Document:

QuickLinks
 -- Click here to rapidly navigate through this document

  

[*] = 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.

 
 

Exhibit 10.9    
    

RESTATED AND AMENDED

LICENSE AGREEMENT
  (BWH #A5288) 

        Effective
as of January 1, 1999 ("Effective Date"), The Brigham and Women's Hospital, Inc., a Massachusetts non-profit organization having a business address at
75 Francis Street, Boston, MA 02115 ("BWH") and Corgentech Inc., a Delaware corporation having a primary place of business at Suite 460, 601 Gateway Boulevard, South San Francisco, California
94080, ("LICENSEE"), agree as follows: 

        1.    BACKGROUND    

        1.1    BWH
has an assignment of an invention, as hereinafter defined, entitled THERAPEUTIC USE OF CIS-ELEMENT DECOYS IN VIVO from Dr. Victor Dzau
("Invention") and the Licensed Patent(s), as hereinafter defined, which may issue to such Invention. 

        1.2    BWH
desires to have the Invention perfected and marketed at the earliest possible time in order that products resulting therefrom may be available for public use and
benefit. 

        1.3    LICENSEE
desires a license under Licensed Patent(s) to develop, manufacture, use, and sell Licensed Product(s) in the field of use of all therapeutic and preventative
applications. 

        1.4    The
Parties now wish to amend, restate and replace the License Agreement effective January 1, 1999 (BWH#2703) as twice amended, with the terms and conditions of
this Restated and Amended License Agreement (BWH#5288). 

        2.    DEFINITIONS    

        2.1    "Licensed
Patent(s)" means [*], any divisions, continuations, or
continuations-in-part of the foregoing applications (except that continuations-in-part shall be included only to the extent they claim subject matter
disclosed in the foregoing applications); any patents issuing from the foregoing applications; any extensions, reexaminations or reissues of such patents; and all foreign equivalents of the foregoing
patent applications and patents. 

        2.2    "License
Product(s)" means any product or part thereof in the Licensed Field of Use, the manufacture, use, or sale of which: 

        (a)   Is
covered by a valid claim of an issued, unexpired Licensed Patent(s) directed to the Invention(s). A claim of an issued, unexpired Licensed Patent(s) shall be presumed
to be valid unless and until it has been held to be invalid by a final judgment of a court of competent jurisdiction from which no appeal can be or is taken; or 

        (b)   Is
covered by any claim being prosecuted in a pending application directed to the Invention(s); or 

        (c)   Is
supported by the Product Data Package. 

        2.3    "Net
Sales" means the gross revenue derived by LICENSEE and/or sublicensee(s) from Licensed Product(s), whether or not assembled (and without excluding therefrom any
components or subassemblies thereof, whatever their origin and whether or not patent impacted), less the following 

1

 

items
but only insofar as they actually pertain to the disposition of such Licensed Product(s) by LICENSEE or sublicensee(s), are included in such gross revenue, and are separately billed: 

        (a)   Import,
export, excise and sales taxes, and custom duties; 

        (b)   Costs
of insurance, packing, and transportation from the place of manufacture to the customer's premises or point of installation; 

        (c)   Costs
of installation at the place of use; 

        (d)   Credit
for returns, allowances, or trades; and 

        (e)   Rebates
or discounts actually paid to, credited to or mandated by any governmental agency (or branch thereof) or any third party payor. 

        2.4    "Licensed
Field of Use" means all therapeutic and prophylactic applications. 

        2.5    "Licensed
Territory" means worldwide. 

        2.6    "Exclusive"
means that, subject to Article 4, BWH shall not grant further licenses in the Licensed Territory in the Licensed Field of Use. 

        2.7    "Product
Data Package" means the following information and data directly related to the Licensed Product in the tangible possession or control of BWH as of the Effective
Date: (a) the regulatory documents for the Phase I/II investigating E2F Decoy for patients undergoing [*], and
(b) clinical protocols, data, and reports regarding such trial. 

        3.    GRANT    

        3.1    BWH
hereby grants and LICENSEE hereby accepts a license to the Licensed Patents and Product Data Package in the Licensed Field of Use to make, have made, use, sell,
offer for sale and import Licensed Product(s) in the Licensed Territory. 

        3.2    Said
license is Exclusive, including the right to sublicense pursuant to Article 13, in the Licensed Field of Use for a term commencing as of January 1,
1999 and ending upon the expiration of the last to expire of Licensed Patents. 

        3.3    BWH
shall have the right to practice the Invention(s) for its own bona fide research, including sponsored research and collaborations. BWH shall have the right to
publish any information included in Licensed Patent(s). 

        3.4    Dr. Dzau
and BWH agree to transfer the regulatory documents for the Product Data Package to Corgentech. Corgentech may use Product Data Package for its commercial
purposes. 

        4.    GOVERNMENT RIGHTS    

        This
Agreement is subject to all of the terms and conditions of Title 35 United States Code Sections 200 through 204, including an obligation that Licensed Product(s) sold or produced in
the United States be "manufactured substantially in the United States," and LICENSEE agrees to take all reasonable action necessary on its part as LICENSEE to enable BWH to satisfy its obligation
thereunder, relating to Invention(s). 

        5.    DILIGENCE    

        5.1    As
an inducement to BWH to enter into this Agreement, LICENSEE agrees to use all reasonable efforts and diligence to proceed with the development, manufacture, and sale
or lease of Licensed Product(s) and to diligently develop markets for the Licensed Product(s). Unless LICENSEE has initiated Phase III Clinical Trials prior to June 1, 2002, LICENSEE agrees
that BWH may terminate this Agreement. BWH may terminate this Agreement if LICENSEE or a sublicensee(s) has not sold Licensed Product(s) for any period of one (1) year after initial sale of
Licensed Product(s). 

2

 

        5.2    Progress
Report—On or before [*] of each year until LICENSEE markets a Licensed
Product(s), LICENSEE shall make a written annual report to BWH covering the preceding year ending [*], regarding the progress of
LICENSEE toward commercial use of Licensed Product(s). Such report shall include, as a minimum, information sufficient to enable BWH to satisfy reporting requirements of the U.S. Government and for
BWH to ascertain progress by LICENSEE toward meeting the diligence requirements of this Article 5. 

        6.    ROYALTIES    

        6.1    LICENSEE
agrees to pay to BWH a noncreditable, nonrefundable license issue royalty of [*] upon
signing this Agreement. In addition, LICENSEE agrees to pay to BWH [*] upon the signing of Amendment #1 to this Agreement. 

        6.2    Beginning
January 1, 2001, and [*], LICENSEE also shall pay to BWH a  [*]. Said [*] payments are nonrefundable,
but they are
creditable against earned royalties to the extent provided in Paragraph 6.5. 

        6.3    In
addition, LICENSEE shall pay BWH earned royalties on Net Sales, subject to Paragraph 13.5(b) as follows: 

[*] of Net Sales. 

        6.4    In
addition, LICENSEE agrees to pay BWH the following non-creditable milestone payments: 

        (a)   If  [*] of the Invention(s) are  [*]: 

          (i)  Prior
to or on [*], then a  [*] milestone payment is due; or 

         (ii)  Subsequent
to [*], then a  [*] milestone payment is due; and 

        (b)   [*] is due upon [*]. 

        The
above milestone payments shall be made to BWH within [*] after the  [*] or [*], as appropriate. 

        6.5    Payments
under Paragraph 6.2 of this Agreement shall be an offset to LICENSEE against up to  [*] of each earned royalty payment which LICENSEE would be required to pay pursuant to Paragraph 6.3 
[*]. 

        6.6    If
this Agreement is not terminated in accordance with other provisions hereof, LICENSEE shall be obligated to pay royalties hereunder until the latter of: 

        (a)   Seven
years, if no Licensed Patent(s) issues; or 

        (b)   For
so long as LICENSEE, by its activities would, but for the license granted herein, infringe a valid claim of an unexpired Licensed Patent(s) of BWH covering said
activity. LICENSEE shall be obligated to pay royalties on all Licensed Product(s) that are either sold or produced under the license granted in Article 3, regardless of whether such Licensed
Product(s) are produced prior to the Effective Date of this Agreement or sold after the expiration of the Licensed Patent(s). 

        6.7    The
royalty on sales in currencies other than U.S. Dollars shall be calculated using the appropriate foreign exchange rate for such currency quoted by the Bank of
America (San Francisco) foreign exchange desk, on the close of business on the last banking day of each calendar quarter. Royalty payments to BWH shall be in U.S. Dollars. All non-U.S.
taxes related to royalty payments shall be paid by LICENSEE and are not deductible from the payments due BWH. 

        6.8    Within
[*] after receipt of  [*], LICENSEE shall [*] in connection with  [*] after the Effective Date. Upon request from BWH, LICENSEE agrees to  [*]. 

3

 

        6.9    Subject
to Paragraph 6.8, as applicable, LICENSEE may select patent counsel reasonably acceptable to BWH to prosecute and maintain Licensed Patents for the
benefit of BWH. BWH and LICENSEE shall be copied simultaneously by the patent counsel on all patent prosecution or maintenance correspondence that concerns Licensed Patents. LICENSEE shall direct such
prosecution and BWH will have the opportunity to comment prior to any prosecution or maintenance action involving Licensed Patents. If LICENSEE proposes to abandon any Licensed Patent, or any claim of
a Licensed Patent, without the possibility of pursuing the subject matter of the abandoned claim at a later time, it shall first provide  [*] advance written notice of such intent to BWH and, if
requested, shall meet with officials of BWH within  [*] of such notice to discuss the rationale for proposing to abandon the Licensed Patent or claim. If the parties agree that
such Licensed Patent or claim should be abandoned, the matter shall be deemed resolved. If the parties do not agree that such Licensed Patent or claim should be abandoned, then LICENSEE shall either:
(1) continue to prosecute the patent application or patent claim, or maintain the patent at issue; or (2) request BWH to assume responsibility for prosecution of such patent application,
patent claim in a divisional application, or maintenance of such patent and LICENSEE shall lose rights in the abandoned Licensed Patent or claim, as the case may be. 

        7.    ROYALTY REPORTS, PAYMENTS, AND ACCOUNTING    

        7.1    Quarterly
Earned Royalty Payment and Report—Beginning with the first sale of a Licensed Product(s), LICENSEE shall make written reports (even if there are no
sales) and earned royalty payments to BWH within [*] after the end of each calendar quarter. This report shall state the number,
description, and aggregate Net Sales of Licensed Product(s) during such completed calendar quarter, and resulting calculation pursuant to Paragraph 6.3 of earned royalty payment due BWH for
such completed calendar quarter. Concurrent with the making of each such report, LICENSEE shall include payment due BWH of royalties for the calendar quarter covered by such report. An example of such
a report is provided in Exhibit A. 

        7.2    LICENSEE
also agrees to make a written report to BWH within [*] after the expiration of the
license pursuant to Paragraph 3.2. LICENSEE shall continue to make reports pursuant to the provisions of this Paragraph 7.2 concerning royalties payable in accordance with
Article 6 in connection with the sale of Licensed Product(s) after expiration of the license, until such time as all such Licensed Product(s) produced under the license have been sold or
destroyed. Concurrent with the submittal of each post-termination report, LICENSEE shall pay BWH all applicable royalties. 

        7.3    Accounting—LICENSEE
agrees to keep and maintain records for a period of [*] showing
the manufacture, sale, use, and other disposition of products sold or otherwise disposed of under the license herein granted. Such records will include general ledger records showing cash receipts and
expenses, and records which include production records, customers, serial numbers, and related information in sufficient detail to enable the royalties payable hereunder by LICENSEE to be determined.
LICENSEE further agrees to permit its books and records to be examined by BWH from time to time to the extent necessary to verify reports provided for in Paragraphs 7.1 and 7.2. Such examination is to
be made by BWH or its designee, at the expense of, except in the event that the results of the audit reveal an underreporting of royalties due of  [*] or more, then the audit costs shall be paid by
LICENSEE. 

        8.    NEGATION OF WARRANTIES    

        8.1    Nothing
in this Agreement is or shall be construed as: 

        (a)   A
warranty or representation by BWH as to the validity or scope of any Licensed Patent(s); 

4

 

        (b)   A
warranty or representation that anything made, used, sold, or otherwise disposed of under any license granted in this Agreement is or will be free from infringement of
patents, copyrights, and other rights of third parties; 

        (c)   An
obligation to bring or prosecute actions or suits against third parties for infringement, except to the extent and in the circumstances described in
Article 12; 

        (d)   Granting
by implication, estoppel, or otherwise any licenses or rights under patents or other rights of BWH or other persons other than Licensed Patent(s), regardless of
whether such patents or other rights are dominant or subordinate to any Licensed Patent(s). 

        8.2    Except
as expressly set forth herein, BWH MAKES NO WARRANTIES, EXPRESS OR IMPLIED, AS TO ANY INVENTION OR PRODUCT CONCEIVED, DISCOVERED, LICENSED OR DEVELOPED UNDER THIS
LICENSE AGREEMENT. THERE ARE NO EXPRESS OR IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OF ANY SUCH INVENTION OR PRODUCT, OR THAT THE USE OF LICENSED PRODUCT(S) WILL NOT
INFRINGE ANY PATENT OR OTHER RIGHTS. BWH SHALL NOT
BE LIABLE FOR ANY CONSEQUENTIAL OR OTHER DAMAGES SUFFERED BY LICENSEE, ANY SUBLICENSEE OR ANY OTHERS RESULTING FROM ANY SUCH INVENTION OR PRODUCT. 

        9.    INDEMNITY    

        9.1    (a)    The
LICENSEE shall indemnify, defend and hold harmless BWH and its trustees, officers, medical and professional staff, employees, and agents and their
respective successors, heirs and assigns (the "Indemnitees") against any liability, damage, loss, or expense (including reasonable attorneys' fees and expenses of litigation) incurred by or imposed
upon the Indemnitees or any one of them in connection with any claims, suits, actions, demands or judgments arising out of any theory of product liability (including, but not limited to, actions in
the form of tort, warranty, or strict liability) concerning any product, process or service made, used or sold pursuant to any right or license granted under this Agreement. 

        (b)   LICENSEE
agrees, at its own expense, to provide attorneys reasonably acceptable to BWH to defend against actions brought or filed against any party indemnified hereunder
with respect to the subject of indemnity contained herein, [*]. 

        (c)   Beginning
at the time as any such product, process or service is being commercially distributed or sold (other than for the purpose of obtaining regulatory approvals) by
LICENSEE or by a sublicensee, AFFILIATE or agent of LICENSEE, LICENSEE shall, at its sole cost and expense, procure and maintain comprehensive general liability insurance in amounts not less than  [*]
per incident and [*] annual aggregate and naming the
Indemnities as additional insureds. During clinical trials of any such product, process or service, LICENSEE shall, at its sole cost and expense, procure and maintain comprehensive general liability
insurance in such equal or lesser amount as BWH shall require, naming the Indemnities as additional insureds. Such comprehensive general liability insurance shall provide (i) product liability
coverage and (ii) broad form contractual liability coverage for LICENSEE's indemnification under this Agreement. If LICENSEE elects to self-insure all or part of the limits
described above (including deductibles or retentions which are in excess of [*]) such self-insurance program must be
acceptable to BWH and the Risk Management Foundation of the Harvard Medical Institutions, Inc. The minimum amounts of insurance coverage required shall not be construed to create a limit of
LICENSEE's liability with respect to its indemnification under this Agreement. 

        (d)   LICENSEE
shall provide BWH with written evidence of such insurance upon request of BWH. LICENSEE shall provide BWH with written notice at least  [*] prior to the cancellation, non-renewal or material change in
such insurance; if LICENSEE does not obtain
replacement 

5

 

insurance
providing comparable coverage within such [*] period BWH shall have the right to terminate this Agreement effective at
the end of such [*] period without notice or any additional waiting periods. 

        (e)   LICENSEE
shall maintain such comprehensive general liability insurance beyond the expiration or termination of this Agreement during (i) the period that any
product, process, or service, relating to, or developed pursuant to, this Agreement is being commercially distributed or sold by LICENSEE or by a sublicensee, affiliate or agent of LICENSEE and
(ii) a reasonable period after the period referred to in (e) (i) above which in no event shall be less than [*]. 

        10.    MARKING    

        Prior
to the issuance of patents on the Invention(s), LICENSEE agrees to mark Licensed Products (or their containers or labels) made, sold, or otherwise disposed of by it under the
license granted in this Agreement with the words "Patent Pending," and following the issuance of one or more patents, with the numbers of the Licensed Patent(s). 

        11.    BWH NAMES AND MARKS    

        LICENSEE
agrees not to identify BWH or Harvard Medical School in any promotional advertising or other promotional materials to be disseminated to the public or any portion thereof or to
use the name of any BWH or Harvard Medical School faculty member, employee, or student or any trademark, service mark, trade name, or symbol of BWH or Harvard Medical School, or that is associated
with any of them, without BWH's prior written consent. 

