent an Award is subject to Section 409A
    of the Code, and payment or settlement of the Award is to be
    accelerated solely as a result of the Participant’s
    Disability, Disability shall have the meaning ascribed thereto
    under Section 409A of the Code and the Treasury guidance
    promulgated thereunder.

 

    (n) “Dividend Equivalent” means a right granted
    to a Participant under Article 11.

 

    PAGE 3

 

    (o) “Effective Date” has the meaning assigned
    such term in Section 2.1.

 

    (p) “Fair Market Value”, on any date, means
    (i) if the Stock is listed on a securities exchange or is
    traded over the Nasdaq National Market, the closing sales price
    on such exchange or over such system on such date or, in the
    absence of reported sales on such date, the closing sales price
    on the immediately preceding date on which sales were reported
    or (ii) if the Stock is not listed on a securities exchange
    or traded over the Nasdaq National Market, Fair Market Value
    will be determined by such other method as the Committee
    determines in good faith to be reasonable. With respect to
    awards granted on the effective date of the Corporation’s
    Initial Public Offering, Fair Market Value shall mean the price
    at which the Stock is initially offered in the Initial Public
    Offering.

 

    (q) “Incentive Stock Option” means an Option that
    is intended to meet the requirements of Section 422 of the
    Code or any successor provision thereto.

 

    (r) “Initial Public Offering” means the
    underwritten initial public offering of equity securities of the
    Corporation pursuant to an effective registration statement
    under the 1933 Act.

 

    (s) “Non-Employee Director” means a member of the
    Board who is not an employee of the Corporation or any Parent or
    Affiliate.

 

    (t) “Non-Qualified Stock Option” means an Option
    that is not an Incentive Stock Option.

 

    (u) “Option” means a right granted to a
    Participant under Article 7 to purchase Stock at a
    specified price during specified time periods. An Option may be
    either an Incentive Stock Option or a Non-Qualified Stock Option.

 

    (v) “Other Stock-Based Award” means a right,
    granted to a Participant under Article 12, that relates to
    or is valued by reference to Stock or other Awards relating to
    Stock.

 

    (w) “Parent” means a corporation which owns or
    beneficially owns a majority of the outstanding voting stock or
    voting power of the Corporation. Notwithstanding the above, with
    respect to an Incentive Stock Option, Parent shall have the
    meaning set forth in Section 424(e) of the Code.

 

    (x) “Participant” means a person who, as an
    employee, officer, consultant or director of the Corporation or
    any Parent, Subsidiary or Affiliate, has been granted an Award
    under the Plan.

 

    (y) “Performance Share” means a right granted to
    a Participant under Article 9, to receive cash, Stock, or
    other Awards, the payment of which is contingent upon achieving
    certain performance goals established by the Committee.

 

    (z) “Restricted Stock Award” means Stock granted
    to a Participant under Article 10 that is subject to
    certain restrictions and to risk of forfeiture.

 

    (aa) “Stock” means the $.01 par value
    Class A common stock of the Corporation and such other
    securities of the Corporation as may be substituted for Stock
    pursuant to Article 15.

 

    (bb) “Stock Appreciation Right” or
    “SAR” means a right granted to a Participant under
    Article 8 to receive a payment equal to the difference
    between the Fair Market Value of a share of Stock as of the date
    of exercise of the SAR over the grant price of the SAR, all as
    determined pursuant to Article 8.

 

    (cc) “Subsidiary” means any corporation, limited
    liability company, partnership or other entity of which a
    majority of the outstanding voting equity securities or voting
    power is beneficially owned directly or indirectly by the
    Corporation. Notwithstanding the above, with respect to an
    Incentive Stock Option, Subsidiary shall have the meaning set
    forth in Section 424(f) of the Code.

 

    (dd) “Emdeon Corporation” means Emdeon
    Corporation, a Delaware corporation.

 

    PAGE 4

 

    ARTICLE 4

    

 

    ADMINISTRATION

 

    4.1 Committee.  The Plan shall be
    administered by a committee (the “Committee”)
    appointed by the Board (which Committee shall consist of two or
    more directors) or, at the discretion of the Board from time to
    time, the Plan may be administered by the Board. It is intended
    that the directors appointed to serve on the Committee shall be
    “non-employee directors” (within the meaning of
    Rule 16b-3
    promulgated under the 1934 Act) and “outside
    directors” (within the meaning of Section 162(m) of
    the Code) to the extent that
    Rule 16b-3
    and, if necessary for relief from the limitation under
    Section 162(m) of the Code and such relief is sought by the
    Corporation, Section 162(m) of the Code, respectively, are
    applicable. However, the mere fact that a Committee member shall
    fail to qualify under either of the foregoing requirements shall
    not invalidate any Award made by the Committee which Award is
    otherwise validly made under the Plan. The members of the
    Committee shall be appointed by, and may be changed at any time
    and from time to time in the discretion of, the Board. During
    any time that the Board is acting as administrator of the Plan,
    it shall have all the powers of the Committee hereunder, and any
    reference herein to the Committee (other than in this
    Section 4.1) shall include the Board. Notwithstanding the
    foregoing, (i) initial Awards granted to Participants in
    connection with the Initial Public Offering may be determined,
    and (ii) to the extent determined by the Board, following
    the Initial Public Offering the Plan may be administered, by the
    compensation committee of the board of directors of Emdeon
    Corporation and all references to such Committee in the Plan
    shall be deemed to refer to such Committee for so long as it
    serves as the Plan administrator.

 

    4.2 Action by the Committee.  For purposes
    of administering the Plan, the following rules of procedure
    shall govern the Committee. A majority of the Committee shall
    constitute a quorum. The acts of a majority of the members
    present at any meeting at which a quorum is present, and acts
    approved unanimously in writing by the members of the Committee
    in lieu of a meeting, shall be deemed the acts of the Committee.
    Each member of the Committee is entitled to, in good faith, rely
    or act upon any report or other information furnished to that
    member by any officer or other employee of the Corporation or
    any Parent or Affiliate, the Corporation’s independent
    certified public accountants, or any executive compensation
    consultant or other professional retained by the Corporation to
    assist in the administration of the Plan.

 

    4.3 Authority of Committee.  Except as
    provided below, the Committee has the exclusive power, authority
    and discretion to:

 

    (a) Designate Participants;

 

    (b) Determine the type or types of Awards to be granted to
    each Participant;

 

    (c) Determine the number of Awards to be granted and the
    number of shares of Stock to which an Award will relate;

 

    (d) Determine the terms and conditions of any Award granted
    under the Plan, including, but not limited to, the exercise
    price, grant price or purchase price, any restrictions or
    limitations on the Award, any schedule for lapse of forfeiture
    restrictions or restrictions on the exercisability of an Award,
    and accelerations or waivers thereof, based in each case on such
    considerations as the Committee in its sole discretion
    determines;

 

    (e) Accelerate the vesting or lapse of restrictions of any
    outstanding Award, based in each case on such considerations as
    the Committee in its sole discretion determines;

 

    (f) Determine whether, to what extent, and under what
    circumstances an Award may be settled in, or the exercise price
    of an Award may be paid in, cash, Stock, other Awards or other
    property, or an Award may be canceled, forfeited or surrendered;

 

    (g) Prescribe the form of each Award Agreement, which need
    not be identical for each Participant or amend any Award
    Agreement;

 

    PAGE 5

 

    (h) Decide all other matters that must be determined in
    connection with an Award;

 

    (i) Establish, adopt or revise any rules and regulations as
    it may deem necessary or advisable to administer the Plan;

 

    (j) Make all other decisions and determinations that may be
    required under the Plan or as the Committee deems necessary or
    advisable to administer the Plan; and

 

    (k) Amend the Plan as provided herein.

 

    Notwithstanding the foregoing authority, except as provided in
    or pursuant to Article 15, the Committee shall not
    authorize, generally or in specific cases only, for the benefit
    of any Participant, any adjustment in the exercise price of an
    Option or the base price of a Stock Appreciation Right, or in
    the number of shares subject to an Option or Stock Appreciation
    Right granted hereunder by (i) cancellation of an
    outstanding Option or Stock Appreciation Right and a subsequent
    regranting of an Option or Stock Appreciation Right,
    (ii) amendment to an outstanding Option or Stock
    Appreciation Right, (iii) substitution of an outstanding
    Option or Stock Appreciation Right or (iv) any other action
    that would be deemed to constitute a repricing of such an Award
    under applicable law, in each case, without prior approval of
    the Corporation’s stockholders.

 

    4.4 Delegation of Authority.  To the
    extent not prohibited by applicable laws, rules and regulations,
    the Board or the Committee may, from time to time, delegate some
    or all of its authority under the Plan to a subcommittee or
    subcommittees thereof or to one or more directors or executive
    officers of the Corporation as it deems appropriate under such
    conditions or limitations as it may set at the time of such
    delegation or thereafter, except that neither the Board nor the
    Committee may delegate its authority pursuant to Article 16
    to amend the Plan. For purposes of the Plan, references to the
    Committee shall be deemed to refer to any subcommittee,
    subcommittees, directors or executive officers to whom the Board
    or the Committee delegates authority pursuant to this
    Section 4.4.

 

    4.5 Decisions Binding.  The
    Committee’s interpretation of the Plan, any Awards granted
    under the Plan, any Award Agreement and all decisions and
    determinations by the Committee with respect to the Plan are
    final, binding and conclusive on all parties.

 

    ARTICLE 5

    

 

    SHARES
    SUBJECT TO THE PLAN

 

    5.1 Number of Shares.  Subject to
    adjustment as provided in Article 15, the aggregate number
    of shares of Stock reserved and available for Awards or which
    may be used to provide a basis of measurement for or to
    determine the value of an Award (such as with a Stock
    Appreciation Right or Performance Share Award) shall be
    9,000,000 shares (the “Maximum Number”). Not more
    than the Maximum Number of shares of Stock shall be granted in
    the form of Incentive Stock Options.

 

    5.2 Lapsed Awards.  To the fullest extent
    permissible under
    Rule 16b-3
    under the 1934 Act and Section 422 of the Code and any
    other applicable laws, rules and regulations, (i) if an
    Award is canceled, terminates, expires, is forfeited or lapses
    for any reason without having been exercised or settled, any
    shares of Stock subject to the Award will be added back into the
    Maximum Number and will again be available for the grant of an
    Award under the Plan and (ii) shares of Stock subject to
    SARs or other Awards settled in cash and the number of shares of
    Stock tendered or withheld to satisfy a Participant’s tax
    withholding obligations shall be added back into the Maximum
    Number and will be available for the grant of an Award under the
    Plan.

 

    5.3 Stock Distributed.  Any Stock
    distributed pursuant to an Award may consist, in whole or in
    part, of authorized and unissued Stock, treasury Stock or Stock
    purchased on the open market.

 

    PAGE 6

 

    5.4 Limitation on Awards.  Notwithstanding
    any provision in the Plan to the contrary (but subject to
    adjustment as provided in Article 15), the maximum number
    of shares of Stock with respect to one or more Options and/or
    SARs that may be granted during any one calendar year under the
    Plan to any one Participant shall be 412,500 (all of which may
    be granted as Incentive Stock Options); provided,
    however, that in connection with his or her initial
    employment with the Corporation, a Participant may be granted
    Options or SARs with respect to up to an additional
    412,500 shares of Stock (all of which may be granted as
    Incentive Stock Options), which shall not count against the
    foregoing annual limit. The maximum Fair Market Value (measured
    as of the date of grant) of any Awards other than Options and
    SARs that may be received by any one Participant (less any
    consideration paid by the Participant for such Award) during any
    one calendar year under the Plan shall be $5,000,000. The
    maximum number of shares of Stock that may be subject to one or
    more Performance Share Awards (or used to provide a basis of
    measurement for or to determine the value of Performance Share
    Awards) in any one calendar year to any one participant
    (determined on the date of payment of settlement) shall be
    412,500.

 

    ARTICLE 6

    

 

    ELIGIBILITY

 

    6.1 General.  Awards may be granted only
    to individuals who are employees, officers, directors or
    consultants of the Corporation or a Parent or an Affiliate. In
    the discretion of the Committee, Awards may be made to Covered
    Employees which are intended to constitute qualified
    performance-based compensation under Section 162(m) of the
    Code.

 

    ARTICLE 7

    

 

    STOCK
    OPTIONS

 

    7.1 General.  The Committee is authorized
    to grant Options to Participants on the following terms and
    conditions:

 

    (a) Exercise Price.  The exercise price
    per share of Stock under an Option shall be determined by the
    Committee at the time of the grant but in no event shall the
    exercise price be less than 100% of the Fair Market Value of a
    share of Stock on the date of grant.

 

    (b) Time and Conditions of Exercise.  The
    Committee shall determine the time or times at which an Option
    may be exercised in whole or in part, subject to
    Section 7.1(e) and 7.3. The Committee also shall determine
    the performance or other conditions, if any, that must be
    satisfied before all or part of an Option may be exercised. The
    Committee may waive any exercise provisions at any time in whole
    or in part based upon factors as the Committee may determine in
    its sole discretion so that the Option becomes exerciseable at
    an earlier date.

 

    (c) Payment.  Unless otherwise determined
    by the Committee, the exercise price of an Option may be paid
    (i) in cash, (ii) by actual delivery or attestation to
    ownership of freely transferable shares of stock already owned;
    provided, however, that to the extent required by
    applicable accounting rules, such shares shall have been held by
    the Participant for at least six months, (iii) by a
    combination of cash and shares of Stock equal in value to the
    exercise price or (iv) by such other means as the
    Committee, in its discretion, may authorize. In accordance with
    the rules and procedures authorized by the Committee for this
    purpose, an Option may also be exercised through a
    “cashless exercise” procedure authorized by the
    Committee that permits Participants to exercise Options by
    delivering a properly executed exercise notice to the
    Corporation together with a copy of irrevocable instructions to
    a broker to deliver promptly to the Corporation the amount of
    sale or loan proceeds necessary to pay the exercise price and
    the amount of any required tax or other withholding obligations.

 

    PAGE 7

 

    (d) Evidence of Grant.  All Options shall
    be evidenced by a written Award Agreement between the
    Corporation and the Participant. The Award Agreement shall
    include such provisions not inconsistent with the Plan as may be
    specified by the Committee.

 

    (e) Exercise Term.  In no event may any
    Option be exercisable for more than ten years from the date of
    its grant.

 

    7.2 Incentive Stock Options.  The terms of
    any Incentive Stock Options granted under the Plan must comply
    with the following additional rules:

 

    (a) Lapse of Option.  An Incentive Stock
    Option shall lapse under the earliest of the following
    circumstances; provided, however, that the
    Committee may, prior to the lapse of the Incentive Stock Option
    under the circumstances described in paragraphs (3),
    (4) and (5) below, provide in writing that the Option
    will extend until a later date, but if an Option is exercised
    after the dates specified in paragraphs (3), (4) and
    (5) below, it will automatically become a Non-Qualified
    Stock Option:

 

    (1) The Incentive Stock Option shall lapse as of the option
    expiration date set forth in the Award Agreement.

 

    (2) The Incentive Stock Option shall lapse ten years after
    it is granted, unless an earlier time is set in the Award
    Agreement.

 

    (3) If the Participant terminates employment for any reason
    other than as provided in paragraph (4) or
    (5) below, the Incentive Stock Option shall lapse, unless
    it is previously exercised, three months after the
    Participant’s termination of employment; provided,
    however, that if the Participant’s employment is
    terminated by the Corporation for Cause, the Incentive Stock
    Option shall (to the extent not previously exercised) lapse
    immediately.

 

    (4) If the Participant terminates employment by reason of
    his Disability, the Incentive Stock Option shall lapse, unless
    it is previously exercised, one year after the
    Participant’s termination of employment.

 

    (5) If the Participant dies while employed, or during the
    three-month period described in paragraph (3) or
    during the one-year period described in
    paragraph (4) and before the Option otherwise lapses,
    the Option shall lapse one year after the Participant’s
    death. Upon the Participant’s death, any exercisable
    Incentive Stock Options may be exercised by the
    Participant’s beneficiary, determined in accordance with
    Section 14.5.

 

    Unless the exercisability of the Incentive Stock Option is
    accelerated as provided in Article 14, if a Participant
    exercises an Option after termination of employment, the Option
    may be exercised only with respect to the shares that were
    otherwise vested on the Participant’s termination of
    employment.

 

    (b) Individual Dollar Limitation.  The
    aggregate Fair Market Value (determined as of the time an Award
    is made) of all shares of Stock with respect to which Incentive
    Stock Options are first exercisable by a Participant in any
    calendar year may not exceed $100,000.00.

 

    (c) Ten Percent Owners.  No Incentive
    Stock Option shall be granted to any individual who, at the date
    of grant, owns stock possessing more than ten percent of the
    total combined voting power of all classes of stock of the
    Corporation or any Parent or Affiliate unless the exercise price
    per share of such Option is at least 110% of the Fair Market
    Value per share of Stock at the date of grant and the Option
    expires no later than five years after the date of grant.

 

    (d) Expiration of Incentive Stock
    Options.  No Award of an Incentive Stock Option
    may be made pursuant to the Plan after the day immediately prior
    to the tenth anniversary of the Effective Date.

 

    PAGE 8

 

    (e) Right to Exercise.  During a
    Participant’s lifetime, an Incentive Stock Option may be
    exercised only by the Participant or, in the case of the
    Participant’s Disability, by the Participant’s
    guardian or legal representative.

