Document:

Salamon Brothers LLC                                Tel.No.(516)371-9440
20 Margaret Ave                                     Fax.No.(516)371-9440
Lawrence, N.Y. 11559                        Email-salamon.brothers@verizon.net

                            AGREEMENT

     Agreement (this "Agreement") dated as of March 19, 2004 between Unico,
Inc. an Arizona corporation(the "Company"), and Howard Salamon (the
"Consultant").

     WHEREAS, the Company and Consultant desire to terminate the current
agreement between the parties and have such agreement replaced in its entirety
by the terms and provisions of this Agreement; and-

     NOW. THEREFORE, in consideration of the premises and the representations,
covenants and agreements hereinafter set forth, and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged,
the Company and the Consultant agree as follows:

     Section 1. Introductions. The Company acknowledges that the Consultant
has and will introduce the Company to certain of its contacts (collectively,
"Contacts"). Any Contact that has been introduced to the Company will be so
deemed only if and when the parties have identified, agreed to and executed a
documented and dated list of such Contacts and their introductions.

     Section 2. Consultant's Fee. For providing services as set forth herein,
the Consultant shall be entitled to the following compensation:

     (i) The Consultant shall be issued 2% of the authorized amount of any
class of preferred stock created by Javelin Holdings for the benefit of
management.

     (ii) For any Contact which gives the Company monies issued in
consideration of a convertible debenture to he issued by the Company, the
Company shall pay the Consultant 10% of the amount of such financing. Said fee
shall be paid in cash to the Consultant when monies are received by the
funding group. The Company shall pay said cash fee only if a transaction is
consummated with a Contact. Any amounts payable to the Company in installments
shall be deemed paid only when the installment is paid to the Company.

     (iii) For any Contacts which purchase Regulation E stock issued by the
Company, the Consultant shall be entitled to 5% for the first $1 million of
such stock purchased; 4% of the next $1 million; 3% for the next $1 million;
2% for the next $I million and for all amounts above $4 million. 1%.All monies
are to be paid to Consultant on the day the Company receives the monies from
funding group.

     Section 3. Retainer and Expenses. No retainer or similar advance payments
will be paid or considered due by the Company to the Consultant. All expenses
incurred by the Consultant and Contact shall be the sole responsibility of the
Consultant and Contact. The Company will not reimburse any expenses incurred
by the Consultant or Contact.

     Section 4. Miscellaneous. Any and all previous agreements and
arrangements between the parties are hereby terminated and have no further
force and effect. This Agreement shall inure to the benefit of the parties
hereto and their respective successors and assigns. In case any provision of
this Agreement shall be invalid, illegal or unenforceable, the validity,
legality and enforceability of the remaining provisions of the Agreement shall
not in any way be affected or impaired thereby. This Agreement shall be
governed by and construed in accordance with the laws of the State of New York
without giving effect to choice of law doctrine. Each party hereto consents to
personal jurisdiction in New York State and voluntarily submits to its
jurisdiction in any action or proceeding with respect to this Agreement. Venue
for any action arising hereunder shall lie in the state and federal courts
located in New York, New York. This Agreement shall constitute the entire
agreement, whether oral or written, of the parties hereto and may only he
amended by a writing executed by the parties hereto. The Company acknowledges
that this Agreement shall only relate to the services provided for herein and
any other services requested of the Consultant by the Company shall be subject
to a separate agreement.

     IN WITNESS WHEREOF, the parties have executed this Agreement as of the
date first written above.

Unico, Inc

    /s/ Ray C. Brown
By:_____________________

Name: Ray Brown

Title: CEO

/s/ Howard Salamon
________________________
Howard Salamon

Salamon Brothers LLCEXHIBIT 10.85

 

CERTAIN
CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY

BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE

COMMISSION PURSUANT TO RULE 406 OF THE SECURITIES ACT OF 1933, AS AMENDED.

 

 

COLLABORATION AND LICENSE AGREEMENT

 

BY AND BETWEEN

 

ABGENIX, INC.

 

AND

 

ASTRAZENECA UK LTD

 

DATED AS OF OCTOBER 15, 2003

 

 

 

TABLE OF CONTENTS

 

	
  1.

  	
  DEFINITIONS

  	
   

  
	
   

  	
   

  	
   

  
	
  2.

  	
  RESEARCH
  PROGRAM

  	
   

  
	
   

  	
  2.1

  	
  General

  	
   

  
	
   

  	
  2.2

  	
  Collaboration Antigen
  Designation

  	
   

  
	
   

  	
  2.3

  	
  Conduct of Research Program

  	
   

  
	
   

  	
  2.4

  	
  Records

  	
   

  
	
   

  	
  2.5

  	
  Reports and Notices

  	
   

  
	
   

  	
  2.6

  	
  Identification of Candidate
  Drugs

  	
   

  
	
   

  	
  2.7

  	
  Research Program Term

  	
   

  
	
   

  	
  2.8

  	
  Project
  Leaders

  	
   

  
	
   

  	
  2.9

  	
  Key Positions

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  3.

  	
  RESEARCH MANAGEMENT
  COMMITTEE

  	
   

  
	
   

  	
  3.1

  	
  Composition of the
  Committee

  	
   

  
	
   

  	
  3.2

  	
  Meetings

  	
   

  
	
   

  	
  3.3

  	
  Purpose of Committee

  	
   

  
	
   

  	
  3.4

  	
  Areas of Responsibility

  	
   

  
	
   

  	
  3.5

  	
  Minutes

  	
   

  
	
   

  	
  3.6

  	
  Disputes

  	
   

  
	
   

  	
  3.7

  	
  Target Review
  Committee

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  4.

  	
  LICENSES/GRANTS OF RIGHTS

  	
   

  
	
   

  	
  4.1

  	
  Collaboration Antigens

  	
   

  
	
   

  	
  4.2

  	
  Research and Development Program Licenses

  	
   

  
	
   

  	
  4.3

  	
  Licensed Products

  	
   

  
	
   

  	
  4.4

  	
  Non-Licensed Products

  	
   

  
	
   

  	
  4.5

  	
  Discontinued Antigens

  	
   

  
	
   

  	
  4.6

  	
  Antigen-Specific
  Technology

  	
   

  
	
   

  	
  4.7

  	
  Other
  Technology

  	
   

  
	
   

  	
  4.8

  	
  Oncology Technology

  	
   

  
	
   

  	
  4.9

  	
  Development Program
  Technology

  	
   

  
	
   

  	
  4.10

  	
  Failed Antigens

  	
   

  
	
   

  	
  4.11

  	
  Cross
  Licenses

  	
   

  
	
   

  	
  4.12

  	
  Diligence

  	
   

  
	
   

  	
  4.13

  	
  Distributors

  	
   

  
	
   

  	
  4.14

  	
  Covenant
  Not to Sue

  	
   

  
	
   

  	
  4.15

  	
  Covenant
  by ABX

  	
   

  
	
   

  	
  4.16

  	
  Covenant
  by AZ

  	
   

  
	
   

  	
  4.17

  	
  Third Party Rights

  	
   

  
	
   

  	
  4.18

  	
  Further Covenants and
  Agreements

  	
   

  
	
   

  	
  4.19

  	
  Trademarks

  	
   

  

 

i

 

	
   

  	
  4.20

  	
  Certain
  Restrictions and Rights Regarding Failed and Discontinued Antigens

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  5.

  	
  DEVELOPMENT PROGRAM

  	
   

  
	
   

  	
  5.1

  	
  General

  	
   

  
	
   

  	
  5.2

  	
  Conduct
  of Development

  	
   

  
	
   

  	
  5.3

  	
  Development Program
  Work Plan and Budget

  	
   

  
	
   

  	
  5.4

  	
  Process Development Program

  	
   

  
	
   

  	
  5.5

  	
  Records

  	
   

  
	
   

  	
  5.6

  	
  Reports and Notices

  	
   

  
	
   

  	
  5.7

  	
  ABX Registrations

  	
   

  
	
   

  	
  5.8

  	
  AZ
  Registrations

  	
   

  
	
   

  	
  5.9

  	
  Election
  Notice

  	
   

  
	
   

  	
  5.10

  	
  Non-Licensed
  Products

  	
   

  
	
   

  	
  5.11

  	
  Right
  to Abandon

  	
   

  
	
   

  	
  5.12

  	
  Development Program
  Leaders

  	
   

  
	
   

  	
  5.13

  	
  Performance
  of Development Program by AZ

  	
   

  
	
   

  	
  5.14

  	
  Term of Development
  Program

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  6.

  	
  DEVELOPMENT
  MANAGEMENT COMMITTEE

  	
   

  
	
   

  	
  6.1

  	
  Composition of the Committee

  	
   

  
	
   

  	
  6.2

  	
  Meetings

  	
   

  
	
   

  	
  6.3

  	
  Purpose of Committee

  	
   

  
	
   

  	
  6.4

  	
  Areas of Responsibility

  	
   

  
	
   

  	
  6.5

  	
  Minutes

  	
   

  
	
   

  	
  6.6

  	
  Disputes

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  7.

  	
  PROCESS SCIENCE
  AND MANUFACTURING

  	
   

  
	
   

  	
  7.1

  	
  Negotiation
  and Execution of Agreements

  	
   

  
	
   

  	
  7.2

  	
  Prior to First
  Commercial Sale

  	
   

  
	
   

  	
  7.3

  	
  Manufacture
  of Licensed Product for Commercial Sale

  	
   

  
	
   

  	
  7.4

  	
  Manufacturing
  Commitment and Capacity

  	
   

  
	
   

  	
  7.5

  	
  Failure or Inability
  to Perform

  	
   

  
	
   

  	
  7.6

  	
  Additional Capacity
  or Technologies

  	
   

  
	
   

  	
  7.7

  	
  Manufacturing and
  Supply Committee

  	
   

  
	
   

  	
  7.8

  	
  Information Disclosure

  	
   

  
	
   

  	
  7.9

  	
  Process
  Technology

  	
   

  
	
   

  	
  7.10

  	
  Technology Transfer

  	
   

  
	
   

  	
  7.11

  	
  Disengagement

  	
   

  
	
   

  	
  7.12

  	
  DMF

  	
   

  
	
   

  	
  7.13

  	
  Process
  Development Funding and Supply Price

  	
   

  

 

ii

 

	
   

  	
  7.14

  	
  Termination

  	
   

  
	
   

  	
  7.15

  	
  Use of Technologies

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  8.

  	
  CO-DEVELOPMENT
  AND COMMERCIALIZATION

  	
   

  
	
   

  	
  8.1

  	
  Co-Development Agreement

  	
   

  
	
   

  	
  8.2

  	
  Offer

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  9.

  	
  FUNDING,
  MILESTONE PAYMENTS AND ROYALTIES

  	
   

  
	
   

  	
  9.1

  	
  Research Program Funding

  	
   

  
	
   

  	
  9.2

  	
  Development Program Funding

  	
   

  
	
   

  	
  9.3

  	
  AZ Milestone
  Payments and Royalties

  	
   

  
	
   

  	
  9.4

  	
  ABX Milestone
  Payments and Royalties

  	
   

  
	
   

  	
  9.5

  	
  Diagnostic or
  Veterinary Products

  	
   

  
	
   

  	
  9.6

  	
  Net Sales by Sublicensees

  	
   

  
	
   

  	
  9.7

  	
  Reduction
  of Royalty

  	
   

  
	
   

  	
  9.8

  	
  Sales Subject to Royalties

  	
   

  
	
   

  	
  9.9

  	
  Royalty Reports and
  Payments

  	
   

  
	
   

  	
  9.10

  	
  Royalty Term

  	
   

  
	
   

  	
  9.11

  	
  Records;
  Inspection

  	
   

  
	
   

  	
  9.12

  	
  Payment Method

  	
   

  
	
   

  	
  9.13

  	
  Currency
  Conversion

  	
   

  
	
   

  	
  9.14

  	
  Late Payments

  	
   

  
	
   

  	
  9.15

  	
  Taxes

  	
   

  
	
   

  	
  9.16

  	
  Imports

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  10.

  	
  FINANCING
  TERMS

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  11.

  	
  TECHNOLOGY

  	
   

  
	
   

  	
  11.1

  	
  Ownership

  	
   

  
	
   

  	
  11.2

  	
  Restrictions
  Regarding the Technology

  	
   

  
	
   

  	
  11.3

  	
  Material and
  Information Transfer

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  12.

  	
  PATENT
  RIGHTS

  	
   

  
	
   

  	
  12.1

  	
  Prosecution and Maintenance

  	
   

  
	
   

  	
  12.2

  	
  Enforcement

  	
   

  
	
   

  	
  12.3

  	
  Invalidity
  or Unenforceability Defenses or Actions

  	
   

  
	
   

  	
  12.4

  	
  Third Party Litigation

  	
   

  
	
   

  	
  12.5

  	
  Retained
  Rights

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  13.

  	
  CONFIDENTIALITY

  	
   

  
	
   

  	
  13.1

  	
  Confidentiality

  	
   

  
	
   

  	
  13.2

  	
  AZ Information

  	
   

  

 

iii

 

	
   

  	
  13.3

  	
  Permitted Disclosures

  	
   

  
	
   

  	
  13.4

  	
  Terms of Agreement

  	
   

  
	
   

  	
  13.5

  	
  Use
  of Name/Publicity

  	
   

  
	
   

  	
  13.6

  	
  Publications and
  Presentations

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  14.

  	
  REPRESENTATIONS AND
  WARRANTIES

  	
   

  
	
   

  	
  14.1

  	
  Representations
  and Warranties of the Parties

  	
   

  
	
   

  	
  14.2

  	
  Additional
  Representations, Warranties and Covenants of ABX

  	
   

  
	
   

  	
  14.3

  	
  Additional
  Representation, Warranty and Covenant of AZ

  	
   

  
	
   

  	
  14.4

  	
  DISCLAIMER OF WARRANTIES

  	
   

  
	
   

  	
  14.5

  	
  Additional Agreement
  of the Parties

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  15.

  	
  INDEMNIFICATION AND
  INSURANCE

  	
   

  
	
   

  	
  15.1

  	
  AZ

  	
   

  
	
   

  	
  15.2

  	
  ABX

  	
   

  
	
   

  	
  15.3

  	
  Procedure

  	
   

  
	
   

  	
  15.4

  	
  Insurance

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  16.

  	
  TERM; TERMINATION

  	
   

  
	
   

  	
  16.1

  	
  Term

  	
   

  
	
   

  	
  16.2

  	
  Change in
  Control or Acquisition of ABX

  	
   

  
	
   

  	
  16.3

  	
  Termination by AZ for
  Breach

  	
   

  
	
   

  	
  16.4

  	
  Termination by ABX for
  Breach

  	
   

  
	
   

  	
  16.5

  	
  Tolling of Termination

  	
   

  
	
   

  	
  16.6

  	
  Termination for Safety
  Reasons

  	
   

  
	
   

  	
  16.7

  	
  Termination Upon Bankruptcy

  	
   

  
	
   

  	
  16.8

  	
  Effect of
  Expiration and Termination

  	
   

  
	
   

  	
  16.9

  	
  Termination for Safety
  Reasons

  	
   

  
	
   

  	
  16.10

  	
  Process Development
  Program

  	
   

  
	
   

  	
  16.11

  	
  Remedies

  	
   

  
	
   

  	
  16.12

  	
  Survival

  	
   

  
	
   

  	
  16.13

  	
  Rights in Bankruptcy

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  17.

  	
  EXCLUSIVITY

  	
   

  
	
   

  	
  17.1

  	
  During the Antigen
  Designation Term

  	
   

  
	
   

  	
  17.2

  	
  Following the
  Antigen Designation Term

  	
   

  
	
   

  	
  17.3

  	
  No Breach

  	
   

  
	
   

  	
  17.4

  	
  Certain
  Provisions Applicable Upon a Change in Control Involving ABX

  	
   

  
	
   

  	
  17.5

  	
  Certain
  Provisions Applicable Upon an Acquisition by or with ABX

  	
   

  
	
   

  	
  17.6

  	
  Certain
  Provisions Applicable Upon a Change in Control Involving AZ

  	
   

  

 

iv

 

	
   

  	
  17.7

  	
  Certain
  Provisions Applicable Upon an Acquisition by or with AZ

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  18.

  	
  ADVERSE EVENT REPORTING

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  19.

  	
  PRODUCT
  RECALL

  	
   

  
	
   

  	
  19.1

  	
  Notification and Recall

  	
   

  
	
   

  	
  19.2

  	
  Recall
  Expenses

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  20.

  	
  MISCELLANEOUS

  	
   

  
	
   

  	
  20.1

  	
  Governing
  Law, Jurisdiction, Venue and Service

  	
   

  
	
   

  	
  20.2

  	
  Waiver

  	
   

  
	
   

  	
  20.3

  	
  Assignment

  	
   

  
	
   

  	
  20.4

  	
  Independent Contractors

  	
   

  
	
   

  	
  20.5

  	
  Further
  Actions

  	
   

  
	
   

  	
  20.6

  	
  Notices

  	
   

  
	
   

  	
  20.7

  	
  No Implied Licenses

  	
   

  
	
   

  	
  20.8

  	
  Force
  Majeure

  	
   

  
	
   

  	
  20.9

  	
  No Consequential Damages

  	
   

  
	
   

  	
  20.10

  	
  Complete Agreement

  	
   

  
	
   

  	
  20.11

  	
  Counterparts

  	
   

  
	
   

  	
  20.12

  	
  Construction

  	
   

  
	
   

  	
  20.13

  	
  Severability

  	
   

  
	
   

  	
  20.14

  	
  Non-Solicitation

  	
   

  
	
   

  	
  20.15

  	
  Conditions
  Precedent to Grants of Exclusive Licenses

  	
   

  

 

v

 

COLLABORATION AND LICENSE AGREEMENT

 

This COLLABORATION AND LICENSE AGREEMENT (this “Agreement”)
dated as of October 15, 2003, is entered into by and between, on the one
hand, ABGENIX, INC., a Delaware corporation (“ABX”), having a place of
business at 6701 Kaiser Drive, Fremont, California 94555, U.S.A., and, on the
other hand, ASTRAZENECA UK LTD., a company incorporated in England under
no. 3674842 whose registered office is at 15 Stanhope Gate, London, WIK 1LN,
England (“AZ”).

 

RECITALS

 

A.                                   ABX has rights in the XenoMouse®
Animals (as defined below), and other proprietary technology regarding the
research, development, manufacture and commercialization of fully human monoclonal
antibodies generated thereby.

 

B.                                     ABX
has expertise in the research and preclinical and clinical development of such
antibodies and in the development of manufacturing processes for and the
clinical supply and manufacture of such antibodies.

 

C.                                     AZ
has expertise in the research, development and commercialization of
non-antibody products in the field of oncology.

 

D.                                    ABX
desires to research and develop certain fully human monoclonal antibodies
through the first Phase II clinical trials, to develop for AZ manufacturing
processes for the clinical and commercial manufacture of such antibodies and to
manufacture and supply AZ’s clinical and commercial requirements of each such
antibody through the fifth anniversary of its first commercial sale on the terms
and conditions set forth below.

 

E.                                      In light of the foregoing, ABX and AZ
desire to conduct a collaborative program pursuant to which ABX and AZ will
work exclusively together to generate and develop fully human monoclonal
antibodies directed against antigens in the field of oncology on the terms and
conditions set forth below.

 

F.                                      In light of the foregoing, ABX desires
to license to AZ, and AZ desires to obtain a worldwide license, to research,
develop and commercialize products comprising such antibodies derived from such
collaborative program on the terms and conditions set forth below.

 

G.                                     In light of the foregoing, AZ has agreed to purchase certain securities
of ABX in accordance with that certain Securities Purchase Agreement dated as
of even date herewith (the “Purchase Agreement”), and the related
Certificates of Designation (as such term is defined in the Purchase
Agreement), subject to the terms and conditions contained in such agreement and
certificates.

 

NOW THEREFORE, in consideration of the foregoing premises and the mutual covenants set
forth below, and other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the Parties, intending to be
legally bound, agree as follows:

 

 

1.                                       DEFINITIONS

 

For purposes of this Agreement, the terms set forth in this
Article 1 shall have the respective meanings set forth below:

 

1.1                                 “ABX Antigen In-License” shall
mean an ABX In-License pursuant to which ABX or its Affiliates acquires
intellectual property rights to a particular Antigen, or antibodies that bind
to and are directed against such Antigen.

 

1.2                                 “ABX Antigen-Specific Know-How
Rights” shall mean the ABX Prior Antigen-Specific Know-How Rights and the
ABX Subsequent Antigen-Specific Know-How Rights.

 

1.3                                 “ABX Antigen-Specific Patent Rights”
shall mean the ABX Prior Antigen-Specific Patent Rights and the ABX Subsequent
Antigen-Specific Patent Rights.

 

1.4                                 “ABX Antibody Know-How Rights”
shall mean Know-How Rights Controlled by ABX or its Affiliates in
Antibody Technology.

 

1.5                                 “ABX Antibody Patent Rights”
shall mean Patent Rights Controlled by ABX or its Affiliates that
contain a claim that covers, and only to the extent they contain a claim that
covers, Antibody Technology.

 

1.6                                 “ABX Diagnostic Antigen” shall
have the meaning set forth in Section 2.2.1(m).

 

1.7                                 “ABX
Indemnitees” shall have the meaning set forth in Section 15.1.

 

1.8                                 “ABX In-License” shall mean a
license or other agreement under which ABX or its Affiliates (a) Control
Licensed ABX IP Rights, or (b) owe obligations (including obligations to
pay royalties or other amounts) to a Third Party relating to Licensed ABX IP
Rights.

 

1.9                                 “ABX In-License Information”
shall have the meaning set forth in Section 4.17.2.

 

1.10                           “ABX Oncology Know-How Rights”
shall mean Know-How Rights Controlled by ABX or its Affiliates in Oncology Technology.

 

1.11                           “ABX Oncology Patent Rights”
shall mean Patent Rights Controlled by ABX or its Affiliates that contain a
claim that covers, and only to the extent that they contain a claim that
covers, Oncology Technology.

 

1.12                           “ABX Other Know-How Rights”
shall mean Know-How Rights Controlled by ABX or its Affiliates in Other Technology.

 

2

 

1.13                           “ABX Other Patent Rights” shall
mean Patent Rights Controlled by ABX or its Affiliates that contain a claim
that covers, and only to the extent that they contain a claim that covers,
Other Technology.

 

1.14                           “ABX Prior Antigen-Specific Know-How
Rights” shall mean, with respect to a Proposed Antigen or Collaboration
Antigen (irrespective of whether such Collaboration Antigen becomes a
Discontinued Antigen or a Failed Antigen), Know-How Rights Controlled by
ABX or its Affiliates in Antigen-Specific Technology, that (a) are
Controlled by ABX or its Affiliates prior to the date of the applicable Antigen
Notice under
Section 2.2.1(a), 2.2.1(j) or 2.2.1(k), as applicable, (b) are
first Controlled by ABX or its Affiliates after such date pursuant to the
merger, acquisition (whether of all of the outstanding stock or all or
substantially all of the assets of a Person) or similar transaction by or with
another Person, (c) are first Controlled by ABX or its Affiliates after
such date pursuant to an ABX In-License listed on Exhibit K-2, (d) are
first conceived or generated by or on behalf of ABX or its Affiliates under or
in connection with any program conducted outside this Agreement without
violating the terms of this Agreement, (e) are first conceived or
generated by or on behalf of ABX in connection with any validation activities
conducted by ABX with respect to such Proposed Antigen pursuant to
Section 2.2.2(a), or (f) are first conceived or generated by or on
behalf of ABX in connection with any
work performed by ABX under an internal program with respect to the
Advanced ABX Antigen or an Accelerated ABX Antigen prior to each such Antigen
being designated as a Collaboration Antigen; provided, however,
that ABX Prior Antigen-Specific Know-How Rights shall not include any
Antigen-Specific Technology that is first Controlled by ABX or its Affiliates
or first conceived or generated by or on behalf of ABX, as applicable, after
such Antigen becomes a Non-Selected Antigen, a Discontinued Antigen or a Failed
Antigen.

 

1.15                           “ABX Prior Antigen-Specific Patent
Rights” shall mean, with respect to a Proposed Antigen or Collaboration
Antigen (irrespective of whether such Collaboration Antigen becomes a
Discontinued Antigen or a Failed Antigen), Patent Rights Controlled by
ABX or its Affiliates that (a) contain a claim that covers, and only to
the extent they contain a claim that covers, Antigen-Specific Technology, and
(b) (i) are Controlled by ABX or its Affiliates prior to the date of the applicable Antigen Notice under Section 2.2.1(a),
2.2.1(j) or 2.2.1(k), as applicable, (ii) are first Controlled by
ABX or its Affiliates after such date pursuant to the merger, acquisition
(whether of all of the outstanding stock or all or substantially all of the
assets of a Person) or similar transaction by or with another Person, (iii) are
first Controlled by ABX or its Affiliates after such date pursuant to an ABX
In-License listed on Exhibit K-2, (iv) are first conceived or
generated by or on behalf of ABX or its Affiliates under or in connection with
any program conducted outside this Agreement without violating the terms of
this Agreement, (v) are first conceived or generated by or on behalf of
ABX in connection with any validation activities conducted by ABX with respect
to such Proposed Antigen pursuant to Section 2.2.2(a), or (vi) are
first conceived or generated by or on behalf of ABX in connection with any work performed by ABX under an
internal program with respect to the Advanced ABX Antigen or an
Accelerated ABX Antigen prior to each such Antigen being designated as a Collaboration
Antigen; provided, however, that ABX Prior Antigen-Specific
Patent Rights shall not include any Antigen-Specific Technology that is first
Controlled by ABX or its Affiliates or first conceived or generated by or on
behalf of ABX, as applicable, after such Antigen becomes a Non-Selected
Antigen, a Discontinued Antigen or a Failed Antigen.

 

3

 

1.16                           “ABX Process Know-How Rights”
shall mean Know-How Rights Controlled by ABX or its Affiliates in ABX Process
Technology.

 

1.17                           “ABX Process Patent Rights”
shall mean Patent Rights Controlled by ABX or its Affiliates that contain a
claim that covers, and only to the extent they contain a claim that covers, ABX
Process Technology.

 

1.18                           “ABX Process Technology” shall
mean any and all Information and inventions relating to the preclinical,
clinical and commercial manufacture, testing and release of Antibodies,
Candidate Drugs, Licensed Products or Antibody Equivalents that (a) are
conceived or generated under the Process Science/Clinical Manufacture
Agreement, or (b) otherwise are Controlled by ABX or its Affiliates and
are utilized by ABX or its Affiliates under the Process Science/Clinical
Manufacture Agreement.

 

1.19                           “ABX Product” shall mean a
product containing an Antibody or Antibody Equivalent that binds to and is
directed against a Discontinued Antigen or Failed Antigen.

 

1.20                           “ABX Subsequent Antigen-Specific
Know-How Rights” shall mean, with respect to a Proposed Antigen or
Collaboration Antigen (irrespective of whether such Collaboration Antigen
becomes a Discontinued Antigen or a Failed Antigen), Know-How Rights
Controlled by ABX or its Affiliates in Antigen-Specific Technology, that are
first Controlled by ABX or its Affiliates after the date of the applicable
Antigen Notice under Section 2.2.1(a), 2.2.1(j) or 2.2.1(k), as applicable, and prior to the date of the designation of such
Antigen as a Non-Selected Antigen, Failed Antigen or Discontinued Antigen,
other than ABX Prior Antigen-Specific Know-How Rights and ABX Prior
Antigen-Specific Patent Rights.

 

1.21                           “ABX Subsequent Antigen-Specific
Patent Rights” shall mean, with respect to a Proposed Antigen or
Collaboration Antigen (irrespective of whether such Collaboration Antigen
becomes a Discontinued Antigen or a Failed Antigen), Patent Rights
Controlled by ABX or its Affiliates that (a) contain a claim that covers,
and only to the extent they contain a claim that covers, Antigen-Specific
Technology, and (b) are first Controlled by ABX or its Affiliates after
the date of the applicable Antigen Notice under Section 2.2.1(a), 2.2.1(j) or 2.2.1(k), as applicable,
and prior to the date of the
designation of such Antigen as a Non-Selected Antigen, Failed Antigen or
Discontinued Antigen, other than ABX Prior Antigen-Specific Patent Rights.

 

1.22                           “Accelerated
ABX Antigen” shall have the meaning set forth in Section 2.2.1(j).

 

1.23                           “Acquisition”
shall mean a merger, acquisition (whether of all of the stock or all or
substantially all of the assets of a Person) or similar transaction by or with
ABX or AZ, other than a Change in Control of ABX or AZ.

 

1.24                           “Additional Development Program
Know-How Rights” shall mean Know-How Rights in Additional Development
Program Technology.

 

4

 

1.25                           “Additional Development Program
Patent Rights” shall mean Patent Rights that contain a claim that covers,
any only to the extent they contain a claim that covers, Additional Development
Program Technology.

 

1.26                           “Additional Development Program Technology”
shall mean, with respect to a Collaboration Antigen, collectively, any
and all Information and inventions, whether or not patented or patentable,
which are first conceived or generated by or on behalf of AZ (other than by ABX
under or in connection with the Research Programs) in the research or
development of any Antibody or Candidate Drug that binds to and is directed
against such Collaboration Antigen outside of the Research Programs and the
Development Programs prior to the date that AZ delivers an Election Notice for
such Collaboration Antigen or the date of the first designation of such
Collaboration Antigen as a Failed Antigen or Discontinued Antigen, whichever is
earliest; provided, however, that Additional Development Program
Technology shall exclude Development Program Technology, Process Technology and
XenoMouse Technology.

 

1.27                           “Additional
Technology” shall mean those Information and inventions that are Controlled
by a Party that are necessary or reasonably useful to research and develop
Antibodies and Antibody Equivalents that bind to and are directed against an
Antigen and are in addition to the XenoMouse Technology and the Antibody
Technology; provided, however, that Additional Technology shall
exclude Antibody Technology, Antigen-Specific Technology, Collaboration
Technology, Oncology Technology, Other Technology, Development Program
Technology, Additional Development Program Technology, Process Technology and
XenoMouse Technology.

 

1.28                           “Additional
Technology Know-How Rights” shall mean Know-How Rights in Additional Technology, to the extent the Parties
agree to include such Additional Technology in the applicable Research Program
Work Plan or Development Program Work Plan pursuant to Sections 2.2.2(b),
2.2.3(b) and 5.3.1, respectively.  For
the avoidance of doubt, Additional Technology Know-How Rights shall not include
Excluded Catalytic Antibody and Intrabody IP Rights.

 

1.29                           “Additional Technology Patent Rights”
shall mean Patent Rights that contain a claim that covers, and only to the
extent they contain a claim that covers, Additional Technology, to the extent
the Parties agree to include such Additional Technology in the applicable
Research Program Work Plan or Development Program Work Plan pursuant to
Sections 2.2.2(b), 2.2.3(b) and 5.3.1, respectively.  For the avoidance of doubt, Additional
Technology Patent Rights shall not include Excluded Catalytic Antibody and
Intrabody IP Rights.

 

1.30                           “Advanced
ABX Antigen” shall mean an Antigen listed on Exhibit C-1.

 

1.31                           “Affiliate”
shall mean, with respect to any Person, any other Person, that controls, is
controlled by or is under common control with such first Person.  For purposes of this definition, a Person
shall be in “control” of another Person if it owns or controls at least fifty
percent (50%) of the equity securities of such Person entitled to vote in
the election of directors (or, in the case of a Person that is not a
corporation, for the election of the corresponding

 

5

 

managing authority), or otherwise has the power to
control the management and policies of such Person.

 

1.32                           “ANDA ACT” shall mean the meaning set forth in
Section 12.2.2.

 

1.33                           “Antibody” shall mean the
composition of matter of a whole antibody, or any fragment thereof, that
(a) (i) is generated under this Agreement from the XenoMouse Animals,
(ii) binds to and is directed against an Antigen that is designated as a
Collaboration Antigen, and either (A) is generated by ABX from the
XenoMouse Animals under an internal program that is not for the benefit
(whether by license, option or similar right) of a Third Party, without
violating the terms of this Agreement, or (B) is generated from the
XenoMouse Animals and is otherwise Controlled by ABX as of the date of the
designation of such Antigen as a Collaboration Antigen, or (iii) binds to
and is directed against a Collaboration Antigen and is generated in connection
with (A) any work performed by or on behalf of ABX with respect to
the Advanced ABX Antigen or an Accelerated ABX Antigen, Expedited ABX Antigen,
Potential Co-Development Antigen or ABX Diagnostic Antigen prior to each such
Antigen being designated as a Collaboration Antigen or (B) any work
performed by or on behalf of ABX
pursuant to Section 4.15 with respect to a Failed Antigen prior to
such Antigen being re-designated as a Collaboration Antigen, or (b) is Derived from (i) any
antibody or fragment described in clause (a), (ii) the amino acid or
nucleic acid sequence or sequence information of any antibody or fragment
described in clause (a), or (iii) the structure or structural
information of any antibody or fragment described in clause (a).

 

1.34                           “Antibody Cells” shall mean all
cells that contain, express or secrete antibodies, or any fragment thereof, or
Genetic Materials that encode antibodies, or any fragment thereof.

 

1.35                           “Antibody
Equivalent” shall mean (a) a whole antibody (including murine,
chimeric, human, humanized, human sequence, recombinant, transgenic, grafted,
phage display derived and single chain antibodies and the like), any fragment
thereof, or any soluble receptor, fusion protein and the like; (b) Genetic Material that
encodes any of the foregoing; or (c) Antibody Cells that contain, express
or secrete any of the foregoing; provided, however, that
Antibody Equivalents shall exclude Antibodies. 
For the sake of clarity, an Antibody Equivalent may include an Intrabody
or a catalytic antibody, but shall not include any peptide [Confidential
Treatment Requested] that consists of less than [Confidential Treatment
Requested].

 

1.36                           “Antibody Technology” shall
mean, with respect to a Collaboration Antigen, all Information and inventions,
whether or not patented or patentable, which (a) relate to the
Exploitation of antibodies, and either (i) (A) are Reasonably
Necessary to be utilized by or on behalf of ABX under the Research Program for
such Collaboration Antigen, or (B) are utilized by or on behalf of ABX
under the Research Program or Development Program for such Collaboration
Antigen, or (b) relate to the Exploitation of antibodies generally and are
first conceived or generated under the Research Program for such Collaboration
Antigen; provided, however, that Antibody Technology shall
exclude Antigen-Specific Technology, Collaboration Technology,
Additional Development Program Technology, Development Program Technology,
Oncology Technology, Process Technology and XenoMouse Technology.

 

6

 

1.37                           “Antigen” shall mean a unique
molecular species (including any genetic polymorphisms) (a) that is
distinct from other molecules, (b) that is a cell surface or secreted
protein (including any glyco- or lipo-protein or other
post-translational modifications thereof), carbohydrate, compound or other
composition, and (c)(i) that
is known or reasonably believed to be selectively or differentially expressed
in human cancer cells, or (ii) as to which the administration or
other medical use of an antibody that binds to and is directed against such protein, carbohydrate, compound
or other composition is known or reasonably believed to be useful for the
diagnosis, prevention or treatment of cancer in humans.  For purposes of this
definition, an Antigen shall include any post-transcriptional splice variants
of such Antigen except where the unique portion of such splice variant allows
generation of antibodies that only bind to that unique portion of the splice
variants as described in Section 17.3.3.

 

1.38                           “Antigen Designation Term” shall
mean the period commencing on the Effective Date and, unless earlier terminated
pursuant to Section 2.2.4, 16.2, 16.3.1, 16.4.1 or 16.7, expiring on the
third (3rd) anniversary thereof, as may be extended by mutual agreement of the
Parties.

 

1.39                           “Antigen Notice” shall have the
meaning set forth in Section 2.2.1(a).

 

1.40                           “Antigen-Specific Technology”
shall mean, with respect to a Proposed Antigen or Collaboration Antigen
(irrespective of whether such Collaboration Antigen becomes a Discontinued
Antigen or a Failed Antigen), collectively, (a) such Antigen;
(b) Antibody Equivalents that bind to and are directed against such
Antigen; (c) amino acid sequences of such Antigen or Antibody Equivalents;
(d) Genetic Material that encodes such Antigen or Antibody Equivalents;
(e) Antibody Cells that contain, express or secrete such Antibody
Equivalents or Genetic Materials that encode such Antibody Equivalents;
(f) uses of the foregoing; and (g) Information specifically regarding
the foregoing; in each case (of clauses (a) through (g)) that are not first
conceived or generated under or in connection with the Research Program or
Development Program for such Antigen; provided, however, that
Antigen-Specific Technology shall exclude Collaboration Technology, Additional
Development Program Technology, Development Program Technology, Process
Technology, XenoMouse Technology and any Information from any freedom to operate
analyses conducted by AZ pursuant to Section 2.2.2(a).

 

1.41                           “Applicable Law” shall mean the applicable laws,
rules and regulations, including any rules, regulations, guidelines or other
requirements of the applicable supra-national, federal, national, regional,
state, provincial or local regulatory agencies, departments, bureaus,
commissions, councils or other government entities regulating or otherwise
exercising authority, that may be in effect from time to time.

 

1.42                           “Authorized Development Expenses”
shall have the meaning set forth in Section 9.2.

 

1.43                           “Authorized Research Expenses”
shall have the meaning set forth in Section 9.1.

 

7

 

1.44                           “AZ Antigen-Specific Know-How Rights”
shall mean the AZ Prior Antigen-Specific Know-How Rights and the AZ Subsequent
Antigen-Specific Know-How Rights.

 

1.45                           “AZ Antigen-Specific Patent Rights”
shall mean the AZ Prior Antigen-Specific Patent Rights and the AZ Subsequent
Antigen-Specific Patent Rights.

 

1.46                           “AZ
Indemnitees” shall have the meaning set forth in Section 15.2.

 

1.47                           “AZ In-License” shall mean a
license or other agreement under which AZ or its Affiliates (a) Controls
Licensed AZ IP Rights, or (b) owes obligations (including obligations to
pay royalties or other amounts) to a Third Party relating to Licensed AZ IP
Rights.

 

1.48                           “AZ In-License Information”
shall have the meaning set forth in Section 4.17.2.

 

1.49                           “AZ Information” shall have the
meaning set forth in Section 13.2.

 

1.50                           “AZ Oncology Know-How Rights”
shall mean Know-How Rights Controlled by AZ or its Affiliates in Oncology
Technology.

 

1.51                           “AZ Oncology Patent Rights”
shall mean Patent Rights Controlled by AZ or its Affiliates that contain a
claim that covers, and only to the extent that they contain a claim that
covers, Oncology Technology.

 

1.52                           “AZ Other Know-How Rights” shall
mean Know-How Rights Controlled by AZ or its Affiliates in Other Technology.

 

1.53                           “AZ Other Patent Rights” shall
mean Patent Rights Controlled by AZ or its Affiliates that contain a claim that
covers, and only to the extent that they contain a claim that covers, Other
Technology.

 

1.54                           “AZ Prior Antigen-Specific Know-How
Rights” shall mean, with respect to a Proposed Antigen or Collaboration
Antigen (irrespective of whether such Collaboration Antigen becomes a
Discontinued Antigen or a Failed Antigen), Know-How Rights Controlled by
AZ or its Affiliates in Antigen-Specific Technology, that (a) are
Controlled by AZ or its Affiliates prior to the date of the applicable Antigen
Notice under
Section 2.2.1(a), 2.2.1(j)
or 2.2.1(k), as applicable, (b) are first Controlled by AZ or its
Affiliates after such date pursuant to the merger, acquisition (whether of all
of the outstanding stock or all or substantially all of the assets of a Person)
or similar transaction by or with another Person, (c) are first conceived
or generated by or on behalf of AZ or its Affiliates under or in connection
with any program conducted outside this Agreement without violating the terms
of this Agreement, or (d) are first conceived or generated by or on behalf
of AZ in connection with any validation activities conducted by AZ with respect
to such Proposed Antigen pursuant to Section 2.2.2(a); provided, however,
that AZ Prior Antigen-Specific Know-How Rights shall not include any
Antigen-Specific Technology that is first Controlled by AZ or its Affiliates or
first conceived or generated by or on behalf of AZ, as applicable, after such
Antigen becomes a Non-Selected Antigen, a Discontinued Antigen or a Failed
Antigen.

 

8

 

1.55                           “AZ Prior Antigen-Specific Patent
Rights” shall mean, with respect to a Proposed Antigen or Collaboration
Antigen (irrespective of whether such Collaboration Antigen becomes a
Discontinued Antigen or a Failed Antigen), Patent Rights Controlled by
AZ or its Affiliates that (a) claim or cover, and only to the extent they
claim or cover, Antigen-Specific Technology, and (b)(i) are Controlled by
AZ or its Affiliates prior to the date of the applicable Antigen Notice under Section 2.2.1(a),
2.2.1(j) or 2.2.1(k), as
applicable, (ii) are first Controlled by AZ or its Affiliates after
such date pursuant to the merger, acquisition (whether of all of the
outstanding stock or all or substantially all of the assets of a Person) or
similar transaction by or with another Person, (iii) are first conceived
or generated by or on behalf of AZ or its Affiliates under or in connection
with any program conducted outside this Agreement without violating the terms
of this Agreement, or (iv) are first conceived or generated by or on
behalf of AZ in connection with any validation activities conducted by AZ with
respect to such Proposed Antigen pursuant to Section 2.2.2(a); provided,
however, that AZ Prior Antigen-Specific Patent Rights shall not include
any Antigen-Specific Technology that is first Controlled by AZ or its
Affiliates or first conceived or generated by or on behalf of AZ, as
applicable, after such Antigen becomes a Non-Selected Antigen, a Discontinued
Antigen or a Failed Antigen.

 

1.56                           “AZ Process Know-How Rights”
shall mean Know-How Rights Controlled by AZ or its Affiliates in AZ Process
Technology.

 

1.57                           “AZ Process Patent Rights” shall
mean Patent Rights Controlled by AZ or its Affiliates that contain a claim that
covers, and only to the extent they contain a claim that covers, AZ Process
Technology.

 

1.58                           “AZ Process Technology” shall
mean any and all Information and inventions relating to the preclinical,
clinical and commercial manufacture, testing and release of Antibodies,
Candidate Drugs, Licensed Products or Antibody Equivalents that are conceived
or generated by or on behalf of AZ or its Affiliates (other than by ABX) or are
otherwise owned or controlled by, AZ or its Affiliates as of the Effective Date
or at any time during the term of this Agreement, other than the ABX Process
Technology.

 

1.59                           “AZ Products” shall mean
Licensed Products and Non-Licensed Products.

 

1.60                           “AZ Subsequent Antigen-Specific
Know-How Rights” shall mean, with respect to a Proposed Antigen or
Collaboration Antigen (irrespective of whether such Collaboration Antigen
becomes a Discontinued Antigen or a Failed Antigen), Know-How Rights
Controlled by AZ or its Affiliates in Antigen-Specific Technology, that are
first Controlled by AZ or its Affiliates after the date of the applicable
Antigen Notice under Section 2.2.1(a), 2.2.1(j) or 2.2.1(k), as applicable, and prior to the date of the designation of such
Antigen as a Non-Selected Antigen, Failed Antigen or Discontinued Antigen,
other than AZ Prior Antigen-Specific Know-How Rights and AZ Prior
Antigen-Specific Patent Rights.

 

1.61                           “AZ Subsequent Antigen-Specific Patent
Rights” shall mean, with respect to a Proposed Antigen or Collaboration
Antigen (irrespective of whether such Collaboration Antigen becomes a
Discontinued Antigen or a Failed Antigen), Patent Rights Controlled by
AZ or its Affiliates that (a) contain a claim that covers, and only to the
extent they contain a claim that covers, Antigen-Specific Technology, and
(b) are first Controlled by AZ or its Affiliates

 

9

 

after the date of the applicable Antigen Notice under
Section 2.2.1(a), 2.2.1(j) or 2.2.1(k), as applicable, and prior to the date of the designation of such
Antigen as a Non-Selected Antigen, Failed Antigen or Discontinued Antigen,
other than AZ Prior Antigen-Specific Patent Rights.

 

1.62                           “BLA” shall mean a Biologics
License Application or New Drug Application, as defined in the U.S. Federal
Food, Drug, and Cosmetic Act, as amended, and the regulations promulgated
thereunder, and any corresponding supranational, foreign or domestic marketing
authorization application, registration or certification, necessary or useful
to market a Product in a country, but not including pricing and reimbursement
approvals.

 

1.63                           “cGMP” shall mean, with respect
to a Candidate Drug or a Licensed Product, current good manufacturing practices
applicable from time to time to the process development, manufacturing,
formulating, packaging, labeling, holding and quality control testing of such
Candidate Drug or Licensed Product, including Good Manufacturing Practices and General Biologics Products
Standards as promulgated under the United States Federal Food, Drug, and
Cosmetic Act, 21 U.S.C. § 301 et seq,
as amended, at 21 C.F.R. Parts 210, 211, 600 and 610, the Guide to GMP for
Medicinal Products as promulgated under European Directive 91/356/EEC, and
applicable International Conference on Harmonisation guidelines.

 

1.64                           “Cabilly Patent Rights” shall
mean, collectively, all Patent Rights, including United States Patent
No. 6,331,415, heretofore or hereafter issuing in any country from United
States Patent Application Serial No. 06/483,457 filed April 8, 1983, or
from any foreign counterpart patent application thereto; provided, however,
that the foregoing shall not include any Patent Rights to the extent they
contain claims that solely cover chimeric antibodies, including United States
Patent No. 4,816,567.

 

1.65                           “Candidate Drug” shall mean
(a) an Antibody that binds to and is directed against a Collaboration
Antigen that is designated as a “Candidate Drug” pursuant to Section 2.6
or any other Antibody that binds to and is directed against such Collaboration
Antigen, or (b) any Antibody Equivalent that binds to and is directed
against a Collaboration Antigen, and is Derived from (i) an Antibody
described in clause (a) of Section 1.33, (ii) the amino acid or
nucleic acid sequence or sequence information of any Antibody described in
clause (a) of Section 1.33, or (iii) the structure or structural
information of any Antibody described in clause (a) of Section 1.33.  For purposes of clarity, a Candidate
Drug shall not include any peptide [Confidential Treatment Requested] that
consists of less than [Confidential Treatment Requested] and a Candidate Drug does not cease to be a
Candidate Drug after it becomes a Licensed Product.

 

1.66                           “Candidate Drug Target Profile”
or “CDTP” shall mean, with respect to each Collaboration Antigen, the
criteria and information requirements approved by the Research Management
Committee pursuant to Section 2.2.2(b) and incorporated into the
applicable Research Program Work Plan for evaluating whether or not to
designate an Antibody that binds to and is directed against such Collaboration
Antigen as a Candidate Drug.

 

1.67                           “Cell: Cell Fusion” shall mean a
method for producing antibody cell lines described in the Cell: Cell Fusion
Patent Rights, and any inventions relating to the foregoing.

 

10

 

1.68                           “Cell: Cell Fusion Patent Rights”
shall mean, collectively, all Patent Rights, including United States
Patent Nos. 6,420,140, 6,207,418, and 5,916,771, heretofore or hereafter
issuing in any country from United States Patent Application Serial
Nos. 08/730,639, filed October 11, 1996 and 10/247,466, filed
September 18, 2002, or from any foreign counterpart patent application
thereto.

 

1.69                           “Chair”
shall have the meaning set forth in Section 3.7.

 

1.70                           “Change
in Control”, with respect to a Party, shall be deemed to have occurred if
any of the following occurs after the date hereof:

 

(a)                                  any
“person” or “group” (as such terms are defined below) is or becomes the
“beneficial owner” (as defined below), directly or indirectly, of shares of
capital stock or other interests (including partnership interests) of such
Party then outstanding and normally entitled (without regard to the occurrence
of any contingency) to vote in the election of the directors, managers or
similarly supervisory positions (“Voting Stock”) of such Party
representing fifty percent (50%) or more of the total voting power of all
outstanding classes of Voting Stock of such Party or has the power, directly or
indirectly, to elect a majority of the members of the Board of Directors; or

 

(b)                                 such
Party enters into a merger, consolidation or similar transaction with another
Person (whether or not such Party is the surviving entity) and as a result of
such merger, consolidation or similar transaction (i) the members of the
Board of Directors of such Party or the surviving Person immediately prior to
such transaction constitute less than a majority of the members of the Board of
Directors of such Party immediately following such transaction, or
(ii) the Persons that “beneficially owned” (as defined below), directly or
indirectly, the shares of Voting Stock of such Party immediately prior to such
transaction cease to “beneficially own” (as defined below), directly or
indirectly, shares of Voting Stock of such Party representing at least a
majority of the total voting power of all outstanding classes of Voting Stock
of the surviving Person in substantially the same proportions as their
ownership of Voting Stock of such Party immediately prior to such transaction;
or

 

(c)                                  such
Party sells or transfers to any Third Party(ies), in one or more related
transactions, properties or assets representing all or substantially all of such
Party’s consolidated total assets; or

 

(d)                                 the
holders of capital stock of such Party approve any plan or proposal for the
liquidation or dissolution of such Party (whether or not otherwise in
compliance with the terms hereof).

 

For the purpose of the
definition of “Change in Control”, (i) ”person” and “group” have the
meanings given such terms under Section 13(d) and 14(d) of the Exchange
Act or any successor provision to either of the foregoing, and the term “group”
includes any group acting for the purpose of acquiring, holding or disposing of
securities within the meaning of Rule 13d-5(b)(1) under the Exchange Act (or
any successor provision thereto), (ii) a “beneficial owner” shall be
determined in accordance with Rule 13d-3 under the Exchange Act, as in effect
on the Effective Date, except that the number of shares of Voting Stock of such
Party shall be deemed

 

11

 

to include, in addition
to all outstanding shares of Voting Stock of such Party, all shares of Voting
Stock not outstanding that are subject to options, warrants, rights to purchase
or conversion privileges exercisable within sixty (60) days of the date of
determination of a Change in Control (“Unissued Shares”) deemed to be
held by the “person” or “group” (as such terms are defined above) or other
Person with respect to which the Change in Control determination is being made
and all Unissued Shares deemed to be held by all other Persons, and
(iii) the terms “beneficially owned” and “beneficially own” shall have
meanings correlative to that of “beneficial owner.”

 

1.71                           “Claims” shall have the meaning
set forth in Section 15.1.

 

1.72                           “Co-Development Agreement” shall
have the meaning set forth in Section 8.1.

 

1.73                           “Co-Development Antigen” shall
mean a Potential Co-Development Antigen which is designated as a Co-Development
Antigen pursuant to Section 2.2.1(l).

 

1.74                           “Collaboration
Antigen” shall mean any Antigen listed as a “Collaboration Antigen” on
Exhibit B, as such Exhibit may be amended pursuant to
Sections 2.2.1(j), 2.2.1(l), 2.2.2(c), 2.2.2(d), 2.3.1, 2.3.3, 2.6.4,
2.6.5, 4.15, 5.9, 5.11 and 16.8.3(a).

 

1.75                           “Collaboration Know-How Rights”
shall mean Know-How Rights in Collaboration Technology.

 

1.76                           “Collaboration Patent Rights”
shall mean Patent Rights that contain a claim that covers, and only to
the extent they contain a claim that covers, Collaboration Technology.

 

1.77                           “Collaboration Technology” shall
mean, collectively, (a) Antibodies that bind to and are directed against a
Collaboration Antigen (irrespective of whether such Collaboration Antigen
becomes a Discontinued Antigen or a Failed Antigen); (b) Genetic Materials
that encode such Antibodies; (c) amino acid sequences of such Antibodies;
(d) Antibody Cells that contain, express or secrete such Antibodies or
such Genetic Materials or such amino acid sequences; (e) uses of the
foregoing or such Collaboration Antigen; (f) inventions that
uniquely relate to such Collaboration Antigen or one or more Antibodies or
Antibody Equivalents that bind to and are directed against such Collaboration
Antigen (including inventions specific to the function of such Collaboration
Antigen in a particular disease, state or condition, or the use of Antibodies
or Antibody Equivalents to diagnose, prevent or treat such disease, state or
condition, or the interaction of antibodies with such Collaboration Antigen, or
assays or other research or drug delivery tools specific to such Collaboration
Antigen); and
(g) Information specifically regarding the foregoing or such Collaboration
Antigen or Antibody Equivalents that bind to and are directed against such
Collaboration Antigen; in each case (of clauses (a) through (g)) which are
(x) Controlled by a Party as of the date that such Collaboration
Antigen is first designated as such (other than any Information from any validation activities conducted by either
Party or freedom to operate analyses conducted by AZ, in each case
pursuant to Section 2.2.2(a)) or (y) first conceived or generated under or in connection with the
Research Programs.

 

12

 

1.78                           “Commercial Field” shall mean
the diagnosis, prevention or treatment of any disease, state or condition in
humans or animals.

 

1.79                           “Commercially Reasonable Efforts”
shall mean:

 

(a)                                  with
respect to the research of an Antigen or Antibody, efforts and resources
commonly used in the research-based pharmaceutical industry or, solely with
respect to the performance of the Research Programs by ABX (but not its
activities with respect to the development, manufacture and commercialization
of Licensed Products) efforts and resources commonly used in the established
biotechnology industry;

 

(b)                                 with
respect to the development of an Antigen, Antibody or resulting Product,
efforts and resources commonly used in the research-based pharmaceutical
industry;

 

(c)                                  with
respect to the commercialization of a Licensed Product or any product with
respect to a Co-Development Antigen, efforts and resources commonly used in the
research-based pharmaceutical industry and, solely with respect to the
commercialization of ABX Products that bind to and are directed against a
Discontinued Antigen, efforts and resources commonly used in the established
biotechnology industry;

 

(d)                                 with
respect to the manufacture of an Antibody or a Licensed Product, efforts and
resources commonly used in the research-based pharmaceutical industry or,
solely with respect to ABX’s process development and manufacturing of Products,
efforts and resources commonly used in the contract manufacturing industry by
those contract manufacturing organizations that provide process development and
clinical and commercial scale cGMP manufacture of antibody therapeutics on a
commercial basis;

 

in each case for an antigen, antibody or product of
similar commercial potential at a similar stage in its lifecycle, taking into
consideration its safety and efficacy, its cost to develop, the competitiveness
of alternative products, the intellectual property landscape, the likelihood of
regulatory approval, its profitability and other relevant factors.  Commercially Reasonable Efforts shall be
determined on a market-by-market basis for each Antigen, Antibody and Licensed
Product.  For the avoidance of doubt,
the Parties acknowledge and agree that it is standard practice in the
research-based pharmaceutical industry and established biotechnology industry
for a company to prioritize the product opportunities available to it and to
allocate resources accordingly, provided that the foregoing shall not relieve a
Party of its obligations under the first sentence of this definition to
progress development and commercialization. 
For the further avoidance of doubt, the Parties acknowledge and agree
that the obligation to use “Commercially Reasonable Efforts” to commercialize a
Product applies to each of the Major Markets even if a Party does not have a
commercial presence in a Major Market, which obligation may be satisfied
through a sublicensee.

 

1.80                           “Committed
Antigen” shall mean an Antigen with respect to which, at the time
such Antigen is first identified by ABX as provided in Section 2.2.1(a) or
first proposed by AZ for consideration as a Proposed Antigen pursuant to
Section 2.2.1(a), whichever is earlier, (a) ABX has granted to
a Third Party under an Existing Collaboration, without breach of the

 

13

 

exclusivity provisions of Article 17, a license
or other right to antibodies thereto that would preclude ABX from granting AZ
an exclusive license to Exploit Antibodies that bind to and are directed
against such Antigen under this Agreement; (b) the terms and conditions of
any ABX In-License as in effect as of [Confidential Treatment Requested],
prohibit ABX from granting a license or other rights under Licensed ABX IP
Rights; or (c) in accordance with Section 17.3.6, ABX has granted a [Confidential
Treatment Requested] which, at the time of
granting such license, ABX reasonably believed was not [Confidential
Treatment Requested].

 

1.81                           “Competitive
Product” shall mean, with respect to an Antigen, if ABX or AZ undergoes a
Change in Control or an Acquisition, any Antibody Equivalent with respect to
such Antigen that is actively being researched, developed or commercialized by
the other party or parties to such Change in Control or Acquisition (together
with any follow on or replacement Antibody Equivalent), in either case as of
the applicable Trigger Date, provided that, with respect to ABX, with respect
to a Proposed Antigen, Prioritized Antigen or Collaboration Antigen, the
existence of such Competitive Product was disclosed by ABX to AZ pursuant to
Section 16.2.

 

1.82                           “Competitor” shall, from time to
time, mean any of the top twenty (20) pharmaceutical companies based on
IMS all class consolidation as set forth in the latest available data, plus [Confidential
Treatment Requested] and [Confidential
Treatment Requested] and their
successors.

 

1.83                           “Confidential Information” shall
mean, with respect to a Party, all Information (and all tangible and intangible
embodiments thereof), that is Controlled by such Party, and is disclosed by or
on behalf of such Party to the other Party either pursuant to the
Confidentiality Agreement, or in the course of performing this Agreement or a
Related Agreement.  For purposes of this Agreement,
notwithstanding the Party that disclosed such Information, (x) all ABX
Process Technology, Antibody Technology and XenoMouse Technology shall be
Confidential Information of ABX; (y) all AZ Process Technology, Additional
Development Program Technology and Development Program Technology shall be
Confidential Information of AZ, and (z) all Collaboration Technology,
Oncology Technology and Other Technology shall be Confidential Information of
AZ with respect to ABX and, subject to Section 13.2, Confidential
Information of ABX with respect to AZ.  Notwithstanding the foregoing,
Confidential Information of a Party shall not include information that, and
only to the extent, the Receiving Party can establish by written documentation
(a) has been generally known prior to disclosure of such information by
the Disclosing Party to the Receiving Party; (b) has become generally
known, without the fault of the Receiving Party, subsequent to disclosure of
such information by the Disclosing Party to the Receiving Party; (c) has
been duly received by the Receiving Party at any time from a source, other than
the Disclosing Party, rightfully having possession of and the right to disclose
such information free of confidentiality obligations; (d) has been otherwise
known by the Receiving Party free of confidentiality obligations prior to
disclosure of such information by the Disclosing Party to the Receiving Party;
or (e) has been independently developed by employees or others on behalf
of the Receiving Party without access to or use of such information disclosed
by the Disclosing Party to the Receiving Party (each, a “Confidentiality
Exception”).

 

14

 

1.84                           “Confidentiality Agreement”
shall mean the Confidential Disclosure Agreement effective as of March 14,
2001, as amended, between the Parties.

 

1.85                           “Contract Services Agreement” shall have the meaning set forth in
Section 5.2.1.

 

1.86                           “Control” shall mean, with respect to
any invention, item of Information, Patent Right or other intellectual property
right, possession of the right (and only to the extent of the right), whether
directly or indirectly, and whether by ownership, license or otherwise (but
excluding any rights granted under Article 4 and Sections 5.7.2, 7.9
and 7.12), to assign or grant a license, sublicense or other right to or under,
such invention, item of Information, Patent Right or other intellectual
property right as provided for herein without violating the terms of any
agreement or other arrangement with any Third Party.  For the avoidance of doubt, a Party shall not be deemed to
Control the intellectual property of the other Party by virtue of the grants
set forth in Article 4 and Sections 5.7.2, 7.9 and 7.12 for purposes
of this definition.

 

1.87                           “Core
Antibody Technology” shall mean such Antibody Technology Controlled by ABX
or its Affiliates that is Reasonably Necessary to complete the following
portions of a Research Program generally in accordance with the template
Research Program Work Plan attached hereto, that has as its goal the delivery
of Antibodies that meet the applicable CDTP criteria in accordance with
industry standards:  (a) the
immunization of XenoMouse Animals, (b) the generation of Antibodies from
such XenoMouse Animals, and (c) the initial characterization of such
Antibodies (consisting of binding such Antibodies to an antigen (by ELISA and
FACS), [Confidential Treatment Requested]; in each case as customarily
practiced by ABX, utilizing ABX standard techniques and materials (other than transfer
vectors proprietary from Third Parties) for hybridoma or XenoMax Technology
approaches.

 

1.88                           “Core
Patent Rights” shall mean Patent
Rights, Controlled by ABX or its Affiliates, to the extent they contain a claim
that covers Core Technology.

 

1.89                           “Core
Technology” shall mean XenoMouse
Technology (other than XenoMouse Methods), Core XenoMouse Technology and Core
Antibody Technology.

 

1.90                           “Core
XenoMouse Technology” shall mean XenoMouse Technology (other than XenoMouse
Animals) that is Reasonably Necessary to complete a Research Program generally
without regard to the specific antigen.

 

1.91                           “Derived”
shall mean directly (but not necessarily by means of a single step) and
substantially obtained, created, synthesized, derived, generated or selected.  For
the avoidance of doubt, an Antibody Equivalent will not be Derived from an
Antibody if (x) the composition of such Antibody, or any fragment thereof,
(y) the amino acid or nucleic acid sequence or sequence information of
such Antibody, or any fragment thereof, or (z) the structure or structural
information of such Antibody, or any fragment thereof, is not directly (but not
necessarily by means of a single step) and substantially used to obtain create,
synthesize, derive, generate or select such Antibody Equivalent.

 

1.92                           “Development Management Committee”
shall mean the joint development committee, comprising representatives of ABX
and AZ, described in Article 6.

 

15

 

1.93                           “Development Program” shall mean,
with respect to any one or more lead Research Antibody and each Candidate Drug
that binds to and is directed against a Collaboration Antigen, the regulatory
and clinical development activities that are to be performed by ABX in advance
of Phase II Completion for such Research Antibodies and Candidate Drug, which
may include, at AZ’s election, (a) the identification, validation and
development of one or more biomarkers associated with the (i) target
indication(s) against which such Research Antibodies or Candidate Drug are
directed or (ii) use of such Candidate Drug in the Commercial Field,
(b) the preliminary evaluation of various Research Antibodies or Candidate
Drugs, including their productivity and viability, to determine which Research
Antibodies or Candidate Drugs to introduce into production process development,
(c) the optimization of one or more such Antibodies or such Candidate
Drug, (d) toxicology, pre-clinical and other IND enabling studies for such Candidate Drug, and
(e) Phase I Clinical Trials and applicable Phase II Clinical
Trials for such Candidate Drug, all as described in Article 5 and as more
fully set forth in the applicable Development Program Work Plan.

 

1.94                           “Development
Program Know-How Rights” shall mean Know-How Rights in Development Program
Technology.

 

1.95                           “Development
Program Leader” shall have the meaning set forth in Section 5.12.

 

1.96                           “Development
Program Patent Rights” shall mean Patent Rights that contain a claim that
covers, and only to the extent they contain a claim that covers, Development
Program Technology.

 

1.97                           “Development Program Technology”
shall mean, collectively, any and all Information and inventions,
whether or not patented or patentable, which are first conceived or generated
under or in connection with the Development Programs; provided, however,
that Development Program Technology shall exclude XenoMouse Technology and
Process Technology.  For the avoidance
of doubt, Information and inventions first conceived or generated under a
Research Program Work Plan shall not be deemed to have been first conceived or
generated in connection with a Development Program.

 

1.98                           “Development Program Term” shall
mean, with respect to each Candidate Drug, the period described in
Section 5.14.

 

1.99                           “Development Program Work Plan”
shall mean, with respect to each Candidate Drug, the written development
plan(s) prepared by the Parties pursuant to Section 5.3, as amended and
approved by the Development Management Committee pursuant to Section 6.3
and written budget(s) for the activities set forth in such plan(s).  The Development Program Work Plan for each
Candidate Drug shall be attached sequentially (as Exhibit E-1, etc.) to
Exhibit E.

 

1.100                     “Disclosing
Party” shall have the meaning set forth in Section 13.1.

 

1.101                     “Discontinued
Antigen” shall mean a Collaboration Antigen that is designated as a
“Discontinued Antigen” pursuant to Section 2.6.5, 4.15, 5.9, 5.11 or
16.8.3(a).

 

16

 

1.102                     “Distributor” shall mean, as to
AZ or ABX (as applicable), any Third Party in any country, appointed by such Party to
distribute, market and sell an AZ Product or ABX Product (as applicable),
whether or not such Party also grants to such Third Party a sublicense with
respect to such Product in connection therewith (with or without packaging
rights), provided that such Third Party purchases its requirements of such
Products from such Party or its Affiliates, but does not otherwise make any
royalty or other payment, or give any other consideration, to such Party or its
Affiliates with respect to intellectual property rights controlled by such
Party or its Affiliates with respect to such Product.

 

1.103                     “DMF” shall mean any drug
master file filed with the FDA with respect to any Candidate Drug, and any
equivalent filing in other countries or regulatory jurisdictions.

 

1.104                     “Drug DMF” shall have the
meaning set forth in Section 7.12.

 

1.105                     “Effective Date” shall mean the
date on which the conditions precedent set forth in Section 20.15 have
been satisfied.

 

1.106                     “Election
Notice” shall have the meaning set forth in Section 5.9.

 

1.107                     “Excluded
Antigens” shall mean, collectively, the Committed Antigens, [Confidential
Treatment Requested.]

 

1.108                     “Excluded Catalytic Antibody and
Intrabody IP Rights”
shall mean those Patent Rights and Know-How Rights that are Controlled by ABX
pursuant to those agreements set forth on Exhibit F.

 

1.109                     “Exercise
Notice” shall have the meaning set forth in Section 2.6.5.

 

1.110                     “Existing
Collaboration” shall mean a written agreement between ABX and a Third Party
in effect as of [Confidential Treatment Requested] (as the same may be amended
or restated from time to time, subject to this Agreement),  pursuant to which ABX or its Affiliate
has granted as of the Effective Date, or has an obligation to grant during the
Antigen Designation Term, a license under ABX intellectual property rights to research, develop, manufacture or
commercialize Antibody Equivalents that bind to and are directed against an
Antigen selected by such Third Party, which license would preclude ABX from
granting a license to such Antigen to AZ under this Agreement.

 

1.111                     “Expedited
ABX Antigen” shall have the meaning set forth in Section 2.2.1(k).

 

1.112                     “Expert”
shall have the meaning set forth in Section 3.6.1.

 

1.113                     “Exploit”
or “Exploitation” shall mean to make, have made, import, use, sell,
offer for sale, or otherwise dispose of, including all discovery, research,
development, registration, modification, enhancement, improvement, manufacture,
storage, formulation, exportation, transportation, distribution, promotion and
marketing activities related thereto.

 

17

 

1.114                     “Failed
Antigen” shall mean a Collaboration Antigen that is designated as a “Failed
Antigen” pursuant to Section 2.3.1, 2.3.3 or 2.6.4.

 

1.115                     “FDA” shall mean the Food and
Drug Administration of the United States, or the successor thereto.

 

1.116                     “Financing
Documents” shall have the meaning set forth in Article 10.

 

1.117                     “First
Commercial Sale” shall mean, with respect to a Product, the first sale of
such Product by a Party, its (sub)licensees or its or their respective
Affiliates to customers who are not Affiliates or (sub)licensees (other than
Distributors) in a country after all applicable marketing and pricing approvals
(if applicable) have been granted by the applicable governing health authority
of such country.

 

1.118                     “Force Majeure” shall have the
meaning set forth in Section 20.8.1.

 

1.119                     “FTE”
shall mean a full time equivalent individual. 
FTE effort shall be charged by calculating the individual’s total hours
dedicated to the applicable activities under this Agreement as a percentage of
total hours worked multiplied by the relevant FTE Rate.  By way of example, and not in limitation of
the foregoing, (a) if a full-time, salaried employee spends 100% of his or
her effort hours on the applicable activities under this Agreement, the FTE
charge-out rate shall be calculated as the FTE Rate multiplied by 100%,
(b) if a full-time, salaried employee spends 50% of his or her effort
hours on the applicable activities under this Agreement, the FTE charge-out
rate shall be calculated as the FTE Rate multiplied by 50%, and (c) if a
seventy-five percent (75%)-time, salaried employee spends fifty percent (50%)
of his or her efforts on the applicable activities under this Agreement, the
FTE charge-out rate shall be calculated as the FTE Rate multiplied by
thirty-seven and one-half percent (37.5%) (50% x 75% = 37.5%).  No FTE credit shall be given for overtime
hours for salaried employees.

 

1.120                     “FTE Rate”
shall mean that rate agreed to by the Parties, from time to time, to reflect
the fully-burdened internal cost of an FTE, which rate, in any period, shall be
the same for employees of AZ and ABX, and in no event shall such rate exceed
[Confidential Treatment Requested] per FTE per year (increased as of each
anniversary of the Effective Date by an inflation factor equal to the
percentage increase during the immediately preceding calendar year in the San
Francisco – Oakland – San Jose Consumer Price Index – All Urban Consumer
(CPI-U), as published by the US Department of Labor, Bureau of Labor
Statistics), unless otherwise agreed by the Parties.  It is the intent of both Parties that the FTE Rate shall account
for: all employee-related compensation, including salaries, wages, bonuses,
benefits, profit sharing, stock option grants, and FICA costs, as well as
travel, meals and entertainment, training, recruiting, relocation, operating
supplies, postage, communications expense, professional dues, depreciation,
repairs and maintenance, rent and lease, utilities, taxes, facilities and space
costs, and computer service charges.

 

1.121                     “Genetic Material” shall mean a
nucleotide or nucleic acid sequence (whether coding or non-coding and whether
intact or a fragment).

 

1.122                     “Gene
Therapy” shall mean the treatment or prevention of a disease by means of Ex
Vivo Delivery or In Vivo Delivery (via viral or nonviral gene transfer systems)
of

 

18

 

compositions comprising either (a) Genetic
Material that encodes an antibody, wherein such antibody serves a material
function in the treatment or prevention of such disease; (b) Genetic
Material that encodes a moiety other than an antibody, wherein the moiety
serves a material function in the treatment or prevention of such disease and
wherein such composition incorporates an antibody (or Genetic Material that
encodes such antibody), which antibody is used as a targeting vehicle for the
composition; or (c) Genetic Material that encodes an antibody that serves
a material function in the treatment or prevention of such disease, wherein
such composition also incorporates an antibody (or Genetic Material that
encodes such antibody), which antibody is used as a targeting vehicle for the
composition.  For purposes of this
definition, (x) ”Ex Vivo Delivery” shall mean the introduction, outside of
the body of a human, of the compositions set forth in clauses (a), (b) or
(c) above into a cell, tissue, organoid, or organ which contains such
introduced compositions into the body of the same (autologous) or different
(allogenic) human, without limitation as to the formulation, anatomic site, or
route of administration or the use of encapsulation or other devices for such
administration, and (y) ”In Vivo Delivery” shall mean the introduction of
the compositions set forth in clauses (a), (b) or (c) above into an
individual, without limitation as to the formulation, anatomic site, or route
of administration or the use of encapsulation or other devices for such
administration.