        12.    INFRINGEMENT BY OTHERS: PROTECTION OF PATENTS    

        12.1    LICENSEE
shall promptly inform BWH of any suspected infringement of any Licensed Patent(s) by a third party. During the Exclusive period of this Agreement, BWH and
LICENSEE each shall have
the right to institute an action for infringement of the Licensed Patent(s) against such third party in accordance with the following: 

        (a)   If
BWH and LICENSEE agree to institute suit jointly, the suit shall be brought in both their names, the out-of-pocket costs thereof shall be
borne [*], and any recovery or settlement shall be shared  [*]. LICENSEE and BWH shall agree to the manner in which they shall exercise control over such
action. BWH may, if it so
desires, also be represented by separate counsel of its own selection, the fees for which counsel shall be paid by BWH; 

        (b)   In
the absence of agreement to institute a suit jointly, [*] may institute suit, and, at its
option, join [*] as a plaintiff. If [*] decides to
institute suit, then it shall notify [*] in writing. [*]
failure to notify [*] in writing, within [*] after the
date of the notice, that it will join in enforcing the patent pursuant to the provisions hereof, shall be and be deemed conclusively to be  [*] assignment to [*] of all rights, causes of action,
and damages resulting from any such alleged infringement. [*] shall bear the entire cost of such litigation and shall be
entitled to retain [*] of any recovery or settlement; and 

        (c)   In
the absence of agreement to institute a suit jointly and if [*] notifies  [*] that it has decided not to join in or institute a suit, as provided in
(a) or (b) above,  [*] may institute suit. [*] shall bear  [*] of such litigation, including
expenses incurred by  [*]. Any recovery in excess of litigation costs will be shared with  [*] as follows:
 

          (i)  Any
payment [*] will be  [*] and [*] and; 

         (ii)  Any
payment which [*] will be  [*]. 

LICENSEE
and BWH agree to negotiate in good faith an appropriate [*] for any non-cash settlement or
non-cash cross-license. 

6

 

        12.2    Should
either BWH or LICENSEE commence a suit under the provisions of Paragraph 12.1 and thereafter elect to abandon the same, it shall give timely notice to the
other party who may, if it so desires, continue prosecution of such suit, provided, however, that the sharing of expenses and any recovery in such suit shall be as agreed upon between BWH and
LICENSEE. 

        13.    SUBLICENSE(S)    

        13.1    LICENSEE
may grant sublicense(s) during the Exclusive period, upon BWH's consent which shall not be unreasonably withheld. 

        13.2    If
LICENSEE is [*] for which there  [*], LICENSEE will, at BWH's request, [*]

        13.3    Any
sublicense(s) granted by LICENSEE under this Agreement shall be subject and subordinate to terms and conditions of this Agreement, except: 

        (a)   Sublicense
terms and conditions shall reflect that any sublicensee(s) may grant sublicenses, [*];
and 

        (b)   The
earned royalty rate specified in the sublicense(s) may be at higher rates than the rates in this Agreement. 

        Any
such sublicense(s) also shall expressly include the provisions of Articles 7, 8, and 9 for the benefit of BWH and provide for the transfer of all obligations, including the payment
of royalties specified in such sublicense(s), to BWH or its designee, in the event that this Agreement is terminated. 

        13.4    LICENSEE
agrees to provide a copy of any sublicense granted pursuant to this Article 13 within  [*] of its execution. 

        13.5    (a)    LICENSEE
shall pay to BWH— 

	1.
	[*] of Sublicensee Revenues received by LICENSEE from a Third Party in consideration for the grant of a
sublicense under such rights if such Licensed Product [*] at the time that the sublicense is granted; or

	2.
	[*] of Sublicensee Revenues received by LICENSEE from a Third Party in consideration for the grant of a
sublicense under such rights if such Licensed Product [*] at the time that the sublicense is granted;

	

	less  [*]. 

        (b)   Notwithstanding
Paragraph 6.3, if LICENSEE grants a sublicense to Licensed Product and receives Sublicense Revenue in consideration of such sublicense, then
LICENSEE shall pay to BWH an earned royalty on Net Sales equal to [*] of Net Sales by LICENSEE and its sublicensees in such
sublicense territory. 

        (c)   Subject
to Paragraph 13.5(b), Sublicensee Revenues shall mean the following payments received by LICENSEE from a Sublicensee in connection with a Sublicense and
the Licensed Products for which such Sublicense is granted: (i) [*] payments in cash;
(ii) [*]; and (iii) [*]. It shall not
include sharing of, or reimbursement for, [*]. 

        13.6    Subject
to Paragraphs 13.1, 13.2, 13.3, and 13.4, LICENSEE may grant [*] sublicenses or
cross-licenses provided LICENSEE [*] BWH [*]. 

        13.7    The
parties acknowledge that LICENSEE will develop or require access to technologies other than the Licensed Patent Rights and Product Data Package to develop and
commercialize Licensed Products, and that it will receive payments from its sublicensees in consideration both for the grant of a sublicense under this Agreement as well as the grant to such
sublicensee of other licenses, sublicenses and similar rights by LICENSEE. Accordingly, LICENSEE shall have the right, in calculating amounts due to BWH under Paragraph 13.5(a), to determine in
good faith which portion of 

7

 

Sublicense
Revenues is attributable to technology covered by the Licensed Patent Rights and the Product Data Package, and which portion is attributable to rights to other third party technologies
contributing to products sold. Prior to distributing Sublicense Revenues, LICENSEE shall inform BWH of any apportionment calculation and the reasonable basis for such apportionment calculation. BWH
shall [*], other than as set forth in Paragraph 13.8, that it determines in good faith  [*] and BWH shall [*]. If the parties  [*], then [*]; except that  [*]. In no event [*]
. 

        13.8    In
applying the foregoing, the parties agree that as of September 19, 2003, that E2F decoy products are covered primarily by intellectual property rights
licensed from each of BWH hereunder and Stanford University pursuant to an agreement between LICENSEE and the Leland Stanford Junior University dated January 1, 1999 (as amended and restated),
and that for such products consisting of the compound designated "E2F decoy" and a pressurized nucleotide delivery device substantially similar to that existing as of April 23, 2003, but that
contain no other material component, LICENSEE shall designate [*] of Sublicense Revenues of such products by LICENSEE or
sublicensees as attributable to Licensed Patents, absent a basis for an alternative apportionment. 

        14.    TERMINATION    

        14.1    LICENSEE
may terminate this Agreement by giving BWH notice in writing at least thirty (30) days in advance of the effective date of termination selected by
LICENSEE. 

        14.2    BWH
may terminate this Agreement if LICENSEE: 

        (a)   Is
in default in payment of royalty, other payments, or providing of reports; 

        (b)   Is
in breach of any provision hereof; or 

        (c)   Provides
any false report; 

and
LICENSEE fails to remedy any such default, breach, or false report within thirty (30) days after written notice thereof by BWH. 

        14.3    Surviving
any termination or expiration are: 

        (a)   LICENSEE's
obligation to pay royalties or other payments accrued or accruable; 

        (b)   Any
cause of action or claim of LICENSEE or BWH, accrued or to accrue, because of any breach or default by the other party; and 

        (c)   The
provisions of Paragraph 6.6(b), Articles 7, 8, and 9 and any other provisions that by their nature are intended to survive. 

        15.    ASSIGNMENT    

        This
Agreement shall be binding upon and shall inure to the benefit of the Parties hereto and their respective successors and assigns; provided, however, that LICENSEE may assign any of
its rights, duties or obligations hereunder with the prior written consent of BWH, which consent may not be unreasonably withheld, except that no prior written consent shall be required in the event
that a Third Party acquires substantially all of the assets or outstanding shares of, or merges with, LICENSEE. 

        16.    ARBITRATION    

        16.1    Any
controversy arising under or related to this Agreement, and any disputed claim by either party against the other under this Agreement excluding any dispute relating
to patent validity or infringement arising under this Agreement, shall be settled by arbitration in accordance with the Licensing Agreement Arbitration Rules of the American Arbitration Association. 

        16.2    Upon
request by either party, arbitration will be by a third party arbitrator mutually agreed upon in writing by LICENSEE and BWH within thirty (30) days of such
arbitration request. Judgment 

8

 

upon
the award rendered by the arbitrator shall be final and nonappealable and may be entered in any court having jurisdiction thereof. 

        16.3    The
parties shall be entitled to discovery in like manner as if the arbitration were a civil suit in the Massachusetts Superior Court. The Arbitrator may limit the
scope, time and/or issues involved in discovery. 

        16.4    Any
arbitration shall be held at Boston, Massachusetts, unless the parties hereto mutually agree in writing to another place. 

        17.    NOTICES    

        All
notices under this Agreement shall be deemed to have been fully given when done in writing and deposited in the United States mail, registered or certified, and addressed as follows: 

To
BWH: 

Corporate
Sponsored Research and Licensing

The Brigham and Women's Hospital, Inc.

75 Francis Street

Boston, MA 021115

Attention: Director 

To
LICENSEE: 

Corgentech Inc.

Suite 460, 401 Gateway Boulevard

South San Francisco, California 94080

Attention: President 

        Either
party may change its address upon written notice to the other party. 

        18.    WAIVER    

        None
of the terms of this Agreement can be waived except by the written consent of the party waiving compliance. 

        19.    APPLICABLE LAW    

        This
Agreement shall be governed by the laws of the State of Massachusetts applicable to agreements negotiated, executed and performed wholly within Massachusetts. 

9

 

        IN
WITNESS WHEREOF, the parties hereto have executed this Agreement in duplicate originals by their duly authorized officers or representatives. 

	THE BRIGHAM AND WOMEN'S HOSPITAL, INC.
	

Signature	
 	

/s/  BRIAN N. HICKS      

	Name	 	Brian N. Hicks

	Title	 	Director Corporate Sponsored Research and Licensing

	Date	 	10/1/03

	

CORGENTECH INC.
	

Signature	
 	

/s/  JOHN P. MCLAUGHLIN      

	Name	 	John P. McLaughlin

	Title	 	CEO

	Date	 	10/1/03

[*] = 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.

10

 

Exhibit A  

EXAMPLE ROYALTY AND COMMERCIALIZATION PROGRESS REPORTS  

ROYALTY REPORT  

	1)
	COMPANY:

	2)
	PRODUCT:

	3)
	LICENSE
EFFECTIVE DATE AND AGREEMENT NO.:

	4)
	REPORTING
PERIOD:

	5)
	UNITS
SOLD (breakdown by country of different royalty rates apply):

	6)
	NET
SALES:

	7)
	ROYALTY
RATE:

	8)
	ROYALTY
PAYMENT TO BRIGHAM (list any credits that apply): 

COMMERCIALIZATION PROGRESS REPORT

	1)
	COMPANY:

	2)
	PRODUCT:

	3)
	LICENSE
EFFECTIVE DATE AND AGREEMENT NO.:

	4)
	STATUS
OF DEVELOPMENT:

	5)
	DATES
AT WHICH CONTRACT MILESTONES ARE EXPECTED TO BE MET: 

[*] = 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.

11

QuickLinks

Exhibit 10.9QuickLinks
 -- Click here to rapidly navigate through this document

 
 

Exhibit 10.10    
    

COLLABORATION AGREEMENT  

 BY AND BETWEEN  

 BRISTOL-MYERS SQUIBB COMPANY  

 AND  

 CORGENTECH INC.  

 
 TABLE OF CONTENTS  

	 
	 
	 
	 	PAGE

	ARTICLE 1    DEFINITIONS	 	2
	 	1.1	"Act"	 	2
	 	1.2	"Affiliate"	 	2
	 	1.3	"Alliance Managers"	 	2
	 	1.4	"Allowable Expenses"	 	2
	 	1.5	"Annual Plan and Budget"	 	2
	 	1.6	"Approval"	 	2
	 	1.7	"ANDA"	 	2
	 	1.8	"AVG"	 	2
	 	1.9	"BMS Know-How"	 	3
	 	1.10	"BMS Patent"	 	2
	 	1.11	"BMS Technology"	 	3
	 	1.12	"Business Day"	 	3
	 	1.13	"BWH License"	 	3
	 	1.14	"CABG"	 	3
	 	1.15	"Call Center"	 	3
	 	1.16	"CE Marking"	 	3
	 	1.17	"Clinical Costs"	 	3
	 	1.18	"Commercialize"	 	3
	 	1.19	"Committee"	 	3
	 	1.20	"Competing Product"	 	3
	 	1.21	"Confidential Information"	 	3
	 	1.22	"Control"	 	3
	 	1.23	"Co-Promote"	 	4
	 	1.24	"Co-Promotion Term"	 	4
	 	1.25	"Co-Promotion Territory"	 	4
	 	1.26	"Corgentech Core Technology"	 	4
	 	1.27	"Corgentech Know-How"	 	4
	 	1.28	"Corgentech Patents"	 	4
	 	1.29	"Corgentech Technology"	 	4
	 	1.30	"Development Costs"	 	4
	 	1.31	"Development Plan"	 	5
	 	1.32	"Diligent Efforts"	 	5
	 	1.33	"Disclosure Letter"	 	5
	 	1.34	"Distribution Costs"	 	5
	 	1.35	"Dollars" or "$"	 	5
	 	1.36	"Drug Approval Application"	 	5
	 	1.37	"E2F Decoy"	 	5
	 	1.38	"EMEA"	 	5
	 	1.39	"Equity Agreements"	 	5
	 	1.40	"EU"	 	5
	 	1.41	"Existing Third Party License Agreements"	 	5
	 	1.42	"FDA"	 	5
	 	1.43	"Field"	 	6
	 	1.44	"Final Product"	 	6
	 	1.45	"FTE"	 	6
	 	1.46	"FTE Cost"	 	6
	 	1.47	"GAAP"	 	6
	 	 	 	 	 

i

 

	 	1.48	"Generic Product"	 	5
	 	1.49	"Good Manufacturing Practice"	 	6
	 	1.50	"Information"	 	6
	 	1.51	"Initial Approval"	 	6
	 	1.52	"Initial Regulatory Approval"	 	6
	 	1.53	"Intermediate"	 	6
	 	1.54	"Inventions"	 	6
	 	1.55	"Japan"	 	7
	 	1.56	"Joint Commercialization Committee" or "JCC"	 	7
	 	1.57	"Joint Development and Regulatory Committee" or "JDC"	 	7
	 	1.58	"Joint Finance Committee" or "JFC"	 	7
	 	1.59	"Joint Inventions"	 	7
	 	1.60	"Joint Manufacturing Committee" or "JMC"	 	7
	 	1.61	"Joint Patent"	 	7
	 	1.62	"Joint Steering Committee" or "JSC"	 	7
	 	1.63	"Koseisho"	 	7
	 	1.64	"Launch"	 	7
	 	1.65	"Lead Development and Regulatory Party"	 	7
	 	1.66	"Lead Manufacturing Party"	 	7
	 	1.67	"Lead Marketing Party"	 	7
	 	1.68	"Licensed Device"	 	7
	 	1.69	"Licensed Product"	 	7
	 	1.70	"Major European Countries"	 	7
	 	1.71	"Manufacturing Costs"	 	7
	 	1.72	"Manufacturing Plan and Budget"	 	8
	 	1.73	"Marketing Plan and Budget"	 	8
	 	1.74	"Medical Liaisons"	 	8
	 	1.75	"Net Sales"	 	8
	 	1.76	"NDA"	 	9
	 	1.77	"Other Licensed Product"	 	9
	 	1.78	"PABG"	 	9
	 	1.79	"Patent"	 	9
	 	1.80	"Patent Costs"	 	9
	 	1.81	"Phase I Clinical Trial"	 	9
	 	1.82	"Phase II Clinical Trial"	 	9
	 	1.83	"Phase I/II Clinical Trial"	 	9
	 	1.84	"Phase III Clinical Trial"	 	9
	 	1.85	"Phase IIIB Clinical Trial"	 	10
	 	1.86	"Phase IV Clinical Trial"	 	10
	 	1.87	"Pre-Launch Marketing Plan and Budget"	 	10
	 	1.88	"Previously Disclosed"	 	10
	 	1.89	"Product-Specific Corgentech Patent"	 	10
	 	1.90	"Profit or Loss"	 	10
	 	1.91	"QA"	 	10
	 	1.92	"QC"	 	10
	 	1.93	"Quarter"	 	10
	 	1.94	"Regulatory Authority"	 	10
	 	1.95	"Regulatory Expenses"	 	10
	 	1.96	"Regulatory Working Group" or "RWG"	 	11
	 	1.97	"Royalty Term"	 	11
	 	 	 	 	 

ii

 