 

    (f) Directors.  The Committee may not
    grant an Incentive Stock Option to a non-employee director. The
    Committee may grant an Incentive Stock Option to a director who
    is also an employee of the Corporation or any Parent or
    Affiliate but only in that individual’s position as an
    employee and not as a director.

 

    7.3 Options Granted to Non-employee
    Directors.  Notwithstanding the foregoing, Options
    granted to Non-Employee Directors under this Article 7
    shall be subject to the following additional terms and
    conditions:

 

    (a) Lapse of Option.  An Option granted to
    a Non-Employee Director under this Article 7 shall lapse
    under the earliest of the following circumstances:

 

    (1) The Option shall lapse as of the option expiration date
    set forth in the Award Agreement.

 

    (2) If the Participant ceases to serve as a member of the
    Board for any reason other than as provided in the proviso to
    this paragraph (2) or in
    paragraph (3) below, the Option shall lapse, unless it
    is previously exercised, (A) in the case of Option grants
    made to Non-Employee Directors after January 27, 2006,
    three years after the Participant’s termination as a member
    of the Board and (B) in the case of Option grants made to
    Non-Employee Directors on or prior to January 27, 2006, on
    the later of
    (x) 51/2
    months following the Participant’s termination as a member
    of the Board of Directors or (y) December 31 of the
    year in which such termination of service occurs; provided,
    however, that if the Participant is removed for cause
    (determined in accordance with the Corporation’s bylaws, as
    amended from time to time), the Option shall (to the extent not
    previously exercised) lapse immediately.

 

    (3) If the Participant ceases to serve as a member of the
    Board by reason of his Disability or death, the Option shall
    lapse, unless it is previously exercised, (A) in the case
    of Option grants made to Non-Employee Directors after
    January 27, 2006, three years after the Participant’s
    termination as a member of the Board and (B) in the case of
    Option grants made to Non-Employee Directors on or prior to
    January 27, 2006,
    141/2
    months following the Participant’s termination as a member
    of the Board of Directors. If the Participant dies during the
    post termination exercise period specified above in
    paragraph (2) or in paragraph (3) and before
    the Option otherwise lapses, the Option shall lapse one year
    after the Participant’s death. Upon the Participant’s
    death, any exercisable Options may be exercised by the
    Participant’s beneficiary, determined in accordance with
    Section 14.5.

 

    If a Participant exercises Options after termination of his
    service on the Board, he may exercise the Options only with
    respect to the shares that were otherwise exercisable on the
    date of termination of his service on the Board. Such exercise
    otherwise shall be subject to the terms and conditions of this
    Article 7.

 

    (b) Acceleration Upon Change of
    Control.  Notwithstanding Section 7.1(b), in
    the event of a Change of Control, each Option granted to a
    Non-Employee Director under this Article 7 that is then
    outstanding immediately prior to such Change of Control shall
    become immediately vested and exercisable in full on the date of
    such Change of Control.

 

    PAGE 9

 

    ARTICLE 8

    

 

    STOCK
    APPRECIATION RIGHTS

 

    8.1 Grant of Stock Appreciation
    Rights.  The Committee is authorized to grant
    Stock Appreciation Rights to Participants on the following terms
    and conditions:

 

    (a) Right to Payment.  Upon the exercise
    of a Stock Appreciation Right, the Participant to whom it is
    granted has the right to receive the excess, if any, of:

 

    (1) The Fair Market Value of one share of Stock on the date
    of exercise; over

 

    (2) The grant price of the Stock Appreciation Right as
    determined by the Committee, which shall not be less than the
    Fair Market Value of one share of Stock on the date of grant.

 

    (b) Other Terms.  All awards of Stock
    Appreciation Rights shall be evidenced by an Award Agreement.
    The terms, methods of exercise, methods of settlement, form of
    consideration payable in settlement, and any other terms and
    conditions of any Stock Appreciation Right shall be determined
    by the Committee at the time of the grant of the Award and shall
    be reflected in the Award Agreement.

 

    ARTICLE 9

    

 

    PERFORMANCE
    SHARES

 

    9.1 Grant of Performance Shares.  The
    Committee is authorized to grant Performance Shares to
    Participants on such terms and conditions as may be selected by
    the Committee. The Committee shall have the complete discretion
    to determine the number of Performance Shares granted to each
    Participant, subject to Section 5.4. All Awards of
    Performance Shares shall be evidenced by an Award Agreement.

 

    9.2 Right to Payment.  A grant of
    Performance Shares gives the Participant rights, valued as
    determined by the Committee, and payable to, or exercisable by,
    the Participant to whom the Performance Shares are granted, in
    whole or in part, as the Committee shall establish at grant or
    thereafter. The Committee shall set performance goals and other
    terms or conditions to payment of the Performance Shares in its
    discretion which, depending on the extent to which they are met,
    will determine the number and value of Performance Shares that
    will be paid to the Participant.

 

    9.3 Other Terms.  Performance Shares may
    be payable in cash, Stock or other property, and have such other
    terms and conditions as determined by the Committee and
    reflected in the Award Agreement.

 

    ARTICLE 10

    

 

    RESTRICTED
    STOCK AWARDS

 

    10.1 Grant of Restricted Stock.  The
    Committee is authorized to make Awards of Restricted Stock to
    Participants in such amounts and subject to such terms and
    conditions as may be selected by the Committee. All Awards of
    Restricted Stock shall be evidenced by a Restricted Stock Award
    Agreement.

 

    10.2 Issuance and
    Restrictions.  Restricted Stock shall be subject
    to such restrictions on transferability and other restrictions
    as the Committee may impose (including, without limitation,
    limitations on the right to vote Restricted Stock or the right
    to receive dividends on the Restricted Stock). These
    restrictions may lapse separately or in combination at such
    times, under such circumstances, in such installments, upon the
    satisfaction of performance goals or otherwise, as the Committee
    determines at the time of the grant of the Award or thereafter.

 

    10.3 Forfeiture.  Except as otherwise
    determined by the Committee at the time of the grant of the
    Award or thereafter, upon termination of employment during the
    applicable restriction period or upon failure to satisfy

 

    PAGE 10

 

    a performance goal during the applicable restriction period,
    Restricted Stock that is at that time subject to restrictions
    shall be forfeited and reacquired by the Corporation;
    provided, however, that the Committee may provide
    in any Award Agreement that restrictions or forfeiture
    conditions relating to Restricted Stock will be waived in whole
    or in part in the event of terminations resulting from specified
    causes, and the Committee may in other cases waive in whole or
    in part restrictions or forfeiture conditions relating to
    Restricted Stock.

 

    10.4 Certificates for Restricted
    Stock.  Restricted Stock granted under the Plan
    may be evidenced in such manner as the Committee shall
    determine. If certificates representing shares of Restricted
    Stock are registered in the name of the Participant,
    certificates must bear an appropriate legend referring to the
    terms, conditions and restrictions applicable to such Restricted
    Stock.

 

    ARTICLE 11

    

 

    DIVIDEND
    EQUIVALENTS

 

    11.1 Grant of Dividend Equivalents.  The
    Committee is authorized to grant Dividend Equivalents to
    Participants subject to such terms and conditions as may be
    selected by the Committee. Dividend Equivalents shall entitle
    the Participant to receive payments (in cash, Stock or other
    property) equal to dividends with respect to all or a portion of
    the number of shares of Stock subject to an Award, as determined
    by the Committee. The Committee may provide that Dividend
    Equivalents be paid or distributed when accrued, or be deemed to
    have been reinvested in additional shares of Stock or otherwise
    reinvested.

 

    ARTICLE 12

    

 

    OTHER
    STOCK-BASED AWARDS

 

    12.1 Grant of Other Stock-based Awards.  The
    Committee is authorized, subject to limitations under applicable
    law, to grant to Participants such other Awards that are payable
    in, valued in whole or in part by reference to, or otherwise
    based on or related to shares of Stock, as deemed by the
    Committee to be consistent with the purposes of the Plan,
    including, without limitation, shares of Stock awarded purely as
    a “bonus” and not subject to any restrictions or
    conditions, convertible or exchangeable debt securities, other
    rights convertible or exchangeable into shares of Stock, stock
    units, phantom stock and other Awards valued by reference to
    book value of shares of Stock or the value of securities of or
    the performance of specified Parents or Subsidiaries. The
    Committee shall determine the terms and conditions of such
    Awards.

 

    ARTICLE 13

    

 

    ANNUAL
    AWARDS TO NON-EMPLOYEE DIRECTORS

 

    13.1 Grant of Options.  Each Non-Employee
    Director who is serving in such capacity as of January 1 of each
    year that the Plan is in effect shall be granted a Non-Qualified
    Option to purchase 13,200 shares of Stock, subject to
    adjustment as provided in Article 15. In addition, each
    Non-Employee Director who is serving in such capacity as of the
    effective date of the Initial Public Offering shall be granted a
    Non-Qualified Stock Option to purchase 13,200 shares
    of Stock on such date. Each such date that Options are to be
    granted under this Article 13 is referred to hereinafter as
    a “Grant Date”. In addition, the Committee may, in its
    sole discretion, permit or require each Non-Employee Director to
    receive all or any portion of his or her compensation for
    services as a director in the form of an Award under the Plan
    with such term and conditions as may be determined by the Board
    in its sole discretion.

 

    If on any Grant Date, shares of Stock are not available under
    the Plan to grant to Non-Employee Directors the full amount of a
    grant contemplated by the immediately preceding paragraph, then
    each Non-Employee Director shall receive an Option (a
    “Reduced Grant”) to purchase shares of Stock in an
    amount

 

    PAGE 11

 

    equal to the number of shares of Stock then available under the
    Plan divided by the number of Non-Employee Directors as of the
    applicable Grant Date. Fractional shares shall be ignored and
    not granted.

 

    If a Reduced Grant has been made and, thereafter, during the
    term of the Plan, additional shares of Stock become available
    for grant, then each person who was a Non-Employee Director both
    on the Grant Date on which the Reduced Grant was made and on the
    date additional shares of Stock become available (a
    “Continuing Non-Employee Director”) shall receive an
    additional Option to purchase shares of Stock. The number of
    newly available shares shall be divided equally among the
    Options granted to the Continuing Non-Employee Directors;
    provided, however, that the aggregate number of
    shares of Stock subject to a Continuing Non-Employee
    Director’s additional Option plus any prior Reduced Grant
    to the Continuing Non-Employee Director on the applicable Grant
    Date shall not exceed 13,200 shares (subject to adjustment
    pursuant to Article 15). If more than one Reduced Grant has
    been made, available Options shall be granted beginning with the
    earliest such Grant Date.

 

    13.2 Option Price.  The option price for
    each Option granted under this Article 13 shall be the Fair
    Market Value on the date of grant of the Option.

 

    13.3 Term.  Each Option granted under this
    Article 13 shall, to the extent not previously exercised,
    terminate and expire on the date ten (10) years after the
    date of grant of the Option, unless earlier terminated as
    provided in Section 13.4.

 

    13.4 Lapse of Option.  An Option granted
    under this Article 13 shall not automatically lapse by
    reason of the Participant ceasing to qualify as a Non-Employee
    Director but remaining as a member of the Board. An Option
    granted under this Article 13 shall lapse under the
    earliest of the following circumstances:

 

    (1) The Option shall lapse ten years after it is granted.

 

    (2) If the Participant ceases to serve as a member of the
    Board for any reason other than as provided in the proviso to
    this paragraph (2) or paragraph (3) below,
    the Option shall lapse, unless it is previously exercised,
    (A) in the case of Option grants made to Non-Employee
    Directors after January 27, 2006, three years after the
    Participant’s termination as a member of the Board and
    (B) in the case of Option grants made to Non-Employee
    Directors on or prior to January 27, 2006, on the later of
    (x) 51/2
    months following the Participant’s termination as a member
    of the Board of Directors or (y) December 31 of the
    year in which such termination of service occurs; provided,
    however, that if the Participant is removed for cause
    (determined in accordance with the Corporation’s bylaws, as
    amended from time to time), the Option shall (to the extent not
    previously exercised) lapse immediately.

 

    (3) If the Participant ceases to serve as a member of the
    Board by reason of his Disability or death, the Option shall
    lapse, unless it is previously exercised, (A) in the case
    of Option grants made to Non-Employee Directors after
    January 27, 2006, three years after the Participant’s
    termination as a member of the Board and (B) in the case of
    Option grants made to Non-Employee Directors on or prior to
    January 27, 2006,
    141/2
    months following the Participant’s termination as a member
    of the Board of Directors.

 

    (4) If the Participant dies during the post termination
    exercise period specified above in paragraph (2) or in
    paragraph (3) and before the Option otherwise lapses,
    the Option shall lapse one year after the Participant’s
    death. Upon the Participant’s death, any exercisable
    Options may be exercised by the Participant’s beneficiary,
    determined in accordance with Section 14.5.

 

    If a Participant exercises Options after termination of his or
    her service on the Board, he or she may exercise the Options
    only with respect to the shares that were otherwise exercisable
    on the date of termination of his service on the Board. Such
    exercise otherwise shall be subject to the terms and conditions
    of this Article 13.

 

    PAGE 12

 

    13.5 Cancellation of Options.  Upon a
    Participant’s termination of service for any reason other
    than death or Disability, all Options that have not vested in
    accordance with the Plan shall be cancelled immediately.

 

    13.6 Exercisability.  Subject to
    Section 13.7, each Option grant under this Article 13
    shall be exercisable as to twenty-five percent (25%) of the
    Option shares on each of the first, second, third and fourth
    anniversaries of the Grant Date, such that the Options will be
    fully exercisable after four years from the Grant Date.

 

    13.7 Acceleration Upon Change of
    Control.  Notwithstanding Section 13.6, in
    the event of a Change of Control, each Option granted under this
    Article 13 that is then outstanding immediately prior to
    such Change of Control shall become immediately exercisable in
    full on the date of such Change in Control.

 

    13.8 Termination of Article 13.  No
    Options shall be granted under this Article 13 after
    January 1, 2015.

 

    13.9 Non-exclusivity.  Nothing in this
    Article 13 shall prohibit the Committee from making
    discretionary Awards to Non-Employee Directors pursuant to the
    other provisions of the Plan before or after January 1,
    2015. Options granted pursuant to this Article 13 shall be
    governed by the provisions of this Article 13 and by other
    provisions of the Plan to the extent not inconsistent with the
    provisions of this Article 13.

 

    ARTICLE 14

    

 

    PROVISIONS
    APPLICABLE TO AWARDS

 

    14.1 Stand-alone, Tandem, and Substitute
    Awards.  Awards granted under the Plan may, in the
    discretion of the Committee, be granted either alone or in
    addition to, in tandem with, (subject to the last sentence of
    Section 4.3) or in substitution for, any other Award
    granted under the Plan. If an Award is granted in substitution
    for another Award, the Committee may require the surrender of
    such other Award in consideration of the grant of the new Award.
    Awards granted in addition to or in tandem with other Awards may
    be granted either at the same time as or at a different time
    from the grant of such other Awards.

 

    14.2 Term of Award.  The term of each
    Award shall be for the period as determined by the Committee,
    provided that in no event shall the term of any Incentive
    Stock Option or a Stock Appreciation Right granted in tandem
    with the Incentive Stock Option exceed a period of ten years
    from the date of its grant (or, if Section 7.2(c) applies,
    five years from the date of its grant).

 

    14.3 Form of Payment for
    Awards.  Subject to the terms of the Plan and any
    applicable law or Award Agreement, payments or transfers to be
    made by the Corporation or a Parent or Affiliate on the grant or
    exercise of an Award may be made in such form as the Committee
    determines at or after the time of grant, including, without
    limitation, cash, Stock, other Awards or other property, or any
    combination thereof, and may be made in a single payment or
    transfer, in installments or on a deferred basis, in each case
    determined in accordance with rules adopted by, and at the
    discretion of, the Committee.

 

    14.4 Limits on Transfer.  No right or
    interest of a Participant in any unexercised or restricted Award
    may be pledged, encumbered or hypothecated to or in favor of any
    party other than the Corporation or a Parent or Affiliate, or
    shall be subject to any lien, obligation, or liability of such
    Participant to any other party other than the Corporation or a
    Parent or Affiliate. No unexercised or restricted Award shall be
    assignable or transferable by a Participant other than by will
    or the laws of descent and distribution or, except in the case
    of an Incentive Stock Option, pursuant to a domestic relations
    order that would satisfy Section 414(p)(1)(A) of the Code
    if such Section applied to an Award under the Plan;
    provided, however, that the Committee may (but
    need not) permit other transfers where the Committee concludes
    that such transferability (i) does not result in
    accelerated taxation or other adverse tax consequences,
    (ii) does not cause any Option intended to be an Incentive
    Stock Option to fail to be described in Section 422(b) of
    the Code, and (iii) is otherwise appropriate and desirable,
    taking into account any factors deemed relevant, including,
    without limitation, state or federal tax or securities laws
    applicable to transferable Awards.