 

1.123                     “GenPharm Cross License Agreement”
shall mean that certain Cross License Agreement entered into by ABX, Japan
Tobacco, Inc., Xenotech, L.P., Cell Genesys, Inc., and GenPharm International,
Inc., effective as of March 26, 1997, as the same may be amended from time
to time.

 

1.124                     “In-Licenses” shall mean,
collectively, the ABX In-Licenses and the AZ In-Licenses.

 

1.125                     “IND” shall mean an
Investigational New Drug application filed with the FDA, or any corresponding
filing or submission with any foreign regulatory authority, that is required to
commence human clinical testing of any Product.

 

1.126                     “Indemnitee” shall
have the meaning set forth in Section 15.3.1.

 

1.127                     “Indemnitor” shall have the meaning set forth in
Section 15.3.1.

 

1.128                     “Information” shall mean all technical, scientific, financial, business and other
information and data of any type or nature whatsoever (and all tangible (but
not a composition of matter) and intangible embodiments thereof), including
(a) information and data regarding inventions, technology, methods,
processes, practices, formulae, instructions, skills, techniques, procedures,
designs, assembly procedures, computer programs, apparatuses, specifications,
results, and materials; (b) information and data resulting from
high-throughput screening, gene expression, genomic, proteomic, other drug
discovery, biological, chemical, pharmacological, toxicological,
pharmaceutical, physical, analytical, pre-clinical, clinical and safety
testing; and (c) data and information regarding study designs and
protocols; assays and biological methodology; manufacturing and quality control
procedures, test procedures, synthesis, purification and isolation techniques,
in each case (i) whether or not confidential, proprietary, patented or
patentable, and (ii) whether in written, electronic or any other form now
known or hereafter developed, but excluding the Registrations.

 

19

 

1.129                     “Infringement
Suit” shall have the
meaning set forth in Section 12.4.

 

1.130                     “Initial
Closing Date” shall have the meaning set forth in the Purchase Agreement.

 

1.131                     “Integrated Collaboration Antigen”
shall have the meaning set forth in Section 2.2.1(f).

 

1.132                     “Integrated Proposed Antigen”
shall have the meaning set forth in Section 2.2.1(f).

 

1.133                     “Intrabody” shall mean any
antibody (or any binding fragment thereof) or Genetic Material encoding such
antibody or fragment, which antibody or fragment (a) is capable of
intracellular binding to a target that is present within a cell,
(b) contains an intracellular retention sequence or an intracellular
localization sequence, or (c) the therapeutic or diagnostic utility of
which is effected by binding to a target within a cell.

 

1.134                     “Key Positions” shall have the
meaning set forth in Section 2.9.

 

1.135                     “Know-How Rights” shall mean
trade secret or other know-how rights to the extent not generally known or
available.

 

1.136                     “Liabilities” shall have the
meaning set forth in Section 15.1.

 

1.137                     “Licensed ABX IP Rights” shall
mean, with respect to an Antigen, collectively, (a) ABX Antibody Know-How
Rights, ABX Antibody Patent Rights, ABX Oncology Know-How Rights, ABX Oncology
Patent Rights, ABX Other Know-How Rights, ABX Other Patent Rights, XenoMouse
Know-How Rights and XenoMouse Patent Rights; (b) the applicable ABX Prior
Antigen-Specific Know-How Rights, ABX Prior Antigen-Specific Patent Rights, ABX
Subsequent Antigen-Specific Know-How Rights and ABX Subsequent Antigen-Specific
Patent Rights; (c) ABX’s rights in the applicable Collaboration Know-How
Rights and Collaboration Patent Rights; and (d) ABX’s rights in the
Additional Technology Know-How Rights and Additional Technology Patent Rights; provided,
however, that Licensed ABX IP Rights shall not include the Excluded
Catalytic Antibody and Intrabody IP Rights. 
For the avoidance of doubt, Licensed ABX IP Rights with respect to a
Collaboration Antigen shall not include any Information or inventions first
conceived or generated by or on behalf of ABX or its Affiliates, or that come
into the possession or control of ABX or its Affiliates with respect to,
subject to Section 4.5.1, a Discontinued Antigen or, subject to
Section 4.15, a Failed Antigen after such Antigen ceases to be a
Collaboration Antigen.

 

1.138                     “Licensed AZ IP Rights” shall
mean, with respect to an Antigen, collectively, (a) AZ Oncology Know-How
Rights, AZ Oncology Patent Rights, AZ Other Know-How Rights and AZ Other Patent
Rights; (b) the applicable AZ Prior Antigen-Specific Know-How Rights, AZ
Prior Antigen-Specific Patent Rights, AZ Subsequent Antigen-Specific Know-How
Rights, AZ Subsequent Antigen-Specific Patent Rights, Additional Development
Program Know-How Rights, Additional Development Program Patent Rights,
Development Program Know-How Rights and Development Program Patent Rights;
(c) AZ’s rights in the applicable Collaboration Know-How Rights and
Collaboration Patent Rights; and (d) AZ’s rights in the

 

20

 

Additional Technology
Know-How Rights and Additional Technology Patent Rights.  For the avoidance of doubt, Licensed AZ IP
Rights with respect to a Collaboration Antigen shall not include any
Information or inventions first conceived or generated by or on behalf of AZ or
its Affiliates, or that come into the possession or control of AZ or its
Affiliates with respect to a Discontinued Antigen or Failed Antigen after such
Antigen ceases to be a Collaboration Antigen.

 

1.139                     “Licensed IP Rights” shall mean,
collectively, the Licensed ABX IP Rights and the Licensed AZ IP Rights.

 

1.140                     “Licensed Product” shall mean,
with respect to a Collaboration Antigen (other than a Discontinued Antigen
(unless ABX has failed to deliver an Exercise Notice therefor) or a Failed
Antigen) for which AZ has provided an Election Notice, any form or dosage of
pharmaceutical composition, preparation, therapy or diagnostic tool in finished
form labeled and packaged for sale by prescription, over-the-counter or any
other method for use in the Commercial Field that contains a Candidate Drug
that binds to and is directed against such Collaboration Antigen.  For the avoidance of doubt, a
Licensed Product may also contain, in addition to a Candidate Drug, any radioisotope,
toxin or other composition of matter.

 

1.141                     “Major Market” shall mean
Canada, France, Germany, Italy, Japan, the United Kingdom and the United
States.

 

1.142                     “Manufacturing and Supply Agreement”
shall mean that certain Manufacturing and Supply Agreement entered into between
the Parties in accordance with Section 7.1.

 

1.143                     “Manufacturing and Supply Committee” shall mean the joint
manufacturing and supply committee, comprising representatives of ABX and AZ,
described in Section 7.7.

 

1.144                     “Manufacturing Data” shall have the meaning set forth in Section 7.8.

 

1.145                     “Material Transfer Agreement” shall mean that certain material
transfer agreement attached hereto as Exhibit P.

 

1.146                     “Multi-Antigen Collaboration Antigen” shall have the meaning set forth
in Section 2.2.1(f).

 

1.147                     “Multi-Antigen Proposed Antigen” shall have the meaning set forth
in Section 2.2.1(f).

 

1.148                     “Net Sales” shall mean, with respect to each
Product, the gross amount invoiced for such Product by a Party, its Affiliates
and, subject to Section 9.6, sublicensees (other than Distributors) to
Third Parties (and to Distributors) after deduction of the following amounts
actually paid or accrued: (a) normal and customary trade, quantity or
prompt settlement discounts (including chargebacks and allowances) actually
allowed; (b) normal and customary amounts repaid or credited by reason of
rejection, returns or recalls of goods, rebates or bona fide price reductions
determined by such Party, its Affiliate or sublicensee (as applicable) in good
faith; (c) rebates and similar payments made with respect to sales paid
for by any governmental

 

21

 

or regulatory
authority such as, by way of illustration and not in limitation of the Parties’
rights hereunder, Federal or state Medicaid, Medicare or similar state program
in the United States or equivalent governmental program in any other country;
(d) [Confidential Treatment Requested] of the gross invoiced amount as an allowance
for transportation costs, distribution expenses, special packaging and related
insurance charges in transporting such Product in final form to such customers;
(e) excise taxes, selling taxes (including Value Added Tax), other
consumption taxes and customs duty imposed on the sale, importation, use or
distribution of such Product; and (f) customs duties, surcharges
and other governmental charges incurred in exporting or importing such Product
in final form to such customers].

 

In the event that a
Product is sold in any country in the form of a combination product containing
one or more therapeutically active ingredients in addition to the Candidate
Drug (such as, by way of example, and not in limitation of the rights and
obligations of the Parties hereunder, another antibody or a chemical entity),
but excluding any toxin or radioisotope conjugate, Net Sales of such
combination product will be adjusted by multiplying actual Net Sales of such
combination product in such country calculated pursuant to the first paragraph
of this Section by the fraction A/(A+B), where A is the [Confidential
Treatment Requested], if sold separately in such country, and B is the
[Confidential Treatment Requested], if sold separately in such country.  If, in a specific country, the other active
ingredients in the combination product are not sold separately in such country,
Net Sales shall be adjusted by multiplying actual Net Sales of such combination
product calculated pursuant to the first paragraph of this Section by the
fraction A/C, where A is the [Confidential Treatment Requested] and C is the
[Confidential Treatment Requested].  If,
in a specific country, a Product containing such Candidate Drug is not sold
separately, then for purposes of this Section, the Parties shall apportion the
market price for such Product in good faith based upon the relative value of
the various active ingredients included in such Product.  If, in a specific country, the foregoing
calculations do not fairly represent the value of the various active
ingredients included in a Product, the allocation of Net Sales for such Product
shall be negotiated by the Parties in good faith.

 

1.149                     “Non-Antibody
Product” shall mean any Non-Licensed Product with respect to a
Collaboration Antigen, a Discontinued Antigen or a Failed Antigen that does not
contain an Antibody or Antibody Equivalent that binds to and is directed
against such Antigen.

 

1.150                     “Non-Licensed Product” shall
mean any product with respect to a Collaboration Antigen (other than a Failed
Antigen or Discontinued Antigen) that does not contain a Candidate Drug or any
product with respect to a Failed Antigen or, subject to Section 4.5.1(e),
a Discontinued Antigen.

 

1.151                     “Non-Performing
Party” shall have the meaning set forth in Section 2.3.7.

 

1.152                     “Non-Selected
Antigen” shall mean (a) a Proposed Antigen that is rejected by the
Target Review Committee during the Antigen Designation Term or by the Research
Management Committee or AZ pursuant to Section 2.2.2(c) or
Section 2.2.2(d) or, with respect to a Proposed Antigen that is the
Advanced ABX Antigen or an Accelerated ABX Antigen, Section 2.2.1(j),
(b) subject to Section 2.2.4, a Proposed Antigen that has not been
designated a Prioritized Antigen or Collaboration Antigen as of the expiration
or earlier termination of the Antigen Designation Term, (c) a Potential
Co-Development Antigen that is rejected by AZ or is

 

22

 

not designated as a Collaboration Antigen or a
Co-Development Antigen within the applicable time periods pursuant to
Section 2.2.1(l), (d) a Proposed Antigen that is replaced by AZ in
order to substitute another Antigen as a Proposed Antigen in its place pursuant
to Section 2.2.1(o),  (e) a
Proposed Antigen that is withdrawn by AZ pursuant to Section 2.2.1(e) or 4.17.2,
or (f) subject to Section 2.2.1(e), an Antigen that AZ fails to timely
designate as a Proposed Antigen within the applicable time period pursuant to
Section 2.2.1(e).

 

1.153                     “Notice to Abandon” shall have
the meaning set forth in Section 5.11.

 

1.154                     “Oncology Know-How Rights” shall
mean, collectively, ABX Oncology Know-How Rights and AZ Oncology Know-How
Rights.

 

1.155                     “Oncology Patent Rights” shall
mean, collectively, ABX Oncology Patent Rights and AZ Oncology Patent Rights.

 

1.156                     “Oncology Technology” shall mean
all Information and inventions, whether or not patented or patentable, which
(a) relate to the diagnosis, prevention or treatment of cancer in humans
(including by use of antibodies), and (b) are first conceived or generated
under or in connection with the Research Programs; provided, however,
that Oncology Technology shall exclude Collaboration Technology,
Development Program Technology, Additional Development Program Technology,
Process Technology and XenoMouse Technology.

 

1.157                     “Other Know-How Rights” shall
mean, collectively, ABX Other Know-How Rights and AZ Other Know-How Rights.

 

1.158                     “Other Patent Rights” shall
mean, collectively, ABX Other Patent Rights and AZ Other Patent Rights.

 

1.159                     “Other Technology” shall mean
all Information and inventions, whether or not patented or patentable,
that are conceived or generated under the Research Programs; provided, however,
that Other Technology shall exclude Antibody Technology, Antigen-Specific
Technology, Collaboration Technology, Oncology Technology, Additional
Development Program Technology, Development Program Technology, Process
Technology and XenoMouse Technology.

 

1.160                     “Partially Committed Antigen” shall mean an Antigen with respect
to which, at the time such Antigen is first identified by ABX as provided in
Section 2.2.1(a) or first proposed by AZ for consideration as a Proposed
Antigen pursuant to Section 2.2.1(a), whichever is earlier, (a) ABX
has granted to a Third Party under an Existing Collaboration, without
breach of the exclusivity provisions of Article 17, a non-exclusive license or other non-exclusive
right to Exploit Antibody Equivalents that bind to and are directed against
such Antigen that would not preclude ABX from granting to AZ the conditional
right to obtain an exclusive license under this Agreement with respect to such
Antigen, and (b) in accordance with [Confidential Treatment
Requested] a Third Party (other than under an Existing Collaboration) a non-exclusive license or other
non-exclusive right to Exploit Antibody
Equivalents that bind to and are directed against an antigen [Confidential
Treatment Requested] even though such [Confidential
Treatment

 

23

 

Requested], that would not preclude ABX from
granting to AZ the conditional right to obtain an exclusive license under this
Agreement with respect to such Antigen.

 

1.161                     “Party”
shall mean either AZ or ABX and “Parties” shall mean both AZ and ABX.

 

1.162                     “Patent Rights” shall mean (a) all patents and patent applications, including
provisional patent applications, (b) all national, regional and
international patent applications filed either from such patent applications or
provisional applications or from an application claiming priority from either
of these, including divisionals, continuations, continuations-in-part,
provisionals, converted provisionals and continued prosecution applications,
(c) any and all patents that have issued or in the future issue from the
foregoing patent applications, including utility models, petty patents and
design patents and certificates of invention, (d) any and all extensions
or restorations by existing or future extension or restoration mechanisms,
including revalidations, reissues, re-examinations and extensions (including any
supplementary protection certificates and the like) of the foregoing patents or
patent applications (described in clauses (a), (b) and (c)), and
(e) any similar rights, including so-called patent pipeline protection, or
any importation, revalidation, confirmation or introduction patent or
registration patent or patent of additions to any such foregoing patent
applications and patents.

 

1.163                     “Payee”
shall have the meaning set
forth in Section 9.9.

 

1.164                     “Payor”
shall have the meaning set
forth in Section 9.9.

 

1.165                     “Performing
Party” shall have the meaning set forth in Section 2.3.7.

 

1.166                     “Person”
shall mean an individual, sole proprietorship, partnership, limited
partnership, limited liability partnership, corporation, limited liability
company, business trust, joint stock company, trust, unincorporated
association, joint venture or other similar entity or organization, including a
government or political subdivision, department or agency of a government, or
an academic or research institution.

 

1.167                     “Phase I Clinical Trial” shall
mean a human clinical trial in any country that is intended to initially
evaluate the safety or pharmacological effect of a Product in subjects or that
would otherwise satisfy requirements of 21 C.F.R. 312.21(a), or its foreign equivalent.

 

1.168                     “Phase II Clinical Trial” shall
mean a human clinical trial in any country that is intended to initially
evaluate the effectiveness of a Product for a particular indication or
indications in patients with the disease or indication under study or that
would otherwise satisfy requirements of 21 C.F.R. 312.21(b), or its foreign
equivalent.

 

1.169                     Phase II Completion” shall mean the delivery by ABX
to AZ of a complete data package from a Phase II Clinical Trial for a Candidate
Drug that enrolled at least forty (40) patients.

 

1.170                     “Phase III Clinical Trial” shall mean a pivotal human clinical
trial, the principal purpose of which is to establish safety and efficacy in
patients with the disease target being studied as required in 21 C.F.R. 312, or
similar clinical studies prescribed by the

 

24

 

regulatory
authorities in a country other than the United States whether or not such study
is a traditional Phase III study.

 

1.171                     “Potential
Co-Development Antigen” shall have the meaning set forth in
Section 2.2.1(l).

 

1.172                     “Pre-Existing Non-Antibody Program”
shall mean a program to research, develop or commercialize products with
respect to an Antigen (other than Antibody Equivalents) that was being actively
and materially conducted by a Person that undergoes a Change in Control or
Acquisition by or with ABX or AZ, as applicable, as of the applicable Trigger
Date.

 

1.173                     “Prioritized Antigen” shall mean
a Proposed Antigen designated as such pursuant to Section 2.2.1(j),
2.2.1(k), 2.2.1(n) or 2.2.2(a), and listed on Exhibit Q, as such Exhibit
may be amended from time to time.

 

1.174                     “Process Development and
Manufacturing Plan” shall have the meaning set forth in Section 7.2.5.

 

1.175                     “Process Development Program”
shall mean the program for the development of one or more processes, and
associated technology, for the manufacture (including scale-up) of Research
Antibodies and Candidate Drugs, including processes and technology for the
production, purification, evaluation, characterization, stability assessment,
vialing and release of a Research Antibody or a Candidate Drug, as applicable, and the performance of other related
activities in support of the Registrations for a Candidate Drug or Licensed
Product, which are to be conducted pursuant to the Process Science/Clinical
Manufacture Agreement.

 

1.176                     “Process Science/Clinical
Manufacture Agreement” shall mean, with respect to a Candidate Drug, that
certain Process Science/Clinical Manufacture Agreement entered into between the
Parties in accordance with Section 7.1 for such Candidate Drug.

 

1.177                     “Process Technology” shall mean
the ABX Process Technology and the AZ Process Technology.

 

1.178                     “Product” shall mean an AZ
Product or ABX Product.

 

1.179                     “Program Budget” shall mean the
budget(s) prepared by ABX and accepted by AZ pursuant to Section 5.3 or
7.13.1, as amended by the mutual agreement of the Parties, for the activities
to be performed by or on behalf of ABX or its Affiliates under a Development
Program or Process Development Program, as applicable, which sets forth the
projected costs and expenses of such activities in accordance with
Section 5.3 or 7.13.1, as applicable, and shall include a detailed cost
proposal in a mutually acceptable format.

 

1.180                     “Project Leader” shall have the
meaning as set forth in Section 2.8.

 

1.181                     “Proposed Antigens” shall mean
all Antigens listed on Exhibit A-1 or Exhibit A-2, as such Exhibits
may be amended pursuant to Sections 2.2.1, 2.2.2(c), 2.2.2(d) or 4.17.2.

 

25

 

1.182                     “Proprietary
ABX Antigen” shall mean a Collaboration Antigen that meets one of the
following two (2) criteria: (a) the ABX Prior Antigen-Specific Patent
Rights Controlled by ABX or its Affiliates [Confidential Treatment Requested]
that specifically claims (i) [Confidential Treatment Requested] or (ii) [Confidential
Treatment Requested]; provided,
however, that the foregoing shall not include any such Valid Claim that
is Controlled by ABX or its Affiliates pursuant to an ABX Antigen In-License
pursuant to which ABX or its Affiliates or sublicensees (including AZ) owes
royalties calculated [Confidential Treatment Requested]; or (b) ABX owes royalties
pursuant to an ABX Antigen In-License listed on Exhibit K-2 calculated [Confidential
Treatment Requested].

 

1.183                     “Purchase Agreement” shall have
the meaning set forth in the Recitals.

 

1.184                     “Pursuing Party” shall have the
meaning set forth in Section 4.12.2(a).

 

1.185                     “Reasonably Necessary” shall
mean [Confidential Treatment Requested].

 

1.186                     “Receiving Party” shall have the
meaning set forth in Section 13.1.

 

1.187                     “Registrations” shall mean, with
respect to a Product in a country, all applicable regulatory approvals,
including BLAs (and pricing and reimbursement approvals if applicable), by the
applicable governmental or regulatory authority in such country to import,
make, use or sell such Product in such country for use in the Commercial Field,
together with all applications and submissions therefor.

 

1.188                     “Related Agreements” shall mean
the Financing Documents, the Process Science/Clinical Manufacture Agreement,
the Manufacturing and Supply Agreement, the Contract Services Agreement,
the Co-Development Agreement and the technology transfer agreement, quality assurance
agreement and other related agreements entered into by the Parties pursuant to
and in accordance with this Agreement.

 

1.189                     “Research
Antibody” shall have the meaning set forth in Section 2.3.2.

 

1.190                     “Research Management Committee”
shall mean the joint research committee comprising representatives of ABX and
AZ, as described in Article 3.

 

1.191                     “Research Program” shall mean,
with respect to each Collaboration Antigen, the research and preclinical
program described in the applicable Research Program Work Plan to be performed
by the Parties in accordance with Section 2.3.

 

1.192                     “Research Program Term” shall
mean the period described in Section 2.7.

 

1.193                     “Research Program Work Plan”
shall mean, with respect to each Collaboration Antigen, the written research
plan prepared by ABX, in consultation with AZ, and approved by the Research
Management Committee pursuant to Section 2.2.2(b), as the same may be
amended pursuant to Section 2.2.3 or 2.6.2.  The Research Program Work Plan for each Collaboration Antigen
shall be attached sequentially (as Exhibit D-1, etc.) to Exhibit D.

 

26

 

1.194                     “Royalty Term” shall mean, with
respect to each Product with respect to an Antigen in each country, the period
equal to the longer of (a) if, at the time of the First Commercial Sale of
such Product in such country, the manufacture, use, offer for sale, sale or
import of such Product in such country would infringe a Valid Claim [Confidential
Treatment Requested]; and (b)(i) in
the case of an AZ Product (other than a Non-Antibody Product) that binds to and
is directed against a Collaboration Antigen, [Confidential Treatment
Requested] from the date of the
First Commercial Sale of the first such AZ Product that binds to and is
directed against such Antigen in such country, (ii) in the case of a
Non-Antibody Product with respect to a Collaboration Antigen, [Confidential
Treatment Requested] from the
date of the First Commercial Sale of the first Non-Antibody Product with respect
to such Collaboration Antigen in such country, and (iii) in the case of an
ABX Product that binds to and is directed against a Discontinued Antigen, [Confidential
Treatment Requested] from the
date of the First Commercial Sale of the first such ABX Product that binds to
and is directed against such Discontinued Antigen in such country].

 

1.195                     “Supplementary XenoMouse Agreement”
shall mean the agreement attached hereto as Exhibit R.

 

1.196                     “Target Review Committee” shall
have the meaning set forth in Section 3.7.

 

1.197                     “Target Sourcing Group” shall
have the meaning set forth in Section 2.1.

 

1.198                     “Third Party” shall mean any
Person other than ABX, AZ or their respective Affiliates.

 

1.199                     “Third Party Royalties” shall
mean, with respect to a Product in a country, the royalty payments under any
In-License pursuant to which a Party Controls (a) in the case of
ABX, (i) ABX Antibody Know-How Rights, ABX Antibody Patent Rights, ABX
Antigen-Specific Know-How Rights and ABX Antigen-Specific Patent Rights in each case applicable to such
Product, (ii) Know-How Rights and Patent Rights Controlled by ABX
in Additional Technology that is used
in the Research Program Work Plan or Development Program Work Plan with respect
to such Product pursuant to Sections 2.2.2(b), 2.2.3(b) and 5.3.1, and
(iii) ABX Prior Antigen-Specific Know-How Rights and ABX Prior
Antigen-Specific Patent Rights disclosed under Section 4.11 and applicable
to a sublicense thereunder, and (b) in the case of AZ, (i) AZ Antigen-Specific
Know-How Rights and AZ Antigen-Specific Patent Rights in each case applicable to such Product, and
(ii) Know-How Rights and Patent Rights Controlled by AZ in Additional
Technology that is used in
the Research Program Work Plan or Development Program Work Plan with respect to
such Product pursuant to Sections 2.2.2(b), 2.2.3(b) and 5.3.1, and in
each case which are calculated on
the basis of sales of such Product in such country, provided that such royalty
payments (i) are actually paid to a Third Party in consideration for
licenses granted by such Third Party under Patent Rights or other intellectual
property rights, and (ii) were [Confidential Treatment Requested], the second sentence of [Confidential
Treatment Requested] or to [Confidential
Treatment Requested] pursuant to
[Confidential Treatment Requested] and were not rejected by such Party; provided, however,
Third Party Royalties shall not include any royalty or other payments pursuant
to (x) ABX In-Licenses pursuant to which ABX Controls XenoMouse Patent
Rights that contain claims that cover, or XenoMouse Know-

 

27

 

How Rights in,
XenoMouse Technology (other than XenoMouse Methods) or Core XenoMouse
Technology, (y) ABX In-Licenses pursuant to which ABX Controls ABX Antibody
Patent Rights that contain claims that cover, or ABX Antibody Know-How Rights
in, Core Antibody Technology, or (z) except as otherwise expressly set
forth in the last sentence of [Confidential Treatment Requested], those certain ABX In-Licenses that
are listed on [Confidential Treatment Requested].

 

1.200                     “Trigger
Date” shall mean, with respect to a Change in Control or Acquisition by or
with a Party, the date that the definitive agreement with respect to such
Change in Control or Acquisition, as applicable, was first signed or the
effective date of such definitive agreement, whichever is earlier.

 

1.201                     “Valid Claim” shall mean, with
respect to a Product in a country, either (a) a claim of an issued and
unexpired Patent Right included within the Licensed ABX IP Rights or
Collaboration Patent Rights (in the case of an AZ Product) or Licensed AZ IP
Rights or Collaboration Patent Rights (in the case of an ABX Product) that
covers such Product as a composition of matter in such country or the use of such
Product for an indication included in the Registrations for such Product in
such country, which has not been held permanently revoked, unenforceable or
invalid by a decision of a court or other governmental agency of competent
jurisdiction, unappealable or unappealed within the time allowed for appeal,
and which has not been admitted to be invalid or unenforceable through reissue
or disclaimer or otherwise; or (b) a claim of a pending patent application
included within the Licensed ABX IP Rights or Collaboration Patent Rights (in
the case of an AZ Product) or Licensed AZ IP Rights or Collaboration Patent
Rights (in the case of an ABX Product) that covers such Product as a
composition of matter in such country or the use of such Product for an
indication included in the Registrations for such Product in such country,
which claim was filed in good faith and has not been abandoned or finally
disallowed without the possibility of appeal or refiling of such application, provided that such claim has not
been pending for more than [Confidential Treatment Requested] years.

 

1.202                     “XenoMax Technology” shall mean (a) all
technology (including methods, protocols, standard operating procedures and
techniques) utilized by ABX for the identification, generation and isolation of
antibodies from XenoMouse Animals through the use of the technology known as
the Selected Lymphocyte Antibody Method that is described in U.S. Patent
No. 5,627,052 (and all improvements thereto), and (b) all Information
regarding the foregoing (and all tangible and intangible embodiments thereof).

 

1.203                     “XenoMouse Animals” shall mean
those mice that are transgenic for the human heavy chain variable Ig loci that
is described in Mendez, et al., Nature Genetics 15: 146-156 (1997), and
any and all improved strains of such mice, in each case that are used by ABX or
its Affiliates in their business to generate antibodies for use in the
Commercial Field; provided, however, that XenoMouse Animals
exclude [Confidential Treatment Requested].

 

1.204                     “XenoMouse Lambda Animals” [Confidential
Treatment Requested].

 

1.205                     “XenoMouse Methods” shall mean,
collectively, all methods and techniques (including protocols and standard
operating procedures) used in connection with

 

28

 

immunizing XenoMouse
Animals with an antigen (including Antigens) or Deriving therefrom antibodies
(including Antibodies), Genetic Materials that encode such antibodies, or
Antibody Cells that contain, express or secrete such antibodies or such Genetic
Materials, and all uses of such methods or techniques, that (a) are
Controlled by ABX or its Affiliates, or (b) are first conceived or
generated under the Research Programs. 
Without limiting the generality of the foregoing, XenoMouse Methods
includes XenoMax Technology.

 

1.206                     “XenoMouse Know-How Rights”
shall mean Know-How Rights in the
XenoMouse Technology described in clauses (a) and (b) of
Section 1.209 or clause (d) of Section 1.209 to the extent it
relates to clauses (a) and (b) of Section 1.209.

 

1.207                     “XenoMouse Patent Rights” shall
mean Patent Rights that claim or cover, and only to the extent that they claim
or cover, the XenoMouse Technology described in clauses (a) and (b) of
Section 1.209 or clause (d) of Section 1.209 to the extent it relates
to clauses (a) and (b) of Section 1.209.

 

1.208                     “XenoMouse Supported Patent Rights”
shall mean the claims of any Patent Rights (other than Collaboration Patent
Rights, Oncology Patent Rights or AZ Other Patent Rights) of AZ that
(a) are supported by (but solely to the extent that the supporting
Collaboration Technology is expressly included in support of a claim in the
specifications or the file wrapper of such Patent Rights), or claim inventions
Derived from, that portion of Collaboration Technology that could not have been
conceived or generated without using XenoMouse Animals or another rodent strain
that contains human antibody genes and is able to produce human antibodies, and
(b) cover (i) any rodent strain that contains human antibody genes
and is able to produce fully human antibodies or any part of such rodent
strain, or (ii) the use of any such rodent strain or part thereof
(excluding any specific antibodies generated thereby).

 

1.209                     “XenoMouse Technology” shall
mean, collectively, (a) all XenoMouse Animals (including those immunized
with Antigens) and all uses thereof; (b) all XenoMouse Methods and all
uses thereof; (c) all materials, including fragments, derivatives,
progeny, modifications or improvements to the XenoMouse Animals or XenoMouse
Methods, Derived from the foregoing and all uses thereof; and (d) all
Information specifically regarding the foregoing (and all tangible and
intangible embodiments thereof) that is disclosed by ABX to AZ or Derived from
the use of the XenoMouse Animals or XenoMouse Methods under this Agreement; provided,
however, that XenoMouse Technology shall not include any Collaboration
Technology, Development Program Technology, Additional Development Program
Technology or AZ Process Technology.

 

2.                                       RESEARCH PROGRAM

 

2.1                                 General. 
As more fully described in this Article 2, during the
Antigen Designation Term, (a) the Parties shall work together, through a
target sourcing group established by AZ (the “Target Sourcing Group”),
to review and propose Antigens as Proposed Antigens; (b) from the Proposed
Antigens, the Target Review Committee shall select certain Proposed Antigens as
Prioritized Antigens, for which the CDTP and Research Program Work Plan will be
prepared pursuant to Section 2.2.2(b); (c) the Research Management
Committee

 

29

 

thereafter shall designate Collaboration Antigens from
the Prioritized Antigens; and (d) AZ shall have the limited right to
designate the Advanced ABX Antigen, Accelerated ABX Antigens, Expedited ABX
Antigens and Potential Co-Development Antigens as Collaboration Antigens.  As more fully described in this
Article 2,
the Parties shall use Commercially Reasonable Efforts to conduct a Research
Program to generate, research and conduct preclinical development of Antibodies
that bind to and are directed against each Collaboration Antigen.  Any disputes in the Target Sourcing Group
shall be resolved by AZ (subject to the right of ABX to unilaterally designate
Proposed Antigens rejected by the Target Sourcing Group under
Section 2.2.1(c)).

 

2.2                                 Collaboration Antigen Designation.

 

2.2.1                        Proposed Antigens. 
The initial Proposed Antigens designated by ABX, as of the Effective
Date, for selection by the Research Management Committee as Collaboration Antigens
are set forth in Exhibit A-1.  The
initial Proposed Antigens designated by AZ, as of the Effective Date, for
selection by the Research Management Committee as Collaboration Antigens are
set forth in Exhibit A-2.  Such
Exhibits may be amended as follows:

 

(a)                                  At
any time during the Antigen Designation Term, AZ and ABX shall have the right
to propose, and shall use Commercially Reasonable Efforts to identify and
propose to the Target Sourcing Group pursuant to this Section 2.2.1(a),
Antigens for use in the Research Programs; [Confidential Treatment Requested].
Subject to the previous two sentences, promptly following the identification of
an Antigen by a Party, such Party shall submit to the other Party, subject to
the confidentiality provisions of this Agreement, express written notice of the
proposal of such Antigen (the “Antigen Notice”), which shall be in such
form as the Parties mutually agree, and shall include, to the extent such
information is known to the proposing Party or reasonably available to the
proposing Party in the scientific or patent literature [Confidential Treatment
Requested].  ABX and AZ shall each use Commercially Reasonable Efforts to propose a
sufficient number of Proposed Antigens so that the Research Management
Committee is able to designate thirty-six (36) Collaboration Antigens
during the Antigen Designation Term, with the goal of designating [Confidential
Treatment Requested] to [Confidential
Treatment Requested]
Collaboration Antigens per year, provided that no more than [Confidential
Treatment Requested]
Collaboration Antigens shall be designated per year without the mutual written
agreement of the Parties.

 

(b)                                 With
respect to each Antigen proposed by AZ pursuant to Section 2.2.1(a),
within thirty (30) days after ABX’s receipt of an Antigen Notice from AZ,
ABX shall notify AZ in writing whether or not such Antigen is an Excluded
Antigen or Partially Committed Antigen as of the date the repository search is
conducted by ABX, provided that (i) ABX shall conduct such repository search
on a [Confidential Treatment Requested] basis, and (ii) AZ provides the
information set forth in clauses (x) or (y) of the following sentence or
ABX is otherwise able to identify such Antigen as a unique molecular species
distinct from other molecules from the information provided by AZ.  If ABX is unable, because the information
provided by AZ in such Antigen Notice does not include either (x) the
amino acid sequence or chemical structure of such Antigen or the Genbank
accession number for the amino acid sequence of such Antigen or (y) the
nucleotide sequence encoding such Antigen or the Genbank accession number for
the nucleotide sequence for such Antigen, to identify such Antigen as a unique
molecular species distinct from other molecules, including Committed Antigens,
ABX

 

30

 

shall notify AZ in writing of the particulars thereof
and the additional information needed by ABX to determine whether such Antigen
is an Excluded Antigen or Partially Committed Antigen. ABX acknowledges and
agrees that the Antigen sequence information, if available, is usually
sufficient to determine whether an Antigen is a [Confidential Treatment
Requested] and that if two Antigens do not have identical sequences they may be
considered to be [Confidential Treatment Requested], unless other factors, such
as the Antigen name, suggest that two Antigens with differences [Confidential
Treatment Requested], in which case ABX may require such additional information
from AZ. AZ shall have the right, for a period of [Confidential Treatment
Requested] after receipt of such notice from ABX or such longer period as AZ
may reasonably request based on the additional information requested, to
complete the Antigen Notice as necessary to identify such Antigen as a unique
molecular species, and the applicable [Confidential Treatment Requested] period
or such longer period as ABX may reasonably request shall commence upon the
ABX’s receipt of such materials.  If following such additional [Confidential
Treatment Requested] period or
such longer period as AZ may reasonably request, the Information
provided by AZ in such Antigen Notice remains insufficient under the
circumstances to identify such Antigen as a unique molecular species distinct
from other molecules, then the Parties shall repeat the foregoing process until
ABX is able to reasonably identify whether such Antigen is a unique molecular
species.  With respect to each Antigen
proposed by AZ pursuant to Section 2.2.1(a) for which ABX does not notify
AZ in writing either that such Antigen is an Excluded Antigen or that ABX is
unable to identify such Antigen as a unique molecular species in each case
pursuant to this Section 2.2.1(b), and with respect to each Antigen proposed by ABX under Section 2.2.1(a),
AZ shall have the exclusive right to designate such Antigen as a Proposed
Antigen pursuant to Section 2.2.1(c). 
Subject to Sections 2.2.1(a) and 2.2.2(e), neither Party shall have
any further rights or obligations to the other Party under this Agreement with
respect to each Antigen
proposed by AZ for which ABX notifies AZ in writing that such Antigen is an
Excluded Antigen.

 

(c)                                  The Parties shall work together to
discuss and exchange Information with respect to Antigens for which an Antigen
Notice is submitted pursuant to Section 2.2.1(a) for possible nomination
as Proposed Antigens through the Target Sourcing Group.  For each Antigen proposed by a Party
pursuant to Section 2.2.1(a) (other than an Excluded Antigen), ABX shall
promptly submit to AZ (i) the ABX In-License Information (as
defined in Section 4.17.2) applicable to such Antigen, (ii) if such
Antigen is a Partially Committed Antigen, all information with respect to such
Antigen set forth in [Confidential Treatment Requested], (iii) all other Information with
respect to such Antigen (together with all Information reasonably available
from public sources), including any Information with respect to Antibody
Equivalents that bind to and are directed against such Antigen, that are
Controlled by ABX or its Affiliates, provided that (except as provided in the
above parenthetical) ABX shall not be required to perform any additional work
to generate such Information and (iv) such reasonable research quantities
of any Antibodies or Antibody Equivalents Controlled by ABX that bind to and
are directed against such Antigen as AZ may reasonably require in order for AZ
to internally assess such Antibodies or Antibody Equivalents, provided that if
ABX does not have sufficient quantities available, ABX shall have the right, in
lieu of such Antibodies or Antibody Equivalents, to provide AZ with the
applicable cell lines Controlled by ABX for such Antibodies or Antibody
Equivalents to enable AZ to generate such materials.  Any transfers of Antibodies, Antibody Equivalents or cell lines
to AZ pursuant to clause (iv) above shall be made pursuant to the Material
Transfer Agreement.  After receipt of an
Antigen Notice and such

 

31

 

Information and materials, as applicable, for an
Antigen, the Target Sourcing Group shall have the right to designate such
Antigen as a Proposed Antigen whereupon Exhibit A-2 shall be amended accordingly.  If an Antigen proposed by ABX pursuant to
Section 2.2.1(a) is rejected by the Target Souring Group, ABX shall have
the right to unilaterally
designate such Antigen as a Proposed Antigen (up to a maximum of [Confidential
Treatment Requested] Proposed
Antigens or such other number as the Parties mutually agree in writing)
whereupon Exhibit A-1 shall be amended accordingly.

 

(d)                                 Prior
to each Antigen becoming a
Proposed Antigen, a Prioritized Antigen or a Collaboration Antigen, ABX shall
inform AZ in writing whether or not ABX is Exploiting, to the extent permitted
under Article 17, products (other than products containing Antibodies or
Antibody Equivalents) with respect to such Antigen. ABX’s rights to Exploit any
such product shall be subject to Article 17.  For the avoidance of doubt, any Antigens discovered during the
Exploitation of any such product or any Pre-Existing Non-Antibody Program that
are not otherwise Excluded Antigens or Partially Committed Antigens shall,
subject to Sections 17.4 and 17.5, be proposed by ABX pursuant to
Section 2.2.1(a).

 

(e)                                  Notwithstanding
Section 2.2.1(c), if [Confidential Treatment
Requested], notifies ABX in writing that it intends [Confidential Treatment
Requested] to obtain a [Confidential Treatment Requested] other rights to an
[Confidential Treatment Requested)],
ABX shall have the right to accelerate the consideration of such [Confidential
Treatment Requested] by the
Target Sourcing Group as a [Confidential Treatment Requested] by providing AZ with written notice
that [Confidential Treatment Requested].  Within ten (10)
working days after the [Confidential Treatment Requested] from ABX, AZ shall
notify ABX in writing whether it wishes to designate such [Confidential
Treatment Requested] as a [Confidential Treatment Requested].  If AZ fails to timely designate such
[Confidential Treatment Requested] as a [Confidential Treatment Requested]
within the applicable period, then such [Confidential Treatment Requested]
shall be designated a [Confidential Treatment Requested] and neither Party
shall have any further rights or obligations to the other Party with respect to
such [Confidential Treatment Requested] under this Agreement; provided, however,
that if such [Confidential Treatment Requested] does not become a [Confidential
Treatment Requested] under such [Confidential Treatment Requested] after the
designation of such [Confidential Treatment Requested] as a [Confidential
Treatment Requested], ABX shall promptly re-propose such [Confidential
Treatment Requested] during the Antigen Designation Term under
Section 2.2.1(a) for consideration as a [Confidential Treatment
Requested].  For purposes of clarity,
once an Antigen has been designated, or re-proposed, as a Proposed Antigen, the
time periods of Section 2.2.2(d), and not this Section 2.2.1(e),
shall apply.  If an Antigen is
designated as a [Confidential Treatment Requested] pursuant to this
Section 2.2.1(e) prior to the receipt of the applicable ABX In-License
Information, AZ shall have thirty (30) days from receipt of such ABX In-License
Information to withdraw such [Confidential Treatment Requested], by written
notice to ABX, if such ABX In-License Information includes information regarding restrictions, financial obligations or
Third Party intellectual property rights that are not acceptable to AZ, in
which case such withdrawn [Confidential Treatment Requested] shall be designated a Non-Selected
Antigen, but shall not count against the cap on the number of [Confidential
Treatment Requested] under
Section 2.2.1(n).

 

32

 

(f)                                    If AZ has a good faith scientific basis
to believe that it is necessary to create an Antibody that binds to and is
directed against [Confidential Treatment Requested] for optimal therapeutic effect, AZ
shall notify ABX and such Proposed Antigens (up to a maximum of [Confidential
Treatment Requested] such
Proposed Antigens) shall only be counted as [Confidential Treatment
Requested], including for
purposes of the caps on Proposed Antigens set forth in Sections 2.2.1(n)
and 2.2.1(o).  If any such [Confidential
Treatment Requested] is
designated as a Collaboration Antigen, such [Confidential Treatment
Requested] shall only count as [Confidential
Treatment Requested], including
for purposes of the caps on Collaboration Antigens set forth in Sections
2.2.1(a) and 2.2.2(f), provided that AZ shall have no right to designate
more than [Confidential Treatment Requested] without the consent of ABX, and the Parties shall perform [Confidential
Treatment Requested] for such [Confidential
Treatment Requested].  In addition, if two or more Proposed
Antigens form a [Confidential Treatment Requested], such as a [Confidential Treatment Requested], such [Confidential Treatment
Requested] shall only be counted
as [Confidential Treatment Requested], including for purposes of the caps on Proposed [Confidential
Treatment Requested].  If any such [Confidential Treatment
Requested] is designated as a
Collaboration Antigen, such Integrated Proposed Antigen shall only count as [Confidential
Treatment Requested], including
for purposes of the caps on Collaboration Antigens set forth in Sections
2.2.1(a) and 2.2.2(f) and the Parties shall perform [Confidential
Treatment Requested] Research
Program for such [Confidential Treatment Requested]. 
Notwithstanding the foregoing, each Antigen included in a [Confidential
Treatment Requested] shall be
treated as a single [Confidential Treatment Requested] or [Confidential Treatment
Requested], as applicable, for
purposes of ABX’s exclusivity obligations under Article 17, except to the
extent that ABX has an existing program with respect to such Antigen and such
Antigen is disclosed by ABX in the Antigen Notice or pursuant to
Section 2.2.1(d) prior to such Antigen becoming a Proposed Antigen.  In the event that ABX reasonably believes
that a Research Program for a [Confidential Treatment Requested] will require more FTEs than a
Research Program for a Collaboration Antigen that is not a [Confidential
Treatment Requested], the Parties
shall discuss in good faith how to allocate the costs of such additional FTEs.

 

(g)                                 AZ shall have the [Confidential
Treatment Requested] the
intellectual property in-licensing strategy for each Proposed Antigen set forth
on Exhibit A-1 or A-2 as of the Effective Date and each Antigen proposed
by a Party pursuant to Section 2.2.1(a), 2.2.1(j) or 2.2.1(k) (except for those Proposed Antigens that are rejected by the Target
Sourcing Group and are unilaterally designated by ABX pursuant to
Section 2.2.1(c), which shall be controlled by ABX at ABX’s expense) and
each Collaboration Antigen until such time as such Antigen becomes a
Non-Selected Antigen or, subject to Section 4.15, a Failed Antigen or,
subject to Section 4.5.1, a Discontinued Antigen.  Except as expressly set forth in this
Section 2.2.1(g), ABX shall not seek or obtain any license with respect to
an Antigen after it is first
identified by ABX as provided in Section 2.2.1(a) or
for which AZ has provided an Antigen Notice, whichever is earlier, until such
Antigen is designated a Non-Selected Antigen or a Discontinued Antigen subject
to Section 4.5.1(e) or a Failed Antigen subject to Section 4.15.  If, at any time after the date of the first submission of an Antigen
Notice for an Antigen
pursuant to Section 2.2.1(a), 2.2.1(j) or 2.2.1(k), as applicable, but prior to the date of the final
designation of such Antigen as a Non-Selected Antigen, Failed Antigen or
Discontinued Antigen, either Party identifies any Know-How Rights or Patent
Rights Controlled by a Third Party in Antigen-Specific Technology with respect
to such Antigen, such Party shall notify the Research Management Committee and
AZ shall have the [Confidential Treatment Requested] whether to

 

33

 

obtain a license to
such Know-How Rights or Patent Rights and, if so, which Party is in a better
position to obtain such license, to the extent [Confidential Treatment
Requested] the
intellectual property in-licensing strategy for such Antigen pursuant to this
Section 2.2.1(g).  If AZ believes
that ABX should obtain such license, the Parties shall discuss the situation in
good faith and if ABX consents to obtain such license, such consent not to be
unreasonably withheld or delayed, ABX shall, in consultation with AZ, use good
faith efforts to obtain a license to such Know-How Rights or Patent
Rights, provided that no such license shall be entered into [Confidential
Treatment Requested.]  Notwithstanding
the Party that obtains such a
license, any Third Party Royalties for AZ Products under such license shall be
the responsibility of [Confidential Treatment Requested]. 
Notwithstanding the foregoing, if ABX has a pre-existing option or
contractual right to negotiate pursuant to a written agreement, [Confidential
Treatment Requested] to obtain
further licenses with respect to a Proposed Antigen or Collaboration Antigen, and
AZ wishes to obtain such license, ABX shall have the [Confidential
Treatment Requested] to exercise
such option or right to negotiate.  Any
Antigen-Specific Technology with respect to such exercise shall be deemed to be
ABX Prior Antigen-Specific Know-How Rights or ABX Prior Antigen-Specific Patent
Rights, as applicable, and any royalties or other payments owed to Third
Parties under such a license with respect to a Proprietary ABX Antigen shall be
the [Confidential Treatment Requested] responsibility of [Confidential Treatment Requested].

 

(h)                                 Upon
the designation of an Antigen as a Proposed Antigen pursuant to Section 2.2.1(c), each Party shall
promptly furnish to the Research Management Committee any other Information
Controlled by such Party (together with all Information reasonably available
from public sources), not previously provided to the other Party, with respect
to such Antigen that supports such Party’s belief that it qualifies as an
Antigen as to which the administration or other medical use of an antibody that
binds to and is directed against such Antigen could be useful for the
prevention, treatment or diagnosis of cancer in humans.  Prior to a Proposed Antigen becoming a
Collaboration Antigen or a Non-Selected Antigen, each Party shall promptly
deliver to such other Party any additional Information of the type set forth in
Section 2.2.1(c) and
this Section 2.2.1(h) that becomes known to such Party or its Affiliates
with respect to such Proposed Antigen.

 

(i)                                     With
respect to each Partially Committed Antigen that is designated as a Proposed
Antigen pursuant to Section 2.2.1(c),
the licenses and other rights granted by ABX to AZ hereunder shall be subject
to [Confidential treatment requested];
provided, however, that ABX [Confidential treatment
requested]: (i) the
existence of such [Confidential treatment requested], (ii) any restrictions imposed
by such [Confidential treatment requested] on the right of [Confidential treatment requested] to designate such [Confidential
treatment requested] as a [Confidential
treatment requested],
(iii) any restrictions imposed by such [Confidential treatment
requested] to which the licenses
and rights, if granted to AZ under this Agreement, would be subject,
(iv) the time periods provided under such [Confidential treatment
requested] for ABX to [Confidential
treatment requested] any licenses
and rights granted thereunder if such Partially Committed Antigen is designated
as a Collaboration Antigen [Confidential treatment requested] in accordance with this Agreement;
and (v) the general nature of any licenses and rights granted under such [Confidential
treatment requested] to which the
licenses and rights, if granted to AZ under this Agreement, would be subject
prior to such [Confidential treatment requested]; provided  further that upon [Confidential
treatment requested] of the
licenses and rights granted under such [Confidential treatment requested] as disclosed by

 

34

 

ABX in clause (v)
above, the licenses and other rights granted by ABX to AZ hereunder shall be
subject only to the [Confidential treatment requested]. 
If and when ABX identifies an Antigen that ceases to be a
Partially Committed Antigen either because it has become a Committed Antigen
[Confidential treatment requested]
or because any such prior license or right has expired or been terminated or
rescinded, ABX shall promptly notify AZ in writing thereof.  If such Antigen ceases to be a Partially
Committed Antigen because any such prior license or right has expired or been
terminated or rescinded, then (x) if such Antigen is a Proposed Antigen,
such Antigen shall become an unencumbered Proposed Antigen, and (y) if
such Antigen has been designated as a Non-Selected Antigen, AZ shall have the
right to once again designate such Antigen as a Proposed Antigen or a
Collaboration Antigen.

 

(j)                                     At any time during the Antigen Designation Term
following the [Confidential treatment requested] after the Effective Date, for the Advanced
ABX Antigen and promptly following the Effective Date for each Antigen
(other than the Advanced ABX Antigen, an Excluded Antigen or a Partially
Committed Antigen) Controlled by ABX or its Affiliates that was being
researched, or against which Antibody Equivalents were being researched, developed
or otherwise Exploited (“Accelerated ABX Antigens”), as of the Effective
Date, each of which is set forth on Exhibit C-2, ABX shall deliver to AZ (i) an Antigen
Notice, (ii) the ABX In-License Information, (iii) all other
Information Controlled by ABX (together with all Information reasonably
available from public sources) with respect to such Antigen, including any
Information with respect to Antibody Equivalents that bind to and are directed
against, and any other products with respect to, such Antigen, provided that
(except as provided in the above parenthetical) ABX shall not be required to do
any additional work to generate such Information and (iv) such reasonable
research quantities of any Antibodies or Antibody Equivalents Controlled by ABX
that bind to and are directed against such Antigen as AZ may reasonably require
in order for AZ to internally assess such Antibodies or Antibody Equivalents,
provided that if ABX does not have sufficient quantities available, ABX shall
have the right, in lieu of such Antibodies or Antibody Equivalents, to provide
AZ with the applicable cell lines Controlled by ABX for such Antibodies or
Antibody Equivalents to enable AZ to generate such materials.  Any transfers of Antibodies, Antibody
Equivalents or cell lines to AZ pursuant to clause (iv) above shall be
made pursuant to the Material Transfer Agreement.  If AZ notifies ABX in writing, within [Confidential treatment
requested] days after receipt of the applicable Antigen Notice, that AZ desires
to include the Advanced ABX Antigen as a Collaboration Antigen, then the Parties shall negotiate in good
faith to determine the financial terms on which such Advanced ABX Antigen would
be included as a Collaboration Antigen, provided that such Collaboration
Antigen shall not count towards the Collaboration Antigen totals set forth in
Section 2.2.2(f) and the Parties shall not be required to perform a
Research Program for such Antigen.  If
the Parties reach mutual agreement on such financial terms within [Confidential
treatment requested] after the
receipt of such Antigen Notice, then such Advanced ABX Antigen shall be
designated a Collaboration Antigen and Exhibit B shall be amended
accordingly.  If the Advanced ABX
Antigen is designated as a Collaboration Antigen, then all Information and
inventions conceived or generated in connection with any work performed by or
on behalf of ABX with respect to such Antigen prior to such designation that
would have been Collaboration Technology if such work had been performed under
a Research Program shall be Collaboration Technology and the provisions of
Section 11.1.3 shall apply thereto. 
If AZ fails to timely notify ABX in writing that AZ desires to
include the Advanced ABX Antigen as a Collaboration Antigen, or if the Parties
fail to timely reach mutual agreement on the financial terms on which such Advanced ABX

 

35

 

Antigen would be
included as a Collaboration Antigen, then such Advanced ABX Antigen shall be
designated a Non-Selected Antigen, shall not count as a Proposed Antigen
and neither Party shall have any further
rights or obligations to the other Party with respect to such Advanced ABX
Antigen under this Agreement.  The following Accelerated ABX
Antigens shall be deemed to be Prioritized Antigens as of the Effective
Date:  [Confidential treatment
requested].  Within [Confidential treatment
requested] after the later of
the Effective Date and the date of the Antigen Notice for [Confidential
treatment requested], and
within [Confidential treatment requested] after the later of the Effective Date and the
date of the Antigen Notice for [Confidential treatment requested] and [Confidential treatment
requested], AZ shall decide
whether to designate such Accelerated ABX Antigens as Prioritized
Antigens.  If AZ fails to timely notify
ABX in writing that AZ desires to include an Accelerated ABX Antigen as a
Prioritized Antigen, then such
Accelerated ABX Antigen shall be designated a Non-Selected Antigen and neither Party shall have any further
rights or obligations to the other Party with respect to such Accelerated ABX
Antigen under this Agreement.  With respect to each
Accelerated ABX Antigen that is designated as a Prioritized Antigen either as
of the Effective Date or pursuant to Section 2.2.2(a), Exhibit Q shall be
amended accordingly and the Parties shall use good faith efforts to agree upon
the CDTP criteria and Research Program Work Plan for such Prioritized Antigen
within [Confidential treatment requested] of such designation, and once such CDTP
criteria and Research Program Work Plan have been finalized in accordance with
Section 2.2.2(b), the Research Management Committee or AZ shall decide
whether to select such Prioritized Antigen as a Collaboration Antigen pursuant
to Section 2.2.2(c), whether or not AZ has completed its review of the
proprietary status of such Antigen.  If
an Accelerated ABX Antigen is designated as a Collaboration Antigen, then all
Information and inventions conceived or generated in connection with any work
performed by or on behalf of ABX with respect to such Antigen prior to such
designation that would have been Collaboration Technology if such work had been
performed under a Research Program shall be Collaboration Technology and the
provisions of Section 11.1.3 shall apply thereto.

 

(k)                                  At any time following the Effective Date and
during the Antigen Designation Term, if ABX acquires Antigen-Specific
Technology for an Antigen and rights to antibodies to such Antigen
pursuant to an ABX Antigen In-License listed on Exhibit K-2, or pursuant
to another ABX Antigen In-License through a [Confidential treatment requested]
(“Expedited ABX Antigens”), then ABX shall deliver to AZ (i) an Antigen Notice, (ii) the ABX
In-License Information, (iii) all Information Controlled by ABX
(together with all Information reasonably available from public sources) with
respect to such Antigen, including any Information with respect to Antibody
Equivalents that bind to and are directed against, and any other products with
respect to, such Antigen and the genomic and intellectual property file data
with respect to such Antigen, provided that (except as provided in the above
parenthetical) ABX shall not be required to perform any additional work to
generate such Information and (iv) such reasonable research quantities of
any Antibodies or Antibody Equivalents Controlled by ABX that bind to and are
directed against such Antigen as AZ may reasonably require in order for AZ to
internally assess such Antibodies or Antibody Equivalents, provided that if ABX
does not have sufficient quantities available, ABX shall have the right, in
lieu of such Antibodies or Antibody Equivalents, to provide AZ with the
applicable [Confidential treatment requested]. Any transfers of Antibodies,
Antibody Equivalents or cell lines to AZ pursuant to clause (iv) above
shall be made pursuant to the Material Transfer Agreement.  AZ shall have [Confidential treatment
requested] after receipt of the applicable Antigen Notice to notify ABX in
writing of

 

36

 

the designation of an Expedited ABX Antigen as a
Prioritized Antigen.  If AZ fails to timely notify
ABX in writing that AZ desires to designate an Expedited ABX Antigen as a
Prioritized Antigen, then such
Expedited ABX Antigen shall be designated a Non-Selected Antigen, shall
be deleted from Exhibit A-1 or A-2, as applicable, and neither Party shall have any further rights or obligations to the
other Party with respect to such Expedited ABX Antigen under this Agreement. 
With respect to each Expedited ABX Antigen that is designated as a
Prioritized Antigen, Exhibit Q and Exhibit A-2 shall be amended to include such
Antigen and the Parties shall use good faith efforts to agree upon the CDTP
criteria and Research Program Work Plan for such Antigen within [Confidential
treatment requested] pursuant to Section 2.2.2(b) and once such CDTP
criteria and Research Program Work Plan have been finalized in accordance with
Section 2.2.2(b), the Research Management Committee or AZ shall decide
whether to select such Prioritized Antigen as a Collaboration Antigen pursuant
to Section 2.2.2(c), whether or not AZ has completed its review of the
proprietary status of such Antigen.  If an Expedited ABX Antigen is
designated as a Collaboration Antigen, then any work performed by or on
behalf of ABX with respect to such Antigen prior to such designation shall be
deemed to have been performed under the Research Program for such Collaboration
Antigen and the provisions of Sections 11.1.1, 11.1.3, 11.1.4, 11.1.5 and
11.1.7 shall apply.

 

(l)                                     At any time following [Confidential treatment
requested] after the Effective Date and continuing for [Confidential treatment
requested] thereafter during the Antigen Designation Term, if ABX desires to
commence a research program to generate and develop antibodies that bind to and
are directed against a Proposed Antigen (other than a Prioritized Antigen),
regardless of which Party first proposed such Antigen (“Potential
Co-Development Antigen”), then ABX shall deliver to AZ written notice thereof, together with (i) all
Information Controlled by ABX (together with all Information reasonably
available from public sources) with respect to such Antigen, including
Information with respect to any Antibody Equivalents that bind to and are
directed against, and any other products with respect to, such Antigen,
provided that (except as provided in the above parenthetical) ABX shall not be
required to perform additional work to generate such Information, and
(ii) any Information Controlled by ABX with respect to the intellectual
property status of such Antigen, including antibody products that bind to and
are directed against such Antigen.  Upon
AZ’s receipt of such notice and Information, ABX shall have the right to
conduct, at its sole cost and expense, such research program.  Notwithstanding the foregoing, ABX shall
have no right to designate more than [Confidential treatment requested]
Potential Co-Development Antigens in any [Confidential treatment requested]
month period, not to exceed [Confidential treatment requested ] Potential
Co-Development Antigens in the aggregate. 
For purposes of clarity,
any such Potential Co-Development Antigen shall remain a Proposed Antigen.  ABX shall notify AZ in writing promptly
after the first immunization with a Potential Co-Development Antigen.  Within [Confidential treatment requested]
after the first immunization with the applicable Potential Co-Development
Antigen, AZ shall have the right to designate any Potential Co-Development
Antigen as a Prioritized Antigen and, if so designated, to designate such
Prioritized Antigen as a Collaboration Antigen.  If such Potential Co-Development Antigen is designated a
Prioritized Antigen during such period, the Parties shall use good faith
efforts to agree upon the CDTP criteria and the Research Program Work Plan for
such Prioritized Antigen [Confidential treatment requested] days pursuant to
Section 2.2.2(b) and once
such CDTP criteria and Research Program Work Plan have been finalized in
accordance with Section 2.2.2(b), the Research Management Committee or AZ
shall decide whether to select such Prioritized Antigen

 

37

 

as a Collaboration
Antigen pursuant to Section 2.2.2(c), whether or not AZ has completed its
review of the proprietary status of such Antigen.  If, during such [Confidential treatment
requested] period, AZ elects to designate such Potential Co-Development Antigen as a
Collaboration Antigen, Exhibit B shall be amended accordingly and ABX shall
have no rights to such Antigen under Section 8.1, provided that
such period shall be tolled in the event of any delays caused by ABX or its
Affiliates in preparing and finalizing the CDTP criteria and Research Program Work Plan for such Antigen pursuant
to Section 2.2.2(b) or in the event of any bona fide dispute with respect
to such CDTP criteria or Research Program Work Plan for so long as
dispute resolution procedures are being pursued in good faith.  If
AZ fails to notify ABX in writing, within such period, that AZ desires to
designate a Potential Co-Development Antigen as a Collaboration Antigen, then such Potential Co-Development
Antigen shall continue to be a Proposed Antigen (provided that AZ shall have no
right to designate such Antigen as a Collaboration Antigen) and ABX shall have
the right to continue, at its sole cost and expense, the internal program of
research with respect to such Proposed Antigen, provided that, within [Confidential treatment
requested] after the first immunization of such Antigen under such internal
program, AZ shall have the right to designate such Antigen as a Co-Development
Antigen and, if AZ timely designates such Antigen as a Co-Development Antigen,
the rights and obligations of the Parties with respect to such Antigen shall be
governed by Section 8.1.  Any such internal program shall be conducted
substantially in accordance with the Research Program Work Plan template
attached hereto as Exhibit H with the goal of meeting or exceeding the
CDTP form profile attached hereto as Exhibit G.  ABX shall not transfer,
license or encumber any of its rights with respect to such Antigen unless and
until such Antigen becomes a Non-Selected Antigen, Failed Antigen or
Discontinued Antigen.  ABX shall provide
AZ with quarterly written progress reports regarding the status and results of
its research regarding such Potential Co-Development Antigen, including
(x) Information with respect to all Antibodies and Antibody Equivalents
that bind to and are directed against such Potential Co-Development Antigen
generated from such program and any other Information Controlled by ABX with
respect to such Antibodies or Antibody Equivalents and such Antigen, including
Information described in clause (ii) above, and (y) such reasonable
research quantities of lead Antibodies or Antibody Equivalents that bind to and are directed against
such Potential Co-Development Antigen generated from such program, as AZ
may reasonably require in order for AZ to internally assess such Antibodies or
Antibody Equivalents, provided that if ABX does not have sufficient quantities
available, ABX shall have the right, in lieu of such Antibodies or Antibody
Equivalents, to provide AZ with the applicable cell lines Controlled by ABX for
such Antibodies or Antibody Equivalents to enable AZ to generate such
materials.  Any transfers of Antibodies
and Antibody Equivalents or cell lines, as applicable, to AZ pursuant to the
foregoing sentence shall be made pursuant to the Material Transfer Agreement. 
During such period as AZ has the right to designate a Potential
Co-Development Antigen as a Collaboration Antigen, AZ shall have the sole right
to control the preparation, filing and prosecution of all Patent Rights that
are specific to such Potential Co-Development Antigen (except as provided in
the following sentence), Antibodies or Antibody Equivalents that bind to and
are directed against such Potential Co-Development Antigen, or uses of the
foregoing.   During such period as AZ
has the right to designate a Potential Co-Development Antigen as a
Collaboration Antigen or a Co-Development Antigen, ABX shall have the sole
right to control the preparation, filing and prosecution of all Patent Rights
that are specific to a Potential Co-Development Antigen that ABX has
unilaterally designated as a Proposed Antigen over the objection of the Target
Sourcing

 

38

 

Group pursuant to
Section 2.2.1(c) or that AZ has not designated as a Collaboration Antigen
within the time permitted therefor, Antibodies or Antibody Equivalents that
bind to and are directed against such Potential Co-Development Antigen, or uses
of the foregoing.  During such period,
each Party shall provide the other with an advance copy of each proposed patent
filing within such Patent Rights and shall consider in good faith and
incorporate the reasonable comments of such other Party thereon.  For the avoidance of doubt, any
Co-Development Antigen shall not count against the Collaboration Antigen totals
set forth in Section 2.2.2(f).  If
a Potential Co-Development Antigen is designated as a Collaboration Antigen,
then any such work performed by or on behalf of ABX prior to such
designation shall be deemed to have been performed under the Research Program
for such Collaboration Antigen and the provisions of Sections 11.1.1,
11.1.3, 11.1.4, 11.1.5 and 11.1.7 shall apply. 
Notwithstanding the foregoing, on and after the Trigger Date of a Change
in Control of ABX, ABX shall have no right to designate Proposed Antigens as
Potential Co-Development Antigens, unless, subject to this
Section 2.2.1(l), such Proposed Antigens were unilaterally designated by
ABX over the objection of the Target Sourcing Group pursuant to Section 2.2.1(c).

 

(m)                               If, at any time after the [Confidential
treatment requested] anniversary of the Effective Date during the Antigen
Designation Term, ABX desires to generate Antibodies that bind to and are
directed against a Proposed Antigen (other than a Prioritized Antigen) that was
unilaterally designated as such by ABX over the objection of the Target
Sourcing Group pursuant to Section 2.2.1(c) and
has not been designated as a Prioritized Antigen for potential use in the
diagnosis or staging of diseases, states or conditions, ABX shall notify AZ in
writing thereof and, thereafter, ABX shall have the right to generate and
characterize Antibodies that bind to and are directed against such Proposed
Antigen (a “ABX Diagnostic Antigen”) prior to the conduct of in  vitro
testing thereof.  Notwithstanding
the foregoing, ABX shall have no right to designate more than [Confidential
treatment requested] ABX Diagnostic Antigens in any [Confidential treatment
requested] period, not to exceed [Confidential treatment requested] ABX
Diagnostic Antigens in the aggregate. 
ABX shall notify AZ in writing promptly after the first immunization
with an ABX Diagnostic Antigen.  For purposes of clarity, any such ABX
Diagnostic Antigen shall remain a Proposed Antigen.  At any time during the Antigen Designation
Term, AZ shall have the right to designate any ABX Diagnostic Antigen as a
Prioritized Antigen and, if so designated, to designate such Prioritized
Antigen as a Collaboration Antigen.  Any Antibodies that are generated
pursuant to this Section 2.2.1(m) that do not bind to such ABX Diagnostic
Antigen shall be destroyed.  ABX shall
not transfer, license or
encumber any of its rights with respect to such ABX Diagnostic Antigen or any
Antibodies or Antibody Equivalents that bind to and are directed against such
ABX Diagnostic Antigen unless and until such Antigen becomes a Non-Selected
Antigen.  On a quarterly basis, ABX
shall promptly provide AZ with any Information generated from any work
performed pursuant to this Section 2.2.1(m), including (x) Information with respect to all such Antibodies
or Antibody Equivalents generated from such work and any other Information
Controlled by ABX with respect to such Antibodies or Antibody Equivalents or
such Antigen, and (y) such reasonable research quantities of lead
Antibodies or Antibody Equivalents generated
from such work, as AZ may reasonably require in order for AZ to
internally assess such Antibodies or Antibody Equivalents, provided that if ABX
does not have sufficient quantities available, ABX shall have the right, in
lieu of such Antibodies or Antibody Equivalents, to provide AZ with the
applicable cell lines Controlled by ABX for such Antibodies or Antibody
Equivalents to enable AZ to generate such materials.  Any transfers of Antibodies, Antibody Equivalents or cell lines,
as

 

39

 

applicable, to AZ pursuant to the foregoing sentence
shall be made pursuant to the Material Transfer Agreement. 
If any such ABX Diagnostic Antigen is designated as a Collaboration
Antigen, then any such work performed by or on behalf of ABX prior to
such designation shall be deemed to have been performed under the Research
Program for such Collaboration Antigen and the provisions of
Sections 11.1.1, 11.1.3, 11.1.4, 11.1.5 and 11.1.7 shall apply.  ABX shall provide AZ with an advance copy of each proposed patent
filing that contains a claim that covers an invention that is conceived in the
course of the work conducted pursuant to this Section 2.2.1(m) and is
specific to an ABX Diagnostic Antigen, Antibodies or Antibody Equivalents that
bind to and are directed against such ABX Diagnostic Antigen, or uses of the
foregoing, and shall consider in good faith and incorporate the reasonable
comments of AZ thereon.

 

(n)                                 Unless otherwise agreed by the Parties,
the maximum number of Proposed Antigens that (i) were proposed by AZ
pursuant to Section 2.2.1(a) and are (or are required to be) set forth on
Exhibit A-2, at any time, shall not exceed (A) [Confidential
treatment requested] Proposed Antigens prior to the date]Confidential treatment
requested] after the Effective Date, (B) [Confidential treatment
requested] Proposed Antigens following the date [Confidential treatment
requested] after the Effective Date and prior to the date [Confidential
treatment requested] after the Effective Date, and (C) [Confidential
treatment requested] Proposed Antigens following the date [Confidential
treatment requested] after the Effective Date and prior to the date
[Confidential treatment requested] after the Effective Date, and (ii) are
unilaterally designated by ABX over the objection of the Target Sourcing Group
and are (or are required to be) set forth on Exhibit A-1 during the entire
Antigen Designation Term shall not exceed [Confidential treatment requested]
Antigens.  Neither Party shall designate
(or attempt or purport to designate) more Proposed Antigens than the applicable
maximum number of Proposed Antigens set forth above.  Unless otherwise agreed by the Parties, during the Antigen
Designation Term, the maximum number of Proposed Antigens that are designated
as Prioritized Antigens at any one time shall not exceed [Confidential
treatment requested].  AZ shall have the
right on written notice to ABX to remove the designation of one or more
Proposed Antigens as Prioritized Antigens, while maintaining such Antigens as
Proposed Antigens, and to re-designate such Proposed Antigens as Prioritized
Antigens from time to time during the Antigen Designation Term.  AZ shall not designate, at any given time,
more Prioritized Antigens than the maximum number of Prioritized Antigens set
forth above.

 

(o)                                 Unless otherwise agreed by the Parties,
AZ shall have the right to substitute one or more Proposed Antigens, from time
to time, by written notice to ABX pursuant to Section 2.2.1(a); provided,
however, that, except as set forth in Section 2.3.1, AZ shall not
have the right to, and shall not, substitute more than [Confidential treatment
requested] Proposed Antigens in the aggregate in any twelve (12) month
period during the Antigen Designation Term; and provided  further
that the substitution of a Non-Selected Antigen for a Proposed Antigen shall be
subject to Section 2.2.2(e).  Upon ABX’s receipt of notice of such
a substitution of an Antigen, the Antigen that is being replaced in order to substitute another Antigen
as a Proposed Antigen in its place shall be designated a Non-Selected Antigen, shall
be deleted from Exhibit A-2 and neither Party
shall have any further rights or obligations to the other Party with respect to
such Antigen under this Agreement.  AZ
shall not substitute (or attempt or purport to substitute) more Proposed
Antigens than the applicable maximum number of Proposed Antigens in any

 

40

 

period as set forth
above.  Unless otherwise agreed by the
Parties, ABX shall not have the right to substitute any Antigen for a Proposed
Antigen.