	 	1.98	"Royalty Territory"	 	11
	 	1.99	"Royalty-Bearing Sales"	 	11
	 	1.100	"Sales and Marketing Costs"	 	11
	 	1.101	"Sales Representative"	 	12
	 	1.102	"Semi-Annual Period"	 	12
	 	1.103	"Sole Invention"	 	12
	 	1.104	"Specifications"	 	12
	 	1.105	"Stanford License"	 	12
	 	1.106	"Supply Chain Management"	 	12
	 	1.107	"Territory"	 	12
	 	1.108	"Third Party"	 	12
	 	1.109	"Third Party Royalties"	 	13
	 	1.110	"Trademark Costs"	 	13
	 	1.111	"Transcription Factor Decoy"	 	13
	 	1.112	"Valid Claim"	 	13
	 	1.113	"Vialed Product"	 	13
	 	1.114	"Working Group"	 	13
	 	1.115	"Year"	 	13
	 	1.116	Additional Defined Terms	 	13
	

ARTICLE 2    MANAGEMENT	
 	

14
	 	2.1	General	 	14
	 	2.2	Joint Steering Committee (JSC)	 	15
	 	2.3	Joint Development and Regulatory Committee (JDC)	 	15
	 	2.4	Joint Commercialization Committee (JCC)	 	17
	 	2.5	Joint Manufacturing Committee (JMC)	 	18
	 	2.6	Joint Finance Committee (JFC)	 	20
	 	2.7	General Committee Membership and Procedures	 	21
	 	2.8	Alliance Managers	 	22
	 	2.9	Collaboration Guidelines	 	23
	 	2.10	General Overview of Accounting	 	23
	 	2.11	Compliance with Law	 	24
	

ARTICLE 3    DEVELOPMENT AND REGULATORY	
 	

24
	 	3.1	Current Status of Development of Licensed Product	 	24
	 	3.2	Development Plan and Annual Plan and Budget	 	24
	 	3.3	Overruns with Respect to Development Costs	 	25
	 	3.4	Lead Development and Regulatory Party	 	25
	 	3.5	Clinical and Regulatory Matters in the Co-Promotion Territory; Recalls and Withdrawals	 	25
	 	3.6	Clinical and Regulatory Matters in the Royalty Territory; Recalls and Withdrawals	 	27
	 	3.7	Development Diligence	 	28
	 	3.8	Costs of Development; [*]	 	28
	 	3.9	Development of Additional Indications or Other Licensed Products within the Field	 	30
	 	3.10	Regulatory Exclusivity	 	30
	 	3.11	Coordination of Clinical Strategy	 	30
	 	3.12	Pharmacovigilance; Inquiries	 	31
	 	3.13	Right to Audit Third Parties	 	32
	 	3.14	Notice of Investigation or Inquiry	 	32
	 	 	 	 	 

iii

 

	

ARTICLE 4    COMMERCIALIZATION IN ROYALTY TERRITORY	
 	

32
	 	4.1	Lead Marketing Party	 	32
	 	4.2	Diligence for Commercialization of Licensed Product in Royalty Territory	 	32
	 	4.3	Sales and Distribution in Royalty Territory	 	32
	

ARTICLE 5    COMMERCIALIZATION IN CO-PROMOTION TERRITORY	
 	

33
	 	5.1	Principles of Co-Promotion	 	33
	 	5.2	Diligence of Commercialization of Licensed Product in Co-Promotion Territory	 	33
	 	5.3	Marketing Plan and Budget; Pre-Launch Marketing Plan and Budget	 	33
	 	5.4	Overruns with Respect to Sales and Marketing Costs	 	34
	 	5.5	Sales Efforts and Sales Representative Deployment For Licensed Product in the Co-Promotion Territory	 	34
	 	5.6	Training in Co-Promotion Territory	 	35
	 	5.7	Co-Promotion Advertising and Promotional Materials	 	36
	 	5.8	Sales and Distribution in Co-Promotion Territory	 	37
	 	5.9	Incentive Plans for Sales Representatives	 	37
	 	5.10	Sales Representatives.	 	38
	 	5.11	Use of Third Parties in the Co-Promotion Territory.	 	40
	

ARTICLE 6    FINANCIAL TERMS	
 	

40
	 	6.1	Initial Payment	 	40
	 	6.2	Equity Investment	 	40
	 	6.3	Milestone Payments	 	40
	 	6.4	Profit or Loss in the Co-Promotion Territory	 	42
	 	6.5	Calculation and Payment of Profit or Loss Share	 	42
	 	6.6	Royalty to Corgentech	 	43
	 	6.7	Royalty Adjustment	 	44
	 	6.8	Term of Royalties and Profit Sharing	 	45
	 	6.9	Royalty Payments and Reports	 	45
	 	6.10	Taxes	 	46
	 	6.11	Blocked Currency	 	46
	 	6.12	Sublicenses	 	46
	 	6.13	Non-Monetary Consideration	 	46
	 	6.14	Cross Border Transactions	 	46
	 	6.16	Payments to or Reports by Affiliates	 	47
	 	6.17	Adjustment of FTE Rates	 	47
	 	6.18	Annual License Maintenance Payments	 	47
	

ARTICLE 7    MANUFACTURE AND SUPPLY	
 	

47
	 	7.1	Current Status of Manufacture of Licensed Product	 	47
	 	7.2	General Manufacturing Structure; Manufacturing Plan and Budget	 	47
	 	7.3	Manufacturing Responsibilities	 	48
	 	7.4	Specifications and Terms of Supply	 	49
	 	7.5	Shortage of Supply	 	49
	 	7.6	Inventory	 	49
	 	7.7	Manufacturing Costs and Fees	 	49
	 	7.8	Term of Supply Obligation	 	50
	 	7.9	Label	 	50
	

ARTICLE 8    REPRESENTATIONS AND COVENANTS	
 	

50
	 	8.1	Mutual Representations and Warranties	 	50
	 	8.2	Manufacturing Representations and Warranties	 	51
	 	 	 	 	 

iv

 

	 	8.3	No Debarment	 	51
	 	8.4	Corgentech	 	51
	 	8.5	DISCLAIMER	 	53
	

ARTICLE 9    RECORDS AND AUDIT	
 	

53
	 	9.1	Information Disclosure	 	53
	 	9.2	Records and Audit	 	53
	 	9.3	Publications	 	54
	

ARTICLE 10    LICENSES AND OTHER RIGHTS	
 	

54
	 	10.1	License Grants to BMS	 	54
	 	10.2	License Grant to Corgentech	 	55
	 	10.3	Additional License to BMS	 	55
	 	10.4	Third Party Technology	 	55
	 	10.5	Sublicense Rights	 	56
	 	10.6	Exclusivity; Competing Product	 	57
	 	10.7	Negative Covenants	 	58
	 	10.8	Exclusive Rights	 	58
	 	10.9	No Implied Licenses	 	58
	 	10.10	Bankruptcy	 	58
	

ARTICLE 11    INTELLECTUAL PROPERTY	
 	

59
	 	11.1	Inventions	 	59
	 	11.2	Patent Prosecution	 	60
	 	11.3	Infringement Defense	 	61
	 	11.4	Infringement by Third Parties in the Co-Promotion Territory	 	62
	 	11.5	Infringement by Third Parties in the Royalty Territory	 	63
	 	11.6	Patent Marking	 	64
	 	11.7	Product Trademarks	 	64
	 	11.8	Other Proprietary Trademarks	 	64
	 	11.9	Infringement of Trademarks	 	64
	

ARTICLE 12    CONFIDENTIALITY	
 	

65
	 	12.1	Treatment of Confidential Information	 	65
	 	12.2	Publicity	 	66
	 	12.3	Securities Filings	 	67
	 	12.4	Termination of Prior Agreement	 	67
	 	12.5	Patient Information	 	67
	

ARTICLE 13    EXPORT CONTROL	
 	

67
	 	13.1	Authority	 	67
	

ARTICLE 14    TERM AND TERMINATION	
 	

67
	 	14.1	Term	 	67
	 	14.2	Voluntary Termination of Agreement by BMS	 	67
	 	14.3	Termination For Breach	 	68
	 	14.4	Licenses and Royalties Upon Termination	 	68
	 	14.5	Other Effects of Termination of Licenses or of the Agreement	 	70
	 	14.6	Survival	 	72
	

ARTICLE 15    INDEMNIFICATION	
 	

72
	 	15.1	Indemnification in the Royalty Territory	 	172
	 	15.2	Indemnification in the Co-Promotion Territory	 	73
	 	 	 	 	 

v

 

	 	15.3	Claims for Indemnification	 	74
	 	15.4	Insurance	 	74
	

ARTICLE 16    DISPUTE RESOLUTION	
 	

75
	 	16.1	Disputes	 	75
	 	16.2	Arbitration	 	75
	 	16.3	Jurisdiction	 	76
	

ARTICLE 17    MISCELLANEOUS	
 	

76
	 	17.1	Nonsolicitation of Employees	 	76
	 	17.2	Entire Agreement; Amendment	 	77
	 	17.3	Force Majeure	 	77
	 	17.4	Notices	 	77
	 	17.5	Consents Not Unreasonably Withheld, Delayed or Conditioned	 	78
	 	17.6	Maintenance of Records	 	78
	 	17.7	Assignment	 	78
	 	17.8	Performance by Affiliates and Local Operating Entities	 	79
	 	17.9	Counterparts	 	79
	 	17.10	Severability	 	79
	 	17.11	Ambiguities	 	79
	 	17.12	Headings	 	79
	 	17.13	Standstill	 	79
	 	17.14	No Consequential or Punitive Damages	 	80
	 	17.15	Governing Law	 	80
	 	17.16	No Waiver	 	80

[*] = 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.

vi

   [*] = 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 AGREEMENT  

        THIS COLLABORATION AGREEMENT (the "Agreement") is made by and
between CORGENTECH INC., a Delaware corporation having its principal place of business at 650 Gateway Boulevard, South San Francisco, CA 94080
("Corgentech") and BRISTOL-MYERS SQUIBB COMPANY, a Delaware corporation headquartered at 345 Park
Avenue, New York, New York 10154 ("BMS"), effective as of the date signed by the last Party to sign below (the "Effective
Date"). Corgentech and BMS are sometimes referred to herein individually as a "Party" and collectively as the
"Parties." 

RECITALS  

        WHEREAS, Corgentech is a biotechnology company engaged in the research, development and commercialization of
pharmaceutical products consisting of transcription factor decoy molecules delivered to various tissues using proprietary devices and other technologies; 

        WHEREAS, Corgentech is developing a proprietary transcription factor decoy known as the "E2F Decoy" and proprietary devices for delivering
such decoy to vascular tissue for the prevention of graft failure, restenosis and atherosclerosis; 

        WHEREAS, BMS is a worldwide, research-based pharmaceutical company, engaged in the discovery, development, manufacturing and marketing of
new therapies and treatment programs that can improve people's health and extend their lives; 

        WHEREAS, BMS and Corgentech desire to collaborate in the development and commercialization of the E2F Decoy and related delivery devices
for the prevention of graft failure, restenosis,
atherosclerosis, and such other human diseases and conditions as may be mutually agreed upon by the Parties in accordance with this Agreement; 

        WHEREAS, Corgentech desires to appoint BMS its exclusive distributor for products including the E2F Decoy and related delivery devices in
the United States, subject to Corgentech's right to co-promote such product as provided herein; 

        WHEREAS, Corgentech and BMS desire to co-promote products including the E2F Decoy and related delivery devices in the United
States for such purposes, and BMS desires to obtain an exclusive license to commercialize such products outside of the United States for such purpose; and 

        WHEREAS, Corgentech desires to grant to BMS rights to such products on the terms set forth below, and BMS desires to receive such rights
on the terms set forth below. 

1

 

        NOW, THEREFORE, in consideration of the foregoing premises and the mutual covenants contained herein and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows: 

ARTICLE 1  

 DEFINITIONS  

        The following terms shall have the following meanings as used in this Agreement: 

        1.1    "Act" means the United States Food, Drug and Cosmetic Act, as amended. 

        1.2    "Affiliate" means an individual, trust, business trust, joint venture,
limited liability company, partnership, corporation, association or any other entity which (directly or indirectly) is controlled by, controls or is under common control with a Party. For the purposes
of this definition, the term "control" (including, with correlative meanings, the terms "controlled by"
and "under common control with") as used with respect to a Party, shall mean the possession, directly or indirectly, of the power to
direct, or cause the direction of, the management or policies of such person or entity, whether through the ownership of voting securities, by contract or otherwise. 

        1.3    "Alliance Managers" shall have the meaning assigned in
Section 2.8. 

        1.4    "Allowable Expenses" means, subject to Sections 3.2(b), 3.5(h), 3.8(h),
5.4, 6.5(d), 6.18, 7.7, 10.4(c), 11.4(c), 11.9 and 15.2 the following expenses relating to Commercialization of Licensed Product in the Co-Promotion Territory: (a) Manufacturing
Costs of Licensed Product intended for commercial sale in the Co-Promotion Territory, (b) Distribution Costs, (c) Third Party Royalties (other than Third Party Royalties  [*] with respect to
the Commercialization of Licensed Product in the Co-Promotion Territory or the manufacture of
Licensed Product sold in the Co-Promotion Territory, (d) Sales and Marketing Costs, (e) Patent Costs (to the extent not otherwise reimbursed under Section 11.4(c)),
(f) Trademark Costs (to the extent not otherwise reimbursed under Section 11.9(c)), and (g) Regulatory Expenses. The components of Allowable Expenses shall be calculated in
accordance with the applicable definition thereof and the applicable terms of this Agreement, and consistent with the relevant plans and budgets approved from time to time. 

        1.5    "Annual Plan and Budget" shall have the meaning assigned in
Section 3.2. 

        1.6    "Approval" means: (a) in the Co-Promotion Territory,
receipt from the FDA of approval to market a Licensed Product; and (b) in the Royalty Territory, approval from the applicable Regulatory Authority in a given country or countries to market a
Licensed Product in such country or countries, including receipt of pricing/reimbursement approval, where applicable. 

        1.7    "ANDA" means an Abbreviated New Drug Application, or equivalent thereof
outside of the United States. 

        1.8    "AVG" means arterial-venous grafts, typically composed of a synthetic
material, that are implanted into end stage renal disease patients to connect arterial and venous vessels so as to provide an access conduit for hemodialysis. 

        1.9    "BMS Know-How" means Information which (a) BMS
discloses to Corgentech under this Agreement, (b) is within the Control of BMS, and (c) is necessary or useful in the development, manufacture, use or sale of Licensed Product.
Notwithstanding anything herein to the contrary, BMS Know-How shall exclude BMS Patents. 

        1.10    "BMS Patent" means the rights granted by any governmental authority
under a Patent that covers a method, apparatus, material or article of manufacture necessary or useful in the research (to the extent included in the Development Plan), development, manufacture, use
or sale of Licensed 

2

 

Product,
and that is Controlled by BMS during the term of this Agreement, including without limitation BMS' interest, if any, in any Joint Patents. 

        1.11    "BMS Technology" means the BMS Patents and BMS Know-How. 

        1.12    "Business Day" means a day that is not a Saturday, Sunday or a day on
which banking institutions in New York, New York are required by law to remain closed. 

        1.13    "BWH License" means the License Agreement between Corgentech (as Caber
Corp.) and The Brigham and Women's Hospital, Inc. (BWH#A5288) dated January 1, 1999, as amended and restated. 

        1.14    "CABG" means coronary artery bypass grafts, typically composed of
saphenous veins (although other vessels can be used), that are implanted into patients having one or more occluded or stenosed coronary arteries and that serve to bypass such occlusion or stenosis and
to provide blood flow to otherwise ischemic tissue. 

        1.15    "Call Center" means the customer support center established by the
Parties under the direction of the JCC in cooperation with the RWG, in the Co-Promotion Territory. 

        1.16    "CE Marking" means the letters "CE" which a manufacturer affixes to
certain products for access to certain European markets to indicate that the manufacturer has conformed with all the obligations required by the European Medical Devices Directive 93/42/EEC and other
applicable directives. The letters "CE" are an abbreviation of a French phrase "Conformité Européenne." 

        1.17    "Clinical Costs" means the FTE Costs (charged in accordance with
Section 3.8(f)) and out-of-pocket costs incurred by a Party or any of its Affiliates in accordance with GAAP after the Effective Date during the term of and pursuant to
this Agreement (which costs may include costs accrued in accordance with GAAP [*] services and/or supplies to  [*] to the extent [*] by Corgentech in connection with
(i) Phase I, Phase I/II, Phase II and Phase III Clinical Trials of a Licensed Product [*] and (ii) Phase IIIB
Clinical Trials [*]. Subject to the foregoing, Clinical Costs shall include, without limitation, such costs in connection with
the following activities: 

        (a)   the preparation for and conduct of clinical trials (except for related Manufacturing Costs otherwise included in
Development Costs); 

        (b)   data collection and analysis, and report writing; and 

        (c)   clinical laboratory work. 

