Document:

Exhibit 10.1

 

***Text
Omitted and Filed Separately

with
the Securities and Exchange Commission.

Confidential
Treatment Requested

Under 17 C.F.R. Sections 200.80(b)(4)

and
240.24b-2.

 

THIRD AMENDMENT

TO THE

COLLABORATIVE RESEARCH AND LICENSE AGREEMENT

 

THIS
THIRD AMENDMENT TO THE COLLABORATIVE RESEARCH AND LICENSE AGREEMENT (the
“Third Amendment”)
is made by and between SENOMYX, INC.
(“Senomyx”),
a Delaware corporation, having a principal place of business at 11099 North
Torrey Pines Road, La Jolla, California 92037, and KRAFT FOODS GLOBAL, INC., a Delaware corporation (“Kraft”) having
offices at 801 Waukegan Road, Glenview, IL 60025.

 

WHEREAS,
Senomyx and Kraft entered into that certain Collaborative Research and License
Agreement dated as of December 6, 2000, as amended by that certain First
Amendment dated May 2, 2002 and that certain Second Amendment dated April 29,
2005, (collectively, the “Agreement”);
and

 

WHEREAS
Senomyx and Kraft wish to amend the Agreement to extend the Collaborative
Period for the [***] Phase for an additional two (2) year period in the
manner set forth in this Third Amendment and otherwise to provide for certain
agreements by the parties as set forth herein (capitalized terms used but not
otherwise defined in this Third Amendment shall have the meanings given such
terms in the Agreement).

 

NOW,
THEREFORE, in consideration of the foregoing premises and of
the covenants, representations and agreements set forth below, the parties
hereby agree to amend the Agreement as follows:

 

1.             Section 3.3(B) of
the Agreement is hereby amended and restated in its entirety as follows:

 

“(B)  Product Commercialization Plan.  Within [***] of selection of the Selected
Compound, Kraft will prepare a detailed Product Commercialization Plan for
approval by the Steering Committee, which will be made a part of the minutes of
the Steering Committee.  The Product
Commercialization Plan will include commercially reasonable timelines (which if
commercially reasonable will provide for the commercialization of Products
within [***]) and levels of diligence necessary for Kraft to maintain the
respective co-exclusive and exclusive licenses, as provided for under Section 10
of the Agreement.”

 

***Confidential Treatment Requested

 

 

2.             Section 9.3.1
of the Agreement is hereby amended and restated in its entirety as follows:

 

“Royalty for
[***] Products.  Kraft will
pay to Senomyx the following earned royalties during the Royalty Term beginning
on the date that Patent Rights Controlled by Senomyx or its Affiliates arise
claiming the composition of matter, or manufacture (if such method of
manufacture is used by Kraft or Kraft’s manufacturer) or use of a Selected [***]
Compound that Kraft incorporates or has incorporated into a [***] Product made,
used, or sold by Kraft in the country covered by such Patent Rights and ending
on the date that such Patent Rights for such Selected [***] Compound (i) expire
or are canceled, (ii) are declared invalid or unenforceable by an
unreversed and unappealable decision of a court or other appropriate body of
competent jurisdiction, (iii) are admitted to be invalid or unenforceable
through reissue, disclaimer or otherwise, or (iv) are abandoned:

 

(A)                              With
respect to sales during the first one (1) year period following the date
of the First Commercial Sale of a [***] Product(s), Kraft will pay Senomyx a
royalty equal to [***] on total annual Net Sales of each [***] Product(s); and

 

(B)                                With
respect to sales after the one year anniversary of the First Commercial Sale of
a [***] Product(s), Kraft will pay Senomyx a royalty equal to [***] on total
annual Net Sales of each [***] Product(s).

 

Multi-Component [***] Product.  If a [***] Product in Field III is combined
and sold in the form of a multi-component product containing ingredients, which
ingredients themselves are not in Field III, then Kraft will be entitled to
adjust the royalties paid to Senomyx under Section 9.3.1 by adjusting the
Net Sales on which the royalties are based. 
In such event, the Net Sales base will be adjusted by the following
percentage: [***].”