 

2.2.2                        Collaboration
Antigens.

 

(a)                                  The
Target Review Committee shall, from time to time during the Antigen Designation
Term, review the information provided by the Parties pursuant to
Section 2.2.1 to determine the prioritization of Proposed Antigens and
whether or not to designate a given Proposed Antigen as a Prioritized
Antigen.  For purposes of clarity, a Proposed Antigen does not cease to be a
Proposed Antigen after it becomes a Prioritized Antigen.  If either Party determines that such
information is not sufficient to determine whether a Proposed Antigen should be
designated as a Prioritized Antigen or a Prioritized Antigen designated as a
Collaboration Antigen, such Party shall have the right, but not the obligation,
at its own expense, to conduct further validation activities (without use of
the Licensed IP Rights of the other Party other than the ABX Antigen-Specific
Patent Rights, ABX Antigen-Specific Know-How Rights, AZ Antigen-Specific Patent
Rights or AZ Antigen-Specific Know-How Rights) with respect to such Proposed
Antigen.  Any Information resulting from
such validation activities shall be promptly disclosed to the Target Review
Committee.  In addition to such
validation activities, AZ shall have the right, at its own expense, to review
the proprietary status of the Proposed Antigens and conduct a freedom to
operate analyses to determine whether any Third Party intellectual property
rights might limit or otherwise affect AZ’s ability to fully Exploit any AZ
Products with respect thereto.  ABX shall reasonably cooperate with
reasonable requests of AZ in performing such review, including by providing AZ
with such information in ABX’s possession as AZ may reasonably request to
assist AZ in performing such review.  AZ
shall not be obligated to provide the results of any such review and analyses
to ABX except as provided in Section 4.5.1(c).

 

(b)                                 In
the event that the Target Review Committee or AZ designates a Proposed Antigen
as a Prioritized Antigen, such Proposed Antigen shall be added to Exhibit Q and
the Parties shall promptly develop the
Candidate Drug Target Profile for such Antigen based upon the form profile
attached as Exhibit G.  The CDTP
criteria should be sufficiently powered to predict whether a particular
Antibody has commercial potential as a Licensed Product.  If there is a dispute with respect to the
CDTP criteria for an Antigen, such dispute shall be referred to the Research
Management Committee for resolution, provided that in no event shall the CDTP
criteria for an Antigen be set below the minimum thresholds set forth on
Exhibit G without AZ’s prior consent. 
Once the Target Review Committee has approved the CDTP criteria
for a Prioritized Antigen, or any dispute with respect thereto has been
resolved, ABX shall, in consultation with AZ, promptly prepare a Research
Program Work Plan in accordance
with Section 2.2.3 for review and approval by the Target Review Committee,
provided that such Research Program Work Plan shall in no event require fewer
activities or resources than what is set forth in the form Research Program
Work Plan attached hereto as Exhibit H without the prior written consent
of AZ, not to be unreasonably withheld; provided, however, that
the obligations of the Parties to conduct the Research Program Work Plan are
subject to the provisions of Sections 2.2.3 and 2.3.  In connection with the preparation and
implementation of the Research Program Work Plan for an Antigen, ABX shall make
available and use Core Technology.  In
connection with the preparation of the CDTP criteria and Research Program Work
Plan for an Antigen, each Party shall promptly disclose to the other
(a) such Party’s Additional Technology

 

41

 

and (in the case of ABX) Antibody Technology (other
than Core Antibody Technology) and XenoMouse Methods (other than Core XenoMouse
Technology), in each case that such Party reasonably believes would be useful
for the research and development of Antibodies and Antibody Equivalents that
bind to and are directed against such Antigen, and (b) any Third Party
intellectual property rights and (in the case of ABX) any Third Party payments
associated with the use of such Additional Technology, Antibody Technology or
XenoMouse Methods described in clause (a) above.  The Parties shall use good faith efforts to agree on which of
such Additional Technology, Antibody Technology and XenoMouse Methods described
in clause (a) above shall be used in the Research Program Work Plan for
such Antigen and such technologies shall be described in such Research Program
Work Plan.  If, despite such good faith
efforts, the Parties are unable to agree on such Additional Technology,
Antibody Technology or XenoMouse Methods described in clause (a) above,
such dispute shall be referred to the Research Management Committee for
resolution.  Once the Target Review Committee has
agreed on the CDTP criteria and Research Program Work Plan for a Prioritized
Antigen, such criteria and plan shall be provided to the Research Management
Committee for final review and approval. 
Notwithstanding the foregoing, the Parties shall have the right,
on mutual written agreement, to approve the CDTP criteria or the Research
Program Work Plan for a Prioritized Antigen in advance of a Research Management
Committee meeting.

 

(c)                                  Once
the Research Management Committee or the Parties have approved the CDTP
criteria and Research Program Work Plan for a Prioritized Antigen, or any
dispute with respect thereto has been resolved, and AZ has completed its review
of the proprietary status of such Prioritized Antigen pursuant to
Section 2.2.2(a), or earlier at the election of AZ, the Research
Management Committee or AZ shall determine whether or not to select such
Prioritized Antigen as a Collaboration Antigen.  If AZ elects to designate a Proposed Antigen as a Collaboration
Antigen prior to the completion of the CDTP criteria and Research Program Work
Plan for such Antigen, the
Parties shall use good faith efforts to agree upon the CDTP criteria and
Research Program Work Plan for such Antigen promptly after such
designation.  Upon written notice
to ABX that a Prioritized Antigen is selected as a Collaboration Antigen, such
Antigen shall be designated a Collaboration Antigen, deleted from Exhibit Q and
Exhibit A-1 or A-2, as applicable, and shall be added to Exhibit B.  If the Research Management Committee or AZ rejects a Prioritized
Antigen, such Antigen shall be designated a Non-Selected Antigen and shall be
deleted from Exhibit Q and Exhibit A-1 or A-2, as applicable, and neither
Party shall have any further rights or obligations to the other Party with
respect to such Antigen under this Agreement. 
Any Prioritized Antigen that is not designated as a Collaboration
Antigen or a Non-Selected Antigen pursuant to this Section 2.2.2(c) shall
remain a Proposed Antigen and, at the election of AZ, a Prioritized Antigen for
further consideration at a later date, subject to Sections 2.2.1(j),
2.2.1(k), 2.2.1(l), 2.2.1(n) or 2.2.2(d). 
Upon the designation of an Antigen as a Collaboration Antigen, AZ shall
disclose any AZ In-License Information that is necessary for ABX to conduct its
obligations under the Research Program Work Plan for such Collaboration
Antigen.  Any Partially Committed
Antigen that is designated as a Collaboration Antigen prior to such Antigen
becoming a Committed Antigen pursuant to an Existing Collaboration, and such
license and rights thereunder, as were [Confidential treatment requested], shall
be exclusive to AZ and promptly following the date of such designation ABX
shall give notice and initiate the termination (such termination to be
effective as of the earliest possible date following such notice, [Confidential
treatment requested] of all non-exclusive licenses or other rights granted to
Third Parties with respect to Antibodies and Antibody

 

42

 

Equivalents that bind to and are directed against such
Antigen.  ABX shall notify AZ of the
effectiveness of such termination.

 

(d)                                 Notwithstanding
Section 2.2.2(a), if a Third Party, on its own initiative without
prompting by ABX or its Affiliates, notifies ABX in writing that it intends to
exercise its exclusive rights to a Proposed Antigen (other than a Partially
Committed Antigen or a Prioritized Antigen) under an Existing Collaboration and
such exercise would limit AZ’s rights under this Agreement, ABX shall have the right to
accelerate the consideration of such Proposed Antigen by providing AZ with
written notice that such selection or request had been made.  Within [Confidential treatment
requested] after the receipt by AZ of such written notice from ABX, AZ shall
notify ABX in writing whether it wishes to designate such Proposed Antigen as a
Collaboration Antigen, provided that such period shall be tolled in the event
of [Confidential treatment requested] preparing and finalizing the CDTP criteria and Research Program
Work Plan for such Antigen pursuant to Section 2.2.2(b) or in the event of
any [Confidential treatment requested] for so long as [Confidential
treatment requested].  If AZ fails to
timely designate such Proposed Antigen as a Collaboration Antigen within the
applicable period, then such Antigen shall be designated a Non-Selected Antigen,
shall be deleted from Exhibit A-1 or A-2, as applicable, and neither Party
shall have any further rights or obligations to the other Party with respect to
such Antigen under this Agreement; provided, however, that if
such Antigen does not become a Committed Antigen under such Existing
Collaboration after the designation of such Antigen as a Non-Selected Antigen,
ABX shall promptly re-propose such Antigen during the Antigen Designation Term
under Section 2.2.1(a) for consideration as a Proposed Antigen.  For the avoidance of doubt, neither ABX nor
its Affiliates shall grant any rights to [Confidential treatment requested] or
otherwise to Exploit Antibodies or Antibody Equivalents that bind to and are
directed against a [Confidential treatment requested] that would limit
[Confidential treatment requested], unless and until such Antigen becomes
[Confidential treatment requested].

 

(e)                                  Notwithstanding anything to the
contrary in this Agreement, if, at any time during the Antigen Designation
Term, either Party identifies additional scientific information that reasonably
indicates that a Non-Selected Antigen has utility for the development of
antibody products, such Party shall have the right to propose such Antigen for
acceptance as a Proposed Antigen pursuant to Section 2.2.1(a), subject to
the caps on substitutions of Proposed Antigens set forth in
Sections 2.2.1(o) and the caps on the number of Collaboration Antigens set
forth in Section 2.2.2(f).  Notwithstanding
Section 2.2.1(b), ABX shall have the right to reject such Antigen if,
after the date such Antigen first became a Non-Selected Antigen, ABX
(i) has granted rights to a Third Party that would preclude ABX from
granting a license to such Antigen to AZ under this Agreement, or (ii) has
entered into good faith negotiations with a Third Party regarding terms and
conditions of a business relationship relating to such Antigen as evidenced by
the existence of a [Confidential treatment requested] that would, if an
agreement were entered into on such terms, [Confidential treatment
requested].  In such event, such Antigen
shall remain a Non-Selected Antigen.

 

(f)                                    Unless otherwise agreed by the Parties,
the maximum number of Antigens that may be designated as Collaboration
Antigens, at any time, shall be thirty-six (36), subject to AZ’s right to
substitute an additional Collaboration Antigen for a Failed Antigen pursuant to
Section 2.3.1 or 4.15.  Except for
the limited right pursuant to Sections 2.3.1 and 4.15 to substitute an
additional Collaboration Antigen for any Failed Antigen that is designated

 

43

 

pursuant to
Section 2.3.1 or 4.15, neither the Research Management Committee nor AZ
shall have the right to substitute Collaboration Antigens unless otherwise
agreed by the Parties.

 

2.2.3                        Research Program Work Plan.

 

(a)                                  The Research Program Work Plan for each
Antigen shall be sufficiently robust with the goal to (i) deliver
Antibodies that have the greatest likelihood of meeting or exceeding the
applicable CDTP criteria and (ii) generate sufficient data as set forth in
the applicable CDTP criteria to determine whether such Antibodies meet or
exceed such CDTP criteria.  The Research
Program Work Plan for each Antigen shall be approved by the Research Management
Committee in accordance with Section 2.2.2(b).  If AZ has sufficient quantities of the immunogen of an Antigen in
stock or if such immunogen is otherwise uniquely available to AZ, in each case
in such form and purity as determined by the Research Management Committee for
use in the Research Program, then the Research Program Work Plan for such
Antigen shall require AZ to provide such immunogen.  For the avoidance of doubt, AZ shall not be required to provide
any immunogen from other programs (unless such immunogen is uniquely available
to AZ), purchase any immunogen (unless such immunogen is uniquely available to
AZ) or develop a program to generate any immunogen for use in the Research
Program.  If AZ believes that certain additional
work should be included in the initial Research Program Work Plan for an
Antigen and the Parties cannot agree on whether such additional work should be
included in such Research Program Work Plan, then such additional work shall be
included in such Research Program Work Plan (provided that, unless ABX
otherwise consents in writing, all such additional work for all Collaboration
Antigens does not exceed [Confidential treatment requested] additional FTEs in
the aggregate for each year for all Research Programs).  The Parties shall share equally in the costs
of up to [Confidential treatment requested] FTEs per year for such additional
work and AZ shall bear [Confidential treatment requested] of the costs of any
additional FTEs over such [Confidential treatment requested] FTEs (up to a total
of [Confidential treatment requested] FTEs in the aggregate per year for all
Research Programs) and any reasonable and verifiable external expenses (other
than FTE costs) required for such additional work pursuant to Section 9.1.

 

(b)                                 Once the initial Research Program Work
Plan for a Collaboration Antigen has been approved by the Research Management
Committee or the Parties, the Parties may amend a Research Program Work Plan
from time to time upon mutual written agreement to include additional
activities, whereupon the Parties shall each bear [Confidential treatment
requested] of the FTE costs and expenses for such additional activities
pursuant to Section 9.1.  If
there is a dispute with respect to such additional activities, such Research
Program Work Plan may be amended by AZ to include such additional activities (provided that, unless ABX otherwise
consents in writing, all such additional work for all Collaboration Antigens
does not exceed [Confidential treatment requested] additional FTEs in the
aggregate for each year for all Research Programs).  The Parties shall share equally in the costs of up to
[Confidential treatment requested] FTEs per year for such additional activities
and AZ shall bear [Confidential treatment requested] of the costs of any additional
FTEs over such [Confidential treatment requested] FTEs (up to a total of
[Confidential treatment requested] FTEs in the aggregate per year for all
Research Programs) and any reasonable and verifiable external expenses (other
than FTE costs) required for such additional activities pursuant to
Section 9.1.  In connection
with the preparation of any such amendment to the Research Program Work Plan
for an Antigen, each Party shall

 

44

 

promptly disclose to the other (i) such Party’s
Additional Technology and (in the case of ABX) Antibody Technology (other than
Core Antibody Technology) and XenoMouse Methods (other than Core XenoMouse
Technology), in each case that such Party reasonably believes would be useful
for the research and development of Antibodies and Antibody Equivalents that
bind to and are directed against such Antigen and (ii) any Third Party
intellectual property rights and (in the case of ABX) Third Party payments
associated with the use of such Additional Technology, Antibody Technology or
XenoMouse Methods described in clause (i) above.  If
(x) either Party wishes to include Additional Technology of the other
Party, or (y) AZ wishes to include any XenoMouse Methods (other than Core
XenoMouse Technology) or Antibody Technology (other than Core Antibody
Technology), in each case in such amendment, the Parties shall use good
faith efforts to agree on which of such Additional Technology, Antibody
Technology or XenoMouse Methods described in clause (x) above shall be
used in such Research Program Work Plan, subject to any Third Party
Royalties.  If, despite such good faith
efforts, the Parties are unable to agree on such Additional Technology,
Antibody Technology or XenoMouse Methods described in clause (x) above,
such dispute shall be referred to the Research Management Committee for
resolution.

 

2.2.4                        Antigen Designation Term.  The expiration or termination of the Antigen
Designation Term shall not constitute a termination of this Agreement or any Research
Program with respect to a Collaboration Antigen that was designated prior to
the expiration or earlier termination of the Antigen Designation Term.  Upon the expiration or earlier termination
of the Antigen Designation Term, all Proposed Antigens that have not been
designated as Prioritized Antigens or Collaboration Antigens shall become
Non-Selected Antigens, and neither Party shall have any further rights and
obligations to the other Party with respect to such Antigens hereunder.  Notwithstanding anything to the contrary in
this Agreement, but subject to Section 2.2.2(f), up to [Confidential
treatment requested] Prioritized Antigens that have been designated by the
Target Review Committee pursuant to Section 2.2.2(a) or AZ pursuant to Section 2.2.1
prior to the expiration or earlier termination of the Antigen Designation Term
shall continue to be Proposed Antigens, subject to the exclusivity provisions
set forth in this Agreement, until the first to occur of (i) the date on
which it is designated as a Collaboration Antigen pursuant to Section 2.2.2(c), and (ii) the date on
which it is designated as a Non-Selected Antigen pursuant to
Section 2.2.2(c) or
2.2.2(d).  With respect to each such
Prioritized Antigen, the
Parties shall use good faith efforts to agree upon the CDTP criteria and
Research Program Work Plan for such Antigen pursuant to Section 2.2.2(b)
within [Confidential treatment requested] after the expiration or earlier
termination of the Antigen Designation Term and once such CDTP criteria and
Research Program Work Plan have been finalized in accordance with
Section 2.2.2(b), the Research Management Committee or AZ shall decide
whether to select such Prioritized Antigen as a Collaboration Antigen pursuant
to Section 2.2.2(c), whether or not AZ has completed its review of the
proprietary status of such Antigen.  Upon
the expiration of such additional [Confidential treatment requested] period
(which period shall be extended if the CDTP criteria or Research Program Work
Plan for a Prioritized Antigen has not been agreed upon by the Parties because
of ABX’s delay or because of disputes), all Prioritized Antigens that have not
been designated as Collaboration Antigens shall become Non-Selected Antigens,
and neither Party shall have any further rights and obligations to the other
Party with respect to such Antigens hereunder. 
Notwithstanding the
foregoing, if at the end of the Antigen Designation Term there are Prioritized
Antigens delayed by ABX or for which there are disputes, then the Antigen Designation
Term shall be extended for such Prioritized Antigens and such Antigens

 

45

 

shall not count
against the [Confidential treatment requested] Prioritized Antigen cap.  Upon the designation of thirty-six (36)
Collaboration Antigens or such other number as the Parties may mutually agree
in writing, AZ shall have the right to terminate the Antigen Designation Term
in its entirety on written notice to ABX.

 

2.2.5                        Use
of XenoMouse Animals. 
Unless the Parties otherwise mutually agree in writing or as necessary
to use or generate control, polyclonal or surrogate antibodies as research
tools, ABX shall use XenoMouse Animals, and not use other animals or
technologies (other than Core Technology), for the generation of Antibodies and
Antibody Equivalents, and not use any Antibody Equivalents not Derived from the
XenoMouse Animals, under its research activities described in Section 2.2
for any Antigen that is a Collaboration Antigen or which AZ has the right to
designate as a Collaboration Antigen hereunder.

 

2.3                                 Conduct of Research Program.

 

2.3.1                        Immunization. 
With respect to each Collaboration Antigen, within such period as
determined by the Research Management Committee, if AZ agrees in the applicable
Research Program Work Plan to provide such Collaboration Antigen, then AZ shall
(a) deliver to ABX a reasonable sufficient quantity of the applicable
immunogen, in the form and purity, as set forth in such Research Program Work
Plan, provided that if AZ does not agree to provide such Collaboration Antigen,
ABX shall be responsible for providing such immunogen, in the form and purity,
as set forth in such Research Program Work Plan (and shall use Commercially
Reasonable Efforts to promptly acquire or generate such immunogen), and
(b) provide ABX with such information and data regarding such
Collaboration Antigen (or construct) (including the nucleotide sequence
encoding, and the amino acid sequence of, such Antigen or construct), in each
case as is in the Control of AZ and Reasonably Necessary for ABX to conduct its
obligations under the applicable Research Program.  Promptly after receiving such quantities of such immunogen, in
the form and purity, as set forth in such Research Program Work Plan and
related information from AZ or, if AZ is not providing such Collaboration
Antigen, promptly after ABX acquires or generates such immunogen, in the form
and purity, as set forth in such Research Program Work Plan, or at such later
time as the Research Management Committee may determine, ABX shall immunize
XenoMouse Animals with such Collaboration Antigen (or construct) in accordance
with such Research Program Work Plan and otherwise conduct its obligations
under the Research Program for such Collaboration Antigen.  Notwithstanding anything in this Agreement
to the contrary, ABX shall not be required to conduct any immunizations with
any immunogen or construct of a Collaboration Antigen if ABX reasonably
determines that such immunization constitutes an unreasonable or unnecessary
risk to its personnel, provided that no such risk or similar risk has been
assumed by ABX in the past for any other immunizations on behalf of ABX or any
other Person.  To the extent known to
ABX, ABX shall notify AZ of any such risks with respect to an Antigen prior to
its designation as a Proposed Antigen, Prioritized Antigen or Collaboration
Antigen, whichever is earlier.  In such
event, ABX shall consult with AZ and ABX shall use Commercially Reasonable
Efforts to provide an additional immunogen of such Collaboration Antigen that
does not pose such risk.  If,
notwithstanding the Commercially Reasonable Efforts of ABX, a safe immunogen
cannot be provided with respect to such Collaboration Antigen, then such
Antigen shall cease to be a Collaboration Antigen and shall be designated a
Failed Antigen, and Exhibit B shall be amended accordingly.  In such event (irrespective of whether it
occurs prior to the expiration or earlier

 

46

 

termination of the Antigen Designation Term), the
Research Management Committee or AZ shall have the right to substitute an
additional Proposed Antigen as a Collaboration Antigen in accordance with
Sections 2.2.2(b) and 2.2.2(c), which Antigen shall not count against the
Collaboration Antigen totals set forth in Section 2.2.2(f).

 

2.3.2                        Selection of Research Antibodies. 
With respect to each Collaboration Antigen, ABX, in consultation with
the Research Management Committee and using the XenoMouse Technology,
the Antibody Technology and the Additional Technology in accordance with the
applicable Research Program Work Plan, shall use Commercially Reasonable
Efforts to generate Antibodies that meet the binding criteria to such
Collaboration Antigen as is set forth in such Research Program Work Plan.  ABX shall provide the Research Management
Committee with the Information generated under or in connection with the
Research Program on the Antibodies generated pursuant to this Section 2.3
with respect to such Collaboration Antigen (including the data relating to the
screening of such Antibodies and the process and criteria used by ABX to
determine which Antibodies to give to AZ and which Antibodies to retain).  The Parties shall review such information
and data and select a panel of Antibodies (in such number as is set forth in
such Research Program Work Plan, unless the Parties agree otherwise (such
agreement not to be unreasonably withheld or delayed)) that bind to and are
directed against such Collaboration Antigen and either (a) meet the binding
criteria to such Collaboration Antigen as set forth in such Research Program
Work Plan or (b) otherwise show promise for meeting the applicable CDTP
criteria (the “Research Antibodies”). 
If there is a dispute as to whether an Antibody meets the criteria set
forth in clause (a), such dispute shall be submitted to the Research
Management Committee for resolution, and if there is a dispute as to whether an
Antibody meets the criteria set forth in clause (b), such dispute shall be
resolved by AZ.  ABX shall provide AZ
with reasonable research quantities of each Research Antibody as specified in
the applicable Research Program Work Plan, at ABX’s sole cost and expense, in
order for AZ to assess such Antibody and perform its activities under the
applicable Research Program and exercise its rights under this
Article 2.  If AZ requests
additional quantities of such Antibodies to perform such activities or exercise
such rights and ABX does not have sufficient quantities available, ABX shall
provide AZ with the cell line for each such Antibody to enable AZ to produce
such Antibody.  Any Antibodies that were
generated with respect to a Collaboration Antigen that show no binding affinity
to such Collaboration Antigen shall be destroyed unless the Parties agree otherwise.  If the Parties do not screen an Antibody or
are otherwise unable to determine whether an Antibody meets the binding
criteria set forth in the Research Program Work Plan, such Antibody shall be
retained by ABX for consideration by AZ at a later time.  ABX shall retain any such Antibody and all
Research Antibodies that are generated with respect to a Collaboration Antigen
(and any Antibody Cells and Genetic Materials with respect to such Antibodies),
until such time, if any, that such Collaboration Antigen is designated as a
Failed Antigen subject to Section 4.15 or a Discontinued Antigen subject
to Section 4.5.1, unless the Parties agree otherwise.

 

2.3.3                        Failure
or Discontinuation of Research Programs. 
If, notwithstanding ABX’s Commercially Reasonable Efforts, no Research
Antibodies have been generated that bind to and are directed against a
particular Collaboration Antigen within [Confidential treatment requested], or
such other period as the Parties mutually agree in writing, after initiation of
immunization of XenoMouse Animals with the applicable immunogen pursuant to the
applicable Research Program Work Plan, then, at AZ’s election, such Antigen

 

47

 

shall be designated a Failed Antigen and Exhibit B
shall be amended accordingly.  The
Parties shall monitor the progress of each Research Program and if, at any time
during a Research Program, either Party believes in good faith that any of the
scientific decision points set forth in the applicable Research Program Work
Plan cannot be achieved and that such failure to achieve such scientific
decision point would result in the inability to produce a Candidate Drug, the
Parties will discuss such situation in good faith and mutually decide whether
to continue with such Research Program. 
If the Parties jointly agree not to continue with such Research Program,
such agreement not to be unreasonably withheld or delayed, such Collaboration
Antigen shall be designated a Failed Antigen and Exhibit B shall be amended
accordingly.  If, during a Research
Program, AZ learns of new information with respect to the proprietary status of
the applicable Collaboration Antigen or Antibodies that bind to and are
directed against such Collaboration Antigen that indicates that the Parties
will not be able to successfully complete such Research Program or Exploit
Antibodies generated under such Research Program on commercially reasonable
terms, then the Parties will discuss such information in good faith.  If AZ decides not to continue with such
Research Program based on such information, such Collaboration Antigen shall be
designated a Failed Antigen and Exhibit B shall be amended
accordingly.  In the event that
Antibodies generated pursuant to this Section 2.3 under a Research Program
for a [Confidential treatment requested] do not bind to [Confidential treatment
requested], AZ shall have the right to continue such Research Program for the
[Confidential treatment requested] to such Antibodies and such Antigen(s) shall
remain a [Confidential treatment requested]. 
In such event, the [Confidential treatment requested] shall be
designated a [Confidential treatment requested] and [Confidential treatment
requested] shall be amended accordingly.

 

2.3.4                        ABX Activities. 
Except as otherwise expressly set forth in the applicable Research
Program Work Plan, ABX shall be solely responsible, at its sole cost and
expense, for conducting its obligations under such Research Program Work Plan,
which shall include any additional activities pursuant to Section 2.2.3 or
2.6.2, unless otherwise agreed by AZ.  ABX
or its Affiliates shall perform all of its responsibilities under this
Section 2.3.4 and shall not enter into any subcontract with a Third Party
to perform any such responsibilities except as expressly permitted in the
applicable Research Program Work Plan or as otherwise agreed to by the Parties,
provided in any event that any such permitted subcontractor shall be reasonably
acceptable to AZ.

 

2.3.5                        AZ Activities. 
Except as otherwise expressly set forth in the applicable Research
Program Work Plan, AZ shall be solely responsible, at its sole cost and
expense, for conducting its obligations under such Research Program Work
Plan.  AZ or its Affiliates shall
perform all of its responsibilities under this Section 2.3.5, provided
that AZ shall have the right to use subcontractors, reasonably acceptable to
ABX, to perform any such responsibilities subject to Section 4.2.3.  Nothing
in this Section 2.3.5 shall restrict AZ’s right, in its sole discretion and at its sole cost and expense,
to Exploit Non-Licensed Products with respect to Collaboration Antigens itself
or with or through one or more Affiliates or Third Parties.

 

2.3.6                        Performance Standards. 
The Parties shall conduct their respective obligations under each
Research Program in accordance with the applicable Research Program Work Plan,
and shall use Commercially Reasonable Efforts to accomplish the objectives
thereof within the time frame set forth therein.  Each Party shall provide the personnel, materials, equipment and
other resources as set forth in each Research Program Work Plan or as otherwise

 

48

 

required to conduct
its obligations under each Research Program. 
Each Party shall perform its obligations under each Research Program
(whether itself, or with or through its permitted subcontractors) in accordance
with the highest scientific and professional standards, and in compliance in
all material respects with the requirements of all Applicable Law and good
scientific practices.  All activities
under the Research Programs shall be conducted under the general direction of
the Research Management Committee.

 

2.3.7                        Non-Performance. 
If either Party (the “Non-Performing Party”) fails to timely
perform its obligations under any Research Program (following the generation
and selection of one or more Research Antibodies in accordance with the
applicable Research Program Work Plan), then the other Party (the “Performing
Party”) shall have right (but not the obligation), on written notice to the
Non-Performing Party, to perform or have performed such activities in the event
that the Non-Performing Party does not commence such activities and thereafter
diligently continue such activities within [Confidential treatment requested]
of such notice.  The Non-Performing
Party shall reimburse the Performing Party for the reasonable out-of-pocket
costs incurred and FTEs employed by the Performing Party to perform or have
performed such activities (determined in accordance with applicable generally
accepted accounting principles consistently applied).  The Performing Party shall invoice the Non-Performing Party for
such amounts at least quarterly and shall provide the Non-Performing Party with
such documentation in support thereof as the Non-Performing Party may
reasonably request, and the Non-Performing Party shall pay each such invoice
within [Confidential treatment requested] after the date of receipt of such
invoice and supporting documentation. 
The performance of the Non-Performing Party’s activities by or on behalf
of the Performing Party pursuant to this Section 2.3.7 shall in no
way affect or limit any other rights or remedies to which such Party may be
entitled in law or equity; provided, however, in the event of a
failure by AZ to perform its obligations under a Research Program Work Plan,
ABX shall not have any right to terminate such Research Program or this
Agreement pursuant to Section 16.4 as a result of such failure.

 

2.4                                 Records. 
Each Party shall maintain records, in sufficient detail and in a good
scientific manner appropriate for patent and regulatory purposes, which shall
be complete and accurate and shall fully and properly reflect work done and
results achieved in the performance of each Research Program.  Each Party shall have the right, during
normal business hours and upon reasonable notice, to inspect and copy all such
records of the other Party to the extent reasonably required in connection with
the performance of its obligations or exercise of its rights under this
Agreement.  Each Party shall maintain
such records and the information of the other Party contained therein in
confidence in accordance with Article 13.

 

2.5                                 Reports and Notices.  In addition to regular
communications through the Project Leaders, each Party shall keep the Research
Management Committee informed of the progress of its activities under each
Research Program by means of written reports to the Research Management
Committee.  With respect to each
Collaboration Antigen, within twenty-one (21) days, but in no event less
than seven (7) days, prior to the next Research Management Committee
meeting during the applicable Research Program Term, and within
thirty (30) days following termination of the applicable Research Program,
each Party shall prepare, and provide to the Research Management Committee, a
reasonably detailed written report which shall (a) describe work done and
include all results achieved and data generated in the performance of

 

49

 

such Research Program
since the last such report, (b) evaluate the work performed in
relation to the goals of this Agreement and the applicable Research Program
Work Plan, and (c) provide such other information as may be required by
Section 2.3.2 or 2.6.2(d) or the applicable Research Program Work Plan.

 

2.6                                 Identification of Candidate Drugs.

 

2.6.1                        Working with the Collaboration
Antigens, the primary objective of the Research Programs shall be to identify
Candidate Drugs that bind to and are directed against each Collaboration
Antigen for development and commercialization. 
At the first regularly scheduled Research Management Committee meeting
after completion of all activities set forth in a Research Program and receipt
of the final report from ABX for such Research Program for a Collaboration
Antigen (which report contains the data Reasonably Necessary to determine
whether or not the Research Antibodies with respect to such Collaboration
Antigen meet or exceed the applicable Candidate Drug Target Profile) or at such
earlier time as AZ may elect, the Research Management Committee shall determine
whether or not one or more Research Antibodies to such Collaboration Antigen
meet or exceed the applicable Candidate Drug Target Profile and shall provide
AZ with a recommendation as to whether or not to select one or more such
Research Antibodies as Candidate Drugs. 
Notwithstanding the foregoing, AZ shall have the right to select a
Candidate Drug that binds to and is directed against a Collaboration Antigen
even before the Research Management Committee issues its recommendation with
respect to such Collaboration Antigen. 
If AZ selects at least one Antibody that binds to and is directed
against a Collaboration Antigen as a Candidate Drug, then the license grants
set forth in Article 4 shall apply to all Antibodies that bind to and are
directed against such Collaboration Antigen as Candidate Drugs.

 

2.6.2                        Irrespective of whether a Research
Antibody that binds to and is directed against a Collaboration Antigen achieves
the applicable CDTP criteria, AZ shall have the right, on written notice to ABX
within [Confidential treatment requested] after the later of (i) the
completion of the Research Program with respect to such Collaboration Antigen
and the delivery of ABX’s final report pursuant to Section 2.5, and
(ii) the recommendation of the Research Management Committee with respect
to the Research Antibodies that bind to and are directed against such
Collaboration Antigen pursuant to Section 2.6.1, (A) to request to
continue the Research Program for such Collaboration Antigen or perform any
additional activities outside of the Research Program that are directed in good
faith to selecting a Candidate Drug, (B) to select at least one Research
Antibody that binds to and is directed against such Collaboration Antigen as a
Candidate Drug, or (C) not to select any Research Antibody that binds to
and is directed against such Collaboration Antigen as a Candidate Drug, in each
case are more fully described below:

 

(a)                                  If no Research Antibody that binds to
and is directed against a Collaboration Antigen achieves the applicable CDTP
criteria, AZ shall have the one-time right with respect to such Collaboration
Antigen, prior to the expiration of such [Confidential treatment requested]
period, to request to continue the Research Program for such Collaboration
Antigen, using one or more existing Research Antibodies (or one or more other
Antibodies) that bind to and are directed against such Collaboration Antigen or
new Research Antibodies generated in an additional immunization of the
XenoMouse Animals.  In such event,
such

 

50

 

Research Program shall continue and the applicable Research Program
Work Plan for such Collaboration Antigen shall be amended to include
such additional activities (provided
that, unless ABX otherwise consents in writing, all such additional work for
all Collaboration Antigens does not exceed [Confidential treatment requested]
in the aggregate for each year for all Research Programs).  The Parties shall share equally in the costs
of up to [Confidential treatment requested] per year for such additional work
and AZ shall bear [Confidential treatment requested] of the costs of any
additional [Confidential treatment requested] required for such additional
activities pursuant to Section 9.1.

 

(b)                                 If
at least one Research Antibody
that binds to and is directed against a Collaboration Antigen achieves the
applicable CDTP criteria, AZ shall have the one-time right with respect to such
Collaboration Antigen, prior to the expiration of such [Confidential treatment
requested] period, to request to continue the Research Program or conduct
further research and development for such Collaboration Antigen directed to
selecting a Candidate Drug, using one or more existing Research Antibodies (or
one or more other Antibodies) that bind to and are directed against such
Collaboration Antigen.  In such event,
the applicable Research Program shall continue and, to the extent AZ wishes for ABX to perform additional
activities, the applicable Research Program Work Plan for such Collaboration
Antigen shall be amended to include such additional activities (provided that, unless ABX otherwise
consents in writing, all such additional work for all Collaboration Antigens
does not exceed [Confidential treatment requested] additional FTEs in the
aggregate for each year for all Research Programs).  The Parties will share equally in the costs of up to
[Confidential treatment requested] per year for such additional work and AZ
shall bear [Confidential treatment requested] of the costs of any additional
[Confidential treatment requested] over such [Confidential treatment requested]
required for such additional activities pursuant to Section 9.1.

 

(c)                                  If AZ elects to perform, itself or
through an Affiliate or Third Party, any additional activities with respect to
such Collaboration Antigen that are directed to selecting a Candidate Drug that
binds to and is directed against such Collaboration Antigen, it shall have the
right to do so outside the applicable Research Program and any
Information and inventions conceived or generated in connection with such
additional activities shall be Additional Development Program Technology.

 

(d)                                 If
additional activities are performed in accordance with this Section 2.6.2
for a Collaboration Antigen before the Research Management Committee has made a
recommendation with respect to such Collaboration Antigen pursuant to
Section 2.6.1, the Research Management Committee shall defer its
recommendation with respect to such Collaboration Antigen until the next
regularly scheduled meeting of the Research Management Committee after the
Research Management Committee has received complete disclosure of any and all Information
with respect to such additional activities, provided that the Research
Management Committee has had at least fifteen (15) days to review such
Information in advance of such meeting.

 

2.6.3                        Notwithstanding the recommendation of
the Research Management Committee, AZ shall have the right, in its sole
discretion, to select one or more Research Antibodies that bind to and are
directed against each Collaboration Antigen (or one or more other Antibodies)
that bind to and are directed against such Collaboration Antigen as

 

51

 

Candidate Drugs.  ABX acknowledges and agrees that the final
decision as to whether or not to select a Research Antibody (or other Antibody)
that binds to and is directed against a Collaboration Antigen as a Candidate
Drug shall rest with AZ and that such decision will be made by AZ in accordance
with AZ’s standard internal procedures for the nomination and selection of
Candidate Drugs.  In order to be
designated a Candidate Drug, a Research Antibody must meet or exceed the
applicable Candidate Drug Target Profile, unless AZ, in its sole discretion,
decides otherwise.  However, a Research
Antibody that meets or exceeds the applicable Candidate Drug Target Profile
may, nonetheless, not be designated as a Candidate Drug.  Each Research Antibody (or other Antibody)
that binds to and is directed against a Collaboration Antigen for which AZ
selects a Candidate Drug prior to the expiration of the [Confidential treatment
requested] period set forth in Section 2.6.2 shall be designated a
“Candidate Drug”.

 

2.6.4                        With respect to each Collaboration
Antigen, if (a) no Research Antibody achieves the applicable Candidate
Drug Target Profile, and (b) AZ elects not to designate at least one
Research Antibody (or other Antibody) that binds to and is directed against
such Collaboration Antigen as a Candidate Drug prior to the expiration of the
[Confidential treatment requested] period set forth in Section 2.6.2, then
unless the applicable Research Program is continued or such additional
activities are performed pursuant to Section 2.6.2 such Collaboration
Antigen shall be designated a Failed Antigen and Exhibit B shall be
amended accordingly.

 

2.6.5                        With respect to each Collaboration
Antigen, if (a) at least one Research Antibody meets or exceeds the
applicable Candidate Drug Target Profile, and (b) AZ elects not to
designate at least one Research Antibody (or other Antibody) that binds to and
is directed against such Collaboration Antigen as a Candidate Drug prior to the
expiration of the [Confidential treatment requested] period set forth in
Section 2.6.2, then unless the applicable Research Program is continued or
such additional activities are performed pursuant to Section 2.6.2 such
Collaboration Antigen shall be designated a Discontinued Antigen and
Exhibit B shall be amended accordingly. 
AZ shall notify ABX in writing of such designation and ABX shall have
the right for a period of [Confidential treatment requested] from the date of
such written notification to elect, on written notice to AZ (an “Exercise
Notice”), to Exploit any Research Antibody that binds to and is directed
against such Discontinued Antigen.  Upon
the receipt by AZ of an Exercise Notice for a Discontinued Antigen, each such
Research Antibody shall be deemed to be a Candidate Drug and the license grant
set forth in Sections 4.5.1(a)(i), 4.5.1(b), 4.5.1(c) and 4.5.1(d)(i) with
respect to such Discontinued Antigen shall become effective.  In the event ABX delivers an Exercise Notice
to AZ with respect to a Discontinued Antigen, ABX shall have the right to
purchase from AZ, at AZ’s fully burdened cost, any Research Antibodies that
bind to and are directed against such Discontinued Antigen.  In the event that ABX does not deliver an
Exercise Notice to AZ with respect to a Discontinued Antigen within such one
(1)-year period, (a) ABX shall have no rights with respect to such Antigen
under Sections 4.5.1(a)(i), 4.5.1(b), 4.5.1(c) or 4.5.1(d) or any
Antibodies that bind to and are directed against such Antigen, and (b) AZ
shall retain all such Antibodies (and any Antibody Cells and Genetic Materials
with respect to such Antibodies), which Antibodies shall be deemed to be
Candidate Drugs, whereupon the license grant set forth in Section 4.3.1
shall continue in effect subject to Section 4.5.1(e), provided that
(i) ABX shall have no further obligations with respect to the development,
process development or manufacturing of such

 

52

 

Candidate Drugs (other
than work previously performed or obligations incurred under a Contract
Services Agreement, Process Science/Clinical Manufacture Agreement or the
Manufacturing and Supply Agreement), (ii) the diligence obligations set
forth in Section 4.12.1 (other than the reporting obligations set forth in
Section 4.12.1(c)) shall not apply to such Candidate Drugs and
(iii) the milestone payments set forth in Section 9.3.1 and the
royalties payable to ABX under Section 9.3.2 shall apply to such Candidate
Drugs, subject to any reductions required under Section 9.7 or elsewhere
under Article 9.

 

2.7                                 Research Program Term.  With respect to each
Collaboration Antigen, unless earlier terminated pursuant to Section 16.2,
16.3 or 16.6, the term of the applicable Research Program shall continue until
the earlier of (a) the completion of the activities described in the
applicable Research Program Work Plan and the delivery of the final reports
with respect thereto pursuant to Section 2.5, (b) the designation of a
Collaboration Antigen as a Failed Antigen subject to Section 4.15 or a
Discontinued Antigen, and (c) the date that is [Confidential treatment
requested] after the first immunization with the last Collaboration Antigen,
provided that such period shall be tolled in the event of any delays caused by
ABX or its Affiliates in performing their activities under this Agreement or in
the event of any bona fide disputes between the Parties.  The expiration or termination of the
Research Programs shall not constitute a termination of this Agreement.

 

2.8                                 Project Leaders.  Upon the designation of an
Antigen as a Prioritized Antigen or Collaboration Antigen, each Party shall, on
written notice to the other Party, appoint a person (a “Project Leader”)
to coordinate its activities prior to and under the Research Program for such
Antigen.  The Project Leaders shall be
the primary contacts between the Parties prior to and under the applicable
Research Program and shall be responsible for coordinating the
day-to-day communications regarding the performance and results of the
activities of the Parties prior to and under such Research Program. 
Each Party shall notify in writing the other Party as soon as
practicable prior to changing its Project Leader with respect to an
Antigen.  ABX shall obtain the consent
of AZ before appointing or replacing a Project Leader, such consent not to be
unreasonably withheld or delayed.

 

2.9                                 Key Positions. 
The qualifications and experience of certain ABX scientific and
technical positions considered by AZ to be important to the conduct of the
Research Programs and Development Programs (the “Key Positions”) are
listed on Exhibit I.  If any
persons serving in Key Positions are to be substituted, then ABX shall give
written notice to AZ thereof, and the Parties shall meet and discuss in good
faith ABX’s plans for the substitution thereof.  ABX shall not substitute persons to serve in the Key Positions
who do not have the specified qualifications and experience, without the prior
written approval of AZ, which approval shall not be unreasonably withheld or
delayed.  Notwithstanding the foregoing,
ABX shall continue to be responsible for performing its activities under the
Research Programs and Development Programs, and any substitution pursuant to
this Section 2.9 shall not be deemed to be a waiver of any failure of ABX
to conduct its activities under this Agreement.

 

3.                                       RESEARCH MANAGEMENT COMMITTEE.

 

3.1                                 Composition
of the Committee. 
Each Research Program shall be conducted under the direction and
supervision of the Research Management Committee, which

 

53

 

shall be comprised of
an equal number of representatives from ABX and AZ with the requisite
experience and seniority to enable them to make decisions on behalf of the
Parties with respect to the Research Programs. 
The initial representatives of the Research Management Committee
are set forth on Exhibit J.  Each Party may substitute one
or more of its representatives, in its sole discretion, effective upon written
notice to the other Party of such change, provided that any such substitute
representative shall have substantially the equivalent experience and
seniority as the representative that such Person replaces.

 

3.2                                 Meetings.  ABX shall be responsible for
organizing and chairing the Research Management Committee Meetings.  The Research Management Committee shall meet
not less than once each calendar quarter during the Antigen Designation Term
and any Research Program Term, on such dates and at such times as agreed to by
ABX and AZ.  In person meetings shall be
at such locations as the Parties mutually agree.  Upon the mutual agreement of the Parties, any such meeting may be
conducted by telephone or videoconference; provided, however,
that not less than every other such meeting shall be in person.  At such meetings, the Research Management
Committee shall discuss the activities conducted under each Research Program
and the results thereof.  Each Party may
permit visitors, including its employees and agents, other than the members of
the Research Management Committee to meetings of the Research Management
Committee as the Parties mutually agree in writing prior to such meetings.  Each Party shall be responsible for its own
costs in connection with the meetings of the Research Management
Committee.  In the event of a dispute
that is to be referred to the Research Management Committee under this
Agreement, either Party has the right to request a special meeting of the
Research Management Committee, which shall occur promptly following such
request.

 

3.3                                 Purpose of Committee.  The Research Management
Committee shall be responsible for supervising and directing the Research
Programs.  As such, the Research
Management Committee may recommend to the Parties proposed modifications to any
Research Program Work Plan from time to time; provided, however,
that, except as otherwise provided in Section 2.2.2(b), 2.2.3 or 2.6.2, no
such modification shall be effective unless approved in writing by a duly
authorized signatory of each Party.  Any
approval, determination or other action agreed to by the Research Management
Committee, with ABX and AZ each having one (1) vote, shall be the approval,
determination or other action of the Research Management Committee.

 

3.4                                 Areas of Responsibility.  The Research Management
Committee’s responsibilities shall include: (a) selecting Collaboration
Antigens from Prioritized Antigens or other Proposed Antigens and determining
where such Collaboration Antigens will be sourced from, (b) reviewing,
revising and approving the Research Program Work Plan prepared by ABX for each
Collaboration Antigen and supervising the Research Program Work Plan for each
Collaboration Antigen, (c) reviewing, revising and approving the CDTP
criteria; (d) establishing a Collaboration Antigen portfolio strategy that
will prioritize the Research Programs with respect to various
Collaboration Antigens and the research activities within each such Research
Program; (e) supervising,
directing, reviewing and reporting on the Research Programs to ABX and AZ; (f)
establishing such subcommittees as deemed appropriate by the Research
Management Committee and (g) taking
such other actions as are set forth in this Article 3 or as the Parties
may unanimously agree.

 

54

 

3.5                                 Minutes. 
Within fourteen (14) days following each Research Management Committee
meeting, a representative of a Party to the Research Management Committee, on
an alternating basis, shall prepare and provide to each Party a copy of the
minutes of such meeting which shall set forth, in reasonably specific detail,
any approval, determination or other action agreed to by all of the members of
the Research Management Committee, provided that such minutes are reasonably
acceptable to both Parties.

 

3.6                                 Disputes.  Any disputes or disagreements arising in, or
referred to, the Research Management Committee that cannot be resolved by the
members of the Research Management Committee shall be referred to the Chief
Executive Officer of ABX and the Executive Vice President of Discovery (or one
of his or her direct reports) of AZ for resolution.  If such senior officers are unable to
resolve any such dispute within [Confidential treatment requested] following
the date of the meeting at which such dispute first arose, then (a) if
such dispute relates to whether to designate a Proposed Antigen as a
Prioritized Antigen, whether to designate a Prioritized Antigen as a
Collaboration Antigen, the prioritization of Proposed Antigens and Prioritized
Antigens for review, the selection of an Antibody as a Research Antibody, the
prioritization of Research Programs with respect to Collaboration Antigens, the
overall allocation of resources among the Research Programs, whether AZ is to
perform an activity under a Research Program Work Plan, including providing
quantities of Antigen for immunization pursuant to Section 2.3.1, whether or not to designate a Research
Antibody as a Candidate Drug or whether to perform additional work under a
Research Program Work Plan (provided in no event shall ABX be required to
perform more than [Confidential treatment requested] of such additional work in
any year in the aggregate as provided for herein, without its consent), AZ
shall have the deciding vote, (b) if such dispute relates to any other matter
other than a Party’s interpretation of, or any allegation of breach of,
this Agreement, including a dispute as
to what the CDTP criteria should be for a particular Antigen, whether or not a
Research Antibody meets or exceeds the applicable Candidate Drug Target
Profile, then either Party shall have the right to refer such dispute to
an Expert for expedited arbitration as set forth in Section 3.6.1, and (c) if such dispute
relates to a Party’s interpretation of, or any allegation of breach of, this
Agreement, then either Party shall have the right to litigate such dispute in
accordance with Section 20.1 or to pursue such other dispute resolution
mechanism as the Parties may agree.  The Parties acknowledge and agree that,
subject to the provisions of this Section 3.6, ABX shall have the right to
make day-to-day operational decisions regarding the implementation of each
Research Program within the scope of the applicable Research Program Work Plan.

 

3.6.1                        With
respect to disputes under Section 3.6(b) above that are not resolved by
the applicable senior officers of the Parties pursuant to Section 3.6 or
any disputes with respect to Additional Technology, Antibody Technology (other
than Core Antibody Technology) or XenoMouse Methods (other than Core XenoMouse
Technology) to be included in the applicable Research Program Work Plan or
Development Program Work Plan pursuant to Sections 2.2.2(b), 2.2.3(b) and
5.3.1, upon written request by either Party to the other Party, the Parties
shall appoint a mutually acceptable, independent Third Party to resolve such
dispute; provided, however, that in no event shall the Parties utilize any
Additional Technology, XenoMouse Methods (other than Core XenoMouse Technology)
or Antibody Technology (other than Core Antibody Technology) in a Research
Program Work Plan or Development Program Work Plan over the objection of
AZ.  Such independent Third Party shall
have the scientific, technical and regulatory experience with respect to the
research and development of antibody-

 

55

 

based products necessary to resolve such dispute (an “Expert”).  If the Parties cannot agree upon an Expert
within [Confidential treatment requested] following the date of the meeting at
which such dispute first arose, then such Expert shall be appointed by the Chief Executive Officer of ABX and the
Executive Vice President of Discovery of AZ, provided that if such Parties
cannot agree, each Party shall appoint one Expert and such Experts shall
jointly appoint a third Expert, which Expert shall be the sole Expert for the
resolution of such dispute. 
Within [Confidential treatment requested] after the appointment of such
Expert, the Parties shall each simultaneously submit to the Expert a written
statement of their respective positions on such dispute.  Upon the receipt of the written statements
of both Parties, the Expert shall promptly provide each Party with the written
statement of the other Party.  Each
Party shall have [Confidential treatment requested] from receipt of the other
Party’s submission to submit a written response thereto, which shall include
any scientific and technical information in support thereof.  The Expert shall have the right to meet with
the Parties, either alone or together, as necessary to make a
determination.  No later than
[Confidential treatment requested] after the designation of the Expert, the
Expert shall make a determination by selecting the resolution proposed by one
of the Parties that as a whole is the most fair and reasonable to the Parties
in light of the totality of the circumstances and shall provide the Parties
with a brief written statement setting forth the basis of the determination in
connection therewith.  The decision of
the Expert shall be final and conclusive, absent manifest error.  The
fees and costs of such Expert shall be borne by the Party whose proposed
resolution was not accepted by the Expert.

 

3.7                                 Target Review Committee.  The Parties shall
establish a joint target review committee (the “Target Review Committee”),
which shall oversee the review of Proposed Antigens, the selection of
Prioritized Antigens and the recommendation of Collaboration Antigens for
approval by the Research Management Committee. 
The chairperson of the Target Review Committee shall be appointed by AZ
(the “Chair”).  Each Party shall
appoint at least three (3) representatives with appropriate experience and
seniority to contribute to the review processes.  The Target Review Committee shall meet not less than once every
six (6) months during the Antigen Designation Term at an appropriate venue
to be decided by AZ.  Prior to each
meeting of the Target Review Committee, the Parties shall agree in writing on
which representatives of each Party shall attend such meeting.  The Target Review Committee shall endeavor
to reach decisions by consensus, provided that the Chair shall have final
decision-making authority with respect to the attendees for each Target Review
Committee meeting, the selection of Prioritized Antigens and the recommendation
of Collaboration Antigens to the Research Management Committee.  Disputes concerning either the CDTP criteria
or, subject to Section 2.2.2(b), the Research Program Work Plan for a
Prioritized Antigen shall be referred to the Research Management Committee for
resolution.  Each Party shall be
responsible for its own costs in connection with the meetings of the Target
Review Committee.

 

4.                                       LICENSES/GRANTS OF RIGHTS

 

4.1                                 Collaboration Antigens.  With respect to each
Collaboration Antigen until such time, if any, as such Collaboration Antigen
becomes a Discontinued Antigen or Failed Antigen, ABX and its Affiliates hereby
grant to AZ and its Affiliates: (a) an exclusive, worldwide right
and license (with the right to
grant sublicenses through multiple tiers of sublicensees) under (i) the
Licensed ABX IP Rights (other than the XenoMouse Know-How Rights and XenoMouse
Patent Rights) and the ABX Process Know-How Rights and ABX

 

56

 

Process Patent Rights,
and (ii) subject to the Supplementary XenoMouse Agreement, the XenoMouse
Know-How Rights and XenoMouse Patent Rights, in each case to Exploit Licensed
Products that bind to and are directed against such Collaboration Antigen for
use in the Commercial Field subject to Sections 4.12 and 9.3;
(b)(i) an exclusive, worldwide right and license (with the right to grant sublicenses
through multiple tiers of sublicensees) under the ABX Subsequent
Antigen-Specific Know-How Rights, ABX Subsequent Antigen-Specific Patent
Rights, ABX’s rights in the Collaboration Know-How Rights and Collaboration
Patent Rights, ABX Oncology Know-How Rights, ABX Oncology Patent Rights, ABX
Other Know-How Rights and ABX Other Patent Rights, and (ii) an exclusive,
worldwide right and license (with the right to grant sublicenses through
multiple tiers of sublicensees) under the ABX Prior Antigen-Specific Know-How
Rights and ABX Prior Antigen-Specific Patent Rights (and the other Licensed ABX IP Rights solely to the extent necessary
to enable AZ to utilize Additional Technology applicable to such Collaboration
Antigen, Collaboration Technology, Oncology Technology, Other Technology and
Antigen-Specific Technology), in each case to Exploit Non-Antibody Products with respect to such Collaboration
Antigen for use in the Commercial Field subject to Section 9.3.4; (c) an exclusive, worldwide
right and license (with the right
to grant sublicenses through multiple tiers of sublicensees) under the Licensed
ABX IP Rights (other than the XenoMouse Know-How Rights, (except solely to the
extent necessary to enable AZ to utilize Additional Technology applicable to
such Collaboration Antigen, Antibody Technology, Collaboration Technology,
Oncology Technology, Other Technology and Antigen-Specific Technology to
Exploit Non-Licensed Products (other than Non-Antibody Products)) XenoMouse
Patent Rights, ABX Process Know-How Rights and ABX Process Patent Rights) to
Exploit Non-Licensed Products (other than Non-Antibody Products) that bind to
and are directed against such Collaboration Antigen for use in the Commercial
Field subject to the last sentence of Section 4.4.1(a) and to
Section 9.3.4, provided that in each case ABX retains such rights as are
necessary to perform its activities under this Agreement.  AZ covenants to ABX that, during the term of
this Agreement, it will not exercise its rights under such license grant in any
way that is inconsistent with the remaining license grants set forth in
Sections 4.2, 4.3 and 4.4.  Any
breach of this Section 4.1 shall be a material breach of a material
obligation of AZ and shall give rise to the right to terminate under
Section 16.4, which right shall be in addition to any other rights and
remedies that may be available.

 

4.2                                 Research and Development Program Licenses.

 

4.2.1                        By ABX. 
Subject to the terms and conditions of this Agreement, with respect to
each Collaboration Antigen (other than Discontinued Antigens or Failed
Antigens), prior to the designation of a Candidate Drug that binds to and is
directed against such Collaboration Antigen, ABX and its Affiliates hereby
grant to AZ an exclusive, worldwide right and license (without the right
to grant sublicenses except as set forth in Section 4.2.3) under and to
the Licensed ABX IP Rights
applicable to such Collaboration Antigen, to conduct its obligations, and
exercise its rights, under the applicable Research Program, Development Program
and Articles 2 and 5; provided, however, that ABX retains
the right to conduct its activities under such Research Program and, prior to
the designation of a Candidate Drug that binds to and is directed against such
Collaboration Antigen, such Development Program.

 

4.2.2                        By AZ.  Subject to the terms and
conditions of this Agreement, with respect to each Collaboration Antigen (other
than Discontinued Antigens or Failed

 

57

 

Antigens), prior to
the designation of a Candidate Drug that binds to and is directed against such
Collaboration Antigen, AZ and its Affiliates hereby grant to ABX an exclusive,
worldwide right and license (without the right to grant sublicenses except as
set forth in Section 4.2.3) under and to the Licensed AZ IP Rights applicable to
such Collaboration Antigen, to conduct its obligations, and exercise its
rights, under the applicable Research Program and Development Program; provided,
however, that AZ retains the right to conduct its activities under such
Research Program and, prior to the designation of a Candidate Drug that binds
to and is directed against such Collaboration Antigen, such Development Program
and exercise its rights under Articles 2 and 5.

 

4.2.3                        Sublicenses. 
The licenses granted under this Section 4.2 shall only include the
right to grant sublicenses to Affiliates; provided, however, that
either Party shall have the right to engage Third Party subcontractors to
perform such Party’s obligations under the Research Programs solely to the
extent such subcontracting is provided for in Sections 2.3.4 and 2.3.5,
and to transfer the Research Antibodies (and any other Antibodies) that bind to
and are directed against the applicable Collaboration Antigen in the form or
formulations developed under the applicable Research Program or Development
Program, the applicable Collaboration Technology and Antigen-Specific
Technology to Third Party subcontractors performing such obligations for and on
behalf of such Party under the terms of written agreements having provisions
regarding confidentiality, non-use and ownership of intellectual property
consistent with those contained herein prohibiting the further transfer or
disclosure of such Information, inventions or materials (other than to a Party
hereto or its Affiliates).

 

4.3                                 Licensed Products.

 

4.3.1                        Licenses.

 

(a)                                  Subject to the terms and conditions of
this Agreement, with respect to each Collaboration Antigen (other than
Discontinued Antigens and Failed Antigens) with respect to which a Candidate
Drug has been selected pursuant to Section 2.6.3, ABX and its Affiliates
hereby grant to AZ the exclusive (including with regard to ABX and its
Affiliates), worldwide, right and license (with the right to grant sublicenses through multiple tiers of
sublicensees) under the Licensed ABX IP Rights applicable to such Collaboration
Antigen to Exploit Candidate Drugs that bind to and are directed against such
Collaboration Antigen for use in the Commercial Field and, after AZ has
delivered an Election Notice to ABX with respect to such Collaboration Antigen,
all Licensed Products  that
bind to and are directed against such Collaboration Antigen for use in
the Commercial Field.

 

(b)                                 Subject to the terms and conditions of
this Agreement, with respect to each Collaboration Antigen (other than
Discontinued Antigens and Failed Antigens) with respect to which a Candidate
Drug has been selected pursuant to Section 2.6.3, ABX and its Affiliates
hereby grant to AZ the exclusive (including with regard to ABX and its
Affiliates) license and right of
reference (with the right to grant sublicenses through multiple tiers of
sublicensees as set forth in Section 4.3.2) under ABX’s and its
Affiliates’ rights, titles and interests in and to any Registrations (and the
data included or referenced therein), to the extent not otherwise assigned
pursuant to Section 5.7.4 or 7.12, to Exploit Candidate Drugs and

 

58

 

Licensed Products that
bind to and are directed against such Collaboration Antigen for use in the
Commercial Field.

 

4.3.2                        Sublicenses.

 

(a)                                  Prior
to an Election Notice with respect to a Collaboration Antigen, AZ shall not
grant sublicenses to any Person (other than an Affiliate of AZ) under the
licenses granted under Section 4.3.1 with respect to such Candidate Drugs
that bind to and are directed against such Collaboration Antigen.  Any purported sublicense under the licenses
granted under Section 4.3.1 (other than to an Affiliate) prior to the
applicable Election Notice shall be void ab
initio and of no force and effect. 
Any breach of this Section 4.3.2(a) shall be a material breach of a
material obligation of AZ and shall give rise to the right to terminate under
Section 16.4, which right shall be in addition to any other rights and
remedies that may be available.

 

(b)                                 Once
AZ has provided an Election Notice with respect to a Collaboration Antigen
pursuant to Section 5.9, the restrictions in Section 4.3.2(a) shall
cease and AZ may, in its sole discretion, grant sublicenses under the licenses through multiple tiers of
sublicensees, to its Affiliates and to any other Persons.  Each
sublicense under Section 4.3.1 shall be subject to the terms and
conditions of this Agreement.  AZ shall
provide ABX with written notice prior to granting any such sublicense (other
than a sublicense to an Affiliate or in connection with a co-promotion or a
co-marketing arrangement, a cross-license in connection with a bona fide
intellectual property dispute or any other strategic relationship (such as, by
way of example, a product or disease alliance or a joint venture or other
collaboration)), and ABX shall have the right to submit a bid for such
sublicense.  If AZ elects to enter into
a sublicense with a Third Party, AZ shall provide ABX with prompt written
notice identifying the sublicensee and the Collaboration Antigen.

 

(c)                                  For the avoidance of doubt, AZ shall
have the right to engage Third Party subcontractors in connection with the
Exploitation of Licensed Products, and to transfer (i) applicable Research
Antibodies (and any other Antibodies) that bind to and are directed against the
applicable Collaboration Antigen in the form or formulations developed under
the applicable Research Program or Development Program, Licensed Products,
Collaboration Technology, Oncology Technology and Other Technology,
(ii) the Antibody Technology and Additional Technology in each case to the
extent that it is specific to such Licensed Products, and (iii) applicable
Antigen-Specific Technology included in the Licensed ABX IP Rights to such
Third Party subcontractors performing activities for and on behalf of AZ under
the terms of written agreements having provisions regarding confidentiality,
non-use and ownership of intellectual property consistent with those contained
herein prohibiting the further transfer or disclosure of such Information,
inventions or materials (other than to a Party hereto or its Affiliates).

 

4.3.3                        Covenant by ABX. 
During the term of this Agreement, ABX and its Affiliates shall not, and
shall not grant any license or right to any Third Party under the Licensed ABX
IP Rights to, Exploit Antibody Equivalents that bind to and are directed against,
or any other products with respect to, a Collaboration Antigen with respect to
which AZ has timely delivered, or still has the right to deliver, an Election
Notice to ABX pursuant to

 

59

 

Section 5.9.  Any grant of any such license or right
by ABX shall be void ab initio
and of no force and effect.  Any breach
of this Section 4.3.3 shall be a material breach of a material obligation
of ABX and shall give rise to the right to terminate under Section 16.3,
which right shall be in addition to any other rights and remedies that may be
available.

 

4.4                                 Non-Licensed Products.

 

4.4.1                        Licenses.

 

(a)                                  Subject to the terms and conditions of
this Agreement, with respect to each Collaboration Antigen (other than
Failed Antigens or Discontinued Antigens), ABX and its Affiliates hereby grant to AZ (i) the exclusive
(including with regard to ABX and its Affiliates), worldwide, right and
license (with the right to grant
sublicenses through multiple tiers of sublicensees) under ABX’s right, title
and interest in and to the Collaboration Know-How Rights and Collaboration
Patent Rights, ABX Oncology Know-How Rights, ABX Oncology Patent Rights, ABX
Other Know-How Rights, ABX Other Patent Rights and the ABX Subsequent Antigen-Specific
Know-How Rights and ABX Subsequent Antigen-Specific Patent Rights applicable to
such Collaboration Antigen (and the other Licensed ABX IP Rights solely to the
extent necessary to enable AZ to utilize Collaboration Technology, Oncology
Technology, Other Technology and Antigen-Specific Technology), and
(ii) the exclusive, worldwide right and license (with the right to
grant sublicenses through multiple tiers of sublicensees) under the ABX Prior
Antigen-Specific Know-How Rights and ABX Prior Antigen-Specific Patent Rights
applicable to such Collaboration Antigen, in each case to Exploit Non-Antibody Products with
respect to such Collaboration Antigen for use in the Commercial Field; provided,
however, that the license grant under clause (ii) above is subject
to the Parties’ prior written agreement on the financial terms of such license
pursuant to the following sentence. 
Promptly following the
designation of an Antigen as a Collaboration Antigen, the Parties shall
negotiate in good faith to determine the financial terms on which the license
grant to AZ under clause (ii) above shall be made.

 

(b)                                 Subject to the terms and conditions of
this Agreement, with respect to each Collaboration Antigen (other than
Discontinued Antigens and Failed Antigens) for which AZ has delivered an
Election Notice, ABX and its Affiliates hereby grant to AZ the exclusive (including
with regard to ABX and its Affiliates), worldwide, right and license (with the right to grant sublicenses
through multiple tiers of sublicensees) under the Licensed ABX IP Rights (other
than the XenoMouse Know-How Rights and (except solely to the extent necessary
to enable AZ to utilize Additional Technology applicable to such Collaboration
Antigen, Antibody Technology, Collaboration Technology, Oncology Technology,
Other Technology and Antigen-Specific Technology) XenoMouse Patent Rights)
applicable to such Collaboration Antigen to Exploit Non-Licensed Products
(other than Non-Antibody Products) with respect to such Collaboration Antigen
for use in the Commercial Field.

 

(c)                                  Subject to Sections 4.5.1(d) and
5.7.2 and the other terms and conditions of this Agreement, with respect to
each Collaboration Antigen, ABX and its Affiliates hereby grant to AZ the
exclusive (including with regard to ABX and its Affiliates) license and right of reference (with
the right to grant sublicenses through multiple tiers of sublicensees as set
forth in Section 4.3.2) under ABX’s and its Affiliates’ rights, titles and
interests in and to any

 

60

 

Registrations (and the
data included or referenced therein), to the extent not otherwise assigned
pursuant to Section 5.7.4 or 7.12, to Exploit Non-Licensed Products with
respect to such Collaboration Antigen for use in the Commercial Field.

 

4.4.2                        Sublicenses. 
The licenses granted under Section 4.4.1 shall include the right to
grant sublicenses under the licenses through multiple tiers of
sublicensees, to its Affiliates and to any other Persons.  Each
sublicense under Section 4.4.1 shall be subject to the terms and
conditions of this Agreement.  If AZ
elects to enter into such a sublicense with a Third Party, AZ shall provide ABX
with prompt written notice identifying the sublicensee and the Collaboration
Antigen.  For the avoidance of doubt,
subject to the provisions of this Agreement, AZ shall have the right to engage
Third Party subcontractors in connection with the Exploitation of Non-Licensed
Products, and to transfer (a) applicable Research Antibodies (and any
other Antibodies) that bind to and are directed against the applicable
Collaboration Antigen in the form or formulations developed under the
applicable Research Program or Development Program, Licensed Products,
Collaboration Technology, Oncology Technology and Other Technology,
(b) the Antibody Technology and Additional Technology in each case to the
extent that it is specific to such Non-Licensed Products, and
(c) applicable Antigen-Specific Technology included in the Licensed ABX IP
Rights, to such Third Party subcontractors performing activities for and on
behalf of AZ under the terms of written agreements having provisions regarding
confidentiality, non-use and ownership of intellectual property consistent with
those contained herein prohibiting the further transfer or disclosure of such
Information, inventions or materials (other than to a Party hereto or its
Affiliates).

 

4.5                                 Discontinued Antigens.

 

4.5.1                        ABX Products.

 

(a)                                  Subject to the terms and conditions of
this Agreement, with respect to each Discontinued Antigen (i) for which
ABX delivers an Exercise Notice to AZ, AZ and its Affiliates hereby grant to
ABX an exclusive (including with regard to AZ and its Affiliates),
worldwide, right and license (with
the right to grant sublicenses through multiple tiers of sublicensees as
provided in Section 4.5.3) under AZ’s right, title and interest in and to
the Collaboration Know-How Rights and Collaboration Patent Rights (and the
other Licensed AZ IP Rights solely to the extent necessary to enable ABX to
utilize the applicable Collaboration Technology) applicable to such
Discontinued Antigen solely to Exploit any Candidate Drug generated pursuant to
Section 2.3.1 (or any Antibody disclosed or delivered to AZ under
Section 2.2.1) that binds to
and is directed against such Discontinued Antigen, in the form and
formulations developed under the applicable Research Program or Development
Program, for use in the
Commercial Field, and (ii) AZ and its Affiliates hereby grant to ABX a
non-exclusive, worldwide right and license (with the right to grant sublicenses through multiple tiers of
sublicensees as provided in Section 4.5.3) under AZ’s right, title and
interest in and to the Collaboration Know-How Rights and Collaboration Patent
Rights (and the other Licensed AZ IP Rights solely to the extent necessary to
enable ABX to utilize the applicable Collaboration Technology) applicable to
such Discontinued Antigen to Exploit ABX Products (but not Antibodies,
Candidate Drugs or Licensed Products) that bind to and are directed against
such Discontinued Antigen for use in the Commercial Field; provided, however,
that AZ retains the right to Exploit Non-Licensed Products with respect to such
Discontinued Antigen.

 

61

 

(b)                                 Subject to the terms and conditions of
this Agreement, with respect to each Discontinued Antigen for which ABX
delivers an Exercise Notice to AZ, AZ and its Affiliates hereby grant to ABX a
non-exclusive, worldwide right and license (with the right to grant
sublicenses through multiple tiers of sublicensees in connection with the
Exploitation of the applicable Candidate Drugs) under the Additional
Development Program Know-How Rights, Additional Development Program Patent
Rights, Development Program Know-How Rights, Development Program Patent Rights,
AZ Prior Antigen-Specific Know-How Rights, AZ Prior Antigen-Specific Patent
Rights and AZ’s rights in the Additional Know-How Rights and Additional Patent
Rights applicable to such Discontinued Antigen solely to Exploit Candidate
Drugs generated pursuant to
Section 2.3.1 (or any Antibody disclosed or delivered to AZ under
Section 2.2.1) that
bind to and are directed against such Discontinued Antigen, in the form and
formulations developed under the applicable Research Program or Development Program,
for use in the Commercial Field; provided, however, that the
license grant under the AZ Prior Antigen-Specific Know-How Rights and AZ Prior
Antigen-Specific Patent Rights is subject to the Parties’ prior written
agreement on the financial terms of such license pursuant to the following
sentence.  Immediately after the
delivery of an Exercise Notice to AZ with respect to a Discontinued Antigen, or
earlier as requested by ABX, the Parties shall negotiate in good faith to
determine the financial terms on which such license grant under the AZ Prior
Antigen-Specific Know-How Rights and AZ Prior Antigen-Specific Patent Right to
ABX shall be made.

 

(c)                                  Subject to the terms and conditions of
this Agreement, with respect to each Discontinued Antigen for which ABX
delivers an Exercise Notice to AZ, AZ shall make available to ABX the results
of any freedom to operate analysis performed by AZ pursuant to
Section 2.2.2(a) for such Antigen, provided that AZ shall not be obligated
to disclose any legal opinions in connection with such freedom to operate
analysis, and any Information included in the Development Program Technology
and Additional Development Program Technology that relate to any Candidate Drug
generated pursuant to Section 2.3.1 (or any Antibody disclosed or
delivered to AZ under Section 2.2.1) that binds to and is directed against such Discontinued Antigen, in
each case that is Reasonably Necessary in order to Exploit such Candidate Drug
that binds to and is directed against such Discontinued Antigen for use in the
Commercial Field; provided, however, that AZ retains the right to
use such results and retains its rights under the Development Program
Technology and Additional Development Program Technology for all other
purposes.