 

    PAGE 13

 

    14.5 Beneficiaries.  Notwithstanding
    Section 14.4, a Participant may, in the manner determined
    by the Committee, designate a beneficiary to exercise the rights
    of the Participant and to receive any distribution with respect
    to any Award upon the Participant’s death. A beneficiary,
    legal guardian, legal representative or other person claiming
    any rights under the Plan is subject to all terms and conditions
    of the Plan and any Award Agreement applicable to the
    Participant, except to the extent the Plan and such Award
    Agreement otherwise provide, and to any additional restrictions
    deemed necessary or appropriate by the Committee. If no
    beneficiary has been designated or survives the Participant,
    payment shall be made to the Participant’s estate. Subject
    to the foregoing, a beneficiary designation may be changed or
    revoked by a Participant at any time, provided the change
    or revocation is filed with the Committee.

 

    14.6 Stock Certificates.  All Stock
    issuable under the Plan is subject to any stop-transfer orders
    and other restrictions as the Committee deems necessary or
    advisable to comply with federal or state securities laws, rules
    and regulations and the rules of any national securities
    exchange or automated quotation system on which the Stock is
    listed, quoted or traded. The Committee may place legends on any
    Stock certificate or issue instructions to the transfer agent to
    reference restrictions applicable to the Stock.

 

    14.7 Acceleration Upon Death or
    Disability.  Unless otherwise set forth in an
    Award Agreement, upon the Participant’s death or Disability
    during his employment or service as a director, all outstanding
    Options, Stock Appreciation Rights, Restricted Stock Awards and
    other Awards in the nature of rights that may be exercised shall
    become fully exercisable and all restrictions on outstanding
    Awards shall lapse. Any Option or Stock Appreciation Rights
    Awards shall thereafter continue or lapse in accordance with the
    other provisions of the Plan and the Award Agreement. To the
    extent that this provision causes Incentive Stock Options to
    exceed the dollar limitation set forth in Section 7.2(b),
    the excess Options shall be deemed to be Non-Qualified Stock
    Options.

 

    14.8 Acceleration of Vesting and Lapse of
    Restrictions.  Subject to Sections 7.3(b) and
    13.7, the Committee may, in its sole discretion, at any time
    (including, without limitation, prior to, coincident with or
    subsequent to a Change of Control) determine that (a) all
    or a portion of a Participant’s Options, Stock Appreciation
    Rights and other Awards in the nature of rights that may be
    exercised shall become fully or partially exercisable, and/or
    (b) all or a part of the restrictions on all or a portion
    of the outstanding Awards shall lapse, in each case, as of such
    date as the Committee may, in its sole discretion, declare;
    provided, however, that, with respect to Awards
    that are subject to Section 409A of the Code, the Committee
    shall not have the authority to accelerate or postpone the
    timing of payment or settlement of an Award in a manner that
    would cause such Award to become subject to the interest and
    penalty provisions under Section 409A of the Code. The
    Committee may discriminate among Participants and among Awards
    granted to a Participant in exercising its discretion pursuant
    to this Section 14.8. All Awards made to Non-Employee
    Directors shall become fully vested and, in the case of Options,
    Stock Appreciation Rights and other Awards in the nature of
    rights that may be exercised, fully exercisable in the event of
    the occurrence of a Change of Control as of the date of such
    Change of Control.

 

    14.9 Other Adjustments.  If (i) an
    Award is accelerated under Sections 7.3(b), 13.7 and/or
    14.8 or (ii) a Change of Control occurs (regardless or
    whether acceleration under Sections 7.3(b), 13.7 and/or
    14.8 occurs), the Committee may, in its sole discretion, provide
    (a) that the Award will expire after a designated period of
    time after such acceleration or Change of Control, as
    applicable, to the extent not then exercised, (b) that the
    Award will be settled in cash rather than Stock, (c) that
    the Award will be assumed by another party to a transaction
    giving rise to the acceleration or a party to the Change of
    Control, (d) that the Award will otherwise be equitably
    converted or adjusted in connection with such transaction or
    Change of Control, or (e) any combination of the foregoing.
    The Committee’s determination need not be uniform and may
    be different for different Participants whether or not such
    Participants are similarly situated; provided,
    however, that, with respect to Awards that are subject to
    Section 409A of the Code, the Committee shall not have the
    authority to accelerate or postpone the timing of payment or
    settlement of an Award in a manner that would cause such Award
    to become subject to the interest and penalty provisions under
    Section 409A of the Code.

 

    PAGE 14

 

    14.10 Performance Goals.  In order to
    preserve the deductibility of an Award under Section 162(m)
    of the Code, the Committee may determine that any Award granted
    pursuant to this Plan to a Participant that is or is expected to
    become a Covered Employee shall be determined solely on the
    basis of (a) the achievement by the Corporation or
    Subsidiary of a specified target return, or target growth in
    return, on equity or assets, (b) the Corporation’s
    stock price, (c) the Corporation’s total shareholder
    return (stock price appreciation plus reinvested dividends)
    relative to a defined comparison group or target over a specific
    performance period, (d) the achievement by the Corporation
    or a Parent or Subsidiary, or a business unit of any such
    entity, of a specified target, or target growth in, net income,
    revenues, earnings per share, earnings before income and taxes,
    and earnings before income, taxes, depreciation and
    amortization, or (e) any combination of the goals set forth
    in (a) through (d) above. If an Award is made on such
    basis, the Committee shall establish goals prior to the
    beginning of the period for which such performance goal relates
    (or such later date as may be permitted under
    Section 162(m) of the Code or the regulations thereunder),
    and the Committee has the right for any reason to reduce (but
    not increase) the Award, notwithstanding the achievement of a
    specified goal. Any payment of an Award granted with performance
    goals shall be conditioned on the written certification of the
    Committee in each case that the performance goals and any other
    material conditions were satisfied.

 

    14.11 Termination of Employment.  Whether
    military, government or other service or other leave of absence
    shall constitute a termination of employment shall be determined
    in each case by the Committee at its discretion, and any
    determination by the Committee shall be final and conclusive. A
    termination of employment shall not occur (i) in a
    circumstance in which a Participant transfers from the
    Corporation to one of its Parents or Subsidiaries, transfers
    from a Parent or Affiliate to the Corporation, or transfers from
    one Parent or Affiliate to another Parent or Affiliate, or
    (ii) in the discretion of the Committee as specified at or
    prior to such occurrence, in the case of a split-off, spin-off,
    sale or other disposition of the Participant’s employer
    from the Corporation or any Parent or Affiliate. To the extent
    that this provision causes Incentive Stock Options to extend
    beyond three months from the date a Participant is deemed to be
    an employee of the Corporation, a Parent or Affiliate for
    purposes of Section 424(f) of the Code, the Options held by
    such Participant shall be deemed to be Non-Qualified Stock
    Options.

 

    14.12 Loan Provisions.  Subject to
    applicable laws, rules and regulations, including, without
    limitation, Section 402 of the Sarbanes-Oxley Act of 2002,
    with the consent of the Committee, the Corporation may make,
    guarantee or arrange for a loan or loans to a Participant with
    respect to the exercise of any Option granted under this Plan
    and/or with respect to the payment of the purchase price, if
    any, of any Award granted hereunder and/or with respect to the
    payment by the Participant of any or all federal and/or state
    income taxes due on account of the granting or exercise of any
    Award hereunder. The Committee shall have full authority to
    decide whether to make a loan or loans hereunder and to
    determine the amount, terms and provisions of any such loan(s),
    including the interest rate to be charged in respect of any such
    loan(s), whether the loan(s) are to be made with or without
    recourse against the borrower, the collateral or other security,
    if any, securing the repayment of the loan(s), the terms on
    which the loan(s) are to be repaid and the conditions, if any,
    under which the loan(s) may be forgiven.

 

    ARTICLE 15

    

 

    CHANGES
    IN CAPITAL STRUCTURE

 

    15.1 General.  Upon or in contemplation of
    (a) any reclassification, recapitalization, stock split
    (including a stock split in the form of a stock dividend) or
    reverse stock split, (b) any merger, combination,
    consolidation, or other reorganization, (c) any spin-off,
    split-up, or similar extraordinary dividend distribution in
    respect of the Stock (whether in the form of securities or
    property), (d) any exchange of Stock or other securities of
    the Corporation, or any similar, unusual or extraordinary
    corporate transaction in respect of the Stock, or (e) a
    sale of all or substantially all the business or assets of the
    Corporation as an entirety, then the

 

    PAGE 15

 

    Committee shall, in such manner, to such extent (if any) and at
    such time as it deems appropriate and equitable in the
    circumstances:

 

    (i) proportionately adjust any or all of (A) the
    number and type of shares of Stock (or other securities) that
    thereafter may be made the subject of Awards (including the
    specific share limits, maximums and numbers of shares set forth
    elsewhere in this Plan), (B) the number, amount and type of
    shares of Stock (or other securities or property) subject to any
    or all outstanding Awards, (C) the grant, purchase, or
    exercise price (which term includes the base price of any SAR or
    similar right) of any or all outstanding Awards, (D) the
    securities, cash or other property deliverable upon exercise or
    payment of any outstanding Awards, or (E) the performance
    standards applicable to any outstanding Awards, or

 

    (ii) make provision for a cash payment or for the
    assumption, substitution or exchange of any or all outstanding
    share-based Awards or the cash, securities or property
    deliverable to the holder of any or all outstanding share-based
    Awards, based upon the distribution or consideration payable to
    holders of the Stock upon or in respect of such event.

 

    The Committee may adopt such valuation methodologies for
    outstanding Awards as it deems reasonable in the event of a cash
    or property settlement and, in the case of Options, SARs or
    similar rights, but without limitation on other methodologies,
    may base such settlement solely upon the excess if any of the
    per share amount payable upon or in respect of such event over
    the exercise or base price of the Award. With respect to any
    Award of an Incentive Stock Option, the Committee may make such
    an adjustment that causes the option to cease to qualify as an
    Incentive Stock Option without the consent of the affected
    Participant.

 

    In any of such events, the Committee may take such action prior
    to such event to the extent that the Committee deems the action
    necessary to permit the Participant to realize the benefits
    intended to be conveyed with respect to the underlying shares in
    the same manner as is or will be available to stockholders
    generally. In the case of any stock split or reverse stock
    split, if no action is taken by the Committee, the proportionate
    adjustments contemplated by clause (i) above shall
    nevertheless be made.

 

    ARTICLE 16

    

 

    AMENDMENT,
    MODIFICATION AND TERMINATION

 

    16.1 Amendment, Modification and
    Termination.  The Board or the Committee may, at
    any time and from time to time, amend, modify or terminate the
    Plan; provided, however, that the Board or the Committee may
    condition any amendment or modification on the approval of
    shareholders of the Corporation if such approval is necessary or
    deemed advisable with respect to tax, securities or other
    applicable laws, policies or regulations.

 

    16.2 Awards Previously Granted.  At any
    time and from time to time, but subject to Section 4.3, the
    Committee may amend, modify or terminate any outstanding Award
    or Award Agreement without approval of the Participant;
    provided, however, that, subject to the terms of the applicable
    Award Agreement, such amendment, modification or termination
    shall not, without the Participant’s consent, reduce or
    diminish the value of such Award determined as if the Award had
    been exercised, vested, cashed in or otherwise settled on the
    date of such amendment or termination; provided further,
    however, that the original term of any Option may not be
    extended. No termination, amendment, or modification of the Plan
    shall adversely affect any Award previously granted under the
    Plan, without the written consent of the Participant.
    Notwithstanding any provision herein to the contrary, the
    Committee shall have broad authority to amend the Plan or any
    outstanding Award under the Plan without approval of the
    Participant to the extent necessary or desirable (i) to
    comply with, or take into account changes in, applicable tax
    laws, securities laws, accounting rules and other applicable
    laws, rules and regulations or (ii) to ensure that an Award
    is not subject to interest and penalties under Section 409A
    of the Code.

 

    PAGE 16

 

    ARTICLE 17

    

 

    GENERAL
    PROVISIONS

 

    17.1 No Rights to Awards.  No Participant
    or any eligible participant shall have any claim to be granted
    any Award under the Plan, and neither the Corporation nor the
    Committee is obligated to treat Participants or eligible
    participants uniformly.

 

    17.2 No Stockholder Rights.  No Award
    gives the Participant any of the rights of a shareholder of the
    Corporation unless and until shares of Stock are in fact issued
    to such person in connection with the exercise, payment or
    settlement of such Award.

 

    17.3 Withholding.  The Corporation or any
    Subsidiary, Parent or Affiliate shall have the authority and the
    right to deduct or withhold, or require a Participant to remit
    to the Corporation, an amount sufficient to satisfy federal,
    state, local and other taxes (including the Participant’s
    FICA obligation) required by law to be withheld with respect to
    any taxable event arising as a result of the Plan. With respect
    to withholding required upon any taxable event under the Plan,
    the Committee may, at the time the Award is granted or
    thereafter, require or permit that any such withholding
    requirement be satisfied, in whole or in part, by
    (i) withholding from the Award shares of Stock or
    (ii) delivering shares of Stock that are already owned,
    having a Fair Market Value on the date of withholding equal to
    the minimum amount (and not any greater amount) required to be
    withheld for tax purposes, all in accordance with such
    procedures as the Committee establishes. The Corporation or any
    Subsidiary, Parent or Affiliate, as appropriate, shall also have
    the right to deduct from all cash payments made to a Participant
    (whether or not such payment is made in connection with an
    Award) any applicable taxes required to be withheld with respect
    to such payments.

 

    17.4 No Right to Continued
    Service.  Nothing in the Plan or any Award
    Agreement shall interfere with or limit in any way the right of
    the Corporation or any Parent or Affiliate to terminate any
    Participant’s employment or status as an officer, director
    or consultant at any time, nor confer upon any Participant any
    right to continue as an employee, officer, director or
    consultant of the Corporation or any Parent or Affiliate. In its
    sole discretion, the Board or the Committee may authorize the
    creation of trusts or other arrangements to meet the obligations
    created under the Plan to deliver shares of Stock with respect
    to awards hereunder.

 

    17.5 Unfunded Status of Awards.  The Plan
    is intended to be an “unfunded” plan for incentive and
    deferred compensation. With respect to any payments not yet made
    to a Participant pursuant to an Award, nothing contained in the
    Plan or any Award Agreement shall give the Participant any
    rights that are greater than those of a general creditor of the
    Corporation or any Parent or Affiliate.

 

    17.6 Indemnification.  To the extent
    allowable under applicable law, each member of the Committee
    shall be indemnified and held harmless by the Corporation from
    any loss, cost, liability or expense that may be imposed upon or
    reasonably incurred by such member in connection with or
    resulting from any claim, action, suit or proceeding to which
    such member may be a party or in which he may be involved by
    reason of any action or failure to act under the Plan and
    against and from any and all amounts paid by such member in
    satisfaction of judgment in such action, suit or proceeding
    against him; provided such member shall give the Corporation an
    opportunity, at its own expense, to handle and defend the same
    before such member undertakes to handle and defend it on his or
    her own behalf. The foregoing right of indemnification shall not
    be exclusive of any other rights of indemnification to which
    such persons may be entitled under the Corporation’s
    Certificate of Incorporation or Bylaws, as a matter of law, or
    otherwise, or any power that the Corporation may have to
    indemnify them or hold such persons harmless.

 

    17.7 Relationship to Other Benefits.  No
    payment under the Plan shall be taken into account in
    determining any benefits under any pension, retirement, savings,
    profit sharing, group insurance, welfare or benefit plan of the
    Corporation or any Parent or Affiliate unless provided otherwise
    in such other plan.

 

    17.8 Expenses; Application of Funds.  The
    expenses of administering the Plan shall be borne by the
    Corporation and its Parents or Subsidiaries. The proceeds
    received by the Corporation from the sale of shares of Stock
    pursuant to Awards will be used for general corporate purposes.

 

    PAGE 17

 

    17.9 Titles and Headings.  The titles and
    headings of the Sections in the Plan are for convenience of
    reference only, and in the event of any conflict, the text of
    the Plan, rather than such titles or headings, shall control.

 

    17.10 Gender and Number.  Except where
    otherwise indicated by the context, any masculine term used
    herein also shall include the feminine; the plural shall include
    the singular and the singular shall include the plural.

 

    17.11 Fractional Shares.  No fractional
    shares of Stock shall be issued and the Committee shall
    determine, in its discretion, whether cash shall be given in
    lieu of fractional shares or whether such fractional shares
    shall be eliminated by rounding up or down.

 

    17.12 Government and Other
    Regulations.  The obligation of the Corporation to
    make payment of awards in Stock or otherwise shall be subject to
    all applicable laws, rules and regulations, and to such
    approvals by government agencies as may be required. To the
    extent that Awards under the Plan are awarded to individuals who
    are domiciled or resident outside of the United States or to
    persons who are domiciled or resident in the United States but
    who are subject to the tax laws of a jurisdiction outside of the
    United States, the Committee may adjust the terms of the Awards
    granted hereunder to such person (i) to comply with the
    laws of such jurisdiction and (ii) to avoid adverse tax
    consequences relating to an Award. The authority granted under
    the previous sentence shall include the discretion for the
    Committee to adopt, on behalf of the Corporation, one or more
    sub-plans applicable to separate classes of Participants who are
    subject to the laws of jurisdictions outside of the United
    States.