Clinical
Costs shall not include costs incurred [*] in connection with  [*]. 

        1.18    "Commercialize" means to promote, market, distribute, sell and provide
product support for a product, and "Commercializing" and "Commercialization" shall be interpreted
accordingly. 

        1.19    "Committee" means the Joint Steering Committee, Joint Development and
Regulatory Committee, Joint Commercialization Committee, Joint Manufacturing Committee or Joint Finance Committee. 

        1.20    "Competing Product" means, on a
country-by-country basis, with respect to any country in the Territory any pharmaceutical product that,  [*] and that either (a) [*]for any of the
 [*] Licensed Products [*] in such country in the Field,
or (b) if known to the Party that controls such product, [*] such country in any of the  [*] Licensed Products [*]
 in such country in the Field  [*] than [*] of Licensed Products in such country
[*]. 

        1.21    "Confidential Information" shall have the meaning assigned such term in
Section 12.1. 

        1.22    "Control" means, with respect to any Information or intellectual
property right, possession by a Party of the ability to grant the right to access or use, or to grant a license or a sublicense to, such 

3

 

Information
or intellectual property right as provided for herein without violating the terms of any agreement or other arrangement with any Third Party. 

        1.23    "Co-Promote" means to promote jointly Licensed Product
through BMS' and Corgentech's respective sales forces under a single trademark in the Co-Promotion Territory. 

        1.24    "Co-Promotion Term" shall have the meaning assigned in
Section 6.8(b). 

        1.25    "Co-Promotion Territory" means the United States (including
its territories and possessions). For clarity, Puerto Rico is considered part of the Co-Promotion Territory. 

        1.26    "Corgentech Core Technology" means products, processes, methods,
devices, compositions, technologies and other inventions (whether or not patentable) [*] for: (a) the treatment,
prevention or amelioration of diseases or conditions by means of [*]; (b) the  [*]; and (c) [*].

        1.27    "Corgentech Know-How" means Information which
(a) Corgentech discloses to BMS under this Agreement and (b) is within the Control of Corgentech. Corgentech Know-How shall exclude Corgentech Patents. 

        1.28    "Corgentech Patents" means the rights granted by any governmental
authority under a Patent that covers the composition of, method of using or method of making Intermediate, E2F Decoy, Licensed Device, Vialed Product, Final Product or Licensed Product or any other
method, apparatus, material or article of manufacture useful in the research (to the extent included in any Development Plan), development, manufacture, use or sale of Intermediate, E2F Decoy,
Licensed Device, Vialed Product, Final Product or Licensed Product and that is Controlled by Corgentech during the term of this Agreement, including without limitation Corgentech's interest in any
Joint Patent. 

        1.29    "Corgentech Technology" means the Corgentech Patents and the Corgentech
Know-How. 

        1.30    "Development Costs" means, subject to Sections 3.2(b), 3.3, 3.8, 7.7 and
15.2(a), the FTE Costs (charged in accordance with Section 3.8(f)) and out-of-pocket costs incurred by a Party or any of its Affiliates in accordance with GAAP after the
Effective Date during the term of and pursuant to this Agreement (which costs may include(i) costs accrued in accordance with GAAP  [*] services and/or supplies to [*]
, to the extent  [*] and (ii) [*]) that are specifically
identifiable or reasonably allocable to the development activities for a Licensed Product and that are [*] of such Licensed
Product in the Co-Promotion Territory or in the EU, including without limitation [*] for the
Co-Promotion Territory or the EU. Development Costs shall include amounts paid by a Party or any of its Affiliates to Third Parties involved in development of Licensed Product but shall
exclude [*]. Subject to the foregoing, Development Costs shall include, without limitation, such costs in connection with the
following activities: 

        (a)   nonclinical costs such as toxicology and formulation development, test method development, delivery system development,
stability testing, quality assurance and quality control development, and statistical analysis; 

        (b)   Clinical Costs; 

        (c)   Regulatory Expenses relating to adverse event reporting relating to clinical trials (other than Phase IV Clinical Trials)
for a given indication to the extent incurred prior to [*]; 

        (d)   (i) Manufacturing Costs for (A) Licensed Products for  [*] and (B) the [*] involving a
Licensed Product
(with the [*] for Licensed Products), and
(ii) [*] costs and expenses of [*], in each case
only to the extent in connection with [*] in the Co-Promotion Territory or the EU; 

        (e)   [*] incurred in connection with  [*] to the extent [*]
is to be included in  [*]; and 

        (f)    development of the [*] for Licensed Product,  [*]; 

4

 

all
(other than [*]) to the extent consistent with the Development Plan and Annual Plan and Budget provided for in
Article 3. 

        1.31    "Development Plan" shall have the meaning assigned in
Section 3.2. 

        1.32    "Diligent Efforts" means the performance of obligations in a sustained
manner consistent with the efforts a Party devotes to a product of similar market potential, profit potential or strategic value resulting from its own research efforts, based on conditions then
prevailing. Diligent Efforts requires that: (a) a Party promptly assign responsibility for such obligations to specific employee(s) who are held accountable for progress and monitor such
progress on an on-going basis, (b) a Party set and consistently seek to achieve specific, meaningful and measurable objectives for carrying out such obligations, and (c) a
Party consistently make and implement decisions and allocate resources designed to advance progress with respect to such objectives. 

        1.33    "Disclosure Letter" means the written letter or memorandum delivered by
Corgentech and/or BMS to the other contemporaneously with the execution of this Agreement. 

        1.34    "Distribution Costs", to the extent  [*], means, [*], the FTE Costs and
out-of-pocket costs incurred by a Party or any of its Affiliates in accordance with GAAP after the Effective Date during the term of and pursuant to this Agreement, that are
specifically identifiable or reasonably allocable (as agreed to by the JMC from time to time) to the distribution of a Licensed Product to a Third Party in the Co-Promotion Territory,
including: 

        (a)   handling and transportation to fulfill orders (excluding such costs, if any, treated as a deduction in the definition of
Net Sales); 

        (b)   customer services, including order entry, billing and adjustments, inquiry and credit and collection; and 

        (c)   direct cost of storage and distribution of Licensed Product. 

        1.35    "Dollars" or "$" means
the legal tender of the United States of America. 

        1.36    "Drug Approval Application" means an application for Approval required
before commercial sale or use of a Licensed Product in a regulatory jurisdiction, including without limitation an NDA, a Marketing Authorization Application filed in the European Union
("MAA"), or a New Drug Application filed in Japan ("JNDA"). 

        1.37    "E2F Decoy" means (a) Corgentech's proprietary Transcription
Factor Decoy that has (i) the [*] that is [*] and
(ii) [*] E2F transcription factor, thereby [*],
and (b) any other Transcription Factor Decoy that [*]. An E2F Decoy may be  [*]. 

        1.38    "EMEA" means the European Agency for the Evaluation of Medicinal
Products, or any successor agency thereto. 

        1.39    "Equity Agreements" means (a) the Series D Preferred Stock
Purchase Agreement, (b) the Amended and Restated Investor Rights Agreement, (c) the Amended and Restated Right of First Refusal and Co-Sale Agreement, and (d) the
Amended and Restated Voting Agreement, each by and among Corgentech and the parties named therein (including BMS) and dated as of the Effective Date. 

        1.40    "EU" means the European Union, as its membership may be altered from
time to time, and any successor thereto. 

        1.41    "Existing Third Party License Agreements" shall have the meaning
assigned in Section 6.6(e). 

        1.42    "FDA" means the United States Food and Drug Administration, and any
successor agency thereto. 

5

 

        1.43    "Field" means all human and animal uses, including without limitation
the prevention, treatment or control of graft disease in human CABG, PABG, AVG and other bypass graft or access conduit procedures. 

        1.44    "Final Product" means Vialed Product and Licensed Device that is
formulated, packaged, finished, labeled and approved for distribution in a country in the Territory. 

        1.45    "FTE" means the equivalent of the work of one (1) employee full
time for one (1) Year (consisting of at least a total of [*] hours per Year) of work directly related to the development
and Commercialization of Licensed Product, or any other activities contemplated under this Agreement. No additional payment shall be made with respect to any person who works more than  [*] hours per
year, and any person who devotes less than  [*] hours per Year shall be treated as an FTE on a pro-rata basis upon the  [*]. 

        1.46    "FTE Cost" means the cost, based on the FTE rate(s) applicable to a
Party's FTEs, which rates, as of the Effective Date, are those Previously Disclosed. Such rates shall be adjusted subsequently in accordance with Section 6.17 and may also be adjusted by mutual
written agreement. 

        1.47    "GAAP" means generally accepted accounting principles in the United
States of America. 

        1.48    "Generic Product" for a given country means a pharmaceutical product
that (a) [*] the [*] as are  [*] Licensed Product and (b) is [*]
 for  [*] for which [*] in such country (whether based on  [*], or otherwise).

        1.49    "Good Manufacturing Practice" means current good manufacturing practices
for pharmaceuticals as described in regulations promulgated by the FDA, or an equivalent regulatory agency in a foreign country or jurisdiction. 

        1.50    "Information" means (a) techniques and data relating to the
research (to the extent included in the Development Plan), development, manufacture, use or sale of Licensed Product, including, but not limited to, inventions, practices, methods, knowledge,
know-how, skill, experience, test data including pharmacological, toxicological and clinical test data, analytical and quality control data, regulatory submissions, correspondence and
communications, marketing, pricing, distribution, cost, sales, manufacturing, patent and legal data or descriptions, and (b) compositions of matter, devices, articles of manufacture, assays and
biological, chemical or physical materials relating to development, manufacture, use or sale of Licensed Product. 

        1.51    "Initial Approval" means the first approvals, licenses, registrations,
CE Marking or authorizations of any national, supra-national (e.g., the FDA, the EMEA or Koseisho), state or local regulatory agency, department, bureau, commission, council or other governmental
entity, sufficient for the manufacture, distribution, use and sale of Licensed Product in a regulatory jurisdiction in accordance with applicable laws  [*]. 

        1.52    "Initial Regulatory Approval" means the first approvals, licenses,
registrations, CE Marking or authorizations of any national, supra-national (e.g., the FDA, the EMEA or Koseisho), state or local regulatory agency, department, bureau, commission, council or other
governmental entity, sufficient for the manufacture, distribution, use and sale of Licensed Product in a regulatory jurisdiction in accordance with applicable laws  [*]. 

        1.53    "Intermediate" means  [*]. The [*] designated
internally by Corgentech as  [*] that constitutes [*]. 

        1.54    "Inventions" means any discovery or invention, whether or not
patentable, made by employees, agents or independent contractors of either Party or both Parties during the course of the performance of their responsibilities under this Agreement, together with all
intellectual property rights relating thereto. 

6

 

        1.55    "Japan" means the country of Japan, including all of its territories and
possessions. 

        1.56    "Joint Commercialization Committee" or "JCC" means the committee formed
as described in Section 2.4. 

        1.57    "Joint Development and Regulatory Committee" or "JDC" means the
committee formed as described in Section 2.3. 

        1.58    "Joint Finance Committee" or "JFC" means the committee formed as
described in Section 2.6. 

        1.59    "Joint Inventions" shall have the meaning assigned in
Section 11.1(a). 

        1.60    "Joint Manufacturing Committee" or "JMC" means the committee formed as
described in Section 2.5. 

        1.61    "Joint Patent" shall have the meaning assigned in
Section 11.2(b). 

        1.62    "Joint Steering Committee" or  "JSC" means the committee formed as described in
Section 2.2. 

        1.63    "Koseisho" means the Japanese Ministry of Health and Welfare, or any
successor agency thereto. 

        1.64    "Launch" means first commercial sale of a Licensed Product to a Third
Party end user. 

        1.65    "Lead Development and Regulatory Party" means the Party responsible for
taking the lead on certain development (including regulatory) activities pursuant to Article 3. 

        1.66    "Lead Manufacturing Party" means the Party responsible for taking the
lead on manufacturing activities, including arranging for Third Party or internal manufacture, as specified in or pursuant to Article 7. 

        1.67    "Lead Marketing Party" means the Party responsible for taking the lead
on certain marketing activities pursuant to Article 4 or Article 5. 

        1.68    "Licensed Device" means any pressure delivery devices and methods for
delivering the E2F Decoy utilizing pressure for use in the Field that are Controlled by Corgentech at any time during the term of this Agreement. 

        1.69    "Licensed Product" means a product comprising E2F Decoy and Licensed
Device, including without limitation any product in development or being Commercialized, and whether available by prescription or over-the-counter, or by any other means. 

        1.70    "Major European Countries" means  [*]. 

        1.71    "Manufacturing Costs" means, subject to Sections 7.7 and 15.2(a), costs
that relate to Intermediate, E2F Decoy, Vialed Product, Licensed Device or Final Product, and that is either (a) supplied by a Third Party, and/or (b) manufactured directly by a Party or
an Affiliate of a Party, determined as follows: 

        In
the case of clause (a) above, Manufacturing Costs means (i) those amounts, approved by both Parties or the applicable Committee or included in the Manufacturing Plan and
Budget, that are paid to a Third Party [*] by a Party in connection with  [*], plus (ii) the relevant Party's reasonable FTE Costs and out-of-pocket
costs, which amounts  [*] incurred by such Party in connection with [*]. To
the extent any value added or similar tax is due with respect to amounts paid to such Third Party for transfer of Intermediate, E2F Decoy, Vialed Product, Licensed Device or Final Product, such
amounts shall be considered Manufacturing Costs under this subsection (a). 

7

 

        In
the case of clause (b) above, Manufacturing Costs shall mean those [*] costs  [*] and a reasonable [*]
(including without limitation,  [*], and a reasonable allocation of [*], including
reasonable [*] incurred by the manufacturing Party in connection with,  [*]. The costs for [*] shall include
 [*]. All components of Manufacturing Costs shall be allocated on a basis consistent with GAAP and consistent with the cost
accounting policy applied by the relevant Party to other products that it produces. Costs that [*] to a specific  [*], such as charges [*] in the determination of
Manufacturing Cost. The [*] costs in Manufacturing Costs may be  [*] as provided for in [*]. 

        Costs
under the previous two paragraphs shall include (i) costs accrued in accordance with GAAP [*]
services and/or supplies to [*], to the extent such [*]
and (ii) [*]. 

        Subject
to the preceding three paragraphs, the Parties will endeavor in good faith to [*] for purposes of ongoing
cost accounting purposes, which [*] shall be reviewed and updated periodically as appropriate. The Parties shall reconcile the  [*] and appropriate credit
or payment shall be made to effect such reconciliation as directed by the JFC not less than annually
against the above Manufacturing Cost definition. 

        [*] shall not be taken into account for purpose of (a) or (b) above. 

        1.72    "Manufacturing Plan and Budget" shall have the meaning assigned in
Section 7.2. 

        1.73    "Marketing Plan and Budget" shall have the meaning assigned in
Section 5.3. 

        1.74    "Medical Liaisons" shall mean those health care professionals employed
or engaged by a Party with sufficient medical or other pertinent health care experience to engage in in-depth dialogues with physicians regarding medical issues associated with a Licensed
Product. 

        1.75    "Net Sales" means the amount billed by a Party, an Affiliate or any
permitted sublicensee for sales of Licensed Product to a Third Party less: 

        (a)   discounts (including cash discounts and quantity discounts), retroactive price reductions, charge-back
payments and rebates granted to managed health care organizations or to federal, state and local governments, their agencies, and purchasers and reimbursers or to trade customers; provided, that where
any such discounts, reductions, payments or rebates for the Licensed Product are based on sales to the customer of a bundled set of products in which the Licensed Product is included, the applicable
discount, reduction, payment or rebate for such Licensed Product in such bundled arrangement shall be based on [*] for the
Licensed Product [*] in such country in such Quarter (and if no such reference is then available, then based on the  [*]; 

        (b)   credits or allowances actually granted upon claims, damaged goods, rejections or returns of such Licensed Product,
including Licensed Product returned in connection with recalls or withdrawals; 

        (c)   freight out, postage, shipping and insurance charges for delivery of Licensed Product; 

        (d)   taxes or duties levied on, absorbed or otherwise imposed on sale of such Licensed Product, including without limitation
value-added taxes, or other governmental charges otherwise imposed upon the billed amount, as adjusted for rebates and refunds, to the extent not paid by the Third Party; and 

        (e)   amounts repaid, credited or written off by reason of uncollectible debt, and amounts written off on  [*] to the extent consistent with the relevant
Party's business practices for the majority of its pharmaceutical products, as
determined on a country-by-country basis. 