 

(d)                                 Subject to the terms and conditions of
this Agreement, (i) with respect to each Discontinued Antigen for which
ABX delivers an Exercise Notice to AZ, AZ and its Affiliates hereby grant to
ABX the exclusive license
and right of reference (with the right to grant sublicenses through multiple
tiers of sublicensees as set forth in Section 4.5.3) under AZ’s and its
Affiliates’ rights, titles and interests in and to any Registrations (and the
data included or referenced therein) for any Candidate Drug that binds to and
is directed against such Discontinued Antigen solely to Exploit ABX Products
containing such Candidate Drugs generated pursuant to Section 2.3.1 (or
any Antibody disclosed or delivered to AZ under Section 2.2.1) that bind to and are directed against
such Discontinued Antigen for use in the Commercial Field, and (ii) with
respect to each Discontinued Antigen, AZ and its Affiliates hereby grant to ABX
the non-exclusive license
and right of reference (with the right to grant sublicenses through multiple
tiers of sublicensees as set forth in Section 4.5.3) under AZ’s and its
Affiliates’ rights, titles and interests in and to any Registrations (and the
data included or

 

62

 

referenced therein)
for any Candidate Drug that binds to and is directed against such Discontinued
Antigen solely to Exploit ABX Products (other than ABX Products containing such
Candidate Drugs generated pursuant to Section 2.3.1 (or any Antibody
disclosed or delivered to AZ under Section 2.2.1) that bind to and are directed against
such Discontinued Antigen for use in the Commercial Field); provided, however,
that AZ retains the right to use such Registrations (and the data included or
referenced therein) to Exploit Non-Licensed Products.

 

(e)                                  Subject to the terms and conditions of
this Agreement, with respect to each Discontinued Antigen for which ABX fails
to deliver an Exercise Notice to AZ within the applicable [Confidential
treatment requested] period, the exclusive licenses and rights under Section 4.3.1
granted by ABX and its Affiliates under the Licensed ABX IP Rights applicable
to such Discontinued Antigen to Exploit any Candidate Drug that binds to and is
directed against such Discontinued Antigen for use in the Commercial Field
shall continue (with the right to grant sublicenses through multiple tiers of
sublicensees as provided in Section 4.5.3, except that the licenses and
rights to commercialize such Candidate Drugs may only be exercised by one or
more sublicensees); provided, however, that ABX shall retain the
right to Exploit other ABX Products (but not Antibodies, Candidate Drugs or
Licensed Products) that bind to and are directed against such Discontinued
Antigen.

 

4.5.2                        Non-Licensed Products. 
Subject to the terms and conditions of this Agreement, with respect to
each Discontinued Antigen, ABX and its Affiliates hereby grant to AZ the
(a) non-exclusive, worldwide right and license (with the right to grant sublicenses
through multiple tiers of sublicensees as provided in Section 4.5.3) under
ABX’s right, title and interest in and to the Collaboration Patent Rights and
Collaboration Know-How Rights applicable to such Discontinued Antigen (and
under the Licensed ABX IP Rights solely to the extent necessary to enable AZ to
utilize Collaboration Technology applicable to such Discontinued Antigen) to
Exploit all Non-Licensed Products (other than Non-Antibody Products), and
(b) exclusive, worldwide right and license (with the right to grant
sublicenses through multiple tiers of sublicensees) under ABX’s right, title and interest in and
to the Collaboration Patent Rights and Collaboration Know-How Rights and the
ABX Prior Antigen-Specific Know-How Rights and ABX Prior Antigen-Specific
Patent Rights applicable to such Discontinued Antigen (and under the Licensed ABX IP Rights solely to the extent necessary
to enable AZ to utilize Collaboration Technology and Antigen-Specific
Technology applicable to such Discontinued Antigen) to Exploit Non-Antibody Products, in each
case with respect to such Discontinued Antigen for use in the Commercial Field;
provided, however, that the license grant under clause (b)
above with respect to the ABX Prior Antigen-Specific Know-How Rights and ABX
Prior Antigen-Specific Patent Rights is subject to the financial terms agreed
to by the Parties pursuant to the last sentence of Section 4.4.1(a).

 

4.5.3                        Sublicenses. 
The licenses granted under Sections 4.5.1 and 4.5.2 shall include
the right to grant sublicenses under the licenses through multiple tiers
of sublicensees, to Affiliates and to any other Persons.  Each
sublicense under Sections 4.5.1 and 4.5.2 shall be subject to the terms
and conditions of this Agreement.  If
either Party elects to enter into such a sublicense with a Third Party, such
Party shall provide the other Party with prompt written notice identifying the
sublicensee and the Discontinued Antigen. 
For the avoidance of doubt, each Party shall have the right to engage
Third Party subcontractors in

 

63

 

connection with the
Exploitation of ABX Products or AZ Products, as applicable, and to transfer the
applicable technology to such Third Party subcontractors performing activities
for and on behalf of such Party under the terms of written agreements having
provisions regarding confidentiality, non-use and ownership of intellectual
property consistent with those contained herein prohibiting the further
transfer or disclosure of such Information, inventions or materials (other than
to a Party hereto or its Affiliates).

 

4.6                                 Antigen-Specific Technology.

 

4.6.1                        By ABX. 
Subject to the terms and conditions of this Agreement and any applicable
ABX In-License, with respect to each Discontinued Antigen, Failed Antigen and
Non-Selected Antigen, ABX and its Affiliates hereby grant to AZ (a) the
non-exclusive, worldwide right and license (with the right to grant
sublicenses through multiple tiers of sublicensees) under the ABX Subsequent
Antigen-Specific Know-How Rights and ABX Subsequent Antigen-Specific Patent
Rights applicable to each such Antigen to Exploit Non-Licensed Products (other
than Non-Antibody Products) that bind to and are directed against such Antigen
for use in the Commercial Field, and (b) the
exclusive, worldwide right and license (with the right to grant
sublicenses through multiple tiers of sublicensees) under the ABX Subsequent
Antigen-Specific Know-How Rights and ABX Subsequent Antigen-Specific Patent
Rights applicable to each such Antigen to Exploit Non-Antibody Products with
respect to such Antigen for use in the Commercial Field.

 

4.6.2                        By AZ.  Subject to the terms and
conditions of this Agreement and any applicable AZ In-License, with respect to
each Discontinued Antigen, Failed Antigen and Non-Selected Antigen, AZ and its
Affiliates hereby grant to ABX a non-exclusive, worldwide right and
license (with the right to grant sublicenses through multiple tiers of
sublicensees) under the AZ Subsequent Antigen-Specific Know-How Rights and AZ
Subsequent Antigen-Specific Patent Rights applicable to each such Antigen to Exploit
ABX Products that bind to and are directed against such Antigen for use in the
Commercial Field.

 

4.7                                 Other Technology.

 

4.7.1                        Subject to the terms and conditions of
this Agreement, ABX and its Affiliates hereby grant to AZ a non-exclusive,
worldwide right and license (with the right to grant sublicenses through
multiple tiers of sublicensees) under the ABX Other Know-How Rights and ABX
Other Patent Rights for all purposes for use in the Commercial Field.

 

4.7.2                        Subject to the terms and conditions of
this Agreement, AZ and its Affiliates hereby grant to ABX a non-exclusive,
worldwide right and license (with the right to grant sublicenses through
multiple tiers of sublicensees) under the AZ Other Know-How Rights and AZ Other
Patent Rights for all purposes for use in the Commercial Field (other than with
respect to Collaboration Antigens that are not Failed Antigens or Discontinued
Antigens).

 

4.8                                 Oncology Technology.  Subject to the terms and conditions of this
Agreement, ABX and its Affiliates hereby grant to AZ an exclusive (including
with regard to ABX and its Affiliates), worldwide right and license (with the right to grant sublicenses
through multiple tiers of sublicensees) under the ABX Oncology Know-How Rights
and ABX Oncology

 

64

 

Patent Rights to
Exploit products that do not contain Antibodies or Antibody Equivalents for use
in the Commercial Field.

 

4.9                                 Development Program Technology.  Subject to the terms and conditions of this
Agreement, AZ and its Affiliates hereby grant to ABX a non-exclusive,
worldwide right and license (with the right to grant sublicenses through
multiple tiers of sublicensees) under the Development Program Know-How Rights
and Development Program Patent Rights (but excluding any data or Information
resulting from the pre-clinical, clinical or any other similar tests or studies
of a Research Antibody or a Candidate Drug or any Know-How Rights or Patent
Rights with respect to uses of a Candidate Drug) to Exploit ABX Products for all purposes in the Commercial Field
(other than to Exploit products with respect to a Collaboration Antigen, other
than, subject to Section 4.15, a Failed Antigen or Discontinued Antigen
for which ABX provided an Exercise Notice).

 

4.10                           Failed Antigens.

 

4.10.1                  Subject to the
terms and conditions of this Agreement, ABX and its Affiliates hereby grant to
AZ an exclusive, worldwide
right and license (with the right to grant sublicenses through multiple tiers
of sublicensees) under the ABX Antigen-Specific Know-How Rights, ABX
Antigen-Specific Patent Rights and ABX’s right, title and interest in and to the Collaboration Patent Rights
and Collaboration Know-How Rights to Exploit Non-Antibody Products with respect
to Failed Antigens for use in the Commercial Field.

 

4.10.2                  Subject to the
terms and conditions of this Agreement, with respect to each Failed Antigen, AZ
and its Affiliates hereby grant to ABX a non-exclusive, worldwide right and license (with the right to grant
sublicenses through multiple tiers of sublicensees) solely under the Additional
Development Program Know-How Rights and Additional Development Program Patent
Rights that are conceived or generated in connection with any additional
activities conducted by or on behalf of AZ pursuant to Section 2.6.2(c)
with respect to Research Antibodies that bind to and are directed against such
Failed Antigen prior to its designation as such, to Exploit ABX Products (other
than Antibodies or Research Antibodies) that bind to and are directed against
such Failed Antigen for use in the Commercial Field.

 

4.11                           Cross Licenses.  AZ shall have the right, without the prior
consent of ABX, to grant cross-licenses under the license grants in
Article 4 under the Licensed ABX IP Rights with respect to a Collaboration
Antigen (other than XenoMouse Know-How Rights, XenoMouse Patent Rights, ABX
Antibody Know-How Rights, ABX Antibody Patent Rights or any of ABX’s rights in
Additional Technology Know-How Rights and Additional Technology Patent Rights)
in connection with any bona fide intellectual property dispute with respect to
the Exploitation of the AZ Products with respect to such Collaboration
Antigen.  With respect to any ABX Prior
Antigen-Specific Know-How Rights and ABX Prior Antigen-Specific Patent Rights
that are first Controlled by ABX or its Affiliates pursuant to an ABX
In-License listed on Exhibit K-2, AZ shall notify ABX prior to granting
any such cross-license and, within thirty (30) days of such notice, ABX shall
inform AZ in writing of any Third Party royalty payments that are calculated on
the basis of sales of the applicable product and that are associated with the
grant of such cross-license.  Any such
cross-license granted by AZ shall be subject to such Third Party Royalties to
the extent disclosed to AZ pursuant to the foregoing sentence.

 

65

 

4.12                           Diligence.

 

4.12.1                  Obligations.

 

(a)                                  Collaboration Antigens. 
With respect to each Collaboration Antigen (other than Discontinued
Antigens and Failed Antigens) for which AZ has designated a Candidate Drug
pursuant to Section 2.6.3, AZ shall use Commercially Reasonable
Efforts (whether alone, or with one or more Third Parties) at its (or such
Third Parties’) own cost to (i) conduct all development necessary to
obtain a Registration for one Licensed Product for use in humans in each of the
Major Markets; and (ii) commercialize one Licensed Product for use in
humans in each of the Major Markets; provided, however,
that such obligations are expressly conditioned upon ABX and its Affiliates
performing their respective obligations under this Agreement and the Related
Agreements, including the performance of any activities pursuant to
Articles 4, 5 and 7, as applicable, including the supply of sufficient
quantities of Candidate Drugs and Licensed Products pursuant to Article 7
and the Related Agreements,  and
such obligations of AZ shall be delayed or suspended as long as any failure to
meet or satisfy such condition exists. 
Further, ABX acknowledges and agrees that nothing in this
Section 4.12.1(a) is intended, or shall be construed, to require AZ (or
such Third Party) to develop or commercialize a specific Candidate Drug or Licensed Product
or to obtain Registrations for, or commercialize, more than one
Candidate Drug or Licensed Product that
binds to and is directed against any such Collaboration Antigen. 
In the event that AZ decides to discontinue the development or commercialization of a Licensed Product in favor of another Licensed Product that binds to and is directed against the same Collaboration Antigen, its
obligations under this Section 4.12.1(a) shall cease with respect to such
initial Licensed Product in favor of such other Licensed Product.

 

(b)                                 Discontinued Antigens. 
With respect to
each Discontinued Antigen for which ABX delivers an Exercise Notice, ABX
shall use Commercially Reasonable Efforts (whether alone, or with one or more
Third Parties) at its (or such Third Parties’) own cost to (i) conduct all
development necessary to obtain a Registration for one ABX Product for use in
humans in each of the Major Markets; and (ii) commercialize one ABX
Product for use in humans in each of the Major Markets. 
Further, AZ acknowledges and agrees that nothing in this
Section 4.12.1(b) is intended, or shall be construed, to require ABX (or
such Third Party) to develop or commercialize a specific ABX Product or to obtain
Registrations for, or commercialize, more than one ABX Product that binds to and is directed against
any Discontinued Antigen for which ABX has delivered an Exercise Notice. 
In the event that ABX decides to discontinue the development or commercialization of an ABX Product in favor of another ABX Product that binds to and is directed against the same Discontinued Antigen, its
obligations under this Section 4.12.1(b) shall cease with respect to such
initial ABX Product in favor of such other ABX Product.

 

(c)                                  Reports.  Each
Party shall provide the other Party with updates on the current status of the
research, development and commercialization of, with respect to AZ, the
Licensed Products and, with respect to ABX, the ABX Products on a semiannual
basis, provided that AZ shall have no obligation to provide such updates to ABX
during any period in which ABX is performing activities under the Research
Program or Development Program for the applicable Collaboration Antigen.

 

66

 

4.12.2                  Breach of
Diligence Obligations.

 

(a)                                  Notification
and Meeting.  If at any time a Party
has a reasonable basis to believe that the other Party (the “Pursuing Party”)
is in material breach of a material obligation under Section 4.12.1 with
respect to a Collaboration Antigen or Discontinued Antigen, as applicable, then
the non-Pursuing Party shall so notify the Pursuing Party, specifying the basis
for its belief, and the Parties shall meet within [Confidential treatment
requested] after such notice to discuss in good faith the non-Pursuing Party’s
concerns and the Pursuing Party’s development and commercialization plans with
respect to such Antigen.

 

(b)                                 Right
of Termination.  If, after such good
faith discussions, (i) the Pursuing Party is in material breach of a
material obligation under Section 4.12.1 with respect to such Antigen, and
(ii) the Pursuing Party does not take reasonable steps designed to rectify
such breach within sixty (60) days of meeting with the non-Pursuing Party
pursuant to Section 4.12.2(a) (or, if such failure cannot be rectified
within such [Confidential treatment requested] period, if the Pursuing Party
does not commence actions to rectify such breach within such period and
thereafter diligently pursue such actions), the non-Pursuing Party may initiate
termination procedures with respect to such Antigen pursuant to
Section 16.3 or 16.4, as applicable, after it has complied with the
procedures set forth in this Section 4.12.2.

 

4.13                           Distributors.  Each Party shall have the right, in its sole
discretion, to appoint its Affiliates, and such Party and its Affiliates shall
have the right, in their sole discretion, to appoint Distributors.

 

4.14                           Covenant Not to Sue.  Neither AZ nor any of its Affiliates shall
ever, anywhere in the world, institute or prosecute (or in any way aid any
Third Party (other than to the extent required by law, regulation, court order
or subpoena) in instituting or prosecuting), at law or in equity, any claim,
demand, action or other proceeding for damages, costs, expenses or
compensation, or for an enjoinment, injunction, or any other equitable remedy,
against ABX, its Affiliates, sublicensees, suppliers, distributors, vendors or
customers alleging the Exploitation by any such Person of (a) XenoMouse
Technology, or (b) another rodent strain that contains human antibody
genes and is able to produce fully human antibodies or any part thereof, infringes
any XenoMouse Supported Patent Rights (in each case, other than the
Exploitation of products with respect to Collaboration Antigens (other than
Discontinued Antigens for which ABX has provided an Exercise Notice or, subject
to Section 4.15, Failed Antigens)). 
In AZ’s or its Affiliates’ agreements with each of its sublicensees of XenoMouse Supported Patent Rights,
AZ or its Affiliate, as applicable, shall use good faith efforts to include
provisions requiring a covenant, materially identical to that which AZ is
making in this Section 4.14, on the part of the sublicensee.  Further, in the event of an assignment or
transfer by AZ, its Affiliate or sublicensee of any XenoMouse Supported Patent
Rights, such assignee shall be bound by the covenant set forth in this
Section 4.14.  Nothing in this
Section 4.14 is intended or shall be construed to limit AZ’s rights or
ABX’s obligations under this Agreement, including with respect to
Article 17.

 

4.15                           Covenant by ABX.  With respect to each Failed Antigen, neither
ABX nor its Affiliates will independently sell or offer for sale, or enter
into an agreement with, or grant any license to, a Third Party to sell or offer
for sale or otherwise Exploit, any Antibodies or Antibody Equivalents that bind
to and are directed against such Failed Antigen for a period of

 

67

 

[Confidential treatment requested] after the date that
such Antigen was designated as a Failed Antigen.  If,
at any time during such [Confidential treatment requested] period, ABX wishes
to independently perform work with respect to such Failed Antigen, ABX shall
provide written notice to AZ.  ABX shall
provide AZ with any Information, Antibodies, Antibody Equivalents and other
materials generated in connection with such work on a quarterly basis and, at
the end of such [Confidential treatment requested] period, ABX shall provide AZ
with a final report on all work it has performed with respect to such Failed
Antigen and such Information and materials as AZ may reasonably request.  Upon receipt of such report, Information and
materials, AZ shall have the right, for a period of [Confidential treatment
requested], to designate such Antigen as a Collaboration Antigen under the
terms set forth herein, regardless of the number of Collaboration
Antigens that have been designated as of such date or whether the Antigen
Designation Term has expired.  If such
Antigen is designated as a Collaboration Antigen pursuant to the foregoing
sentence, any such work performed by ABX during such one (1) year period shall
be deemed to have been performed under the Research Program for such
Collaboration Antigen and the provisions of Sections 11.1.1, 11.1.3,
11.1.4, 11.1.5 and 11.1.7 shall apply. 
If such Antigen is not designated as a Collaboration Antigen, then all Information and inventions
conceived or generated in connection with any such work performed by ABX during
such [Confidential treatment requested] period that would have been
Collaboration Technology if such work had been performed under a Research
Program shall be Collaboration Technology and the provisions of
Section 11.1.3 shall apply thereto. 
If AZ declines to designate such Antigen as a Collaboration
Antigen, AZ shall notify ABX in writing and, if ABX wishes to pursue Antibodies
or Antibody Equivalents that bind
to and are directed against such Antigen, ABX shall provide an Exercise
Notice to AZ and such Antigen shall be designated a Discontinued Antigen, but
only with respect to those Antibodies that have been offered to AZ either
before such Antigen was designated a Failed Antigen or during such
[Confidential treatment requested] period. 
If neither Party wishes to pursue such Antigen, either as a
Collaboration Antigen or a Discontinued Antigen, then such Antigen shall remain
a Failed Antigen at the end of such [Confidential treatment requested] period
and, unless the Parties agree otherwise, any Antibodies that bind to and are directed against such Failed Antigen (and
any Antibody Cells and Genetic Materials with respect to such Antibodies)
created under this Agreement with respect to such Failed Antigen shall be
destroyed.

 

4.16                           Covenant by AZ. 
With respect to each Failed Antigen, neither AZ nor its Affiliates will
independently generate, or enter into an agreement with, or grant any
license to, a Third Party to generate, Antibody Equivalents that bind to and
are directed against such Failed Antigen using XenoMouse Animals or other
similar transgenic rodents for a period of [Confidential treatment requested]
after the date that such Antigen was designated as a Failed Antigen.  For the avoidance of doubt, during such
[Confidential treatment requested] period, subject to this Section 4.16,
AZ shall have the right to Exploit Non-Licensed Products with respect to such
Failed Antigen.

 

4.17                           Third Party Rights.

 

4.17.1                  Notwithstanding anything to the
contrary in this Agreement, subject to the provisions of this
Section 4.17, the licenses and grants of rights by ABX under this
Agreement shall be subject to and limited in all respects by the terms of the
applicable (a) ABX Antigen In-License(s), (b) ABX In-Licenses with
respect to any XenoMouse Methods (other

 

68

 

than Core XenoMouse
Technology), (b) ABX In-Licenses with respect to any Antibody Technology
(other than Core Antibody Technology), or (d) ABX In-Licenses with respect
to any Additional Technology, and all rights or sublicenses granted under this
Agreement shall be limited to the extent that ABX may grant such rights and
sublicenses under such ABX In-License(s), but only to the extent that AZ is
notified of such terms and limitations pursuant to
Section 2.2.1(c), 2.2.1(j), 2.2.1(k), the second sentence of
Section 4.17.2, 2.2.2(b), 2.2.3(b) or 5.3.1 and AZ elects to include the
applicable Licensed ABX IP
Rights under this Agreement pursuant to Section 4.17.2. 
ABX represents, warrants and covenants to AZ that the terms and
conditions of this Agreement are fully consistent with the ABX In-Licenses with
respect to XenoMouse Technology (other than XenoMouse Methods), Core XenoMouse
Technology and Core Antibody Technology and the licenses and grants of rights
to AZ under this Agreement will not be subject to or limited in any respect by
any terms or conditions of such ABX In-Licenses, except to the extent that such
terms and conditions are expressly set forth in this Agreement.  Additionally, and without limiting
the foregoing, the Parties acknowledge and agree that pursuant to the GenPharm
Cross License Agreement, the rights granted to AZ hereunder under certain
XenoMouse Patent Rights, including any grant of “exclusive” rights, shall be
subject to the rights granted to or retained by GenPharm International, Inc.
under the GenPharm Cross License Agreement to the extent disclosed to AZ in the
redacted copy of the GenPharm Cross License Agreement provided to AZ prior to
the Effective Date.  Notwithstanding the
foregoing, neither ABX nor its Affiliates shall disclose any AZ
Antigen-Specific Know-How Rights or AZ Antigen-Specific Patent Rights, Collaboration
Technology (other than Information specific and unique to the applicable
Collaboration Antigen, solely to the extent ABX is obligated to disclose such
Information pursuant to an ABX Antigen In-License listed on Exhibit K-2),
Development Program Technology, Additional Development Program Technology or
other Confidential Information of AZ or its Affiliates or sublicensees
(including AZ Information) to GenPharm or its Affiliates or any other party to
an ABX In-License without the prior written consent of AZ.

 

4.17.2                  With respect to each Antigen proposed
by a Party after the Effective Date pursuant to Section 2.2.1,
(a) ABX shall provide AZ with (i) such Information Controlled by ABX
in writing as is necessary to determine the applicable restrictions and Third
Party Royalties under each ABX Antigen In-License applicable to such Antigen,
which ABX reasonably believes would restrict AZ’s ability to perform the
applicable Research Program with respect to such Antigen or attach to the
Exploitation of AZ Products with respect to such Antigen under this
Agreement, and (ii) any freedom to operate analyses performed by ABX and
any other Information Controlled by ABX with respect to the proprietary status
of such Antigen, provided that ABX shall not be obligated to disclose any legal
opinion in connection with such freedom to operate analyses, (b) ABX shall
notify AZ whether such Antigen is a Proprietary ABX Antigen and provide
documentation in support thereof, and (c) ABX shall provide AZ with (i) documentation
to support any royalties owing to Third Parties under an ABX In-License listed
on Exhibit K-2 that may extend beyond the applicable Royalty Term, and
(ii) notice of any
pre-existing option or contractual right to negotiate pursuant to a written
agreement to obtain further licenses with respect to such Antigen, together
with any applicable rights and restrictions with respect thereto (collectively
((a), (b) and (c)), the “ABX In-License Information”). 
Promptly following the Effective Date, ABX shall prepare and provide AZ
with such ABX In-License Information for each Proposed Antigen listed on
Exhibit Q or Exhibits A-1 and A-2 as of the Effective Date.  Within thirty (30) days after receipt by AZ
of the applicable ABX In-License Information, AZ shall have the right to
withdraw a Proposed Antigen, by written notice

 

69

 

to ABX, if such ABX
In-License Information includes information regarding restrictions, financial
obligations or Third Party intellectual property rights that are not acceptable
to AZ, in which case such withdrawn Proposed Antigen shall be designated a
Non-Selected Antigen, but shall not count against the cap on the number of
Proposed Antigens under Section 2.2.1(n). 
With respect to each Proposed Antigen and each Collaboration Antigen,
ABX shall have an ongoing obligation to update such Information with new
Information Controlled by ABX throughout the term of this Agreement; provided,
however, that neither AZ nor its sublicensees shall have any obligation
for any Third Party Royalties that were not disclosed to AZ [Confidential
treatment requested] or pursuant to the second sentence of [Confidential
treatment requested] or, with respect to Additional Technology, XenoMouse
Methods (other than Core XenoMouse Technology) or Antibody Technology (other
than Core Antibody Technology), [Confidential treatment requested]. If a
Proprietary ABX Antigen is not designated as such prior to the designation of
such Antigen as a Proposed Antigen pursuant to Section 2.2.1(c), 2.2.1(j),
2.2.1(k) or pursuant to the second sentence of this Section 4.17.2, it
shall be deemed to be a Non-Proprietary ABX Antigen.  If, within thirty (30) days following the receipt of such ABX
In-License Information, AZ gives express written notice that it does not desire
to have such intellectual property rights included in any license grant with
respect to an Antigen, then such intellectual property rights thereafter shall
be excluded from the definition of Licensed ABX IP Rights for purposes of such
license grant.  AZ shall be responsible
for [Confidential treatment requested] pursuant to ABX Antigen In-Licenses that
are [Confidential treatment requested] or the [Confidential treatment
requested] and [Confidential treatment requested] with respect to Additional
Technology, XenoMouse Methods (other than Core XenoMouse Technology) or
Antibody Technology (other than Core Antibody Technology) and, in each case
accepted pursuant to this Section 4.17.2 (other than, except as otherwise
provided in the [Confidential treatment requested] under the [Confidential
treatment requested] as of the Effective Date or with respect to other
Proprietary ABX Antigens) and [Confidential treatment requested].  If AZ fails to give timely written notice of
its election to not include such intellectual property rights in such license
grant with respect to an Antigen, then such ABX Antigen In-License shall be
accepted and such intellectual property rights thereafter shall be included in
the Licensed ABX IP Rights with respect to such Antigen and Exhibit L
shall be amended to reflect such Third Party Royalties.  AZ shall have [Confidential treatment
requested] for any [Confidential treatment requested] that ABX may [Confidential
treatment requested] that are [Confidential treatment requested] or the
[Confidential treatment requested] or [Confidential treatment requested], which
payments shall be the [Confidential treatment requested] of [Confidential
treatment requested].  Further, ABX
shall be responsible [Confidential treatment requested] for the [Confidential
treatment requested] or resulting from the use, under this Agreement, of the
[Confidential treatment requested].

 

4.17.3                  Notwithstanding anything to the
contrary in this Agreement, the licenses and grants of rights by AZ under this
Agreement shall be subject to and limited in all respects by the terms of the
applicable AZ In-License(s), and all rights or sublicenses granted under this
Agreement shall be limited to the extent that AZ may grant such rights and sublicenses
under such AZ In-License(s). 
Notwithstanding the foregoing, promptly after (a) the
designation of a Potential Co-Development Antigen, (b) the designation of a Collaboration Antigen or (c) the
designation of a Discontinued Antigen, as applicable, AZ shall provide ABX with
such Information Controlled by AZ in writing as is necessary to determine the
applicable restrictions and Third Party Royalties under each AZ In-License
pursuant to which AZ acquired any AZ

 

70

 

Prior Antigen-Specific
Know-How Rights, AZ Prior Antigen-Specific Patent Rights, Additional Technology
Know-How Rights or Additional Technology Patent Rights applicable to such
Antigen, which AZ reasonably believes would restrict ABX’s ability to perform
the Research Program with respect to such Collaboration Antigen as set forth in
Section 2.2.2(c) or attach to the Exploitation of (i) Antibodies that
bind to and are directed against Potential Co-Development Antigen or
(ii) ABX Products that bind to and are directed against such Discontinued
Antigen, as applicable, under this Agreement (collectively, the “AZ
In-License Information”).  With respect to each Collaboration Antigen,
AZ shall have an ongoing obligation throughout the applicable Research Program
to update the AZ In-License Information with respect to any restrictions on
ABX’s ability perform such Research Program for such Collaboration Antigen with
new Information Controlled by AZ.  If,
within thirty (30) days following the designation of an Antigen as a
Discontinued Antigen, ABX gives express written notice that it does not desire
to have the intellectual property rights that are the subject of such AZ
In-License included in the license grants with respect to such Discontinued
Antigen, then such intellectual property rights thereafter shall be excluded
from the definition of Licensed AZ IP Rights for purposes of such license
grants.  ABX shall be responsible for
[Confidential treatment requested] under the AZ In-Licenses that are accepted pursuant
to [Confidential treatment requested] and any other [Confidential treatment
requested] incurred by ABX, AZ or their respective Affiliates in connection
with the Exploitation of ABX Products that bind to and are directed against the
applicable Discontinued Antigen.  If ABX fails to gives timely
written notice of its election to not include such intellectual property rights
in such license grant with respect to a Discontinued Antigen, then such AZ
In-License shall be accepted and such intellectual property rights thereafter
shall be included in the Licensed AZ IP Rights with respect to such
Discontinued Antigen.

 

4.17.4                  ABX shall, at
its sole cost and expense, obtain such license and other rights in and to the
XenoMouse Technology (other than
XenoMouse Methods), Core XenoMouse Technology and Core Antibody
Technology as are necessary to Exploit Antibodies generated therefrom as
Candidate Drugs and Licensed Products in the Commercial Field.

 

4.18                           Further Covenants and Agreements.

 

4.18.1                  AZ shall not exploit
the Licensed ABX IP Rights for any purpose other than as expressly licensed to
AZ under this Article 4.  ABX shall
not exploit the Licensed AZ IP Rights for any purpose other than as expressly
licensed to ABX under this Article 4.

 

4.18.2                  Subject to the
following sentence, if, at any time during the Antigen Designation Term or any
Research Program Term, ABX Controls Know-How Rights or Patent Rights in any
technology, other than the XenoMouse Technology, that is capable of producing fully human antibodies, ABX
shall notify AZ and if AZ wishes to obtain rights to such technology under this
Agreement, the Parties shall negotiate in good faith to amend this Agreement to
address the financial obligations associated with the Exploitation of Antibody
Equivalents generated using such technology. 
With respect to a Research Program for a Collaboration Antigen for which
AZ desires to utilize XenoMouse Lambda Animals, upon the written request of AZ
to ABX, ABX shall disclose to AZ in writing all royalties and other amounts
owing by ABX to any Third Party pursuant to any ABX In-License pursuant to
which ABX Controls XenoMouse Lambda Animals and the Parties shall enter into a
written

 

71

 

amendment to add
XenoMouse Lambda Animals to the definition of XenoMouse Animals for the limited
purpose of such Collaboration Antigen, provided that, notwithstanding anything
to the contrary in this Agreement (including the representations and
warranties, indemnification obligations and financial obligations), AZ agrees
in such amendment to pay all such royalties and other amounts [Confidential
treatment requested] pursuant to this sentence on a [Confidential treatment
requested].

 

4.18.3                  Except as
otherwise expressly set forth in the Supplementary XenoMouse Agreement and in
Sections 16.8.2 and 16.13, the Parties acknowledge and agree that ABX
shall have no obligation to transfer to AZ the XenoMouse Technology or any
portion thereof.

 

4.18.4                  If either Party
reasonably believes that technology may be available to enable the
administration or other medical use of an antibody that binds to and is
directed against intracellular antigens, then, upon the written request to the
other Party, the Parties shall negotiate in good faith to amend the definition
of Antigen to include intracellular antigens, subject to the ability to
successfully access such technology for purposes of this Agreement.

 

4.19                           Trademarks. 
For the avoidance of doubt, neither Party shall have the right under
this Agreement to any trademark,
trade dress, brand mark, trade name, brand name, logo or business symbol owned
or Controlled by the other Party or its Affiliates.

 

4.20                           Certain Restrictions and Rights
Regarding
Failed and Discontinued Antigens.  For the avoidance of doubt,
notwithstanding anything to the contrary in this Agreement (including
Section 4.1), (a) neither Party shall have the right to use the
compositions of matter of Antibodies that bind to and are directed against any
Failed Antigen (and related Genetic Material and Antibody Cells) within the
Collaboration Technology; provided, however, that (i) AZ
shall have the right to use all other Collaboration Technology with respect to
such Failed Antigen to Exploit Non-Licensed Products, and (ii) ABX shall
have the right to use all other Collaboration Technology with respect to such
Failed Antigen to Exploit ABX Products; (b) AZ shall not have the right to
use the compositions of matter of Antibodies that bind to and are directed
against any Discontinued Antigen (and related Genetic Material and Antibody
Cells) within the Collaboration Technology, other than solely with respect to
Licensed Products that bind to and are directed against a Discontinued Antigen
for which ABX has not delivered an Exercise Notice; provided, however,
AZ shall have the right to use all other Collaboration Technology with respect
to such Discontinued Antigen to Exploit Non-Licensed Products; and (c) ABX
shall not have the right to use the compositions of matter of Antibodies that
bind to and are directed against any Discontinued Antigen for which ABX has not
delivered an Exercise Notice (and related Genetic Material and Antibody Cells)
within the Collaboration Technology; provided, however, ABX shall
have the right to use all other Collaboration Technology with respect to such
Discontinued Antigen to Exploit ABX Products.

 

5.                                       DEVELOPMENT PROGRAM.

 

5.1                                 General.  Upon the designation
of at least one Candidate Drug that
binds to and is directed against a Collaboration Antigen (other than a Discontinued Antigen or
Failed

 

72

 

Antigen),
subject to the terms and conditions of this Agreement including all of the
license grants set forth in Article 4, AZ shall have the exclusive right
to research, develop and otherwise Exploit throughout the world (a) any
Candidate Drugs that bind
to and are directed against such Collaboration Antigen, (b) any
Non-Antibody Products with respect to such Collaboration Antigen, and
(c) after AZ has provided an Election Notice with respect to such Antigen,
any other Non-Licensed Products with respect to such Collaboration Antigen, in
each case for use in the Commercial Field. 
For purposes of clarity, nothing in this Section 5.1 is intended to
expand the scope of the license grants expressly set forth in Article 4.

 

5.2                                 Conduct of Development.

 

5.2.1                        ABX shall perform its obligations under
the Development Program for each Candidate Drug through Phase II Completion for
such Candidate Drug as set forth in the applicable Development Program Work
Plan pursuant to a mutually acceptable contract research services agreement
(the “Contract Services Agreement”). 
The Contract Services Agreement shall include standard contract research
services provisions, which the Parties shall negotiate in good faith and on
commercially reasonable terms within [Confidential treatment requested] after
the Effective Date (or such longer period as the Parties may mutually agree).

 

5.2.2                        ABX and AZ shall conduct their
respective obligations under such Development Program in accordance with this
Article 5, the Contract Services Agreement and the applicable Development
Program Work Plan and Program Budget, and shall use Commercially Reasonable
Efforts to accomplish the objectives thereof in accordance with the timelines
set forth therein.  Each Party shall
provide the personnel, materials, equipment and other resources required to
conduct its obligations under each Development Program.  Each Party shall perform its obligations
under each Development Program in accordance with high scientific and
professional standards, and in compliance in all material respects with the
requirements of Applicable Law and good clinical practices.  ABX and its Affiliates shall perform
all of ABX’s responsibilities under the Development Programs and shall not
enter into any subcontract with a Third Party to perform any such
responsibilities except as expressly permitted in the applicable Development
Program Work Plan or as otherwise agreed to by the Parties, provided that in
any case any such permitted subcontractor shall be reasonably acceptable to
AZ.  Notwithstanding the foregoing, AZ shall have the right, in its sole
discretion, to enter into any subcontract with a Third Party to perform
any of its responsibilities under a Development Program.

 

5.3                                 Development Program Work Plan and
Budget.

 

5.3.1                        Within [Confidential treatment
requested] following the designation of the first Research Antibody that binds
to and is directed against a Collaboration Antigen or at such other time as AZ
may elect, AZ and ABX shall jointly commence, and thereafter diligently proceed
with, the preparation, for review and approval by the Development Management
Committee, of (a) an overall Development Program Work Plan for all
activities through Phase II Completion for the development of one or more
Research Antibodies and Candidate Drugs that bind to and are directed against
such Collaboration Antigen and (b) from time to time during the applicable
Development Program, at the request of AZ, more detailed Development Program
Work Plans for each stage of such Development Program, such as, by

 

73

 

way of example, plans
for (i) identifying and, if necessary or useful, conducting any
further research, development or optimization of a Candidate Drug and, once a
Candidate Drug has been identified for clinical development, the toxicology and
pre-clinical and other IND enabling studies for such Candidate Drug, and (ii) Phase I Clinical Trials and
applicable Phase II Clinical Trials for such Candidate Drug.  The Development Program Work Plan shall
include a budget for the activities set forth therein.  The Development Program Work Plan for
a Collaboration Antigen shall, at the request of AZ, also include the use of
any Core Technology and any Additional Technology, Antibody Technology (other
than Core Antibody Technology) or XenoMouse Methods (other than Core XenoMouse
Technology) used in the Research Program for such Collaboration Antigen.  In connection with the preparation of the
Development Program Work Plan for a Collaboration Antigen, each Party shall
promptly disclose to the other (a) all of such Party’s Additional
Technology and (in the case of ABX) Antibody Technology (other than Core
Antibody Technology) and XenoMouse Methods (other than Core XenoMouse
Technology), in each case that such Party reasonably believes would be useful
for the development of Antibodies and Antibody Equivalents that bind to and are
directed against such Collaboration Antigen, and (b) any Third Party
intellectual property rights and (in the case of ABX) Third Party payments
associated with the use of such Additional Technology, Antibody Technology or
XenoMouse Methods described in clause (a) above.  The Parties shall use good faith efforts to agree on which of
such Additional Technology, Antibody Technology or XenoMouse Methods described
in clause (a) above shall be used in the Development Program Work Plan for
such Antigen and such technologies shall be described in such Development
Program Work Plan.  If, despite such good faith efforts,
the Parties are unable to agree on such Additional Technology, Antibody
Technology or XenoMouse Methods described in clause (a) above, such
dispute shall be referred to the Expert for resolution.  Subject to the foregoing, the Development Management Committee
shall be responsible for reviewing, revising and approving each Development
Program Work Plan and any amendments thereto with respect to Development
Programs that are performed by ABX.

 

5.3.2                        Based on the applicable Development
Program Work Plan, ABX shall, from time to time at the request of AZ, prepare,
for review and acceptance or rejection (as provided below) by AZ, a reasonably
detailed proposed Program Budget for implementing ABX’s obligations under the applicable
Development Program Work Plan, including details of FTEs to be utilized,
including the name and title of the Development Program Leader, and the
projected fees and expenses projected to be incurred in accordance with
Section 9.2.  AZ shall have the
right, from time to time, to solicit at least two (2) good faith
competitive bids from Third Party contract research organizations that provide
services to the research-based pharmaceutical industry for any of the work to
be performed by ABX under a Development Program, and if ABX’s proposed Program
Budget is more than the average of such good faith competitive bids for such
work, ABX shall be obligated to provide a Program Budget that [Confidential
treatment requested] for such work, provided that ABX shall not be obligated to
provide a Program Budget that is [Confidential treatment requested] for such
work.  If such average is [Confidential
treatment requested] for such work, AZ shall have the right to engage a Third
Party to perform such work.  If AZ accepts
a Program Budget pursuant to this Section 5.3.2, [Confidential treatment
requested] in performing its activities under the applicable Development
Program Work Plan set forth in such Program Budget in accordance with
Section 9.2. Any changes to the Program Budget accepted by AZ pursuant to
this Section 5.3.2 shall be governed by the provisions of the Contract
Services Agreement.

 

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5.4                                 Process Development Program.  At such time after the
selection of the first Research Antibody that binds to and is directed against
a Collaboration Antigen as AZ requests, ABX shall perform the Process
Development Program for such Candidate Drug as set forth in the Process
Science/Clinical Manufacture Agreement. 
The Development Management Committee, in consultation with the
Manufacturing and Supply Committee, shall be responsible for overseeing the
performance of each Process Development Program.

 

5.5                                 Records.  ABX shall maintain records,
in sufficient detail and in a good scientific manner appropriate for patent and
regulatory purposes, which shall be complete and accurate and shall fully and
properly reflect work done and results achieved in the performance of each
Development Program.  AZ shall have the
right, during normal business hours and upon reasonable notice, to inspect and
copy such records of ABX to the extent necessary or reasonably useful to
perform AZ’s obligations or exercise its rights under this Agreement.  ABX shall maintain such records and the
information contained therein in confidence in accordance with Article 13.

 

5.6                                 Reports and Notices.  In addition to day-to-day
communications through the Development Program Leaders, ABX shall keep AZ
informed of the progress of its activities under each Development Program by
means of written reports to the Development Management Committee.  With respect to each Candidate Drug, within
[Confidential treatment requested] following the last day of each calendar
quarter during the applicable Development Program Term, and within
[Confidential treatment requested] following each of the completion of a Phase
II Clinical Trial for such Candidate Drug that enrolled at least forty
(40) patients with the disease target being studied and the termination of the applicable Development Program, ABX shall
prepare, and provide to the Development Management Committee for submission to
AZ, a reasonably detailed written report which shall describe work done and
results achieved in the performance of such Development Program.

 

5.7                                 ABX Registrations.  With respect to those
certain Development Program activities required to be performed by ABX pursuant
to a Development Program Work Plan for a Candidate Drug, the following shall apply (but only to
the extent applicable to such activities):

 

5.7.1                        ABX shall use Commercially Reasonable
Efforts to prepare, file and maintain the INDs and other regulatory approvals
for the conduct of the Development Program for such Candidate Drug through
Phase II Completion in accordance with the applicable Development Program Work
Plan.  ABX and AZ through the
Development Management Committee shall consult and cooperate in preparing each
such IND.  Each Party shall have the
right to review and comment on all such INDs. 
No IND shall be filed with any governmental or regulatory authority
unless and until it has been approved by the Development Management
Committee.  ABX shall assume all
obligations as the sponsor of clinical investigations, including those under 21
C.F.R. Part 312 and the FDA’s Guidance for Industry on Good Clinical Practice
(April 1996) and other similar foreign requirements, with respect to such
INDs and other regulatory approvals for each Candidate Drug for which ABX is
performing the Development Program through Phase II Completion.  The foregoing shall not apply if, with
respect to an IND or other
regulatory approval, AZ decides to prepare, file and maintain the INDs and
other regulatory approvals for the conduct of the Development Program for such
Candidate Drug to the extent permitted by Applicable Law.

 

75

 

5.7.2                        Subject to the terms and conditions of
this Agreement, ABX shall own all INDs filed by it pursuant to
Section 5.7.1 through Phase II Completion for such Candidate Drug until
such time as AZ elects to assume responsibility for such INDs, subject to
Section 5.7.4.  ABX shall have no
right to use such INDs for any purpose other than the performance of its
activities under the applicable Development Program.  For so long as ABX retains ownership of such INDs for a
Candidate Drug, ABX does hereby grant to AZ and its Affiliates the right and
license to reference such INDs
and to use all data and information contained or referenced therein (a) to
perform its activities under the applicable Development Program Work Plan and
to otherwise Exploit any AZ Products and (b) to support the filing of any
Registrations for any such AZ Products. 
In addition, ABX shall permit AZ to acquire such other rights to
such submissions, to the extent necessary or useful for AZ to perform its
responsibilities or exercise its rights under this Agreement.

 

5.7.3                        ABX shall
serve as the primary regulatory contact with respect to such INDs for so long
as ABX holds such INDs.  At such times
as ABX receives communications from the FDA or other governmental or regulatory
authority, ABX shall notify AZ as soon as possible (but not more than one week)
thereafter, and shall inform AZ of the content of any such oral communications
and provide AZ with copies of any such written communications.  ABX shall not provide any response to such
communications or submit any other information or materials to such
governmental or regulatory authority without the prior approval of AZ.  ABX shall (a) notify AZ as soon as
possible in advance of all meetings and significant communications with the FDA
or other governmental or regulatory authority concerning the Candidate Drugs or
Collaboration Antigens and permit representatives of AZ to attend and
participate in such meetings, and (b) promptly prepare and deliver to AZ
complete and accurate minutes of any such meeting or communications.  The foregoing shall not apply if, with
respect to an IND, AZ decides
to serve as the primary regulatory contact with respect to such IND to the
extent permitted by Applicable Law.

 

5.7.4                        As soon as reasonably practicable
following AZ’s written request, ABX shall assign and transfer to AZ all of its
and its Affiliates’ rights, titles and interests in and to such INDs for such
Candidate Drug.

 

5.7.5                        If the Development Program Work Plan
for a Candidate Drug includes the conduct of clinical trials outside the United
States, the Parties shall consult with each other to determine the appropriate
regulatory filing approach therefor.

 

5.8                                 AZ Registrations.  Except as provided in
Section 5.7, all INDs and other filings, applications or requests
for Candidate Drugs pursuant to or in connection with the Registrations and
other regulatory documentation shall be owned by and made in the name of AZ or
its designee(s), and AZ shall have the sole right to conduct all communications
with the regulatory authorities with regard to the Candidate Drugs and AZ
Products with respect to a Collaboration Antigen.  To the extent permitted by Applicable Law, AZ shall have the sole
right to prepare, file and
maintain all INDs and other filings, applications or requests for
Candidate Drugs pursuant to or in connection with the Registrations and conduct
all communications with the regulatory authorities with regard to the Candidate
Drugs and AZ Products with respect to a Collaboration Antigen, except as
provided in Section 5.7.  ABX shall
cooperate with reasonable requests for assistance from AZ with respect to AZ’s
preparation, filing or maintenance of any

 

76

 

such INDs or other filings, applications or requests
for Candidate Drugs or any communications with the regulatory authorities with
regard to the Candidate Drugs made pursuant to this Section 5.8.  Notwithstanding anything to the contrary in
this Agreement, for the purposes of clarity, the provisions of
Section 7.12 shall govern the ownership and control of DMFs.

 

5.9                                 Election Notice.  With respect to each
Development Program performed by ABX for which ABX is conducting a
Phase II Clinical Trial (that has enrolled at least 40 patients) that is
completed, ABX shall notify AZ in writing upon Phase II Completion for a
Candidate Drug that binds to and is directed against a given Collaboration
Antigen.  Otherwise, the Parties shall
use good faith efforts to agree when the completion of, and delivery to AZ of
the complete data package for, the first Phase II Clinical Trial (that has
enrolled at least 40 patients) has occurred, which shall then be deemed to be
Phase II Completion for purposes of this Agreement.  After the first Phase II Completion for a Candidate Drug that
binds to and is directed against a Collaboration Antigen (other than a
Discontinued Antigen or Failed Antigen), or earlier, at the election of AZ, AZ shall
determine whether it wishes to proceed with the further development and
commercialization of any Candidate Drug(s) that bind to and are directed
against such Collaboration Antigen as a Licensed Product(s) by providing
written notice to ABX (an “Election Notice”).  ABX acknowledges
and agrees that the final decision as to whether or not to proceed with a
Candidate Drug as a Licensed Product will be made by AZ in accordance with AZ’s
standard internal procedures for the evaluation and prioritization of Candidate
Drugs.  If AZ fails to provide an
Election Notice to ABX for a Candidate Drug that binds to and is directed against a Collaboration Antigen,
within [Confidential treatment requested] after the first Phase II Completion for a Candidate Drug that binds to
and is directed against such Collaboration Antigen, or such longer period as
the Parties mutually agree in writing, then such Collaboration Antigen
shall be designated a Discontinued Antigen and Exhibit B shall be amended
accordingly.  If ABX delivers an
Exercise Notice to AZ with respect to such Discontinued Antigen within
[Confidential treatment requested] after the earlier of (x) the expiration
of such period and (y) the delivery of written notification from AZ to ABX
that AZ does not wish to proceed with the further development and
commercialization of any Candidate Drug(s) that bind to and are directed
against such Antigen, ABX shall
have the right to purchase any quantities of Candidate Drugs Controlled by AZ,
at AZ’s fully burdened cost, that bind to and are directed against such
Discontinued Antigen, provided that if ABX fails to provide such an Exercise
Notice within such [Confidential treatment requested] period, (a) ABX
shall have no rights with respect to such Antigen under
Sections 4.5.1(a)(i), 4.5.1(b), 4.5.1(c) and 4.5.1(d)(i) or such Candidate
Drugs that bind to and are directed against such Antigen, and (b) AZ shall
retain all such Antibodies (and any Antibody Cells and Genetic Materials with
respect to such Antibodies), whereupon the license grant set forth in Section 4.3.1
shall continue in effect subject to Section 4.5.1(e), provided that
(i) ABX shall have no further obligations with respect to the development,
process development or manufacturing of such Candidate Drugs (other than work
previously performed or obligations incurred under a Contract Services
Agreement, Process Science/Clinical Manufacture Agreement or the Manufacturing
and Supply Agreement or material transfer obligations pursuant to
Section 11.3), (ii) the diligence obligations set forth in
Section 4.12.1 (other than the reporting obligations set forth in
Section 4.12.1(c)) shall not apply to such Candidate Drugs and
(iii) the milestone payments set forth in Section 9.3.1 and the
royalties payable to ABX under Section 9.3.2 shall apply to such Candidate
Drugs, subject to any reductions required under Section 9.7 or elsewhere
under Article 9.  For the
avoidance of doubt, such Collaboration Antigen shall not be deemed to be a
Discontinued Antigen if AZ provides an

 

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Election Notice for at least one Candidate Drug that binds to and is directed against
such Collaboration Antigen.

 

5.10                           Non-Licensed Products.  Subject to the terms and conditions of this
Agreement including all of the license grants set forth in Article 4, AZ
shall have the exclusive right to Exploit Non-Antibody Products with respect to
each Collaboration Antigen (including Discontinued Antigens and Failed
Antigens) and, upon the delivery of an Election Notice with respect to a
Collaboration Antigen, all other Non-Licensed Products with respect to such
Collaboration Antigen, which Exploitation in each case may be performed by AZ or with or through one or more
Affiliates or Third Parties throughout the world.  For purposes of clarity, nothing in this
Section 5.10 is intended to expand the scope of the license grants
expressly set forth in Article 4.

 

5.11                           Right to Abandon.  Notwithstanding the foregoing, AZ shall have
the right to terminate the development of all Candidate Drug(s) that bind to and
are directed against a Collaboration Antigen, including all Development
Programs, at any time for any reason or no reason prior to the delivery of an
Election Notice with respect to such Collaboration Antigen by giving express
written notice thereof (a “Notice to Abandon”) to ABX.  If, at any time prior to the delivery of an
Election Notice for a Collaboration Antigen, ABX has a reasonable basis to
believe that AZ has abandoned the development of all Candidate Drug(s) that
bind to and are directed against such Collaboration Antigen, including all
Development Programs, ABX shall so notify AZ pursuant to Section 4.12.2,
whereupon the procedures in Section 4.12.2 shall apply.  Upon receipt by ABX of the Notice to Abandon
(a) such Collaboration Antigen shall be designated a Discontinued Antigen
and Exhibit B shall be amended accordingly and (b) the applicable
Development Program Work Plan(s) automatically shall be amended without further
action by either Party to include only those activities of the Parties that are
necessary to safely wind down the applicable Development Program(s).  Unless the Parties otherwise expressly agree
in writing, the Parties shall conduct and fund such activities in accordance
with such Development Program Work Plan(s) and Program Budget(s), as
amended.  If ABX delivers an
Exercise Notice to AZ with respect to such Discontinued Antigen within one (1)
year after receipt of such Notice to Abandon, ABX shall have the right to purchase any quantities of Candidate Drugs
controlled by AZ, at AZ’s fully burdened cost, that bind to and are directed
against such Discontinued Antigen.  If
ABX fails to deliver such Exercise Notice, (a) ABX shall have no rights
with respect to such Antigen under Sections 4.5.1(a)(i), 4.5.1(b),
4.5.1(c) and 4.5.1(d)(i) or such Candidate Drugs that bind to and are directed
against such Antigen, and (b) AZ shall retain all such Antibodies (and any
Antibody Cells and Genetic Materials with respect to such Antibodies),
whereupon the license grant set forth in Section 4.3.1 shall continue in
effect subject to Section 4.5.1(e), provided that (i) ABX shall have
no further obligations with respect to the development, process development or
manufacturing of such Candidate Drugs (other than work previously performed or
obligations incurred under a Contract Services Agreement, Process
Science/Clinical Manufacture Agreement, Manufacturing and Supply Agreement or
as set forth in Section 5.14.2 or material transfer obligations pursuant
to Section 11.3), (ii) the diligence obligations set forth in
Section 4.12.1 (other than the reporting obligations set forth in
Section 4.12.1(c)) shall not apply to such Candidate Drugs and
(iii) the milestone payments set forth in Section 9.3.1 and the
royalties payable to ABX under Section 9.3.2 shall apply to such Candidate
Drugs, subject to any reductions required under Section 9.7 or elsewhere
under Article 9.  Notwithstanding
the foregoing, after receipt of a

 

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Notice to Abandon with
respect to a Collaboration Antigen and the delivery to AZ of an Exercise Notice
with respect to the applicable Discontinued Antigen, ABX shall have the right,
in its sole discretion and at its sole cost and expense, to independently
assume responsibility for the completion of the Development Program(s) with
respect to such Candidate Drug(s) at its request.  Notwithstanding the foregoing, AZ shall have the right, in its
sole discretion, to immediately suspend or terminate a Development Program or
any other development and commercialization of a Candidate Drug because of
safety concerns, without terminating this Agreement with respect to the
applicable Collaboration Antigen pursuant to Section 16.9; provided,
however, that AZ shall be responsible for ABX’s FTE costs and expenses
incurred in connection with a safe and orderly wind down of the applicable
Development Program in accordance with customary industry practices.  For the avoidance of doubt, AZ shall have
the right to discontinue the Exploitation of any Candidate Drug that binds to
and is directed against a Collaboration Antigen in favor of another Candidate
Drug that binds to and is directed against such Collaboration Antigen and any
such substitution shall not be deemed an abandonment of a Collaboration Antigen.

 

5.12                           Development Program Leaders.  Each Party shall appoint a person (each a “Development
Program Leader”) to coordinate activities of the respective Parties under
such Development Program, which Development Program Leader of ABX shall be
reasonably acceptable to AZ.  The
Development Program Leaders shall be the primary contacts between the Parties
with respect to the applicable Development Program and shall be
responsible for coordinating the day-to-day communications regarding the
performance and results of the activities of the Parties under such Development
Program.  Each Party shall notify in writing the other Party as soon as
practicable upon such appointment and upon any change to such appointment,
provided that ABX shall obtain the consent of AZ prior to appointing or
replacing a Development Program Leader, such consent not to be unreasonably
withheld or delayed.

 

5.13                           Performance of Development Program by
AZ.

 

5.13.1                  Notwithstanding
the foregoing, in the event (a) that AZ determines, in good faith, that
ABX lacks the necessary capacity, personnel, resources or expertise, or is
otherwise unable, to perform all or part of its obligations under a Development
Program Work Plan on a timely basis in accordance with industry standards or
(b) that ABX has materially breached a material obligation under another Development Program with
respect to another Candidate Drug or Licensed Product, or (c) of a
Change in Control of ABX, then AZ
shall have the right to provide written notice to ABX specifying AZ’s concerns
with respect to ABX’s (or its successor’s) capabilities for the performance of
such Development Program.  Within ten
(10) days of such notice, or at such other time as the Parties may agree, the
Parties shall meet to discuss AZ’s concerns under clause (a) or (c) above
and any plans ABX (or its successor) may have to address such concerns.  If ABX (or its successor) is not able to
address AZ’s concerns to AZ’s satisfaction within thirty (30) days after such
meeting or in the event ABX has materially breached a material obligation under
another Development Program, AZ shall have the right to conduct all or
such part of such Development Program itself or through one or more
subcontractors or sublicensees in addition to, or in substitution for,
ABX.  In such event, Sections 5.2,
5.3, 5.5, 5.6, 5.7, 5.12 and Article 6 shall not apply with respect to all
or such parts of such Development Program.

 

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5.13.2                  ABX shall
reasonably cooperate with reasonable requests from AZ for technical assistance
with respect to activities under a Development Program that ABX is not
performing or any other development of a Candidate Drug or Licensed Product,
including by making its employees available upon reasonable notice during normal
business hours to consult with AZ on issues arising in connection with the
performance of such development.  If AZ
requests any such technical assistance from ABX, (a) the Parties shall
agree upon a plan and budget for the activities to be performed by ABX,
(b) ABX shall use Commercially Reasonable Efforts to promptly complete
such activities in accordance with such plan and budget, (c) ABX shall
provide AZ with any Information generated from such activities, which
Information shall be deemed to be Development Program Technology and shall be
subject to the terms and conditions of this Agreement, and (d) AZ shall
reimburse ABX for all reasonable
and verifiable direct out-of-pocket expenses incurred and FTEs employed by
ABX in performing such activities in accordance with such budget pursuant to
Section 9.2.  ABX shall provide to
AZ, at AZ’s expense for reasonable out-of-pocket costs incurred, any unused
Biological Materials (other than Antibodies, which are governed by
Article 7) from such activities.

 

5.14                           Term of Development Program.

 

5.14.1                  The Development Program for each
Candidate Drug that binds to and is directed against a Collaboration Antigen
shall commence on such date as AZ may request after the designation of the
first Research Antibody that binds to and is directed against such
Collaboration Antigen and, unless earlier abandoned under Section 5.11 or
terminated under Article 16, continue until the earlier of (a) the
completion of the activities described in the applicable Development Program Work
Plan through Phase II Completion for such Candidate Drug, (b) the
designation of such Collaboration Antigen as a Discontinued Antigen, and
(c) such time as AZ notifies ABX in writing of its election, in its sole
discretion, to terminate such Development Program for scientific (including
safety or efficacy), intellectual property or commercial considerations.  The expiration or termination of the
Development Programs with respect to a Collaboration Antigen shall not
constitute a termination of this Agreement with respect to such Collaboration
Antigen or, subject to Section 5.11, an abandonment of such Collaboration
Antigen.  In the event that a
Development Program with respect to a Candidate Drug is terminated prior to
completion of the activities described in the applicable Development Program
Work Plan (x) because of the designation of the applicable Collaboration
Antigen as a Discontinued Antigen, (y) because of a material breach of a
material obligation under such Development Program by ABX or (z) for scientific
(including safety or efficacy), intellectual property or commercial
considerations, AZ shall have the right to terminate the Process
Science/Clinical Manufacture Agreement and the Manufacturing and Supply
Agreement with respect to such Candidate Drug.

 

5.14.2                  Upon the termination of ABX’s
activities under a Development Program, AZ or its designee shall have
the right to assume full control of such Development Program and ABX shall
provide AZ, at AZ’s sole cost and expense (except for a termination pursuant to
Section 16.3, which shall be at ABX’s sole cost and expense), with such
reasonable assistance as is necessary to accomplish a smooth and orderly
transition of such Development Program to AZ or its designee. 
For the avoidance of doubt, any termination by AZ of a Development
Program for a Candidate Drug, either pursuant to Section 5.14.1, 16.2 or
16.3,

 

80

 

shall not constitute a
termination of AZ’s rights with respect to such Candidate Drug, which shall
remain in full force and effect, subject to Section 4.3.2.

 

6.                                       DEVELOPMENT MANAGEMENT COMMITTEE.

 

6.1                                 Composition of the Committee.  Each Development Program and each Process
Development Program shall be conducted under the direction and supervision of
the Development Management Committee, which shall be comprised of an equal
number of representatives from ABX and AZ with the requisite experience and
seniority to enable them to make decisions on behalf of the Parties with
respect to such programs.  Each Party
shall appoint its initial members of the Development Management Committee
within six (6) months following the Effective Date, or such longer period as
the Parties mutually agree.  Each Party
may substitute one or more of its representatives, in its sole discretion,
effective upon written notice to the other Party of such change, provided that
any such substitute representative shall have substantially the
equivalent experience and seniority as the representative that such Person
replaces.

 

6.2                                 Meetings.  AZ shall be responsible for
organizing and chairing the Development Management Committee meetings.  The Development Management Committee shall
meet not less than once each calendar quarter during each Development Program
Term, on such dates and at such times as agreed to by ABX and AZ.  In person meetings shall be at such
locations as the Parties mutually agree. 
Upon the mutual agreement of the Parties, any such meeting may be
conducted by telephone or videoconference; provided, however,
that not less than every other such meeting shall be in person.  At such meetings, the Development Management
Committee shall discuss the activities conducted under the Development Programs
and the Process Development Programs and the results thereof.  Each Party may permit visitors, including
its employees or agents, other than the members of the Development Management
Committee to meetings of the Development Management Committee as the Parties
mutually agree in writing prior to such meetings.  Each Party shall be responsible for its own costs in connection
with the meetings of the Development Management Committee.

 

6.3                                 Purpose of Committee.  The Development Management
Committee shall be responsible for supervising and directing the Development
Programs, in each case during the applicable Development Program Terms and, in
consultation with the Manufacturing and Supply Committee, overseeing the
Process Development Programs.  To the
extent that ABX is performing a Development Program, the Development Management
Committee shall review, revise and approve the Development Program Work Plan
for each stage of such Development Program, and review and approve any
amendments thereto.  For the avoidance
of doubt, AZ shall have the sole right to accept any Program Budgets, submitted
by ABX, in accordance with Section 5.3, provided that any changes to a
Program Budget for a Development Program shall be governed by the provisions of
the Contract Services Agreement.  Any
approval, determination or other action agreed to by the Development Management
Committee, with ABX and AZ each having one (1) vote, shall be the
approval, determination or other action of the Development Management
Committee.

 

6.4                                 Areas of Responsibility.  During each Development
Program Term for each Development Program that is performed in whole or in part
by ABX, the Development

 

81

 

Management Committee
shall have responsibility for the following identified matters: (a) design
of any optimization studies, as necessary, and all toxicology and other pre-clinical IND enabling studies;
(b) establish a clinical strategy, program and protocols for each
Candidate Drug; (c) establish an overall Development Program Work Plan, as
well as more detailed Development Program Work Plans for each stage of such
Development Program, for each Candidate Drug, including recommendations for
resourcing; (d) preliminarily evaluate Research Antibodies and Candidate
Drugs, including their productivity and viability, to determine which Candidate
Drugs to introduce into production process development; (e) oversee,
review and report on each Development Program to ABX and AZ; and (f) in the
event of a termination of a Development Program, establish a plan for the
orderly wind down or transition of such Development Program in accordance with
Section 5.11 or 5.14.2, as applicable. 
Upon the expiration or termination of a Development Program that is
performed in whole or in part by ABX for a Candidate Drug, the Development
Management Committee shall have no further obligation, responsibility or
authority regarding such Candidate Drug, except with respect to the Process
Development Program for such Candidate Drug as described below.  The Development Management Committee shall
also be responsible for (a) overseeing the performance of each Process
Development Program by ABX, including, in consultation with the Manufacture and Supply Committee, overseeing
the design and implementation of each such Process Development Program for each
Research Antibody or Candidate Drug and the supply of each Candidate Drug and
any placebo or comparator with respect thereto, and (b) reviewing,
revising and approving the Process Development and Manufacturing Plans prepared
by ABX pursuant to Section 7.2.5, and all amendments thereto, for each
such Process Development Program for each Candidate Drug.

 

6.5                                 Minutes.  Within fourteen (14) days following each
Development Management Committee meeting, a representative of the Parties to
the Development Management Committee, on an alternating basis, shall prepare
and provide to each Party a copy of the minutes of such meeting which shall set
forth, in reasonably specific detail, any approval, determination or other
action agreed to by all of the members of the Development Management Committee,
provided that such minutes are reasonably acceptable to both Parties.

 

6.6                                 Disputes.  Any disputes or
disagreements arising in the Development Management Committee that cannot be
resolved by the members of the Development Management Committee shall be
referred to the Chief Executive Officer of ABX and the Executive Vice President
of Development (or the Head of the Oncology Therapeutic Area) of AZ for
resolution.  If unable to resolve
any such dispute (other than disputes relating to a Party’s interpretation of,
or any allegation of breach of, this Agreement), then AZ shall have the final deciding vote.  Notwithstanding the foregoing, neither Party shall be obligated
to perform any activities under a Development Program that are not expressly
set forth in writing in a Development Program Work Plan.

 

7.                                       PROCESS SCIENCE AND MANUFACTURING

 

7.1                                 Negotiation and Execution of Agreements.  Within [Confidential
treatment requested] after the Effective Date (or such longer period as the
Parties may mutually agree), the Parties shall enter into the Process
Science/Clinical Manufacture Agreement and the Manufacturing and Supply
Agreement, which agreements shall be negotiated within the

 

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parameters of the
applicable terms and conditions set forth in Articles 6 and 7.  In addition to such provisions, the Process
Science/Clinical Manufacture Agreement and the Manufacturing and Supply
Agreement shall include standard contract service and manufacturing and supply
provisions, which the Parties shall negotiate in good faith and on commercially
reasonable terms.  In the event of any
conflict between this Agreement and the Process Science/Clinical Manufacture
Agreement or the Manufacturing and Supply Agreement, this Agreement shall
govern, except to the extent that the Process Science/Clinical Manufacture
Agreement or the Manufacturing and Supply Agreement (as applicable) expressly
states that it amends a specific provision of this Agreement.

 

7.2                                 Prior to First Commercial Sale.

 

7.2.1                        Discovery Phase.

 

(a)                                  ABX
shall provide AZ with reasonable research quantities of each Research Antibody
as specified in the applicable Research Program Work Plan, at ABX’s sole cost
and expense, in order for AZ to assess such Antibody and perform its activities
under the applicable Research Program and exercise its rights under
Article 2.  Notwithstanding the
foregoing, AZ shall have the
right to reasonably request additional research quantities of an Antibody,
beyond those quantities set forth in the Research Program Work Plan, for the
sole purpose of performing activities outside of the Research Programs that are
directed towards designating a Candidate Drug, but not for the purpose of
furthering any other AZ activities.  If
AZ reasonably requests additional research quantities of an Antibody for such
purpose, then ABX, at AZ’s sole cost and expense, shall be responsible for
manufacturing and supplying such additional research quantities for such
purpose.  ABX, at its sole cost and
expense, shall be responsible for such Antibody scale up activities as are
necessary to complete the activities set forth in the Research Programs.  If AZ requests additional quantities
of any Antibodies as permitted under this Section 7.2.1(a) and ABX does
not have sufficient uncommitted quantities available, ABX shall, at its sole
cost and expense, provide AZ with the cell line for each such Antibody to
enable AZ to produce such Antibody for such purposes.

 

(b)                                 Except as otherwise described in
Section 7.2.1(a) and
as provided in Sections 7.5, 7.6 and 7.13, ABX, at AZ’s sole cost and
expense subject to Section 7.13, shall be responsible for all process
development and manufacturing activities (including cell line development and
scale up) required to be conducted, prior to the designation of a Candidate
Drug, in accordance with the Process Science/Clinical Manufacture Agreement.

 

7.2.2                        Development Phase.

 

(a)                                  Except as provided in
Sections 7.2.1, 7.5, 7.6 and 7.13, under the Process Science/Clinical
Manufacture Agreement, ABX, at AZ’s sole cost and expense subject to
Section 7.13, shall be responsible for all process development activities
required to be conducted for completion of the Development Programs and such
other Phase II Clinical Trials, Phase III Clinical Trials and other development
activities in support of the Registrations for, and launch of, each Candidate
Drug and Licensed Product, as applicable.

 

83

 

(b)                                 Except as provided in
Sections 7.2.1, 7.5, 7.6 and 7.13, under the Process Science/Clinical
Manufacture Agreement or the Manufacturing and Supply Agreement, ABX, at AZ’s
sole cost and expense subject to Section 7.13, shall manufacture or have
manufactured (and AZ shall purchase from ABX) AZ’s requirements of each
Candidate Drug and Licensed Product in finished, formulated bulk or, if
selected by AZ, vialed form for use under the applicable Development Program
and in such other Phase II Clinical Trials, Phase III Clinical Trials and other
development activities in support of the Registrations for, and launch of, a
Candidate Drug or Licensed Product.

 

7.2.3                        Process Development Programs.

 

(a)                                  The Development Management Committee
shall decide which process technologies—e.g., hybridoma, recombinant, Cell:
Cell Fusion—shall be used in the Process Development Program for each lead
Research Antibody and Candidate Drug. 
AZ shall have the sole right to make decisions regarding (x) the
use of any Third Party royalty bearing technology Controlled by ABX, and the
in-licensing of Third Party intellectual property in connection with the use of
technologies that are not already Controlled by ABX or that are specific to
such Research Antibody and Candidate Drug, and (y) without limiting the
obligation of AZ to purchase (and ABX to supply) AZ’s requirements of each of
its Research Antibodies and Candidate Drugs from ABX as provided herein
[Confidential treatment requested], the need for any backup facility, and
selection, qualification and use of any Third Party manufacturing facility for
each such Research Antibody and Candidate Drug.  The Parties acknowledge and agree that (i) the decision to
commence a Process Development Program should take into consideration the
likelihood that an Antibody will be designated a Candidate Drug, (ii) it
may be necessary or useful to simultaneously pursue the development of multiple
process technologies for a particular Candidate Drug based on scientific,
technical, intellectual property or commercial considerations, (iii) the
process technology used to manufacture early clinical supplies of a Candidate
Drug may be different than the process technology used to manufacture later
stage clinical and commercial supplies of such Candidate Drug or the applicable
Licensed Product, (iv) the Parties intend that the process technology and
the facility (or facilities) to be used to manufacture a Licensed Product for
Phase III Clinical Trials will be the same as that used for commercial supply,
(v) the Process Development and Manufacturing Plan for each Licensed
Product will include reasonable plans for fully-qualified back-up manufacturing
facilities to provide for uninterrupted supply upon the occurrence of a Force
Majeure event or increased product requirements beyond the quantities that ABX
is able to supply, and (vi) the Process Development and Manufacturing Plan
for each Licensed Product will include a plan for technology transfer to AZ (or
its designee) in accordance with Section 7.10.

