Document:

Exhibit 10.42

 

RESEARCH AGREEMENT

 

THIS
RESEARCH AGREEMENT, (the “Agreement”), effective this 5th day of September,
2006, is entered into by and between NewLink Genetics Corporation, a
corporation with its principal place of business at 2901 S. Loop Drive, Suite 3900
Ames, IA 50010 (hereinafter “Sponsor”), and the Medical College of Georgia
Research Institute, Inc., (hereinafter “MCGRI”) a non-profit research and
educational corporation located at the Medical College of Georgia, Augusta,
Georgia 30912-4810.

 

WHEREAS,
the research program contemplated by this Agreement is of mutual interest and
benefit to MCGRI and to Sponsor, and will further the instructional and
research objectives of MCGRI in a manner consistent with its status as a
nonprofit, tax-exempt, research and educational institution;

 

WHEREAS,
the research program (hereinafter “Study”) will be performed through a
subcontract to the Medical College of Georgia (hereinafter “MCG”).

 

NOW,
THEREFORE, in consideration of the consideration of the premises and mutual
covenants herein contained, the parties hereto agree to the following.

 

ARTICLE 1 — RESEARCH PERFORMANCE

 

1.1               The Study shall be performed in accordance
with the protocol attached hereto as EXHIBIT A (the “Protocol”), which
involves laboratory work and experiments related [*]
that is licensed by Medical College of Georgia to NewLink Genetics, under the
direction of Dr. Andrew L. Mellor as Principal Investigator.  MCGRI and its subcontractor, MCG, do not
represent, warrant or guarantee that any specific results shall be
achieved.  In the case of conflict
between the terms of this Agreement and the Protocol or other attachments, the
terms of this Agreement shall control. 
It is understood that the Study may be conducted by a Research Associate
under the direction of  Dr. Mellor,
and under the supervision of Dr. Andrew Mellor such Research Associate
will perform discovery (fundamental) research related to the role of [*].

 

1.2               MCGRI and MCG shall use reasonable efforts to
perform such Study in accordance with the Protocol and the terms and conditions
of this Agreement.  By signing below, the
Principal Investigator agrees to undertake the obligations of the Investigator
as set forth in the Protocol.

 

1.3               In the event that the Principal Investigator
becomes unable or unwilling to continue the Study, and a mutually acceptable
substitute is not available, MCGRI or Sponsor shall have the option to
terminate said Study on thirty days written notice.

 

1.4               The Agreement Period is approximately September 5,
2006 through September 5, 2007 unless earlier terminated
pursuant to this Agreement.

 

ARTICLE 2 — COSTS, BILLINGS AND OTHER SUPPORT

 

2.1               Sponsor agrees to pay MCGRI the sum of [*] for the performance of the entire Study.  Sponsor shall pay [*]                     ,
upon the signing of this Agreement and: $                    
after the completion of the Study

 

	
  Checks
  should be made payable to:

  	
   

  	
  MCG
  Research Institute

  
	
   

  	
   

  	
   

  
	
  Mailing
  Address for payments:

  	
   

  	
  MCG
  Research Institute, Inc.

  
	
   

  	
   

  	
  P.O. Box
  945552

  

 

 

	
   

  	
   

  	
  Atlanta,
  GA 30394-5552

  

 

The MCGRI tax identification number is [*].

 

2.2.            Sponsor acknowledges and agrees that payments made
payable or sent to any individual or corporation other than as specified above,
shall not be credited towards fulfillment of Sponsor’s obligations under this
Article.

 

2.3               MCG shall retain title to any equipment
purchased with funds provided by Sponsor under this Agreement.

 

2.4               In the event of early termination of this
Agreement by Sponsor pursuant to this Agreement, Sponsor shall pay all costs
accrued by MCGRI as of the date of termination, including non-cancelable
obligations, incurred prior to the effective date of termination.

 

ARTICLE 3 — CONFIDENTIALITY

 

3.1               MCGRI and MCG shall use that care which they
use to protect their own confidential information not to disclose to any third
party any Study Results (as defined in Section 3.3 below), and any
information or data provided by Sponsor to MCGRI in connection with the Study
and the Protocol which is marked by Sponsor as confidential or with a similar
legend, or which is reduced to writing within 30 days after disclosure and
designated as confidential (collectively, the “Confidential Information”).  Such confidentiality obligation shall be
observed during the performance of the Study and for a period of three years
following the termination or expiration date of this Agreement.  Confidential Information shall be returned to
Sponsor to the extent possible upon completion by MCGRI of its obligations
under this Agreement or upon demand.