 

    17.13 Securities Law Restrictions.  An
    Award may not be exercised or settled and no shares of Stock may
    be issued in connection with an Award unless the issuance of
    such shares of Stock has been registered under the 1933 Act
    and qualified under applicable state “blue sky” laws
    and any applicable foreign securities laws, or the Corporation
    has determined that an exemption from registration and from
    qualification under such state “blue sky” laws is
    available. The Corporation shall be under no obligation to
    register under the 1933 Act, or any state securities act,
    any of the shares of Stock issued in connection with the Plan.
    The shares issued in connection with the Plan may in certain
    circumstances be exempt from registration under the
    1933 Act, and the Corporation may restrict the transfer of
    such shares in such manner as it deems advisable to ensure the
    availability of any such exemption. The Committee may require
    each Participant purchasing or acquiring shares of Stock
    pursuant to an Award under the Plan to represent to and agree
    with the Corporation in writing that such Participant is
    acquiring the shares of Stock for investment purposes and not
    with a view to the distribution thereof. All certificates for
    shares of Stock delivered under the Plan shall be subject to
    such stock-transfer orders and other restrictions as the
    Committee may deem advisable under the rules, regulations and
    other requirements of the Securities and Exchange Commission,
    any exchange upon which the Stock is then listed, and any
    applicable securities law, and the Committee may cause a legend
    or legends to be put on any such certificates to make
    appropriate reference to such restrictions.

 

    17.14 Satisfaction of
    Obligations.  Subject to applicable law, the
    Corporation may apply any cash, shares of Stock, securities or
    other consideration received upon exercise or settlement of an
    Award to any obligations a Participant owes to the Corporation
    and its Parents, Subsidiaries or Affiliates in connection with
    the Plan or otherwise, including, without limitation, any tax
    obligations or obligations under a currency facility established
    in connection with the Plan.

 

    17.15 Section 409A of the Code.  If
    any provision of the Plan or an Award Agreement contravenes any
    regulations or Treasury guidance promulgated under
    Section 409A of the Code or could cause an Award to be
    subject to the interest and penalties under Section 409A of
    the Code, such provision of the Plan or any Award Agreement
    shall be modified to maintain, to the maximum extent
    practicable, the original intent of the applicable provision
    without violating the provisions of Section 409A of the
    Code. Moreover, any discretionary authority that the Board or
    the Committee may have pursuant to the Plan shall not be
    applicable to an Award that is subject to Section 409A of
    the Code to the extent such discretionary authority will
    contravene Section 409A of the Code or the Treasury
    guidance promulgated thereunder.

 

    17.16 Governing Law.  To the extent not
    governed by federal law, the Plan and all Award Agreements shall
    be construed in accordance with and governed by the laws of the
    State of Delaware.

 

    PAGE 18

 

    17.17 Additional Provisions.  Each Award
    Agreement may contain such other terms and conditions as the
    Board or the Committee may determine, provided that such
    other terms and conditions are not inconsistent with the
    provisions of this Plan. In the event of any conflict or
    inconsistency between the Plan and an Award Agreement, the Plan
    shall govern and the Award Agreement shall be interpreted to
    minimize or eliminate such conflict or inconsistency.

 

    PAGE 19EX-10.49 LICENSE AGREEMENT

 

Exhibit 10.49

LICENSE AGREEMENT

     This License Agreement (“Agreement”) is dated and effective as of the last signature date
below (“Effective Date”), and is made by and between the UNIVERSITY OF GEORGIA RESEARCH FOUNDATION,
INC., a Georgia non-profit corporation, and INHIBITEX, INC., a Delaware corporation.

     In consideration of the mutual covenants and promises contained in this Agreement and
intending to be legally bound, the Parties agree as follows.

CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY ASTERISKS, HAVE BEEN OMITTED
AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION, PURSUANT TO RULE 24B-2 UNDER THE
SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

ARTICLE 1. DEFINITIONS

	1.1.	 	“Affiliate” means any corporation or non-corporate entity that controls, is controlled by, or
is under common control with a Party to this Agreement. A corporation or non-corporate entity
is to be regarded as in control of a corporation if it owns, or directly or indirectly
controls, at least fifty percent (50%) of the voting stock of the other corporation, or (i) in
the absence of the ownership of at least fifty percent (50%) of the voting stock of a
corporation or (ii) in the case of a non-corporate business entity, or non-profit corporation,
if it possesses, directly or indirectly, the power to direct or cause the direction of the
management and policies of such corporation or non-corporate entity, as applicable. For
purposes of this Agreement, an entity can be either an Affiliate or a Sublicensee, but not
both. If an entity meets the definition of “Affiliate,” it shall be treated herein as an
Affiliate for all purposes, even if it has also entered into a Sublicense.
	 
	1.2.	 	“Development Plan” means Licensee’s technology development plan contained in Appendix A, as
may be amended from time to time during the term of this Agreement. Any prior Development
Plan for any Licensed Product that is no longer being pursued by Licensee shall be deleted
from Appendix A.
	 
	1.3.	 	“Field” means any and all anti-viral uses, including but not limited to prophylaxis,
diagnosis or treatment of a condition, infection or disease associated with a virus, except
the Field specifically excludes any anti-viral use associated with (a) the following
DNA virus families:  poxviridae, polyomaviridae, papillomaviridae, adenoviridae, and
parvoviridae; and (b) all RNA viruses except for the following RNA virus families, which are
specifically included in the Field:  retroviridiae (for example HIV as defined below),
flaviviridae (for example HCV as defined below), orthomyxoviridae, paramyxoviridae, and
coronaviridae. In the event that Licensee terminates the Sponsored Research Agreement
(“SRA”), a copy of which is attached as Appendix J, pursuant to paragraph 16(d) of the SRA,
the Field of this License Agreement shall automatically be amended to exclude HCV.

1

 

	1.4.	 	“Indication” shall mean the prevention, treatment or diagnosis of a condition, infection or
disease caused by or associated with a specific virus in the Field. For example “HIV
Indication” means the prevention, treatment or diagnosis of a condition, infection or disease
caused by or associated with Human Immunodeficiency Virus (“HIV”) and “HCV Indication” means
prevention, treatment or diagnosis of a condition, infection or a disease caused by or
associated with Hepatitis C Virus (“HCV”).
	 
	1.5.	 	“Licensed Patents” means (i) the patent applications listed in Appendix B, (ii) the United
States patents that may issue from the patent applications listed in Appendix B and from
divisionals and continuations and continuations-in-part of such United States patents and
patent applications, (iii) all foreign counterparts of such patent applications, and all
patents that issue thereon anywhere in the world, including reexamined and reissued patents.
Licensed Patents shall also mean any patent application having claims in the Field directed to
an invention made in the laboratory of Dr. Vasu Nair six months or less prior to the Effective
date, and (iv) with respect to the matters described in clauses (i), (ii) and (iii) above, all
provisionals, renewals, re-examinations, patents of addition, supplementary protection
certificates, extensions, restorations of patent terms, letters of patent, registration or
confirmation patents and reissues of such patents or patent applications.
	 
	1.6.	 	“Licensed Product” means any compound, product, service, or process in the Field, the
manufacture, use, or sale of which, but for the license granted herein, would infringe at
least one Valid Claim.
	 
	1.7.	 	“Licensee” means Inhibitex, Inc. and its Affiliates.
	 
	1.8.	 	“Net Sales” means the gross amount paid to and received by Licensee as consideration for the
sale of Licensed Product by Licensee to any third party that is not an Affiliate of Licensee,
less the following deductions:

	 	(a).	 	credits actually given for rejected, defective, recalled, or returned Licensed
Product or because of charge backs, refunds, rebates, or retroactive price reductions;
	 
	 	(b).	 	freight and insurance costs and any other outbound transportation charges, if
separately stated on the invoice or purchase order or other document of sale paid by
the customer; and
	 
	 	(c).	 	excise taxes and customs duties included in the invoiced amount;
	 
	 	(d).	 	other taxes (including but not limited to tariffs, duties, excises, sales,
value added, consumption or other taxes) imposed and paid by Licensee in connection
with the production, sale, use, or delivery of Licensed Products; and
	 
	 	(e).	 	customary cash discounts, rebates or charge backs actually granted, allowed,
taken or incurred in connection with the sale of such Licensed Product, or granted or
given to or imposed by governmental authorities and managed care systems (that is,
systems that integrate the financing and delivery of healthcare services to covered
members, including but not limited to, pharmacy benefit managers (PBMs), prescription
drug plans (PDPs), health maintenance organizations (HMOs), preferred provider
organizations (PPOs), independent practice associations (IPAs) and other similar
healthcare organizations), wholesalers and

2

 

other distributors, buying groups, health care insurance carriers, pharmacy benefit
management companies, health maintenance organizations or other institutions or
health care organizations (including, without limitation, any payments in respect of
sales to any governmental authorities or with respect to any government-subsidized
program or managed care organization and any discounts and rebates for any program
for the benefit of low income, uninsured or other patients who receive the
opportunity to receive Licensed Products at discounted prices).

	1.9.	 	“Parties” means UGARF and Licensee. “Party” means UGARF or Licensee.
	 
	1.10.	 	“Patent Expenses” means the actual and documented out of pocket costs paid to third parties
by UGARF in prosecuting and maintaining the Licensed Patents.
	 
	1.11.	 	“Sublicense” means a grant of all or part of the rights to Licensed Patents that are granted
to Licensee by this Agreement, made by (a) Licensee; (b) a person or entity that has licensed
such rights from Licensee; or (c) a person or entity that has received such rights from a
person or entity that licensed such rights from Licensee.
	 
	1.12.	 	“Sublicensee” means any person or entity entering into a Sublicense.
	 
	1.13.	 	“Territory” means the world.
	 
	1.14.	 	“UGA” means the University of Georgia, a public institution of higher education within the
University System of Georgia.
	 
	1.15.	 	“UGARF” means the University of Georgia Research Foundation, Inc., an independent Georgia
non-profit corporation governed by a board of directors separate from the Board of Regents of
the University System of Georgia. The non-profit mission of UGARF includes supporting
research and educational goals of UGA. UGA is not an Affiliate of UGARF.
	 
	1.16.	 	“Valid Claim” means a claim in an unexpired patent or patent application included in the
Licensed Patents, so long as such claim shall not have been irrevocably abandoned or held
invalid in an unappealed or unappealable decision of a court or other authority of competent
jurisdiction.

ARTICLE 2. GRANT OF LICENSE AND OPTION

	2.1.	 	Grant. Subject to the reservations in this Article and payment obligations in Article 3,
UGARF grants to Licensee the exclusive right and license to make, have made, use, import,
offer for sale, and sell in the Territory, Licensed Products during the term of this Agreement
including Licensee’s right to grant sublicenses pursuant to paragraph 2.3. In no event shall
this grant take effect until Licensee has paid and delivered to UGARF the initial license
payments and certificates of stock described in paragraph 3.1.
	 
	2.2.	 	Reservation of Rights.

	 	(a).	 	The license granted in paragraph 2.1 is subject to a reserved, non-exclusive
license of UGARF, transferable to UGA and its not-for-profit academic collaborators, to
practice the Licensed Patents in the Field, only for the purpose of non-commercial
scientific inquiry, academic research, and education. This

3

 

	 	 	 	reservation does not extend to any research funded by any non-governmental,
non-academic or for profit entity. Any materials sent to UGA, and any materials
sent by UGA to a not-for-profit academic collaborator outside of UGA for use in the
Field will be sent using a material transfer agreement that includes customary
restrictions on use and non-disclosure.
	 
	 	(b).	 	The inventions contained in the Licensed Patents were conceived by employees of
UGA with the use of research funding from the U.S. National Institutes of Health.
Therefore, there is reserved from the rights granted hereunder the rights of the U.S.
government to practice and exercise all rights to the Licensed Patents under 37 C.F.R.
§ 401 et seq. UGARF shall promptly notify Licensee in writing when
UGARF becomes aware of any such practice or exercise, or intent to such practice or
exercise, by the U.S. government.

	2.3.	 	Sublicenses. Licensee may grant sublicenses of any and all rights granted to Licensee
herein, and Licensee may authorize its sublicensees to grant sub-sublicenses. Such
Sublicenses shall not contain terms and conditions that conflict with those included in this
Agreement. Licensee shall provide to UGARF a complete copy of all Sublicenses within thirty
(30) days after execution. UGARF shall treat the existence, terms and conditions of such
Sublicenses as the Confidential Information of Licensee and, if requested, shall sign a
non-disclosure agreement with Sublicensee.

	 	(a).	 	Licensee shall remain fully responsible for the operations of Sublicensees that
are relevant to this Agreement as if such operations were carried out by Licensee.
Licensee is responsible for payments owed to UGARF and triggered by activities of
Sublicensees such as development milestone payments (Appendix F).
	 
	 	(b).	 	No fees are owed directly to UGARF by a Sublicensee as a result of entering
into a Sublicense.
	 
	 	(c).	 	Licensee shall include, or shall cause to be included, in all Sublicenses a
provision requiring the Sublicensee to indemnify UGARF and maintain insurance coverage
to the same extent that Licensee is so required under this Agreement, and a provision
granting UGARF the right to audit Sublicensee to the same extent that UGARF may audit
Licensee hereunder.
	 
	 	(d).	 	Upon termination of this Agreement, and provided that a Sublicensee is in
compliance (or promptly cures any non-compliance) in all material respects with the
terms of its Sublicense on the date of termination, upon request by a Sublicensee,
UGARF shall grant such Sublicensee a license to Licensed Patents having the same
material terms as this Agreement, as may have been amended by the Parties. Except as
set forth in this paragraph 2.3(d), in no event does UGARF have any obligations to a
Sublicensee whatsoever with respect to (i) any past, current, or future obligations
Licensee may have had, or may in the future have pursuant to such Sublicense, and (ii)
any future obligations to Sublicensee beyond those to Licensee in this Agreement.

	2.4.	 	No Other Obligations. Except as expressly stated in this Agreement, none of UGARF, UGA,
their faculty, staff, employees, or students are obligated to report or deliver to Licensee or
its Sublicensees under this Agreement any compounds, derivatives, technical

4

 

	 	 	information, know-how, data, or other tangible materials of any kind related to the Licensed
Patents.
	 
	2.5.	 	No Implied License. The license and rights granted in this Agreement do not confer any
rights upon Licensee as to any patents, technology, or compounds not specifically identified
in this Agreement as part of Licensed Patents.

ARTICLE 3. CONSIDERATION

	3.1.	 	Initial License Payments and Requirements. The grant of rights and license to the Licensed
Patents set out in paragraphs 2.1 and 2.3 shall only become effective after Licensee has met
the following pre-conditions:

	 	(a).	 	Licensee shall, on the Effective Date, pay UGARF a non-refundable, up-front,
one-time licensing fee in the amount of seven hundred fifty thousand dollars
($750,000); and
	 
	 	(b).	 	Licensee shall, within fifteen (15) business days of the Effective Date, issue
and deliver certificate shares of Licensee common stock to UGARF having a total market
value of three hundred thousand dollars ($300,000) as provided for in paragraph 3.2
below; provided, however, that Licensee shall issue a portion of such shares directly
to the inventors named in the Licensed Patents only as UGARF may direct on or before
the Effective Date; and
	 
	 	(c).	 	Licensee shall, on the Effective Date, execute the sponsored research agreement
(“SRA”) with UGARF attached hereto as Appendix J, and pay any amounts that are due on
the Effective Date pursuant to the SRA.

	3.2.	 	Share Value. The number of shares delivered under paragraph 3.1(b) will be determined by
dividing the total market value as provided for in such paragraphs by the average of the
closing price per share of the Licensee’s common stock as reported on NASDAQ for the five (5)
trading days prior to the Effective Date.
	 
	3.3.	 	Royalty for Sales by Licensee. For sales of Licensed Products by Licensee (but not for sales
by a Sublicensee), an Affiliate of Licensee, or an assignee of Licensee’s rights and
obligations under this Agreement, UGARF shall be paid the following royalties:

	 	(a).	 	Royalty. Licensee shall pay UGARF a royalty of [ * * * ] on the total Net
Sales of Licensed Products sold by Licensee, an Affiliate of Licensee, or an assignee
of Licensee’s rights and obligations under this Agreement; provided that if no Valid
Claim in a given country would be infringed by any such sale but for the license
granted herein, then no royalty is owed on any such sales of Licensed Products in such
country. Only one royalty shall be paid to UGARF per Licensed Product regardless of
the number of Licensed Patents that would be infringed by the Licensed Product absent
the license granted herein. Further, only one Net Sale of a given Licensed Product
shall be subject to a royalty payment regardless of how many arms length transactions
may occur between manufacture of the Licensed Product and purchase by the final end
user, in which case the royalty paid to UGARF will be based upon the first arms length
transaction between Licensee and any third party that is not an Affiliate of Licensee.
The royalty owed under

5

 

	 	 	 	this Section 3.3(a) shall be increased from [ * * * ] to[ * * * ] upon any Net Sales
in a given year above total Net Sales for such year of [ * * * ], but in all cases
the royalty rate on the first [ * * * ]of Net Sales in a given year shall be [ * * *
].
	 
	 	(b).	 	Calculation of Royalties. If Licensee’s manufacture, offer for sale or sale of
a Licensed Product would infringe rights of a third party but for a license, then
Licensee may reduce the royalty percentage owed to UGARF on Net Sales of such Licensed
Product under Section 3.3(a) by any reasonable royalty or other amounts actually paid
to such third party by Licensee on such sale of Licensed Product for such license, but
under no circumstances may Licensee reduce such royalty percentage to less than [ * * *
] under paragraph 3.3(a) (no less than [ * * * ] or [ * * * ], as applicable).
	 