 

(b)                                 The process development work conducted
by or on behalf of ABX under the Process Science/Clinical Manufacture Agreement
for each Process Development Program shall, for example, include the following:
(i) establishment of product specifications for finished, formulated bulk
and vialed form of the Candidate Drugs and Licensed Products; (ii) cell
line development and optimization; (iii) development and characterization
of a research cell bank and a master cell bank; (iv) cell culture development
and purification process (using the manufacturing process technology(ies)
designated by the Development Management Committee) for producing each
Candidate Drug and Licensed Product using such master cell bank;
(v) performance of appropriate qualified, and when necessary validated,
assays to quantify

 

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the biochemical, immunological and functional
characteristics of each Candidate Drug and Licensed Product produced;
(vi) performance of stability studies; (vii) release of each Candidate Drug and Licensed
Product; and (viii) development of a transferable and scalable cGMP
process for each Candidate Drug and Licensed Product to enable AZ or its
designee (subject to Sections 7.2.2(b) and 7.3) to manufacture clinical
and commercial grade materials (including sufficient clinical and commercial quantities
thereof).

 

7.2.4                        ABX
Right to Subcontract.  ABX shall
perform its obligations under each Process Development Program and shall not
enter into any subcontract with a Third Party to perform any such activities
except as expressly permitted in the applicable Process Development and
Manufacturing Plan or as otherwise agreed to by the Parties, provided in any
event that any such permitted subcontractor shall be reasonably acceptable to
AZ, the fees and expenses of any such subcontractor shall not exceed those
budgeted in the applicable Program Budget (unless such excess costs are
pre-approved by AZ), and any such fees and expenses of any such subcontractor
shall be passed through to AZ without mark-up by ABX.

 

7.2.5                        Process
Development and Manufacturing Plans. 
Upon the request of the Development Management Committee or AZ, ABX, in
consultation with AZ, shall prepare an overall written plan for the process
development of one or more Research Antibodies and Candidate Drugs that bind to
and are directed against the applicable Collaboration Antigen and the
manufacture and supply of clinical and commercial quantities of the resulting
Licensed Products, which plan has as its goals (based upon the reasonable
projections and other assumptions provided by the Development Management
Committee) the earliest possible launch of such Licensed Products in each of
the Major Markets and a secure supply chain to be able to meet the market
demand for such Licensed Products in the Major Markets through at least the
fifth (5th) anniversary of the First Commercial Sale of such Licensed
Products (the “Process Development and Manufacturing Plan”).  In addition to the overall plan, the initial
Process Development and Manufacturing Plan for a Collaboration Antigen will
include a more detailed plan for the Process Development Program for one or
more lead Research Antibodies and the resulting Candidate Drug(s) that details
the activities set forth in Section 7.2.3 and such other activities as are
necessary to complete such Process Development Program, including specific
details of FTEs to be utilized by ABX, technologies to be employed by ABX in
accordance with Section 7.13 and any Third Party contractors proposed to
be used to implement such Process Development and Manufacturing Plan.  As soon as practicable after the designation
of a Candidate Drug, the Parties will amend the Process Development and
Manufacturing Plan to include additional detail around the clinical and
commercial manufacture and supply of such Candidate Drug and any resulting
Licensed Product.  The Parties
acknowledge and agree that each Process Development Program may be an iterative
process and, therefore, each Process Development and Manufacturing Plan will be
amended from time to time to include specific detail regarding activities to be
performed and the learning developed in the course of such Process Development
Program as well as the specific manufacturing and supply requirements for the
resulting Licensed Products.

 

7.3                                 Manufacture of Licensed Product for Commercial Sale. 
Under the Manufacturing and Supply Agreement, ABX shall manufacture or,
subject to Section 7.4, have manufactured (and AZ shall purchase from ABX
subject to Sections 7.4, 7.5, 7.6 and 7.13) AZ’s requirements of the
applicable Licensed Product for a minimum of five (5) years (or for such

 

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other period as the
Parties mutually agree in writing) following the First Commercial Sale of such
Licensed Product in a Major Market.

 

7.4                                 Manufacturing Commitment and
Capacity. 

 

7.4.1                        The
Parties acknowledge and agree that wherever possible Candidate Drugs and
Licensed Products should be manufactured at ABX’s facilities and not by
subcontractors.  Accordingly, except as
provided in Section 7.5, AZ shall give priority to ABX facilities (and
then to the facilities of ABX subcontractors), provided that such facilities
(and subcontractors) are reasonably acceptable to AZ, in selecting additional
(backup or second source) manufacturing facilities for Candidate Drugs and
Licensed Products.  [Confidential
treatment requested]  To assist the
Parties in managing the supply chain for the various Candidate Drugs and
Licensed Products, the Process Science/Clinical Manufacture Agreement and the
Manufacturing and Supply Agreement shall require that (x) ABX provide AZ
with periodic good faith forecasts of its process development and clinical and
commercial manufacturing capacity and commitments, (y) AZ provide ABX with
long range planning forecasts (which will be non-binding) of AZ’s good faith
reasonably anticipated long term requirements for the various Candidate Drugs
and Licensed Products, and (z) AZ provide ABX with customary rolling firm
forecasts for the various Candidate Drugs and Licensed Products, in each case
which forecasts shall be of sufficient duration and with sufficient frequency
to enable the Parties to effectively plan and implement secure chains for
supply of the various Candidate Drugs and Licensed Products.  ABX shall provide capacity within its own
manufacturing facility based on AZ’s forecasts for Candidate Drugs and Licensed
Products provided to ABX as described in clauses (y) and (z) above, unless
such forecasts for all Candidate Drugs and Licensed Products utilize more than
[Confidential treatment requested] (or more if additional uncommitted capacity
is available) of ABX’s total manufacturing capacity at any given time.  AZ shall be committed to using and paying
for all required manufacturing slots in AZ’s firm forecasts; provided, however,
if AZ should subsequently cancel such slots due to product failure or a
significant delay in the program, [Confidential treatment requested]

 

7.4.2                        If,
notwithstanding its good faith efforts, ABX does not have sufficient capacity
to meet its obligations under a Process Development and Manufacturing Plan
(including back-up manufacturing capabilities), ABX shall notify AZ and,
without additional cost to AZ, at AZ’s election, ABX shall either
(a) perform such activities itself through a Third Party manufacturer
reasonably acceptable to AZ, or (b) permit AZ to perform such activities
itself or with or through a Third Party manufacturer.  The Parties acknowledge and agree that continuity of supply
sourcing is desirable and, accordingly, if AZ or a Third Party manufacturer is
retained to perform certain activities or to manufacture all or a portion of a
Licensed Product, unless AZ agrees otherwise, AZ shall have the right to
continue to conduct such activities or manufacturing or to cause ABX to
continue to use such Third Party to perform such activities or manufacturing,
as applicable, even if ABX later obtains sufficient capacity to do so itself.

 

7.4.3                        If ABX uses a Third Party contractor as
permitted herein to manufacture and supply Candidate Drugs or Licensed
Products, ABX shall use good faith efforts (a) to specifically name
[Confidential treatment requested] as a [Confidential treatment
requested] under ABX’s agreement with such Third Party, and (b) to provide
in such agreement that [Confidential treatment requested] shall have the right
to [Confidential treatment requested]

 

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in the event that the Process Science/Clinical
Manufacture Agreement or the Manufacturing and Supply Agreement or such Third
Party agreement is terminated with respect to such Candidate Drug or Licensed
Product.

 

7.5                                 Failure or Inability to Perform.  Notwithstanding the foregoing, in the event
that, at any time prior to the commencement of a particular Process Development
Program activity or the manufacture and supply under the Process
Science/Clinical Manufacture Agreement or the Manufacturing and Supply
Agreement for a particular Candidate Drug or Licensed Product, (a) ABX
[Confidential treatment requested] to perform such Process Development Program
activity or manufacture and supply AZ’s requirements of such Candidate Drug or
Licensed Product under the Process Science/Clinical Manufacture Agreement or
the Manufacturing and Supply Agreement on a timely basis in accordance with
industry standards for such activities, (b) solely with respect to a
particular Process Development Program activity, there are [Confidential
treatment requested] considerations that AZ determines in good faith could
adversely affect such activity, (c) ABX has materially breached a material
obligation under another Process Development Program with respect to another
Candidate Drug or Licensed Product, (d) ABX has materially breached a
material obligation under the Process Science/Clinical Manufacture Agreement or
the Manufacturing and Supply Agreement, or (e) there is a Change in
Control of ABX, then AZ shall have the right to provide written notice to ABX
specifying AZ’s concerns with respect to ABX’s (or its successor’s)
capabilities or the performance of such Process Development Program activity or
the manufacture and supply of such Candidate Drug or Licensed Product by ABX
(or its successor)].  Within
[Confidential treatment requested] after receipt by ABX of such notice, or at
such other time as the Parties may agree, the Parties shall meet and discuss in
good faith AZ’s concerns under clause [Confidential treatment requested],
(c) or (e) above and any plans ABX (or its successor) may have to address such
concerns.  If ABX (or its successor) is
not able to address AZ’s concerns within thirty (30) days after such meeting,
or in the event ABX has materially breached a material obligation under the
Process Science/Clinical Manufacture Agreement or the Manufacturing and Supply
Agreement, then AZ shall have the right to perform such Process Development
Program activity or manufacture all or part of such requirements itself or
through one or more Third Parties, provided, however, that
in the event that AZ or a Third Party is required to establish and validate a manufacturing facility for a Candidate Drug
or Licensed Product in the circumstances described in this Section 7.5, AZ
shall have the right to have [Confidential treatment requested], of its
clinical and commercial requirements of such Candidate Drug and Licensed Product
manufactured at such facility. This Section 7.5 is not intended and shall
not be construed to relieve ABX of any of its obligations, or to limit any of
AZ’s rights and remedies, under this Agreement.

 

7.6                                 Additional Capacity or Technologies.  The Parties acknowledge and agree that in
executing a Process Development and Manufacturing Plan, ABX shall not be
required to acquire or establish facilities or technologies in addition to
those customarily used in ABX’s business from time to time.  If, at any time, AZ wishes to have process
development or manufacturing activities performed for a Research Antibody,
Candidate Drug or Licensed Product that would require ABX to acquire or
establish such additional facilities or technologies, and ABX (either alone or,
subject to Section 7.4.3, through its Third Party subcontractors) is
unable or unwilling to do so, then AZ shall have the right, at its sole cost
and expense, either itself or with or through a Third Party, to have such
activities performed, provided that in the

 

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event that AZ or a Third Party is required to
establish and validate a manufacturing facility for a Candidate Drug or
Licensed Product, AZ shall have the right to have all, or such portion as it
may determine, of its clinical and commercial requirements of such Candidate
Drug and Licensed Product manufactured at such facility.

 

7.7                                 Manufacturing and Supply Committee.  The Process Science/Clinical Manufacture
Agreement shall include a Manufacturing and Supply Committee consisting of an
equal number of representatives from each Party, with the responsibility to
oversee the manufacturing and supply process during each Process Development
Program and to assist the Development Management Committee to (a) establish
criteria and timelines for implementation of process development, manufacturing
and supply of Candidate Drugs and Licensed Products; (b) oversee the
planning and resourcing for an approved manufacturing program; (c) decide
on the use of the AZ ABL facility in the manufacturing and supply of Candidate
Drugs and Licensed Products; (d) recommend Third Party support, as
appropriate; and (e) take such other actions as are set forth in this
Article 7 or in the Process Science/Clinical Manufacture Agreement or the
Manufacturing and Supply Agreement.  The
Development Management Committee shall have oversight over the Manufacturing
and Supply Committee and each Process Development Program.  Any disputes or disagreements arising in the
Manufacturing and Supply Committee that cannot be resolved by the members of
the Manufacturing and Supply Committee shall be referred to the Chief Executive
Officer of ABX and the Executive Vice President of Operations of AZ (or one of
his or her direct reports) for resolution.  If any such dispute (other than disputes relating to a Party’s
interpretation of, or any allegation of breach of, this Agreement, the Process
Science/Clinical Manufacture Agreement or the Manufacturing and Supply
Agreement) is unable to be
resolved, then AZ shall have the
final deciding vote; provided, however, that, subject to the
relevant provisions of this Article 7, (x) neither Party shall be
obligated to perform any activities under a Process Development Program that
are not set forth in the applicable Process Development and Manufacturing Plan
and any changes to a Process Development and Manufacturing Plan that result in
changes to the applicable Program Budget shall require that ABX submit a
revised Program Budget proposal pursuant to Section 7.13, and (y) certain
technical disputes under the Process Science/Clinical Manufacture Agreement or
the Manufacturing and Supply Agreement, such as whether a particular Candidate
Drug or Licensed Product conforms to the applicable specifications, shall be
referred to an independent testing laboratory for resolution. The Parties acknowledge and agree that,
subject to the provisions of this Section 7.7, ABX shall have the right to
make day-to-day operational decisions regarding the implementation of each
Process Development Program and the conduct of its (or its subcontractors’)
manufacturing activities, each within the scope of the applicable Process
Development and Manufacturing Plan.  For
the avoidance of doubt, AZ shall have the right to accept or reject any Program
Budgets submitted by ABX pursuant to Section 7.13.  Except as otherwise provided in this
Agreement, any changes to an accepted Program Budget shall be made as provided
in the Process Science/Clinical Manufacture Agreement or the Manufacturing and
Supply Agreement, as applicable.

 

7.8                                 Information Disclosure.  From time to time during the term of the
Process Science/Clinical Manufacture Agreement and the Manufacturing and Supply
Agreement, ABX shall make available for AZ’s review, and AZ shall have
customary rights to copy, in each case at AZ’s reasonable request,
documentation regarding the process development and the manufacturing and
supply of any Research Antibody, Candidate Drug or Licensed Product and

 

88

 

any other testing or
services performed in accordance with such agreements for such Research
Antibody, Candidate Drug or Licensed Product, including the certificate of
analysis, batch records, quality control SOPs, or regulatory records directly
relating to the Candidate Drug (including filings or communications with any
governmental or regulatory authorities) (the “Manufacturing Data”).

 

7.9                                 Process
Technology.  ABX shall own
all ABX Process Technology; provided, however, that, on and after
the designation of a Candidate Drug that binds to and is directed against a
Collaboration Antigen, AZ shall own, and ABX and its Affiliates shall assign to
AZ, the Manufacturing Data and any cell lines, including research and master
cell banks, expressing Candidate Drugs, Licensed Products or other Antibodies
that bind to and are directed against such Collaboration Antigen.  Subject to the process development and
manufacturing and supply commitments set forth in this Article 7 and in
the Process Science/Clinical Manufacture Agreement and the Manufacturing and
Supply Agreement, ABX and its Affiliates shall grant to AZ a [Confidential treatment requested] worldwide,
right and license (with the right
to grant sublicenses through multiple tiers of sublicensees subject to the last
sentence of this Section 7.9) under the ABX Process Patent Rights and ABX
Process Know-How Rights to Exploit Antibodies, Candidate Drugs and Licensed
Products for which ABX is performing activities under the Process
Science/Clinical Manufacture Agreement for use in the Commercial
Field.  From and after the date that ABX
ceases to perform process development or manufacturing and supply activities
with respect to an Antibody, a Candidate Drug or a Licensed Product under the
Process Science/Clinical Manufacture Agreement and the Manufacturing and Supply
Agreement, ABX and its Affiliates shall grant to AZ the exclusive, worldwide,
[Confidential treatment requested] right and license (with the right to grant
sublicenses through multiple tiers of sublicensees subject to the last sentence
of this Section 7.9) under the
ABX Process Patent Rights and ABX Process Know-How Rights to Exploit such
Antibody, Candidate Drug and Licensed Product for use in the Commercial
Field.  Notwithstanding anything to the
contrary in this Agreement, the right of AZ to grant sublicenses under the ABX Process Patent Rights and ABX
Process Know-How Rights applicable to an Antibody, Candidate Drug or Licensed
Product shall be limited solely to the extent Reasonably Necessary to manufacture
and supply such Antibody, Candidate Drug or Licensed Product for use in
the Commercial Field (and related process development and testing activities).

 

7.10                           Technology Transfer.

 

7.10.1                  If the Process Science/Clinical
Manufacture Agreement or the Manufacturing and Supply Agreement with respect to
a particular Candidate Drug or Licensed Product is terminated for any reason or
expires, or if (a) ABX does not have sufficient capacity to meet its
obligations under a Process Development and Manufacturing Plan pursuant to
Section 7.4, (b) AZ determines, pursuant to Section 7.5,
[Confidential treatment requested], (c) AZ elects to establish additional
capacity or a back-up manufacturing facility pursuant to Section 7.6, or
(d) ABX does not provide a competitive Program Budget for a Process
Development Program or supply price for clinical or commercial supplies of a
Candidate Drug or Licensed Product pursuant to Section 7.13, ABX shall
(x) transfer to AZ (or its designee) documentation, relevant manufacturing
know-how and materials that are Reasonably Necessary to enable AZ or such
designee to manufacture clinical or commercial supplies of such Candidate Drug
or Licensed Product, and (y) comply with applicable regulatory
requirements (including

 

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obtaining any necessary regulatory approvals,
conducting any required studies and developing any other regulatory
documentation) in connection with such transfer, all as more fully described in the Process
Science/Clinical Manufacture Agreement and Manufacturing and Supply
Agreement.  In such event, ABX shall
also transfer to AZ (or its designee) (i) the cell lines for each Antibody
that binds to and is directed against the applicable Collaboration Antigen for
which process development was conducted under the Process Development and
Manufacturing Plan, and (ii) all process and analytical samples, including
stability samples, of any Candidate Drug or Licensed Product manufactured or
supplied by or on behalf of ABX. 
Further, in such event, if the ABX Process Technology for such Candidate
Drug or Licensed Product includes media, reagents or other materials that are
not available to AZ on terms and prices at least as favorable as the terms and
prices available to ABX, then ABX shall make such materials available to AZ or
its designee(s) on such terms and prices or, if such materials are proprietary
to ABX, on commercially reasonable terms and prices.

 

7.10.2                  ABX shall
provide AZ with reasonable assistance required in order to transfer the
documentation, materials and other know-how as set forth above to AZ or its
designee(s) in a timely manner and assist AZ or its designee(s) with respect to
the process development and manufacture of the Research Antibodies, Candidate
Drugs and Licensed Products, including establishing, validating and securing
regulatory approval for one or more manufacturing facilities (to the extent
applicable to the technology transferred). 
The Parties shall use Commercially Reasonable Efforts to implement any
technology transfers pursuant to this Section 7.10 sufficiently in advance
of any such termination event or expiration. 
ABX shall commit (for a period not to exceed [Confidential treatment
requested] after any such termination) to supplying AZ pursuant to its existing
commitments to AZ unless AZ has not been reasonably timely in establishing
another facility or manufacturer.

 

7.10.3                  Except as set
forth in the last sentence of Section 7.10.1, ABX shall transfer the
technologies and materials and provide AZ with the assistance, in each case as
set forth in this Section 7.10, at [Confidential treatment requested],
unless such transfer is because (a) [Confidential treatment requested],
(b) ABX does not provide a
competitive Program Budget for a Process Development Program or supply price
for clinical or commercial supplies of a Candidate Drug or Licensed Product
pursuant to Section 7.13, (c) of a termination of the Process
Science/Clinical Manufacture Agreement or the Manufacturing and Supply Agreement
upon a material breach by AZ, or (d) AZ determines in accordance
with this Article 7 ([Confidential treatment requested]) to establish
another manufacturing facility or manufacturer, despite that ABX (or its
subcontractor reasonably acceptable to AZ) has the capability and capacity, and
is willing and able, to manufacture and supply AZ’s forecasted requirements for
a Candidate Drug or Licensed Product,
in which case AZ shall reimburse ABX for its reasonable and verifiable costs
and expenses incurred in making such transfers or providing such
assistance.  [Confidential treatment
requested]

 

7.11                           Disengagement.  If the Process
Science/Clinical Manufacture Agreement or the Manufacturing and Supply
Agreement with respect to a particular Candidate Drug or Licensed Product is
terminated for any reason, ABX shall, at the request of AZ, transfer to AZ or
its designee any ongoing stability studies. 
In any such event, the Process Science/Clinical Manufacture Agreement or
the Manufacturing and Supply Agreement shall specify the

 

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procedures for such
transfer as well as the procedures for the orderly transition and transfer of
inventory and work in process.

 

7.12                           DMF. 
ABX shall be responsible for the preparation, filing, prosecution and
maintenance of, and shall own, the DMF specific for each Candidate Drug and
Licensed Product (“Drug DMF”) that ABX manufactures or has manufactured
until such time, after ABX or its subcontractor is no longer manufacturing such
Candidate Drug or Licensed Product, as AZ requests that such Drug DMF be
assigned and transferred to AZ or its designee.  ABX
shall provide AZ with sufficient opportunity to review and comment on such Drug
DMF prior to any filing with any regulatory authority, and ABX shall
incorporate the reasonable requests of AZ regarding the filing, prosecution and
maintenance of the Drug DMF for each such Candidate Drug and Licensed
Product.  ABX shall
(a) notify AZ as early as reasonably practicable in advance of all
meetings and significant communications with any regulatory or governmental
authority concerning any such Drug DMF and shall permit AZ to participate in
such meetings, (b) promptly prepare and deliver to AZ complete and
accurate minutes of any such meeting or communications, and (c) promptly
forward to AZ copies of all written communications received from any regulatory
or governmental authorities with respect to any such Drug DMF upon receipt
therefrom.  AZ and its employees shall otherwise assist ABX, upon the request of
ABX, and to the extent commercially reasonable, in preparing, filing or
maintaining such registrations and such Drug DMF.  At AZ’s request, as permitted above, ABX shall assign and
transfer all of its right, title and interest in and to such Drug DMF to AZ or
its designee.  Notwithstanding
the ownership of a Drug DMF, ABX shall grant to AZ and its sublicensees the
right and license to use and reference each Drug DMF with respect to a
Candidate Drug and Licensed Product, and the data included or referenced therein,
for purposes of exercising its rights under this Agreement.  ABX shall file and maintain, and shall
solely own, its Plant V DMF, and shall permit AZ to cross reference the
same for Candidate Drugs and
Licensed Products.

 

7.13                           Process Development Funding and Supply
Price.

 

7.13.1                  Costs and Expenses of Process
Development.  Based on the applicable Process Development
and Manufacturing Plan, ABX shall, from time to time at the request of AZ,
prepare, for review and approval by AZ, a reasonably detailed Program Budget
for implementing ABX’s process development obligations under the applicable
Process Development and Manufacturing Plan, including details of FTEs to be
utilized, and the projected fees and expenses projected to be incurred,
including associated technology access fees, royalties and other similar Third
Party payments in accordance with this Section 7.13.1 and
Section 7.13.3.  Notwithstanding
the foregoing, except as set forth in Section 7.10.3 or as may be agreed
to by the Parties for the construction of additional facilities as contemplated
by Section 7.6, AZ shall only be responsible for those costs and expenses
of ABX, its Affiliates and subcontractors that relate directly to the process
development of Candidate Drugs and Licensed Products (other than the
manufacture and supply of product) and in no event shall AZ be responsible for
any such costs or expenses associated with: the general development of processes
and technology for the [Confidential treatment requested] of antibodies or the scaling
up of such processes and technology (as distinguished from the specific
application of such processes and technologies to a Candidate Drug or a
Licensed Product); the [Confidential treatment requested] facilities of ABX or
its Affiliates or subcontractors, whether or not used for the manufacture and
supply of Candidate Drugs or Licensed Products; [Confidential treatment
requested], or

 

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validation of, other Persons to perform process
development or manufacturing activities except as provided in
Section 7.10.3; or the supply of any Antibody, Candidate Drug or Licensed
Product under this Agreement, the Process Science/Clinical Manufacture Agreement or the Manufacturing
and Supply Agreement, which shall be governed by the supply price provision in
Section 7.13.2.  AZ shall have the
right, from time to time, to solicit at least two (2) good faith competitive
bids from Third Party contract manufacturing organizations that provide process
development work to the research-based pharmaceutical industry for any of the
work to be performed by ABX under a Process Development and Manufacturing
Program, and if ABX’s proposed Program Budget is more than the average of such
good faith competitive bids for such work, ABX shall be obligated to provide a
Program Budget that matches such average for such work, provided that ABX shall
not be obligated to provide a Program Budget that is less than its fully
burdened costs (based on FTE rates) plus [Confidential treatment requested] for
such work, plus out-of-pocket expenses that are not contained within the FTE
calculation.  If such average is less
than ABX’s fully burdened costs (based on FTE rates) plus [Confidential
treatment requested] for such work, plus out-of-pocket expenses that are not
contained within the FTE calculation, and ABX declines to match such average,
[Confidential treatment requested].  If
AZ accepts a Program Budget pursuant to this Section 7.13.1, then such
Program Budget shall represent a binding contract between ABX and AZ and shall
be incorporated into the Process Science/Clinical Manufacture Agreement.  With respect to any amendments to a Process
Development and Manufacturing Plan, ABX’s fees for additional process
development activities shall not exceed its fully burdened costs (based on FTE
rates) plus [Confidential treatment requested] for such activities, plus
out-of-pocket expenses that are not contained within the FTE calculation.

 

7.13.2                  Price for each Candidate Drug and
Licensed Product.  Subject to this Section 7.13.2, the
price for each Candidate Drug or Licensed Product manufactured and supplied for
use under the applicable Development Program, or other Phase II Clinical
Trials, Phase III Clinical Trials and other development activities in support
of the Registrations, (a) through Phase II Completion (or at such other
time as the Parties mutually agree in writing) shall not exceed the
[Confidential treatment requested], and (b) following Phase II Completion
(or at such other time as the Parties mutually agree in writing) shall be a
price to be negotiated in good faith by the Parties.  The supply price for commercial quantities of each Licensed
Product manufactured by ABX shall be a price to be negotiated in good faith by
the Parties as soon as practicable after the [Confidential treatment requested]
for the Licensed Product; provided, however, that as soon as
practicable after Phase II Completion, ABX shall provide AZ with information on
factors that may affect such price, including the [Confidential treatment
requested] that are reasonably believed to affect such price, and a
[Confidential treatment requested] of the maximum price for such Licensed
Product, provided that if ABX uses a Third Party such price shall be the price
that such Third Party manufacturer charges ABX [Confidential treatment
requested].  AZ shall have the right,
from time to time, to solicit at least two (2) good faith competitive bids from
Third Party contract manufacturing organizations that provide (x) both clinical and commercial scale cGMP
manufacture of antibody therapeutics on a commercial basis (in the case of bids
for clinical supply), or (y) that provides commercial scale cGMP
manufacture of antibody therapeutics on a commercial basis (in the case of bids
for commercial supply) to the research-based pharmaceutical industry, and if
ABX’s proposed supply price is more than the average of such good faith
competitive bids for such work, ABX shall be obligated to provide a supply
price that matches such average for such supply, provided

 

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that ABX shall not be
obligated to provide a supply price that is less than its fully burdened costs
plus [Confidential treatment requested] for such work.  If such average is less than ABX’s fully
burdened costs plus [Confidential treatment requested] for such supply and ABX
does not match such average, AZ shall have the right to engage a Third Party to
manufacture such requirements.

 

7.13.3                  If, in the
course of preparing the applicable Process Development and Manufacturing Plan
or performing the applicable Process Development Program, ABX becomes aware of
any technologies that would be Reasonably Necessary in performing such Process
Development Program, ABX shall disclose to AZ such technologies and any
royalties or other payments to Third Parties (of which ABX is aware) associated
with the use of such technologies (whether such payments would be required by
ABX or AZ).  AZ shall have the right to
determine whether to use any such technologies.  If AZ elects to use any such technologies, such technologies and
any such Third Party payments disclosed to AZ pursuant to the foregoing
sentence for the use of such technologies shall be described in such Process
Development and Manufacturing Plan, or in an amendment thereto, and such Third
Party payments owed by or on behalf of ABX will be passed through to AZ
[Confidential treatment requested].  ABX
shall be responsible for [Confidential treatment requested] for, or resulting
from, the use by or on behalf of ABX of such technologies (described in the
preceding sentence) to the extent ABX or its Affiliates [Confidential treatment
requested] such royalties or payments or any Third Party intellectual property
rights with respect to such technologies [Confidential treatment requested]
such royalty or payment obligations or such Third Party intellectual property
rights to AZ pursuant to this Section 7.13.3.  In calculating its fully burdened costs
for any work under a Process Development Program pursuant to
Section 7.13.1 or for any manufacturing clinical or commercial supplies
under Section 7.13.2, ABX shall include the foregoing payments (on a pass
through basis without any mark-up) but shall not include any royalties or other
payments to ABX for the use of the Cell: Cell Fusion or any other intellectual
property rights Controlled by ABX in performing such Process Development
Program or manufacturing such supplies, except with respect to Third Party
royalty or other payments as provided in this Section 7.13.3.  For the avoidance of doubt, if AZ exercises
its rights under any license or other rights granted by ABX to AZ under any ABX
Process Patent Rights or ABX Process Know-How Rights under this Agreement, AZ
shall be solely responsible for the payment of all royalty and other payment
obligations owing to Third Parties (whether by ABX or AZ) in connection with
the exercise of such rights, except as otherwise expressly set forth in the
fourth sentence of this Section 7.13.3.

 

7.14                           Termination.  Except as expressly set
forth in Article 16, the right to terminate a Process Development Program
or the Process Science/Clinical Manufacture Agreement or the Manufacturing and
Supply Agreement and the effects of such termination shall be set forth in the
Process Science/Clinical Manufacture Agreement or the Manufacturing and Supply
Agreement, as applicable. 
Notwithstanding the foregoing, in the event of an uncured material
breach of ABX’s material obligations under (a) the Process
Science/Clinical Manufacture Agreement, AZ shall have the right to terminate
the Manufacturing and Supply Agreement, (b) the Process Science/Clinical
Manufacture Agreement, AZ shall have the right to terminate all Process
Development Programs then in effect, or (c) a Process Development Program
with respect to a Candidate Drug or Licensed Product, AZ shall have the right
to terminate the Manufacturing and Supply Agreement with respect to such
Candidate Drug or Licensed Product.

 

93

 

7.15                           Use of Technologies.  Notwithstanding anything to
the contrary in this Agreement (including AZ’s right to make certain decisions,
in accordance with this Article 7, regarding the use of any Third Party
royalty bearing technology Controlled by ABX, and the in-licensing of Third
Party intellectual property in connection with the use of technologies that are
not already Controlled by ABX or that are specific to such Research Antibody
and Candidate Drug)), ABX shall have no obligation to use technologies (other than
Cell: Cell Fusion) selected by AZ, if ABX reasonably believes the use of such
technologies in connection with the Process Development Programs, the Process
Science/Clinical Manufacture Agreement or the Manufacturing and Supply
Agreement could infringe, or constitute a misappropriation, of Third Party
intellectual property rights.

 

8.                                       CO-DEVELOPMENT AND COMMERCIALIZATION 

 

8.1                                 Co-Development Agreement.  If AZ designates a Potential
Co-Development Antigen as a Co-Development Antigen pursuant to
Section 2.2.1(l), the Parties shall negotiate in good faith to enter into
a mutually acceptable written co-development and commercialization agreement (“Co-Development
Agreement”) for the Exploitation of Antibody Equivalents that bind to and
are directed against such Co-Development Antigen on a worldwide basis.  The Co-Development Agreement shall provide
(a) the sharing of the responsibility and control over the research,
development and commercialization for such Antibody Equivalents by the Parties,
(b) a mechanism, including the choice of legal vehicle, for the equal
sharing of costs incurred in connection with the research and development of
such Antibody Equivalents after such designation, and the equal sharing of
profits and losses resulting from the commercialization of such Antibody
Equivalents, (c) that ABX will have responsibility for the process
development work for such Antibody Equivalents antibody products, and
(d) such other commercially reasonable terms as the Parties may mutually
agree.

 

8.2                                 Offer.  At AZ’s sole election, AZ may
offer to ABX the opportunity to co-develop one or more Candidate Drugs or
Licensed Products.  If AZ makes any such
offer to ABX, AZ shall provide to ABX all data and Information Reasonably Necessary
to assist ABX in making a decision with respect to such co-development
proposal, and shall grant ABX a reasonable time to make such decision.

 

9.                                       FUNDING, MILESTONE PAYMENTS AND ROYALTIES

 

9.1                                 Research Program Funding.  Except as provided in
Section 2.2.3 or 2.6.2, each Party shall be responsible for funding the
cost of performing its obligations under each Research Program.  In the event that either Party determines
that additional activities not set forth in the Research Program Work Plan for
a Collaboration Antigen should be performed under the applicable Research
Program pursuant to Section 2.2.3 or 2.6.2, the Parties shall use good
faith efforts to agree on a budget for such additional activities, which budget
shall, subject to Sections 2.2.3 and 2.6.2, set forth the direct
out-of-pocket costs to be incurred, and FTEs to be employed, by the
Parties in performing such
activities.  Unless otherwise agreed by
AZ, such additional activities with respect to a Collaboration Antigen shall be
performed by ABX (provided that, unless ABX otherwise consents in writing, all
such additional work for all Collaboration Antigens does not exceed
[Confidential treatment requested] additional FTEs in the aggregate for each
year).  Within [Confidential
treatment requested] after the end of each

 

94

 

calendar month in which additional activities (not
included in the Research Program Work Plan) are conducted, ABX and AZ each
shall furnish the other with a statement showing the direct out-of-pocket
expenses incurred, and the FTEs employed, by such Party in performing such
activities during such calendar month, provided that such costs or expenses may
not exceed the amounts set forth in such agreed upon budget for such activities
(the “Authorized Research Expenses”). 
Within [Confidential treatment requested] after the end of each calendar
month, ABX and AZ shall make payments to one another so that each Party shall
bear the applicable percentage of the total Authorized Research Expenses for
such calendar month as set forth in Section 2.2.3 or 2.6.2, as applicable.

 

9.2                                 Development Program Funding. 
AZ shall reimburse ABX for the fees and expenses incurred by ABX in
performing its activities under each Development Program or pursuant to
Section 5.13.2, provided that such fees and expenses are determined
pursuant to Section 5.3 and do not exceed the amounts set forth in the
applicable Program Budget for the relevant activities without the approval of
AZ (the “Authorized Development Expenses”); and provided  further
that if ABX uses, subject to Section 5.2.2, a Third Party contract
research organization to perform any of its activities under such Development
Program any fees charged by such Third Party or any other external costs
incurred by or on behalf of ABX shall be passed through to AZ without any
mark-up by ABX.  ABX shall invoice AZ
for its Authorized Development Expenses incurred during each calendar month,
which invoice shall be accompanied by expense reports and such other
supporting documentation as may be requested by AZ.  AZ shall pay each
such invoice within [Confidential treatment requested] after the date of
receipt of such invoice and supporting documentation.

 

9.3                                 AZ Milestone Payments and Royalties.

 

9.3.1                        Milestone Payments. 
AZ shall pay to ABX the following milestone payments within sixty
(60) days of the achievement of the applicable
milestone described below, as applicable, for each Candidate Drug that binds to
and is directed against a Collaboration Antigen:

 

	
  Milestone
  Payment

  	
   

  	
  Milestone Event

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  U.S.[Confidential treatment requested]

  	
   

  	
  Delivery to ABX of the Election Notice with respect to such
  Collaboration Antigen pursuant to Section 5.9; provided, however,
  if AZ does not deliver such Election Notice within one hundred eighty (180)
  days after Phase II Completion or such longer period as is permitted by
  Section 5.9 for a Candidate Drug that binds to and is directed against
  such Collaboration Antigen and nonetheless such Collaboration Antigen is not
  designated as a Discontinued Antigen and AZ or its Affiliate or sublicensee
  elects to continue the development of such Candidate Drug as evidenced by the
  conduct of any further development work after such period

  	
   

  

 

95

 

	
  U.S.[Confidential treatment
  requested]

  	
   

  	
  Administration of a Licensed Product containing such Candidate Drug
  to the first patient in the first Phase III Clinical Trial

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  U.S.[Confidential treatment
  requested]

  	
   

  	
  Acceptance of BLA for such Licensed Product by the applicable
  regulatory authorities in a Major Market

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  U.S.[Confidential treatment
  requested]

  	
   

  	
  First approval of all Registration(s) of such Licensed Product
  required for First Commercial Sale in a Major Market

  	
   

  

 

Each milestone shall be payable [Confidential
treatment requested] for a Candidate Drug or Licensed Product containing such
Candidate Drug irrespective of (a) the number of [Confidential treatment
requested] that are conducted, [Confidential treatment requested] that are
filed and [Confidential treatment requested] that are approved for such
Licensed Product in a country, (b) the number of [Confidential treatment
requested] in which such milestones are achieved, (c) the number of
[Confidential treatment requested] for which such Licensed Product is developed
or commercialized, or (d) the number of [Confidential treatment requested]
that are Derived from such Licensed Products. 
Further, in the event that AZ discontinues the development or
commercialization of a Candidate Drug or Licensed Product, as applicable, that binds to and is directed against
a Collaboration Antigen in favor of another Candidate Drug or Licensed Product that binds to and is directed against
such Collaboration Antigen, any milestones paid to ABX with respect to such
first Candidate Drug or Licensed Product shall be credited against any
milestones, if any, due with respect to such subsequent Candidate Drug or
Licensed Product.

 

9.3.2                        Licensed Product Royalties. 
AZ shall pay to ABX the following royalties based on the annual Net
Sales of each Licensed Product sold by AZ and its Affiliates during the Royalty
Term for such Licensed Product.  The
royalty rates shall be determined on a Product-by-Product basis as follows:

 

	
  Annual Net Sales

  	
   

  	
  Non-Proprietary

  ABX Antigen

  	
   

  	
  Proprietary

  ABX Antigen

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  For that portion of aggregate Net Sales that is less
  than U.S.$250 million

  	
   

  	
  [Confidential treatment
  requested]

  	
   

  	
  [Confidential treatment
  requested]

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  For that portion of aggregate Net Sales that equals
  or exceeds U.S.$250 million but is less than U.S.$500 million

  	
   

  	
  [Confidential treatment
  requested]

  	
   

  	
  [Confidential treatment
  requested]

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  For that portion of aggregate Net Sales that equals
  or exceeds U.S.$500 million but is less than U.S.$1 billion

  	
   

  	
  [Confidential treatment
  requested]

  	
   

  	
  [Confidential treatment
  requested]

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  For that portion of aggregate Net Sales that equals
  or exceeds U.S.$1 billion

  	
   

  	
  [Confidential treatment
  requested]

  	
   

  	
  [Confidential treatment
  requested]

  	
   

  

 

96

 

For purposes of this Section 9.3.2,
a Non-Proprietary ABX Antigen shall be any Collaboration Antigen other than a
Proprietary ABX Antigen.  For the
avoidance of doubt, if ABX does not designate an Antigen as a Proprietary ABX
Antigen pursuant to Section 4.17.2 before such Antigen is designated as a
Proposed Antigen, such Antigen shall be a Non-Proprietary ABX Antigen.  Further, the determination as to whether a
Proprietary ABX Antigen remains a Proprietary ABX Antigen shall, with respect
to any royalty payment, be made at the time such royalty payment obligation
arises.

 

The calculation of royalties
under this Section 9.3.2 shall be
conducted separately for each Licensed Product.  Thus, if AZ sells more than one Licensed Product, the thresholds
and ceilings in this Section 9.3.2 shall
apply separately to each Licensed Product.

 

9.3.3                        Third
Party Royalties.  Notwithstanding
the applicable Royalty Term, AZ shall be responsible for all Third Party
Royalties and any other license
fees, milestones, royalties and other payments owed to any Third Party by ABX,
AZ or their respective Affiliates in connection with all Licensed
Products sold by AZ, its sublicensees (other than ABX, its Affiliates and their
respective sublicensees) and their respective Affiliates except as provided in
[Confidential treatment requested] and the [Confidential treatment
requested].  In the event that AZ is
responsible for any Third Party Royalties pursuant to this Section 9.3.3
that are owed to any Third Party by ABX or its Affiliates, AZ shall pay such
Third Party Royalties to ABX and ABX shall directly pay such Third Party
Royalties to such Third Party.  ABX
shall be responsible for all royalties and other payments owed to Third Parties
(a) except as otherwise set forth in the last sentence of [Confidential
treatment requested], pursuant to those certain ABX In-Licenses that are listed
on Exhibit K-1 and Exhibit K-2; (b) pursuant to ABX In-Licenses
(i) pursuant to which ABX Controls the XenoMouse Methods (other than Core
XenoMouse Technology), Antibody Technology (other than Core Antibody
Technology) and Additional Technology that is included in the applicable
Research Program Work Plan or Development Program Work Plan, but only to the
extent that ABX or its Affiliates [Confidential treatment requested] such royalties
or other payments or Third Party intellectual property rights [Confidential
treatment requested] or (ii) pursuant to which ABX Controls the Core
Technology; (c) in consideration for the license of Patent Rights to the
extent they contain claims, the infringement of which is (i) necessary to
perform the activities that are Reasonably Necessary to conduct a Research
Program generally (but not with respect to a specific antibody or antigen),
(ii) Reasonably Necessary to exercise AZ’s license under Section 4.1
(but not with respect to a specific antibody or antigen) upon the termination
of a Research Program or Development Program under Section 16.2, 16.3 or
16.7, or (iii) necessary to use, offer for sale, sell or import (but not
make) Antibodies that bind to and are directed against such Collaboration
Antigen in the Commercial Field (but not with respect to a specific antibody or
antigen) by reason of the fact that such Antibodies were generated from
XenoMouse Animals (as distinguished from antibodies that were generated other
than from XenoMouse Animals); (d) in consideration for the license of
Patent Rights to the extent they contain claims that cover Core Technology used
in

 

97

 

the applicable Research Programs or the Development
Programs; or (e) in consideration for the license of Patent Rights to the
extent they contain claims that cover (i) the XenoMouse Methods (other
than Core XenoMouse Technology), Antibody Technology (other than Core Antibody
Technology) and Additional Technology that is Controlled by ABX and was
originally disclosed by ABX for use under the applicable Research Programs or
Development Programs, in each case used in the applicable Research Programs or
the Development Programs [Confidential treatment requested], to the extent that ABX or its
Affiliates [Confidential treatment requested] of such royalties or payments or
the existence of Third Party intellectual property rights at the time of the
decision to include such Additional Technology or such additional Antibody
Technology or XenoMouse Methods in the applicable Research Programs or the
Development Programs [Confidential treatment requested], and ABX [Confidential treatment requested] such royalty or
payment obligations or intellectual property rights to AZ pursuant to
[Confidential treatment requested].  Following the expiration of the Royalty Term
applicable to a Product, to the extent ABX continues to owe royalties to a
Third Party pursuant to any ABX In-License set forth on Exhibit K-2 based
on the Exploitation of such Product, [Confidential treatment requested]
additionally shall be responsible for all royalties owing to such Third Party
pursuant to such ABX In-License, [Confidential treatment requested], the second
sentence of [Confidential treatment requested] or [Confidential treatment
requested]

 

9.3.4                        Non-Licensed Product Royalties. 
AZ shall pay to ABX royalties equal to [Confidential treatment
requested] of Net Sales of all
Non-Licensed Products with respect to Collaboration Antigens or Discontinued
Antigens and all Non-Antibody Products with respect to Failed Antigens, in each
case sold by AZ and its Affiliates that are Derived through the use of
(a) the Collaboration Technology, or (b) Information Derived through
the use of Collaboration Technology (including the structure or other
attributes of an Antibody-Antigen complex), unless such Collaboration
Technology or Information could have been created (as reasonably demonstrated
by AZ) [Confidential treatment requested] or was created (as reasonably
demonstrated by AZ) using technology [Confidential treatment requested] during
the applicable Royalty Term for such Non-Licensed Product or Non-Antibody
Product, as applicable.  For the
avoidance of doubt, this Section 9.3.4 shall not apply to any Licensed
Products or any Non-Licensed Products (other than Non-Antibody Products) with
respect to Failed Antigens.

 

9.4                                 ABX Milestone Payments and Royalties.

 

9.4.1                        Discontinued Antigen Milestones.

 

(a)                                  For each Discontinued Antigen that is
so designated at any time prior to the designation of a Candidate Drug that
binds to and is directed against such Antigen (other than pursuant to
Section 2.6.5), ABX shall pay to AZ the following milestone payments
within [Confidential treatment requested] of the achievement of the applicable milestone described below, as
applicable, for each ABX Product that binds to and is directed against such
Discontinued Antigen:

 

98

 

	
  Milestone
  Payment

  	
   

  	
  Milestone Event

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  U.S.[ Confidential treatment requested]

  	
   

  	
  Delivery to AZ of an Exercise Notice with respect to such
  Discontinued Antigen or, if no such Exercise Notice is provided or required
  for an ABX Product, the first approval of all Registration(s) of such ABX
  Product required for First Commercial Sale in a Major Market

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  U.S.[ Confidential treatment requested]

  	
   

  	
  First approval of all Registration(s) of such ABX Product required
  for First Commercial Sale in a Major Market

  	
   

  

 

(b)                                 For each Discontinued Antigen that is
so designated at any time after a Candidate Drug is designated with respect to
such Antigen or pursuant to Section 2.6.5 but before the commencement of
the first Phase II Clinical Trial for a Candidate Drug that binds to and is
directed against such Antigen, ABX shall pay to AZ the following milestone
payments within [Confidential treatment requested] of the achievement of the applicable milestone described below for
each ABX Product:

 

	
  Milestone
  Payment

  	
   

  	
  Milestone Event

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  U.S.[ Confidential treatment requested]

  	
   

  	
  Delivery to AZ of an Exercise Notice with respect to such
  Discontinued Antigen or, if no such Exercise Notice is provided or required
  for an ABX Product, administration of such ABX Product to the first patient
  in the first Phase III Clinical Trial

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  U.S.[ Confidential treatment requested]

  	
   

  	
  Administration of such ABX Product to the first patient in the first
  Phase III Clinical Trial

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  U.S.[ Confidential treatment requested]

  	
   

  	
  First approval of all Registration(s) of such ABX Product required
  for First Commercial Sale in a Major Market

  	
   

  

 

(c)                                  For each Discontinued Antigen that is
so designated at any time after the commencement of the first Phase II Clinical
Trial for a Candidate Drug that binds to and is directed against such Antigen,
but before an Election Notice is provided by AZ with respect to such Antigen,
ABX shall pay to AZ the following milestone payments within [Confidential
treatment requested] of the
achievement of the applicable milestone described below for each ABX Product:

 

	
  Milestone
  Payment

  	
   

  	
  Milestone Event

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  U.S.[ Confidential treatment requested]

  	
   

  	
  Delivery to AZ of an Exercise Notice with respect to such
  Discontinued

  	
   

  

 

99

 

	
   

  	
   

  	
  Antigen or, if no such Exercise Notice is provided or required for
  an ABX Product, administration of such ABX Product to the first patient in
  the first Phase III Clinical Trial

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  U.S.[ Confidential treatment requested]

  	
   

  	
  Administration of such ABX Product to the first patient in the first
  Phase III Clinical Trial

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  U.S.[ Confidential treatment requested]

  	
   

  	
  First approval of all Registration(s) of such ABX Product required
  for First Commercial Sale in a Major Market

  	
   

  

 

Each milestone under Section 9.4.1 shall be
payable [Confidential treatment requested] for an ABX Product that binds to and is directed against a
Discontinued Antigen irrespective of (a) the number of [Confidential
treatment requested] that are conducted and [Confidential treatment requested]
that are approved for such ABX Product in a country, (b) the number of
[Confidential treatment requested] in which such milestones are achieved,
(c) the number of [Confidential treatment requested] for which such ABX
Product is developed or commercialized, or (d) the number of [Confidential
treatment requested] that are Derived from such ABX Product.  Further, in the event that ABX discontinues
the development or commercialization of an ABX Product that binds to and is directed against a Discontinued Antigen in
favor of another ABX Product that
binds to and is directed against such Discontinued Antigen, any
milestones paid to AZ with respect to such first ABX Product shall be credited
against any milestones, if any, due with respect to such subsequent ABX
Product.

 

9.4.2                        ABX Product Royalties. 
ABX shall pay to AZ the following royalties based on the Net Sales of
all ABX Products sold by ABX and its Affiliates:

 

(a)                                  For the ABX Products that bind to and
are directed against each Discontinued Antigen that is so designated at any
time prior to the designation of a Candidate Drug that binds to and is directed
against such Antigen (other than pursuant to Section 2.6.5), the
royalty rate shall be [Confidential treatment requested] of Net Sales.

 

(b)                                 For the ABX Products that bind to and
are directed against each Discontinued Antigen that is so designated at any
time after a Candidate Drug is designated with respect to such Antigen or
pursuant to Section 2.6.5 but before the commencement of the first Phase
II Clinical Trial for a Candidate Drug that binds to and is directed against
such Antigen, the royalty rate shall be [Confidential treatment
requested] of Net Sales.

 

(c)                                  For the ABX Products that bind to and
are directed against each Discontinued Antigen that is so designated at any
time after the commencement of the first Phase II Clinical Trial for a
Candidate Drug that binds to and is directed against such Antigen, but before
an Election Notice is provided by AZ with respect to such Antigen, the
royalty rate shall be [Confidential treatment requested] of Net Sales.  For the avoidance of doubt, once AZ has
provided an Election Notice with respect to a Collaboration Antigen, such
Antigen shall never become a Discontinued Antigen and this Section 9.4.2
shall not apply with respect thereto.

 

100

 

(d)                                 For ABX Products that bind to and are
directed against Failed Antigens that are Derived through the use of
(i) Additional Development Program Technology that is conceived or
generated in connection with any activities performed pursuant to
Section 2.6.2(c), (ii) the Collaboration Technology, or
(iii) Information Derived through the use of Collaboration Technology
(including the structure or other attributes of an Antibody-Antigen complex),
unless such Collaboration Technology or Information could have been created (as
reasonably demonstrated by ABX) other than by using XenoMouse Animals or was
created (as reasonably demonstrated by ABX) using technology (including any
rodent strain other than the XenoMouse Animals) other than the XenoMouse
Technology during the applicable Royalty Term for such ABX Product, the royalty
rate shall be [Confidential treatment requested] of Net Sales.

 

(e)                                  ABX
will be responsible for all Third Party Royalties based on the annual Net Sales of all ABX Products and any other
license fees, milestones, royalties and other payments owed to any Third Party
by ABX, AZ or their respective Affiliates in connection with all ABX Products
sold by ABX, its sublicensees (other than AZ, its Affiliates and their
respective sublicensees) and their respective Affiliates other than those Third Party Royalties under the
AZ In-License(s) that are disclosed to ABX and rejected pursuant to
Section 4.17.

 

9.5                                 Diagnostic or Veterinary Products.  The royalty rates and milestone payment
amounts in Sections 9.3 and 9.4 [Confidential treatment requested].  In
the event that a Party develops a Product for commercial diagnostic or
veterinary purposes, the Parties shall [Confidential treatment requested] for diagnostic or veterinary antibody
products, as applicable.

 

9.6                                 Net Sales by Sublicensees.  Any
and all Net Sales of AZ Products or ABX Products by sublicensees of AZ or ABX,
as applicable, shall be excluded from the royalty calculations in
Sections 9.3 and 9.4.  With respect
to Net Sales of such Products by such sublicensees (other than Distributors) to
Third Parties (including Distributors) on which royalties are paid to AZ or
ABX, as applicable, royalties to ABX under Section 9.3 and to AZ under
Section 9.4, with respect to such Net Sales, for any period, shall equal
the lesser of (a) any additional amount of royalties that would result
from the foregoing royalty calculations under Sections 9.3 and 9.4, if
such Net Sales were treated as Net Sales by AZ or ABX, as applicable, for
purposes of the foregoing calculations during such period, and (b) [Confidential
treatment requested] of any
amounts paid to AZ or ABX, as applicable, or its Affiliates by such
sublicensees with respect to such Net Sales during such period.  For the avoidance of doubt, no
royalty payments shall be due under this Section 9.6 with respect to
(x) any upfront license fees or milestone payments made to AZ or ABX, as
applicable, or its Affiliates, or (y) any payments made to AZ or ABX, as
applicable, or its Affiliates (i) under a credit facility that is on
standard commercial rates and terms, (ii) in consideration of (A) any
issuance of equity or debt securities by AZ or ABX, as applicable, or its
Affiliates, (B) any supply of such Products by or on behalf of AZ or ABX,
as applicable, or its Affiliates, or (C) any research, development or
other activities relating to such Products that AZ or ABX, as applicable, or
its Affiliates has or has had performed or may perform, or have performed, in
the future, provided that such payments do not exceed the fair market value of
such securities, supply or activities, as applicable, (iii) as
reimbursement of actual patent prosecution and maintenance costs and expenses,
or (iv) in connection with awards or judgments in patent or other
intellectual property right enforcement that are not attributable to lost sales
or profits with respect to an AZ Product or ABX Product, as

 

101

 

applicable. 
For the avoidance of doubt, the operation of this Section 9.6 shall
be subject to the provisions of Section 9.7.4.  Notwithstanding the foregoing, in the event that ABX or any of
its Affiliates is a sublicensee of an AZ Product, sales by sublicensees of ABX
will be treated as Net Sales of ABX for purposes of determining royalties owed
to AZ under such sublicense.

 

9.7                                 Reduction of Royalty.

 

9.7.1                        Compulsory
Licenses.  In the event that a court
or a governmental agency of competent jurisdiction requires AZ or its Affiliate
or sublicensee to grant a compulsory license to a Third Party permitting such
Third Party to make and sell the products with respect to a Collaboration
Antigen in a country, then all Net Sales of Licensed Products by such
sublicensee with respect to such Collaboration Antigen in such country shall be
excluded from the royalty calculations set forth in Section 9.6, and the
royalty rate to be paid by AZ on all Net Sales of Licensed Products that bind to and are directed against
such Collaboration Antigen shall automatically be reduced to the lesser of
(a) the applicable royalty rate provided in Section 9.3 or 9.6, as
applicable, with respect to such Licensed Products, if any, and
(b) [Confidential treatment requested] of the royalty rate under such
compulsory license, during the time period when such compulsory license is in
effect and being exercised.

 

9.7.2                        No
Valid Claim.  In the event that, or
from and after the date on which, a Licensed Product, including any combination
product, is Exploited in a country and is not covered by a Valid Claim of a
Licensed ABX IP Right or a Collaboration Patent Right in such country, the
royalty rate payable to ABX by AZ under Section 9.3.2 with respect to
sales of such Product in such country shall be reduced by [Confidential
treatment requested].

 

9.7.3                        Royalty
Stacking.  For Licensed Products
sold by AZ or its Affiliates or, solely for purposes of royalty calculations
pursuant to Section 9.6(a), sublicensees to Third Parties, in any country
where the sum of royalty payments owed by AZ and its Affiliates to any Third
Parties in consideration for the license under Patent Rights of such Third
Parties to the extent containing claims that cover such Licensed Products
(including any royalties on the making, having made or exporting of such
Licensed Products in or from the country(ies) where such Licensed Products are
manufactured) exceeds [Confidential treatment requested] of Net Sales for a
given Licensed Product in such country (but excluding any royalty payments that
may be owed to Third Parties in consideration for a license under the
[Confidential treatment requested], AZ shall have the right to reduce the
amount of royalties owing to ABX under Section 9.3.2 for such Licensed
Product sold in such country by [Confidential treatment requested] of the
amount by which such royalty payments exceed [Confidential treatment requested]
of Net Sales of such Licensed Products in such country; provided, however,
that AZ shall not be entitled, by operation of this sentence, to reduce the
royalties owing to ABX under Section 9.3.2 to less than
(a) [Confidential treatment requested] of Net Sales by AZ and its
Affiliates of such Licensed Product that binds to and is directed against a
Non-Proprietary ABX Antigen in such country, and (b) [Confidential
treatment requested] of Net Sales by AZ and its Affiliates of such Licensed
Product that binds to and is directed against a Proprietary ABX Antigen in such
country.

 

102

 

9.7.4                        Royalty
Floor.  Notwithstanding anything to
the contrary in this Agreement, the royalties owing by AZ to ABX under this
Article 9 on Net Sales by AZ, its Affiliates or sublicensees shall not be
reduced by operation of the provisions of Section 9.6 or 9.7 or
Exhibit O, at any time so that such royalties are less than the amounts of
the royalties owing by ABX to Third Parties under ABX In-Licenses relating to
the Core Technology or ABX In-Licenses listed on Exhibit K-2 with respect
to such Net Sales.  ABX shall invoice AZ
for any additional royalties owing by reason of the previous sentence, in
excess of the royalties already paid by AZ, within [Confidential treatment
requested] after receiving the applicable royalty report from AZ under
Section 9.9 setting forth the quarterly Net Sales of each Product in each
country, and AZ shall pay such additional royalties to ABX within [Confidential
treatment requested] after delivery of such invoice.  Except to the extent restricted by ABX’s confidentiality obligations
under ABX In-Licenses, each such invoice shall be accompanied by such
documentation as AZ reasonably requests to confirm the amount of such
additional royalties.  If, due to
confidentiality obligations, ABX is precluded from providing such documentation
to AZ or AZ otherwise wishes to confirm such additional royalties, then AZ
shall have the right to have an independent Third Party, selected by AZ and
reasonably acceptable to ABX, review such documentation; provided, however,
that such Third Party shall agree to be bound by confidentiality obligations
reasonably required by ABX, shall disclose to AZ only whether or not the
invoiced amount of such additional royalties applies the correct royalty rates,
and shall not disclose any other information or details to AZ or any other
Person.  Any review conducted by such
Third Party under this Section 9.7.4 shall be at the expense of AZ, unless
a variation or error producing an increase exceeding [Confidential treatment
requested] of the amount stated for any period is established in the course of
any such review, whereupon all costs relating to the audit of such period will
be paid by ABX.  For purposes of
clarity, this Section 9.7.4 shall not apply to royalties owing by ABX
under such ABX In-Licenses to the extent calculated on the basis of
sublicensing revenues (and not on the basis of sales revenues).

 

9.8                                 Sales Subject to Royalties.  Sales
between a Party, its Affiliates and sublicensees (other than Distributors)
shall not be subject to royalties hereunder. 
Royalties shall be calculated on a Party’s, its Affiliates’ or, subject
to Section 9.6, its sublicensees’ (other than Distributors’) sale of the
Products to a Third Party (including Distributors).  Royalties shall be payable [Confidential treatment requested] for any given batch of the
Products.  For purposes of determining
Net Sales, the Products shall be deemed to be sold when invoiced and a “sale”
shall not include, and no royalties shall be payable on, transfers by a Party,
its Affiliates or sublicensees of free samples of Products or clinical trial
materials containing Candidate Drugs or Products or other transfers or
dispositions for charitable, promotional, pre-clinical, clinical, regulatory or
governmental purposes, or sales of Products that are used in animals or solely for screening patients who
have been diagnosed with a disease, state or condition for eligibility to be
treated for such disease, state or condition with a Product or for monitoring
patients who are or have been treated with a Product.

 

9.9                                 Royalty Reports and Payments.  During the Royalty Term for a Product (or
such longer period as royalties are owing under the last sentence of
Section 9.10), AZ in the case of AZ Products and ABX in the case of ABX
Products (the “Payor”) shall make written reports to the other Party
(the “Payee”) within [Confidential treatment requested] after the end of
each calendar quarter, stating in each such report the number, description and
aggregate [Confidential treatment requested] of such Product sold during the
calendar quarter, and the

 

103

 

calculation of the royalties and other amounts payable
under this Article 9.  Concurrently
with the making of such reports, the Payor shall pay to the Payee all royalties
payable under this Article 9.

 

9.10                           Royalty Term. 
Royalties shall be due under this Article 9 with respect to a
Product only during the applicable Royalty Term for such Product.  Upon termination of the Royalty Term with respect to a Product
(or such longer period as royalties are owing under the last sentence of this
Section 9.10) in any
country, the license grants to AZ or to ABX in Article 4, as applicable,
shall convert to non-exclusive and shall become fully paid-up, perpetual and
irrevocable with respect to such country and the Net Sales of such Product in
such country shall be excluded from the royalty calculations in
Section 9.3 or 9.4, as applicable (including the thresholds and ceilings).  Notwithstanding the foregoing, after the
applicable Royalty Term for a Product, AZ shall be responsible for any ongoing
Third Party Royalties applicable to such Product pursuant to the last sentence
of Section 9.3.3 to the extent [Confidential treatment requested] pursuant
to [Confidential treatment requested], the second sentence of [Confidential
treatment requested] or [Confidential treatment requested].

 

9.11                           Records; Inspection.  Each Party shall keep (and cause its
sublicensees and its and their respective Affiliates to keep) complete, true
and accurate books of account and records that fairly reflect its Net Sales of
Products and, with respect to ABX, the FTE costs and expenses incurred in
connection with the Research Programs and the Development Programs, all in
sufficient detail to confirm the accuracy of any payments required or made
hereunder.  Such books and records shall
be maintained by each Party for at least three (3) years following the end of
the calendar quarter to which they pertain. 
Such records of a Party and its Affiliates shall be open for inspection
during such three-year period by an independent certified public accounting
firm of internationally recognized standing, chosen by the other Party, and
reasonably acceptable to the audited Party, which approval shall not be
unreasonably withheld or delayed, for the purpose of verifying the accuracy of
any payments required or made hereunder. 
All such inspections may be made no more than once each calendar year at
reasonable times mutually agreed by the Parties.  The independent accountants chosen by the auditing Party will be
obliged to execute a reasonable confidentiality agreement prior to commencing
any such inspection.  Inspections
conducted under this Article 9 shall be at the expense of the auditing
Party, unless a variation or error producing an increase exceeding
[Confidential treatment requested] of the amount stated for any period is
established in the course of any such inspection, whereupon all costs relating
to the audit of such period will be paid by the audited Party.

 

9.12                           Payment Method.  All payments by a Party under this Agreement shall be in United
States Dollars in immediately available funds and shall be made by wire
transfer to such bank account as designated in writing by the receiving Party
to the paying Party.

 

9.13                           Currency Conversion.  For the purpose of computing the Net Sales of Products sold in a
currency other than U.S. Dollars, such currency will be converted from local
currency to U.S. Dollars by: (a) AZ in accordance with the rates of
exchange for the relevant month for converting such other currency into U.S.
Dollars used by AZ’s internal accounting systems, which are independently
audited on an annual basis (which rates shall be disclosed in each applicable
royalty report), and (b) ABX using the average of the exchange
rates for the purchase of U.S. Dollars, quoted for current transactions
reported under the heading “Currency

 

104

 

Trading – Exchange Rates” in The Wall Street
Journal in the United States Western edition on the last business day of
each month in the calendar quarter to which such payment pertains.  If The Wall Street Journal ceases to
be published, then the rate of exchange to be used shall be that reported in
such other business publication of national circulation in the United States as
the Parties reasonably agree.

 

9.14                           Late Payments. 
Any payments due from a Party that are not paid on the date such
payments are due under this Agreement shall bear interest at the lesser of
(a) the Prime Rate as reported under the heading “Money Rates” in The
Wall Street Journal in the United States Western edition on the date such
payment is due, plus an additional [Confidential treatment requested],
compounded annually, or (b) the maximum rate permitted by Applicable Law,
in each case calculated on the number of days such payment is delinquent.  This Section 9.14 shall in no way limit
any other remedies available to any Party. 
If The Wall Street Journal ceases to be published, then the prime
rate to be used shall be that reported in such other business publication of
national circulation in the United States as the Parties reasonably agree.

 

9.15                           Taxes.  Any payments to be made by the Payor to the Payee under this Agreement
shall be without deduction of any bank or transfer charges.  The Payee shall pay any and all taxes levied
on account of, or measured exclusively by, all payments it receives under this
Agreement.  Amounts payable under this
Agreement shall be paid by the Payor without deduction for any tax or duty
levied outside the Payee’s country; provided, however, that the
Payor shall have the right to withhold income tax (and other withholding tax)
as required by applicable tax laws.  In
the case of such withholding being applicable, the Payee may apply for the
reduction of rate of withholding tax under any applicable tax treaty with the
assistance of the Payor, and provided that evidence of acceptance of this claim
is submitted to the Payor before payment is due, the Payor shall apply the
reduced rate accordingly.  If applicable
laws require that taxes be withheld, the Payor will deduct those taxes from the
remittable payments, make timely payment of the taxes to the proper taxing
authority and send proof of such payment to the Payee within [Confidential
treatment requested] following
that payment.  All amounts payable under
this Agreement are stated inclusive of any Value Added Taxes, sales taxes,
consumption taxes or other similar taxes which the Payor may be obliged to
charge.

 

9.16                           Imports.  For
the avoidance of doubt, the Parties acknowledge and agree that none of the
milestones or royalties payable under this Agreement are related directly to
any import of Antibodies, Candidate Drugs, Licensed Products or other goods or
materials transferred to either Party pursuant to this Agreement.  The receiving Party shall be responsible for
any import clearance, including payment of any import duties and similar
charges, in connection with any Antibodies, Candidate Drugs, Licensed Products
or other goods or materials transferred to such Party under this Agreement.

 

10.                                 FINANCING
TERMS.

 

Concurrent with the
execution of this Agreement, ABX and AZ shall execute and deliver the Purchase
Agreement (together with all other documents, instruments and agreements (other
than this Agreement) required to be executed and delivered in connection with
such agreement) (collectively, the “Financing Documents”).

 

105

 

11.                                 TECHNOLOGY

 

11.1                           Ownership.

 

11.1.1                  Antibody
Technology.  Subject to the license
grants to AZ under this Agreement, as between the Parties, ABX shall solely own and retain all
right, title and interest in and to all Antibody Technology described in clause
(a) of Section 1.36 that is Controlled by ABX and all Antibody Technology
described in clause (b) of Section 1.36, subject to the proviso contained
therein (together with all Patent Rights and other intellectual property rights
therein).

 

11.1.2                  Antigen-Specific Technology.

 

(a)                                  Subject
to the license grants to AZ under this Agreement, as between the Parties, ABX shall solely own and retain all
right, title and interest in and to all ABX Prior Antigen-Specific Know-How
Rights, ABX Prior Antigen-Specific Patent Rights, ABX Subsequent
Antigen-Specific Know-How Rights and ABX Subsequent Antigen-Specific Patent
Rights, together with all Antigen-Specific Technology included therein.

 

(b)                                 Subject
to the license grants to ABX under this Agreement, as between the Parties, AZ shall solely own and retain all
right, title and interest in and to all AZ Prior Antigen-Specific Know-How
Rights, AZ Prior Antigen-Specific Patent Rights, AZ Subsequent Antigen-Specific
Know-How Rights and AZ Subsequent Antigen-Specific Patent Rights, together with
all Antigen-Specific Technology included therein.

 

11.1.3                  Collaboration
Technology.  Subject to the license
grants under this Agreement and the last sentence of this Section 11.1.3,
the Parties shall each own an equal, undivided interest in any Collaboration
Technology (together with all Patent
Rights and other intellectual property rights therein), provided that,
except as expressly permitted in this Agreement, neither a Party nor any of its
Affiliates shall Exploit,
transfer, license or encumber its rights in any Collaboration Technology with
respect to a Collaboration Antigen, and the Patent Rights and other
intellectual property rights therein, without the consent of the other Party
prior to the earlier of the date of the designation of a Candidate Drug by AZ
with respect to such Collaboration Antigen and the date of the designation of
such Collaboration Antigen as a Discontinued Antigen subject to
Section 4.5.1 or a Failed Antigen subject to Section 4.15.  After such date, subject to
Sections 4.15, 12.1, 12.2.1 and 12.3 and the last sentence of this
Section 11.1.3, the Party or Parties shall be free to Exploit, transfer, license or encumber its or
their rights in any Collaboration Technology with respect to such Antigen,
except to the extent expressly prohibited by this Agreement.  Each Party shall promptly disclose to the
other Party in writing the conception or generation of Collaboration
Technology, and shall, and does hereby, assign, and shall cause its Affiliates,
licensees, sublicensees and subcontractors to so assign, to the other Party, without
additional compensation, such right, title and interest in and to any
Collaboration Technology (together with all Patent Rights and other intellectual property rights therein)
as is necessary to fully effect the joint ownership provided for in the first
sentence of this Section 11.1.3. 
Notwithstanding the foregoing, upon the designation of the first
Candidate Drug that binds to and
is directed against a Collaboration Antigen pursuant to
Section 2.6, ABX shall, and [Confidential treatment requested] with
respect to such Collaboration Antigen (together with

 

106

 

all Patent Rights and other intellectual property
rights therein); provided, however, if and only to the extent ABX
or any of its Affiliates [Confidential treatment requested], ABX or its
Affiliate (as applicable) shall, and does hereby, [Confidential treatment
requested] under the applicable Collaboration Patent Rights and Collaboration
Know-How Rights to Exploit such Antibody, on the terms and conditions of this
Agreement.

 

11.1.4                  Oncology
Technology.  Subject to the license
grants under this Agreement and the last two sentences of this
Section 11.1.4, the Parties shall each own an equal, undivided interest in
any Oncology Technology (together with all Patent Rights and other intellectual property rights therein).  Each Party shall promptly disclose to the
other Party in writing the conception or generation of Oncology Technology, and
shall, and does hereby, assign, and shall cause its Affiliates, licensees,
sublicensees and subcontractors to so assign, to the other Party, without
additional compensation, such right, title and interest in and to any Oncology
Technology (together with all Patent
Rights and other intellectual property rights therein) as is necessary
to fully effect the joint ownership provided for in the foregoing
sentence.  ABX shall have the right, subject to the provisions of this Agreement, to
freely Exploit, transfer, license or encumber its rights in Oncology
Technology, and the Patent Rights and other intellectual property rights
therein, for use in connection with the Exploitation of Antibodies and Antibody
Equivalents (other than Antibodies and Antibody Equivalents that bind to and
are directed against Collaboration Antigens, other than, subject to
Section 4.15, Failed Antigens or Discontinued Antigens for which ABX has
provided an Exercise Notice) without the consent of, or payment or accounting
to, AZ.  AZ shall have the right, subject to the
provisions of this Agreement, to freely Exploit, transfer, license or encumber
its rights in Oncology Technology, and the Patent Rights and other intellectual
property rights therein, for all purposes without the consent of, or payment or
accounting to, ABX (other than Antibodies that bind to and are directed against
Discontinued Antigens for which ABX delivers an Exercise Notice).