 

3.2               The obligation to protect Sponsor’s
Confidential Information shall not apply to any information that MCGRI can
demonstrate:

 

 

1.         is already in
the possession of, or is independently developed by MCGRI as evidenced by
written record;

2.         is or become publicly
available other than through breach of MCGRI’s confidentiality obligations;

3.         is received by
MCGRI from a third party without either knowledge of origination in Sponsor or
obligation of confidence;

4.         is released for
disclosure by Sponsor with its written consent, or

5.         is required to
be disclosed by law, regulation or court order, including but not limited to
the Georgia Open Records Act (providing that MCGRI has taken all reasonable
efforts to keep information confidential to the extent permitted by such Act)

 

Ownership
of Results.  “MCGRI agrees
that it has no proprietary rights to or interest in Sponsor’s pre-existing
intellectual property.  All Rights to
inventions, improvements and discoveries, whether or not patentable or
copyrightable, relating to the Study made solely by employees of Sponsor shall
belong exclusively to Sponsor.  Such
inventions, improvements, and discoveries shall not be subject to the terms and
conditions of this Agreement.  All data,
results, information and inventions generated by or on behalf of MCGRI and/or
MCG in performing the Study (collectively, the “Study Results”), and any
intellectual property rights in the Study Results, shall be owned, as between
Sponsor and MCGRI, as follows:  For Study
Results that relate directly to [*] owned or
exclusively licensed by Sponsor and/or are [*] already
licensed to Sponsor by MCGRI (or MCG, as applicable), such Study Results, and
all intellectual property rights in such Study Results (the “Improvement
Results”), will be governed pursuant to the terms of such existing license
agreement.  All rights and title to any
other Study Results (that is, other than the Improvement Results) created or
identified under the Study, and all intellectual property rights in such other
Study Results, shall belong to MCGRI, subject to the right of Sponsor to take
an exclusive, or non-exclusive, royalty-bearing license to such other Study
Results and the associated intellectual property rights (collectively, the “MCGRI
Intellectual Property”), as set forth below and shall be subject to the terms
and conditions of this Agreement.

 

MCGRI
will promptly notify Sponsor of any MCGRI Intellectual Property.  If Sponsor directs or MCGRI determines that a
patent application or application for other intellectual property protection
should be filed, MCGRI shall promptly prepare, file and prosecute such U. S. or
foreign application in MCGRI’s name.  If
Sponsor directs MCGRI to file a patent application hereunder or desires to
maintain its right to exercise either option (a) or (b) below,
Sponsor shall bear all costs incurred in connection with such preparation,
filing, prosecution and maintenance of U. S. and foreign application(s).  Sponsor shall cooperate with MCGRI to assure
that such application(s) will cover, to the best of Sponsor’s knowledge,
all items of commercial 

 

 

interest
and importance.  While MCGRI shall be
responsible for making decisions regarding scope and content of application(s) to
be filed and prosecution thereof, Sponsor shall be given an opportunity to
review and provide input thereto.  MCGRI
shall inform Sponsor of all developments with respect to such application(s) and
shall promptly supply to Sponsor copies of all papers received and filed in
connection with the prosecution thereof in sufficient time for Sponsor to
comment thereon.

 

If
Sponsor elects not to exercise its option as described below or decides to
discontinue the financial support of the prosecution or maintenance of the
protection, MCGRI shall be free to file or continue prosecution or maintain any
such application(s), and to maintain any protection issuing thereon in the U.
S. and in any foreign country at MCGRI’s sole expense.  MCGRI hereby grants Sponsor a royalty-free,
non-exclusive license to use MCGRI Intellectual Property within its own
organization for any noncommercial purpose. 
MCGRI hereby grants the first option, at Sponsor’s sole selection, for
either (a) a non-exclusive, royalty-bearing license to use MCGRI Intellectual
Property for any purpose except sublicensing, or (b) an exclusive
royalty-bearing license with the full rights to grant sublicenses.  Terms and conditions of these licenses are to
be commercially reasonable, and shall be negotiated in good faith and agreed
upon between MCGRI and Sponsor.  Provided
Sponsor has participated in bearing patent expenses as described above, this
option shall extend for a period of sixty days from the termination date of
this Agreement.  In the event that
Sponsor acquires an exclusive license or right under this Agreement, Sponsor
hereby grants to MCGRI the right to continue to use MCGRI Intellectual Property
for any noncommercial purpose.”