        In
the event a Party is receiving royalties under this Agreement from any Licensed Product sold in the Royalty Territory in the form of a combination product containing one or more
active ingredients in addition to the E2F Decoy (which may be either combined in a single formulation or bundled with 

8

 

separate
formulations but sold as one product), Net Sales for such combination product will be calculated by multiplying actual Net Sales of such combination product by  [*] in the combination, if sold
separately. If, on a country-by-country basis, the other active
ingredient or ingredients in the combination are [*], Net Sales for the purpose of determining royalties of the combination
product shall be determined [*]. Net Sales shall be determined in a manner consistent for all products sold by the relevant
Party and in accordance with GAAP. 

        [*]

        1.76    "NDA" means a New Drug Application filed with the FDA in conformance
with applicable laws and regulations, or the foreign equivalent of any such application in any other country, and includes any supplemental NDA, and supporting documents for Approval by the FDA of the
Licensed Device for the Co-Promotion Territory. 

        1.77    "Other Licensed Product" means a Licensed Product containing  [*] (i) an [*] (ii) a Licensed Device  [*] for which [*] any Licensed Device for which  [*]
 to the Licensed Device [*] outside the United
States. 

        1.78    "PABG" means a peripheral artery bypass graft, typically composed of
saphenous veins (although other vessels can be used), that are implanted into patients with an occluded or stenosed artery in the periphery to bypass such occlusion or stenosis and to provide blood
flow to otherwise ischemic tissue. 

        1.79    "Patent" means (a) unexpired letters patent (including inventor's
certificates), including without limitation any substitution, extension, registration, confirmation, reissue, re-examination, renewal or any like filing thereof and (b) pending
applications for letters patent, including without limitation any continuation, divisional or continuation-in-part thereof and any provisional applications. 

        1.80    "Patent Costs" means, subject to Sections 11.3(d), 11.4(c) and 15.2(a),
the FTE Costs of [*] and out-of-pocket costs (including,
without limitation, the fees and expenses paid to [*]) incurred by a Party or any of its Affiliates in accordance with GAAP
after the Effective Date during the term of and pursuant to this Agreement in connection with the establishment and maintenance of rights under Patents that claim the composition of matter, article of
manufacture, method of use and/or method of manufacture of a Licensed Product in the Co-Promotion Territory, including costs of patent interference, opposition, reissue,
re-examination, or litigation (enforcement or defense) or other proceedings, and filing and registration fees in the Co-Promotion Territory. 

        1.81    "Phase I Clinical Trial" means a human clinical trial of a Licensed
Product, the principal purpose of which is a preliminary determination of safety in healthy individuals or patients or a similar clinical study prescribed by the Regulatory Authorities in a foreign
country. 

        1.82    "Phase II Clinical Trial" means a human clinical trial of a Licensed
Product, the principal purpose of which is a determination of safety and efficacy in the target patient population or a similar clinical study prescribed by the Regulatory Authorities in a foreign
country. 

        1.83    "Phase I/II Clinical Trial" means a human clinical trial of a Licensed
Product on a limited number of subjects that is intended to established that a pharmaceutical product is safe and to demonstrate initial indications of efficacy for its intended use. 

        1.84    "Phase III Clinical Trial" means a human clinical trial of a Licensed
Product on a sufficient number of subjects that is designed to establish that a pharmaceutical product is safe and efficacious for its intended use, and to define warnings, precautions, and adverse
reactions that are associated with such pharmaceutical product in the dosage range to be prescribed, and to support Approval of such pharmaceutical product or label expansion of such pharmaceutical
product. 

9

 

        1.85    "Phase IIIB Clinical Trial" means a product support human clinical trial
of a Licensed Product (i.e., a clinical trial which is not required for receipt of Approval for a country but which may be useful in providing additional drug profile data) that is approved by the JDC
and made part of the Development Plan and that is (i) commenced before receipt of Approval in the country for which such trial is conducted or (ii) is required or requested by a
Regulatory Authority as a condition of or in connection with an Approval [*]. 

        1.86    "Phase IV Clinical Trial" means a product support human clinical trial
of a Licensed Product commenced after receipt of Initial Approval in the country for which such trial is being conducted and that is conducted within the parameters of the Regulatory Approval for the
Licensed Product, other
than Phase IIIB Clinical Trials and clinical trials required or requested by a Regulatory Authority as a condition of or in connection with an Approval. Phase IV Clinical Trials may include, without
limitation, [*]. 

        1.87    "Pre-Launch Marketing Plan and Budget" shall have the
meaning assigned in Section 5.3. 

        1.88    "Previously Disclosed" means information set forth in the Disclosure
Letter and specifically designated as information "Previously Disclosed" pursuant to this Agreement. 

        1.89    "Product-Specific Corgentech Patent" means a Corgentech Patent that
claims the [*] or the [*] but that  [*]. 

        1.90    "Profit or Loss" means Net Sales of Licensed Product in the
Co-Promotion Territory, less Allowable Expenses in the Co-Promotion Territory. For sake of clarity, Profit and Loss shall be determined  [*], and if such terms are used individually, "Profit" shall mean
a positive Profit or Loss, and "Loss" shall mean a negative
Profit or Loss. 

        1.91    "QA" means quality assurance activities conducted in accordance with
Good Manufacturing Practice. 

        1.92    "QC" means quality control activities conducted in accordance with Good
Manufacturing Practice. 

        1.93    "Quarter" means each of the three (3) month periods ending on
March 31, June 30, September 30 and December 31, provided that the first Quarter during the term of this Agreement shall commence on the Effective Date and end on
December 31, 2003. 

        1.94    "Regulatory Authority" means any governmental authority, including
without limitation FDA, EMEA or Koseisho, with responsibility for granting any licenses or approvals or granting pricing and/or reimbursement approvals necessary for the marketing and sale of a
Licensed Product in any country. 

        1.95    "Regulatory Expenses" means, subject to Sections 3.5(h), 3.8(h), 15.1
and 15.2(a), those FTE Costs and out-of-pocket costs (including without limitation filing, user, maintenance and other fees paid to Regulatory Authorities) incurred by a Party
or any of its Affiliates in accordance with GAAP after the Effective Date during the term of and pursuant to this Agreement in connection with the  [*], the obtaining and maintenance of Approval of
Licensed Product  [*], and compliance with Approvals and requirements of such regulatory authorities (including without limitation  [*]), [*] and reporting,  [*] activities, and [*] of Licensed Product. 

10

 

        1.96    "Regulatory Working Group" or
"RWG" has the meaning assigned in Section 2.3(c). 

        1.97    "Royalty Term" has the meaning assigned in Section 6.8(a). 

        1.98    "Royalty Territory" means the world, excluding the
Co-Promotion Territory. 

        1.99    "Royalty-Bearing Sales" means the Net Sales of Licensed Product in the
Royalty Territory. 

        1.100    "Sales and Marketing Costs" means, subject to Sections 5.4, 5.5, 5.6,
5.11 and 15.2(a), those FTE Costs and out-of-pocket costs, including without limitation costs for independent contractors engaged as permitted under this Agreement, incurred by
a Party or any of its Affiliates in accordance with GAAP during the term of and pursuant to this Agreement that are specifically identifiable or reasonably allocable to the sales and marketing of a
Licensed Product in the Co-Promotion Territory. Sales and Marketing Costs shall include amounts paid by a Party to Third Parties in connection with the Commercialization of Licensed
Product by such Third Party (other than Third Party Royalties) as permitted by this Agreement. Sales and Marketing Costs include, without limitation, costs connected with the following activities: 

        (a)   activities directed to the advertising and marketing of Licensed Product, including the use of a Party's global marketing
personnel or marketing personnel specifically allocated to the Co-Promotion Territory; 

        (b)   professional education (to the extent not performed by Sales Representatives), including, without limitation, Launch
meetings; 

        (c)   advertising, public relations and medical education agencies, including without limitation, development and distribution
of selling and advertising and promotional materials relating to the use of the Licensed Product, field literature, direct-to-consumer advertising campaigns, media/journal
advertising, distribution of such advertising and promotional materials by a Party to its sales force personnel, exhibiting at seminars and conventions, convention costs, and promotional premiums; 

        (d)   Medical Liaison activities; 

        (e)   peer-to-peer activities such as continuing medical education, micro-marketing activities, grand
rounds and lunch and dinner meetings; 

        (f)    speakers programs including training of such speakers; 

        (g)   grants to support continuing medical education or research (excluding Development Costs) related to Licensed Product; 

        (h)   development, publication and dissemination of publications relating to the Licensed Product; 

        (i)    developing, obtaining, and providing training packages for Licensed Product, promotional literature, promotional
materials, and other selling materials, including without limitation, [*]; 

        (j)    providing the training contemplated by Section 5.6, including transporting, housing and maintaining Sales
Representatives for training and the costs of all training materials used for such purpose;; 

        (k)   developing and performing market research; 

        (l)    conducting symposia and opinion leader development activities; 

        (m)  [*]; 

        (n)   developing information and data specifically intended for  [*]; 

11

 

        (o)   [*] incurred in connection with  [*], to the extent such [*] is to be  [*]; 

        (p)   selling by Third Party independent contractors engaged by a Party as permitted by this Agreement; 

        (q)   conducting [*]; 

        (r)   operation and maintenance of the Sales Representatives that promote Licensed Product in the Co-Promotion
Territory, sales bulletins and other communications, sales meetings, specialty sales forces, consultants, call reporting and other monitoring/tracking costs, district and regional sales management,
home office personnel who support the sales force, development and copying of training, motivational and communications materials relating to the Licensed Product, and other services ancillary to the
foregoing (to the extent not otherwise falling within subsections (a) through (r)); 

        (s)   [*]; and 

        (t)    conducting one or more training facilities for potential users of the Licensed Product, including without limitation
costs of trainers, facility costs, supplies, and user costs. 

Sales
and Marketing Costs shall include costs of such activities that are incurred at any time during the term of this Agreement (including prior to Initial Approval of a Licensed Product in the
Co-Promotion Territory). Subject to the foregoing, Sales and Marketing Costs shall be consistent with the Pre-Launch Marketing Plan and Budget or Marketing Plan and Budget, as
applicable. 

        1.101    "Sales Representative" of a Party means (a) an employee of such
Party or an Affiliate of such Party and/or (b) an independent contractor engaged by such Party or Affiliate (to the extent permitted in this Agreement) or by an Affiliate of either Party, to
Co-Promote Licensed Products on behalf of such Party, in either case (i) who is responsible for meeting with customers and others who
can buy or prescribe [*] the applicable Licensed Product in the Co-Promotion Territory, and (ii) whose  [*] activities is [*]
 of the individual, excluding in
each case those employees or independent contractors of either Party or such an Affiliate that are solely engaged in telemarketing, professional education or other indirect activities in support of
direct selling. 

        1.102    "Semi-Annual Period" means any period consisting of two
(2) consecutive Quarters; provided, that each Semi-Annual Period shall begin on the day following the last day of a previous
Semi-Annual Period. 

        1.103    "Sole Invention" shall have the meaning assigned in
Section 11.1(a). 

        1.104    "Specifications" means the specifications for the manufacture, labeling
and packaging of the Intermediate, E2F Decoy, Vialed Product, Licensed Device or Final Product, as set forth in an applicable regulatory filing (e.g., a Drug Master File or NDA or foreign equivalent)
or Approval from time to time, and as [*] from time to time or  [*]. 

        1.105    "Stanford License" means the Exclusive License Agreement between
Corgentech (as Caber Corp.) and The Board of Trustees of the Leland Stanford Junior University dated January 1, 1999, as amended and restated. 

        1.106    "Supply Chain Management" means the  [*] of [*] activities and  [*] that (a) [*] in the manufacture of Licensed
Product; (b) [*] Licensed Product or any component thereof; or
(c) [*] Licensed Product or any component thereof. Supply Chain Management also includes management of  [*] activities. 

        1.107    "Territory" means the world. 

        1.108    "Third Party" means any entity other than Corgentech or BMS or an
Affiliate of either of them. 

12

 

        1.109    "Third Party Royalties" means royalties and other payments payable to a
Third Party in consideration for rights necessary or useful for the manufacture, use or sale of Licensed Product. 

        1.110    "Trademark Costs" means, subject to Sections 11.9 and 15.2(a),
the FTE Costs of [*] and out-of-pocket costs (including, without limitation, the fees and expenses paid
to [*]) incurred in connection with the establishment and maintenance of rights under trademarks applicable to Licensed Product  [*], including costs of
filing and registration fees, and actions to enforce or maintain a trademark and other proceedings.
 

        1.111    "Transcription Factor Decoy" means a single strand or double-stranded
oligonucleotide that regulates expression of one or more genes by binding to the transcription factor for such gene or genes. 

        1.112    "Valid Claim" means (a) an unexpired claim of an issued patent
which has not been found to be unpatentable, invalid or unenforceable by an unreversed and unappealable decision of a court or other authority in the subject country and that has not been disclaimed
or admitted to be invalid or unenforceable through reissue, disclaimer or otherwise, or (b) for purposes of [*] and
solely with respect to Licensed Products [*], including without limitation any  [*], any composition of matter, article of manufacture or method of use
claim contained in an application for a Patent that has
been pending for less than [*] years or, [*]. 

        1.113    "Vialed Product" means a vial containing a formulation of the E2F
Decoy. 

        1.114    "Working Group" shall have the meaning assigned in
Section 2.7(e). 

        1.115    "Year" means any period consisting of twelve (12) consecutive
calendar months. 

        1.116    Additional Defined Terms. The following additional defined terms shall
have the meanings set forth in the sections of this Agreement listed below: 

	Defined Term
 
	 	Section Where Defined

	"AAA"	 	16.2(a)
	"Acquisition Transaction"	 	17.13(c)
	"Agreement"	 	Preamble
	"Bankrupt Party"	 	10.10(a)
	[*]	 	 
	"Benefit Plans"	 	5.10(h)
	"BMS"	 	Preamble
	"BMS Indemnitees"	 	15.1(b)
	"BWH"	 	10.4(a)
	"Claims"	 	15.1(a)
	"Collaboration"	 	2.1
	[*]	 	 
	"Corgentech"	 	Preamble
	"Corgentech Indemnitees"	 	15.1(a)
	"Courts"	 	16.3
	"Coverage"	 	15.4
	"Data Exchange Agreement"	 	3.12
	"Designee Vote"	 	2.7(c)
	"Divesting Party"	 	10.6(d)
	"Divestment Period"	 	10.6(c)
	"Effective Date"	 	Preamble
	"Exchange Act"	 	17.13(a)
	[*]	 	 
	"Excess Costs"	 	3.3
	 	 	 

13

 

	"Existing Licensed Products"	 	3.9(a)
	"Hiring Party"	 	5.10(h)
	"HSR Act"	 	10.1(c)
	"Indemnified Party"	 	15.3(a)
	"Indemnifying Party"	 	15.3(a)
	"Indemnitees"	 	15.2(a)
	"JCC"	 	2.4
	"JDC"	 	2.3
	"JFC"	 	2.6
	"JMC"	 	2.5
	"JSC"	 	2.2
	"Limit"	 	3.8(b)
	"Losses"	 	15.1(a)
	"Marks"	 	11.8(a)
	"Merging Party"	 	10.6(c)
	[*]	 	 
	"NHP"	 	5.10(j)
	[*]	 	 
	"Party" or "Parties"	 	Preamble
	"Party Vote"	 	2.7(c)
	"Permitted Overrun"	 	3.3
	"Pre-Paid Inventory Costs"	 	3.8(a)
	"Principal Contact Person"	 	2.7(g)
	[*]	 	 
	"Reimbursement Payments"	 	6.6(e)
	"RWG"	 	2.3(c)
	"Selected Party"	 	11.5(d)
	"Stanford"	 	10.4(a)
	[*]	 	 
	"Title 11"	 	10.10(a)
	"Trademark Infringement Claims"	 	11.9(a)
	"Trademarks"	 	11.7(a)
	"Transition Period"	 	3.6(a)
	"Trigger Date"	 	6.3(c)
	[*]	 	 

ARTICLE 2  

 MANAGEMENT  

        2.1    General.    The Parties desire to establish a Joint Steering Committee that will oversee the Parties'
collaboration under this Agreement (the "Collaboration") and facilitate communications between the Parties with respect to the development, Approval,
manufacturing and Commercialization of Licensed Product hereunder. Additionally, the Parties wish to establish four (4) specialized committees to focus more closely on clinical development and
Approval, Commercialization, and manufacturing and financial issues, respectively, arising out of the Parties' development of Licensed Product. Each of such committees shall have the responsibilities
and authority allocated to it in this Article 2 and elsewhere in this Agreement. The Parties intend that their respective organizations will work together to assure success of the
collaboration. 