 

3.             Section Section 9.5
of the Agreement is hereby amended and restated in its entirety as follows:

 

“9.5        Manufacturing and Capital
Credits.  Kraft may in its
sole discretion, manufacture or enter into supply and manufacturing agreements
with a mutually agreed upon Third Party regarding Selected Compounds; provided,
however, that Senomyx will have the right of first negotiation and refusal to
manufacture any such Selected Compounds, subject to provisions of cost, quality
and quantity.  At the request of Kraft,
Senomyx will grant a license to any Third Party hired by Kraft as necessary
solely to manufacture Selected Compound under this Agreement.  Senomyx will [***]. The parties agree that a
goal for the manufacturing cost of each Selected Compound is to be [***], which
is equivalent to [***].  If the
manufacturing cost of Selected Compound [***], then such costs [***].”

 

4.             The
following definitions of Appendix A of the Agreement are hereby amended and
restated herein. All other definitions in the Agreement will remain unchanged.

 

“Collaborative
Period” means (i) in the case of the [***] Phase the period
beginning on the Effective Date and ending three (3) years thereafter,
unless terminated earlier in

 

***Confidential Treatment Requested

 

 

accordance with Section 15;
(ii) in the case of the [***] Phase the period beginning on the Effective
Date and ending three (3) years thereafter, unless terminated earlier in
accordance with Section 15; and (iii) in the case of the [***] Phase,
the period beginning on the First Amendment Effective Date and ending July 30,
2007, unless terminated earlier in accordance with Section 15.

 

“Dessert
Category” means [***] desserts.

 

“[***]
Category” means [***].

 

“Field III”
means the [***] Category and the Dessert Category.

 

“Patent
Rights” means all of the patents and patent applications
described subsequently herein and the rights associated with all U.S. and
foreign (including regional authorities such as the European Patent Office)
utility, design, or provisional patents or patent applications, including any
continuation, continuation-in-part, or division thereof or any substitute
application therefore or equivalent thereof, and any patent issuing thereon,
including any reissue, reexamination or extension thereof and any confirmation
patent or registration patent or patent of additions based on any such patent.

 

“Regulatory
Approval Date” means the date in a particular country that a
regulatory approval is granted that will allow a Selected Compound(s) to be
sold in such country in the applicable Product.

 

5.             For
avoidance of doubt, during the two (2) year extension of the Collaborative
Period for the [***] Phase resulting from this Third Amendment, research
funding for the [***] Phase will continue at the annual rate of [***].

 

6.             Senomyx
has an existing collaboration with a Third Party for the discovery of compounds
that [***] in [***].  Senomyx agrees to
commence commercially reasonable efforts [***] and will continue such efforts [***]
to [***] from such Third Party [***] to the [***] and to amend this
Collaborative Research and License Agreement to [***] Compounds for use in the
[***] without any [***] other than [***] detailed herein for [***] Products.

 

7.             Subject
to prior written approval of Kraft, Senomyx will issue a press release to
announce the execution of this Third Amendment and the material terms.
Thereafter, Kraft and Senomyx may each disclose to Third Parties the
information contained in such press release without the need for further approval
by the other party.

 

8.             Except
as specifically amended by this Third Amendment, the terms and conditions of
the Agreement shall remain in full force and effect.

 

9.             This
Third Amendment will be governed by the laws of the State of California, as such
laws are applied to contracts entered into and to be performed entirely within
such State.

 

10.          This
Third Amendment may be executed in two or more counterparts, each of which
shall be deemed an original, but all of which together shall constitute one and
the same instrument.

 

***Confidential Treatment Requested

 

 

IN
WITNESS WHEREOF, the parties have executed this Third
Amendment effective as of July 29, 2005.

 

 

	
  KRAFT FOODS GLOBAL, INC.

  
	
   

  	
   

  
	
  By:

  	
  /s/ Jean E. Spence

  	
   

  
	
   

  	
   

  
	
  Title:

  	
   Executive Vice President

  	
   

  
	
   

  	
   

  
	
  Date:

  	
   7/29/05

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  SENOMYX, INC.