	 	(c).	 	Increased Royalty Rate. In the event that Licensee files or otherwise
initiates any proceeding against UGARF in any country (the “Challenge Litigation”) in
which it asserts that any one or more of the Licensed Patents is invalid, then,
effective as of the calendar quarter in which such proceeding is initiated and solely
with respect to Net Sales in such country of Challenge Litigation, (i) the royalty
percentage under paragraph 3.3(a) will [ * * * ] (to [ * * * ] or to [ * * * ], as
applicable); and (ii) the minimum royalty percentage under paragraph 3.3(b) will [ * *
* ] (to [ * * * ] or [ * * * ], as applicable). In the event that the outcome of such
proceeding affirms the validity of the Licensed Patents, whether through order,
judgment, or other determination, then, effective as of the calendar quarter in which
such order, judgment, or other determination is effective and solely with respect to
Net Sales in such country in which such Challenge Litigation is initiated, (i) the
royalty percentage applicable to paragraph 3.4(a) will remain at the [ * * * ] or [ * *
* ], as applicable); and (ii) the minimum royalty percentage applicable to paragraph
3.4(b) will remain at the [ * * * ] or [ * * * ], as applicable).
	 
	 	(d).	 	Combination Product Royalties. A Combination Product means any pharmaceutical
product which consists of both: (i) a Licensed Product; and (ii) one or more active
compounds for use in the Field, which compounds are not Licensed Products. In the
event a Licensed Product is sold as part of a Combination Product in a given country,
the Net Sales from the Combination Product, for the purposes of determining royalty
payments due under paragraph 3.3.(a) in such country, shall be determined by
multiplying the Net Sales of the Combination Product, during the applicable royalty
reporting period, by the fraction, A/(A+B), where A is the average net sales price of
the Licensed Product in the Combination Product when sold separately in finished form
and B is the average net sales price of the other active compounds used in such
Combination Product when sold separately in finished form, in each case during the
applicable royalty reporting period or, if sales of both the Licensed Product in the
Combination Product and any of the other active compound(s) did not each occur
separately in such period, then in the most recent royalty reporting period in which
sales of all or both occurred. In the event of any disagreement as to the
applicability of this Section 3.3(d) to a given Licensed Product or as to the net sales
price in a Combination Product, then these disputes shall be resolved by a

6

 

	 	 	 	three member panel of qualified independent third parties, one chosen by each Party
and the third chosen by the first two panel members. The determination of the panel
shall be made within twenty (20) business days following written submissions by the
Parties and a one day oral hearing. The Parties shall pay their own costs and
expenses, including but not limited to attorney’s fees and expert fees, associated
with the use of the panel, and shall share equally the costs and expenses charged by
the panel members themselves. The determination of the panel shall be final and
binding on the Parties.
	 
	 	(e).	 	Notwithstanding the foregoing, whether through agreement between the Parties or
through decision by the panel, the royalty due to UGARF on sales of Combination
Products shall not be less than [ * * * ] the royalty percentage under paragraph 3.3(a)
[ * * * ] or [ * * * ], as applicable) of Net Sales of the Combination Products as
determined by applying the definition of Net Sales found in paragraph 1.8 to the total
sales price of each Combination Product.

	3.4.	 	Royalty for Sales by Sublicensee. Royalties received by Licensee from a Sublicensee are
subject to paragraph 3.7 and are included in the definition of “Sublicense Payment” in
Appendix E.
	 
	3.5.	 	Annual Minimum Royalties.

	 	(a).	 	For Sales by Licensee. For sales by Licensee, an Affiliate of Licensee, or an
assignee of Licensee’s rights and obligations under this Agreement, Licensee shall pay
to UGARF the amounts identified in Appendix C. If applicable, any annual minimum
royalty payment shall be made within sixty (60) days of the end of each respective
calendar year. If this Agreement terminates for any reason during a year, a pro-rated
annual minimum royalty, if applicable, shall be paid for each Indication. The annual
minimum royalty paid to UGARF shall not exceed the amounts listed in Appendix C
regardless of the number of Licensed Patents.
	 
	 	(b).	 	For Sales by Sublicensee. Annual minimum royalty payments, if any, received by
Licensee from a Sublicensee are subject to paragraph 3.7 and are included in the
definition of “Sublicense Payments” in Appendix E.

	3.6.	 	Annual License Maintenance Fees. Licensee shall pay to UGARF an annual license maintenance
fee as set forth in Appendix D no later than thirty (30) days after each anniversary of the
Effective Date; provided, however that Licensee’s obligation to pay an annual license
maintenance fee shall cease in the first calendar year following the first sale of any
Licensed Product. Only one annual license maintenance fee is due to UGARF by Licensee in any
calendar year regardless of the number of patents within the Licensed Patents, and regardless
of the number of Sublicensees.
	 
	3.7.	 	Sublicense Fees. In addition to other payments required under this Article 3, in the event
that one or more Sublicenses are granted, Licensee agrees to pay UGARF Sublicense Fees as set
forth and defined in Appendix E. Sublicense Fees are only due if and when Sublicense Payments
are actually received by Licensee from a Sublicensee; provided however, in any calendar year
following the calendar year of the first sale of Licensed Product by a Sublicensee in which
Licensee has no sales of Licensed Product, then the combined total of all Sublicensee Fees
paid to UGARF by Licensee for such calendar

7

 

	 	 	year for all Licensed Products and Indications shall not be less than [ * * * ] irrespective
of any amounts actually received by Licensee from Sublicensees. If owed, this fee shall be
due to UGARF sixty (60) days after the end of the calendar year.
	 
	3.8.	 	Milestone Payments. Licensee shall notify UGARF of the occurrence of a milestone event
within thirty (30) days of Licensee’s knowledge of such event, but in no event later than
ninety (90) days after its occurrence. Licensee shall make milestone payments to UGARF as set
forth in Appendix F. Each milestone payment is owed whether the milestone is achieved by
Licensee or by a Sublicensee, and payment shall be made within sixty (60) days after
Licensee’s notice of each milestone event.
	 
	3.9.	 	Reimbursement for Patent Expenses. Licensee shall reimburse UGARF for all un-reimbursed
Patent Expenses incurred before the Effective Date. Thereafter, Licensee shall reimburse
UGARF for all un-reimbursed Patent Expenses incurred for each patent or patent application
within the Licensed Patents for which Licensee is the only licensee of UGARF (excluding
Sublicensees). For Licensed Patents where there are one or more additional licensees of UGARF
other than Licensee (excluding Sublicensees), Licensee shall reimburse UGARF a pro rata share
of Patent Expenses based upon the number of aggregate licensees; for example, Licensee would
reimburse UGARF for [ * * * ] of Patent Expenses incurred for a Licensed Patent having one
other, third party licensee of UGARF (excluding Sublicensees). If UGARF is reimbursed by a
third party licensee for Patent Expenses incurred prior to the date of the third party
license, and those Patent Expenses have already been reimbursed to UGARF by Licensee
(“duplicate reimbursement”), then UGARF shall pay [ * * * ] of such duplicate reimbursement to
Licensee. As used herein, un-reimbursed Patent Expenses shall mean UGARF has not received,
and has no right to receive, reimbursement of such expenses from any third party. UGARF shall
invoice Licensee for reimbursement of Patent Expenses, and Licensee shall remit payment to
UGARF within thirty (30) days of the invoice date.
	 
	3.10.	 	Taxes. UGARF shall not be responsible to pay any taxes, customs, or other governmental
charges or levies (“Taxes”) imposed, charged or levied on sales of Licensed Products by
Licensee or Sublicensee. Nevertheless, any Taxes paid by Licensee or Sublicensees shall be
taken into account in calculating Net Sales. If any Taxes are imposed upon UGARF in
connection with the sale of Licensed Products, Licensee shall pay such Taxes, except that
UGARF shall be responsible for payment of any taxes (including but not limited to income
taxes) imposed, charged or levied on it as a result of its role as licensor and the recipient
of income in the form of royalty payments and any other payments made to it hereunder.

ARTICLE 4. REPORTS AND AUDITS

	4.1.	 	Progress Reports. Within sixty (60) days of each calendar year end, Licensee shall provide
UGARF with a written report detailing the current status of the Licensee and Sublicensees
toward meeting the objectives of the Development Plan.
	 
	4.2.	 	Payment Reports. During the term of this Agreement, Licensee shall furnish, or cause to be
furnished, written reports to UGARF regarding Net Sales of Licensed Products, Sublicensee
Fees, and all other payments due to UGARF, that include all applicable information identified
in Appendix G. Licensee shall provide these reports within sixty

8

 

	 	 	(60) days of the end of each calendar quarter following the first sale of Licensed Products.
	 
	4.3.	 	Report of First Sale. Licensee shall make written notice to UGARF of the date of the first
arm’s length commercial sale for consideration of each Separate and Distinct (as defined in
Appendix C) Licensed Product within sixty (60) days of such sale, whether such sale is made by
Licensee or by a Sublicensee.
	 
	4.4.	 	Audit. Licensee shall keep, and shall cause Sublicensees to keep, accurate records in
sufficient detail such that the amount of any payment due and payable to UGARF may be
verified. During the term of this Agreement and for a period of one year thereafter, Licensee
shall permit UGARF or its qualified representatives no more than once per calendar year to
inspect, copy, and audit its books and records with respect only to payments due under this
Agreement, upon reasonable notice and during normal business hours. Such books and records
include, but are not limited to, invoice registers and original invoices; product sales
reports; price lists, sales ledgers; accounting general ledgers; sublicense and distributor
agreements; price lists; product catalogues and marketing materials; financial statements and
income tax returns; sales tax returns; and inventory and production records and shipping
documents. Such examination shall be made at UGARF’s expense. If such examination determines
an underpayment of [ * * * ] or more in the amount of royalty or other payments due UGARF for
any year, then Licensee shall reimburse UGARF for reasonable out of pocket costs associated
with such examination or audit, including any professional fees. Conversely, if such
examination determines an overpayment was made by Licensee, such overpayments will be refunded
or credited against future amounts owed by Licensee. No separate confidentiality agreement
will be required between the Parties to conduct such an examination or audit so long as any
representatives of UGARF agree to be bound by confidentiality terms no less restrictive than
those set forth in Article 10 herein, and the results of the audit shall be treated as
Licensee’s Confidential Information. The Parties agree that UGARF or its representative may
keep a copy of all documents provided by Licensee hereunder and all documents created by UGARF
or its representative in connection with such examination or audit for archival purposes.

ARTICLE 5. PAYMENTS

	5.1.	 	Payments and Due Dates. Licensee shall pay to UGARF all payments attributable to the period
covered by each payment report under paragraph 4.2 on the date such payment report is due.
All other payments, if not otherwise specified in this Agreement, shall be paid within thirty
(30) days after the due date. All payments shall be made by wire transfer to an account
designated by UGARF, or in person, via U.S. mail or by commercial carrier to Technology
Commercialization Office, University of Georgia Research Foundation, Inc., Boyd Graduate
Studies Research Center, Athens, GA 30602-7411. Royalty reports shall be faxed or sent by
email or express courier to the Director, Technology Commercialization Office on the same
date.
	 
	5.2.	 	Currency Conversion. All payments shall be paid in U.S. dollars. If any Licensed Products
are sold for consideration other than dollars, the Net Sales of such Licensed

9

 

	 	 	Products shall first be determined in the currency of the country in which such sales of
Licensed Products were made and then converted to dollars at a ninety (90) day trailing
average published by the Wall Street Journal (U.S. ed.) for conversion of the foreign
currency into dollars on the last day of the quarter for which such payment is due.
	 
	5.3.	 	Overdue Payments. Overdue payments shall bear simple interest until paid at the lower of (i)
the annual rate of ten percent (10%) or (ii) the highest rate permitted by law. Any payment
not made due to a bona fide dispute between the Parties shall not be considered an overdue
payment until such dispute is resolved.
	 
	5.4.	 	Termination Report and Payment. Within sixty (60) days after the date of termination or
expiration of this Agreement, Licensee shall make a final report and payment to UGARF per
Articles 4 and 5, respectively, except that if Licensee continues to sell Licensed Products
after termination pursuant to paragraph 11.4, then Licensee shall continue to make payments
and reports as required by this Agreement through the period of continued sales, and shall
make a final report and payment to UGARF within sixty (60) days of the last date of continued
sales. Licensee shall reimburse UGARF for all Patent Expenses, as set forth in paragraph 3.8,
incurred by UGARF (i) through the effective date of termination; or (ii) through the period of
Licensee’s sales, if Licensee continues to make sales of Licensed Product after the effective
date of termination pursuant to paragraph 11.4.
	 
	5.5.	 	No Refunds or Credits. All amounts paid to UGARF by Licensee pursuant to paragraphs 3.1, 3.6
and 3.8 shall be non-refundable. Any amounts paid to UGARF pursuant paragraphs 3.3, 3.4, 3.5,
3.7, or 3.9 in error or subject to correction shall be refunded or credited against future
payments by Licensee.

ARTICLE 6. COMMERCIAL DILIGENCE, MILESTONES,

AND DEVELOPMENT PLANS

	6.1	 	Commercial Diligence. Licensee shall meet the obligations of paragraphs 6.2 and 6.3 and
shall otherwise use commercially reasonable efforts, directly or through Sublicensees, to
bring one or more Licensed Products to market. Sublicensee’s performance of any Licensee
obligations under this Agreement will be deemed performance by Licensee, and commercial
efforts by a Sublicensee will be deemed commercial efforts of Licensee.
	 
	6.2	 	Development Plans and Milestone Dates. At no time during the term of this Agreement will
there be a period greater than [ * * * ] in which Licensee (or at least one Sublicensee) is
not pursuing development of a Licensed Product pursuant to a Development Plan submitted to
UGARF, or at least one Licensed Product is not on the market.

	 	(a).	 	[ * * * ] and [ * * * ] for HIV Indication. As of the Effective Date, Appendix
A sets forth Licensee’s Development Plan for compounds [ * * * ] and [ * * * ] for the
HIV Indication. Subject to the extension provisions of paragraph 6.3 below, for at
least one of either [ * * * ] or [ * * * ], Licensee shall initiate a [ * * * ] within
[ * * * ] of the Effective Date, a [ * * * ] within [ * * * ] of the Effective

10

 

	 	 	 	Date, and a [ * * * ] within [ * * * ] of the Effective Date.
	 
	 	(b).	 	HIV Indication Other Than [ * * * ] and [ * * * ]. Within [ * * * ]after
submitting an Investigational New Drug application (“IND”) to the U.S. Food and Drug
Administration (or a like application to a like agency in any other country) for a HIV
Indication Licensed Product other than [ * * * ] or [ * * * ], Licensee shall provide
to UGARF a Development Plan setting forth Licensee’s planned development efforts for
such Licensed Product. Subject to the extension provisions of paragraph 6.3 below,
Licensee shall initiate a [ * * * ] for the Licensed Product within [ * * * ] of the
date of such IND, a [ * * * ] within [ * * * ] of the date of such IND, and a [ * * * ]
within [ * * * ] of the date of such IND. The Development Plan shall be incorporated
into Appendix A and made part of this Agreement. Any prior Development Plan for
compounds that are no longer being pursued by Licensee shall be deleted from Appendix
A.
	 
	 	(c).	 	HCV Indication. Subject to the extension provisions of paragraph 6.3 below,
Licensee shall initiate a [ * * * ] within [ * * * ] of the Effective Date, [ * * * ]
within [ * * * ] of the Effective Date, and [ * * * ] within [ * * * ] of the Effective
Date for a HCV Indication Licensed Product. Within [ * * * ] after submitting an IND
to the U.S. Food and Drug Administration (or a like application to a like agency in any
other country) for a HCV Indication Licensed Product, Licensee shall provide to UGARF a
Development Plan setting forth Licensee’s planned development efforts for such Licensed
Product. The Development Plan shall be incorporated into Appendix A and made part of
this Agreement. Any prior Development Plan for a HCV Indication that is no longer
being pursued by Licensee shall be deleted from Appendix A.
	 
	 	(d).	 	Indications Other Than HIV and HCV. During the term of this Agreement,
Licensee may initiate development of one or more Licensed Products for an Indication
other than HIV or HCV (“Other Indication”). If so, within [ * * * ] after submitting
an IND to the U.S. Food and Drug Administration (or a like application to a like agency
in any other country) for an Other Indication Licensed Product, Licensee shall provide
to UGARF a Development Plan setting forth Licensee’s planned development efforts for
such Licensed Product. Subject to the extension provisions of paragraph 6.3, for each
Other Indication Licensed Product for which Licensee submits a Development Plan,
Licensee shall initiate a [ * * * ] within [ * * * ] of the date of such Development
Plan, a [ * * * ] within [ * * * ] of the date of such Development Plan, and a [ * * *
] within [ * * * ] of the date of such Development Plan. Any Other Indication for
which Licensee has not submitted a Licensed Product Development Plan within [ * * * ]
of the Effective Date shall automatically be excluded from the Field of this License
Agreement.

	6.3	 	Diligence Dates and Extensions. No later than 30 days after the due date for a development
diligence milestone event listed in paragraph 6.2, Licensee may purchase an extension of time
to achieve the milestone at the rate of [ * * * ] per Indication, for up to a maximum of [ * *
* ] extension years per Indication, which extension years need not be

11

 

	 	 	exercised immediately following one another. Each such extension will only become effective
upon Licensee’s payment to UGARF of the [ * * * ] extension fee. If Licensee elects not to
purchase an extension or one is not available, then: (i) in the case of 6.2(a) the rights
to [ * * * ] and [ * * * ] shall revert to UGARF; (ii) in the case of 6.2(b) the rights to
the HIV Indication Other Than [ * * * ] and [ * * * ] shall automatically be excluded from
the Field of this License; and (iii) in the case of 6.2(c) the rights to the HCV Indication
shall automatically be excluded from the Field of this License; and (iv) in the case of
6.2(d) the rights to each given Other Indication shall revert to UGARF and automatically be
excluded from the Field of this License.
	 