 

3.3

 

ARTICLE 4 — PUBLICATIONS

 

4.1               Sponsor recognizes that under MCGRI and MCG
policy, the results of the Study must be publishable and agrees that
researchers engaged in the Study shall be permitted to present at symposia,
national or regional professional meetings, and to publish in journals, theses
or dissertations, or otherwise of their own choosing, methods and results of
the Study, provided, however, that Sponsor shall have been furnished copies of
any proposed publication or presentation at least one month in advance of the
submission of such proposed publication or presentation to a journal, editor,
or other third party.  Sponsor shall have
30 days after receipt of said copies, to object to such proposed presentation
or proposed publication because of the inclusion of Confidential
Information.  In the event that Sponsor
makes such objection, said researcher(s) shall refrain from making such
publication or presentation for a maximum of four months from the date of
receipt of such objection in order for MCGRI or Sponsor to file patent
application(s) with the United States Patent and Trademark Office or
foreign patent office (s) directed to the patentable subject matter
contained in the proposed publication or presentation.

 

 

ARTICLE 5 — TERM AND TERMINATION

 

5.1               This Agreement shall become effective upon
the date first written above and shall continue in effect for the full duration
of the Agreement Period, as specified in Article 1.4.  The parties hereto may, however, extend the
term of this Agreement for additional periods as desired under mutually
agreeable terms and conditions which the parties reduce to writing and sign.

 

5.2               This Study may be terminated at any time by
MCGRI or by Sponsor for any valid cause, by either party’s giving thirty (30)
days written notice to the other party.

 

5.3               No termination of this Agreement, however,
effectuated, shall release the parties from their rights and obligations
accrued prior to the effective date of termination.

 

ARTICLE 6 — INDEPENDENT CONTRACTOR

 

6.1               MCGRI shall be deemed to be and shall be an
independent contractor and as such MCGRI shall not be entitled to any benefits
applicable to employees of Sponsor.

 

6.2               Neither party is authorized or empowered to
act as agent for the other for any purpose and shall not on behalf of the other
enter into any contract, warranty or representation as to any matter.  Neither shall be bound by acts or conduct of
the other.

 

ARTICLE 7 — USE OF NAME

 

7.1               Sponsor agrees that it will not use the name
of MCGRI or the Principal Investigator or sub-investigators in any advertising
or publicity material, or make any form of representation or statement in
relation to the work conducted under the terms of this Agreement which would
constitute an express or implied endorsement by MCGRI, MCG or the Principal
Investigator or sub-investigators of any commercial product or service, and
that it will not authorize others to do so, without first having obtained
written approval from MCGRI.

 

ARTICLE 8 — CONFLICT OF INTEREST

 

8.1               MCG institutional policy requires that
persons engaged in Sponsored research must disclose potential financial
conflicts of interests with such research, including certain consulting, stock
ownership, or other relationships with a company which Sponsors such research,
and that MCG must take measures to eliminate or minimize any effects of such
potential conflicts on the objectivity of such research.  By signing below, Principal Investigator
agrees to comply with MCG institutional policy and requirements governing
conflict of interest.

 

 

ARTICLE 9 — NON-DISCRIMINATION

 

9.1               Neither MCGRI nor Sponsor shall discriminate
against any person on the basis of race, national origin, religion, creed, sex,
sexual orientation, age or handicaps in the performance of this Agreement.

 

ARTICLE 10 — GOVERNING LAW

 

10.1         This Agreement shall be governed and construed in
accordance with the laws of the State of Georgia.

 

ARTICLE 11 — ASSIGNMENT

 

11.1         This Agreement shall not be assigned by either party
without the prior written consent of the parties hereto, except that MCGRI may
subcontract Study to MCG.

 

11.2         This Agreement is assignable to any division of
Sponsor, any majority stockholder of Sponsor, or any subsidiary of Sponsor in
which fifty-one percent of the outstanding stock is owned by Sponsor.