  
	
   

  	
   

  
	
  By:

  	
  /s/ Kent Snyder

  	
   

  
	
   

  	
   

  
	
  Title:

  	
   President and CEO

  	
   

  
	
   

  	
   

  
	
  Date:

  	
   7-29-05EXHIBIT 10.1

 

FORM
OF RETENTION AGREEMENT

 

This Agreement is entered into as of February 22, 2005
by and between Lenox, Incorporated, a New Jersey corporation (“Employer”) and                                                               
(“Employee”) as follows:

 

WHEREAS, Employer and Employee have previously entered
into a Retention Agreement providing incentive compensation for Employee in
order to promote continuity of Employer’s management and retention of Employee
as one of Employer’s key executives in the event of a Sale of Employer (as
defined herein); and

 

WHEREAS, Employer and Employee desire to amend and
restate the Retention Agreement in its entirety;

 

NOW, THEREFORE, Employer and Employee hereby agree
that the previous Retention Agreement issued in November, 2004 is revoked, and
further agree as follows:

 

1.             Definitions.

 

(a)           “Cause” means any of the following:

 

(1)           serious,
willful misconduct, dishonesty or disloyalty by Employee, directly related to
performance of Employee’s duties for Employer and likely to result in material
harm to the operations, financial condition or reputation of Employer;

 

(2)           Employee
is convicted of (or enters into a plea bargain admitting) a felony.

 

(b)           “Closing Date” means the date the Sale of
Employer is consummated.

 

(c)           “Effective Date” means the date set forth
at the beginning of this Agreement.

 

(d)           “Good Reason” means any of the following
occurring on or after the Closing Date:

 

(1)           there
is a material reduction of Employee’s title, job duties or responsibilities;

 

(2)           Employee’s
base annual salary is reduced by 5% or more below the base annual salary as of
the Effective Date;

 

(3)           Employee’s
principal place of work is relocated by a distance of 50 miles or more;

 

(4)           Employee
is required to work more than ten days per month outside of Employee’s current
principal place of work for a period of six consecutive months.

 

 

(e)           “Purchaser” means the person (or persons)
or entity (or entities) which becomes the owner of Employer or succeeds
Employer as the owner or operator of the business, operations and/or assets of
Employer as a result of the Sale of Employer.

 

(f)            “Sale of Employer” means the sale (whether
for cash, stock or otherwise) of at least a majority of the capital stock,
business, operations and/or assets of Employer, in a transaction or series of
transactions with a Purchaser which is not an affiliate of Employer immediately
prior to such transaction or series of transactions.

 

2.             Retention
Bonus.

 

(a)           Subject
to the terms and conditions of this Agreement, Employer will pay a “Retention Bonus” in the amount of $            
to Employee if Employee is employed by Employer on the Closing Date and
either

 

(1)           Employee
is employed by Employer, the Purchaser or one of their affiliates on the first
anniversary of the Closing Date;

 

(2)           Employer,
the Purchaser or their affiliate terminates Employee’s employment, other than
for Cause, prior to the first anniversary of the Closing Date (for which
purpose a transfer of employment within the group of Employer, Purchaser and
other affiliates of Purchaser will not be treated as a termination of
employment);

 

(3)           Employee
resigns with Good Reason prior to the first anniversary of the Closing Date; or

 

(4)           Employee,
while employed by Employer, the Purchaser or their affiliate, ceases employment
prior to the first anniversary of the Closing Date by reason of being “totally
disabled” (meaning Employee is unable to perform the material and substantial
duties of Employee’s regular occupation due to sickness or injury that is expected
to last one year or more), or by reason of Employee’s death.

 

(b)           If
the Retention Bonus becomes payable, it will be paid in one lump sum cash
payment within 30 days after the occurrence of the first applicable event
specified in Paragraph 2(a) above.

 

3.             Severance
Benefit.

 

(a)           If
the Retention Bonus becomes payable under the circumstances described in
Paragraph 2(a)(2) or 2(a)(3) above, then Employer shall also pay a “Severance Benefit” to Employee in
accordance with this Paragraph 3.