14

 

        2.2    Joint Steering Committee (JSC).    

        (a)    Formation and Purpose.    Within
forty-five (45) days after the Effective Date, Corgentech and BMS shall establish the JSC, which shall have overall responsibility for the success of the Collaboration. The purposes
of the JSC shall be (i) to determine the global development, regulatory, Commercialization, and manufacturing strategy for the Collaboration, (ii) to coordinate the Parties' activities
hereunder, and (iii) to approve plans and budgets for the Collaboration proposed by the JDC, JCC, JMC or JFC. The JSC shall have the membership and shall operate by the procedures set forth in
Section 2.7. 

        (b)    Specific Responsibilities of the
JSC.    In addition to its overall responsibility for the Collaboration, the JSC shall, in particular: 

          (i)  review, provide comment on [*] Development
Plans, and Annual Plans and Budgets proposed by the JDC; 

         (ii)  review, provide comment on [*] Marketing Plans
and Budgets proposed by the JCC for the Co-Promotion Territory for a given calendar Year; 

       (iii)  review, provide comment on, [*] Manufacturing
Plans and Budgets proposed by the JMC; 

        (iv)  coordinate the activities of the Parties hereunder, including oversight of the JDC, JCC, JMC and JFC as provided herein; 

         (v)  resolve any disputes or disagreements submitted to it by the JDC, JCC, JMC or JFC; 

        (vi)  review [*] for Licensed Product in the
Co-Promotion Territory, as further provided herein; 

       (vii)  review [*] (for the  [*]) commercial strategy in the Territory; 

      (viii)  review [*] for obtaining patent and trademark
protection for Licensed Product, enforcing such patents and trademarks, and defending Third Party claims relating to patents and trademarks; and 

        (ix)  perform such other functions as appropriate to further the purposes of this Agreement as determined by the Parties,
including the periodic evaluation of performance against goals. 

        2.3    Joint Development and Regulatory Committee (JDC).    

        (a)    Formation and Purpose.    Within
forty-five (45) days after the Effective Date, Corgentech and BMS shall establish the JDC, which shall oversee, coordinate and expedite the development of, and the making of
regulatory filings for, Licensed Product worldwide in order to obtain Approvals. The JDC will also facilitate the flow of information with respect to development activities being conducted for
Licensed Product, oversee registrational clinical trials and, where necessary, collaborate with the JCC to oversee any [*]. The
JDC shall have the membership and shall operate by the procedures set forth in Section 2.7. 

        (b)    Specific Responsibilities of the
JDC.    In support of its responsibility for overseeing, coordinating and expediting the preclinical and clinical development of, and regulatory filings for, Licensed
Product, the JDC shall in particular: 

          (i)  [*] for the preclinical and clinical development
and Approval of Licensed Product on a worldwide basis for all indications for which the Parties have jointly agreed to develop Licensed Products; 

         (ii)  propose Development Plans and budgets and Annual Plans and Budgets; 

15

 

       (iii)  [*] the  [*] clinical and [*] Licensed Product, including
without
limitation [*] pre-clinical studies, Phase I Clinical Trials, Phase I/II Clinical Trials,
Phase II Clinical Trials or Phase III Clinical Trials; 

        (iv)  monitor the progress of all clinical and pre-clinical studies of Licensed Product in the Territory,
including [*] the Development Plans and Annual Plans and Budgets; 

         (v)  facilitate the exchange of all development information and data relating to all studies described in subsection
(iii) above for Licensed Product in the Territory; 

        (vi)  review [*] for all Licensed Product clinical
studies conducted in the Territory, and any investigator's brochure(s) and revisions thereto; 

       (vii)  work together with the JCC and JMC during the development of Licensed Product to assure a smooth transition from
development of such Licensed Product to Commercialization of such Licensed Product; 

      (viii)  review [*] any significant agreements
(generally an agreement [*] of [*]) with Third Parties
to be [*] the preclinical or clinical development of Licensed Product; 

        (ix)  discuss and recommend to the Parties [*] of
(A) [*] for [*] in the Field or
(B) additional [*] Licensed Product to [*] the
E2F Decoy [*]; 

         (x)  review [*] of  [*]; 

        (xi)  provide updates on its activities and achievements to the JSC; 

       (xii)  review [*] activities of the RWG; 

     (xiii)  work with the JCC to make recommendations [*]
the JSC for early access and compassionate use programs; and 

      (xiv)  coordinate with the JCC, JMC and JFC as appropriate. 

        (c)    Regulatory Working Group.    The JDC
will also establish a Working Group that is a subcommittee of the JDC (the "Regulatory Working Group" or
"RWG") that will be responsible for: 

          (i)  overseeing, monitoring and coordinating all regulatory aspects of the development of Licensed Product in the
Co-Promotion Territory and the EU with respect to obtaining Approval, including without limitation all regulatory actions, communications and filings (including matters pertaining to
Licensed Product labeling) and submissions (including without limitation filings and submissions of supplements and major amendments to such Regulatory Authorities with respect to the Licensed
Product); 

         (ii)  [*] the schedule and implementation strategy for
all filings with Regulatory Authorities in the Co-Promotion Territory or the EU; 

       (iii)  coordinating preparation for and attendance at FDA advisory committee meetings or the equivalent thereof; 

        (iv)  coordinating responses to additional requirements and inquiries of Regulatory Authorities; 

         (v)  [*] a regulatory strategy and plan for obtaining
Approvals for the Licensed Product [*]; 

        (vi)  coordinating with the JMC with respect to the drafting and contents of the Chemistry, Manufacturing and Controls section
of a Drug Approval Application; 

16

 

       (vii)  facilitating the exchange of all critical regulatory information and data relating to Licensed Product in the
Territory; 

      (viii)  facilitating the exchange of information in compliance with Section 3.12 of this Agreement in order to ensure
that significant issues concerning adverse event information and safety issues are addressed consistently and in a timely manner among Regulatory Authorities in the Territory; and 

        (ix)  providing updates on its activities and achievements to the JSC, JCC, JFC and JMC as directed by the JDC. 

        The
RWG shall meet at such times and in such manner as the JDC directs. The RWG shall attend meetings of the JDC and present its proposals on any matter within its jurisdiction under
this Section 2.3 for approval by the JDC at the meeting of the JDC following the time at which such matter arises. 

        2.4    Joint Commercialization Committee (JCC).    

        (a)    Formation and Purpose.    Within sixty
(60) days after the Effective Date, Corgentech and BMS shall establish the JCC, which shall oversee the Commercialization of Licensed Product on a worldwide basis, including the marketing,
sales and distribution of Licensed Product. The JCC shall have the membership and shall operate by the procedures set forth in Section 2.7. 

        (b)    Specific Responsibilities of the
JCC.    In support of its responsibility for overseeing the Commercialization of Licensed Product on a worldwide basis, the JCC shall perform the following
activities: 

          (i)  With respect to the Territory: 

        (1)   [*] for Commercialization of Licensed Product,
including [*]; 

        (2)   coordinate with the JDC, JMC and JFC as appropriate; 

        (3)   review [*] for Commercialization of Licensed
Product [*] in accordance with the strategy therefor; 

        (4)   facilitate the flow of information with respect to the Commercialization of each Licensed Product and review the
allocation of Commercialization responsibilities between the Parties to ensure consistency with the terms of this Agreement; 

        (5)   provide updates on its activities and achievements to the JSC; and 

        (6)   coordinate and oversee the Parties' [*] for
Licensed Product [*]. 

         (ii)  With respect to the Co-Promotion Territory: 

        (1)   propose the Marketing Plans and Budgets, Pre-Launch Marketing Plans and Budgets, consistent with the strategy
therefor, and [*] of such plans and budgets; 

        (2)   monitor progress under, and compliance with, each Marketing Plan and Budget, and the Pre-Launch Marketing
Plan and Budget described in clause (1) above; 

        (3)   monitor, review [*] by the Parties in connection
with Commercialization activities; 

        (4)   review [*] advertising materials and strategies
and promotional materials developed by a Party for the Parties' Sales Representatives with respect to the Licensed Product, including but not limited to medical education, symposia, opinion leader
development, peer-to-peer development, publications and journal ads; 

17

 

        (5)   [*] of major or key marketing vendors (e.g.,
public relations agencies, advertising agencies and medical education agencies) with global capabilities with respect to Commercialization of Licensed Product in the Co-Promotion
Territory; 

        (6)   [*] strategies to be implemented with respect to
Licensed Product; 

        (7)   design, in collaboration with the JDC, pharmacoeconomic studies or  [*], and [*] such resulting data
with respect to
Licensed Product; 

        (8)   [*] for  [*] of market research plans with respect to Licensed Product; 

        (9)   review [*], and coordinate  [*] including but not limited to [*]
,  [*] of the Licensed Products and [*] of the Licensed
Products and [*]; 

        (10) [*] Sales Representatives in accordance with
Section 5.9; 

        (11) [*] packaging designs, and plan and oversee
educational and professional symposia, and speaker and peer-to-peer activity programs, for the Licensed Product; 

        (12) discuss and [*] which the Licensed Product will
be [*] and any [*] for Licensed Products; 

        (13) receive and review [*] Sales and Marketing Costs
and other Allowable Expenses for Commercialization of Licensed Product; 

        (14) recommend whether to [*] the Licensed Product,
such as for Licensed Product [*], for approval by the JSC; 

        (15) work with the JDC to make recommendations to the JSC for approval of early access and compassionate use programs; and 

        (16) review [*] any significant agreements (generally
an agreement [*] of [*]) with Third Parties to be  [*] Commercialization of Licensed Products. 

        (c)   The JCC shall endeavor to take advantage of existing resources of BMS in allocating responsibilities between the Parties
under this Section 2.4. 

        (d)    Final Decision-Making Authority with Respect to the Royalty
Territory.    BMS shall have final decision-making authority on the JCC regarding all matters relating to the  [*] of the Licensed Products in the Royalty
Territory as provided in Section 2.7(c), including without limitation the
following: (1) [*] and  [*] of [*];
(2) [*] policy; (3) [*] and  [*]; (4) [*]
expenses and  [*]; (5) [*] to be  [*] and the proportion of [*] of the Licensed Products;
(6) [*] program deployment; (7) [*] and
product-related [*]; (8) [*] and decisions as to  [*] will be [*]; (9) Licensed Product  [*]; and (10) [*] and
[*] of [*] plans;  provided, however, that with respect to the matters covered by clauses [*], BMS
shall make its decision on such matters (to the extent [*]) only after  [*] such matters and the [*] on such
matters, and only
after [*] (through [*]) on such matters and  [*], and further provided that such decisions with respect to
the Royalty Territory must be consistent with the terms of this
Agreement. 

        2.5    Joint Manufacturing Committee (JMC).    

        (a)    Formation and Purpose.    Within
forty-five (45) days after the Effective Date, Corgentech and BMS shall establish the JMC, which shall oversee the manufacturing of Licensed Product on a worldwide basis, including
the planning, manufacturing and supply (including Supply Chain Management) of Licensed Product. The JMC shall have the membership and shall operate by the procedures set forth in Section 2.7. 

18

 

        (b)    Specific Responsibilities of the
JMC.    In support of its responsibility for overseeing the manufacturing of Licensed Product on a worldwide basis, the JMC shall perform the following activities: 

          (i)  delineate requirements and responsibilities for development and licensure of manufacturing processes and facilities for
Licensed Product and for supply of Licensed Product in the Territory; 

         (ii)  jointly develop a manufacturing strategy for the Development Plan and Annual Plan and Budget to enable development and
licensure of manufacturing processes and facilities for Licensed Product in the Territory that includes all aspects of manufacture and release, including but not limited to formulations, Intermediate,
dosage form, devices, product characterization studies, stability studies and manufacturing plans and forecasts; 

       (iii)  determine Manufacturing Plans and Budgets, and  [*] for and [*] such plans in accordance with this
Agreement; 

        (iv)  [*] process development plans prior to the
manufacture of registration batches of Licensed Product; 

         (v)  review quality assurance efforts, including but not limited to those efforts with respect to the establishment of
Specifications and quality standards for Licensed Product; 

        (vi)  subject to Section 2.5(b)(xiv), [*] the  [*] any [*]
that  [*] Intermediate, E2F Decoy, Vialed Product, Licensed Device or Final Product  [*] Licensed Product; 

       (vii)  coordinate with the RWG the drafting and contents of the Chemistry, Manufacturing and Controls section of a Drug
Approval Application for Licensed Product; 

      (viii)  review [*] plans for any changes in  [*], and [*] for
Licensed Product, it being understood
that [*] regarding the [*] shall be  [*] any component of a Licensed Product, if [*]
 of a
Licensed Product pursuant to this Agreement or any related supply agreement, shall [*]; 

        (ix)  prepare for regulatory inspections and ensure adherence to compliance standards with respect to Licensed Product; 

         (x)  ensure that future logistical strategies and capacity planning are consistent with the forecasts provided in the
Pre-Launch Marketing Plan and Budget and each Marketing Plan and Budget, as well as inventory levels for Licensed Product; 

        (xi)  review quality-related issues concerning the Licensed Product or any component thereof; 

       (xii)  coordinate with the JCC, JDC and JFC as appropriate; 

     (xiii)  provide updates on the JMC's activities and achievements to the JSC, as appropriate; and 

      (xiv)  review [*] any significant agreements, purchase
orders or amendments (generally involving [*] of [*])
with Third Parties to be [*] the manufacture of Intermediate, E2F Decoy, Vialed Product, Licensed Device or Final Product for
sale and use in the Territory. 

        (c)   The JMC shall endeavor to take advantage of existing resources of BMS in allocating responsibilities between the Parties
under this Section 2.5. 

19

   
        2.6    Joint Finance Committee (JFC).    

        (a)    Formation and Purpose.    Within forty-five
(45) days after the Effective Date, the Parties shall establish a joint finance committee (the "Joint Finance Committee"), which shall provide
support to all other Committees with respect to accounting and financial matters relating to Licensed Products. The Joint Finance Committee shall report directly to the JSC, and shall have the
membership and shall operate by the procedures set forth in Section 2.7. 

        (b)    Specific Responsibilities of the JFC.    In particular, the
Joint Finance Committee shall: 

          (i)  work with the other Committees and Working Groups to assist in financial, budgeting and planning matters as required,
including assisting in the preparation of budgets and annual and long-term plans; 

         (ii)  recommend for approval by the JSC [*] consistent
with this Agreement for [*] and assist in resolving differences that  [*] of this Agreement; 

       (iii)  recommend for approval by the JSC a procedure for monitoring and reporting to the JSC and any other applicable
Committee, [*] under the applicable Development Plan and related budget, Annual Plan and Budget, Pre-Launch
Marketing Plan and Budget, and Marketing Plan and Budget, and report such performance to the JSC or such other Committee as directed; 

        (iv)  review each Party's reporting of Net Sales, Allowable Expenses and Development Costs under this Agreement, recommend,
for approval by the JSC, any changes to reporting procedures and [*] that shall be  [*] as [*] pursuant to
 [*]; 

         (v)  compute adjustments to the FTE rates in accordance with Section 6.17; 

        (vi)  recommend, for approval by the JSC, additional or alternative reporting procedures concerning financial aspects of the
Collaboration including, without limitation, templates and timing, and develop a format for reports pursuant to Sections 3.8, 5.5(c), 6.4, 6.5, 6.7, 6.9, 6.15 and 7.7, including without
limitation, Net Sales, Allowable Expenses and Development Costs, and such other reports as are approved by the JSC for the implementation of the financial aspects of the Collaboration; 

       (vii)  review the appropriate allocation of costs and expenses under this Agreement and recommend any changes to, or
additional items to be included within, [*]; 

      (viii)  make recommendations, if necessary, concerning the exchange of information between the Parties on a monthly basis with
respect to Allowable Expenses, Net Sales and Royalty-Bearing Sales in furtherance of a Party's obligations under this Agreement or pursuant to applicable law (such as SEC reporting obligations); 

        (ix)  recommend, for approval by the JSC, a means of reconciling, one to the other, the  [*] of the Parties where necessary and methods [*] of
the Parties; 

         (x)  review calculations of the amount of any payments to be made by the Parties (or their Affiliates) hereunder, providing
for the reconciliation of payments; 

        (xi)  prepare, for approval by the JSC, such reports on financial matters as are approved by the JSC for the implementation of
the financial aspects of the Collaboration; 

       (xii)  coordinate audits of data where appropriate and required or allowed by this Agreement; 

     (xiii)  perform such other functions as the JSC may request from time to time; and 

      (xiv)  coordinate with the JDC, JCC and JMC as appropriate. 