 

ARTICLE 12 — COMPLETE AGREEMENT AND MODIFICATION

 

12.1         This writing contains the complete Agreement of
MCGRI and Sponsor, which stipulate that they have made no representation with
respect to the subject matter of this Agreement including the execution and
delivery hereof except such representations as are specifically set forth
herein.

 

ARTICLE 13 — NOTICES

 

13.1         Notices hereunder shall be deemed made if given by
registered or certified mail, postage prepaid, and addressed to the party to
receive such notice at the address given below, or such other address as may
hereafter be designated by notice in writing.

 

 

	
  If to Sponsor:

  	
   

  	
  If to
  MCGRI:

  
	
   

  	
   

  	
   

  
	
  NewLink
  Genetics Corporation

  	
   

  	
  Betty
  Aldridge

  
	
  2901
  S. Loop Drive, Suite 3900

  	
   

  	
  Executive
  Director

  
	
  Ames, IA
  50010

  	
   

  	
  MCG
  Research Institute, Inc.

  
	
  Attn:
  President

  	
   

  	
  Medical
  College of Georgia

  
	
   

  	
   

  	
  Augusta,
  Georgia 30912-4810

  

 

 

AGREED
TO:

 

	
  Sponsor:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Medical
  College of Georgia Research Institute, Inc.

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  /s/
  Nicholas N. Vahanian

  	
  11/28/06

  	
   

  	
  /s/
  Betty Aldridge

  	
  11/17/06

  
	
  Name:

  	
  Date

  	
   

  	
  Betty
  Aldridge

  	
  Date

  
	
   

  	
   

  	
   

  	
  Executive
  Director

  	
   

  
	
   

  	
   

  	
   

  	
  (/s/RPM
  10/30/06)

  	
   

  

 

ACCEPTED
BY:

 

 

	
  /s/
  Andrew Mellor

  	
   

  	
   

  	
  11/14/06

  	
   

  
	
  Principal
  Investigator (Signature)

  	
   

  	
   

  	
  Date

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

EXHIBIT A

PROTOCOL FOR STUDY

 

[to be added by Parties]Exhibit
10.43

 

AGREEMENT AMENDMENT

 

First Amendment to

Agreement Between

 

NewLink Genetics Corporation

and

Medical College of Georgia Research Institute, Inc.

 

This
first amendment to the agreement is entered into by and between NewLink
Genetics Corporation (hereinafter SPONSOR) and the Medical College of Georgia
Research Institute, Inc. (hereinafter MCGRI).

 

WHEREAS
on November 17, 2006 MCGRI approved an agreement with SPONSOR for the term
from September 5, 2006 through September 5, 2007 under which MCGRI and
the Medical College of Georgia agreed to perform the study entitled, [*] under the direction of Dr. Andrew Mellor as
Principal Investigator.

 

NOW,
THEREFORE, said agreement is amended as follows:

 

1.                                       Article 1-
RESEARCH PERFORMANCE, subsection 1.4 of agreement is deleted and replaced in
its entirety to read:

 

The
Agreement Period is approximately September 5, 2006 through September 5,
2008 unless earlier terminated pursuant to this Agreement.

 

2.                                       Article 2
- COSTS, BILLINGS, AND OTHER SUPPORT of agreement is amended to include:

 

Sponsor
agrees to pay MCGRI the sum of [*] for the
additional performance period of September 5, 2007 through September 5,
2008. Sponsor shall pay in four equal installments of [*] in
Sept. 2007, Jan., June, and July 2008.

 

3.                                       All other terms
and conditions of agreement not expressly amended herein shall remain in full
force and effect.

 

This
first amendment to the clinical research agreement is signed below and agreed
to by the duly authorized representatives of the parties.

 

	
  MEDICAL COLLEGE OF GEORGIA

  	
   

  	
  NEWLINK
  GENETICS

  	
   

  
	
  RESEARCH INSTITUTE, INC.

  	
   

  	
  CORPORATION

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  /s/Betty
  Aldridge

  	
  8/21/07

  	
   

  	
  /s/Nicholas
  Vahanian

  	
  8/21/07

  
	
  Betty
  Aldridge

  	
  Date

  	
   

  	
  Name:
  Nicholas N. Vahanian

  	
  Date

  
	
  Executive
  Director

  	
   

  	
   

  	
  Title:
  Chief Medical & Operations

  	
   

  
	
   

  	
   

  	
   

  	
  Officer

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