 

11.1.5                  Other
Technology.  Subject to the license
grants under this Agreement, any Other Technology (together with all Patent Rights and other intellectual
property rights therein) that is first conceived or generated
(a) by persons on behalf of ABX shall be solely owned by ABX, (b) by
persons on behalf of AZ shall be solely owned by AZ, and (c) jointly by
persons on behalf of ABX and by persons on behalf of AZ, shall be jointly owned
by ABX and AZ.  Each Party shall have the right, subject to the provisions of this
Agreement, to freely exploit, transfer, license or encumber its rights in any
jointly owned Other Technology, and the Patent Rights and other intellectual
property rights therein, without the consent of, or payment or accounting to,
the other Party.  Each Party
shall promptly disclose to the other Party in writing the conception or
generation of Other Technology by such Party, its Affiliates, licensees,
sublicensees or subcontractors.

 

11.1.6                  Development Program Technology and
Additional Development Program Technology.  Subject to the
license grants to ABX under this Agreement, as between the Parties, AZ shall own and retain all right,
title and interest in and to any Development Program Technology and any
Additional Development Program Technology (together with all Patent Rights and
other intellectual property rights therein).  ABX shall promptly
disclose to AZ in writing, and shall cause its Affiliates, licensees,
sublicensees and subcontractors to so disclose, the conception or generation of
any Development Program Technology and any Additional Development Program
Technology, and shall, and does hereby, assign, and shall cause its

 

107

 

Affiliates, licensees, sublicensees and subcontractors
to so assign, to AZ, without additional compensation, all of their right, title
and interest in and to any Development Program Technology and any Additional
Development Program Technology (together with all Patent Rights and other
intellectual property rights therein).

 

11.1.7                  XenoMouse Technology. 
Subject to the license grants to AZ under this Agreement, as
between the Parties, ABX shall
own and retain all right, title and interest in and to all XenoMouse Technology
(together with all Patent Rights and other intellectual property rights
therein).  AZ shall promptly disclose to ABX in
writing, and shall cause its Affiliates to so disclose, the conception or
generation of any XenoMouse
Technology, and shall, and does hereby, assign, and shall cause its
Affiliates to so assign, to ABX, without additional compensation, all of their
right, title and interest in and to any XenoMouse Technology (together with all Patent Rights and other
intellectual property rights therein).

 

11.1.8                  Process Technology. 
Subject to the license grants to AZ under this Agreement, as between the
Parties, ABX shall own and retain all right, title and interest in and to all
of the ABX Process Technology (together with all Patent Rights and other
intellectual property rights therein).  AZ shall own and retain all right, title and
interest in and to all of the AZ Process Technology (together with all
Patent Rights and other intellectual property rights therein).

 

11.1.9                  United States
Law.  The determination of whether
Information and inventions are conceived or generated by a Party for the
purpose of allocating proprietary rights (including Patent Rights and other
intellectual property rights) therein, shall, for purposes of this Agreement,
be made in accordance with applicable United States law.

 

11.2                           Restrictions Regarding the Technology.

 

11.2.1                  The transfer of physical possession of
any XenoMouse Technology, and the physical possession and use of any XenoMouse
Technology by AZ shall not be (nor be construed as) a sale, lease, offer to
sell or lease, or other transfer of title of such XenoMouse Technology to AZ.

 

11.2.2                  The Parties acknowledge that the
Collaboration Technology is experimental in nature and may have unknown
characteristics.  Each Party shall use
prudence and reasonable care in the use, handling, storage, transportation,
disposition and containment of the Collaboration Technology.

 

11.3                           Material and Information Transfer.  The Parties shall transfer to each other the
Antibodies, Antibody Cells, Genetic Materials, Collaboration Antigens,
reagents and other tissues, cells, cell lines, organisms, blood samples,
genetic material and other biological substances and materials, and disclose to
each other the Information, in each case (a) as set forth in each Research
Program Work Plans (without additional compensation) and each Development
Program Work Plan, or (b) as otherwise set forth in Articles 2 and 5
to the extent necessary to exercise their rights under this Agreement.

 

108

 

12.                                 PATENT
RIGHTS

 

12.1                           Prosecution
and Maintenance.

 

12.1.1                  XenoMouse Patent Rights. 
ABX shall have the sole right (but not the obligation), at its expense,
to prepare, file, prosecute (including any interferences, reissue and opposition proceedings and
re-examinations) and
maintain the XenoMouse Patent Rights.

 

12.1.2                  Other Licensed ABX IP Rights.

 

(a)                                  ABX shall have the sole right (but not
the obligation), at its expense, to prepare, file, prosecute (including any interferences,
reissue and opposition proceedings and re-examinations) and maintain the ABX Antibody Patent
Rights and the Additional Technology Patent Rights Controlled by ABX.

 

(b)                                 ABX (or its designee) shall have the
first right (but not the obligation), at its expense, to prepare, file,
prosecute and maintain the ABX Antigen-Specific Patent Rights.  If ABX (or its designee) elects not to (i) pursue or continue the
filing, prosecution (including any interferences, reissue and opposition
proceedings and re-examinations) or maintenance of any such Patent Right in a
particular country, or (ii) seek any patent term extension, restoration or
the like of any such Patent Right in a particular country that may be available
now or in the future, then in each
such case ABX shall use reasonable efforts to notify AZ in writing thereof not
less than [Confidential treatment requested] before any deadlines by which an action must
be taken to establish or preserve any such rights in such Patent Right in such
country.  Upon receipt by AZ of each
such notice or if, at any time, ABX (or its designee) fails to initiate any
such action within [Confidential treatment requested] after a request by AZ that it do so (and
thereafter diligently pursue such action), subject to any ABX Antigen
In-License by which ABX Controls such Patent Right, AZ or its Affiliate or
sublicensee shall have the right, but not the obligation, through counsel of
its choosing, to (x) pursue the filing or registration, or support the
continued prosecution (including any interferences, reissue and opposition
proceedings and re-examinations) or maintenance, of such Patent Right at its
expense in such country or (y) seek any patent term extension, restoration
or the like of any such Patent Right in a particular country that may be
available now or in the future.  If AZ
or its Affiliate or sublicensee elects to pursue such filing or registration,
as the case may be, or continue such support, then AZ shall notify ABX of such
election and ABX shall, and shall cause its Affiliates to, promptly release or
assign to AZ, without consideration, all right, title and interest (or,
if and only to the extent ABX or any of its Affiliates is not able (whether by
law or contract) to so release or assign, such Person shall, and does hereby,
grant to AZ, subject to any
ABX Antigen In-License by which ABX Controls such Patent Right, a fully
paid, royalty-free (except that AZ shall continue to be responsible for any
Third Party royalty obligations under an ABX Antigen In-License that it would
otherwise have been responsible for under Section 4.17.2), perpetual,
irrevocable, exclusive, worldwide right and license) in and to such Patent Rights in such country,
which Patent Rights shall be deemed AZ Prior  Antigen-Specific
Patent Rights for purposes of this Agreement.

 

(c)                                  Except
to the extent provided in Section 12.1.2(b), 12.1.3(c) or 12.1.4,
following the date that an Antigen is designated as a Collaboration Antigen,
neither ABX

 

109

 

nor its Affiliates shall file any patent application
claiming any Collaboration Antigen, any Antibodies or Antibody Equivalents that
bind to and are directed against such Collaboration Antigen or the use of any
of the foregoing in the Commercial Field without AZ’s prior written consent,
unless and until such Collaboration Antigen becomes a Discontinued Antigen or
Failed Antigen.

 

12.1.3                  Licensed AZ IP Rights.

 

(a)                                  AZ shall have the sole right (but not
the obligation), at its expense, to prepare, file, prosecute (including any interferences,
reissue and opposition proceedings and re-examinations) and maintain the Development Program
Patent Rights, the Additional Development Program Patent Rights and the
Additional Technology Patent Rights Controlled by AZ.

 

(b)                                 AZ (or its designee) shall have the
first right (but not the obligation), at its expense, to prepare, file,
prosecute (including
any interferences, reissue and opposition proceedings and re-examinations) and maintain the AZ Antigen-Specific
Patent Rights.  If AZ (or its designee) elects not to
(i) pursue or continue the filing, prosecution (including any
interferences, reissue and opposition proceedings and re-examinations) or
maintenance of any such Patent Rights applicable to a Discontinued Antigen in a
particular country, or (ii) seek any patent term extension, restoration or
the like of any such Patent Rights applicable to a Discontinued Antigen in a
particular country that may be available now or in the future, then in each
such case AZ shall use reasonable efforts to notify ABX in writing thereof not
less than [Confidential treatment requested] before any deadlines by which an action must
be taken to establish or preserve any such rights in such Patent Right in such
country.  Upon receipt by ABX of each
such notice or if, at any time, AZ (or its designee) fails to initiate any such
action within [Confidential treatment requested] after a request by ABX that it do so (and
thereafter diligently pursue such action), subject to any agreement with a
Third Party by which AZ or its Affiliates Control such Patent Rights, ABX shall
have the right, but not the obligation, through counsel of its choosing, to
(x) pursue the filing or registration, or support the continued prosecution
(including any interferences, reissue and opposition proceedings and
re-examinations) or maintenance, of such Patent Right at its expense in such
country or (y) seek any patent term extension, restoration or the like of
any such Patent Rights applicable to a Discontinued Antigen in a particular
country that may be available now or in the future.  If ABX elects to pursue such filing or registration, as the case
may be, or continue such support, then ABX shall notify AZ of such election and
AZ shall, and shall cause its Affiliates to, promptly release or assign to ABX,
without consideration, all right, title and interest (or, if and only to
the extent AZ or any of its Affiliates is not able (whether by law or contract)
to so release or assign, such Person shall, and does hereby, grant to ABX, subject to any agreement with a
Third Party by which such Person Controls such Patent Rights, a fully
paid, royalty-free (except that ABX shall continue to be responsible for any
Third Party royalty obligations under an AZ in-license that ABX would otherwise
have been responsible for under Sections 4.17.2 and 4.17.2), perpetual,
irrevocable, exclusive, worldwide right and license) in and to such Patent Rights in such country,
which Patent Rights shall be deemed ABX Prior Antigen-Specific Patent Rights
for purposes of this Agreement.

 

110

 

(c)                                  AZ (or its designee) shall have the
first right (but not the obligation) to prepare, file, prosecute (including any interferences,
reissue and opposition proceedings and re-examinations) and maintain the Oncology Patent
Rights.  If AZ (or its designee) elects not to
(i) pursue or continue the filing, prosecution (including any
interferences, reissue and opposition proceedings and re-examinations) or
maintenance of any such Patent Rights in a particular country, or
(ii) seek any patent term extension, restoration or the like of any such
Patent Rights in a particular country that may be available now or in the
future, then in each such case AZ shall use reasonable efforts to notify ABX in
writing thereof not less than two (2) months before any deadlines by which an
action must be taken to establish or preserve any such rights in such Patent
Right in such country.  Upon receipt by
ABX of each such notice or if, at any time, AZ (or its designee) fails to
initiate any such action within thirty (30) days after a request by ABX that it
do so (and thereafter diligently pursue such action), ABX shall have the right,
but not the obligation, through counsel of its choosing, to (x) pursue the
filing or registration, or support the continued prosecution (including any
interferences, reissue and opposition proceedings and re-examinations) or
maintenance, of such Patent Right in such country or (y) seek any patent
term extension, restoration or the like of any such Patent Rights in a
particular country that may be available now or in the future.  Notwithstanding the Party that is pursuing
the preparation, filing,
prosecution (including
any interferences, reissue and opposition proceedings and re-examinations) or maintenance of the Oncology Patent
Rights in a particular
country, AZ shall pay two-thirds (2/3) and ABX shall pay one-third (1/3) of the
cost and expense of such preparation, filing, prosecution and
maintenance.  Notwithstanding the above,
either Party may decline to pay its share of the costs for preparing, filing,
prosecuting and maintaining any Oncology Patent Right in a particular country,
in which case the declining Party shall, and shall cause its Affiliates to, promptly release or assign to
the other Party, without consideration, all right, title and interest in and to
such Patent Rights in such country, whereupon the declining Party shall have no
further right, title, license or other interest in such Patent Rights under
this Agreement or otherwise.

 

12.1.4                  Collaboration and Other Patent Rights.

 

(a)                                  Subject
to Section 12.1.4(b), the Parties shall, using counsel reasonably acceptable to the Parties, jointly prepare, file, prosecute (including any
interferences, reissue or opposition proceedings or re-examinations) and
maintain (i) the Collaboration Patent Rights relating to Collaboration
Antigens, Discontinued Antigens and Failed Antigens unless and until such
Patent Rights are assigned (or licensed) to AZ pursuant to Section 11.1.3,
whereupon AZ shall have the first right (but not the obligation), to prepare,
file, prosecute (including any interferences, reissue and opposition
proceedings and re-examinations) and maintain such Collaboration Patent Rights,
unless and until a Collaboration Antigen becomes a Discontinued Antigen and ABX
delivers an Exercise Notice to AZ, whereupon ABX shall have the first right
(but not the obligation), to prepare, file, prosecute (including any interferences,
reissue and opposition proceedings and re-examinations) and maintain
Collaboration Patent Rights applicable to such Discontinued Antigen, and
(ii) the Other Patent Rights that are jointly owned by the Parties.  The Research Management Committee
shall formulate a strategy for such joint filing, prosecution and maintenance
of Collaboration Patent Rights and such Other Patent Rights.  The Research Management Committee shall also
establish a process under which each Party shall have a reasonable opportunity
to review and comment upon drafts of each new application for such Other Patent
Rights and, prior to their assignment (or license) to AZ pursuant to
Section 11.1.3,

 

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Collaboration Patent Rights and all substantive
correspondence to or from any patent authority with respect thereto, prior to
the filing of such application or correspondence, recognizing that such process shall not delay any priority
filing of a Patent Right. 
Subject to Section 12.1.4(b), the Parties shall share equally in
the expenses associated with the filing, prosecution (including any
interferences, reissue and opposition proceedings and re-examinations) and
maintenance of all (x) Collaboration Patent Rights, unless and until such
Patent Rights are assigned (or licensed) to AZ pursuant to Section 11.1.3,
whereupon AZ shall be responsible for all such expenses incurred after such
assignment (or license), unless
and until a Collaboration Antigen becomes a Discontinued Antigen and ABX delivers
an Exercise Notice to AZ, whereupon ABX shall be responsible for all
such expenses for the applicable Collaboration Patent Rights incurred after
delivery of such Election Notice, and (y) such Other Patent Rights.  Subject to Section 12.1.4(b), each Party
shall have the first right (but
not the obligation), at its expense, to prepare, file, prosecute and maintain
its Other Patent Rights that are not jointly-owned with the other Party.

 

(b)                                 If (i) with respect to Other
Patent Rights, either Party, or (ii) with respect to Collaboration Patent
Rights, prior to the assignment (or license) of such Collaboration Patent
Rights to AZ pursuant to Section 11.1.3, either Party or, thereafter, AZ unless and
until a Collaboration Antigen becomes a Discontinued Antigen and ABX delivers
an Exercise Notice to AZ, ABX solely for purposes of the Collaboration Patent
Rights to the extent that they include a claim that covers Collaboration
Technology to the extent applicable to such Discontinued Antigen (for purposes of this Section 12.1.4(b), each such Party shall be referred
to as the “Notifying Party”), elects not to (x) pursue or continue the
filing, prosecution (including any interferences, reissue and opposition
proceedings and re-examinations) or maintenance of any such Patent Rights in a
particular country, or (y) seek any patent term extension, restoration or
the like of any such Patent Rights in a particular country that may be
available now or in the future,
then in each such case the Notifying Party shall use reasonable efforts to
notify the other Party thereof in writing not less than two (2) months before
any deadlines by which an action must be taken to establish or preserve any
such rights in such Patent Rights in such country.  Upon receipt by such other Party of each such notice, such other
Party shall have the right, but not the obligation, at its sole cost and
expense, through counsel of its choosing, to (i) pursue the filing or
support the continued prosecution (including any interferences, reissue and opposition
proceedings and re-examinations) or maintenance, of such Patent Rights or
(ii) seek any patent term extension, restoration or the like of any such
Patent Rights in a particular country that may be available now or in the
future.  If such other Party
elects to pursue such filing or continue such support, then such other Party
shall notify the Notifying Party of such election and, solely with respect to
all Other Patent Rights and those Collaboration Patent Rights for which the Parties are sharing the cost of
prosecution, the Notifying Party shall, and shall cause its Affiliates,
licensees and sublicensees, as applicable, to promptly release or assign to such other Party,
without consideration, all right, title and interest (or, if and only to
the extent the Notifying Party or any of its Affiliates is not legally able to
so release or assign, such Person shall, and does hereby, grant to such other
Party a fully paid, royalty-free, perpetual, irrevocable, exclusive, worldwide
right and license) in and to
such Patent Rights in such country, and the Notifying Party shall have no
further right or interest in such Patent Rights.

 

12.1.5                  Cooperation.  Each Party shall, and shall cause its
Affiliates, licensees and sublicensees, as applicable, to, cooperate, to the extent commercially reasonable,
in

 

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the preparation, filing, prosecution and maintenance
of the Collaboration Patent Rights, the Oncology Patent Rights, the
jointly-owned Other Patent Rights and, if requested by the other Party, such
other Party’s other Patent Rights, provided that such other Party shall
reimburse the cooperating Party for its reasonable out-of-pocket expenses
incurred in connection with such requested cooperation.  Such cooperation includes (a) promptly
executing all papers and instruments and requiring employees to execute such
papers and instruments as reasonable and appropriate so as to enable such other
Party to file, prosecute, and maintain its Patent Rights in any country; and
(b) promptly informing such other Party of, and providing relevant
documentation with respect to, matters that may affect the preparation, filing,
prosecution or maintenance of any such Patent Rights.  Regardless of the Party that is seeking any patent term extension
of any Patent Rights pursuant to this Section 12.1, the Parties shall
coordinate their activities with respect to any such patent term extension in
order to secure the optimal protection for each Product available under
Applicable Law.  For the avoidance of
doubt, a decision not to seek patent term extension with respect to a patent so
as to preserve the right to seek patent term extension with respect to one or
more other patents shall not, in and of itself, be deemed to be a failure to
diligently prosecute a patent under this Section 12.1 and shall not give
rise to any obligation to release or assign a patent to the other Party under
this Section 12.1.

 

12.2                           Enforcement.

 

12.2.1                  Rights and Procedures. 
If AZ or ABX determines that any Licensed IP Rights are being
infringed by a Third Party’s activities and that such infringement is
reasonably likely to affect the exercise by the Parties of their respective
rights and obligations under this Agreement, it shall promptly notify the other
Party in writing and provide such other Party with any evidence of such
infringement that is reasonably available.

 

(a)                                  With
respect to XenoMouse Patent Rights, ABX Antibody Patent Rights and ABX
Additional Technology Patent Rights, ABX shall have the sole right (but not the obligation), at its expense,
to remove such infringement.

 

(b)                                 With
respect to Development Program Patent Rights, Additional Development Program
Patent Rights, Oncology Patent Rights and AZ Additional Technology Patent
Rights, AZ or its nominee shall
have the sole right (but not the obligation), at its expense, to remove such
infringement.

 

(c)                                  With respect to Antigen-Specific Patent
Rights and Collaboration Patent Rights, AZ shall have the sole right (but not
the obligation), at its expense, to remove such infringement, except to the
extent that such infringement relates to a Discontinued Antigen or a Failed
Antigen.  With respect to
Antigen-Specific Patent Rights to the extent they cover a Discontinued Antigen
or a Failed Antigen, ABX shall have the sole right (but not the obligation), at
its expense, to remove any such infringement of the ABX Antigen-Specific Patent
Rights and AZ shall have the sole right (but not the obligation), at its
expense, to remove any such infringement of the AZ Antigen-Specific Patent
Rights.  With respect to Collaboration
Patent Rights that relate to a Discontinued Antigen or a Failed Antigen and
Other Patent Rights, the Parties shall use good faith efforts to determine
whether to seek to remove such infringement and, if applicable, a strategy for
seeking to remove such infringement, provided that the Party or Parties whose
products are adversely affected by such infringement shall have the first right
(but

 

113

 

not the obligation),
at such Party’s(ies’) expense, to remove such infringement.  For purposes of Section 12.2.1(d), the
Party having the first right to control the enforcement of any Patent Rights as
set forth in the preceding sentence shall be referred to as the “Controlling
Party”, and the other Party shall be referred to as the “Non-Controlling
Party”, with respect to such Patent Rights.

 

(d)                                 If the Controlling Party fails to abate
any such infringement of the Collaboration Patent Rights that relate to a
Discontinued Antigen or Failed Antigen or the Other Patent Rights, or to file
an action to abate such infringement, within sixty (60) days after a written
request from the Non-Controlling Party to do so, or if the Controlling Party
discontinues the prosecution of any such action after filing, the
Non-Controlling Party at its expense may, in its discretion, undertake such
action as it determines appropriate to enforce such Patent Rights against any
such infringement; provided, however, if the Controlling
Party has commenced negotiations with an alleged infringer for discontinuance
of such infringement within such [Confidential treatment requested] period, the
Controlling Party shall have an additional ninety (90) days to conclude its
negotiations before the Non-Controlling Party unilaterally may bring suit for
such infringement.

 

12.2.2                  Generic
Competition.  Notwithstanding the
foregoing, if either Party receives any notice of (a) any certification
filed under the U.S. “Drug Price Competition and Patent Term Restoration Act”
of 1984 (21 United States Code §355(b)(2)(A)(iv) or (j)(2)(A)(vii)(IV)), as may
be amended from time to time (“ANDA ACT”) with respect to a Product
claiming that any Licensed IP Rights are invalid or unenforceable or claiming
that such Patents Rights will not be infringed by the manufacture, use,
marketing or sale of a product for which an application under the ANDA ACT is
filed, or (b) any equivalent or similar certification or notice in any
other jurisdiction, it shall within [Confidential treatment requested] advise
the other Party of such receipt.  The
Parties’ rights and obligations with respect to any legal action as a result of
such certification shall be as set forth in this Section 12.2.

 

12.2.3                  Cooperation. 
The Party enforcing the applicable Licensed IP Rights under
Section 12.2.1 shall keep the other Party informed, consult with such
Party and consider in good faith the reasonable comments of such Party, both
prior to and during any such enforcement. 
The Party not enforcing the applicable Patent Rights shall have the
right to participate in, but not control, any such enforcement at its own
expense and shall assist and provide any relevant documentation to the other
Party, upon request and at such other Party’s expense, and to the extent commercially
reasonable, in taking any action to enforce the applicable Patent Rights,
including joining the action to the extent necessary to allow the such
other Party to maintain the action.

 

12.2.4                  Recovery. 
For purposes of Section 12.2, all monies recovered upon the final
judgment or settlement of any such action shall be used first to reimburse the
Parties pro rata for the previously unreimbursed reasonable costs and expenses
(including reasonable attorneys’ fees and costs) incurred in connection therewith,
and the remainder shall be retained by the Party that has exercised its
right to bring the enforcement action; provided, however, that to
the extent that any award is attributable to loss of sales of, or loss of
profits with respect to, an [Confidential treatment requested] (including any
special or other damages with respect thereto), any remainder shall be retained
by or paid to [Confidential treatment requested] and, to the extent
attributable to lost sales of such Products, shall be deemed “Net Sales” for

 

114

 

which [Confidential treatment requested] under
Section [Confidential treatment requested]; and provided  further
that to the extent that any award is attributable to loss of sales of, or loss
of profits with respect to, an [Confidential treatment requested] (including
any special or other damages with respect thereto), any remainder shall be
retained by or paid to [Confidential treatment requested] and, to the extent
attributable to lost sales of such Product, shall be deemed “Net Sales” for
which [Confidential treatment requested] under Section [Confidential
treatment requested].

 

12.3                           Invalidity or Unenforceability
Defenses or Actions.

 

12.3.1                  In the event
that a Third Party asserts, as a defense or as a counterclaim in any
infringement action under Section 12.2, that any Licensed IP Rights are
invalid or unenforceable, then the Party pursuing such infringement action
shall promptly give written notice to the other Party.  The Party that is the plaintiff in the
underlying suit or action against such Third Party shall, at its sole cost and
expense, respond to such defense or defend against such counterclaim (as
applicable), provided that  to
the extent that the other Party’s Patent Rights are the subject of such
invalidity or unenforceability defense or counterclaim, the Party that has the
right to enforce such Patent Rights under Section 12.2, at its sole cost
and expense, shall control all decisions as to such response or defense (in
consultation with the other Party), provided  further that, except
as permitted in Section 12.5, neither Party shall settle or otherwise
compromise such defense or counterclaim in any way that materially adversely
affects the other Party’s Patent Rights or its interest therein, or rights
under this Agreement, without such other Party’s written consent, not to be
unreasonably withheld or delayed.

 

12.3.2                  In the event
that a Third Party asserts, in a declaratory judgment action or similar action
or claim filed by such Third Party, that any Licensed IP Rights are invalid or
unenforceable, then the Party first becoming aware of such action or claim
shall promptly give written notice to the other Party.  The Party that is the defendant in such suit
or action or claim by such Third Party shall, at its sole cost and expense,
respond to such defense or defend against such action or claim (as applicable),
provided that  to the
extent that the other Party’s Patent Rights are the subject of such invalidity
or unenforceability action or claim, the Party that has the right to enforce
such Patent Rights under Section 12.2, at its sole cost and expense, shall
control all decisions as to such response or defense (in consultation with the
other Party).  Notwithstanding the
foregoing, subject to Section 12.5, neither Party shall settle or
otherwise compromise such declaratory judgment action or similar action or
claim in any way that materially adversely affects the other Party’s Patent
Rights or its interest therein, or rights under this Agreement, without such
other Party’s written consent, not to be unreasonably withheld or delayed.

 

12.4                           Third Party Litigation.

 

12.4.1                  In the event of
any actual or threatened suit against ABX, AZ or their respective Affiliates,
sublicensees, Distributors or customers alleging that the Exploitation of a
Product hereunder infringes the Patent Right or other intellectual property
rights of any Person (an “Infringement Suit”), the Party first becoming
aware of such Infringement Suit shall promptly give written notice to the other
Party.  Except as otherwise provided in
Article 15, AZ shall have the sole right, but not the obligation, at its
sole cost and expense, through counsel of

 

115

 

its choosing, to assume direction and control of the
defense of any such Infringement Suit with respect to the AZ Products
(including the right to settle such claims at its sole discretion) and ABX
shall have the sole right, but not the obligation, at its sole cost and
expense, through counsel of its choosing, to assume direction and control of
the defense of any such Infringement Suit with respect to the ABX Products
(including the right to settle such claims at its sole discretion).

 

12.4.2                  Notwithstanding
Section 12.4.1, in the event any such Infringement Suit alleges that the
use of the Core Technology in the Research Programs or the Antibodies and
Candidate Drugs resulting therefrom, infringes the Patent Rights or other
intellectual property rights of a Third Party, ABX shall have the first right,
but not the obligation, at its sole cost and expense, through counsel of its
choosing, to assume direction and control of the defense of any such
Infringement Suit (including the right to settle such claims at its sole
discretion, provided that ABX shall obtain the consent of AZ (which consent
shall not be unreasonably withheld or delayed) prior to compromising, settling
or ceasing to defend any such claim that could have an adverse effect on AZ or
an AZ Product) and, irrespective of the Party that assumed such direction and
control, shall be solely responsible for all costs and expenses and any damage
awards or other payments (including royalties) or penalties to the extent
incurred therefrom that are not offset by proceeds therefrom.  While any such Infringement Suit is pending,
regardless of the Party that is defending such suit, AZ shall have the right to
deposit [Confidential treatment requested] of the milestone and royalty
obligations payable to ABX under this Agreement into a interest-bearing escrow
account until the date that such suit is resolved, with the reasonable and
verifiable out of pocket costs and expenses of such escrow account borne by
ABX.  For the avoidance of doubt, the
foregoing provision shall not apply to the extent that any such alleged
infringement is specific to a Collaboration Antigen or the Exploitation of
antibody products directed against such Collaboration Antigen, as distinguished
from the application of the Core Technology or the Exploitation of antibody products
derived from such technology, irrespective of the specific antigen.

 

12.5                           Retained Rights. 
Notwithstanding the foregoing, AZ shall have the right, in its sole
discretion, (a) to obtain a license under any Patent Rights or other
intellectual property rights of a Third Party, (b) subject to the licenses
granted to ABX under Article 4, to [Confidential treatment
requested], with or without
royalties, under the [Confidential treatment requested], and (c) subject to Section 4.11,
to [Confidential treatment requested], under the [Confidential
treatment requested] with respect
to a Collaboration Antigen in connection with any bona fide intellectual
property dispute [Confidential treatment requested] with respect to such Collaboration
Antigen.  For the avoidance of doubt, subject to the
licenses and other rights granted to [Confidential treatment requested] under Article 4, [Confidential
treatment requested] shall
have the right, in its sole discretion, to grant cross-licenses under the
Collaboration Know-How Rights, Collaboration Patent Rights, Oncology Know-How
Rights and Oncology Patent Rights.

 

13.                                 CONFIDENTIALITY

 

13.1                           Confidentiality.  During the term of this
Agreement and for a period of five (5) years following the expiration or
earlier termination hereof, each Party (the “Receiving Party”)
shall, and shall cause its officers, directors, employees, agents, Affiliates
and

 

116

 

sublicensees to, keep confidential and not publish or
otherwise disclose and not use, directly or indirectly, for any purpose, any
Confidential Information of the other Party (the “Disclosing Party”)
except to the extent such disclosure or use is expressly permitted by the terms
of this Agreement, and
shall restrict the disclosure of the Confidential Information of the Disclosing
Party within its own organization to the Receiving Party’s and its Affiliates’
directors, officers, employees, consultants, distributors and permitted
sublicensees and subcontractors, in each case to the extent such disclosure is
Reasonably Necessary in connection with such Party’s activities as expressly
authorized by this Agreement or is Reasonably Necessary for such Party’s
performance of, or exercise of its rights under, this Agreement.  To
the extent that disclosure to any Person is authorized by this Agreement, prior
to disclosure, the Receiving Party shall ensure that such Person is bound by
confidentiality and non-use restrictions no less onerous than those set forth
in this Article 13.  Notwithstanding
the foregoing, in no event shall ABX disclose the Confidential Information of
AZ to any Person (a) that becomes an Affiliate of ABX as a result of a
Change in Control, or (b) that is a Competitor, and obtains a seat on the
Board of Directors of ABX as a result of an equity investment in ABX (other
than a Change in Control by which ABX is merged into the surviving entity).

 

13.2                           AZ
Information.  Notwithstanding
anything to contrary in this Agreement, ABX shall, and shall cause its
officers, directors, employees, agents, Affiliates and sublicensees to, keep
confidential and not publish or otherwise disclose and not use, directly or
indirectly, for any purpose, any Collaboration Technology, Development Program
Technology, Additional Development Program Technology or Antigen-Specific
Technology relating to, or Antibody Technology, Additional Technology, Oncology
Technology or other Information to the extent that it is specific to, the
Research Antibodies or the Candidate Drugs or the AZ Products (including such
types of Information contained in Registrations with respect thereto or
regarding the development, sales or marketing plans for the AZ Products), in
each case with respect to the Collaboration Antigens (other than Failed
Antigens or Discontinued Antigens) (the “AZ Information”), except to the
extent (a) the AZ Information is in the public domain through no fault of
ABX, its Affiliates or any of their respective officers, directors, employees
and agents, (b) such disclosure or use would be permitted under Section 13.1,
or (c) such disclosure or use is otherwise expressly permitted by the
terms of this Agreement or is Reasonably Necessary for the performance of this
Agreement.  For clarification, the
disclosure by ABX to AZ or by AZ to ABX of AZ Information shall not cause such
information to cease to be subject to the confidentiality provisions of this
Section 13.2.  AZ shall have the
right to use and disclose the AZ Information as necessary or reasonably useful to
Exploit (x) Antibodies, Candidate Drugs and AZ Products with respect to the
Collaboration Antigens (other than Failed Antigens and Discontinued Antigens
(other than Discontinued Antigens for which ABX failed to deliver an Exercise
Notice)) and (y) Non-Licensed Products with respect to Failed Antigens or
Discontinued Antigens.  ABX shall have
the right to use and disclose the AZ Information as necessary or reasonably
useful to Exploit Antibodies, Candidate Drugs and ABX Products with respect to
the Discontinued Antigens for which ABX delivers an Exercise Notice.

 

13.3                           Permitted
Disclosures.  Each
Party may disclose Confidential Information of the other Party to the extent
that such disclosure is:

 

13.3.1                  made in response
to a valid order of a court of competent jurisdiction or other competent
authority; provided, however, that the Receiving Party shall
first

 

117

 

have given written notice to the Disclosing Party and
given the Disclosing Party a reasonable opportunity to obtain a protective
order requiring that the Confidential Information and documents that are the
subject of such order be held in confidence by such court or authority or, if
disclosed, be used only for the purpose for which the order was issued; and provided
further that if a protective order is not obtained, the Confidential
Information disclosed in response to such court or governmental order shall be
limited to that information that is legally required to be disclosed in
response to such court or governmental order;

 

13.3.2                  made by the
Receiving Party to a governmental or other regulatory authority as may be
necessary or useful in connection with any filing, application or request for a
Registration; provided, however, that reasonable measures will be
taken to obtain confidential treatment of such information;

 

13.3.3                  made by the
Receiving Party to a patent authority as may be necessary or useful for
purposes of obtaining or enforcing a Patent Right; provided, however,
that reasonable measures will be taken to assure confidential treatment of such
information; or

 

13.3.4                  made by the
Receiving Party or its Affiliates, distributors or sublicensees to Third
Parties as may be necessary or useful in connection with the performance of
this Agreement, or the exercise of its rights hereunder, including permitted
subcontracting or sublicensing transactions in connection therewith, provided
that the Receiving Party making such disclosure shall require that such Third
Party receiving such Confidential Information shall observe at least the same
obligations of confidentiality as such Party owes under this Agreement.

 

13.4                           Terms
of Agreement.  Neither Party shall disclose
any terms or conditions of this Agreement to any Third Party without the prior
consent of the other Party; provided, however, that a Party may
disclose the terms or conditions of this Agreement (but not any other
Confidential Information), (a) on a need-to-know basis to its legal and
financial advisors to the extent such disclosure is reasonably necessary,
(b) to a Third Party in connection with (i) an equity investment in
such Party, (ii) a merger, consolidation or similar transaction by such
Party, or (iii) the sale of all or substantially all of the assets of such
Party or (c) as otherwise required by law or regulation, provided that the
disclosing Party shall (i) if practicable, provide the other Party with
reasonable advance notice of and an opportunity to comment on any such required
disclosure, (ii) if requested by such other Party, seek, or cooperate with
such Party’s efforts to obtain, confidential treatment or a protective order
with respect to any such disclosure to the extent available at such other
Party’s expense, provided that, at AZ’s request, ABX shall seek a confidential
treatment request for any such disclosure filed by ABX with the United States
Securities and Exchange Commission at ABX’s sole cost and expense, and
(iii) use good faith efforts to incorporate the comments of such other
Party in any such disclosure or request for confidential treatment or
protective order; and provided  further that such terms and
conditions shall be deemed Confidential Information and the Party making such
disclosure shall require that such Third Party receiving such Confidential
Information shall observe the same obligations of confidentiality as such Party
owes under this Agreement with respect to Confidential Information of the other
Party.  Notwithstanding the foregoing, prior to execution of this
Agreement, the Parties have agreed upon the substance of information that can
be used to describe the terms and conditions of this transaction in the form of
a press release attached as Exhibit M, and each Party

 

118

 

may disclose such
information, as modified by mutual written agreement of the Parties, without
the consent of the other Party.

 

13.5                           Use of Name/Publicity.  Neither Party shall mention or otherwise use
the name, insignia, symbol, trademark, trade name or logotype of the other
Party or its Affiliates in any manner without the prior written consent of the
other Party in each instance (which shall not be unreasonably withheld or
delayed).  The restrictions imposed by
this Section shall not prohibit any Party from making any disclosure
identifying the other Party that is required by Applicable Law or the
requirements of a national securities exchange or another similar regulatory
body, provided that (a) any other information that is legally required to
be disclosed shall be governed by Sections 13.3.1 and 13.4, as applicable,
and (b) the disclosing Party shall use reasonable efforts to notify the
other Party prior to making such disclosure.

 

13.6                           Publications and Presentations.  The Parties acknowledge that scientific
lead-time is a key element of the value of the activities during the Antigen
Designation Term and under each Research Program and each Development Program
and further agree that scientific publications must be strictly monitored to
prevent any adverse effect from premature publication of results of such
activities.  Accordingly,
(a) neither Party shall publish, present or otherwise publicly disclose
any Antigen-Specific Technology, Collaboration Technology or Development
Program Technology relating to a Collaboration Antigen, without the prior
written consent of the other Party, until the designation of a Candidate Drug
that binds to and is directed against such Collaboration Antigen; (b) ABX
shall not publish, present or otherwise publicly disclose any Antigen-Specific
Technology, Collaboration Technology, Development Program Technology,
Additional Development Program Technology or other AZ Information relating to a
Collaboration Antigen without the prior written consent of AZ, after the
designation of a Candidate Drug that binds to and is directed against such
Collaboration Antigen, until such Collaboration Antigen is designated (i) a Failed Antigen subject
to Section 4.15, (ii) a
Discontinued Antigen for which ABX has provided an Exercise Notice within the
applicable one (1) year period and then only with respect to such
Collaboration Technology, Development Program Technology and Additional
Development Program Technology relating
to Candidate Drugs that bind to and are directed against such Discontinued
Antigen, or (iii) a Discontinued Antigen for which ABX has not provided an
Exercise Notice and then only with respect to such ABX Antigen-Specific
Know-How Rights and ABX Antigen-Specific Patent Rights and Collaboration
Technology that does not relate
to Candidate Drugs that bind to and are directed against such Discontinued
Antigen; and (c) AZ shall not publish, present or otherwise
publicly disclose any Collaboration Technology, Development Program Technology
or Additional Development Program Technology relating to a Failed Antigen
during the one (1) year period in which ABX is independently pursuing such
Failed Antigen pursuant to Section 4.15 or a Discontinued Antigen for which ABX has provided an Exercise
Notice within the applicable one (1) year period, in each case, only with
respect to such Collaboration Technology, Development Program Technology
and Additional Development Program Technology that relates to Candidate Drugs that bind to and are
directed against such Failed Antigen or Discontinued Antigen, as
applicable, without the prior written consent of ABX.

 

119

 

14.                                 REPRESENTATIONS AND WARRANTIES

 

14.1                           Representations and Warranties of the Parties.  Each Party represents and
warrants to the other Party, as of the date of this Agreement, as follows:

 

14.1.1                  Organization. 
Such Party is duly organized, validly existing and in good standing
under the laws of the jurisdiction in which it is organized.

 

14.1.2                  Authorization and Enforcement of
Obligations.  Such Party (a) has the requisite power
and authority and the legal right to enter into this Agreement and the Purchase
Agreement and to perform its obligations hereunder and thereunder; and
(b) has taken all requisite action on its part to authorize the execution
and delivery of this Agreement and the Purchase Agreement and the performance
of its obligations hereunder and thereunder. 
This Agreement and the Purchase Agreement each has been duly executed
and delivered on behalf of such Party, and constitutes a legal, valid and
binding obligation, enforceable against such Party in accordance with its
terms, except as may be limited by bankruptcy, insolvency, reorganization or
other laws affecting creditors’ rights generally and by general equitable
principles.

 

14.1.3                  Consents. 
All necessary consents, approvals and authorizations of all governmental
authorities and other Persons required to be obtained by such Party to enter
into, or perform its obligations under, this Agreement have been obtained,
other than in connection with the Hart-Scott-Rodino Antitrust Act of 1976, as
amended, and the regulations promulgated thereunder.

 

14.1.4                  No Conflict. 
The execution and delivery of this Agreement and the performance of such
Party’s obligations hereunder (a) will not conflict with or violate any
requirement of Applicable Law or orders of governmental bodies except as
individually or in the aggregate would not be reasonably expected to have a
material adverse effect on or a material adverse change in the ability of such
Party to perform its obligations under or with respect to this Agreement; and
(b) do not conflict with, or constitute a default under, any contractual
obligation of such Party, except as individually or in the aggregate would not
have a material adverse effect on or a material adverse change in the ability
of such Party to perform its obligations under or with respect to this
Agreement.

 

14.2                           Additional Representations, Warranties and Covenants of ABX. 
ABX represents and warrants to AZ, as of the date of this Agreement
(except as otherwise expressly set forth below), that and covenants as set
forth below:

 

14.2.1                  The Core Technology is sufficient to
conduct the activities described in, and in accordance with, the template
Research Program Work Plan generally (without regard to any specific antibody
or antigen).  Schedule 14.2.1 sets
forth (a) all of the Core Patent Rights, and (b) any agreements by
which the Core Patent Rights are Controlled by ABX or its Affiliates, in each
case as such rights exist as of the date of this Agreement.  Except with respect to Excluded
Antigens and Partially Committed Antigens or as otherwise expressly disclosed
to AZ in writing prior to the date of this Agreement, neither ABX nor its
Affiliates have granted any right or license, in effect as of the date of this
Agreement, under the Licensed ABX IP Rights or any other intellectual property
rights to Exploit Antibody Equivalents that

 

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bind to and are directed against, or products (other
than Antibody Equivalents) with respect to, the Proposed Antigens listed on
Exhibit A-1 or A-2 as of the Effective Date.  During the term of this Agreement, ABX shall not, except as
expressly otherwise permitted by the terms of this Agreement, (a) encumber
the rights granted to AZ hereunder with respect to the Patent Rights included
in the Licensed ABX IP Rights or such Patent Rights themselves, (b) commit
any acts or permit the occurrence of any omissions that would cause the
termination of any ABX In-Licenses, or (c) amend or otherwise modify or
permit to be amended or modified, any ABX In-License, in each of
clauses (a) through (c) that would have a material adverse effect on the
rights of AZ hereunder.  Neither ABX nor
its Affiliates is in material breach of any ABX In-License regarding the Core
Technology.  ABX shall promptly provide
AZ with notice of any alleged or actual breach of any ABX In-License by ABX or
its Affiliates that becomes known to ABX or its Affiliates.

 

14.2.2                  To the knowledge
of ABX and its Affiliates, (a) the Patent Rights included in the Licensed
ABX IP Rights are being diligently prosecuted and maintained in all material
respects in accordance with all applicable laws and regulations, and
(b) all applicable fees relating thereto have been within a time period
and in a manner sufficient to maintain such Patent Rights.

 

14.2.3                  To the knowledge
of ABX and its Affiliates, there is no actual infringement of the Licensed ABX
IP Rights by any Third Party, and neither ABX nor its Affiliates has received
express written notice of the intended or threatened infringement of the
Licensed ABX IP Rights by any Third Party, in each case that would materially
adversely affect AZ’s rights under this Agreement.

 

14.2.4                  The performance
of the activities that are Reasonably Necessary to conduct a Research Program
generally (but not with respect to a specific antibody or antigen) will not
infringe the Patent Rights of any Third Party (other than those Patent Rights
included in the Licensed ABX IP Rights).

 

14.2.5                  To the knowledge
of ABX and its Affiliates, the XenoMouse Patent Rights, Antibody Patent Rights
owned by ABX or for which ABX controls the right to prosecute, Core Patent
Rights and the ABX Prior Antigen-Specific Patent Rights included in the
Licensed ABX IP Rights with respect to the Proposed Antigens set forth in
Exhibit A have not been held by a court of competent jurisdiction to be
invalid or unenforceable, in whole or in part. 
ABX has not received written notice of any claim or litigation by any
Person alleging that any of the XenoMouse Patent Rights, Antibody Patent Rights
owned by ABX or for which ABX controls the right to prosecute, Core Patent
Rights or the ABX Prior Antigen-Specific Patent Rights included in the Licensed
ABX IP Rights is invalid or unenforceable. 
Except with respect to the conduct alleged by Cell Genesys in litigation
between Cell Genesys and GenPharm International, Inc., which allegations were
subsequently released by Cell Genesys, to the knowledge of ABX and its
Affiliates, the conception, development and reduction to practice of the
Licensed ABX IP Rights existing as of the date of this Agreement have not
constituted or involved the misappropriation of trade secrets or other rights
or property of any Person.  ABX has not
received written notice of any claim or litigation asserted or commenced
against ABX or any of its Affiliates that would have a material adverse effect
on the rights granted to AZ under this Agreement.

 

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14.2.6                  Except as
expressly permitted in Section 17.3.1 or 17.3.6, neither ABX nor its
Affiliates will grant any right, title or interest in or to the Licensed ABX IP
Rights to any Person or take any action with respect thereto (including by
granting any covenant not to sue) that is inconsistent with the rights and licenses
granted to AZ under this Agreement.

 

14.2.7                  In respect of
the pending U.S. patent applications included in the Core Patent Rights and the
ABX Prior Antigen-Specific Patent Rights, in each case of which ABX controls
the prosecution, to the knowledge of ABX, ABX has presented all material prior
art of which it and the inventors are aware to the U.S. Patent and Trademark
Office and, to the extent required by Applicable Law, all other relevant patent
offices.

 

14.2.8                  To the knowledge
of ABX, the Information ABX has furnished AZ regarding or related to each
Proposed Antigen that is listed on Exhibit A is true and correct.

 

14.2.9                  ABX has not been
debarred and is not subject to debarment and ABX will not use in any capacity
in the conduct of ABX’s obligations under the Development Program, Process
Development Program or the Manufacturing and Supply Agreement, any Person who
has been debarred pursuant to Section 306 of the United States Federal
Food, Drug, and Cosmetic Act, as amended, (or any similar Applicable Law
outside the United States) or who is the subject of a conviction described in
such section.  ABX agrees to inform AZ
in writing immediately if it or any Person who is performing services hereunder
is debarred or is the subject of a conviction described in Section 306 (or
such other Applicable Law), or if any action, suit, claim, investigation or
legal or administrative proceeding is pending or, to the knowledge of ABX or
its Affiliates, is threatened, relating to the debarment or conviction of ABX or
any Person performing services hereunder.

 

14.2.10            Except as otherwise
expressly disclosed in writing to AZ prior to the date of this Agreement or
permitted by clause (j) of Section 17.1.1, ABX has not granted any
rights or entered into any agreement with a Third Party with respect to any
Proposed Antigen listed on Exhibit A-1 or A-2, except for those Antigens that are Partially Committed
Antigens and are expressly identified as such on Exhibit A-1 or A-2, as
applicable.  Other than Partially
Committed Antigens as are expressly identified as such on Exhibit A-1 or
A-2 (as applicable) and Committed Antigens as of the Effective Date,
Schedule 14.2.10 accurately represents, in all material respects,
(i) the maximum number of Persons with which ABX or its Affiliate has
entered into agreements in which ABX or its Affiliate has granted rights with
respect to one (1) or more antigens with respect to which such Person may
acquire a license under such agreements during the Antigen Designation Term,
and (ii) the [Confidential treatment requested] that could become
[Confidential treatment requested] if all of the [Confidential treatment
requested] under such agreements were [Confidential treatment requested] and
all such [Confidential treatment requested] were [Confidential treatment
requested] with respect to Antigens.

 

14.2.11            The Antigens listed on
Schedule 14.2.11A were Committed Antigens at the time they first were
proposed by AZ prior to the date of this Agreement, and within sixty (60) days
following the date of this Agreement, ABX shall verify whether such Antigens
remain Committed Antigens.  The Proposed
Antigens listed on Schedule 14.2.11B

 

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were Partially Committed Antigens at the time they
first were proposed by AZ prior to the date of this Agreement.

 

14.2.12            With respect to each
Partially Committed Antigen that is designated as a Collaboration Antigen
(prior to such Antigen becoming a Committed Antigen) in accordance with
Section 2.2.2(c) from time to time, and each Antigen nominated by a Third
Party pursuant to Section 2.2.2(d) that is designated as a Collaboration
Antigen in accordance with Section 2.2.2(d) from time to time, the license
grants under Article 4 shall, notwithstanding the use of the defined term
“Control” in the various intellectual property definitions that comprise the
Licensed ABX IP Rights, provide AZ with the sole and exclusive license under
such Licensed ABX IP Rights, on the terms and conditions of this Agreement, to
Exploit, for use in the Commercial Field, Antibodies and Candidate Drugs that
bind to and are directed against Collaboration Antigens that are designated
pursuant to the procedures set forth in Article 2 of this Agreement,
except to the extent that any restrictions or limitations on such rights were
disclosed pursuant to Section 2.2.1(c). 
On the date of the designation of each Partially Committed Antigen as a
Collaboration Antigen in accordance with Section 2.2.2(c), (i) ABX
has the right to, and will, immediately initiate steps [Confidential treatment
requested], all non-exclusive licenses or other rights [Confidential treatment
requested] with respect to such Antigen, (ii) ABX shall give written
notice to AZ promptly following the [Confidential treatment requested], and (iii) [Confidential
treatment requested] as a result of any such actions taken by ABX or as a
result of [Confidential treatment requested]. 
Other than with respect to Partially Committed Antigens or as otherwise
permitted under clause (j) of Section 17.1.1, once an Antigen has
been designated as a Proposed Antigen, ABX will not grant any rights or
licenses to any Person with respect to such Antigen, whether under an Existing
Collaboration or otherwise, until such Antigen becomes a Non-Selected Antigen,
subject to Section 4.15, a Failed Antigen or, subject to
Section 4.5.1, a Discontinued Antigen. 
Other than with respect to Partially Committed Antigens or as otherwise
permitted under clause (j) of Section 17.1.1, as of the date that an
Antigen is designated as a Collaboration Antigen in accordance with
Section 2.2.2(c), neither ABX nor its Affiliates shall have granted any
right or license to, or have any agreement with, a Person with respect thereto
in effect as of such date.

 

14.2.13            Except as expressly
provided by the terms of this Agreement or as otherwise agreed in writing
between the Parties, neither AZ nor its Affiliates will at any time have any
liability to any Third Party under an Existing Collaboration or any other
agreement between ABX or its Affiliates and such Third Party to the extent
resulting from (i) this Agreement, (ii) the execution of this
Agreement, (iii) the Parties’ exercise of their rights or the performance
of their obligations under or in accordance with this Agreement or
(iv) ABX’s or its Affiliates’ activities in connection with this
Agreement.

 

14.3                           Additional Representation, Warranty and Covenant of AZ.  AZ represents, warrants and covenants that it is AZ’s intention,
as of the date of the designation of an Antigen as a Collaboration Antigen, to
commercialize a Licensed Product that binds to and is directed against such
Collaboration Antigen for an application other than a Gene Therapy application.
It is understood, however, that AZ may or may not also intend to develop and
commercialize Licensed Products that bind to and are directed against such
Collaboration Antigen for use in a Gene Therapy application, and that such Gene
Therapy application may ultimately be

 

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commercialized before a Licensed Product that binds to
and is directed against such Collaboration Antigen is commercialized hereunder
for a non-Gene Therapy application.

 

14.4                           DISCLAIMER
OF WARRANTIES.

 

14.4.1                  EXCEPT AS EXPRESSLY SET FORTH IN THIS
AGREEMENT, NEITHER PARTY MAKES ANY REPRESENTATIONS OR WARRANTIES, EXPRESS OR
IMPLIED, REGARDING THE LICENSED IP RIGHTS, INCLUDING ANY REPRESENTATION OR
WARRANTY REGARDING VALIDITY, ENFORCEABILITY, MERCHANTABILITY, FITNESS FOR A
PARTICULAR PURPOSE OR NONINFRINGEMENT. 
EXCEPT AS EXPRESSLY SET FORTH IN THIS AGREEMENT, THE LICENSED IP RIGHTS
AND THE INFORMATION AND INVENTIONS INCLUDED IN THE LICENSED IP RIGHTS PROVIDED
TO A PARTY HEREUNDER ARE PROVIDED “AS IS.”

 

14.4.2                  NOTWITHSTANDING ANYTHING TO THE
CONTRARY IN THIS AGREEMENT, (A) BOTH PARTIES ACKNOWLEDGE AND AGREE THAT,
NOTWITHSTANDING THE COMMERCIALLY REASONABLE EFFORTS OF THE PARTIES, THE
ACTIVITIES TO BE CONDUCTED UNDER THE RESEARCH PROGRAMS AND DEVELOPMENT PROGRAMS
ARE INHERENTLY UNCERTAIN, AND THAT THERE ARE NO ASSURANCES THAT THE PARTIES
WILL SUCCESSFULLY GENERATE ANTIBODIES THAT BIND TO AND ARE DIRECTED AGAINST ANY
COLLABORATION ANTIGEN, THAT ANY SUCH ANTIBODIES THAT ARE GENERATED WILL MEET
THE CDTP OR WILL BE ACCEPTABLE FOR DESIGNATION AS CANDIDATE DRUGS, OR THAT ANY
SUCH ANTIBODIES WILL BE SUCCESSFULLY DEVELOPED AND COMMERCIALIZED AS COMMERCIAL
PRODUCTS; AND (B) EACH PARTY EXPRESSLY DISCLAIMS ANY REPRESENTATIONS OR
WARRANTIES, EXPRESS OR IMPLIED, TO THE CONTRARY.

 

14.5                           Additional Agreement of the Parties.  Each Party shall obtain from each of its
Affiliates, employees, contractors and agents, who (a) are performing the
Research Programs or any activities under a Development Program, (b) are
otherwise participating in the Exploitation of the Licensed Products or (c) otherwise
have access to any Confidential Information of the other Party, rights to any
and all Information and inventions that relate to the Collaboration Antigens,
Antibodies, Candidate Drugs or Licensed Products, such that the other Party
shall, by virtue of this Agreement, receive from such Party, without payments
beyond those required by Article 9, the licenses and other rights granted
to the other Party.

 

15.                                 INDEMNIFICATION AND INSURANCE

 

15.1                           AZ.  AZ shall indemnify and hold harmless ABX and
its Affiliates, their respective permitted sublicensees, Distributors and
subcontractors and each of their directors, officers, employees and agents (the
“ABX Indemnitees”) from and against all losses, liabilities, damages and
expenses, including reasonable attorneys’ fees and costs (collectively, “Liabilities”),
resulting from any claims, demands, actions or other proceedings (including for
personal injury, death or disability) by any Third Party (“Claims”) to
the extent resulting from (a) the gross negligence or willful misconduct
of AZ under, or material breach by AZ of, this

 

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Agreement (including
any representation, warranty or covenant therein); (b) the Exploitation by
AZ, its sublicensees (other than ABX) or their respective Affiliates of AZ
Products (but excluding any such Liabilities or Claims to the extent resulting
from the negligence of ABX or its Affiliates or their respective agents or
subcontractors under this Agreement, any Co-Development Agreement, the Process
Science/Clinical Manufacture Agreement, the Manufacturing and Supply Agreement
or any other Related Agreement); or (c) the infringement (or alleged
infringement) by any ABX Indemnitee in performing ABX’s obligations under the
Research Programs or the Development Programs, of the Patent Rights of one or
more Third Parties to the extent that such Patent Rights claim any
Collaboration Antigen (other than a Proprietary ABX Antigen) or the use thereof
or, to the extent AZ knew or reasonably should have known of Third Party Patent
Rights and did not disclose them to ABX pursuant to Section 2.2.2(c), the
Additional Technology Controlled by AZ that was originally disclosed by AZ for
use under the applicable Research Program or Development Program (to the extent
included in this Agreement pursuant to Section 2.2.2(b), 2.2.3(b) or
5.3.1); except in each case ((a), (b) or (c)) for those Liabilities for
which ABX has an obligation to indemnify AZ and its Affiliates pursuant to
Section 15.2, as to which Liabilities each Party shall indemnify the other
to the extent of their respective Liabilities.

 

15.2                           ABX.  ABX shall indemnify and hold harmless AZ and
its Affiliates, their respective permitted sublicensees, Distributors and
subcontractors and each of their directors, officers, employees and agents (the
“AZ Indemnitees”) from and against all Liabilities resulting from any
Claims to the extent resulting from (a) the gross negligence or willful
misconduct of ABX under, or material breach by ABX of, this Agreement (including
any representation, warranty or covenant therein); (b) the Exploitation by
ABX, its sublicensees (other than AZ) or their respective Affiliates of ABX
Products (but excluding any such Liabilities or Claims to the extent resulting
from the negligence of AZ or its Affiliates or their respective agents or
subcontractors under this Agreement, any Co-Development Agreement, the Process
Science/Clinical Manufacture Agreement, the Manufacturing and Supply Agreement
or any other Related Agreement); (c) the infringement (or alleged
infringement) by (x) any AZ Indemnitee in performing AZ’s obligations, or
exercising AZ’s rights, or (y) any ABX Indemnitee in performing ABX’s
obligations, or exercising ABX’s rights, in each case under this Agreement to
the extent that such infringement results from (i) the use of the Core
Technology under this Agreement, or (ii) to the extent ABX knew or
reasonably should have known of Third Party Patent Rights and did not disclose
them to AZ pursuant to Section 2.2.1(c), 2.2.1(j), 2.2.1(k), the second
sentence of Section 4.17.2 or Section 2.2.2(b), 2.2.3(b) or 5.3.1,
the Additional Technology Controlled by ABX that was originally disclosed by
ABX for use under the applicable Research Program or Development Program or
Antibody Technology (other than Core Antibody Technology) or XenoMouse Methods
(other than Core XenoMouse Technology) (in each case to the extent included in
this Agreement pursuant to Section 2.2.2(b), 2.2.3(b) or 5.3.1); or
(d) the infringement (or alleged infringement) of other intellectual
property rights of any Third Party, by the performance of (i) any work by
or on behalf of ABX with respect to an Advanced ABX Antigen, Accelerated ABX
Antigen, Expedited ABX Antigen, Potential Co-Development Antigen or ABX Diagnostic
Antigen prior to each such Antigen being designated as a Collaboration Antigen,
or (ii) any work by or on behalf of ABX under an internal program pursuant
to Section 4.15 with respect to a Failed Antigen prior to such Antigen
being re-designated as a Collaboration Antigen pursuant to Section 4.15; except
in each case ((a), (b), (c) or (d)) for those Liabilities for which AZ has an
obligation to indemnify ABX and its Affiliates

 

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pursuant to Section 15.1, as to which Liabilities
each Party shall indemnify the other to the extent of their respective
Liabilities.

 

15.3                           Procedure.

 

15.3.1                  Notice and Right to Participate. 
Each Party (the “Indemnitee”) shall promptly notify the other
Party (the “Indemnitor”) in writing of any Claim, and the Indemnitor
shall have the right to participate in, and, to the extent the Indemnitor so
desires, to assume the defense thereof with counsel mutually satisfactory
(consent not to be unreasonably withheld or delayed) to the Parties by
giving written notice to the Indemnitee within [Confidential treatment
requested] after receipt of written notice of such Claim from the Indemnitee; provided, however, that
an Indemnitee shall have the right to retain its own counsel, with the fees and
expenses to be paid (a) by the Indemnitor, if representation of such
Indemnitee by the counsel retained by the Indemnitor would be inappropriate due
to actual or potential differing interests between the Indemnitee and any other
Party represented by such counsel in such proceeding; or (b) by Indemnitee
in all other cases.  In no event
shall the Indemnitor be liable for any Liabilities that result from any delay
by the Indemnitee in providing the written notice pursuant to the first
sentence of this Section 15.3.1.  In the event that it is ultimately
determined that the Indemnitor is not obligated to indemnify, defend or hold
harmless an Indemnitee from and against such Claim, the Indemnitee shall
reimburse the Indemnitor for any and all costs and expenses (including
attorneys’ fees and costs of suit) and any Liabilities incurred by the
Indemnitor in its defense of such Claim with respect to the Indemnitee.  The
Indemnitee, its employees and agents shall reasonably cooperate with the
Indemnitor and its legal representatives in the investigation of any Claim
covered by this Article 15.

 

15.3.2                  Settlement.  With respect to all Liabilities in
connection with Claims, where the Indemnitor has assumed the defense of the
Claim in accordance with Section 15.3.1, the Indemnitor shall have
authority to consent to the entry of any judgment, enter into any settlement or
otherwise dispose of such Claim provided it obtains the prior written consent
of the Indemnitee (which consent shall not be unreasonably withheld or delayed)
if such Claim could have adverse effect on the Indemnitee or Indemnitee’s
Products hereunder.  The Indemnitor
shall not be liable for any settlement or other disposition of a Claim by an
Indemnitee that is reached without the written consent of the Indemnitor.  Regardless of whether the Indemnitor chooses
to defend or prosecute any Claim, no Indemnitee shall admit any liability with
respect to, or settle, compromise or discharge, any Claim without the prior
written consent of the Indemnitor, not to be unreasonably withheld or delayed.

 

15.4                           Insurance.  ABX and AZ agree to maintain
general liability insurance and shall, during the term of this Agreement,
maintain adequate insurance or self-insurance programs for liability insurance
adequately covering such Party’s obligations under this Agreement, which, with
respect to ABX, shall include at a minimum the insurance policies and limits
(or self-insurance amounts) that are maintained by ABX as of the Effective
Date.  ABX and AZ shall provide to the
other evidence of such insurance, upon request.  Notwithstanding the foregoing, once there is a First
Commercial Sale of an AZ Product or ABX Product, ABX shall maintain, at a
minimum, during the term of this Agreement and for a period of [Confidential
treatment requested] from the expiration or earlier termination of this
Agreement, (a) commercial general liability insurance with a combined
single limit for bodily injury of not less than [Confidential

 

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treatment requested] each occurrence and [Confidential
treatment requested] in the aggregate, and (b) products
liability/completed operations coverage with a per claim limit of not less than
[Confidential treatment requested]. 
Such policies shall (x) be provided by insurance carrier(s) that
have a financial rating of A as reported in Best’s Key Rating Guide Standard
& Poors, (y) with
respect to the policies under clause (b), show AZ as an additional insured
and loss payee, and (z) provide that AZ will be given thirty (30)
days advance written notice of the termination or cancellation thereof.  Such policies shall remain in effect during
any Research Program or Development Program and for so long as ABX is
Exploiting ABX Products and shall not be cancelled or subject to a reduction of
coverage without the prior written authorization of AZ.  To the extent that any of the insurance
policies required herein be issued on a “claims-made” basis, the Retrospective
Date (“Retro Date”) shall precede the Effective Date of this Agreement.  Furthermore, in the event that the Retro
Date of any required policy is changed, ABX must advise AZ of that event and
purchase an Extended Reporting Period policy or endorsement (“Tail Cover”)
covering a period of [Confidential treatment requested] prior to the effective
date of the change.

 

16.                                 TERM; TERMINATION

 

16.1                           Term.

 

16.1.1                  This Agreement shall commence on the
Effective Date and, unless earlier terminated pursuant to Article 16,
shall continue in effect until the expiration of the Parties’ obligations to
pay royalties, provided that such expiration shall not affect any obligations
of the Parties under the Process Science/Clinical Manufacture Agreement and the
Manufacturing and Supply Agreement.

 

16.1.2                  If the
termination or expiration of the applicable waiting period under the
Hart-Scott-Rodino Antitrust Act of 1976, as amended, and the regulations
promulgated thereunder, has not occurred on or before October 25, 2003,
then the Parties shall meet and in good faith discuss how to proceed.  If the termination or expiration of the
applicable waiting period under the Hart-Scott-Rodino Antitrust Act of 1976, as
amended, and the regulations promulgated thereunder, has not occurred on or
before November 25, 2003, and the Parties fail to reach mutual agreement
on how to proceed on or before November 25, 2003, then this Agreement will, without any further action of the Parties,
terminate automatically on such date, provided that the provisions of
Articles 13 and 15 and Sections 14.4 and 20.9 shall survive any such
termination and continue thereafter. 
For the avoidance of doubt, such termination shall not relieve either
Party of any liability for any breach of this Agreement occurring prior to the
date of termination.

 

16.1.3                  Notwithstanding the foregoing, this Agreement will, without any further
action of the Parties, terminate automatically upon any termination of the
Purchase Agreement pursuant to Section 9.1 thereof at a time when the
Initial Closing Date has not occurred, provided that the provisions of
Articles 13 and 15 and Sections 14.4 and 20.9 shall survive any such
termination and continue thereafter. 
For the avoidance of doubt, such termination shall not relieve either
Party of any liability for any breach of this Agreement occurring prior to the
date of termination.

 

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16.2                           Change in Control or Acquisition
of ABX.  If ABX undergoes a
Change in Control or engages in an Acquisition at any time prior to the
completion of the Antigen Designation Term, all Research Programs, all
activities under the Development Programs that ABX is to perform or all Process
Development Programs, then ABX (or its successor) shall provide AZ with a
written notice of such Change in Control or Acquisition on the date of the
first public announcement of such Change in Control or Acquisition and a
written notice on the closing date or effective date of such Change in Control
or Acquisition, whichever is later.  The
written notice on the closing date or effective date of such Change in Control
or Acquisition, whichever is later, shall include a written list of any
Competitive Product with respect to a Collaboration Antigen or Prioritized
Antigen.  AZ shall have the right, in
its sole discretion, at any time during the ninety (90) day period following
AZ’s receipt of such written notice on the closing date, to (a) terminate
the Research Program, Development Program and Process Development Program, and
(unless ABX and AZ have a manufacturing agreement in place with respect to a
Collaboration Antigen for which there is a Competitive Product) terminate the
Parties’ rights and obligations under Article 7 and the Manufacturing and
Supply Agreement, with respect to a Collaboration Antigen for which there is a
Competitive Product, or (b) if the other party to the Change in Control or
Acquisition is a Competitor, terminate the Antigen Designation Term in its
entirety, if still in force, and terminate all Research Programs, all
Development Programs and all Process Development Programs with respect to all
Collaboration Antigens, and (unless ABX and AZ have a manufacturing agreement
in place with respect to a Collaboration Antigen) terminate the Parties’ rights
and obligations under Article 7 and the Manufacturing and Supply Agreement
with respect to such Collaboration Antigen. 
As soon as reasonably practicable after the public announcement of such
Change in Control or Acquisition, ABX (or its successor) shall meet with AZ to
discuss in good faith what effect, if any, the Change in Control or Acquisition
will have on ABX’s (or its successor’s) performance of its obligations under
this Agreement.  Notwithstanding any
Change in Control or Acquisition by ABX, or the announcement thereof, during
the Antigen Designation Term, AZ shall have the right, regardless of the cap on
the number of Prioritized Antigens or Collaboration Antigens that may be
designated during any period (other than the cap on the total number of
designations during the Antigen Designation Term) as set forth in Sections 2.2.1(n)
and 2.2.1(a), respectively, to continue to designate Antigens as Proposed
Antigens, Proposed Antigens as Prioritized Antigens and Collaboration Antigens,
and Prioritized Antigens as Collaboration Antigens pursuant to
Sections 2.2.1(c), 2.2.2(a) and 2.2.2(c), and ABX (or its successor) shall
continue to be bound by the terms and conditions of this Agreement with respect
thereto, unless and until an Antigen becomes a Non-Selected Antigen or this
Agreement is terminated pursuant to Section 16.2(b), in which case the
provisions of Sections 16.8.2(a) and 16.8.2(b) shall apply.  Notwithstanding anything to the contrary in this Agreement, in the event
that AZ undergoes a Change in Control or Acquisition during the Antigen
Designation Term, AZ shall have the right, in its sole discretion, to designate
Proposed Antigens as Prioritized Antigens or Collaboration Antigens regardless
of the cap on the number of Prioritized Antigens or Collaboration Antigens that
may be designated during any period (other than the cap on the total
number of designations during the Antigen Designation Term) as set forth in Sections 2.2.1(n) and 2.2.1(a), respectively; provided,
however, that such acceleration of the designation of Collaboration
Antigens shall not require ABX to commence more than sixteen (16) Research
Programs in any year.  If, at any
time after the closing date of a Change in Control or Acquisition, AZ proposes
an Antigen as a Proposed Antigen pursuant to Section 2.2.1(a) or wishes to
designate a Proposed Antigen as a

 

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Prioritized Antigen pursuant to Section 2.2.2(a)
or as a Collaboration Antigen pursuant to Section 2.2.2(c), ABX (or its
successor) shall, within twenty (20) days of receipt of the applicable Antigen
Notice or written notice from AZ pursuant to Section 2.2.2(a) or
Section 2.2.2(c), as applicable, notify AZ of any Competitive Product with
respect to such Antigen.  If there is
such a Competitive Product, AZ shall have the right to withdraw such Proposed
Antigen or Collaboration Antigen, as applicable, within thirty (30) days after
such notice and such Antigen shall not count against the Proposed Antigen
totals set forth in Sections 2.2.1(n) and 2.2.1(o) or the Collaboration
Antigen totals set forth in Sections 2.2.1(a) and 2.2.2(f).  Notwithstanding the foregoing, in the event
of any Change in Control or Acquisition by or with ABX, the exclusivity
provisions in Article 17 shall continue in full force.  For the avoidance of doubt, AZ shall have
the right to designate Antigens for which there are Competitive Products as
Proposed Antigens, Prioritized Antigens and Collaboration Antigens under this
Agreement and neither ABX nor its successor shall have any rights under this
Agreement with respect to a Competitive Product or the Antigen against which
such Competitive Product is directed (except as otherwise expressly provided in
Sections 17.4.1 and 17.5.1) and no such Antigen shall be deemed a
Committed Antigen, Excluded Antigen or Partially Committed Antigen for purposes
of this Agreement.

 

16.3                           Termination by AZ for Breach.

 

16.3.1                  If ABX has materially breached a
material obligation under this Agreement or the Process Science/Clinical
Manufacture Agreement, and such material breach shall continue for thirty (30)
days after written notice thereof from AZ to ABX (or if such breach cannot be
cured within such thirty (30) day period, ABX does not commence actions to cure
such breach within such thirty (30) day period and thereafter diligently
continue such actions), then AZ shall have the right, at its option, to terminate
(a) the Antigen Designation Term in its entirety or (b) all Research
Programs, all Development Programs and all Process Development Programs with
respect to all Collaboration Antigens, and (unless ABX and AZ have a
manufacturing agreement in place with respect to a Collaboration Antigen)
terminate the Parties’ rights and obligations under Article 7 and the
Manufacturing and Supply Agreement with respect to such Collaboration Antigen,
provided that if the Antigen Designation Term has not expired, AZ must also
terminate the Antigen Designation Term under Section 16.3.1(a) to exercise
it rights under this Section 16.3.1(b).