	6.4	 	Sublicense Performance. Licensee shall incorporate, or shall cause to be incorporated, into
any Sublicense an obligation to use commercially reasonable efforts (per customary terms and
conditions for sublicenses of that type) to bring a Licensed Product to market. A
Sublicensee’s performance of any obligations under this Agreement will be deemed performance
by Licensee.

ARTICLE 7. PATENT PROSECUTION AND MAINTENANCE

	7.1.	 	Patent Prosecution and Maintenance. UGARF shall be primarily responsible for prosecuting and
maintaining the Licensed Patents using patent counsel reasonably acceptable to both Parties.
As of the Effective Date, Henry D. Coleman is acceptable patent counsel to both Parties.
UGARF shall use reasonable efforts to assure that the inventors on the Licensed Patents meet
their obligations of disclosure to the U.S. Patent Office. The Parties shall enter into a
joint representation agreement so that both may communicate freely with patent counsel without
waiving the work product or attorney client privilege. UGARF shall promptly provide Licensee
with copies of all filings and correspondence pertaining to patent prosecution and maintenance
activities so as to give Licensee reasonable opportunities to advise and cooperate with UGARF
and review and comment on such patent applications and prosecution documents. UGARF shall
consult with Licensee as to the preparation, filing, prosecution, and maintenance of all
Licensed Patents reasonably prior to any deadline or action with the United States Patent &
Trademark Office or any foreign patent office. Licensee and UGARF agree to cooperate with
each other during the patent application and prosecution process. Licensee shall notify UGARF
in writing of the countries in which Licensee wishes patent applications to be filed,
including but not limited to national phase filings and registrations in countries from
regional filings. UGARF shall file such additional applications. UGARF may, at its own
expense, file patent applications in those countries in which Licensee elects not to file.
Applications filed in non-elected countries will be excluded from the Licensed Patents; and
the expenses therefore shall not be reimbursed by Licensee. By ninety (90) days prior written
notice at any time during the term, Licensee may advise UGARF that it no longer will reimburse
the Patent Expenses on one or more Licensed Patents in a particular country. Expenses
incurred by UGARF ninety (90) days or more after Licensee’s written notice shall not be
reimbursed by Licensee. UGARF may elect to continue prosecution and maintenance at its own
expense or permit Licensed Patents in such countries to be abandoned or lapse. If UGARF
elects to continue, Licensed Patents in such countries shall be removed from Licensed Patents.

12

 

	7.2.	 	Interferences. UGARF will give Licensee prompt written notice upon the declaration of any
interference involving the Licensed Patents. The Parties shall cooperate in the interference
proceeding using counsel acceptable to both Parties unless there is a Sublicense, in which
case the counsel shall be chosen by the Sublicensee. In the absence of a Sublicense, fees and
costs incurred in connection with the interference shall be deemed to be Patent Expenses and
shall be reimbursed as provided herein. Licensee may terminate its obligation to reimburse
for interference expenses upon ninety (90) days written notice, and the claims or patent at
issue shall be removed from the Licensed Patents in the geographic territory governed by the
interference proceeding.
	 
	7.3.	 	Patent Extension. Upon Licensee’s request and at Licensee’s pro rata expense (as determined
by the ratio of 1 to the number of other licensees (excluding Sublicensees) to the applicable
Licensed Patent), UGARF shall apply to the patent office of a given country to have the normal
term of any Licensed Patent extended or restored under a country’s procedure for extending a
patent term where such extension relates to duration of patent prosecution of such patent
application. Licensee shall assist UGARF in its efforts to obtain such extension. If
extended, Licensee shall be obligated to make all payments due under this Agreement through
the end of the extended patent term. If after written notice Licensee affirmatively elects
not to extend, UGARF may at its own expense obtain such extension, and the license to the
non-elected extended Licensed Patent under this Agreement will expire upon expiration of the
natural patent term. No other type of extension of the term of patent rights or exclusive
marketing rights shall be sought by UGARF or any licensee of UGARF except with the prior
written consent of Licensee, which consent shall not be unreasonably withheld.

ARTICLE 8. REPRESENTATIONS, WARRANTIES, DISCLAIMER,

LIMITATION OF LIABILITY, INDEMNIFICATION, AND INSURANCE

	8.1.	 	UGARF Representations. Licensee relies on the following representations of UGARF in entering
into this Agreement. UGARF represents that as of the Effective Date:

	 	(a).	 	all of the patent applications listed in Appendix B are owned by UGARF;
	 
	 	(b).	 	UGARF has not granted any rights in claimed subject matter of the Licensed
Patents in the Field to a third party, other than the rights reserved in the UGARF,
transferable to UGA, set out in paragraph 2.2(a), and the rights in the U.S. government
set out in paragraph 2.2(b);
	 
	 	(c).	 	other than those listed in Appendix B, UGARF does not own or has not
in-licensed under any patents or applications relating to the use of uracil and
pyridinone nucleobase scaffolds in compounds;
	 
	 	(d).	 	to the best of UGARF’s knowledge, the issued patents or allowed claims in
Appendix B hereto are valid and enforceable, and UGARF is not aware of any information
that would render such patents invalid or unenforceable. UGARF

13

 

	 	 	 	further represents that it has not received any notice that any issued patent or
allowed claim in the Licensed Patents is invalid or unenforceable;
	 
	 	(e).	 	UGARF has not received notice that a product or process of a third party is
alleged to infringe any issued patent or allowed claim in the Licensed Patents, and
UGARF has given no such notice to any third party;
	 
	 	(f).	 	with respect to the Licensed Patents, UGARF has complied with all disclosure,
reporting, election and other applicable provisions of the Bayh-Dole Act (35 U.S.C.
200, et seq.);
	 
	 	(g).	 	all test results relating to the subject matter disclosed in the Licensed
Patents, as well as any and all other data and information at UGA relating to the
subject matter disclosed in the Licensed Patents, if requested by Licensee, has been
made available to Licensee, except for the names of any third party proprietary
compound(s), which name(s) were redacted from test results or other data or
information, and Licensee agrees that UGARF need not provide such compound name(s) to
Licensee; and
	 
	 	(h).	 	UGARF is compliant with all of its own policies, and with Georgia law, material
to this Agreement; and
	 
	 	(i).	 	after reasonable inquiry with Dr. Nair, UGARF is not aware of any test results
or data that has not been provided or disclosed to Licensee that would reasonably be
expected to have a material adverse impact on Licensee’s evaluation or the development
of the inventions disclosed in the Licensed Patents.

	8.2.	 	UGARF Warranties. UGARF warrants that during the term of this Agreement:

	 	(a).	 	UGARF will not assign any of its rights to any of the Licensed Patents except
pursuant to paragraph 13.1 below;
	 
	 	(b).	 	UGARF will not grant any rights in Licensed Patents in the Field and in the
Territory to a third party, and UGARF will not transfer direct or indirect ownership of
the rights to the Licensed Patents that are licensed to Licensee to any third person or
entity;
	 
	 	(c).	 	UGARF will promptly notify Licensee in writing if it receives any notice that
any issued patent or allowed claim in Licensed Patents is invalid or unenforceable;
	 
	 	(d).	 	UGARF will promptly notify Licensee in writing if it receives any written
notice wherein a product or process of a third party is alleged to infringe any issued
patent or allowed claim in the Licensed Patents; and

14

 

	 	(e).	 	with respect to the Licensed Patents, UGARF will comply with all disclosure,
reporting, election and other applicable provisions of the Bayh-Dole Act (35 U.S.C. 200
et seq.).

	8.3.	 	Mutual Representations. The Parties each rely on the following representations in entering
into this Agreement. Each Party represents that as of the Effective Date:

	 	(a).	 	it has the right, power and authority to enter into this Agreement and to
perform its obligations hereunder;
	 
	 	(b).	 	it has taken all necessary corporate action on its part to authorize the
execution and delivery of this Agreement and the performance of its obligations
hereunder;
	 
	 	(c).	 	it has obtained all necessary consents, approvals, and authorizations of all
governmental authorities and other entities required in connection with entering into
this Agreement, except for those the failure of which to obtain would not have a
material adverse effect; and
	 
	 	(d).	 	the execution and delivery of this Agreement, including the grant of licenses
or Sublicenses hereunder, and the performance of such Party’s obligations hereunder do
not conflict with or violate or constitute a default of any requirement of applicable
laws or regulations or with any material contractual obligation of such Party.

	8.4.	 	Mutual Warranties. Each Party warrants that during the term of this Agreement:

	 	(a).	 	it will take all necessary corporate action on its part to authorize the
performance of its obligations hereunder; and
	 
	 	(b).	 	performance under this Agreement, including the grant of Sublicenses hereunder,
and the performance of each Party’s obligations hereunder will not conflict with or
violate or constitute a default of any requirement of applicable laws or regulations or
with any material contractual obligation of such Party.

	8.5.	 	Licensee Warranties. Licensee warrants that it will use commercially reasonable efforts to
obtain all necessary consents, approvals, and authorizations of all governmental authorities
and other entities (other than FDA and other comparable product approvals and product pricing
approvals) required in connection with performance of its obligations under this Agreement,
except for those the failure of which to obtain would not have a material adverse effect.
	 
	8.6.	 	Disclaimer of Warranties. EXCEPT AS SET FORTH IN PARAGRAPHS 8.1 THROUGH 8.5: (1) UGARF
DISCLAIMS ALL REPRESENTATIONS AND WARRANTIES, EXPRESS OR IMPLIED, RELATING IN ANY WAY TO THE
LICENSED PATENT RIGHTS OR LICENSED PRODUCTS, INCLUDING BUT NOT LIMITED TO, THE IMPLIED
WARRANTIES OF MERCHANTABILITY AND

15

 

	 	 	FITNESS FOR A PARTICULAR PURPOSE; AND (2) LICENSEE AND ITS SUBLICENSEES ASSUME THE ENTIRE
RISK AND RESPONSIBILITY FOR THE SAFETY, EFFICACY, PERFORMANCE, DESIGN, MARKETABILITY, TITLE,
AND QUALITY OF ALL LICENSED PATENTS AND LICENSED PRODUCTS. NOTHING CONTAINED IN THIS
AGREEMENT SHALL BE CONSTRUED AS EITHER A WARRANTY OR REPRESENTATION BY UGARF AS TO THE
VALIDITY OR SCOPE OF THE LICENSED PATENTS.
	 
	8.7.	 	Limitation of Liability. UGARF assumes no liability with respect to infringement of any
patent or other intellectual property right of third parties due to the activities of Licensee
or Sublicensees under this Agreement (except with respect to any breach of this Agreement by
UGARF). In no event will UGARF, the Board of Regents of the University System of Georgia,
UGA, or their regents, trustees, directors, officers, faculty, students, employees,
consultants, and agents (collectively “UGARF Indemnitees”) be responsible or liable for any
direct, indirect, special, punitive, incidental, or consequential damages or lost profits to
Licensee or Sublicensees, or any other individual or entity arising from the acts or omissions
of Licensee or Sublicensees regardless of legal theory (except with respect to any breach of
this Agreement by UGARF). The above limitations on liability apply even though UGARF, or any
of UGARF Indemnitees, may have been advised of the possibility of such damage. Licensee shall
not make any statements, representations, or warranties, or accept any liabilities or
responsibilities whatsoever, with regard to UGARF or UGARF Indemnitees that are inconsistent
with any disclaimer or limitation included in this Agreement.
	 
	8.8.	 	Indemnification. Except with respect to any breach of this Agreement by UGARF: none of
UGARF or UGARF Indemnitees shall have any liability to Licensee or Sublicensees or any other
person or entity for or on account of (and Licensee agrees and covenants, and agrees to cause
each Sublicensee to agree and covenant, not to sue any UGARF Indemnitee in connection with)
any injury, loss, or damage of any kind incurred by Licensee or Sublicensees or any other
person or entity, whether direct, indirect, special, punitive, incidental, consequential or
otherwise arising under any legal theory (and further excluding without limitation any
existing or anticipated profits or opportunities for profits lost by Licensee or
Sublicensees), directly arising out of or in connection with or resulting from (i) any acts or
omissions of Licensee or a Sublicensee relating to this Agreement, Licensee’s or a
Sublicensee’s use of the rights granted under the Licensed Patents, Licensee’s or a
Sublicensee’s Licensed Products, or any of Licensee’s or Sublicensees’ activities undertaken
hereunder; (ii) the production, use, or sale of the Licensed Products by Licensee or a
Sublicensee, or (iii) any advertising or other promotional activities of Licensee or a
Sublicensee with respect to either (i) or (ii). Licensee shall indemnify and hold each UGARF
Indemnitee harmless against all claims, demands, losses, damages or penalties (including but
not limited to reasonable attorney’s fees and expenses at the pretrial, trial or appellate
level) to the extent they are made against any UGARF Indemnitee with respect to items (i)
through (iii) above, whether or not such claims are groundless or without merit or basis
(except with respect to any breach of this Agreement by UGARF). Licensee understands and
agrees that its

16

 

	 	 	indemnification of any UGARF Indemnitee under this Agreement shall include indemnification
for attorney’s fees and expenses.
	 
	8.9.	 	Indemnification Procedure. As a condition to the indemnification under this Agreement, a
UGARF Indemnitee that intends to claim indemnification under this Article 8 shall promptly
notify Licensee and Sublicensees, as applicable (such indemnifying entity, the “Indemnitor”)
of any liability or action in respect of which the UGARF Indemnitee intends to claim such
indemnification, and the Indemnitor shall have the right to participate in, and, to the extent
the Indemnitor so desires, jointly with any other Indemnitor similarly noticed, to assume the
defense thereof with counsel selected by the Indemnitor; provided, however, that a UGARF
Indemnitee shall have the right to retain its own counsel, with the fees and expenses to be
paid by such UGARF Indemnitee. The indemnity obligations under this Article 8 shall not apply
to amounts paid in settlement of any loss, claim, damage, liability, or action if such
settlement is effected without the consent of the Indemnitor, which consent shall not be
unreasonably withheld. The failure to deliver notice to the Indemnitor within a reasonable
time after the commencement of any such action, to the extent such failure substantially
impairs Indemnitor’s ability to defend such action, shall relieve such Indemnitor of any such
liability to the UGARF Indemnitee with regard to such action under this Article 8. The UGARF
Indemnitee, its employees, and agents, shall cooperate fully with the Indemnitor and its legal
representatives in the investigation of any action, claim, or liability covered by this
indemnification.
	 
	8.10.	 	Insurance. Licensee shall obtain and carry in full effect, and shall cause Sublicensees to
obtain and carry in full effect, insurance with coverage and limits, the nature and extent of
which shall be commensurate with those of similar companies in Licensee’s industry but not
less than set out in Appendix H. Such insurance will be written by an insurance company
having a rating reasonably acceptable to UGARF, will name UGARF as an additional insured, and
shall require thirty (30) days written notice to UGARF prior to cancellation, endorsement or
other policy change. Within thirty (30) days of a request by UGARF, Licensee shall provide
UGARF with appropriate certificates of insurance satisfying the obligations of Licensee
hereunder.

ARTICLE 9. INFRINGEMENT

	9.1.	 	Notice. The Parties shall report to each other in writing all suspected infringement of the
Licensed Patents. Should Licensee desire to negotiate with or file suit against a potential
infringer, it shall first provide to UGARF a written analysis setting out in pertinent detail
the grounds for infringement. Upon such notice, UGARF shall permit Licensee to take action
under paragraph 9.2.
	 
	9.2.	 	Enforcement. Subject to paragraph 9.1, Licensee shall have exclusive authority to negotiate,
license, file suit, or otherwise settle the matter without limitation. Licensee shall employ
counsel reasonably satisfactory to UGARF; Licensee shall enter into a joint representation
agreement with UGARF so that both may communicate freely with litigation counsel without
waiving the work product or attorney client privilege. To the extent doing so will (a) not
waive the work product or attorney client privilege and (b)

17

 

	 	 	not violate any protective order imposed in the case, Licensee shall inform UGARF of all
material developments, and provide UGARF at UGARF’s request and expense with (i) copies of
all pleadings and discovery materials, and (ii) any other documents and information relevant
to the case. Licensee shall be responsible for its expenses. UGARF shall reasonably
cooperate and execute any documents reasonably required by Licensee, all at Licensee’s
expense. Licensee shall not oppose joinder of UGARF as a party for any reason, and UGARF
consents to be joined as a party, if necessary for Licensee to proceed with a suit. UGARF
may be represented by its own counsel in such proceedings at its own expense. Prosecution,
settlement, or abandonment of any proceeding shall be at Licensee’s reasonable discretion,
provided that Licensee must not grant any infringer any rights to the Licensed Patents other
than by sublicense pursuant to paragraph 2.3 of this Agreement. Any funds collected by
Licensee will be paid as follows: (a) to Licensee to reimburse its documented and
reasonable out of pocket third party costs and expenses incurred in such action; (b) to
UGARF for its documented and reasonable out of pocket third party costs and expenses
incurred in assisting Licensee; and (c) the remainder, if any, shall be treated as [ * * *
]. Upon prior written notice to UGARF, Licensee may delegate any of its rights and duties
under this Article 9 to a Sublicensee, which Sublicensee shall be bound to all such rights
and duties.
	 