20

 

        2.7    General Committee Membership and Procedures.    

        (a)    Membership.    For the JCC,  [*] representatives and [*] with appropriate expertise
to serve as members of such Committee. For the JSC, JDC, JMC and JFC, [*] and  [*] shall designate [*] with
appropriate expertise to
serve as members of such Committee. Each representative may serve on more than one Committee as appropriate in view of the individual's expertise. Each Party may replace its Committee representatives
at any time upon written notice to the other Party. Each Committee shall have co-chairpersons. BMS and Corgentech shall each select from their representatives a co-chairperson
for each of the Committees. The co-chairpersons of each Committee shall be responsible for calling meetings, preparing and circulating an agenda in advance of each meeting of such
Committee, and preparing and issuing minutes of each meeting within thirty (30) days thereafter; provided that a Committee
co-chairperson shall call a meeting of the applicable Committee promptly upon the written request of the other co-chairperson to convene such a meeting. Such minutes will not
be finalized until both chairpersons review and confirm the accuracy of such minutes in writing. 

        (b)    Meetings.    Each Committee shall hold
meetings at such times as it elects to do so, but in no event shall such meetings be held less frequently than once every [*],
except that after [*], the JSC shall meet no less frequently than once every  [*]. Each Committee shall meet alternately at Corgentech's facilities in South
San Francisco, California, and BMS' facilities in
Lawrenceville, New Jersey, or at such locations as the Parties may otherwise agree. Other employees of each Party (including without limitation, the Alliance Managers) involved in the development,
manufacture or Commercialization of the Licensed Product may attend meetings of such Committee as nonvoting participants, and, with the consent of each Party, consultants, representatives, or advisors
involved in the development, manufacture or Commercialization of the Licensed Product may attend meetings of such Committee as nonvoting observers; provided that such Third Party representatives are
under obligations of confidentiality and non-use applicable to the Confidential Information of each Party and that are at least as stringent as those set forth in Article 12. Each
Party shall be responsible for all of its own expenses of participating in any Committee (including without limitation in any Working Group). Meetings of any Committee may be held by audio or video
teleconference with the consent of each Party; provided that [*] of such
Committee per Year shall be held in person. 

        (c)    Decision-Making.    Each Party's
designees on a Committee shall, collectively, have one vote (the "Party Vote") on all matters brought before the Committee, which Party Vote shall be
determined by [*] vote (the "Designee Vote") of such designees present at the
meeting. Except as expressly provided in this Section 2.7(c), each Committee shall operate as to matters within its jurisdiction by  [*] Party Vote (although the Designee Votes underlying such Party
Votes need not be  [*]); provided that no Committee shall have the authority to amend or modify, or waive compliance with, this Agreement.
Notwithstanding any other provision of this Agreement, BMS shall have final decision-making authority regarding all matters relating to  [*] (other than disputes concerning the [*] of, or the  [*]) and in furtherance of the foregoing shall have a  [*] with such matters on the JSC and the JCC;
provided, that each such decision
shall be made in good faith and no such decision shall violate or breach any provision of this Agreement. No such decision by BMS in the exercise of such final decision-making authority shall be
subject to any dispute resolution mechanism or procedure, including without limitation any dispute resolution mechanism provided for in this Section 2.7(c) or Sections 16.1 or 16.2.
Except for matters within the final decision-making authority of BMS with respect to [*] as provided above, any disagreement
between the designees of BMS and Corgentech on the JDC, JCC, JMC or JFC as to matters within such Committee's jurisdiction shall, at the election of either Party, be addressed, first, with the
Alliance Managers, and if the dispute is not resolved within [*] Business Days after such referral to the Alliance Managers,
then it shall, at the election of either Party, be submitted to the JSC for 

21

 

resolution.
If the JSC, in consultation with the Alliance Managers, does not resolve any matter allocated to it for resolution or submitted to it as provided above within  [*] of such submission, such matter shall,
at the election of either Party, be referred for resolution pursuant to
Article 16. 

        (d)    Meeting Agendas.    Each Party will
disclose to the other proposed agenda items along with appropriate information at least three (3) Business Days in advance of each meeting of the applicable Committee; provided that under
exigent circumstances requiring Committee input, a Party may provide its agenda items to the other Party within a lesser period of time in advance of the meeting, or may propose that there not be a
specific agenda for a particular meeting, so long as such other Party consents to such later addition of such agenda items or the absence of a specific agenda for such Committee meeting. 

        (e)    Working Groups.    From time to time,
the JDC, JCC, JMC or JFC may establish and delegate duties to other committees, sub-committees or directed teams (each, a "Working Group")
on an "as-needed" basis to oversee particular projects or activities. Each such Working Group shall be constituted and shall operate as the JDC, JCC, JMC or JFC, as the case may be,
determines; provided that each Working Group shall have [*] each Party. Working Groups may be established on an ad hoc basis for
purposes of a specific project for the life of a Licensed Product, or on such other basis as the applicable Committee may determine. Each Working Group and its activities shall be subject to the
oversight, review and approval of, and shall report to, the Committee that established such Working Group. In no event shall the authority of the Working Group exceed that specified for the relevant
Committee in this Article 2. 

        (f)    Interactions Between Committees and Internal
Teams.    The Parties recognize that while they will establish Committees and Working Groups for the purpose of the Collaboration, each Party possesses an internal
structure (including without limitation various committees, teams and review boards) that will be involved in administering such Party's activities under this Agreement. Each Committee and Working
Group shall establish procedures to facilitate communications between such Committee or Working Group and the relevant internal committee, team or board in order to maximize the efficiency of the
Collaboration, including without limitation by requiring appropriate members of such Committee to be available at reasonable times and places and upon reasonable prior notice for making appropriate
oral reports to, and responding to reasonable inquiries from, the relevant internal committee, team or board. 

        (g)    Principal Contact Person.    Promptly
following the Effective Date, to provide interim decision-making authority for the Collaboration each Party shall designate to the other Party in writing a principal contact person for addressing
matters within the scope of each Committee (each a "Principal Contact Person"). Prior to the formation of any particular Committee, each Party shall
exercise all the decision-making authority and responsibility that could be exercised following the formation of such Committee by such Party's representatives on such Committee, as provided in this
Article 2; and any and all such decisions shall be binding upon such Committee and the Parties as if such decisions were made by such Committee as duly constituted hereunder. 

        2.8    Alliance Managers.    Each of the Parties shall appoint a single individual to act as that Party's Alliance
Manager. The role of the Alliance Manager is to act as a single point of contact between the Parties to assure a successful Collaboration. The Alliance Managers shall attend all Committee meetings and
support the co-chairpersons of each Committee in the discharge of their responsibilities. Alliance Managers shall be nonvoting participants in such Committee meetings, unless they are also
appointed members of such Committee pursuant to Section 2.7(a), provided, however, that an Alliance Manager may bring any matter to the attention of any Committee if such Alliance Manager
reasonably believes that such matter warrants such attention. 

        Each
Party may change its designated Alliance Manager from time to time upon written notice to the other Party. Any Alliance Manager may designate a substitute to temporarily perform the
functions 

22

 

of
that Alliance Manager by written notice to the other Party. Each Alliance Manager shall be charged with creating and maintaining a collaborative work environment within and among the Committees.
Each Alliance Manager will also: (i) be the point of first referral in all matters of conflict resolution; (ii) coordinate the relevant functional representatives of the Parties in
developing and executing strategies and plans for the Licensed Products in an effort to ensure consistency and efficiency throughout the world; (iii) provide a single point of communication for
seeking consensus both internally within the respective Parties' organizations and between the Parties regarding key strategy and plan issues; (iv) identify and bring disputes to the attention
of the appropriate Committee in a timely manner; (v) plan and coordinate cooperative efforts and internal and external communications; and (vi) take responsibility for ensuring that
governance activities, such as the conduct of required Committee meetings and production of meeting minutes occur as set forth in this Agreement, and that relevant action items resulting from such
meetings are appropriately carried out or otherwise addressed. 

        2.9    Collaboration Guidelines.    

        (a)    General.    It is the intent of the
Parties, in working together to develop and Commercialize the Licensed Product and otherwise as set forth herein, to assign responsibilities for the various operational aspects of the Collaboration to
those portions of their respective organizations which have the appropriate resources, expertise and responsibility for such functions and, consistent with this Agreement, to treat the Licensed
Product as if it were a proprietary product solely of their own organization. In all matters related to the Collaboration, the Parties shall strive to balance as best they can the legitimate interests
and concerns of the Parties and to realize the economic potential of Licensed Product (taking into account the risks and costs of further development and Commercialization). 

        (b)    Independence.    Subject to the terms
of this Agreement, the activities and resources of each Party shall be managed by such Party, acting independently and in its individual capacity. The relationship between Corgentech and BMS is that
of independent contractors and neither Party shall have the power to bind or obligate the other Party in any manner, other than as is expressly set forth in this Agreement. 

        2.10    General Overview of Accounting.    

        (a)   For the purposes of determining Development Costs and Allowable Expenses, any expense allocated by either Party to a
particular category under Development Costs or Allowable Expenses for a particular Licensed Product shall not also be allocated to another category under Development Costs or Allowable Expenses for
such Licensed Product. Each Party agrees to determine Development Costs and Allowable Expenses with respect to Licensed Product using its standard accounting procedures,
consistently applied, to the maximum extent practical as if such Licensed Product were a solely owned product of the Party, except as specifically provided in this Agreement. The Parties also
recognize that such procedures may change from time to time and that any such changes may affect the definition of Development Costs or Allowable Expenses and such other expenses. Where the change is
or would be material to the other Party, the Party proposing to make the change shall provide the other Party with an explanation of the proposed change and an estimation of the effect of the change
on the relevant expense category. Transfers between a Party and its Affiliates (or between such Affiliates) shall not have any effect for purposes of calculating revenues, costs, profits, royalties or
other payments or expenses under this Agreement. 

        (b)   If either Party enters into any agreement with an Affiliate for the provision of materials or services pursuant to this
Agreement, all costs incurred for the provision of such materials or services that are shared by the Parties under this Agreement shall, for purposes of determining Profit and Loss only with respect
to [*], be accounted for on the basis otherwise provided for in this Agreement (e.g., FTEs) and not on the basis of any higher
or lower transfer price in effect 

23

 

between
such Party and such Affiliate. If a Party enters into an agreement with a Third Party for the provision of materials or services pursuant to this Agreement, and if such Party possesses a  [*] or more
ownership interest in such Third Party, then, for purposes of determining Profit and Loss only with respect to the
Co-Promotion Territory, all costs incurred for the provision of such materials or services by such Third Party that are shared by the Parties under this Agreement shall be accounted for on
the basis of (i) the transfer price in effect under the agreement between such Party and such Third Party, if such transfer price is comparable to that which such Third Party agrees to with
other Third Parties in the ordinary course of business, or (ii) otherwise, a price to be negotiated in good faith by the Parties that excludes the contracting Party's profit interest in any
amounts it may realize pursuant to such agreement with such Third Party. Nothing in this Section 2.10 or elsewhere in this Agreement is intended to apply to, modify or affect, or shall be
interpreted to apply to, modify or affect, the actual transfer price imposed in transactions between BMS and any of its Affiliates or any Third Party,  [*] or more of whose voting securities are owned by
BMS, for the purchase and supply of services, materials, Intermediate, E2F
Decoy, Vialed Product, Licensed Device or Final Product. 

        2.11    Compliance with Law.    Each Party hereby covenants and agrees to comply with all laws and regulations
applicable to its activities connected with the development, manufacture and Commercialization (as applicable) of Licensed Product. 

ARTICLE 3  

 DEVELOPMENT AND REGULATORY  

        3.1    Current Status of Development of Licensed Product.    As of the Effective Date, Corgentech is:
(a) conducting Phase III Clinical Trials of the Licensed Product for the CABG and PABG indications, and (b) planning to initiate a Phase I/II Clinical Trial of the Licensed
Product for the AVG indication, in each case using Vialed Product and a Licensed Device. The Parties recognize that additional development (pre-clinical and clinical) of the Licensed
Product may be required. Any such additional development shall be conducted by the Parties, under the direction of the JDC, in accordance with the Development Plan and Annual Plan and Budget, as
described in Section 3.2. 

        3.2    Development Plan and Annual Plan and Budget.    

        (a)   The development of each Licensed Product shall be governed by a comprehensive, multi-year, worldwide
development plan specifying development details for Licensed Product in both the Co-Promotion Territory and the Royalty Territory, including development budgets for the
Co-Promotion Territory and EU ("Development Plan"), and a detailed and specific worldwide plan and a detailed and specific budget (for the
Co-Promotion Territory and EU only) for all development proposed for a particular calendar year for such Licensed Products ("Annual Plan and
Budget"). The Development Plan will include a planned development program to generate the preclinical, clinical and regulatory information required for filing Drug Approval
Applications for Licensed Product and to achieve Approval for Licensed Product [*] and  [*] by the JDC, and will, where practical, include [*]
for the Parties to [*] Licensed Products for each indication. Each Annual Plan and Budget shall be consistent with the
Development Plan as then in effect. The current clinical plan portion of the Development Plan and the development budget for the Co-Promotion Territory and the EU have been agreed upon by
the Parties as of the Effective Date and have been Previously Disclosed. Within [*] of the Effective Date, the JDC shall review
and propose to the JSC for its review, comments [*] a more comprehensive Development Plan, and Annual Plan and Budget covering
the remainder of calendar years 2003 and 2004. The Development Plan shall be updated not less than annually, as well as more frequently as needed to take into account completion, commencement or
cessation of clinical studies not contemplated by the then current Development Plan. The JDC shall assign responsibilities for updating the 

24

 

Development
Plan according to a schedule and using a process that will enable the JDC to submit such Development Plan, as applicable, and the Annual Plan and Budget for a given calendar year after
2004 to the JSC for review [*] JSC no later than [*] of
the immediately preceding Year. In the event that a decision is reached to [*] Licensed Product for a  [*]: such development shall be [*] Party shall have any  [*] to [*] development (other than  [*] and
[*]); all costs  [*] development of such Licensed Product [*] in the
Development Plan budget shall [*] Parties to [*]
development of [*] the Parties mutually agree in their respective discretion to same in writing. 

        (b)   During the term of this Agreement, [*] Party  [*] any Third Party, [*]
 Licensed Product  [*] any [*] Licensed Product  [*] the Development Plan
[*], except that  [*] for the following: 

          (i)  the conduct [*] for the  [*]; provided that the JDC (or a Working Group designated by the JDC) shall have
 [*]; or 

         (ii)  [*] for the development of  [*] in which a Licensed Product is (A) [*]
 in the
country [*], and (B) [*] product and/or in  [*] the product [*]. 

       (iii)  subject to Section 10.6, [*] for the
development of any product [*] as to which [*] or  [*] thereof; provided, that  [*] does [*], does not  [*], or use any [*] that remains  [*] at the time of use (and for which the [*] occurred
for reasons other than by reason of [*]). 

        For
avoidance of doubt, the [*] in clause (i) or (ii) above shall  [*] in [*] and shall  [*] by the Party [*]. 

        3.3    Overruns with Respect to Development Costs.    If the Development Costs for a clinical trial provided for in
the Development Plan exceed those set forth in the budget for such trial in such plan, each Party shall [*] Development Costs
attributable to such trial in excess of such budget to the extent of its share of such costs set forth in [*]; provided, that
(a) if [*] any such trial, the total cost for such clinical trial exceeds  [*] for such trial (the "Permitted
Overrun"), and (b) if any Development
Costs incurred with respect to such trial exceeding the Permitted Overrun ("Excess Costs") are  [*], then the [*] Party shall be  [*] of [*], notwithstanding anything to the contrary in
[*] and none of such [*]. If the  [*] for such clinical trial [*] that the  [*], the matter shall be [*] in accordance with  [*]. Reconciling payments under this
Section 3.3 shall be made on a  [*] basis within [*] after receipt of the other Party's
report under Section 3.8(g) unless a Party [*], in which case such payment shall be  [*] the [*]
provided for in this Agreement. 

        3.4    Lead Development and Regulatory Party.    Subject to the terms of this Agreement, (x) BMS shall be the
Lead Development and Regulatory Party for all clinical development of Licensed Product for the [*], and (y) Corgentech
shall be the Lead Development and Regulatory Party for the clinical development of the Licensed Product [*] described in  [*] for the [*], subject to the  [*] with respect to all [*] that are consistent with the
Development Plan and the terms of this Agreement. With respect to the clinical development of [*] the Licensed Product  [*], (A) [*] shall be the Lead
Development and Regulatory Party for all clinical development in the [*], and (B) in the  [*] Party shall be the Lead Development and Regulatory Party
for all clinical development of same. 