 

16.3.2                  If ABX has materially breached a
material obligation under the Research Program for a specific Collaboration
Antigen, and such material breach shall continue for thirty (30) days after
written notice thereof from AZ to ABX (or if such breach cannot be cured within
such thirty (30) day period, ABX does not commence actions to cure such breach
within such thirty (30) day period and thereafter diligently continue such
actions), then AZ shall have the right at its option to (a) perform or
have performed pursuant to Section 2.3.7 any activities under such
Research Program that ABX has failed to timely perform, provided that AZ shall
not have to provide the additional thirty (30) day notice required under
Section 2.3.7 before commencing such performance, (b) terminate the
Research Program and the Development Program for such Collaboration Antigen, or
(c) terminate this Agreement with respect to such Collaboration Antigen.

 

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16.3.3                  If ABX has materially breached a
material obligation under the Development Program for a specific Collaboration
Antigen, and such material breach shall continue for thirty (30) days after
written notice thereof from AZ to ABX (or if such breach cannot be cured within
such thirty (30) day period, ABX does not commence actions to cure such breach
within such thirty (30) day period and thereafter diligently continue such
actions), then AZ shall have the right at its option to (a) terminate the
Development Program for such Collaboration Antigen, or (b) terminate this
Agreement with respect to such Collaboration Antigen.

 

16.3.4                  If ABX has materially breached its
obligation under this Agreement to use Commercially Reasonable Efforts (either
alone or through a sublicensee) as required under Section 4.12.1(b) to
develop and commercialize an ABX Product that binds to and is directed against
a Discontinued Antigen for which ABX has provided an Exercise Notice in a Major
Market, AZ shall have the right to provide ABX with a written termination
notice after AZ has complied with the procedures in Section 4.12.2 with
respect to such material breach, and if such material breach shall continue for
thirty (30) days after such termination notice with respect thereto (or if such
breach cannot be cured within such thirty (30) day period, ABX does not
commence actions to cure such breach within such thirty (30) day period and
thereafter diligently continue such actions), then AZ shall have the right to
compel ABX to grant a sublicense with respect to such Antigen and any ABX
Products with respect thereto in such Major Market pursuant to
Section 16.8.2(d).

 

16.3.5                  If ABX has materially breached a
material obligation under Section 9.4 with respect to a Discontinued
Antigen, and such material breach shall continue for thirty (30) days after
written notice thereof from AZ to ABX, then AZ shall have the right to
(a) compel ABX to grant a sublicense to AZ with respect to such Antigen
and any ABX Products with respect thereto pursuant to Section 16.8.2(d),
or (b) to terminate this Agreement with respect to such Discontinued
Antigen.

 

16.4                           Termination by ABX for Breach.

 

16.4.1                  If AZ has materially breached a
material obligation under this Agreement during the Antigen Designation Term,
and such material breach shall continue for thirty (30) days after written
notice thereof from ABX to AZ (or if such breach cannot be cured within such
thirty (30) days period, AZ does not commence actions to cure such breach
within such thirty (30) days period and thereafter diligently continue such
actions), then ABX shall have the right at its option to terminate the Antigen
Designation Term.

 

16.4.2                  If AZ has materially breached a
material obligation under the Research Program for a specific Collaboration
Antigen, and such material breach shall continue for thirty (30) days after
written notice thereof from ABX to AZ (or if such breach cannot be cured within
such thirty (30) days period, AZ does not commence actions to cure such breach
within such thirty (30) days period and thereafter diligently continue such
actions), then ABX shall have the right to perform or have performed pursuant
to Section 2.3.7 any activities under such Research Program that AZ has
failed to timely perform, provided that ABX shall not have to provide the
additional thirty (30) days notice required under Section 2.3.7 before
commencing such performance.

 

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16.4.3                  If AZ has materially breached a
material obligation under the Development Program for a specific Collaboration
Antigen prior to the delivery of an Election Notice, and such material breach
shall continue for thirty (30) days after written notice thereof from ABX to AZ
(or if such breach cannot be cured within such thirty (30) days period, AZ does
not commence actions to cure such breach within such thirty (30) days period and
thereafter diligently continue such actions), then ABX shall have the right at
its option to (a) terminate the Development Program for such Collaboration
Antigen and convert such Collaboration Antigen into a Discontinued Antigen, or
(b) terminate this Agreement with respect to such Collaboration Antigen.

 

16.4.4                  If AZ has materially breached its
obligation under this Agreement to use Commercially Reasonable Efforts (either
alone or through a sublicensee) as required under Section 4.12.1(a) to
develop and commercialize a Licensed Product that binds to and is directed
against a Collaboration Antigen in a Major Market prior to the delivery of an
Election Notice for such Collaboration Antigen to ABX, ABX shall have the right
to provide AZ with a written termination notice after ABX has complied with the
procedures in Section 4.12.2 with respect to such material breach, and if
such material breach shall continue for thirty (30) days after such termination
notice with respect thereto (or if such breach cannot be cured within such
thirty (30) days period, AZ does not commence actions to cure such breach
within such thirty (30) days period and thereafter diligently continue such
actions), then ABX shall have the right at its option to (a) convert such
Collaboration Antigen into a Discontinued Antigen, or (b) terminate this Agreement
with respect to such Collaboration Antigen.

 

16.4.5                  If AZ has materially breached its
obligation under this Agreement to use Commercially Reasonable Efforts (either
alone or through a sublicensee) as required under Section 4.12.1(a) to
develop and commercialize a Licensed Product that binds to and is directed
against a Collaboration Antigen in a Major Market after the delivery of an
Election Notice for such Collaboration Antigen to ABX, ABX shall have the right
to provide AZ with a written termination notice after ABX has complied with the
procedures in Section 4.12.2 with respect to such material breach, and if
such material breach shall continue for thirty (30) days after such termination
notice with respect thereto (or if such breach cannot be cured within such
thirty (30) days period, AZ does not commence actions to cure such breach
within such thirty (30) days period and thereafter diligently continue such
actions), then ABX shall have the right to compel AZ to grant a sublicense with
respect to such Antigen and any Licensed Products with respect thereto in such
Major Market pursuant to Section 16.8.3(b).

 

16.4.6                  If AZ has materially breached a
material obligation under Section 9.3 with respect to a Collaboration
Antigen after the delivery of an Election Notice to ABX for such Collaboration
Antigen, and such material breach shall continue for thirty (30) days after
written notice thereof from ABX to AZ, then ABX shall have the right at its
option to (a) compel AZ to grant a sublicense with respect to such Antigen
and any Licensed Products with respect thereto pursuant to
Section 16.8.3(b), or (b) terminate the Agreement with respect
to such Collaboration Antigen.

 

16.5                           Tolling of Termination.  Notwithstanding Section 16.3 or 16.4,
if the Party alleged to be in breach disputes such termination pursuant to
Section 20.1 or such other dispute resolution as the Parties may agree,
then such right to terminate shall be tolled for so long as

 

131

 

such dispute
resolution procedures are being pursued by such Party in good faith and if it
is finally and conclusively determined pursuant to such procedures that such
Party is in breach, then such Party shall have the right to cure such breach
under Section 16.3 or 16.4 as provided above.

 

16.6                           Termination
for Safety Reasons. 
If AZ
determines, in good faith, that it is not feasible for AZ or its sublicensees
to pursue the research, development, launch or sale of a Licensed Product that binds to and is directed against a Collaboration Antigen in one or
more Major Markets due to safety concerns, including adverse events of such
Licensed Product, then AZ shall promptly notify ABX in writing of such
determination and provide ABX with the pertinent information with respect
thereto.  If ABX determines that it can
solve AZ’s concerns by making the Licensed Product more safe (e.g., by using a
different dose or route of administration) and ABX wishes to convert such
Antigen into a Discontinued Antigen, then ABX shall notify AZ in writing
thereof, which notice shall include any information supporting its
determination.  Promptly following the
receipt of such notice from ABX, the Parties shall discuss the situation in good
faith.  If AZ determines that it is safe
for AZ or its sublicensees to pursue the research, development, launch or sale
of such Licensed Product in such Major Market(s), then AZ shall have the right
to elect not to terminate this Agreement with respect to such Collaboration
Antigen and instead continue to Exploit such Licensed Product pursuant to this
Agreement.  If following such good faith
discussion and review of such information provided by ABX, AZ still believes in
good faith that it is not feasible to pursue the research, development, launch
or sale of such Licensed Product due to safety concerns, AZ may, in its sole
discretion, terminate this Agreement with respect to such Collaboration Antigen
in its entirety or with respect to such Major Market(s) on ninety (90) days
prior written notice to ABX.

 

16.7                           Termination Upon Bankruptcy.  A
Party may terminate the Antigen Designation Term, one or more Research
Programs, one or more Development Programs or this Agreement in its entirety,
if, at any time, the other Party shall file in any court or agency pursuant to
any statute or regulation of any state, country or jurisdiction, a petition in
bankruptcy or insolvency or for reorganization or for an arrangement or for the
appointment of a receiver or trustee of that party or of its assets, or if the
other Party shall be served with an involuntary petition against it, filed in
any insolvency proceeding, and such petition shall not be dismissed within
ninety (90) days after the filing thereof, or if the other Party shall propose
or be a party to any dissolution or liquidation, or if the other Party shall
make an assignment for the benefit of its creditors.

 

16.8                           Effect of Expiration and Termination.

 

16.8.1                  Expiration of Agreement.  Except as otherwise expressly
set forth in this Agreement, upon the expiration of this Agreement under
Section 16.1, the license grants in effect as of the date of expiration of
this Agreement shall continue on a perpetual, irrevocable, non-exclusive,
royalty-free, fully paid up basis.

 

16.8.2                  Termination for Change in Control or
Breach by ABX.

 

(a)                                  Termination for Change in Control or
Breach of Research Program.  If AZ terminates (x) any or all
Research Programs with respect to the Collaboration

 

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Antigens pursuant to
Section 16.2 or 16.3.1, or (y) a Research Program with respect to a
Collaboration Antigen pursuant to Section 16.3.2(b), then the following
shall apply:

 

(i)                                     Licenses and Other Rights. 
The license and other rights granted by ABX to AZ under Section 4.1
with respect to such Collaboration Antigen(s) shall continue without the
obligations and restrictions on AZ under Articles 2, 3, the last
two sentences of Section 4.1, Section 4.12.1, Article 5 and
Article 6, provided that the milestone and royalties payable to ABX with
respect to such Collaboration Antigen(s) shall be governed by
Section 16.8.2(a)(ii).  The
licenses granted by ABX to AZ under Sections 4.2, 4.3 and 4.4 with respect
to such Collaboration Antigen(s) shall terminate to the extent covered by the
license grant in Section 4.1.  ABX
(or its successor) shall assign, and shall cause its Affiliates, licensees and
sublicensees to so assign, to AZ, without additional compensation, all of their
right, title and interest in and to any Collaboration Technology with respect
to such Collaboration Antigen(s) (together with all Patent Rights and other
intellectual property rights therein); provided, however, if and
only to the extent ABX or any of its Affiliates is not legally able to assign
an Antibody that binds to and is directed against such Collaboration Antigen
that was Controlled by ABX as of the date such Collaboration Antigen was
designated as such, such Person shall, and does hereby, grant to AZ, without
further compensation to ABX, a perpetual, irrevocable, exclusive, worldwide
right and license under the applicable Collaboration Know-How Rights and
Collaboration Patent Rights to Exploit such Antibody.  All licenses and
similar rights granted by AZ to ABX with respect to such Collaboration
Antigen(s) shall terminate, including ABX’s rights to such Collaboration
Antigen(s) as Discontinued Antigen(s) or Failed Antigen(s) and ABX’s right and,
except as otherwise provided in Article 5 with respect to a Program Budget
accepted by AZ pursuant to Section 5.3.2, obligation to perform the
Development Program with respect to a Collaboration Antigen if the Research
Program for such Collaboration Antigen is terminated, provided that, except
with respect to a termination of a Process Development Program with respect to
a Collaboration Antigen pursuant to Section 16.2 or 16.3.1, the Parties’ rights and obligations
under Article 7 with respect to Research Antibodies, Candidate Drugs and
Licensed Products that bind to and are directed against such Collaboration
Antigen shall continue in full force and effect.  Notwithstanding the foregoing, for the avoidance of doubt, the license and other rights granted by
the Parties under Sections 4.6, 4.7, 4.8 and 4.9 shall continue in full
force and effect.

 

(ii)                                  Financial Provisions. 
AZ’s obligation to pay milestones and royalties to ABX shall continue with respect to such
Collaboration Antigen(s) but the milestone payments set forth in
Section 9.3.1 and the royalty rate payable to ABX under Section 9.3.2
on Net Sales of Licensed
Products that bind to and are directed against such Collaboration Antigen(s) shall be reduced to the applicable
amounts and rates set forth in Exhibit O in addition to any other
reductions required under Article 9. 
With respect to Net Sales of Non-Antibody Products with respect to such
Collaboration Antigen(s), immediately after a request by AZ, the Parties
shall, if they have not already done so pursuant to Section 4.4.1(a),
negotiate in good faith to determine the ongoing financial terms solely for the
license grant in Section 4.1 to AZ under the ABX Prior Antigen-Specific
Know-How Rights and ABX Prior Antigen-Specific Patent Rights applicable to such
Collaboration Antigen(s) to Exploit such Non-Antibody Products for use in the
Commercial Field.

 

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(iii)                               XenoMouse Animals and Return of
Confidential Information.  With respect to each
Collaboration Antigen for which ABX has not completed three (3) rounds of
immunizations in accordance with the applicable Research Program Work Plan
prior to the effective date of such termination, ABX (or its successor) shall transfer to AZ sterile male
XenoMouse Animals and the associated protocols, solely for the purpose of
generating Antibodies that bind to and are directed against such Collaboration
Antigen, pursuant to the Supplementary XenoMouse Agreement. 
ABX (or its successor) shall
transfer to AZ all Collaboration Technology and return to AZ all Confidential
Information of AZ and its Affiliates (including any AZ Information) (and all
tangible embodiments thereof), in each case relating to such Collaboration
Antigen(s); provided, however, that ABX (or its successor)
shall have the right to retain
one (1) copy of such Confidential Information for its legal files for the sole
purpose of determining its obligations hereunder.

 

(iv)                              Exclusivity. 
The exclusivity
restrictions with respect to AZ (but, subject to the last sentence of this
Section 16.8.2(a)(iv), not ABX (or its successor)) in Article 17 shall terminate with
respect to such Collaboration Antigen(s) and AZ shall have the right to grant
sublicenses under the license granted in Section 4.1 with respect to such
Collaboration Antigen, through multiple tiers of sublicensees, to its Affiliates
and to any other Persons.  If, at any time prior to AZ providing an Election Notice (or making the
first milestone payment to ABX pursuant to Section 9.3.1, whichever is
earlier) with respect to a Collaboration Antigen, AZ ceases to Exploit all Licensed
Products that bind to and are directed against such Collaboration Antigen, AZ
shall provide written notice to ABX (or its successor), provided if, at any time prior to such
written notice and prior to AZ
providing an Election Notice (or making the first milestone payment to ABX
pursuant to Section 9.3.1, whichever is earlier) with respect to such
Collaboration Antigen, ABX (or its successor) has a reasonable basis to
believe that AZ has ceased Exploiting all Licensed Products that bind to and
are directed against such Collaboration Antigen, then ABX (or its successor)
shall so notify AZ, specifying the basis for its belief, and the Parties shall
meet within thirty (30) days after such notice to discuss in good faith ABX’s
(or its successor’s) concerns and AZ’s plans with respect to the Exploitation
of Licensed Products that bind to and are directed against such Collaboration
Antigen.  On the first (1st) anniversary of the
earlier of the date of such written notice from AZ and the date that AZ ceases
to Exploit all Licensed Products that bind to and are directed against such
Collaboration Antigen if prior to AZ providing an Election Notice (or making
the first milestone payment to ABX pursuant to Section 9.3.1, whichever is
earlier) with respect to such Collaboration Antigen, the exclusivity
restrictions with respect to ABX (or its successor) in Article 17 shall terminate with respect
to the Exploitation of Antibody Equivalents (but not Antibodies) that bind to
and are directed against such Collaboration Antigen.  If a Research Program with respect to a Collaboration Antigen is
terminated pursuant to Section 16.2 because of a Change in Control of ABX
with a Competitor and AZ subsequently ceases to Exploit all Licensed Products
that bind to and are directed against such Collaboration Antigen, in each case
prior to AZ providing an Election Notice (or making the first milestone payment
to ABX pursuant to Section 9.3.1, whichever is earlier) with respect to
such Collaboration Antigen, then, on the second (2nd) anniversary of the
earlier of the date of such written notice from AZ and the date that AZ ceases
such Exploitation, the exclusivity restrictions with respect to ABX (or
its successor) in
Article 17 shall terminate with respect to the Exploitation of products with
respect to such Collaboration Antigen that do not contain Antibodies or
Antibody Equivalents that bind to and are directed against such Collaboration
Antigen.

 

134

 

(b)                                 Termination for Change in Control or
Breach of Development Program.  If AZ terminates
(x) any or all Development Programs with respect to the Collaboration
Antigens pursuant to Section 16.2 or 16.3.1 or (y) a Development
Program with respect to a Collaboration Antigen pursuant to Section 16.3.3(a),
then (i) all licenses and other rights granted by AZ to ABX with respect
to such Collaboration Antigen(s) shall terminate, including ABX’s right to such
Collaboration Antigen(s) as Discontinued Antigen(s) or Failed Antigen(s), provided
that, unless the applicable Process Development Program is terminated pursuant
to Section 16.2 or 16.3.1, the Parties’ rights and obligations under Article 7 with respect to
Candidate Drugs and Licensed Products that bind to and are directed against
such Collaboration Antigen(s) shall continue in full force and effect, (ii) the license and other rights
granted by ABX to AZ under Section 4.1 with respect to such Collaboration
Antigen(s) shall continue without the obligations and restrictions on AZ under
Articles 2, 3, the last two sentences of Section 4.1,
Section 4.12.1, Article 5 and Article 6, provided that AZ’s obligation to pay milestones and royalties to ABX
shall continue with respect to such Collaboration Antigen(s) but the milestone
payments set forth in Section 9.3.1 and royalty rate payable to ABX under
Section 9.3.2 on Net Sales of Licensed Products that bind to and are
directed against such Collaboration Antigen shall be reduced to the applicable
amounts and rates set forth in Exhibit O in addition to any other
reductions required under Article 9, (iii) the licenses
granted by ABX to AZ under Sections 4.2, 4.3 and 4.4 with respect to such
Collaboration Antigen(s) shall terminate to the extent covered by the license
grant in Section 4.1,
(iv) the exclusivity restrictions with respect to AZ (but not ABX (or
its successor)) in
Article 17 shall terminate with respect to such Collaboration Antigen and
AZ shall have the right to grant sublicenses under the license granted in
Section 4.1 with respect to such Collaboration Antigen, through multiple
tiers of sublicensees, to its Affiliates and to any other Persons, and (v) ABX (or its
successor) shall return all
Confidential Information of AZ (including any AZ Information ) (and all
tangible embodiments thereof) relating to such Collaboration Antigen; provided,
however, that ABX (or its successor) shall have the right to retain one (1) copy for its legal files for
the sole purpose of determining its obligations hereunder. 
For the avoidance of doubt, the license and other rights granted by the Parties under
Sections 4.6, 4.7, 4.8 and 4.9 shall continue in full force and effect.

 

(c)                                  Termination of Agreement. 
If AZ terminates this Agreement with respect to a Collaboration Antigen
pursuant to Section 16.3.2(c), 16.3.3(b) or 16.3.5(b), then (i) all
licenses and other rights granted by each Party to the other Party with respect
to such Collaboration Antigen shall terminate, except for the license and other
rights granted by the Parties under Sections 4.6, 4.7, 4.8 and 4.9, which
shall continue in full force and effect, (ii) the exclusivity restrictions with respect
to each Party in Article 17 shall terminate with respect to such
Collaboration Antigen, (iii) each Party shall destroy all materials
comprising Collaboration Technology with respect to such Collaboration Antigen, and (iv) each Party shall return
all Confidential Information of the other Party (and all tangible embodiments
thereof) relating to such Collaboration Antigen; provided, however,
that each Party shall have the right to retain one (1) copy for its legal
files for the sole purpose of determining its obligations hereunder.

 

(d)                                 Termination for Failure to Use
Commercially Reasonable Efforts or Payment Default. 
If AZ elects to compel ABX to grant a sublicense with respect to a
Discontinued Antigen, including any ABX Products with respect thereto, pursuant
to Section 16.3.4 or 16.3.5, AZ shall provide written notice to ABX,
whereupon ABX shall use Commercially Reasonable Efforts to negotiate a
sublicense with a Person to Exploit one or more

 

135

 

ABX Products, provided
that AZ shall have the right to submit a bid for such sublicense.  If AZ submits a bid for such sublicense, ABX
shall be required to negotiate in good faith with AZ to grant such sublicense
to AZ, provided that if other Persons are interested in obtaining such
sublicense ABX shall not be required to negotiate exclusively with AZ.  In the event that AZ elects to compel such a
sublicense because of ABX’s material breach of its obligation to use Commercially Reasonable Efforts in a
Major Market as required under Section 4.12.1(b), such sublicense shall
only apply with respect to such Major Market. 
Nothing in this
Section 16.8.2(d) is intended or should be construed to limit ABX’s rights
to grant sublicenses to Affiliates or Third Parties to Exploit ABX Products
that bind to and are directed against a Discontinued Antigen pursuant to
Section 4.5.1 prior to any such breach.

 

16.8.3                  Termination by ABX.

 

(a)                                  Termination for Breach of Development
Program or Failure to Use Commercially Reasonable Efforts Prior to Election
Notice.  If, as a result of a material breach by AZ
of (i) a Development Program with respect to a specific Collaboration
Antigen or (ii) its obligation to use Commercially Reasonable Efforts with
respect to a specific Collaboration Antigen in a Major Market prior to the
delivery of an Election Notice for such Collaboration Antigen to ABX, ABX
elects to convert such Collaboration Antigen into a Discontinued Antigen
pursuant to Section 16.4.3 or 16.4.4, then, upon written notice to AZ,
such Collaboration Antigen shall, subject to Section 16.5, be converted
into a Discontinued Antigen and Exhibit B shall be amended accordingly.  In the event that ABX provides an Exercise
Notice with respect to such Discontinued Antigen, ABX shall have the right to purchase
any quantities of Candidate Drugs controlled by AZ, at AZ’s fully burdened
cost, that bind to and are directed against such Discontinued Antigen.  If ABX fails to provide such Exercise
Notice, ABX shall have no rights to such Antigen under
Sections 4.5.1(a)(i), 4.5.1(b), 4.5.1(c) or 4.5.1(d)(i) or any such
Candidate Drugs (including any Genetic Material or cell lines with respect
thereto).  For the avoidance of doubt,
if ABX fails to provide such Exercise Notice, AZ shall retain all such
Antibodies (and any Antibody Cells and Genetic Materials with respect to such
Antibodies), whereupon the license grant set forth in Section 4.3.1 shall
continue in effect subject to Section 4.5.1(e).

 

(b)                                 Termination for Failure to Use
Commercially Reasonable Efforts After Election Notice or Payment Default. 
If ABX elects to compel AZ to grant a sublicense with respect to a
Collaboration Antigen, including any Licensed Products with respect thereto,
pursuant to Section 16.4.5 or 16.4.6(a), ABX shall provide written notice
to AZ, whereupon AZ shall use Commercially Reasonable Efforts to negotiate a
sublicense with a Person to Exploit one or more Licensed Products, provided
that ABX shall have the right to submit a bid for such sublicense.  If ABX submits a bid for such sublicense, AZ shall be required to
negotiate in good faith with ABX to grant such sublicense to ABX, provided that
if other Persons are interested in obtaining such sublicense AZ shall not be
required to negotiate exclusively with ABX. 
In the event that ABX elects to compel such a sublicense because of AZ’s
material breach of its
obligation to use Commercially Reasonable Efforts in a Major Market as required
under Section 4.12.1(a), such sublicense shall only apply with respect to
such Major Market.  Nothing in this
Section 16.8.3(b) is intended or should be construed to limit AZ’s rights
to grant sublicenses to Affiliates or Third Parties to Exploit Licensed
Products that bind to and are directed against a Collaboration Antigen pursuant
to Section 4.3.2 prior to any such breach.

 

136

 

(c)                                  Termination of Agreement. 
If ABX terminates this Agreement with respect to a Collaboration Antigen
pursuant to Section 16.4.3(b), 16.4.4(b) or 16.4.6(b), then (i) all
licenses and other rights granted by each Party to the other Party with respect
to such Collaboration Antigen shall terminate, except for the license and other
rights granted by the Parties under Sections 4.6, 4.7, 4.8 and 4.9, which
shall continue in full force and effect, (ii) the exclusivity restrictions with respect
to each Party in Article 17 shall terminate with respect to such
Collaboration Antigen, (iii) each Party shall destroy all materials
comprising Collaboration Technology with respect to such Collaboration Antigen, and (iv) each Party shall return
all Confidential Information of the other Party (and all tangible embodiments
thereof) relating to such Collaboration Antigen; provided, however,
that each Party shall have the right to retain one (1) copy for its legal files
for the sole purpose of determining its obligations hereunder.

 

16.8.4                  Transition
of Programs.  All
terminations under this Article 16 shall become effective within thirty
(30) days after the date that it is finally and conclusively determined, pursuant to
Section 20.1 or such other dispute resolution procedure as the Parties may
agree, if
applicable, that a Party
is in breach and the expiration of any cure periods.  After the effective date of a termination of
a Research Program, Development Program or Process Development Program or this
Agreement by AZ pursuant to Section 16.2 or 16.3 or a Development Program
or this Agreement by ABX pursuant to Section 16.4, the terminating Party
or its designee shall have the right to assume full control of such Research
Program or Development Program, as applicable, and the other Party, at the
request of the terminating Party, shall continue to perform its obligations
under this Agreement for a reasonable period of time and provide the
terminating Party with such assistance as is Reasonably Necessary to effectuate
a smooth and orderly transition of such Research Program or Development Program
or other activities under this Agreement to the terminating Party or its
designee so as to minimize any disruption of the applicable activities or
studies.

 

16.9                           Termination for Safety Reasons.  If AZ terminates this Agreement with
respect to a Collaboration Antigen in its entirety pursuant to
Section 16.6, then (a) all licenses and other rights granted by each
Party to the other Party with respect to such Collaboration Antigen shall
terminate, (b) the
exclusivity restrictions with respect to each Party in Article 17 shall
terminate with respect to such Collaboration Antigen, and (c) each Party shall return all
Confidential Information of the other Party (and all tangible embodiments
thereof) relating to such Collaboration Antigen; provided, however,
that each Party shall have the right to retain one (1) copy for its legal files
for the sole purpose of determining its obligations hereunder.

 

16.10                     Process Development Program.  The
effect of any termination of a Process Development Program as a result of a
Change in Control and, subject to Sections 7.14 and 16.3.1, the right to
terminate a Process Development Program for breach and the effects thereof
shall be addressed in the Process Science and Clinical Manufacture Agreement.

 

16.11                     Remedies. 
Unless otherwise stated herein, the rights and remedies in this
Article 16 shall be cumulative and in addition to any other rights or
remedies that may be available to the Parties.

 

16.12                     Survival. 
Expiration or termination of this Agreement shall be without prejudice
to any rights that shall have accrued to the benefit of a Party prior to such
expiration or

 

137

 

termination.  Without limiting the foregoing, the
first sentence of Section 2.4, and each of Sections 4.6, 4.7, 4.8, 4.9, 4.10, 4.14, 4.17 (but only
with respect to the surviving licenses under Sections 4.6 through 4.10), 4.19,
the first sentence of Section 5.5, 5.7.4, 5.8, 7.9. 7.10, 7.11, 7.12,
9.3.3 (but only with respect to the surviving licenses under Sections 4.6
through 4.10), 9.11, 11, 12, 13, 14.4, 15, 16.8, 16.9, 16.11, 16.12, 16.13, 18,
19, 20.1, 20.6, 20.7 and 20.9, shall
survive termination of this Agreement.

 

16.13                     Rights in Bankruptcy.  All rights and licenses granted under
or pursuant to this Agreement by ABX or AZ are, and shall otherwise be deemed
to be, for purposes of Section 365(n) of the United States Bankruptcy
Code, licenses of rights to “intellectual property” as defined under
Section 101 of the United States Bankruptcy Code.  The Parties agree that the Parties, as
licensees of such rights under this Agreement, shall retain and may fully
exercise all of their rights and elections under the United States Bankruptcy
Code.  The Parties further agree that,
in the event of the commencement of a bankruptcy proceeding by or against a
Party under the United States Bankruptcy Code, the Party hereto that is not a
party to such proceeding shall be entitled to a complete duplicate of (or
complete access to, as appropriate) any such intellectual property and all
embodiments of such intellectual property, which, if not already in the
non-subject Party’s possession, shall be promptly delivered to it (a) upon
any such commencement of a bankruptcy proceeding upon the non-subject Party’s
written request therefor, unless the Party subject to such proceeding continues
to perform all of its obligations under this Agreement or (b) if not
delivered under clause (a) above, following the rejection of this
Agreement by or on behalf of the Party subject to such proceeding upon written
request therefor by the non-subject Party.

 

17.                                 EXCLUSIVITY

 

17.1                           During the Antigen Designation Term.

 

17.1.1                  Subject to the
provisions of Sections 17.3, 17.4, 17.5, 17.6 and 17.7, during the Antigen
Designation Term, neither a Party nor its
Affiliates shall, or shall cause, assist or enter into any agreement with any Person to, directly or indirectly, research, develop,
manufacture, commercialize or otherwise Exploit Antibodies or Antibody
Equivalents that bind to and are directed against any Antigen, except that,
(a) solely as required or expressly permitted by this Agreement, both
Parties shall have the right to jointly research and develop (pursuant to the
Research Programs and Development Programs) Antibodies that bind to and are
directed against Collaboration Antigens (other than Discontinued Antigens and
Failed Antigens) and AZ shall have the right (without regard to this
clause (a)) to exercise its rights
under Articles 2 and 5; (b) AZ shall have the right, whether alone or
with a Third Party, to Exploit Antibodies and Antibody Equivalents that bind to
and are directed against Collaboration Antigens (other than Discontinued
Antigens and Failed Antigens) for which AZ has provided an Election Notice;
(c) AZ shall have the right, whether alone or with a Third Party, to
Exploit (without Exploiting the Licensed ABX IP Rights other than to the extent
expressly licensed under this Agreement) Antibody Equivalents that bind to and
are directed against (i) Excluded Antigens and (ii) Non-Selected
Antigens; (d) AZ shall have the right, whether alone or with a Third
Party, to Exploit Antibody Equivalents and, subject to Section 4.5.1(e)
with respect to Discontinued Antigens and Section 4.15 with respect to
Failed Antigens, Antibodies that bind to and are directed against Discontinued
Antigens and Failed Antigens; (e) ABX shall have the right to conduct
internal

 

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research and development of
Antibodies and Antibody Equivalents that bind to and are directed against
Potential Co-Development Antigens subject to Section 2.2.1(l), the
Advanced ABX Antigen subject to Section 2.2.1(j), and Accelerated ABX
Antigens subject to Section 2.2.1(j); (f) ABX shall have the right to
generate and characterize Antibodies that bind to and are directed against ABX
Diagnostic Antigens subject to Section 2.2.1(m); (g) ABX shall have
the limited right, whether alone or with a Third Party, to Exploit Antibodies
and Antibody Equivalents that bind to and are directed against Discontinued
Antigens and Failed Antigens subject to Sections 2.6.5, 4.5.1, 4.15, 5.9
and 5.11; (h) ABX shall have the right, whether alone or with a Third
Party, to Exploit (without Exploiting the Licensed AZ IP Rights or any
Collaboration Technology other than to the extent expressly licensed under this
Agreement) Antibody Equivalents that bind to and are directed against
(i) Excluded Antigens to the extent such Antigens were Excluded Antigens
at the time they were first [Confidential treatment requested] as Antigens or the applicable [Confidential
treatment requested], whichever is earlier,
(ii) Non-Selected Antigens, and (iii) Partially Committed Antigens to
the extent such Antigens were Partially Committed Antigens at the time they
were first [Confidential treatment requested] as Antigens or the applicable [Confidential treatment requested], whichever is earlier, and to the extent they
were [Confidential treatment requested]; (i) solely as permitted by Article 8, both Parties shall
have the right to jointly Exploit Antibodies and Antibody Equivalents that bind
to and are directed against Co-Development Antigens; and (j) ABX shall
have the right to perform process development, contract manufacturing and
related services for AZ and for Third Parties, provided that ABX shall have no
right to perform such services for Third Parties with respect to Collaboration
Antigens; provided, however, that ABX shall have the right to
conduct process development, contract manufacturing and related services with
respect to an Antigen for a Third Party if ABX already had an obligation to
perform such process development, contract manufacturing and related services
at the time such Antigen was designated a Collaboration Antigen.

 

17.1.2                  Subject to the
provisions of [Confidential treatment requested], during the Antigen
Designation Term, neither ABX nor its
Affiliates shall, or shall cause, assist or enter into any agreement with any Person to, [Confidential
treatment requested] with a
Person so as to result in an [Confidential treatment requested] with respect to such Antigens in a
way that would [Confidential treatment requested] under this Agreement. 
Subject to clauses (h), (i) and (j) of Section 17.1.1,
(a) with respect to any [Confidential treatment requested] during the Antigen Designation Term
to research, develop, manufacture,
commercialize or otherwise Exploit Antibody Equivalents that bind to and are
directed against any antigen,
ABX shall [Confidential treatment requested] that bind to and are directed against Antigens (other than
Non-Selected Antigens, Discontinued Antigens subject to Section 4.5.1 or
Failed Antigens subject to Section 4.15), and (b) with respect to
each such antigen that may be [Confidential treatment requested], ABX shall require [Confidential
treatment requested], as of the
date that [Confidential treatment requested], to [Confidential treatment requested], pursuant to [Confidential treatment requested], products with respect to such
antigen for use in [Confidential treatment requested].

 

17.1.3                  For the avoidance of doubt, subject
to the provisions of clauses (h),
(i) and (j) of Section 17.1.1, and subject to Section 17.3,
during the Antigen Designation Term, neither ABX nor its Affiliates shall grant any right or license to any Third
Party, whether under an Existing Collaboration or otherwise, to Exploit
Antibody Equivalents that bind to and are

 

139

 

directed against any
Antigen (other than an Antigen that is an Excluded Antigen or Partially
Committed Antigen [Confidential treatment requested,] whichever is earlier) in each case until such Antigen becomes
a Non-Selected Antigen or, subject to the license grants in Section 4.5, a
Discontinued Antigen or, subject to Section 4.15, a Failed Antigen.  Neither ABX nor its Affiliates shall
disclose, propose or identify Antigens to Third Parties until they become
Non-Selected Antigens or, subject to Section 4.5.1, Discontinued Antigens
or, subject to Section 4.15, Failed Antigens.  Subject to the provisions of Sections 17.3.1, 17.3.2 and
17.3.3, neither ABX nor its Affiliates shall grant any right or license to any
Third Party, [Confidential treatment requested] or otherwise, with respect to any Antigen [Confidential
treatment requested], whichever is earlier (other than an Antigen that is an
Excluded Antigen or Partially Committed Antigen [Confidential treatment
requested], whichever is earlier)] in each case until such Antigen
becomes a Non-Selected Antigen or, subject to the license grants in
Section 4.5, a Discontinued Antigen or, subject to Section 4.15, a
Failed Antigen.  During the Antigen
Designation Term, ABX shall conduct its repository searches, and make
determinations regarding the availability of antigens that are proposed by AZ
and Third Parties on a [Confidential treatment requested] basis.

 

17.1.4                  Subject to
Sections 17.4 and 17.5, during the Antigen Designation Term, neither ABX
nor any of its Affiliates shall have the right to research, develop,
commercialize or otherwise Exploit any products with respect to any Antigen,
that do not contain Antibodies or Antibody Equivalents that bind to and are
directed against such Antigen, until such time as such Antigen becomes a
Non-Selected Antigen.

 

17.2                           Following the Antigen Designation Term.

 

17.2.1                  Subject to the
provisions of Sections 17.3, 17.4, 17.5, 17.6 and 17.7, following the
Antigen Designation Term, neither a Party
nor its Affiliates shall, or shall cause, assist or enter into any agreement with any Person to, directly or indirectly, research, develop, manufacture,
commercialize or otherwise Exploit Antibodies or Antibody Equivalents that bind
to and are directed against (x) any Collaboration Antigen or
(y) subject to Section 2.2.4, any Prioritized Antigen that has been
designated as such during the Antigen Designation Term until designated as a
Non-Selected Antigen, except that, (a) solely as required or expressly
permitted by this Agreement, both Parties shall have the right to jointly
research and develop (pursuant to the Research Programs and Development
Programs) Antibodies that bind to and are directed against Collaboration
Antigens (other than Discontinued Antigens and Failed Antigens) and AZ shall
have the right (without regard to this clause (a)) to exercise its rights under Articles 2 and
5; (b) AZ shall have the right, whether alone or with a Third Party, to
Exploit Antibodies and Antibody Equivalents that bind to and are directed
against Collaboration Antigens (other than Discontinued Antigens and Failed
Antigens) for which AZ has provided an Election Notice; (c) AZ shall have
the right, whether alone or with a Third Party, to Exploit Antibody Equivalents
and, subject to Section 4.5.1(e) with respect to Discontinued Antigens and
Section 4.16 with respect to Failed Antigens, Antibodies that bind to and
are directed against Discontinued Antigens and Failed Antigens; (d) ABX
shall have the right, whether alone or with a Third Party, to Exploit
Antibodies and Antibody Equivalents that bind to and are directed against
Discontinued Antigens and Failed Antigens subject to Sections 2.6.5,
4.5.1, 4.15, 5.9 and 5.11, and (e) ABX shall have the right to perform
process development, contract manufacturing and related services for AZ and for
Third Parties, provided that ABX shall have no right to

 

140

 

perform such services for Third
Parties with respect to Collaboration Antigens, except as provided in
Section 17.1.1.

 

17.2.2                  Subject to Sections 17.4 and 17.5, following
the Antigen Designation Term, neither ABX nor any of its Affiliates
shall have the right to research, develop, commercialize or otherwise Exploit
any products with respect to (a) any Collaboration Antigen (including a
Discontinued Antigen or Failed Antigen) or (b) subject
to Section 2.2.4, any Prioritized Antigen that has been designated as such
during the Antigen Designation Term until designated as a Non-Selected Antigen,
in each case that do not contain Antibodies or Antibody Equivalents that bind to and are directed against
such Antigen.  Notwithstanding
anything to the contrary in this Agreement, including the license grants
herein, even if such Collaboration Antigen becomes a Discontinued Antigen or Failed Antigen, neither ABX nor its
Affiliates shall have the right to Exploit Collaboration Technology, Oncology
Technology, ABX Antigen-Specific Patent Rights, ABX Antigen-Specific Know-How
Rights or Licensed AZ IP Rights in connection with the Exploitation of such
products that do not contain Antibodies or Antibody Equivalents.

 

17.3                           No Breach.

 

17.3.1                  ABX and AZ acknowledge and agree that
in the course of generating antibodies that bind to and are directed against an
antigen that is not an Antigen (during the Antigen Designation Term) or a
Collaboration Antigen (thereafter), ABX, or a Third Party under license from
ABX, may also generate antibodies that bind to an Antigen (during the Antigen
Designation Term) or a Collaboration Antigen (thereafter, other than a
Discontinued Antigen or Failed Antigen), and such generation shall not
constitute a breach of the exclusivity provisions of this Agreement except to
the extent that such antibodies were generated from the immunization with, or
were initially selected by screening against, a Collaboration Antigen; provided,
however, that ABX shall not agree to, and shall not grant to such Third
Party any license to make, have made, use, offer for sale, sell or import or
otherwise Exploit such antibodies to such Antigen (during the Antigen
Designation Term) or a Collaboration Antigen (thereafter, other than a Discontinued
Antigen or Failed Antigen to the extent expressly permitted in this Agreement).

 

17.3.2                  ABX and AZ acknowledge and agree that
in the course of generating Antibodies that bind to and are directed against a
Collaboration Antigen, AZ or ABX may also generate Antibodies that bind to
another antigen and such generation shall not constitute a breach of this
Agreement and such Antibody shall fall within the scope of the license grants
set forth in this Agreement, except to the extent that such Antibodies are
generated from the immunization with, or were initially selected by screening
against, such other antigen.

 

17.3.3                  Nothing in this Agreement shall prohibit ABX from
granting a license under ABX intellectual property rights to a Third Party to
research, develop, manufacture or commercialize Antibody Equivalents that bind
to and are directed against an antigen that is a post transcriptional splice
variant of an Antigen (during the Antigen Designation Term) or a Collaboration
Antigen (thereafter) if
such Third Party can demonstrate that such Antibody Equivalents bind to only
the unique portion of such splice variant and not to such Antigen or
Collaboration Antigen (as applicable), provided that such license shall only
apply to Antibody 

 

141

 

Equivalents that bind
to such splice variant and not to such Antigen or Collaboration Antigen (as applicable).

 

17.3.4                  Except as provided in Section 2.2.1(a),
nothing in this Agreement shall prohibit ABX from granting a license under ABX
intellectual property rights to a Third Party under an Existing Collaboration
to research, develop, manufacture or commercialize Antibody Equivalents that
bind to and are directed against a Committed Antigen, or to perform its
obligations or exercise its rights with respect to any Committed Antigen; provided,
however, that in no event shall ABX [Confidential treatment
requested] so as to provide any [Confidential
treatment requested] with any [Confidential
treatment requested], during the Antigen
Designation Term that would [Confidential treatment requested].

 

17.3.5                  Except as provided in Section 2.2.1(i),
nothing in this Agreement shall prohibit ABX from granting a license under ABX
intellectual property rights to a Third Party under an Existing Collaboration
to research, develop, manufacture or commercialize Antibody Equivalents that
bind to and are directed against a Partially Committed Antigen, or to perform
its obligations or exercise its rights with respect to any Partially Committed
Antigen, provided that
(a) the existence of such Existing Collaboration, (b) any [Confidential
treatment requested] such
Existing Collaboration on the [Confidential treatment requested] such Partially Committed Antigen as a
Collaboration Antigen, (c) any [Confidential treatment requested] such Existing Collaboration to which
the licenses and rights, [Confidential treatment requested], would be subject, (d) the [Confidential
treatment requested] provided
under such Existing Collaboration for [Confidential treatment requested] granted thereunder if such Partially
Committed Antigen is [Confidential treatment requested] prior to it becoming a Committed
Antigen in accordance with this Agreement; and (e) the general nature of any
licenses and rights granted under such Existing Collaboration to which the
licenses and rights, if [Confidential treatment requested] were [Confidential treatment
requested,] unless and until such Partially
Committed Antigen is designated as a Collaboration Antigen; provided, however,
that in no event shall ABX [Confidential treatment requested] so as to provide any [Confidential
treatment requested], or otherwise [Confidential
treatment requested], during the Antigen
Designation Term that would [Confidential treatment requested]; and provided  further that if a
Partially Committed Antigen is designated as a Collaboration Antigen, ABX shall
have no rights to grant such a license, or perform such obligations, and ABX
shall terminate any such existing licenses or obligations pursuant to
Section 2.2.2(c).

 

17.3.6                  Nothing in this Agreement shall prohibit ABX from
granting a license under ABX intellectual property rights to a Third Party to
research, develop, manufacture or commercialize Antibody Equivalents that bind
to and are directed against an antigen which, at the time of granting such
license, ABX reasonably believed was not an Antigen even if such antigen
subsequently is determined to be an Antigen, or to perform its obligations or
exercise its rights with respect to such antigen, provided ABX complies with
the last sentence of [Confidential treatment requested].

 

17.3.7                  Notwithstanding anything to the
contrary in this Agreement, AZ and its Affiliates shall have the right at any
time (a) to obtain from Third Parties, whether by acquisition, license or
otherwise, rights to specific Antibody Equivalent candidate drugs generated by
or on behalf of such Third Parties that bind to and are directed against
Antigens,

 

142

 

including Non-Selected
Antigens, Proposed Antigens and Collaboration Antigens, and (b) to
Exploit, whether themselves or with or through one or more Third Parties, such
Antibody Equivalents outside of this Agreement.  In the event AZ or its Affiliates obtain from a Third
Party rights to an Antibody Equivalent that binds to and is directed against a
Collaboration Antigen, AZ’s diligence obligations in Section 4.12.1(a)
with respect to Licensed Products that bind to and are directed against such
Collaboration Antigen shall not, notwithstanding the definition of Commercially
Reasonable Efforts, take into consideration such Third Party Antibody
Equivalent.

 

17.3.8                  Nothing in this Article 17 or
elsewhere in this Agreement is intended, or shall be construed, to limit or
prohibit AZ and its Affiliates from Exploiting (without infringing the Licensed
ABX IP Rights other than to the extent expressly licensed under
Article 4), whether themselves or with or though any Person, products,
including Non-Antibody Products, that do not contain Antibodies or Antibody
Equivalents, irrespective of whether such products are directed at an Antigen.

 

17.4                           Certain Provisions Applicable
Upon a Change in Control Involving ABX.  Notwithstanding anything to the contrary in
this Agreement, after a Change in Control involving ABX, the exclusivity
provisions in this Article 17 shall continue in full force except as set
forth below:

 

17.4.1                  ABX (or its
successor) and its Affiliates shall have the right directly or indirectly to
Exploit, and to enter into any agreement with any Third Party directly or
indirectly to Exploit, Competitive Products, in each case without the use of
Licensed ABX IP Rights or Collaboration Technology, other than Collaboration
Technology with respect to, subject to Section 4.15, Failed Antigens and
Discontinued Antigens for which ABX has provided an Exercise Notice.

 

17.4.2                  ABX (or its
successor) and its Affiliates shall have the right directly or indirectly to
Exploit, and to enter into any agreement with any Third Party directly or
indirectly to Exploit, (a) products (other than products containing
Antibodies or Antibody Equivalents) with respect to any Antigen (other than a
Collaboration Antigen that has not been designated, subject to
Section 4.15, a Failed Antigen or a Discontinued Antigen for which ABX has
provided an Exercise Notice), and (b) products (other than products
containing Antibodies or Antibody Equivalents) with respect to any
Collaboration Antigen (other than, subject to Section 4.15, a Failed
Antigen or a Discontinued Antigen for which ABX has provided an Exercise
Notice) for which there was a Pre-Existing Non-Antibody Program or for which a
program to research, develop or commercialize products (other than Antibodies
or Antibody Equivalents) with respect to such Collaboration Antigen was being
actively and materially conducted by such other party(ies) to such Change in
Control prior to the designation of such Antigen as a Collaboration Antigen,
provided that ABX (or its successor) discloses to AZ in writing the existence
of such products under clause (a) or such Pre-Existing Non-Antibody
Program or other such program under clause (b) pursuant to
Section 2.2.1(d).  Notwithstanding
anything to the contrary in this Agreement, other than with respect to a
Pre-Existing Non-Antibody Program or other program under clause (b)
disclosed pursuant to Section 2.2.1(d), neither ABX (or its successor) nor
its Affiliates shall have the right directly or indirectly to Exploit, or to
enter into any agreement with any Third Party directly or indirectly to
Exploit,

 

143

 

any products (other than products containing
Antibodies or Antibody Equivalents as permitted under this Article 17)
with respect to any Failed Antigen or Discontinued Antigen for which ABX has
provided an Exercise Notice until after the [Confidential treatment requested]
of the date that such Antigen is designated a Failed Antigen subject to
Section 4.15 or the date that ABX provides an Exercise Notice for such
Discontinued Antigen.

 

17.4.3                  Neither ABX (or
its successor) nor its Affiliates shall have the obligation to disclose to AZ
any Antigens, or any Patent Rights or other intellectual property rights, that
are Controlled by the other party(ies) to such Change in Control (or its
Affiliates) as of the Trigger Date.

 

17.4.4                  All Antigens
(subject to Sections 2.2.1(d) and 16.2 and AZ’s right to continue to
designate Antigens as Proposed Antigens, Prioritized Antigens and Collaboration
Antigens pursuant to this Agreement), Antibody Equivalents, other products and
related inventions and Information (together with all Patent Rights and other
intellectual property rights therein) that are Controlled by the other
party(ies) to such Change in Control (or its Affiliates) as of the Trigger Date
shall be excluded from this Agreement, including the definition of Licensed ABX
IP Rights.

 

17.4.5                  Neither ABX (or
its successor) nor its Affiliates shall use any Licensed ABX IP Rights,
including any XenoMouse Technology or Collaboration Technology, or Licensed AZ IP
Rights to Exploit any Competitive Products or Pre-Existing Non-Antibody
Programs (or any other products with respect to any Antigen Exploited in
accordance with Section 17.4.2).

 

17.5                           Certain Provisions Applicable
Upon an Acquisition by or with ABX.  Notwithstanding anything to the contrary in this Agreement, after
any Acquisition by or with ABX, the exclusivity provisions in this
Article 17 shall continue in full force except as set forth below:

 

17.5.1                  ABX and its
Affiliates shall have the right directly or indirectly to Exploit, but only in
accordance with the provisions of any bona fide agreement with a Third Party
entered into in good faith prior to the date of such Acquisition, Competitive
Products, in each case without the use of Licensed ABX IP Rights or
Collaboration Technology, other than Collaboration Technology with respect to,
subject to Section 4.15, Failed Antigens and Discontinued Antigens for
which ABX has provided an Exercise Notice.

 

17.5.2                  ABX and its
Affiliates shall have the right directly or indirectly to Exploit, and to enter
into any agreement with any Third Party directly or indirectly to Exploit,
(a) products (other than products containing Antibodies or Antibody
Equivalents) with respect to any Antigen (other than a Collaboration Antigen
that has not been designated, subject to Section 4.15, a Failed Antigen or
a Discontinued Antigen for which ABX has provided an Exercise Notice), and
(b) products (other than products containing Antibodies or Antibody
Equivalents) with respect to any Collaboration Antigen (other than, subject to
Section 4.15, a Failed Antigen or a Discontinued Antigen for which ABX has
provided an Exercise Notice) for which there was a Pre-Existing Non-Antibody
Program or for which a program to research, develop or commercialize products
(other than Antibodies or Antibody Equivalents) with respect

 

144

 

to such Collaboration Antigen was being actively and
materially conducted by the other party to such Acquisition prior to the
designation of such Antigen as a Collaboration Antigen, provided that ABX
discloses to AZ in writing the existence of such products under clause (a)
or such Pre-Existing Non-Antibody Program or other such program under
clause (b) pursuant to Section 2.2.1(d).  Notwithstanding anything to the contrary in this Agreement, other
than with respect to a Pre-Existing Non-Antibody Program or other program under
clause (b) pursuant to Section 2.2.1(d), neither ABX nor its
Affiliates shall have the right directly or indirectly to Exploit, or to enter
into any agreement with any Third Party directly or indirectly to Exploit,
any products (other than products containing Antibodies or Antibody
Equivalents as permitted under this Article 17) with respect to any Failed
Antigen or Discontinued Antigen for which ABX has provided an Exercise Notice
until after the [Confidential treatment requested] of the date that such
Antigen is designated a Failed Antigen subject to Section 4.15 or the date
that ABX provides an Exercise Notice for such Discontinued Antigen.

 

17.5.3                  Neither ABX nor
its Affiliates shall have the obligation to disclose to AZ any Antigens, or any
Patent Rights or other intellectual property rights, relating to Competitive
Products that as of the effective date of such Acquisition (a) are
Controlled by the other party(ies) to such Acquisition (or its Affiliates), and
(b) are the subject of any bona fide agreement that was entered into in
good faith with a third party prior to the applicable Trigger Date to Exploit,
directly or indirectly, such Competitive Products.

 

17.5.4                  All Antigens
(subject to Sections 2.2.1(d) and 16.2 and AZ’s right to continue to
designate Antigens as Proposed Antigens, Prioritized Antigens and Collaboration
Antigens pursuant to this Agreement), Antibody Equivalents, other products and
related inventions and Information (together with all Patent Rights and other
intellectual property rights therein) shall be excluded from this Agreement,
including the definition of Licensed ABX IP Rights, if as of the effective date
of such Acquisition (i) they are Controlled by the other party(ies) to
such Acquisition, and (ii) either (A) they are the subject of any
agreement that was entered into in good faith with a Third Party prior to the
applicable Trigger Date to Exploit, directly or indirectly, Competitive
Products, or (B) they relate to a Pre-Existing Non-Antibody Program.

 

17.5.5                  Neither ABX nor
its Affiliates shall use any Licensed ABX IP Rights, including any XenoMouse
Technology or Collaboration Technology, or Licensed AZ IP Rights to Exploit any
Competitive Products or any Pre-Existing Non-Antibody Programs (or any other
products with respect to any Antigen Exploited in accordance with
Section 17.5.2).

 

17.6                           Certain Provisions Applicable Upon
a Change in Control Involving AZ.  Notwithstanding anything to the contrary in this Agreement, after
a Change in Control involving AZ the exclusivity provisions in this
Article 17 shall continue in full force except as set forth below:

 

17.6.1                  Neither AZ (or
its successor) nor its Affiliates shall have the obligation to disclose to ABX
any Antigens, or any Patent Rights or other intellectual property rights, that
are Controlled by the other party(ies) to such Change in Control (or its
Affiliates) as of the Trigger Date.

 

145

 

17.6.2                  All Antigens,
Antibody Equivalents, other products and related inventions and Information
(together with all Patent Rights and other intellectual property rights
therein) that are Controlled by the other party(ies) to such Change in Control
(or its Affiliates) as of the Trigger Date shall be excluded from this
Agreement, including the definition of Licensed AZ IP Rights.

 

17.6.3                  Without limiting
AZ’s rights under Section 17.3.7, AZ (or its successor) and its Affiliates
shall have the right directly or indirectly to Exploit Competitive Products
and, as required under the provisions of any bona fide agreement entered into
in good faith by the other party(ies) to the Change in Control prior to the
Trigger Date, other Antibody Equivalents that bind to and are directed against
Antigens.

 

17.6.4                  Except as
otherwise permitted by this Agreement with respect to AZ Products with respect
to Collaboration Antigens (including Discontinued Antigens and Failed
Antigens), neither AZ (or its successor) nor its Affiliates shall use any
Licensed ABX IP Rights, including any XenoMouse Technology or, prior to an
Election Notice with respect to the applicable Collaboration Antigen,
Collaboration Technology to Exploit any Competitive Products (or any other
Antibody Equivalents that bind to and are directed against any Antigen
Exploited in accordance with Section 17.6.3) that are not AZ Products.

 

17.7                           Certain Provisions Applicable
Upon an Acquisition by or with AZ.  Notwithstanding anything to the contrary in this Agreement, after
any Acquisition by or with AZ, the exclusivity provisions in this
Article 17 shall continue in full force except as set forth below:

 

17.7.1                  Neither AZ nor
its Affiliates shall have the obligation to disclose to ABX any Antigens, or
any Patent Rights or other intellectual property rights, relating to
Competitive Products that as of the effective date of such Acquisition
(i) are Controlled by the other party(ies) to such Acquisition (or its
Affiliates), and (ii) are the subject of any bona fide agreement that was
entered into in good faith with a Third Party prior to the applicable Trigger
Date to Exploit, directly or indirectly, such Competitive Products.

 

17.7.2                  All Antigens,
Antibody Equivalents, other products and related inventions and Information
(together with all Patent Rights and other intellectual property rights
therein) shall be excluded from this Agreement, including the definition of
Licensed AZ IP Rights, if as of the effective date of such Acquisition
(i) they are Controlled by the other party(ies) to such Acquisition, and
(ii) either (A) they are the subject of any agreement that was
entered into in good faith with a third party prior to the applicable Trigger
Date to Exploit, directly or indirectly, Competitive Products, or (B) they
relate to a Pre-Existing Non-Antibody Program.

 

17.7.3                  Without limiting
AZ’s rights under Section 17.3.7, AZ and its Affiliates shall have the
right directly or indirectly to Exploit Competitive Products and, as required
under the provisions of any bona fide agreement with a Third Party entered into
in good faith prior to the applicable Trigger Date, other Antibody Equivalents
that bind to and are directed against Antigens.

 

146

 

17.7.4                  Except as
otherwise permitted by this Agreement with respect to AZ Products with respect
to Collaboration Antigens (including Discontinued Antigens and Failed
Antigens), neither AZ (or its successor) nor its Affiliates shall use any
Licensed ABX IP Rights, including any XenoMouse Technology or, prior to an
Election Notice with respect to the applicable Collaboration Antigen,
Collaboration Technology to Exploit any Competitive Products (or any other
Antibody Equivalents that bind to and are directed against any Antigen
Exploited in accordance with Section 17.7.3) that are not AZ Products.

 

18.                                 ADVERSE EVENT REPORTING.

 

18.1                           Each Party shall provide the other Party with
Information reasonably necessary to comply with all Applicable Law with respect
to adverse experience reporting for Candidate Drugs and Products.  In furtherance thereof, the Parties shall
(a) develop appropriate adverse experience reporting procedures; (b) provide
to each other any material information on the Candidate Drugs or Products from
preclinical or clinical laboratory, animal toxicology and pharmacology studies,
as well as serious or unexpected adverse experience reports from clinical
trials and commercial experiences with the Candidate Drugs or Products; and
(c) report and provide such information to each other in such a manner and
time so as to enable each Party to comply with all Applicable Laws regarding
adverse experience reporting.  ABX shall
provide AZ with such Information when and in such form as AZ may reasonably
require so as to comply with the Applicable Law in countries for which
regulatory approval is or will be sought or in which the Candidate Drug or
Licensed Product is being developed, marketed or sold by or on behalf of AZ or
its Affiliates or sublicensees.

 

18.2                           Each Party shall maintain a record of any and
all complaints it receives with respect to the Candidate Drugs or Products in
such form and manner as AZ may reasonably require.  Each Party shall notify the other in reasonable detail of any
complaint received by it within thirty (30) days after the event, and in any
event in sufficient time to allow the other to comply with all Applicable Laws
regarding adverse experience reporting.

 

18.3                           The Parties agree to enter into such agreements
with each other regarding the foregoing obligations as reasonably necessary to
effectuate the foregoing.

 

19.                                 PRODUCT
RECALL.

 

19.1                           Notification and Recall.

 

19.1.1                  In the event that any government agency or authority issues or requests
a recall or takes similar action in connection with the Candidate Drugs that
bind to and are directed against a Collaboration Antigen (other than a
Discontinued Antigen for which ABX has provided an Election Notice) or Licensed
Products, or in the event a Party reasonably believes that an event, incident,
or circumstance has occurred that may result in the need for a recall or market
withdrawal, such Party shall promptly advise the other Party thereof by
telephone or facsimile.  Following
notification of a recall, AZ shall decide and have control of whether to
conduct a recall or market withdrawal (except in the case of a
government-mandated recall) in any country and the manner in which any such
recall or market withdrawal shall be conducted.

 

147

 

19.1.2                  In the event that any government agency or authority issues or requests
a recall or takes similar action in connection with the Candidate Drugs that
bind to and are directed against a Discontinued Antigen for which ABX has
provided an Election Notice) or ABX Products, or in the event a Party
reasonably believes that an event, incident, or circumstance has occurred that
may result in the need for a recall or market withdrawal, such Party shall
promptly advise the other Party thereof by telephone or facsimile.  Following notification of a recall, ABX
shall decide and have control of whether to conduct a recall or market
withdrawal (except in the case of a government-mandated recall) in any country
and the manner in which any such recall or market withdrawal shall be
conducted.

 

19.2                           Recall Expenses.

 

19.2.1                  Except as may be otherwise set forth in a Related Agreement, AZ shall
bear the expenses of any recall of any Candidate Drug that bind to and are
directed against a Collaboration Antigen (other than a Discontinued Antigen for
which ABX has provided an Election Notice) or Licensed Product; provided,
however, [Confidential treatment requested].  Such
expenses of recall shall include expenses for notification, destruction and
return of such recalled Candidate Drug or Licensed Product and any refund to
customers of amounts paid for such recalled Licensed Product.

 

19.2.2                  [Confidential treatment requested]  Such
expenses of recall shall include expenses for notification, destruction and
return of such recalled Candidate Drug or ABX Product and any refund to
customers of amounts paid for such recalled ABX Product.

 

20.                                 MISCELLANEOUS

 

20.1                           Governing Law, Jurisdiction, Venue
and Service.

 

20.1.1                  Governing Law.  This Agreement shall be governed by and
construed in accordance with the laws of the State of New York, excluding any
conflicts or choice of law rule or principle that might otherwise refer
construction or interpretation of this Agreement to the substantive law of another
jurisdiction.  The Parties agree to
exclude the application to this Agreement of the United Nations Convention on
Contracts for the International Sale of Goods.

 

20.1.2                  Jurisdiction.  The
Parties hereby irrevocably and unconditionally consent to the exclusive
jurisdiction of the courts of the State of New York and the United States
District Court for the Southern District of New York for any action, suit or
proceeding (other than appeals therefrom) arising out of or relating to this
Agreement, and agree not to commence any action, suit or proceeding (other than
appeals therefrom) related thereto except in such courts.

 

20.1.3                  Venue.  The Parties further hereby
irrevocably and unconditionally waive any objection to the laying of venue of
any action, suit or proceeding (other than appeals therefrom) arising out of or
relating to this Agreement in the courts of the State of New York or the United
States District Court for the Southern District of New York, and hereby further
irrevocably and unconditionally waive and agree not to plead or claim in any
such court that any

 

148

 

such action, suit or proceeding
brought in any such court has been brought in an inconvenient forum.

 

20.1.4                  Service.  Each Party further agrees that
service of any process, summons, notice or document by registered mail to its
address set forth in Section 20.6, or any other lawful means, shall be
effective service of process for any action, suit or proceeding brought against
it under this Agreement in any such court.

 

20.2                           Waiver.  No waiver by a Party hereto
of any breach or default of any of the covenants or agreements herein set forth
shall be deemed a waiver as to any subsequent or similar breach or default.

 

20.3                           Assignment. 
Neither this Agreement nor any right or obligation hereunder may be
assigned or delegated, in whole or part, whether by operation of law or
otherwise, by either Party without the prior express written consent of the
other Party; provided, however, that each Party may, without the
written consent of the other Party, assign this Agreement and its rights and
delegate its obligations hereunder to any of its Affiliates, provided
that such Party remains jointly and severally liable with the relevant
Affiliate, or to any successor in
interest in the event of its merger, consolidation, change in control or
similar transaction,  provided
that, in either case, such assignee assumes in writing all of the assigning
Party’s rights and obligations under this Agreement.  Further, AZ shall have the
right, without the consent of ABX, to assign this Agreement and its rights and
delegate its obligations hereunder in connection with the transfer or sale of
all or substantially all of its oncology business.  Any purported assignment in violation of this Section 20.3
shall be void.  The terms and conditions
of this Agreement shall be binding upon and inure to the benefit of the
permitted successors and assigns of the Parties.

 

20.4                           Independent Contractors.  The relationship of the
Parties hereto is that of independent contractors.  The Parties hereto are not deemed to be agents, partners or joint
venturers of the others for any purpose as a result of this Agreement or the
transactions contemplated thereby.

 

20.5                           Further Actions. 
Each Party agrees to execute, acknowledge and deliver such further
documents and instruments and to perform all such other acts as may be
necessary or appropriate in order to carry out the purposes and intent of, or
to confer on each Party its rights and benefits under, this Agreement.

 

20.6                           Notices.  All requests and notices
required or permitted to be given to the Parties hereto shall be given in
writing, shall expressly reference the section(s) of this Agreement to which
they pertain, and shall be delivered to the other Party, and shall be
deemed given only if delivered by hand or sent by facsimile transmission (with
transmission confirmed) or by internationally recognized overnight delivery
service that maintains records of delivery, at the appropriate address as set forth below or to such other
addresses as may be designated in writing by the Parties from time to time
during the term of this Agreement. 
Such notice shall be deemed to have been given as of the date delivered
by hand or transmitted by facsimile (with transmission confirmed) or on the
second delivery day after deposit with an internationally recognized overnight
delivery service.  Any notice delivered
by facsimile shall be confirmed by a hard copy delivered as soon as practicable
thereafter.  This Section is not
intended to govern

 

149

 

the day-to-day business communications necessary
between the Parties in performing their obligations under the terms of this
Agreement.

 

If to
ABX:

 

Abgenix, Inc.

6701 Kaiser Drive

Fremont, California 94555

United States of America

Attn: Chief Executive Officer

Facsimile: (510) 608-6547

Telephone: (510) 608-6500

 

with a copy to:

 

Abgenix, Inc.

6701 Kaiser Drive

Fremont, California 94555

United States of America

Attn: General Counsel

Facsimile: (510) 790-5102

Telephone: (510) 608-6500

 

If to AZ:

 

AstraZeneca UK Ltd.

15 Stanhope Gate

London, England W1K 1LN

United Kingdom

Attn: Company Secretary

Facsimile: +44 207 3045188

Telephone: +44 207 3045103

 

with a copy to:

 

AstraZeneca UK Ltd.

Alderley House, Alderley Park

Macclesfield, Cheshire SK 10 4
TF

United Kingdom

Attn: Assistant General
Counsel

Facsimile: +44 1625 585618

Telephone: +44 1625 512591

 

20.7                           No Implied Licenses.  Only licenses and rights
granted expressly herein shall be of legal force and effect.  No license or other right shall be created
hereunder by implication, estoppel or otherwise.

 

150

 

20.8                           Force Majeure.

 

20.8.1                  In this
Agreement, “Force Majeure” shall mean an event which is beyond a
non-performing Party’s reasonable control, including acts of God, acts of the
other Party, strikes, lock-outs or other industrial/labor disputes (whether
involving the workforce of the Party so prevented or of any other Person), war,
riot, civil commotion, terrorist act, malicious damage, epidemics, quarantines,
fire, flood, storm, natural disaster or compliance with any law or governmental
order, rule, regulation or direction (including changes in the requirements of
the regulatory authorities), whether or not it is later held to be invalid.

 

20.8.2                  The Force
Majeure Party, shall within [Confidential treatment requested] of the
occurrence of a Force Majeure event, give notice in writing to the other Party
specifying the nature and extent of the event of Force Majeure, its anticipated
duration and any action being taken to avoid or minimize its effect.  Subject to providing such notice and to
Section 20.8.1, the Force Majeure Party shall not be liable for delay in
performance or for non-performance of its obligations under this Agreement, in
whole or in part, nor shall the other Party have the right to terminate this
Agreement, except as otherwise provided in this Agreement, where
non-performance or delay in performance has resulted from an event of Force
Majeure.  The suspension of performance
allowed hereunder shall be of no greater scope and no longer duration than is
reasonably required.

 

20.8.3                  The Force
Majeure Party shall use Commercially Reasonable Efforts, without being
obligated to incur any expenditure or cost, to bring the Force Majeure event to
a close or to find a solution by which the Agreement may be performed despite
the continuation of the event of Force Majeure.

 

20.9                           No Consequential Damages.  IN NO EVENT SHALL A PARTY BE
LIABLE FOR SPECIAL, INCIDENTAL OR CONSEQUENTIAL DAMAGES ARISING OUT OF THIS
AGREEMENT OR THE EXERCISE OF ITS RIGHTS HEREUNDER, INCLUDING WITHOUT LIMITATION
LOST PROFITS ARISING FROM OR RELATING TO ANY BREACH OF THIS AGREEMENT,
REGARDLESS OF ANY NOTICE OF SUCH DAMAGES. 
NOTHING IN THIS SECTION 20.9 IS INTENDED TO LIMIT OR RESTRICT THE
INDEMNIFICATION RIGHTS OR OBLIGATIONS OF EITHER PARTY UNDER ARTICLE 15
ABOVE.

 

20.10                     Complete Agreement.  This Agreement (together
with the Financing Documents) constitutes the entire agreement between the
Parties regarding the subject matter hereof, and all prior representations,
understandings and agreements regarding the subject matter hereof (including
the Confidentiality Agreement, the Confidential Letter of Intent dated
April 7, 2003, as amended, between the Parties and the Memorandum of
Intent dated September 22, 2003, between the Parties), either written or
oral, expressed or implied, are superseded and shall be of no effect.  This Agreement may be amended, or any term
hereof modified, only by a written instrument duly executed by both parties.

 

20.11                     Counterparts.  This Agreement may be
executed in counterparts, each of which shall be deemed to be an original and
together shall be deemed to be one and the same

 

151

 

agreement.  Copies of executed counterparts of this
Agreement transmitted by facsimile shall be considered original executed
counterparts provided receipt of such facsimile is confirmed.

 

20.12                     Construction. 
Except where the context otherwise requires, wherever used, the singular
shall include the plural, the plural the singular, the use of any gender shall
be applicable to all genders and the word “or” is used in the inclusive sense
(and/or).  The captions of this
Agreement are for convenience of reference only and in no way define, describe,
extend or limit the scope or intent of this Agreement or the intent of any
provision contained in this Agreement. 
The term “including” as used herein shall mean including, without
limiting the generality of any description preceding such term.  The language of this Agreement shall be
deemed to be the language mutually chosen by the Parties and no rule of strict
construction shall be applied against either Party hereto.

 

20.13                     Severability.  If any provision of
this Agreement is held to be invalid, illegal or unenforceable, in any respect,
then, to the fullest extent permitted by Applicable Law and if the rights or
obligations of any Party will not be materially and adversely affected:
(a) such provision will be given no effect by the Parties and shall not
form part of this Agreement, (b) all other provisions of this Agreement
shall remain in full force and effect, and (c) the Parties shall use their
best efforts to negotiate a provision in replacement of the provision held
invalid, illegal or unenforceable that is consistent with Applicable Law and
achieves, as nearly as possible, the original intention of the Parties.  To the fullest extent permitted by
Applicable Law, the Parties waive any provision of law that would render any
provision in this Agreement invalid, illegal or unenforceable in any respect.

 

20.14                     Non-Solicitation.  During the Antigen Designation Term, neither a Party nor its
Affiliates shall directly solicit or in any manner encourage any employee of
the other Party or its Affiliates to leave its employ.  This provision shall not prohibit the
engagement in good faith of individuals who (a) contact the other Party on
their own initiative without any direct solicitation or encouragement from such
other Party, (b) act in response to general recruitment advertisements or
calls from recruitment firms placed in the normal course of business, or
(c) have had their employment terminated by a Party or any of its Affiliates
prior to employment discussions with the other Party or any of its Affiliates.