	9.3.	 	UGARF Enforcement. Upon Licensee’s prior approval UGARF shall have the authority to
negotiate, license, file suit, or otherwise settle the matter without limitation. UGARF shall
employ counsel reasonably satisfactory to Licensee; UGARF shall enter into a joint
representation agreement with Licensee so that both may communicate freely with litigation
counsel without waiving the work product or attorney client privilege. To the extent doing so
will (a) not waive the work product or attorney client privilege and (b) not violate any
protective order imposed in the case, UGARF shall inform Licensee of all material
developments, and provide Licensee at Licensee’s request and expense with (i) copies of all
pleadings and discovery materials, and (ii) any other documents and information relevant to
the case. UGARF shall be responsible for its expenses. Licensee shall reasonably cooperate
and execute any documents reasonably required by UGARF, all at UGARF’s expense. Licensee
consents to be joined as a party, if necessary in order for UGARF to proceed with a suit.
Licensee may be represented by its own counsel in such proceedings at its own expense.
Prosecution, settlement, or abandonment of any proceeding shall be at UGARF’s reasonable
discretion, provided that UGARF must not grant any infringer any rights to the Licensed
Patents in the Field without Licensee’s prior consent. Any funds collected by UGARF will be
paid as follows: (a) to UGARF to reimburse its documented and reasonable out of pocket third
party costs and expenses incurred in such action; (b) to Licensee for its documented and
reasonable out of pocket third party costs and expenses incurred in assisting UGARF; and (c)
the remainder, if any, shall be [ * * * ]. Upon prior written notice to Licensee, UGARF may
delegate any of its rights and duties under this Article 9 to a licensee outside the Field,
which licensee shall be bound to all such rights and duties.
	 
	9.4.	 	Abandonment. The rights of Licensee include the right to abandon a suit or refrain from
suit. Licensee’s abandonment or refraining from suit does not give UGARF the right to proceed
except that, Licensee shall provide UGARF thirty (30) days prior written notice of Licensee’s
decision to abandon suit and then UGARF may proceed with the suit in the event that Licensee
abandons the suit (in the trial court or on appeal) at any time after
a judicial determination that at least one claim of a Licensed Patent is invalid or
unenforceable.

18

 

ARTICLE 10. CONFIDENTIALITY

	10.1.	 	Confidential Information. Pursuant to and for the purpose of complying with its obligations
under this Agreement (“the Purpose”), either Party may disclose to the other Party
confidential and proprietary information, technical data, trade secrets or know-how, including
but not limited to, research, product plans, products, markets, developments, inventions,
processes, formulas, technology, designs, drawings, engineering, marketing, distribution,
sales methods and systems, and sales and profit figures (the “Confidential Information”).
	 
	10.2.	 	General Defined Terms. The terms “Recipient” and “Provider” refer to Licensee and the UGARF
in their capacity either as the recipient or the provider of Confidential Information under
this Agreement.
	 
	10.3.	 	Manner of Disclosure. The Provider may disclose the Confidential Information to the
Recipient, in writing, electronically, orally or by drawings or inspection of documents or
other tangible property for the Purpose.
	 
	10.4.	 	Non-Disclosure Obligation. In its capacity as Recipient, each Party agrees that for a
period of five (5) years from the date of disclosures received, that such Party will treat the
Confidential Information with reasonable care to avoid disclosure of the Confidential
Information to any person (natural or otherwise). A Recipient may disclose such Confidential
Information to (i) others within its organization pursuant to paragraph 10.7 and (ii) to third
parties; provided they enter into a confidentiality agreement no less restrictive than that of
this Article 10. A Recipient shall be generally liable for unauthorized disclosure or failure
to exercise such reasonable care, but a Recipient will not be so restricted with respect to
any Confidential Information which:

	 	(a).	 	is in the public domain, not through a breach of this Agreement, at the time of
disclosure;
	 
	 	(b).	 	after disclosure, becomes part of the public domain, except through breach of
this Agreement by the Recipient;
	 
	 	(c).	 	the Recipient can establish by documentary evidence was legally in its
possession at the time of disclosure by the Provider;
	 
	 	(d).	 	comes to the Recipient from third parties who are not under an obligation to
the Provider to maintain the confidentiality of that Confidential Information;
	 
	 	(e).	 	is independently developed by employees of the Recipient without use of the
Confidential Information, as shown by documentary evidence;
	 
	 	(f).	 	is approved for release by written authorization of the Provider, or:

19

 

	 	(g).	 	subject to paragraph 10.5, disclosure is required by applicable law or judicial
or administrative order.

	10.5.	 	Required Disclosures. If the Recipient is required by applicable law or administrative or
judicial order to disclose Confidential Information, the Recipient shall give the Provider
prompt notice of such fact so that the Provider may attempt to obtain a protective order or
other appropriate remedy with respect to any such disclosure. The Recipient shall fully
cooperate with the Provider in connection with the Provider’s efforts to obtain any such order
or other remedy. If any such order or other remedy does not fully preclude disclosure, the
Recipient will make such disclosure only to the extent that such disclosure is legally
required.
	 
	10.6.	 	Limited Use. Acceptance of the Confidential Information by the Recipient gives the
Recipient the right and obligation to use the Confidential Information only for the Purpose in
accordance with this Agreement and does not give the Recipient any sort of license to, use of,
or any other rights in the Confidential Information.
	 
	10.7.	 	Internal Dissemination. Recipient’s internal dissemination of the Provider’s Confidential
Information is limited to those employees, officers, directors, and agents (or, where UGARF is
the Recipient, those employees, officers, directors, and agents of UGARF and UGA) whose duties
justify the need to know such Confidential Information. The Recipient will make all necessary
efforts to require such officers, directors, employees and agents, who have been given access
to and who shall receive disclosures of the Confidential Information, to maintain the
strictest secrecy under the terms and conditions of this Agreement.
	 
	10.8.	 	Unauthorized Use. If any third party makes any unauthorized use or disclosure of the
Confidential Information under this Agreement, the Recipient shall notify the Provider and
cooperate in taking reasonable steps to protect the Confidential Information from further
unauthorized use or disclosure.
	 
	10.9.	 	Return of Information. Upon termination or expiration of this Agreement and upon request by
the Provider, the Recipient will promptly return to the Provider all Confidential Information
received from the Provider which is in tangible form or provide a letter certifying as to its
destruction.

ARTICLE 11. TERM AND TERMINATION

	11.1.	 	Term. Unless sooner terminated as otherwise provided herein, this Agreement begins on the
Effective Date and continues until expiration of the last to expire of the Licensed Patents or
patent extension as provided by paragraph 7.3.
	 
	11.2.	 	UGARF Right to Terminate. UGARF may, without prejudice to any of its other rights,
terminate this Agreement if Licensee:

	 	(a).	 	fails to pay any undisputed amount when due under this Agreement, and fails to
make such payment after ninety (90) days written notice by UGARF;
	 
	 	(b).	 	fails to deliver any report when due under this Agreement, and Licensee fails
to make such report after ninety (90) days written notice from UGARF; or

20

 

	 	(c).	 	materially breaches this Agreement other than by (a)-(b) above, and fails to
cure such breach or default within ninety (90) days after receipt of written notice by
UGARF.

	11.3.	 	Licensee Right to Terminate. Licensee may, without prejudice to any of its other rights,
terminate this Agreement:

	 	(a).	 	at any time with or without cause effective on ninety (90) days written notice
of termination; or
	 
	 	(b).	 	if UGARF materially breaches this Agreement and fails to cure such breach or
default within ninety (90) days after receipt of written notice by Licensee.

	11.4.	 	Effect of Termination. If this Agreement terminates for any reason under paragraphs 11.2 or
11.3, on the effective date of termination Licensee shall immediately cease practicing the
inventions claimed in Valid Claims of Licensed Patents and making, having made and selling the
Licensed Products, and shall return to UGARF, or deliver or destroy as UGARF directs, all
Confidential Information in its possession; provided, however, that (a) Licensee may continue
to sell in the ordinary course of business for a period of one (1) year reasonable quantities
of Licensed Products that are in Licensee’s normal inventory at the date of termination if (i)
all monetary obligations of Licensee to UGARF have been satisfied and (ii) royalties on such
sales, and any other payments, are paid to UGARF in the amounts and in the manner provided in
this Agreement.
	 
	11.5.	 	Survival. Notwithstanding termination or expiration of this Agreement for any reason, the
following provisions shall survive:

	 	(a).	 	Licensee’s payment obligations that are accrued and remaining unpaid or
unperformed prior to such termination;
	 
	 	(b).	 	Articles 4, 5, 9, 10, 12, and 13, and paragraphs 8.6, 8.7, 8.8, 8.9, 11.4, and
11.5,; and
	 
	 	(c).	 	Any cause of action or claim of a Party, accrued or to accrue, because of any
breach or default of this Agreement by the other Party.

ARTICLE 12. MEDIATION

	12.1.	 	Except for the right of either Party to apply to a court of competent jurisdiction for a
temporary restraining order, preliminary injunction, or other equitable relief, any and all
claims, disputes or controversies arising under, out of, or in connection with this Agreement
(including patent validity, claim for theft of trade secrets, unauthorized disclosure of
confidential information, damages, restitution, rescission or reformation, or any combination
of such remedies) that the Parties are unable to resolve within sixty (60) days following
written notice of a dispute including an attempt to resolve the dispute, will be mediated
through non-binding mediation in good faith as follows: The Party raising such dispute shall
promptly provide notice to the other Party of its claim, dispute or controversy in a writing
that describes in reasonable detail the nature of the dispute (“Dispute Notice”). By not
later than twenty (20) business days after the recipient has received the Dispute Notice, each
Party shall have selected for itself a representative who

21

 

has the authority to bind such Party, and shall additionally have advised the other Party in
writing of the name and title of such representative. These representatives shall meet in
person and in good faith attempt to resolve the dispute within sixty days of the Dispute
Notice. If they fail to resolve it, then by not later than twenty (20) business day after
their meeting date, the Parties shall each notify the other of two acceptable mediators and
the representatives shall promptly select and agree upon one commonly acceptable mediator
for a mediation hearing. Within thirty days thereafter, the Parties shall enter into good
faith mediation and shall share the costs of mediation equally; provided, however, that each
Party shall pay its own attorneys’ fees. If the representatives of the Parties do not
resolve the dispute within thirty (30) business days after the mediation hearing, the
Parties shall be deemed to have satisfied this requirement for mediation. If thereafter
either Party desires arbitration of the dispute then such Party shall propose and the other
Party shall in good faith consider the proposal.

ARTICLE 13. MISCELLANEOUS

	13.1.	 	Assignment. This Agreement, and the rights and obligations hereunder, shall not be assigned
by either Party without the prior written consent of the other Party, such consent not to be
unreasonably withheld, except however that this Agreement or rights and obligations hereunder
may be assigned by Licensee without consent to the acquirer of substantially all of the assets
of Licensee to which the assigned rights and obligations pertain. No assignment requiring
consent will be effective unless the assignor has, no less than ten (10) days before the
effective date thereof, (i) delivered written notice of the transaction to the other Party;
and (ii) caused the successor entity to deliver to such other Party the form of a written
assignment and assumption by such successor of all of the assigned terms and conditions of
this Agreement, such assignment and assumption to be in form and substance satisfactory to
such other Party.
	 
	13.2.	 	Entire Agreement, Amendment and Waiver. This Agreement, including its Appendices, contains
the entire understanding of the Parties with respect to the subject matter of this Agreement
and supersedes any and all prior written or oral discussions, arrangements, courses of conduct
or agreements. This Agreement may be amended only by a written instrument executed by the
Parties. The waiver of an obligation hereunder shall not constitute a waiver of any other
obligation, and shall not constitute a permanent waiver of that obligation. Notwithstanding
that the SRA is attached hereto as Appendix J and incorporated herein by reference, it is a
separate and distinct agreement and deals with a subject matter separate and distinct from the
subject matter of this Agreement.

	13.3.	 	Force Majeure. No Party shall be considered in default or be liable for any delay in
performance or for any non-performance caused by circumstances beyond the reasonable control
of such Party, including but not limited to acts of God, explosion, fire, flood, accident,
strike or other labor disturbance, war (whether declared or not), terrorism, sabotage, order
or decree of any court or unforeseen or unanticipated action of any governmental authority, or
other causes, whether similar or dissimilar to those specified, that cannot reasonably be
anticipated or controlled by the Party who failed to perform.

22

 

	 	 	Performance is excused only for the duration of the force majeure event and a commercially
reasonable time thereafter.
	 
	13.4.	 	Notices. All notices required or desired to be given under this Agreement, and all payments
to be made to UGARF under this Agreement, shall be delivered to the Parties in the manner set
out herein and at the addresses set forth in Appendix I, unless otherwise set forth in this
Agreement. Notices may be given (i) by hand, or (ii) by certified mail return receipt
requested, or (iii) by commercial carrier. Such notices or payments are effective upon
receipt by an employee, agent, or representative of the receiving Party authorized to receive
notices or other communications sent or delivered in the manner set forth above.
	 
	13.5.	 	Severability. If any one or more of the provisions of this Agreement is held by any court
of competent jurisdiction to be invalid, illegal or unenforceable, such provision or
provisions shall be reformed to approximate as nearly as possible the intent of the Parties,
and the validity of the remaining provisions shall not be affected; provided that such
reformation does not depart materially from the intent of the Parties.
	 
	13.6.	 	Governing Law. This Agreement is governed and interpreted under the laws of the State of
Georgia applicable to contracts made entirely within Georgia by Georgia residents.
	 
	13.7.	 	Damages. The Parties each hereby waive any right to receive punitive, consequential,
special or indirect damages relating in any way to this Agreement.
	 
	13.8.	 	Marking. Licensee shall place in a conspicuous location on any Licensed Product (or its
packaging where appropriate) made or sold under this Agreement a patent notice in accordance
with applicable laws.
	 
	13.9.	 	Manufacture. Licensee shall be bound by and comply with any applicable laws, regulations or
restrictions regarding the location of manufacture of Licensed Product imposed by the U.S.
government upon UGARF, Licensee or a Sublicensee as a result of any United States government
funding of the research from which any inventions claimed in any Licensed Patent were
conceived or reduced to practice. Upon request, UGARF will cooperate with Licensee in
compliance efforts.
	 
	13.10.	 	Export Controls. Licensee acknowledges that Licensed Products may be subject to U.S. laws
and regulations controlling the export of technical data, biological materials, chemical
compositions, computer software, laboratory prototypes and other commodities (“Technical
Data”). Licensee’s transfer of Technical Data may require a license from an agency of the
U.S. government or written assurances by Licensee that Licensee shall not export Technical
Data to certain foreign countries without prior approval of the U.S. government. UGARF
neither represents that an export license will not be required nor that, if required, such
export license shall issue.
	 
	13.11.	 	Implementation. Each Party shall, at the request of the other Party, execute any document
reasonably necessary to implement the provisions of this Agreement.
	 
	13.12.	 	Remedies. Due to the proprietary nature of the subject matter, the Parties agree that their
respective rights and obligations under this Agreement may be enforced by injunction, specific
performance, or other equitable relief, without prejudice to any other rights and remedies the
Parties may have.

23

 

	13.13.	 	Jury Trial Waiver. Each Party acknowledges the additional time and expense required for a
jury trial versus a bench trial for disputes relating to patent infringement or validity. The
Parties hereby waive their right to trial by jury in any action relating to the infringement
or validity of any claim in the Licensed Patents.
	 
	13.14.	 	Relationship of Parties. The Parties are independent contractors. There is no relationship
of principal to agent, master to servant, employer to employee, or franchiser to franchisee
between the Parties. Neither Party has the authority to bind the other or incur any
obligation on its behalf.
	 
	13.15.	 	Agreement Conflicts. In the event of a conflict between this Agreement and an Appendix
attached hereto, the terms of this Agreement shall control.
	 
	13.16.	 	Advertising. Each Party shall not use (and shall prohibit its agents, Affiliates, licensees
and sublicensees from using) the names and marks of the other Party or any of its agents in
connection with any commercial activity under this Agreement without prior written consent.
Notwithstanding the foregoing, Licensee may use the name of UGARF in a non-misleading fashion
in (i) business plans, offering memoranda and other similar documents for the purpose of
raising financing for the operations of Licensee as related to the Licensed Products; (ii) as
required in sublicenses to vest UGARF’s interests as a third party beneficiary, and (iii) as
required in any securities reports required to be filed with the Securities and Exchange
Commission.

IN WITNESS WHEREOF, the Parties hereto have caused this License Agreement to be executed by their
authorized officers or representatives on the date indicated below.