 

(b)           The
cash amount of the Severance Benefit will be equal to twelve months of Employee’s
base salary calculated on the basis of the higher of (i) Employee’s
annualized salary rate as of the Effective Date, or (ii) Employee’s
annualized salary rate in effect at the date of termination.  Employer may pay the Severance Benefit in
installments in accordance with its normal payroll practices over the specified
number of months following termination.

 

2

 

(c)           The
Severance Benefit will also include continuation of Employee’s health care
coverage(s) in effect at the time of termination (subject to such changes in
coverage as are implemented with respect to all participants), at no cost to
Employee, for the same number of months specified in (b) above.

 

(d)           The
Severance Benefit will also include up to six months of executive outplacement
services with a national provider such as DBM, with the cost not to exceed
$20,000.

 

(e)           For
executives provided with a company-leased vehicle for their dedicated use under
the Company Automobile Program for key executives, the Severance Benefit shall
also include the continuing use of the existing Company Automobile Program
vehicle for three months following termination under the program provisions in
effect immediately prior to the date of termination.  At the end of that three month period, the
executive must either return the vehicle to the Employer or purchase it at the
Employer’s then current depreciated value.

 

4.             Duties,
Obligations and Responsibilities of Employee.

 

Employee shall devote best efforts to faithfully
discharge Employee’s duties, obligations and responsibilities on behalf of
Employer as those duties, obligations and responsibilities have been performed
in the past or as may be subsequently modified in writing by Employer and
Employee.  In addition, Employee shall
devote best efforts to assist Employer and its current shareholder in
finalizing the Sale of Employer to a Purchaser.

 

5.             Expiration.

 

Employee understands that Employer and its shareholder
are not obligated to enter into a Sale of Employer.  If no Sale of Employer has been consummated
on or before September 30, 2005, this Agreement will expire and neither party
will have any further obligation under this Agreement.

 

6.             Non-Exclusivity.

 

The terms of this Agreement are in addition to, and
not in lieu of, the right of Employee to receive any base annual salary,
retirement or welfare benefit, perquisite, bonus or other payment provided by
Employer to Employee prior to the Sale of Employer, except for such rights as
Employee may have specifically waived in writing.  Amounts which are vested benefits or which
Employee is otherwise entitled to receive under any benefit plan or program provided
by Employer shall be payable in accordance with the terms of such plan or
program.

 

7.             Confidentiality.

 

Employee acknowledges that similar arrangements are
being made only with select key employees and are not being offered to all of
the employees of Employer.  Employee will
not disclose the existence or terms of this Agreement with other employees,
other than Employer’s Chief Executive Officer, Chief Human Resources Officer or
Chief Legal Officer.

 

3

 

8.             Miscellaneous
Provisions.

 

(a)           All
payments under this Agreement will be subject to all applicable tax and
withholding requirements.

 

(b)           No
payment pursuant to this Agreement will be subject in any manner to
anticipation, alienation, sale, transfer, assignment, pledge, encumbrance or
charge prior to actual receipt thereof by Employee; and any attempt to so
anticipate, alienate, sell, transfer, assign, pledge, encumber or charge prior
to such receipt shall be void.  Employer
shall not be liable in any manner for, or subject to, the debts, contracts,
liabilities, engagements or torts of Employee or any other person entitled to
any payment under this Agreement.

 

(c)           Nothing
contained herein shall confer upon Employee the right to be retained in the
service of Employer or any affiliate thereof, nor limit the right of Employer
or any affiliate thereof to discharge or otherwise deal with Employee without
regard to the existence of this Agreement.

 

(d)           Employer’s
obligations under this Agreement shall at all times be entirely unfunded and no
provision shall at any time be made with respect to segregating assets of
Employer or any affiliate thereof for payment of any amounts hereunder.  Neither Employee nor any other person shall
have any interest in any particular assets of Employer or any affiliate thereof
by reason of the right to receive amounts under this Agreement and any Employee
or any other person shall have only the rights of a general unsecured creditor
of Employer or any affiliate thereof with respect to any rights under this
Agreement.

 

IN WITNESS WHEREOF,
Employer and Employee have executed and delivered this Revised Retention
Agreement as of the Effective Date.

 

	
   

  	
  LENOX
  INCORPORATED

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Employee:

  	
   

  
					

 

4

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