 

20.15                     Conditions Precedent to Grants
of Exclusive Licenses.  The effectiveness of this Agreement
(other than Sections 2.2.1(a), 2.2.1(b), 14.4 and 20.9 and
Articles 13, 15 and 17), and the rights and obligations of the Parties
under this Agreement (other than Sections 2.2.1(a), 2.2.1(b), 14.4 and
20.9 and Articles 13, 15 and 17), shall be subject to the satisfaction (or
waiver by the Parties) of the following conditions precedent:

 

20.15.1            The Parties shall have
duly executed and delivered the Financing Documents, and the Initial Closing
(as defined in the Purchase Agreement) shall have been consummated in
accordance with the provisions of the Financing Documents.

 

20.15.2            ABX shall have delivered to AZ a
certificate of the Chief Executive Officer of ABX that the
representations and warranties of ABX contained herein shall be true and
correct on and as of the Initial Closing Date with the same force and effect as
though made on and as of the Initial Closing Date (it being understood and
agreed that, in the case of

 

152

 

any representation and warranty of ABX contained
herein which is not qualified by a materiality standard elsewhere in this
Agreement, such representation and warranty need be true and correct only in
all material respects in order to satisfy as to such representation and
warranty the condition precedent set forth in the foregoing provision of this
Section 20.15.2), which representations and warranties as set forth
therein and as above qualified shall be deemed to be representations and
warranties under this Agreement for all purposes.

 

153

 

IN WITNESS WHEREOF, the Parties have caused this Agreement to be
executed by their respective duly authorized officers as of the day and year
first above written.

 

	
   

  	
  ABGENIX, INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ RAYMOND M. WITHY

  	
   

  
	
   

  	
   

  	
  (Signature)

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Raymond M. Withy

  	
   

  
	
   

  	
   

  	
  (Printed Name)

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  President and Chief Executive Officer

  	
   

  
	
   

  	
   

  	
  (Title)

  
	
   

  	
   

  	
   

  
	
   

  	
  ASTRAZENECA UK LTD.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ J.R. SYMONDS

  	
   

  
	
   

  	
   

  	
  (Signature)

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  J.R. Symonds

  	
   

  
	
   

  	
   

  	
  (Printed Name)

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Chief Financial Officer

  	
   

  
	
   

  	
   

  	
  (Title)

  

 

154

EXHIBIT A-1

 

ANTIGENS PROPOSED BY ABGENIX

 

Exhibit
intended to be blank upon execution

 

	
  Common Names(s)

  	
   

  	
  GenBank
  Accession Number

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  

 

 

EXHIBIT A-2

 

ANTIGENS PROPOSED BY AZ

 

	
  Common Names(s)

  	
   

  	
  GenBank
  Accession Number

  	
   

  
	
  [Confidential treatment requested]

  	
   

  	
  [Confidential treatment requested]

  	
   

  

 

 

EXHIBIT A-2

 

ANTIGENS PROPOSED BY AZ

 

	
  Common Names(s)

  	
   

  	
  GenBank
  Accession Number

  	
   

  
	
  [Confidential treatment requested]

  	
   

  	
  [Confidential treatment requested]

  	
   

  

 

 

EXHIBIT B

 

COLLABORATION ANTIGENS

 

	
  Common Names(s)

  	
   

  	
  GenBank
  Accession Number

  	
   

  
	
  [Confidential treatment requested]

  	
   

  	
  [Confidential treatment requested]

  	
   

  

 

 

EXHIBIT C-1

 

ADVANCED ABX ANTIGENS

 

	
  Common Names(s)

  	
   

  	
  Other ABX
  Internal Designations

  	
   

  	
  GenBank
  Accession

  Number

  	
   

  
	
  [Confidential treatment requested]

  	
   

  	
  [Confidential treatment requested]

  	
   

  	
  [Confidential treatment requested]

  	
   

  

 

 

EXHIBIT C-2

 

ACCELERATED ANTIGENS

 

	
  Common Names(s)

  	
   

  	
  GenBank
  Accession Number

  	
   

  
	
  [Confidential treatment requested]

  	
   

  	
  [Confidential treatment requested]

  	
   

  

 

 

EXHIBIT D

 

RESEARCH PROGRAM WORK PLANS

 

Exhibit
intended to be blank upon execution

 

 

EXHIBIT E

 

DEVELOPMENT WORK PLANS

 

Exhibit
intended to be blank upon execution

 

 

EXHIBIT F

 

AGREEMENTS AND IP RE:  EXCLUDED CATALYTIC ANTIBODY AND INTRABODY IP
RIGHTS

 

In-Licenses of Intrabody IP Rights:

 

Non-Exclusive
License and Bailment for Human Single Chain Fv Antibody Library dated
October 23, 1997, between the Board of Regents of the University of
California (“UC”) and Intraimmune Therapies, Inc. (“ITI”)

 

•                  Amended and
Restated Non-Exclusive License and Bailment Agreement dated June 26, 2002
UC and Abgenix, Inc.

 

Research
contract between ITI and Hereditary Disease Foundation — “Engineered Antibodies
and Intrabodies Specific for the Expanded Repeats of Huntingtin Protein”

 

Material
Transfer Agreement between ITI and Dr. Steven Finbeiner of the J. David
Gladstone Institutes.

 

Vector
Licensing Agreement effective as of September 18, 1995, between
Dana-Farber Cancer Institute, Inc. and ITI

 

•                  Amendment to
Vector Licensing Agreement dated July, 2000, between Dana-Farber Cancer
Institute, Inc. and ITI

 

Intrabody
Licensing Agreement effective as of September 18, 1995, between
Dana-Farber Cancer Institute, Inc. and ITI

 

•                  Amendment to
Intrabody Licensing Agreement dated July, 2000, between Dana-Farber Cancer
Institute, Inc. and ITI

 

Licensing
Agreement dated June 24, 1999, between Dana-Farber Cancer Institute, Inc.
and ITI (“MHC Intrabody License”)

 

•                  Amendment to
Vector Licensing Agreement dated July, 2000, between Dana-Farber Cancer
Institute, Inc. and ITI

 

 

EXHIBIT F (Continued)

 

AGREEMENTS AND IP RE:  EXCLUDED CATALYTIC ANTIBODY AND INTRABODY IP
RIGHTS

 

In-Licenses of Catalytic Antibody IP Rights:

 

License
Agreement dated January 7, 2000, among Hesed Biomed, Inc. (“Hesed”), the
Board of Regents of the University of Nebraska (“Nebraska”), IGEN International
Inc. (“Igen”) and Proteinix Corporation.

 

Letter of
Intent dated as of June 15, 2002, among Hesed, the Board of Regents of the
University of Texas System and Abgenix, Inc.

 

Sublicense
Agreement effective April 1, 2000 between UneMed Corporation and Hesed
(CRAA).  (Exhibit 1 contains a
description of all patents, patent applications and intellectual property
covered)

 

Sublicense
Agreement effective April 1, 2000 between UneMed Corporation and Hesed
(1995 CAb Patents).  (Exhibit 1
contains a description of all patents, patent applications and intellectual
property covered.)

 

Sublicense
Agreement effective January 7, 2000 between UneMed Corporation and Hesed
(Cabs).  (Section 1.6 of the
Agreement contains a description of all patents, patent applications and
intellectual property covered.)

 

License
Agreement dated January 7, 2000, among Hesed, IGEN International, Inc.
Proteinix Corporation and the Board of Regents of the University of
Nebraska.  (Appendices A and C contain a
description of all patents, patent applications and intellectual property
covered.)

 

Licensing
Agreement dated as of October 17, 2001 with Larry J. Smith (CRAA).  Section 1.7 describes the patent
covered)

 

Licensing
Agreement dated March 5, 1998 among Hesed, University of Texas Health
Science Center at Houston, Arizona Board of Regents on behalf of University of
Arizona and Biological Mimetics, Inc. for a license option on HIV therapeutics
or vaccines.  (No further description of
intellectual property)

 

Research
Collaboration and Option Agreement dated November 21, 2001, between
Abgenix and The Scripps Research Institute

 

 

EXHIBIT F (Continued)

 

AGREEMENTS AND IP RE:  EXCLUDED CATALYTIC ANTIBODY AND INTRABODY IP
RIGHTS

 

Material
Transfer and Research Collaboration Agreement dated March 16, 2000,
between Abgenix and the Board of Trustees and the University of Arkansas

 

•                  Amendment No. 1
to the Material Transfer and Research Collaboration Agreement, between Abgenix
and the Board of Trustees and the University of Arkansas, dated
November 13, 2001

 

Remainder of
page intentionally left blank

 

 

EXHIBIT F (Continued)

 

AGREEMENTS AND IP RE:  EXCLUDED CATALYTIC ANTIBODY AND INTRABODY IP
RIGHTS

 

	
  Subject Matter

  	
   

  	
  Representative
  Title

  	
   

  	
  Publication/Patent
  Family

  	
   

  
	
  [Confidential treatment requested]

  	
   

  
	
  [Confidential

  treatment requested]

  	
   

  	
  Compositions and Methods for Catalyzing Hydrolysis of HIV GP 120

  	
   

  	
  CA 2,223,914

  CN 96197083.9

  EP 96926751.7

  JP 506926/1997

  US 6,156,541

  WIPO PCT/

  US96/12025

  	
   

  
	
   

  	
   

  	
  Assay Methods and Kits for Diagnosing Autoimmune Disease

  	
   

  	
  CA 2,224,666

  SU 0,856,065

  GER 69628847.8

  EP 0,856,065

  SP 0,856,065

  FIN 0,856,065

  FR 0,856,065

  UK 0,856,065

  IT 0,856,065

  US 6,130,049

  WIPO PCT/

  US96/12026

  	
   

  
	
   

  	
   

  	
  Methods for Identifying Inducers and Inhibitors of Proteolytic
  Antibodies, Compositions and their Use

  	
   

  	
  AU 760648

  BRA PI 9909011-2

  CA 2,324,340

  	
   

  
	
   

  	
   

  	
  GP120 and Methods of Use Thereof

  	
   

  	
  US 60/458,063

  	
   

  
	
   

  	
   

  	
  Methods for Identifying Inducers and Inhibitors of Proteolytic
  Antibodies, Compositions and their Uses

  	
   

  	
  US 6,235,714

  US 09,862,849

  	
   

  
	
   

  	
   

  	
  Autoantibodies which Enhance the Rate of a Chemical Reaction

  	
   

  	
  US 5,236,836

  US 60/001,370

  US 60/001,321

  	
   

  
	
   

  	
   

  	
  Compositions and Methods for Catalyzing Hydrolysis of HIV gp120

  	
   

  	
  US 6,156,541

  	
   

  
	
   

  	
   

  	
  Hydrolysis of HIV gp120

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Assay Methods and Kits for Diagnosing Autoimmune Disease

  	
   

  	
  US 6,130,049

  	
   

  

 

 

EXHIBIT F (Continued)

 

AGREEMENTS AND IP RE:  EXCLUDED CATALYTIC ANTIBODY AND INTRABODY IP
RIGHTS

 

	
  Subject Matter

  	
   

  	
  Representative
  Title

  	
   

  	
  Publication/Patent
  Family

  	
   

  
	
   

  	
   

  	
  Monoclonal Antibody Components Elicited to a Polypeptide Antigen
  Ground State

  	
   

  	
  WO 93/09247

  EPO 0570554

  ISR 103685

  SA 92/8580

  CA 210060

  JP 508751/83

  KOR 702049/1992

  AU 662191

  	
   

  
	
   

  	
   

  	
  Monoclonal Antibody and Antibody Components Elicited to a Polypeptide
  Antigen Ground State

  	
   

  	
  US 5,318,897

  	
   

  
	
   

  	
   

  	
  Autoantibodies which Enhance the Rate of a Chemical Reaction

  	
   

  	
  US 5,599,538

  	
   

  
	
   

  	
   

  	
  Inhibitors of Catalytic Antibodies

  	
   

  	
  US 5,194,585

  	
   

  
	
   

  	
   

  	
  Autoantibodies which Enhance the Rate of a Chemical Reaction

  	
   

  	
  US 5,602,015

  WO 90/13661

  EP 0469060

  CA 2,015,377

  ISR 94201

  SA 90/3109

  INDIA326/MAS/90

  JP 507523/90

  AU 643,437

  	
   

  
	
   

  	
   

  	
  Inhibitors of Catalytic Antibodies

  	
   

  	
  US 5,194,585

  WO 91/12812

  EP 05178717

  AU 657678

  JP 50607191

  KOR 193700

  CA 2031799

  ISR 97333

  SA 91/1291

  	
   

  
	
   

  	
   

  	
  Catalytic Antibody Components

  	
   

  	
  US 5,229,272

  WO 508073/93

  EP 0521966

  	
   

  

 

 

EXHIBIT F (Continued)

 

AGREEMENTS AND IP RE:  EXCLUDED CATALYTIC ANTIBODY AND INTRABODY IP
RIGHTS

 

	
  Subject Matter

  	
   

  	
  Representative
  Title

  	
   

  	
  Publication/Patent
  Family

  	
   

  
	
   

  	
   

  	
  Catalytic Antibody Components

  	
   

  	
  CA 2,038,911

  SA 91/2036

  ISR P/97653

  INDIA 241/MAS/91 KOR 702307/1992

  JP 506650/91

  US 5,658,753

  	
   

  
	
   

  	
   

  	
  Method of Catalyzing Chemical Reactions

  	
   

  	
  US 4,888,281

  ISR 73685

  JP 2540508

  JP 2919979

  CA 1,340,511

  	
   

  
	
   

  	
   

  	
  Method for producing antibodies which catalyze chemical reactions

  	
   

  	
  US 5,037,750

  	
   

  
	
   

  	
   

  	
  Catalytic Antibodies

  	
   

  	
  US 5,156,965

  	
   

  
	
   

  	
   

  	
  Method of Catalyzing Chemical Reactions

  	
   

  	
  US 5,658,752

  US 08/447/924

  	
   

  
	
  [Confidential treatment requested]

  	
   

  
	
  [Confidential

  treatment requested]

  	
   

  	
  Method of Intracellular Binding of Proteins

  	
   

  	
  US 08/045,274

  WO 94/02610

  AU 687/010B

  AU 9347753 A

  EP 651 805

  UP 9501821

  US 5,851,829

  US 6,004,940

  US 5,965,371

  US 09/287,145

  	
   

  

 

 

EXHIBIT G

 

FORM OF CANDIDATE DRUG TARGET PROFILE

 

Abgenix and AZ have agreed upon set of
decision criteria to guide the compilation of specific Candidate Drug Target
Profiles.  The specific CDTP will
incorporate [Confidential treatment requested] values for the affinity,
selectivity and functional cell potency in vitro activity criteria based on the
characteristics of the target.  The
generic CDTP is shown below.  An antigen
specific CDTP will be prepared for each Prioritized antigen:

 

1.               In
vitro Activity

 

[Confidential treatment requested]

 

2.               DMPK

 

[Confidential treatment requested]

 

3.               In
Vivo efficacy

 

[Confidential treatment requested]

 

4.               Safety

 

[Confidential treatment requested]

 

5.               General
Properties

 

[Confidential treatment requested]

 

 

EXHIBIT H

 

FORM OF RESEARCH PROGRAM WORK PLAN

 

Objectives:

 

[Confidential treatment requested]

 

Generation of
Fully Human Antibodies to Research Antigen

 

1)              Immunogens &
Reagents

 

[Confidential treatment requested]

 

2)              Reagent Generation

 

[Confidential treatment requested]

 

3)              Assay Development

 

[Confidential treatment requested]

 

4)              Immunization

 

[Confidential treatment requested]

 

5)             Hybridoma
Production or XenoMaxTM Process

 

Antibodies may
be generated via production of hybridomas or the XenoMaxTM process.

 

a)              Hybridoma
Generation, Primary In Vitro
Characterization and Cloning

 

1)              Hybridoma Generation

 

[Confidential treatment requested]

 

2)              Initial In Vitro
Characterization of Hybridomas

 

[Confidential treatment requested]

 

3)              Hybridoma Cloning

 

[Confidential treatment requested]

 

 

EXHIBIT H (Continued)

 

FORM OF RESEARCH PROGRAM WORK PLAN

 

b)             XenoMaxTM B Cell
Generation, Primary In Vitro
Characterization, Gene Rescue

 

1)              XenoMax B Cell
Generation Process and In Vitro
Characterization

 

[Confidential treatment requested]

 

2)              B Cell Gene
Rescue

 

[Confidential treatment requested]

 

In Vitro Functional
Assay Panel (applicable to Hybridoma and XenoMaxTM projects)

 

[Confidential treatment requested]

 

In Vivo Evaluation

 

[Confidential treatment requested]

 

Mechanism of Action Studies

 

[Confidential treatment requested]

 

Preclinical Safety and Pharmacokinetics

 

[Confidential treatment requested]

 

ABGENIX will
perform the preclinical safety and pharmacokinetic studies listed below:

 

1)              [Confidential
treatment requested] Toxicology Study in [Confidential treatment requested]

 

[Confidential
treatment requested]

 

2)              Pharmacokinetics

 

[Confidential
treatment requested]

 

Production and Purification of Antibody
Material

 

[Confidential
treatment requested]

 

 

EXHIBIT H (Continued)

 

FORM OF RESEARCH PROGRAM WORK PLAN

 

1)              Small Scale
Production and Purification at [Confidential treatment requested] scale from
[Confidential treatment requested]:

 

[Confidential
treatment requested]

 

2)              Production and
Purification of Antibody at the [Confidential treatment requested]Scale

 

[Confidential
treatment requested]

 

3)              Production and
Purification of Antibody at the [Confidential treatment requested] Scale

 

[Confidential
treatment requested]

 

4)              Production and
Purification at the [Confidential treatment requested] Scale

 

[Confidential
treatment requested]

 

5)              Pharmaceutical
Properties

 

[Confidential
treatment requested]

 

6)              IP

 

[Confidential
treatment requested]

 

 

 

EXHIBIT I

 

KEY PERSONNEL

 

	
  Title

  	
   

  	
  Minimum #
  of Years of Relevant

  Professional Employment Experience

  	
   

  	
  Educational
  Training Required

  	
   

  
	
  Director (or above), Research (XenoMax)

  	
   

  	
  8 years of supervisory experience with 3 years managing a Department
  of greater than 20

  	
   

  	
  Ph.D. or 8 years relevant antibody research experience

  	
   

  
	
  Assoc. Director, Research (XenoMax)

  	
   

  	
  3 years supervisory experience of a group larger than 10

  	
   

  	
  Ph.D. or 5 years relevant antibody research experience

  	
   

  
	
  Director (or above), Antibody Technologies

  	
   

  	
  8 years of experience in antibody sciences including demonstrated
  achievement in the generation and characterization of monoclonal antibodies
  as candidates for human therapeutics

  	
   

  	
  Ph.D. in Biology (Immunology, Biochemistry, Development Biology, or
  Cellular and Molecular Biology)

  	
   

  
	
  Sr. Director (or above), Regulatory

  	
   

  	
  10 years of experience in regulatory affairs I the pharmaceutical
  industry, the majority of which should be in biologics.

  	
   

  	
  Minimum of a Bachelor’s degree in a science related field such as
  biology, chemistry, pharmacy, biochemistry.

  	
   

  
	
  Director (or above), Clinical (PD/PK/Tox.)

  	
   

  	
  8 years industry experience in pharmacokinetics, clinical
  pharmacology, or toxicology and at least 2 years management experience

  	
   

  	
  Ph.D. in Pharmaceutical Sciences, Pharmacology, or Toxicology

  	
   

  
	
  VP, Medical (or above), Oncology

  	
   

  	
  Minimum of 7 years experience in drug development in the
  pharmaceutical industry

  	
   

  	
  MD, Board certified oncologist

  	
   

  
	
  Director (or above), Process Sciences

  	
   

  	
  8 years in cell culture process development; minimum of 4 years
  experience as group leader.

  	
   

  	
  Ph.D. in Cell Biology or Chemistry Engineering

  	
   

  
	
  Vice President (or above), Manufacturing

  	
   

  	
  10 years manufacturing experience, minimum 15 years industry
  experience

  	
   

  	
  Advanced scientific degree preferred; experience a potential
  substitute

  	
   

  
	
  Director (or above), Process Sciences, Analytical

  	
   

  	
  8 years analytical biochemistry experience.  Experience in supporting regulatory filings.

  	
   

  	
  Ph.D. in Biochemistry, Chemistry or physical science.

  	
   

  
	
  Scientist I (or above), Process Sciences

  	
   

  	
  5 years in formulation process development of proteins.

  	
   

  	
  Ph.D. in Biochemistry or Pharmaceutics

  	
   

  
	
  Sr. Director (or above), Process Sciences

  	
   

  	
  10 years in process development of biologics:  minimum of 5 years experience as group
  leader.

  	
   

  	
  Ph.D. in Cell Biology, Biochemistry or Chemical Engineering

  	
   

  
	
  AZ Research Program Leader/Coordinator

  	
   

  	
  7 years experience in oncology research and drug development

  	
   

  	
  Ph.D. or MD in life science

  	
   

  
	
  Director (or above), Preclinical

  	
   

  	
  10 years or more of post Ph.D. experience including at least 5 years
  in biotech or pharmacology.

  	
   

  	
  Ph.D. in Pharmacology, Biochemistry or Molecular Biology

  	
   

  

 

 

EXHIBIT J

 

INITIAL RESEARCH MANAGEMENT COMMITTEE
REPRESENTATIVES

 

For Abgenix:

 

[Confidential
treatment requested]

 

 

ForAstra
Zeneca:

 

[Confidential
treatment requested]

 

 

EXHIBIT K-1

 

ABX IN-LICENSES (AS OF THE EFFECTIVE DATE)

 

Japan Tobacco
Agreements:

 

•                  Limited
Partnership Agreement dated June 12, 1991 among Cell Genesys, Xenotech,
Inc. and JT Immunotech USA Inc.

 

•                  Amendment No. 2
dated January 1, 1994 to Limited Partnership Agreement

•                  Amendment No. 3
dated July 1, 1995 to Limited Partnership Agreement

•                  Amendment No. 4
dated June 28, 1996 to Limited Partnership Agreement.

 

•                  Joint Venture
Agreement dated June 12, 1991 between Cell Genesys and JT Immunotech USA
Inc., as amended

 

•                  Amendment No. 1
dated January 1, 1994 to Joint Venture Agreement

•                  Amendment No. 2
dated June 28, 1996 to Joint Venture Agreement.

 

•                  Limited
Partnership Interest and Stock Purchase Agreement between Abgenix, Inc. and JT
America Inc. made December 20, 1999.

 

•                  Master Research
License and Option Agreement, dated June 28, 1996, between Cell Genesys,
Japan Tobacco and Xenotech LP

 

•                  Amendment to
Master Research License and Option Agreement, dated November, 1997, between
Cell Genesys, Japan Tobacco and Xenotech LP

•                  Agreement to
Terminate the Interest of Japan Tobacco Inc. in the Master Research License and
Option Agreement by and among Abgenix, Inc., Japan Tobacco Inc. and Xenotech
L.P. effective December 31, 1999.

 

•                  Collaboration
Agreement, dated June 12, 1991, between Cell Genesys, JT Immunotech USA
and Xenotech L.P., as amended

 

•                  Amendment No. 1
dated June 30, 1993 to Collaboration Agreement

•                  Amendment No. 2
dated January 1, 1994 to Collaboration Agreement

•                  Amendment No. 3
dated July 1, 1995 to Collaboration Agreement

•                  Amendment No. 4
dated June 28, 1996 to Collaboration Agreement

•                  Amendment No. 5
dated November 1997 to Collaboration Agreement

•                  Agreement to
Terminate the Collaboration Agreement by and among Abgenix, Inc., JT America
Inc., and Xenotech L.P. effective December 31, 1999.

 

 

EXHIBIT K-1 (Continued)

 

ABX IN-LICENSES (AS OF THE EFFECTIVE DATE)

 

•                  Field License,
dated June 12, 1991, between Cell Genesys and JT Immunotech USA, as
amended

 

•                  Amendment No. 1
dated March 22, 1996 to Field License

•                  Amendment No. 2
dated June 28, 1996 to Field License

•                  Amended and
Restated Field License by and among Abgenix, Inc., JT America Inc. and Xenotech
L.P. effective December 31, 1999.

 

•                  Expanded Field
License, dated June 12, 1991, between Cell Genesys and JT Immunotech USA,
as amended

 

•                  Amendment No. 1
dated June 28, 1996 to Expanded Field Licens

•                  Amendment of the
Expanded Field License by and among Abgenix, Inc., JT America Inc. and Xenotech
L.P. effective December 31, 1999.

 

•                  Technology
Exchange Agreement dated March 22, 1996, as amended, among Cell Genesys,
Inc., Japan Tobacco Inc., and Xenotech

 

•                  Amendment of The
Technology Exchange Agreement, effective June 28, 1996, made by and among
Cell Genesys, Inc., Japan Tobacco Inc. and Xenotech L.P.

•                  Second Amendment
of The Technology Exchange Agreement, effective December 31, 1999, made by
and among Abgenix, Inc., Japan Tobacco Inc. and Xenotech L.P.

 

•                  License
Agreement by and between Abgenix, Inc. and Japan Tobacco Inc. effective
December 31, 1999

 

•                  Agreements
between Dr. Tasuku Honjo and Japan Tobacco Inc. of April 21, 1992,
April 28, 1993, and April 21, 1997

 

Cell Genesys
Agreements:

 

•                  Stock Purchase
and Transfer Agreement dated July 15, 1996 by and between Cell Genesys and
Abgenix.

 

•                  Patent
Assignment Agreement dated July 15, 1996 by Cell Genesys in favor of
Abgenix.

 

•                  Gene Therapy
Rights Agreement effective as of November 1, 1997 between Abgenix and Cell
Genesys.

 

GenPharm
International Agreements:

 

•                  Release and
Settlement Agreement dated March 26, 1997 among Cell Genesys, Abgenix,
Xenotech, L.P., Japan Tobacco Inc. and GenPharm International, Inc.

 

 

EXHIBIT K-1 (Continued)

 

ABX IN-LICENSES (AS OF THE EFFECTIVE DATE)

 

•                  Cross License
Agreement effective as of March 26, 1997, among Cell Genesys, Abgenix,
Xenotech, L.P., Japan Tobacco Inc. and GenPharm International, Inc.

 

•                  Interference
Settlement Procedure Agreement, effective as of March 26, 1997, among Cell
Genesys, Abgenix, Xenotech, L.P., Japan Tobacco Inc. and GenPharm
International, Inc.

 

•                  License
Agreement dated June 15, 1989, as amended, between GenPharm and the
University of Utah Research Foundation (licensed under the GenPharm
Cross-license)

 

MRC Agreement:

 

•                  License
Agreement, dated March 29, 1994, between Medical Research Council and Cell
Genesys

 

AFRC
Agreement:

 

•                  Agreement by and
between the Agricultural and Food Research Council and Cell Genesys, Inc. dated
June 29, 1993

 

XenoMax/SLAM
Technology Agreements:

 

•                  License
Agreement among BR Centre Limited, Ingenix Biomedical Inc. and
Dr. John W. Schrader, dated May 9, 1994

 

•                  License
Agreement Amendment among BR Centre Limited, Ingenix Biomedical Inc. and Dr. John
W. Schrader, dated May 9, 1994

 

•                  Assignment
Agreement among BR Centre Limited and The University of British Columbia
Foundation, dated March 10, 1998

 

•                  Assignment
Agreement between The University of British Columbia Foundation and the
University of British Columbia, dated June 25, 2001.

 

•                  License
Termination and Technology Assignment Agreement between the University of
British Columbia and Abgenix Biopharma, Inc., dated August 2, 2001.

 

Other
Agreements:

 

•                  License
Agreement, dated June 14, 1994, between Zeneca Limited and Xenotech, LP

 

•                  Material
Transfer and License Agreement by and between Universtat Koln and Cell Genesys,
Inc., dated December 1, 1992

 

 

EXHIBIT K-1 (Continued)

 

ABX IN-LICENSES (AS OF THE EFFECTIVE DATE)

 

•                  License
Agreement dated August 1, 1991 between Washington University and Cell
Genesys, Inc.

 

•                  Material Release
Agreement dated September 20, 1995 between Regents of University of
Michigan and Cell Genesys, Inc.

 

•                  License
Agreement dated December 28, 1995 between E.I. DuPont de Nemours & Co.
and Xenotech

 

•                  License
Agreement dated February 15, 1997 between Albert Einstein College of
Medicine of Yeshiva University and Xenotech

 

 

EXHIBIT K-2

 

ABX ANTIGEN IN-LICENSES (AS OF THE EFFECTIVE
DATE)

 

Restated
Collaboration Agreement dated November 27, 2000, by and between Abgenix,
Inc. and Curagen Corporation.

 

Research,
Development and Commercialization Collaboration Agreement dated June 22,
2001, by and between Abgenix, Inc. and MDS Proteomics, Inc.

 

Amended and
Restated Collaboration Agreement dated January 3, 2002, by and between
Abgenix, Inc. and Lexicon Genetics Incorporated

 

Collaboration
Agreement dated March 20, 2000, by and between Abgenix, Inc. and Corixa
Corporation

 

Codevelopment
Agreement dated April 18, 2002, by and between Abgenix, Inc. and Corvas
International, Inc.(1)

 

(1)                                  Abgenix has potential
future in-license rights to certain antigens with a potential right to
sub-license those in-licensed rights

 

 

EXHIBIT L

 

THIRD PARTY ROYALTIES

 

Exhibit intended to be blank upon execution

 

 

EXHIBIT M

 

PRESS RELEASE

 

FOR RELEASE AT 5:00 AM PT

 

OCTOBER 16, 2003, THURSDAY

 

Contacts:                                             Ami
Knoefler

Abgenix

510-284-6350 or 510-284-6605

 

Steve Brown

Astra Zeneca

+44 (0) 207 304 5033

 

AstraZeneca and Abgenix announce

 

STRATEGIC ALLIANCE TO DISCOVER AND DEVELOP

ANTIBODY THERAPEUTICS FOR CANCER

 

AstraZeneca
makes $100 million upfront equity investment to broaden oncology research
scope

 

Abgenix to receive milestone, royalty and
collaboration payments

 

London and
Fremont, Calif., October 16, 2003 – AstraZeneca and Abgenix, Inc.
(Nasdaq:  ABGX announced today
that they have entered into a broad collaboration, license and investment
alliance to discover, develop and commercialize fully human monoclonal
antibodies to treat cancer.  The alliance
involves:

 

•                  The joint
discovery and development of therapeutic antibodies for up to 36 cancer targets
to be commercialized exclusively worldwide by AstraZeneca.  For these products, Abgenix will receive
milestone payments at various stages of development and royalties on future
product sales.  In addition, the
collaboration will involve the selection and development of an additional pool
of antibodies by Abgenix, which the companies may elect to further develop on
an equal cost and profit sharing basis.

 

•                  For those
product candidates for which AstraZeneca holds exclusive commercialization
rights, Abgenix will conduct early clinical trials, process development and
clinical manufacturing, as well as commercial manufacturing during the first
five years of commercial sales. 
AstraZeneca will compensate Abgenix for those activities.

 

-more-

 

 

EXHIBIT M (Continued)

 

PRESS RELEASE

 

Page 2 / AstraZeneca and Abgenix

 

•                  A $100 million
investment by AstraZeneca in Abgenix convertible preferred stock, initially
convertible into Abgenix common stock at $30 per share.  Upon the achievement of certain milestones,
Abgenix may also require AstraZeneca to invest an additional $60 million in
Abgenix convertible preferred stock.

 

AstraZeneca
may select initial antibodies from Abgenix’s existing preclinical oncology
portfolio and both companies will also propose additional targets for
selection.  AstraZeneca will be
responsible for late stage clinical development of the portfolio and will hold
worldwide commercialization rights for any resulting products.  Upon commercialization, royalties will be
paid to Abgenix on sales of products that result from the collaboration.  The royalty range will vary from product to
product based on the level of product sales.

 

The alliance
also includes a co-development component under which Abgenix will generate
additional antibody product candidates that AstraZeneca will have the option to
co-develop with Abgenix.  The companies
will share development costs and responsibilities for any co-developent
candidates selected.

 

“This
collaboration further strengthens our position at the forefront of cancer
research, allowing us to combine our oncology development expertise and leading
sales and marketing capabiligies with Abgenix’s expertise in the discovery,
early development and manufacture of fully human antibodies.  This alliance adds to our proven expertise
with small molecules and has the potential to significantly broaden and
strengthen AstraZeneca’s oncology pipeline,” said Sir Tom McKillip, Chief
Executive of AstraZeneca.

 

“This alliance
reinforces the value of our antibody development platform and enables the next
wave of oncology products beyond our lead candidate ABX-EGF,” said Raymond
Withy, PhD, President and Chief Executive Officer of Abgenix.  “By partnering with AstraZeneca, a global
leader in oncology research and development, we take a major step towards
bringing a portfolio of highly targeted and effective cancer drugs to
patients,” Withy continued.

 

The
consummation of the collaboration and license agreement and the issuance of the
convertible preferred stock to AstraZeneca are subject to customary closing
conditions, including without limitation the expiration or termination of the
waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976,
as amended.

 

A conference
call with executives from both companies will be held on Thursday,
October 16 at 6:00 AM PT, 2:00 PM BST to discuss today’s
announcement.  The call will be webcast
live and available for replay on Abgenix’s website at www.abgenix.com.  Participants can access the call by dialing
888-286-8010 (toll free from the US) or 617-801-6888 providing passcode
18137968.

 

2

 

EXHIBIT M (Continued)

 

PRESS RELEASE

 

Page 3 / AstraZeneca and Abgenix

 

About AstraZeneca

 

AstraZeneca is
a major international healthcare business engaged in the research, development,
manufacture and marketing of prescription pharmaceuticals and the supply of
healthcare sales of over $17.8 billion in 2002 and leading positions in sales
of gastrointestinal, oncology, cardiovascular, neuroscience and respiratory
products.  AstraZeneca is listed in the
Dow Jones Sustainability Index (Global and European) as well as the FTSE4Good
Index.  AstraZeneca continues its
tradition of research excellence and innovation in oncology that led to the
development of its current anti-cancer therapies including ‘Arimidex’,
‘Casodex’, ‘Faslodex’, ‘Nolvadex’, ‘Zoladex’ and Iressa’.  AstraZeneca is also harnessing rational drug
design technologies to develop new compounds that offer advantages over current
cytotoxic and hormonal treatment options. 
The company has over 20 different anti-cancer projects in research and
development including a range of novel targeted products such as
anti-proliferatives, anti-angiogenics, vascular targeting and anti-invasive
agents.  For more information about
AstraZeneca, please visit www.astrazeneca.com.

 

About Abgenix

 

Abgenix is a
biopharmaceutical company focused on the discovery, development and
manufacturing of human therapeutic antibodies. 
The company’s antibody development platform includes a leading
technology and state-of-the-art manufacturing capabilities that enable the
rapid generation, selection and production of high affinity, fully human
antibody product candidates to a variety of disease targets.  Abgenix leverages its leadership position in
human antibody technology to build a diversified product portfolio through the
establishment of collaborations with multiple pharmaceutical and biotechnology
companies.  For more information on
Abgenix, visit the company’s website at www.abgenix.com.

 

Statements made in this press release about Abgenix’s
technologies, product development activities, collaborative arrangements and process
science and manufacturing capabilities, other than statements of historical
fact, and about its projected financial results and the achievement of
milestone or similar payments, are forward-looking statements are subject to a
number of uncertainties that could cause actual results to differ materially
from the statements made, including risks associated with the success of
clinical trials, the progress of research and product development programs,
product manufacturing, regulatory approval processes, competitive products and
services future capital requirements and the extent and breadth of Abgenix’s
patent portfolio.  Please see Abgenix’s
public filings with the Securities and Exchange Commission for information
about risks that may affect Abgenix.

 

3

 

EXHIBIT N

 

Intentionally left blank

 

 

EXHIBIT O

 

ROYALTY RATES ON CHANGE IN CONTROL AND
CERTAIN TERMINATIONS

 

Milestones & Royalties in the Event of
Termination due to Change of Control:

 

	
   

  	
   

  	
  Post
  Designation of

  the First Research

  Antibodies & Prior

  to Start of First In

  Vitro Study

  	
   

  	
  After
  Start of First

  In Vivo Study &

  prior to CDTP

  	
   

  	
  After CD

  Matchingand prior

  to Election Notice

  	
   

  	
  After
  Election

  Notice

  	
   

  
	
  Election Notice

  	
   

  	
  [Confidential treatment
  requested]

  	
   

  	
  [Confidential treatment
  requested]

  	
   

  	
  [Confidential treatment
  requested]

  	
   

  	
  [Confidential treatment
  requested]

  	
   

  
	
  Phase III Start

  	
   

  	
  [Confidential treatment
  requested]

  	
   

  	
  [Confidential treatment
  requested]

  	
   

  	
  [Confidential treatment
  requested]

  	
   

  	
  [Confidential treatment
  requested]

  	
   

  
	
  BLA Acceptance

  	
   

  	
  [Confidential treatment
  requested]

  	
   

  	
  [Confidential treatment
  requested]

  	
   

  	
  [Confidential treatment
  requested]

  	
   

  	
  [Confidential treatment
  requested]

  	
   

  
	
  Approval

  	
   

  	
  [Confidential treatment
  requested]

  	
   

  	
  [Confidential treatment
  requested]

  	
   

  	
  [Confidential treatment
  requested]

  	
   

  	
  [Confidential treatment
  requested]

  	
   

  
	
  Royalties – Non – Proprietary

  	
   

  	
  [Confidential treatment requested]

  	
   

  	
  [Confidential treatment requested]

  	
   

  	
  [Confidential treatment requested]

  	
   

  	
  Per Section 9.3.2

  	
   

  
	
  Royalties – Proprietary

  	
   

  	
  [Confidential treatment requested]

  	
   

  	
  [Confidential treatment requested]

  	
   

  	
  [Confidential treatment requested]

  	
   

  	
  Per Section 9.3.2

  	
   

  

 

Milestones & Royalties in the Event of
Termination due to Abgenix Breach:

 

	
   

  	
   

  	
  Prior to

  Designation

  of the First

  Research

  Antibody

  	
   

  	
  Post
  Designation

  of the First

  Research

  Antibodies &

  Prior to Start of

  First In Vitro

  Study

  	
   

  	
  After
  Start of

  First In Vivo

  Study & prior to

  CDTP

  	
   

  	
  After CD

  Matchingand

  prior to Election

  Notice

  	
   

  	
  After
  Election

  Notice

  	
   

  
	
  Election Notice

  	
   

  	
  [Confidential treatment
  requested]

  	
   

  	
  [Confidential treatment
  requested]

  	
   

  	
  [Confidential treatment
  requested]

  	
   

  	
  [Confidential treatment
  requested]

  	
   

  	
  [Confidential treatment
  requested]

  	
   

  
	
  Phase III Start

  	
   

  	
  [Confidential treatment
  requested]

  	
   

  	
  [Confidential treatment
  requested]

  	
   

  	
  [Confidential treatment
  requested]

  	
   

  	
  [Confidential treatment
  requested]

  	
   

  	
  [Confidential treatment
  requested]

  	
   

  
	
  BLA Acceptance

  	
   

  	
  [Confidential treatment
  requested]

  	
   

  	
  [Confidential treatment
  requested]

  	
   

  	
  [Confidential treatment
  requested]

  	
   

  	
  [Confidential treatment
  requested]

  	
   

  	
  [Confidential treatment
  requested]

  	
   

  
	
  Approval

  	
   

  	
  [Confidential treatment
  requested]

  	
   

  	
  [Confidential treatment
  requested]

  	
   

  	
  [Confidential treatment
  requested]

  	
   

  	
  [Confidential treatment
  requested]

  	
   

  	
  [Confidential treatment
  requested]

  	
   

  
	
  Royalties – Non – Proprietary

  	
   

  	
  [Confidential treatment
  requested]

  	
   

  	
  [Confidential treatment
  requested]

  	
   

  	
  [Confidential treatment
  requested]

  	
   

  	
  [Confidential treatment
  requested]

  	
   

  	
  [Confidential treatment
  requested]

  	
   

  
	
  Royalties – Proprietary

  	
   

  	
  [Confidential treatment
  requested]

  	
   

  	
  [Confidential treatment
  requested]

  	
   

  	
  [Confidential treatment
  requested]

  	
   

  	
  [Confidential treatment
  requested]

  	
   

  	
  [Confidential treatment
  requested]

  	
   

  

 

 

EXHIBIT P

 

MATERIAL TRANSFER AGREEMENT BETWEEN THE
PARTIES

 

To be appended
following execution of the agreement

 

 

EXHIBIT Q

 

PRIORITIZED ANTIGENS

 

	
  Common Names(s)

  	
   

  	
  GenBank
  Accession Number

  	
   

  
	
  [Confidential
  treatment requested]

  	
   

  	
  [Confidential
  treatment requested]

  	
   

  

 

 

EXHIBIT R

 

SUPPLEMENTARY XENOMOUSE® AGREEMENT

 

[(Attached)]

 

SUPPLEMENTARY
XENOMOUSE® AGREEMENT

 

[This
SUPPLEMENTARY XENOMOUSE AGREEMENT (this “Agreement”), effective as of
October 15, 2003 (the “Effective Date”), is entered into by and between,
on the one hand, ABGENIX, INC., a Delaware corporation (“ABX”), having a place
of business at 6701 Kaiser Drive, Fremont, California 94555, U.S.A., and, on
the other hand, ASTRAZENECA UK LTD., a company incorporated in England under
no. 3674842 whose registered office is at 15 Stanhope Gate, London, WIK 1LN,
England (“AZ”).

 

A.                                   The
Parties are, simultaneously herewith, entering into a Collaboration and License
Agreement, of even date herewith (as amended or restated from time to time, the
“Collaboration Agreement”).

 

B                                        The
Parties are entering into this Agreement pursuant to Section 16.8.2(a)(iii)
of the Collaboration Agreement.  This
Agreement is solely to provide additional terms and conditions governing AZ’s
use and handling of XenoMouse Animals (as defined below) in the event that such
animals are transferred by ABX to AZ pursuant to such Section.

 

NOW THEREFORE,
in consideration of the foregoing premises and the mutual covenants set forth
below, and other good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, the Parties, intending to be legally bound,
agree as follows, except as otherwise expressly provided in the Collaboration
Agreement:

 

1.               Definitions.  For purposes of this Agreement, the terms
defined in this Section 1 shall have the respective meanings set forth
below:

 

1.1                                 “ABX
Technology” shall mean, collectively, (a) all XenoMouse Animals (including
all XenoMouse Animals immunized with the Antigen hereunder); (b) all
compositions of matters that are delivered by ABX to AZ as described in Exhibit
A; (c) all compositions of matter that are Derived from the XenoMouse Animals;
and (c) all Information specifically regarding the foregoing (and all tangible
and intangible embodiments thereof); which is disclosed by ABX to AZ or Derived
from the Research; provided, however, that the ABX Technology shall not include
any materials and Information that would have constituted Collaboration
Technology if such materials and Information had been conceived or generated
under or in connection with a Research Program pursuant to the Collaboration Agreement.

 

1.2                                 “Antigen”
shall mean each Collaboration Antigen described in Section 16.8.2(a)(iii)
of the Collaboration Agreement.

 

1.3                                 “Research”
shall mean the conduct of the template Research Program Work Plan (as may be
amended by the Parties from time to time) generally without regard to the
specific antigen and such other activities as are Reasonably Necessary to
generate commercially viable Antibodies that bind to and are directed against
an Antigen.

 

1.4                                 “XenoMouse
Animals” shall mean (i) those mice that are transgenic for the human heavy
chain variable Ig loci that is described in Mendez, et al., Nature Genetics 15:
146-156 (1997), set forth in Exhibit A, and any improved strains of such
mice that are used by ABX and its Affiliates in their business to generate
antibodies for use in the Commercial Field

 

 

through the date on which ABX is obligated to transfer XenoMouse
Animals to AZ pursuant to Section 16.8.2(a)(iii) of the Collaboration
Agreement, and (ii) subject to Section 4.18.2 of the Collaboration
Agreement, the [Confidential treatment requested] that are used by ABX and its
Affiliates in their business to generate antibodies for use in the Commercial
Field through the date on which ABX is obligated to transfer XenoMouse Animals
to AZ pursuant to Section 16.8.2(a)(iii) of the Collaboration Agreement.

 

Any
capitalized terms not otherwise defined in this Agreement shall have the
meaning set forth in the Collaboration Agreement.

 

2.               Permitted Use.  ABX shall transfer to AZ the XenoMouse
Animals and other ABX Technology for the sole purpose of immunizing the
XenoMouse Animals with the Antigens and performing the Research.  AZ shall use the ABX Technology for such
purpose at its or its Affiliates’ facilities set forth on Exhibit B under
scientifically reasonable containment conditions, and not for any other
commercial, business or other use or purpose without the prior express written
consent of ABX.  Notwithstanding the
foregoing, if AZ changes the location of AZ’s primary animal facilities, AZ shall
have the right, on written notice to ABX, to amend Exhibit B to delete the
former location, and to include the new location, of AZ’s primary animal
facilities.  AZ shall not transfer or
provide access to the ABX Technology to any Third Party or to any location
other than one of AZ’s or its Affiliates’ facilities, without the prior express
written consent of ABX.  AZ shall limit
access to the ABX Technology to those of its and its Affiliates’ employees
working at such facilities, to the extent such access is reasonably necessary
in connection with AZ’s activities as expressly authorized by this
Agreement.  ABX shall also deliver to AZ
such XenoMouse Methods as are Reasonably Necessary to complete the Research,
including the methods described in the protocols listed in Exhibit A.

 

3.               Further Restrictions on Use and Control
over the XenoMouse Animals.  ABX is
willing to transfer XenoMouse Animals to AZ solely on the terms and conditions
contained in this Agreement.  The
transfer of the XenoMouse Animals by ABX and the use of XenoMouse Animals and
ABX Technology by AZ hereunder is made expressly subject to the following terms
and conditions:

 

3.1                                 all
XenoMouse Animals transferred to AZ shall be the sole property of ABX, and the
transfer of physical possession to AZ, or possession or use by AZ of XenoMouse
Animals, shall not be, nor be construed as, a sale, lease, offer to sell or
lease, or other transfer of title to or any interest in any XenoMouse Animals;

 

3.2                                 all
XenoMouse Animals and other ABX Technology shall remain in the control of AZ,
and AZ shall not (and shall not attempt to) transfer the XenoMouse Animals or
other ABX Technology to any Third Party, without the prior express written
consent of ABX, except as expressly provided in this Agreement; provided,
however, that notwithstanding anything contained in this Agreement, AZ shall
have a right to provide to governmental or regulatory authorities such
Information as may be reasonably necessary or useful in connection with any
filing, application or request for a Registration made by or on behalf of AZ in
accordance with the terms and conditions of the Collaboration Agreement;

 

2

 

3.3                                 AZ
shall not directly or indirectly use or attempt to use the XenoMouse Animals or
other ABX Technology to reproduce, generate, create or produce, through
breeding, reverse-engineering, genetic manipulation or otherwise, the XenoMouse
Animals or other transgenic mice or other transgenic animals;

 

3.4                                 the
XenoMouse Animals shall be delivered to AZ solely for the purposes of
immunizing the XenoMouse Animals with the Antigens and performing the Research,
and AZ shall not use the XenoMouse Animals or other ABX Technology for any
other purpose;

 

3.5                                 AZ
shall not (and shall not attempt or purport to) assign, sell, have sold, lease,
offer to sell or lease, distribute, license, sublicense or otherwise transfer
title to or an interest in, or, except as otherwise provided in this Agreement
or the Collaboration Agreement, clinically develop, commercialize or exploit,
any XenoMouse Animals or other ABX Technology;

 

3.6                                 AZ
shall not directly or indirectly use the XenoMouse Animals to make or use
antibodies to any antigen other than the Antigens (including to [Confidential
treatment requested]); and

 

3.7                                 ABX
shall own all right, title and interest in and to all discoveries, inventions,
materials, products, derivatives, know-how and information (whether or not
patentable), together with all patent rights and other intellectual property
rights therein, which are conceived, made, created or developed by AZ (and any
of its agents or employees) through any use of the XenoMouse Animals in breach
of the terms and conditions set forth in this Agreement.

 

4.               Records.  AZ shall maintain records of the use of the
ABX Technology in the activities conducted under the Research (or cause such
records to be maintained) in sufficient detail, and ABX shall have the right,
during normal business hours and upon reasonable notice, to inspect such
records solely as necessary, to enable ABX to monitor compliance with the terms
and conditions of this Agreement.  ABX
shall maintain such records and the information of AZ contained therein in
confidence in accordance with Article 13 of the Collaboration Agreement,
as if such records and information had been disclosed by AZ to ABX thereunder.

 

5.               Ownership and Control of ABX
Technology.  All right, title and
interest in and to the ABX Technology and all Patent Rights and other
intellectual property rights therein shall belong solely to ABX.  Upon completion or termination of the
Research, AZ promptly shall destroy, or return to ABX, all remaining XenoMouse
Animals and ABX Technology.  AZ shall
not (and shall not attempt or purport to) file, or prosecute in any country any
patent application, which contains a claim that covers or purports to cover the
ABX Technology, without the prior express written consent of ABX.

 

6.               Export Regulations.  AZ acknowledges that the laws and
regulations of the United States, including the Export Administration
Regulations (EAR), restrict the export and re-export of certain materials,
chemicals, microorganisms, toxins and other commodities and technology of
United States origin.  AZ agrees that it
will not export or re-export the XenoMouse Animals or

 

3

 

ABX Technology in any form in violation of such laws and regulations
without the appropriate United States and foreign government export or import
licenses or other official authorization.

 

7.               No Representations.  AZ hereby acknowledges that the XenoMouse
Animals and other ABX Technology are experimental in nature and that they are
provided “AS IS.”  ABX MAKES NO
REPRESENTATIONS OR WARRANTIES under this agreement, EXPRESS OR IMPLIED, WITH
RESPECT TO THE XenoMouse Animals or other ABX Technology.  ABX DISCLAIMS under this agreement ALL
IMPLIED WARRANTIES, INCLUDING ANY WARRANTY OF MERCHANTABILITY, FITNESS FOR A
PARTICULAR PURPOSE OR NONINFRINGEMENT. 
For the avoidance of doubt, nothing contained in this Agreement is
intended to limit, or shall be construed to limit, any representation or
warranty contained in the Collaboration Agreement.

 

8.               Compliance with Laws.  AZ shall comply with all laws and
governmental rules, regulations and guidelines which are applicable to the
XenoMouse Animals and other ABX Technology, including biosafety procedures, and
with any safety precautions accompanying the XenoMouse Animals and other ABX
Technology.

 

9.               No Implied Licenses.  This Agreement shall not be construed to grant
any license or other rights to AZ in any patent rights or other intellectual
property rights of ABX.

 

10.         Assignment.  AZ may not assign or otherwise transfer this Agreement, whether
by voluntarily, by operation of law or contract, other than with the permitted
assignment or transfer of the Collaboration Agreement or with the prior express
written consent of ABX.  Any purported
assignment or transfer of this Agreement in violation of this
section shall be void.

 

11.         Entire Agreement.  This Agreement, together with the
Collaboration Agreement, represents the entire agreement between the Parties
regarding the subject matter hereof and shall supersede all previous
communications, representations, understandings and agreements, whether oral or
written, by or between the Parties with respect to the subject matter hereof.

 

12.         Waiver.  No change, modification, extension, termination or waiver of this
Agreement, or any of the provisions herein contained, shall be valid unless
made in writing and signed by duly authorized representatives of the Parties.

 

13.         Specific Performance.  A breach of any of the promises or
agreements contained herein will result in irreparable and continuing damage to
Transferor for which there will be no adequate remedy at law, and Transferor
shall be entitled to injunctive relief or a decree for specific performance,
and such other relief as may be proper (including monetary damages if
appropriate).  Nothing contained in this
Section 13 is intended, or shall be construed, to limit any right or
remedy that may be available to either Party under this Agreement or the
Collaboration Agreement.

 

14.         Governing Law; Jurisdiction; Service of
Process.  This Agreement shall be
governed by and construed in accordance with the laws of the State of New York,
excluding any conflicts or choice of law rule or principle that might otherwise
refer construction or interpretation of this Agreement to the substantive law
of another jurisdiction.  The Parties
agree to exclude the application to this Agreement of the United Nations
Convention on Contracts for the

 

4

 

International Sale of Goods. 
The Parties hereby irrevocably and unconditionally consent to the
exclusive jurisdiction of the courts of the State of New York and the United
States District Court for the Southern District of New York for any action,
suit or proceeding (other than appeals therefrom) arising out of or relating to
this Agreement, and agree not to commence any action, suit or proceeding (other
than appeals therefrom) related thereto except in such courts.  The Parties further hereby irrevocably and
unconditionally waive any objection to the laying of venue of any action, suit
or proceeding (other than appeals therefrom) arising out of or relating to this
Agreement in the courts of the State of New York or the United States District
Court for the Southern District of New York, and hereby further irrevocably and
unconditionally waive and agree not to plead or claim in any such court that
any such action, suit or proceeding brought in any such court has been brought
in an inconvenient forum.  Each Party
further agrees that service of any process, summons, notice or document by
registered mail to its address set forth in Section 20.6 of the Collaboration
Agreement, or any other lawful means, shall be effective service of process for
any action, suit or proceeding brought against it under this Agreement in any
such court.

 

15.         Construction.  Except where the context otherwise requires, wherever used, the
singular shall include the plural, the plural the singular, the use of any
gender shall be applicable to all genders and the word “or” is used in the
inclusive sense (and/or).  The captions
of this Agreement are for convenience of reference only and in no way define,
describe, extend or limit the scope or intent of this Agreement or the intent
of any provision contained in this Agreement. 
The term “including” as used herein shall mean including, without
limiting the generality of any description preceding such term.  The language of this Agreement shall be
deemed to be the language mutually chosen by the Parties and no rule of strict
construction shall be applied against either Party hereto.

 

16.         Counterparts.  This Agreement may be executed in counterparts, each of which
shall be deemed to be an original and together shall be deemed to be one and
the same agreement.  Copies of executed
counterparts of this Agreement transmitted by facsimile shall be considered original
executed counterparts provided receipt of such facsimile is confirmed.

 

5

 

IN WITNESS
WHEREOF, the Parties have caused this Agreement to be executed by their
respective duly authorized officers as of the day and year first above written.

 

	
   

  	
  ABGENIX, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (Signature)

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (Printed Name)

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (Title)

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  ASTRAZENECA UK LTD.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (Signature)

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (Printed Name)

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (Title)

  

 

6

 

EXHIBIT A TO
THE SUPPLEMENTARY XENOMOUSE® AGREEMENT

 

 

ABX Technology

 

[Confidential
treatment requested]

 

7

 

EXHIBIT B TO
THE SUPPLEMENTARY XENOMOUSE® AGREEMENT

 

 

Facilities

 

AstraZeneca Alderley Park, Macclesfield, Cheshire, SK10 4TF, United
Kingdom

 

AstraZeneca
Boston, 35 Gatehouse Drive, Waltham, MA, USA

 

8

SCHEDULE 14.2.1(A)

 

ABGENIX CORE PATENT RIGHTS

 

I.                                         Published
patents and patent applications that ABX owns or possesses an ownership
interest in related to its core technology:

 

	
  Subject Matter

  	
   

  	
  Representative
  Title

  	
   

  	
  Publication/Patent
  Family

  	
   

  
	
  [Confidential treatment requested]

  	
   

  
	
  [Confidential treatment requested]

  	
   

  	
  Generation of xenogeneic antibodies

  	
   

  	
  WO 91/10741

  AU 633698 B

  AU 7181491,

  CA 2050918

  DE 69120146D,

  DE 69120146T,

  EP 0463151A4

  EP 463151 B1

  ES 2087997T,

  HK 1007330,

  JP 3068180 B2

  JP 3068506 B2

  JP 3068507 B2

  JP 10146194

  JP 10155492

  JP 11239490

  JP 11239491

  JP 11243973

  JP 11262386

  JP 11262388

  JP 11262396

  JP 4504365T

  KR 203511 B1

  NO 20015332

  SG 48759

  US 5939598

  WO 91/10741

  	
   

  
	
  [Confidential treatment requested]

  	
   

  	
  Generation of xenogeneic antibodies

  	
   

  	
  WO 94/02602

  AU 675661 B

  AU 4781993,

  CA 2219486

  EP 0652950,

  	
   

  

 

 

SCHEDULE 14.2.1(A) (Continued)

 

	
  Subject Matter

  	
   

  	
  Representative
  Title

  	
   

  	
  Publication/Patent
  Family

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  FI 950277,

  JP 7509137T,

  NO 950244,

  NZ 255101

  US 6114598

  US 6162963

  	
   

  
	
  [Confidential treatment requested]

  	
   

  	
  Human antibodies derived from immunized xenomice

  	
   

  	
  WO 96/33735

  AU 4376400

  AU 5632296

  CA 2219361

  EP 0822830

  JP 11505523T

  US 6075181

  US 5939598

  	
   

  
	
  [Confidential treatment requested]

  	
   

  	
  Human antibodies derived from immunized xenomice

  	
   

  	
  WO 96/34096

  AU 2466895

  AU 5336100

  EP 082391

  US 6150584

  	
   

  
	
  [Confidential treatment requested]

  	
   

  	
  Transgenic mammals having human Ig loci VH and VK
  regions and antibodies therefrom

  	
   

  	
  WO 98/24893

  AU 2450102

  AU 5702298,

  EP 0942968

  JP 2001505059T

  KR 2000057347

  	
   

  
	
  [Confidential treatment requested]

  	
   

  	
  Transgenic animals for producing specific isotypes of human
  antibodies via non-cognate switch

  	
   

  	
  WO 00/76310

  AU 5474300,

  CA 2376299

  EP 1191839,

  JP 2003501103T

  	
   

  
	
  [Confidential treatment requested]

  	
   

  
	
  [Confidential treatment requested]

  	
   

  	
  Identification Of High Affinity Molecules By Limited Dilution
  Screening

  	
   

  	
  WO 03 48730

  	
   

  
	
  [Confidential treatment requested]

  	
   

  	
  Discovery Of Therapeutic Products

  	
   

  	
  WO 03/48729

  	
   

  
	
  [Confidential treatment requested]

  	
   

  	
  Antibody Categorization Based On Binding Characteristics

  	
   

  	
  WO 03/48731

  	
   

  

 

 

SCHEDULE 14.2.1(A) (Continued)

 

	
  Subject Matter

  	
   

  	
  Representative
  Title

  	
   

  	
  Publication/Patent
  Family

  	
   

  
	
  [Confidential treatment requested]

  	
   

  
	
  [Confidential treatment requested]

  	
   

  	
  Methods for the production of proteins with a desired function

  	
   

  	
  WO 92/2551

  CA 2390512

  EP 91914066.5

  US 562702

  	
   

  

 

II.                                     Patents
and patent applications that are licensed to ABX [Confidential treatment
requested]:

 

A.                                   Pursuant to the
License Agreement by and between the Medical Research Council and Cell Genesys,
Inc. dated March 29, 1994:

 

British Patent Application No. 8823869.6, filed October 12, 1988,
by Bruggemann, entitled “Production of Antibodies from Transgenic Animals,” and
assigned to the Medical Research Council and the Agricultural and Food Research
Council (including US Patent No. 5,545,807)

 

B.                                     Pursuant to the
Agreement between the Agricultural and Food Research Council Babraham Institute
and Cell Genesys, Inc. dated June 29, 1993:

 

British Patent Application No. 9119338.3, filed September 10,
1992, by Bruggemann, entitled “Yeast Artificial Chromosomes and their Use in
the Control of Gene Expression”, and assigned to the Agricultural and Food
Research Council and the Institute of Animal Physiology and Genetics Research
(including US Patent No. 5,776, 773 and 6,348,349)

 

C.                                     Pursuant to the
Material Transfer and License Agreement by and between Universtat Koln and Cell
Genesys, Inc. dated December 1, 1992:

 

German Patent Application No. P 42 28 162.8, filed August 25,
1992, by Rajewsky, entitled “Targeted Replacement of a Gene Without Endogenous
and Selectable Residual Sequences,” and assigned to Kölner Verein zur Förderung der Immunologie

 

D.                                    Pursuant to
Agreements between Dr. Tasuku Honjo and Japan Tobacco Inc. of
April 21, 1992 and April 28, 1993:

 

PCT Application No. PCT/JP93/00603, filed May 10, 1993, by Honjo
and Matsuda, entitled “Human Immunoglobulin VH Gene and DNA Fragment
Containing the Same,” and assigned to Japan Tobacco Inc. (including US Patent
No. 6,096,878)

 

E.                                      Pursuant to the
GenPharm Cross License

 

 

SCHEDULE 14.2.1(A) (Continued)

 

1.                                       U.S. Patent
Application Serial No. 07/574,748, filed August 29, 1990, by Kay and
Lonberg, entitled “Transgenic Non-Human Animals Capable of Producing
Heterologous Antibodies,” and assigned to GenPharm International, Inc.,
including (i) any continuations, continuations-in-part, patents of addition,
divisionals, reexamination certificates, reissues or extensions, including
supplemental protection certificates thereof, (ii) any patents issuing
from such application or upon an application under (i), and (iii) foreign
counterparts applied for, issued, or issuing on such application or any of (i)
or (ii).

 

2.                                       U.S. Patent
Application Serial No. 07/280,218, filed December 5, 1988, by Krimpenfort
and Berns, entitled “Transgenic Non-Human Animals Depleted in a Mature
Lymphocytic Cell-Type”, and assigned to GenPharm International, Inc., including
(i) any continuations, continuations-in-part, patents of addition,
divisionals, reexamination certificates, reissues or extensions, including
supplemental protection certificates thereof, (ii) any patents issuing from
such application or upon an application under (i), and (iii) foreign
counterparts applied for, issued, or issuing on such application or any of (i)
or (ii).

 

Patents believed to relate to this class include US Patent Nos.
[Confidential treatment requested]

 

3.                                       Pursuant to a
License Agreement dated June 15, 1989 between GenPharm International, Inc.
and the University of Utah Research Foundation, as amended by an Agreement dated
April 20, 1990:

 

U.S. Patent
Application Serial No. 07/397,707, filed August 22, 1989, by Capecchi and
Thomas, entitled “Cells and Non-Human Organisms Containing Predetermined
Genetic Modifications and Positive-Negative Selection Methods and Vectors for
Making Same”, and assigned to the University of Utah:

 

Patents
believed to relate to this class include US Patent Nos. [Confidential treatment
requested].

 

 

SCHEDULE 14.2.1(B)

 

AGREEMENTS BY WHICH THE CORE PATENT RIGHTS
ARE CONTROLLED

 

Japan Tobacco
Agreements:

 

•                                          Limited
Partnership Agreement dated June 12, 1991 between Cell Genesys, Xenotech,
Inc. and JP Immunotech USA Inc.

 

•                                          Amendment
No. 2 dated January 1, 1994 to Limited Partnership Agreement

•                                          Amendment
No. 3 dated July 1, 1995 to Limited Partnership Agreement

•                                          Amendment
No. 4 dated June 28, 1996 to Limited Partnership Agreement.

 

•                                          Joint
Venture Agreement dated June 12, 1991 between Cell Genesys and JT
Immunotech USA Inc., as amended

 

•                                          Amendment
No. 1 dated January 1, 1994 to Joint Venture Agreement.

•                                          Amendment
No. 2 dated June 28, 1996 to Joint Venture Agreement.

 

•                                          Limited
Partnership Interest and Stock Purchase Agreement between Abgenix, Inc. and JT
America Inc. made December 20, 1999.

 

•                                          Master
Research License and Option Agreement, dated June 28, 1996, between Cell
Genesys, Japan Tobacco and Xenotech LP

 

•                                          Amendment
to Master Research License and Option Agreement, dated November 1997,
between Cell Genesys, Japan Tobacco and Xenotech LP

•                                          Agreement
License and Option Agreement by and among Abgenix, Inc., Japan Tobacco Inc. and
Xenotech L.P. effective December 31, 1999.

 

•                                          Collaboration
Agreement, dated June 12, 1991, among Cell Genesys, JT Immunotech USA and
Xenotech L.P., as amended

 

•                                          Amendment
No. 1 dated June 30, 1993 to Collaboration Agreement

•                                          Amendment
No. 2 dated January 1, 1994 to Collaboration Agreement

•                                          Amendment
No. 3 dated July 1, 1995 to Collaboration Agreement

•                                          Amendment
No. 4 dated June 28, 1996 to Collaboration Agreement

•                                          Amendment
No. 5 dated November 1997 to Collaboration Agreement

•                                          Agreement
to Terminate the Collaboration Agreement by and among Abgenix, Inc., JT America
Inc., and Xenotech L.P. effective December 31, 1999.

 

 

SCHEDULE 14.2.1(B) (Continued)

 

•                                          Field
License, dated June 12, 1991, between Cell Genesys and JT Immunotech USA,
as amended

 

•                                          Amendment
No. 1 dated March 22, 1996 to Field License.

•                                          Amendment
No. 2 dated June 28, 1996 to Field License.

•                                          Amended
and Restated Field License by and among Abgenix, Inc., JT America Inc. and
Xenotech L.P. effective December 31, 1999.

 

•                                          Expanded
Field License, dated June 12, 1991, between Cell Genesys and JT Immunotech
USA, as amended

 

•                                          Amendment
No. 1 dated June 28, 1996 to Expanded Field License

•                                          Amendment
of the Expanded Field License by and among Abgenix, Inc., JT America Inc. and
Xenotech L.P. as effective December 31, 1999.

 

•                                          Technology
Exchange Agreement dated March 22, 1996, as amended, among Cell Genesys,
Inc., Japan Tobacco, Inc., and Xenotech

 

•                                          Amendment
of The Technology Exchange Agreement, effective June 28, 1996, made by and
among Cell Genesys, Inc., Japan Tobacco Inc. and Xenotech L.P.

•                                          Second
Amendment of The Technology Exchange Agreement, effective December 31,
1999, made by and among Abgenix, Inc., Japan Tobacco Inc. and Xenotech L.P.

 

•                                          License
Agreement by and between Abgenix, Inc. and Japan Tobacco Inc. effective
December 31, 1999

 

•                                          Agreements
between Dr. Tasuku Jonjo and Japan Tobacco, Inc. of April 21, 1992,
April 28, 1993, and April 21, 1997

 

Cell Genesys
Agreements:

 

•                                          Stock
Purchase and Transfer Agreement dated July 15, 1996 by and between Cell
Genesys and Abgenix

 

•                                          Patent
Assignment Agreement dated July 15, 1996 by Cell Genesys in favor of
Abgenix.

 

•                                          Gene
Therapy Rights Agreement effective as of November 1, 1997 between Abgenix
and Cell Genesys.

 

GenPharm
International Agreements:

 

•                                          Release
and Settlement Agreement dated March 26, 1997 among Cell Genesys, Abgenix,
Xenotech, L.P., Japan Tobacco Inc. and GenPharm International, Inc.

 

 

SCHEDULE 14.2.1(B) (Continued)

 

•                                          Cross
License Agreement effective as of March 26, 1997, among Cell Genesys,
Abgenix, Xenotech, L.P., Japan Tobacco Inc. and GenPharm International, Inc.

 

•                                          Interference
Settlement Procedure Agreement, effective as of March 26, 1997, among Cell
Genesys, Abgenix, Xenotech, L.P., Japan Tobacco Inc. and GenPharm
International, Inc.

 

•                                          License
Agreement dated June 15, 1989, as amended, between GenPharm and the
University of Utah Research Foundation (licensed under the GenPharm
Cross-license)

 

MRC Agreement:

 

•                                          License
Agreement, dated March 29, 1994, between Medical Research Council and Cell
Genesys

 

AFRC
Agreement:

 

•                                          Agreement
by and between the Agricultural and Food Research Council and Cell Genesys,
Inc. dated June 29, 1993

 

XenoMax/SLAM
Technology Agreements:

 

•                                          License
Agreement among BR Centre Limited, Ingenix Biomedical Inc. and Dr. John W.
Schrader, dated May 9, 1994

 

•                                          License
Agreement Amendment among BR Centre Limited, Ingenix Biomedical Inc. and
Dr. John W. Schrader, dated May 9, 1994

 

•                                          Assignment
Agreement among BR Centre Limited and The University of British Columbia
Foundation, dated March 10, 1998

 

•                                          Assignment
Agreement between The University of British Columbia Foundation and the
University of British Columbia dated June 25, 2001.

 

•                                          License
Termination and Technology Assignment Agreement between the University of
British Columbia and Abgenix Biopharma, Inc., dated August 2, 2001.

 

Other
Agreements:

 

•                                          License
Agreement dated June 14, 1994, between Zeneca Limited and Xenotech, LP

 

•                                          Material
Transfer and License Agreement by and between Universtat Koln and Cell Genesys,
Inc., dated December 1, 1992

 

•                                          License
Agreement dated August 1, 1991 between Washington University and Cell
Genesys, Inc.

 

 

SCHEDULE 14.2.1(B) (Continued)

 

•                                          Material
Release Agreement dated September 20, 1995 between Regents of University
of Michigan and Cell Genesys, Inc.

 

•                                          License
Agreement dated December 28, 1995 between E.I. DuPont de Nemours & Co.
and Xenotech

 

•                                          License
Agreement dated February 15, 1997 between Albert Einstein College of Medicine
of Yeshiva University and Xenotech

 

 

SCHEDULE 14.2.10 (First Sentence)

 

AGREEMENTS WITH RESPECTS TO PROPOSED ANTIGENS

 

	
  Antigen

  	
   

  	
  Agreement

  	
   

  
	
  [Confidential treatment requested]

  	
   

  	
  Cooperative Research and Development Agreement dated June 25,
  2001, between Abgenix and Public Health Service/National Center Institute
  (NCI Principal Investigator – Oppenheim)

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Amendment to Cooperative Research and Development Agreement between
  Abgenix and Public Health Service/National Cancer Institute (NCI Principal
  Investigator – Oppenheim), dated July 7, 2003

  	
   

  

 

 

SCHEDULE 14.2.10

 

EXISTING MULTI-ANTIGEN COLLABORATIONS

 

	
  Number of Existing Multi-Antigen Agreements

  	
   

  	
  11

  	
   

  
	
  [Confidential treatment requested]

  	
   

  	
  150

  	
   

  

 

 

SCHEDULE 14.2.11A

 

EXISTING COMMITTED ANTIGEN

 

	
  Target

  	
   

  	
  GenBank
  No.

  	
   

  
	
  [Confidential treatment requested]

  	
   

  	
  [Confidential treatment requested]

  	
   

  

 

 

SCHEDULE 14.2.11B

 

PARTIALLY COMMITTED ANTIGEN

 

	
  Common Name(s)

  	
   

  	
  GenBank
  Accession Number

  	
   

  
	
  [Confidential treatment requested]

  	
   

  	
  [Confidential treatment requested]

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