	 	 	 	 	 	 	 	 	 	 	 
	University of Georgia Research
Foundation, Inc.	 	Inhibitex, Inc.	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	 	 	 	 	By:	 	 	 	 
	 

	 	 
	 	 	 	 	 	 	 	 
	Name:

	 	Dr. David Lee
	 	 	 	Name (print):	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	Title:

	 	Executive Vice President
	 	 	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	Date:

	 	 	 	 	 	Date:	 	 	 	 
	 

	 	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Read and understood by:	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	University of Georgia	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	Name:

	 	Dr. David Lee	 	 	 	 	 	 	 	 
	Title:

	 	Vice President for Research	 	 	 	 	 	 	 	 
	Date:
	 	 	 	 	 	 	 	 	 	 
	 

	 	 

	 	 	 	 	 	 	 	 

24

 

APPENDIX A

LICENSEE’S TECHNOLOGY DEVELOPMENT PLAN

[ * * * ]

25

 

APPENDIX B

LICENSED PATENTS

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	U.S.	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	UGARF	 	 	 	Application	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Case	 	 	 	Serial	 	Filing	 	 	 	Pub.	 	 	 	International	 	 
	 	 	Number	 	Title	 	Number	 	Date	 	Pub. Number	 	Date	 	PCT Application	 	Filing Date	 	Status/Comments
	(1)

	 	[ * * * ]
	 	[ * * * ]
	 	[ * * * ]
	 	[ * * * ]
	 	[ * * * ]
	 	[ * * * ]
	 	[ * * * ]
	 	[ * * * ]
	 	[ * * * ]
	(2)

	 	[ * * * ]
	 	 	 	[ * * * ]
	 	[ * * * ]
	 	 	 	 	 	[ * * * ]
	 	[ * * * ]
	 	[ * * * ]
	(3)

	 	[ * * * ]
	 	 	 	 	 	[ * * * ]
	 	 	 	 	 	 	 	 	 	[ * * * ]
	(4)

	 	[ * * * ]
	 	[ * * * ]
	 	[ * * * ]
	 	[ * * * ]
	 	[ * * * ]
	 	[ * * * ]
	 	[ * * * ]
	 	 	 	[ * * * ]
	(5)

	 	[ * * * ]
	 	[ * * * ]
	 	[ * * * ]
	 	[ * * * ]
	 	 	 	 	 	 	 	[ * * * ]
	 	[ * * * ]
	(6)

	 	[ * * * ]
	 	 	 	[ * * * ]
	 	[ * * * ]	 	 	 	 	 	 	 	 	 	 
	(7)

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

26

 

[ * * * ]

[ * * * ]

27

 

APPENDIX C

ANNUAL MINIMUM ROYALTY PAYMENTS (Paragraph 3.5)

	1.	 	HIV Indication Licensed Products Licensee shall make written notice to UGARF of the date of
Licensee’s first arm’s length commercial sale for consideration of each Separate and Distinct
(as defined below) Licensed Product for the HIV Indication (“HIV Indication Licensed Product”)
within [ * * * ] of such sale. The Annual Minimum Royalty Payments at paragraph 3.5,
identified in dollars in the table below, are due beginning in the [ * * * ] following the
first sale of an HIV Indication Licensed Product [ * * * ] and continuing for [ * * * ], and
vary depending upon the total number of HIV Indication Products on the market at the end of
each calendar year, as set out in the table below. The Annual Minimum Royalty Payments are
only payable to the extent that the earned royalty actually paid upon the sale of such HIV
Indication Licensed Products for a given calendar year is less than the below-stated minimum
royalty payment; in which case Licensee shall pay to UGARF an amount equal to the applicable
minimum royalty payment less the earned royalty actually paid for such HIV Indication Licensed
Products. As used in Appendices C and F, and in paragraph 4.3, a “Separate and Distinct”
Licensed Product means a Licensed Product that differs from other Licensed Products in that it
is a different chemical entity, has new or different qualities, or is subject to separate
review and approval by the FDA or other relevant regulatory authority.

	 	 	 	 	 	 	 
	•

	 	• No. of HIV
Indication Products
on the market:
[ * * * ]

	 	• No. of HIV
Indication Products
on the market:
[ * * * ]

	 	• No of HIV
Products on the
market: [ * * *
]or [ * * * ]

	 
	 	 	 	 	 	 
	• [ * * * ]

	 	 • [ * * * ]

	 	• [ * * * ]

	 	• [ * * * ]

	2.	 	HCV Indication Licensed Products. Licensee shall make written notice to UGARF of the date of
Licensee’s first arm’s length commercial sale for consideration of each Separate and Distinct
(as defined at paragraph 1 above) Licensed Product for the HCV Indication (“HCV Indication
Licensed Product”) within [ * * * ] of such sale. The following Annual Minimum Royalty
Payments, identified in dollars in the table below, are due beginning in the [ * * * ]
following the first sale of an HCV Indication Licensed Product [ * * * ] continuing through [
* * * ], and vary depending upon the total number of HCV Indication Products on the market at
the end of each calendar year, as set out in the table below. The Annual Minimum Royalty
Payments are only payable to the extent that the earned royalty actually paid upon the sale of
such Licensed Products for a given calendar year is less than the below-stated minimum royalty
payment; in which case Licensee shall pay to UGARF an amount equal to the applicable minimum
royalty payment less the earned royalty actually paid for such HCV Indication Licensed
Products.

28

 

	 	 	 	 	 	 	 
	•

	 	• No. of HCV
Indication Products
on the market:
[ * * * ]

	 	• No. of HCV
Indication Products
on the market:
[ * * * ]

	 	 • No of HCV
Products on the
market: [ * * *
] or [ * * * ]

	 
	 	 	 	 	 	 
	• [ * * * ]

	 	• [ * * * ]
	 	• [ * * * ]
	 	• [ * * * ]

	3.	 	Other Indication Licensed Products. Licensee shall make written notice to UGARF of the date
of Licensee’s first arm’s length commercial sale for consideration of each Separate and
Distinct Licensed Product for any Indication other than HIV or HCV within [ * * * ] of such
sale. The following Annual Minimum Royalty Payments, identified in dollars in table below,
are due beginning in the [ * * * ] following the first sale of a Licensed Product for a new
Indication for which Licensed Product has not previously been sold [ * * * ] continuing for [
* * * ], and vary depending upon the number of Licensed Products for any Indication other than
HIV or HCV that are on the market at the end of year calendar year, as set out in the table
below. The Annual Minimum Royalty Payments are only payable to the extent that the earned
royalty actually paid upon the sale of such Licensed Products for such particular Indication
for a given calendar year is less than the below-stated minimum royalty payment; in which case
Licensee shall pay to UGARF an amount equal to the applicable minimum royalty payment less the
earned royalty actually paid for Licensed Products for each such separate Indication.

	 	 	 	 	 	 	 
	•

	 	• No. of
non-HIV/non-HCV
Indication Products
on the market:
[ * * * ]

	 	• No. of
non-HIV/non-HCV
Indication Products
on the market:
[ * * * ]

	 	• No of
non-HIV/non-HCV
Products on the
market: [ * * *
] or [ * * * ]

	 
	• [ * * * ]

	 	• [ * * * ]
	 	• [ * * * ]
	 	• [ * * * ]

29

 

APPENDIX D

ANNUAL LICENSE MAINTENANCE FEES (Paragraph 3.6)

     Licensee shall pay UGARF an Annual License Maintenance Fee of [ * * * ] no later than thirty
(30) days after each anniversary of the Effective Date provided, however, that Licensee’s
obligation to pay Annual License Maintenance Fees shall cease in the first full calendar year
following the first sale of a Licensed Product.

30

 

APPENDIX E

SUBLICENSE FEES (Paragraph 3.7)

	1.	 	Definitions. “Sublicense Payment” means a payment received by Licensee as direct
consideration specifically for the grant of a Sublicense of the Licensed Patents. For
purposes of paragraph 3.7 and this Appendix E, Sublicense Payments include, but are not
limited to, (a) Sublicense signing or upfront fees, (b) the portion of any premium (the excess
over the fair market value) paid by Sublicensee for debt or equity securities issued by
Licensee to a Sublicense to the extent such premium is (i) direct consideration for entering
into a Sublicense, and (ii) exceeds [ * * * ] of the fair market value of the debt or equity
securities issued by Licensee in direct connection with a Sublicense; (c) development or
commercial diligence milestone payments for development or commercialization of Licensed
Products, (d) annual license maintenance fees in excess of amounts payable to UGARF by
Licensee as set forth in Appendix D; (e) royalties received by Licensee from a Sublicensee;
(f) annual minimum royalty payments received by Licensee from a Sublicensee; or (g) similar
consideration that is milestone-based, development-based, or diligence-based.
	 
	 	 	Notwithstanding the foregoing, Sublicense Payment specifically excludes the following
payments received by Licensee from any Sublicensees: (a) reasonable funding or
reimbursement for research activities performed by Licensee on behalf of a Sublicensee after
the effective date of the respective Sublicense; (b) reasonable payments or reimbursements
for materials made for or transferred to a Sublicensee after the effective date of the
respective Sublicense; (c) reasonable payments or reimbursements for other expenses incurred
by Licensee on behalf of and for the benefit of a Sublicensee after the effective date of
the respective sublicense; (d) reimbursement for Licensee’s payment of Patent Expenses to
UGARF incurred before or after the effective date of the Sublicense; (e) reasonable payments
or reimbursements for the cost of clinical trials conducted by Licensee on behalf of
Sublicensee after the effective date of the Sublicense; (f) reasonable payments for the
transfer to a Sublicensee of know-how developed without input by UGARF or UGA, or if with
input from UGARF or UGA, then the pro rata portion of such payment attributable to know-how
developed without input by UGARF; and (g) consideration of any kind received by Licensee for
the transfer or grant from Licensee to a Sublicensee of rights, assets or value of any kind
other than rights, assets or value within the Licensed Patents under this Agreement.
	 
	 	 	As used herein, “completion” shall mean the date on which the last subject or patient in the
respective clinical trial has completed the requisite follow-up period and is off study, and
“initiation” shall mean the date on which the first subject or patient is enrolled in the
respective clinical trial.
	 
	2.	 	Sublicense Fees.

	 	(a).	 	If at any time before the completion of a [ * * * ] for a given Licensed
Product within a particular Indication, Licensee enters into a Sublicense for that
Licensed Product in that Indication, then at any time on or after the date of the
Sublicense,

31

 

	 	 	 	if Licensee receives from that Sublicensee any Sublicense Payments related to that
Licensed Product for that Indication, then Licensee shall pay to UGARF [ * * * ] of
such Sublicense Payments.

	 	(b).	 	If at any time after the completion of a [ * * * ] but before the completion of
a [ * * * ] for a given Licensed Product within a particular Indication, Licensee
enters into a Sublicense for that Licensed Product in that Indication, then at any time
on or after the date of the Sublicense, if Licensee receives from that Sublicensee any
Sublicense Payments related to that Licensed Product in that Indication, then Licensee
shall pay to UGARF [ * * * ] of such Sublicense Payments.
	 
	 	(c).	 	If, at any time after the completion of [ * * * ] for a given Licensed Product
within a particular Indication, Licensee enters into a Sublicense for that Licensed
product in that Indication, then at any time on or after the date of the Sublicense, if
Licensee receives from that Sublicensee any Sublicense Payments related to that
Licensed product for that Indication, then Licensee shall pay to UGARF [ * * * ] of
such Sublicense Payments.
	 
	 	(d).	 	If, at any time after completion of a [ * * * ] for a given Licensed Product
within a particular Indication, Licensee enters into a Sublicense for that Licensed
Product for that Indication, then at any time on or after the date of the Sublicensee
if Licensee receives from that Sublicensee any Sublicense Payments related to that
Licensed Product for that Indication, then Licensee shall pay to UGARF [ * * * ]of such
Sublicense Payments.

32

 

APPENDIX F

MILESTONE PAYMENTS (Paragraph 3.8)

	1.	 	HIV Indication Milestone Payments.

	 	(a).	 	First HIV Indication Licensed Product. The following one-time development
milestone payments only apply the first time each event occurs for the first Separate
and Distinct HIV Indication Licensed Product, as “Separate and Distinct” as defined in
Appendix D.

	 	 	 
	          • Development Milestone

	 	• Payment
	 
	 	 
	          • [ * * * ]

	 	• [ * * * ]

	 	(b).	 	Subsequent HIV Indication Licensed Products. Milestone payments for the second
and each subsequent Separate and Distinct HIV Indication Licensed Product will be the
same as those outlined in 1(a), provided however, that to the extent that a milestone
payment or payments were made for a prior Separate and Distinct HIV Indication Licensed
Product, such milestone payments that were already made will only again become payable
for the second and each subsequent Separate and Distinct HIV Indication Licensed
Product in the event that such Licensed Product achieves the last milestone that the
prior Separate and Distinct HIV Indication Licensed Product failed to achieve.

	2.	 	HCV Indication Milestone Payments.

	 	(a).	 	First HCV Indication Licensed Product. The following one-time development
milestone payments only apply the first time each event occurs for the first Separate
and Distinct HCV Indication Licensed Product.

	 	 	 
	          • Development Milestone

	 	• Payment
	 
	 	 
	          • [ * * * ]

	 	• [ * * * ]

	 	(b).	 	Subsequent HCV Indication Licensed Products. Milestone payments for the second
and each subsequent Separate and Distinct HCV Indication Licensed Product will be the
same as those outlined in 2(a), provided however, that to the extent that a milestone
payment or payments were made for a prior Separate and Distinct HCV Indication Licensed
Product, such payments that were already made will only again become payable for the
second and each subsequent Separate and Distinct HCV Indication Licensed Product in the
event that such Licensed Product achieves the last milestone that the prior Separate
and Distinct HCV Indication Licensed Product failed to achieve.

33

 

	3.	 	Other Indication Milestone Payments.

	 	(a).	 	First Other Indication Licensed Product. For any Indication other than HIV or
HCV (“Other Indication”), the following one-time development milestone payments only
apply the first time each event occurs for the first Separate and Distinct Licensed
Product:

	 	 	 
	          • Development Milestone

	 	• Payment
	 
	 	 
	          • [ * * * ]

	 	• [ * * * ]

	 	(b).	 	Subsequent Other Indication Licensed Products. Milestone payments for the
second and each subsequent Separate and Distinct Other Indication Licensed Product will
be the same as those outlined in 3(a), provided however, that to the extent that a
milestone payment or payments were made for a prior Separate and Distinct Other
Indication Licensed Product, such milestone payments that were already made will only
again become payable for the second and each subsequent Separate and Distinct Other
Indication Licensed Product in the event that such Licensed Product achieves the last
milestone that the prior Separate and Distinct Other Indication Licensed Product failed
to achieve.

	4.	 	For purposes of this Appendix F, successful completion of a clinical trial shall mean that
the clinical trial achieved or met its predefined primary endpoint or objectives, and/or the
results of the trial support advancing the respective Separate and Distinct Licensed Product
to the next stage of clinical development.

34

 

APPENDIX G

PAYMENT REPORTS

     Each Royalty Report due under this Agreement shall provide the following aggregate information
per quarter for all Licensed Products sold by Licensee or Sublicensees.

	1.	 	Sales report by country sufficient for UGARF to determine specific volume of sales and total
Net Sales in each country;
	 
	2.	 	Number of units of each Licensed Product sold by Licensee or by Sublicensees;
	 
	3.	 	Total dollar amount Subject to Royalty;
	 
	4.	 	Applicable Conversion Rate for Foreign Sales;
	 
	5.	 	Total dollars Converted to U.S. Dollars;
	 
	6.	 	Minimum Royalty Due, if applicable;
	 
	7.	 	Total Royalty Due, if applicable;
	 
	8.	 	Total Sublicense Fee Due, if applicable;
	 
	9.	 	Names and Addresses of all Sublicensees, and Affiliates and distributors selling Licensed
Product.

35

 

APPENDIX H

INSURANCE REQUIREMENTS

     Beginning on the date a first clinical trial is initiated incorporating a Licensed Product and
continuing for five years after the date of the last sale of a Licensed Product in the United
States, Licensee shall maintain a commercial general liability insurance policy that insures UGARF
Indemnitees and names UGARF Indemnitees as an additional insured for all claims, damages, actions,
and judgments mentioned in paragraphs 8.6, 8.7, and 8.8 of this Agreement, and provides UGARF
Indemnitees with liability coverage in an amount no less than five million Dollars ($5,000,000) per
occurrence, subject to a reasonable aggregate amount per policy period.

     In the event that this Agreement terminates without the sale of any Licensed Product, and no
sale of Licensed Product is anticipated, the insurance required under this paragraph may be
discontinued.

36

 

APPENDIX I

NOTICES

	 	 	 	 	 
	1.

	 	If to UGARF:
	 	Director, Technology Commercialization Office

University of Georgia Research Foundation, Inc.

Boyd Graduate Studies Research Center, 6th Floor

Athens, Georgia 30602-7411

Facsimile: (706) 542-3837
	 
	 	 	 	 
	 

	 	With a copy to:
	 	General Counsel

University of Georgia Research Foundation, Inc.

Boyd Graduate Studies Research Center, 6th Floor

Athens, Georgia 30602-7411

Facsimile: (706) 583-0074
	 
	 	 	 	 
	2.

	 	If to Licensee:
	 	Dr. Joseph M. Patti, Chief Scientific Officer

Inhibitex, Inc.

9005 Westside Parkway

Alpharetta, GA 30004

Facsimile: (678) 746-0624
	 
	 	 	 	 
	 

	 	With a copy to:
	 	David S. Rosenthal, Esq.

Dechert, LLP

30 Rockefeller Plaza

New York, New York 10112

Facsimile: (212) 698-3599

37

 

APPENDIX J

SPONSORED RESEARCH AGREEMENT

To be attached.

38

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