        3.5    Clinical and Regulatory Matters in the Co-Promotion Territory; Recalls and Withdrawals.    

        (a)   All NDAs and Approvals and related filings within the Co-Promotion Territory relating to the Licensed Product
shall be the property of Corgentech and held in the name of Corgentech or its designated Affiliates. Corgentech shall designate a representative to serve as the designated regulatory official for the
Licensed Product in the Co-Promotion Territory for purposes of receiving communications from the FDA. 

        (b)   Through their members on the JDC, Corgentech and BMS shall cooperate in the drafting and review of all submissions to the
FDA (including without limitation the preparations of [*] to the FDA, with  [*] to have primary responsibility for [*]
 for the
Co-Promotion Territory). Each 

25

 

Party
shall promptly provide the other with copies of all written or electronic communications received by it from, or forwarded by it to, the FDA with respect to obtaining or maintaining an Approval
in the Co-Promotion Territory. 

        (c)   Corgentech shall provide notice to BMS within two (2) Business Days of discovery by Corgentech of any event that
triggers an FDA filing requirement that is subject to a deadline imposed by the Act of less than twenty-one (21) days after the discovery of such an event. The
co-chairpersons of the JDC shall discuss in good faith and on a timely basis determine the most effective and expeditious means of responding to such FDA filing requirement. 

        (d)   Corgentech shall provide notice to BMS of any additional FDA requirements which the FDA may impose with respect to the
first Approval with respect to a Licensed Product, (including, without limitation, additional clinical studies) and of all FDA inquiries requiring a response within  [*] of receipt thereof by Corgentech.
Corgentech and BMS shall  [*] between Corgentech and the FDA, and related FDA [*]. 

        (e)   Corgentech shall provide BMS with notice of all meetings, conferences, and discussions (including without limitation, FDA
advisory committee meetings and any other meeting of experts convened by
the FDA concerning any topic relevant to the Licensed Product) scheduled with the FDA concerning any pending NDA or other regulatory matters relating to the Licensed Product within  [*] after Corgentech
receives notice of the scheduling of such meeting, conference, or discussion. BMS shall be entitled to have
reasonable representation present at all such meetings. Corgentech and BMS' members of the JDC shall use reasonable efforts to agree in advance on the scheduling of such meetings and on the objectives
to be accomplished at such meetings, conferences, and discussions and the agenda for the meetings, conferences, and discussions with the FDA. 

        (f)    Each Party shall provide to the other Party on a timely basis copies of all material pre-clinical and
clinical data compiled in support of an NDA or other regulatory filings in the Co-Promotion Territory with respect to the Licensed Product. 

        (g)   Each Party shall have a right to [*] and  [*] of, and [*] correspondence submitted to FDA related
to clinical trial design, all proposed Licensed Product [*] and Licensed Product  [*] with the FDA, and all post-Approval Licensed Product  [*] with the FDA (including the final FDA-approved  [*]), and post-Approval [*]. Notwithstanding
the Parties' [*] set forth above, [*] for the filing of
any NDA for the initial Licensed Product for the CABG and PABG indications. 

        (h)   Any decision to initiate a recall or withdrawal of Licensed Product in the Co-Promotion Territory shall be
made by [*]. Before [*] initiates a recall or
withdrawal, and upon the request for a recall or withdrawal by either Party, the Parties shall promptly and in good faith discuss the reasons therefor and the costs of any such recall or withdrawal
shall be a Regulatory Expense, [*] that the recall or withdrawal  [*] Party in which event (i) such Party [*] for
which [*] and (ii) [*] shall not be  [*]. Under no circumstances shall either Party unreasonably object
to a recall or withdrawal requested by the other Party, and
neither Party shall have any right to object to a recall or withdrawal requested by the other Party [*]. In the event of any
recall or withdrawal, [*] shall implement any necessary action, with assistance from  [*] as reasonably requested by [*]
. 

        (i)    Corgentech and BMS shall have a right to [*] any
regulatory submissions or drug master file (and any data contained therein) for Licensed Product made in any country in the Royalty Territory (including all Approvals) to support regulatory
submissions for Licensed Product in the Co-Promotion Territory and to enable either Party to fulfill its obligations under this Agreement to develop, manufacture (anywhere in the world),
and/or Commercialize the Licensed Product for use in the Co-Promotion Territory. Additionally, Corgentech shall [*]
regulatory submissions for Licensed Product [*]; provided that the foregoing shall not be deemed to  [*] Corgentech [*]

26

 

those
expressly set forth in this Agreement. Each Party will support the other, as may be reasonably necessary, in Regulatory Approvals for the Licensed Product in the Co-Promotion
Territory, including providing necessary documents, or other materials required by law to obtain Regulatory Approvals. In the event that any such regulatory submission or drug master file is
supplemented or modified, each Party agrees to notify the other promptly that supplements or modifications have been made. 

        (j)    Subject to the terms of this Agreement, Corgentech and BMS shall  [*] the Licensed Product [*],
as needed. 

        3.6    Clinical and Regulatory Matters in the Royalty Territory; Recalls and Withdrawals.    

        (a)   Promptly after the Effective Date, Corgentech shall provide to BMS for use in BMS' development efforts for Licensed
Product in the Royalty Territory [*] in Corgentech's possession regarding the Licensed Product that  [*] Licensed Product [*]
 Licensed Product in the Royalty
Territory. During a transition period of [*] after the Effective Date, unless a shorter period is  [*] ("Transition
Period"), Corgentech shall be the Lead Development and
Regulatory Party for both the Co-Promotion Territory and the Royalty Territory while BMS [*] in preparation for it
to become the Lead Development and Regulatory Party for the Royalty Territory. After such period, BMS shall become the Lead Development and Regulatory Party for the Royalty Territory. Transitional
support provided under this Section 3.6(a) by up to [*] Corgentech FTEs shall  [*], and [*] any
transitional support provided  [*] the foregoing on an [*].
 

        (b)   As promptly as practicable after the Transition Period set forth in Section 3.6(a) above and in accordance with
the Development Plan, BMS will [*] regulatory filings in the Royalty Territory, and Corgentech shall cooperate with BMS in
connection with such filings as reasonably requested by BMS and [*], including  [*]. For clarity, BMS shall [*] for any assistance
Corgentech provides under this Section 3.6(b). 

        (c)   All Approvals in the Royalty Territory relating to the Licensed Product shall be deemed the property of BMS and held in
BMS' or its Affiliate's name. 

        (d)   BMS shall provide Corgentech with reasonable advance notice of all meetings (whether face-to-face
or teleconference, and including without limitation any meeting of experts convened by Regulatory Authorities concerning any topic relevant to the Licensed Product) scheduled with Regulatory
Authorities [*] regulatory matters (other than [*]
matters for countries [*]) relating to the Licensed Product within  [*] after the scheduling of such meeting, and advance copies of all related documents
and other relevant information relating to
such meetings or other contacts. Corgentech shall be entitled to have reasonable representation present at all such meetings. In addition, with respect to clinical and regulatory matters in the
Royalty Territory, BMS shall promptly provide Corgentech with (i) [*] of regulatory filings  [*]; (ii) [*] correspondence with any Regulatory
Authority in the [*]; (iii) [*] submissions
matters (e.g., filings related to [*] and proposed [*],
but not [*] submissions) to any Regulatory Authority in the  [*], and the same opportunity to comment in advance on such submissions (and to have its
comments reasonably taken into account
and included) as BMS is provided with respect to the submissions to FDA under Section 3.5; provided, however, that  [*] pursuant to this
Section 3.6(d) shall [*];
(iv) notices of any revocations of Approvals and any Licensed Product recalls or withdrawals in the Royalty Territory; and (v) reasonable responses to inquiries by Corgentech regarding
the Approval and Commercialization processes for the Licensed Product in the Royalty Territory, including without limitation reasonable access to BMS personnel in connection with such inquiries. BMS
shall promptly provide Corgentech with copies of all other material documents and correspondence pertaining to the Licensed Product after they have been submitted to, or received from, Regulatory
Authorities in the EU or Japan (other than [*] matters for countries  [*]). BMS shall provide Corgentech with any English translations of such documents and
correspondence that BMS has 

27

 

produced
for its own use. BMS will use [*] to implement procedures reasonably designed to avoid any failure to provide any
material required to be provided to Corgentech under this Section 3.6(d) and to cure any such failure promptly after its discovery. 

        (e)   BMS shall have a right to [*] any regulatory
submissions or drug master file (and any data contained therein) for Licensed Product made in the Co-Promotion Territory (including all Approvals) to support regulatory submissions for
Licensed Product in the Royalty Territory and to enable BMS to fulfill its obligations under this Agreement to develop, manufacture (anywhere in the world), and/or Commercialize the Licensed Product
for use in the Royalty Territory. Corgentech will support BMS, as may be reasonably necessary, in Regulatory Approvals for the Licensed Product in the Royalty Territory, including providing necessary
documents, or other materials required by law to obtain Regulatory Approvals. In the event that any such regulatory submission or drug master file is supplemented or modified, Corgentech
agrees to notify BMS promptly that supplements or modifications have been made. Further, Corgentech agrees, following NDA Approval, to  [*]; provided that BMS will [*]
. 

        (f)    BMS and its Affiliates shall take the lead [*]
relating to the Licensed Product in the Royalty Territory; provided, that Corgentech shall have the right to attend all meetings with Regulatory Authorities relating to  [*]. Corgentech will provide to
BMS [*] any work
undertaken by it and information developed by or for it pertinent to [*] through the Effective Date and thereafter. BMS shall
provide Corgentech with reasonable advance notice of all such meetings and advance copies of all related documents (including documents to be submitted in connection with  [*]) and other relevant
information relating to such meetings. 

        (g)   Subject to the terms of this Agreement, BMS shall have  [*] to the Licensed Product [*] the Royalty
Territory,
as needed. 

        3.7    Development Diligence.    Corgentech and BMS shall each use Diligent Efforts to develop  [*] Licensed Product in the
Co-Promotion Territory. BMS shall use Diligent Efforts to develop  [*] Licensed Product in the Royalty Territory. Each Party shall inform the JDC and the JCC in writing not less often than  [*] of any significant research results made by or that become known to it related to any E2F Decoy described in
Section 1.37(b) or to any Licensed Device that are not already included in reports presented to an applicable Committee. 

        3.8    Costs of Development; [*].    

        (a)   Subject to Sections 3.8(b), 3.8(c) and 7.7(c), Development Costs paid by either Party or for the account of either
Party with respect to the initial Licensed Products to be developed (i.e., those containing the E2F Decoy described in Section 1.37(a)) shall be borne by the Parties such that BMS bears  [*] of such
costs and Corgentech bears [*] of such
costs. Corgentech shall be entitled to include in the Development Costs reported by it under this Section 3.8(a) those Development Costs accrued in accordance with GAAP  [*] services and/or supplies
to be [*] to the extent  [*], but only [*] during the term of this Agreement.
Additionally, the Parties recognize that Corgentech has purchased from Third Party manufacturers inventory of certain Intermediate components  [*] that may be used to manufacture Licensed Product for
 [*]. Corgentech may include in [*] pursuant to this
Section 3.8(a) the amounts it paid to such Third Party manufacturer for those amounts of such Intermediate inventory, [*]
the manufacture of such Licensed Product [*] ("Pre-Paid Inventory
Costs"). 

        (b)   If BMS' share of Development Costs for such Licensed Products for CABG, PABG and AVG  [*], then [*];
provided, however, that in no event shall  [*] at such time; provided further that if the foregoing  [*] any amount it [*]
, then  [*]. BMS' share of Development Costs, for the purpose of
[*], shall be based on those Development Costs [*] in
accordance with relevant approved Development Plans and [*] charged as provided in Section 3.8(a),  [*] in accordance with 

28

 

the
then current Development Plan and related budget therefor, for developing Licensed Products for such indications in the [*]. 

        (c)   If the JDC or JSC terminates development of Licensed Products for AVG prior to the completion of the trials set forth in
the Development Plan to support a Drug Approval Application therefor in the Co-Promotion Territory or EU, the [*]
under the Development Plan for Licensed Products for AVG for the Co-Promotion Territory and the EU (i.e., [*] for
further development activities with respect to AVG). Notwithstanding the foregoing, if the Parties mutually agree to resume development of AVG under this Agreement at any time after such termination,  [*] set forth in this Section 3.8(c). 

        (d)   Notwithstanding the foregoing, if BMS' share of actual Development Costs for development of Licensed Products for CABG,
PABG and AVG [*] as provided in Section 3.8(b), and  [*] as permitted in Section 3.8(b), then within  [*] after the last to occur of Launch of Licensed Products for CABG, PABG and AVG in the Co-Promotion Territory and
the EU, and the Parties' cessation of all development under the Development Plan for all such indications in the Co-Promotion Territory and the EU,  [*] and [*] to Corgentech. The JFC shall establish a
mechanism for the Parties [*] and for BMS [*] to which
it is [*] as required under this Section 3.8(d). 

        (e)   BMS shall bear [*] of the costs of all
pre-clinical and clinical studies required to obtain Approval for a Licensed Product in countries in the Royalty Territory that are included in the Development Plan  [*] is subsequently [*], then  [*] shall be [*] of the Development Plan. It is
understood that the inclusion of clinical trial information in a filing for Licensed Product made [*] with respect to a study
conducted for purposes of seeking an Approval in a country outside [*], where such inclusion is made  [*], shall not [*]
 or  [*]. 

        (f)    Each Party shall record and account for its FTE effort for the development of Licensed Product, and shall report such FTE
effort to the JDC on a Quarterly basis. FTEs shall be charged to Development Costs for a given personnel category as Previously Disclosed. Each Party shall calculate and maintain records of
Development Costs incurred by it (i) in the case of Corgentech, [*], and (ii) in the case of BMS,  [*]. As provided in Section 3.8(g),
Corgentech and BMS shall each report to the other their Development Costs and shall
seek to resolve any questions related to such reports. The JFC shall facilitate any reporting hereunder. Each Party shall have the right,  [*], to audit the other Party's records to confirm the accuracy
of the other Party's costs and reports as provided in
Section 9.2. 

        (g)   Each Party shall report to the other Party within  [*] after the end of each Quarter with regard to Development Costs incurred during such Quarter
by such Party for Licensed
Product. Such report shall specify in reasonable detail all expenses included in such Development Costs during such Quarter and shall be accompanied by invoices or other appropriate supporting
documentation for any payments to Third Parties that [*] as may be determined by the JFC. Within  [*] after the end of each Quarter or, for the last Quarter
in a Year, within  [*] after the end of such Year, the Party that has paid less than its share of such Development Costs set forth in this
Section 3.8 shall make a reconciling payment to the other Party to achieve the appropriate allocation of Development Costs provided in this Section 3.8. Each Party shall report to the
other Development Costs incurred by it for comparison against the Development Plan budget, [*], and each such report shall also  [*]. The Parties shall seek
to resolve any questions related to such accounting statements within  [*] following receipt by each Party of the other Party's report hereunder. 

        (h)   Regulatory filing fees (including without limitation user fees and similar expenses paid to Regulatory Authorities)
incurred with respect to Licensed Products [*] shall [*]
and [*] Allowable Expenses ([*]). Regulatory filing fees
(including without limitation user fees and similar expenses 

29

 

paid
to Regulatory Authorities) incurred with respect to Licensed Products in the Royalty Territory shall be [*] and shall  [*]. 

        3.9    Development of Additional Indications or Other Licensed Products within the Field.    

        (a)   The Development Plan and the Parties' efforts to develop Licensed Product are intended to focus initially on the
development of Licensed Product consisting of E2F Decoy (as described in Section 1.37(a)) and a Licensed Device existing as of the Effective Date ("Existing Licensed
Products") for the CABG, PABG and AVG indications. If the Parties mutually decide to develop an Existing Licensed Product for other indications within the Field or to develop
Other Licensed Products, then
(i) [*] related Development Costs for such development of such Existing Licensed Product for such other indications and
such Other Licensed Products, in each case for the Co-Promotion Territory and the EU, [*] the CABG, PABG and AVG
indications, (ii) Profits and Losses for such development of such Other Licensed Products shall [*] provided in this
Agreement [*] the CABG, PABG and AVG indications and (iii) the Lead Development and Regulatory Party in the Territory
shall be as determined pursuant to Section 3.4. BMS shall [*] for the Commercialization of such Existing Licensed Product
for such other indications and such Other Licensed Products, if any, in the Royalty Territory, as provided in this Agreement. Net Sales in the Royalty Territory of Existing Licensed Products for any
additional indication shall [*] Existing Licensed Product for CABG, PABG and AVG for purposes of  [*], and worldwide Net Sales of Existing Licensed Products
for any additional indication shall be  [*] Existing Licensed Product for CABG, PABG and AVG for purposes of  [*]. Royalties payable to Corgentech for Other
Licensed Products shall be
[*] for the [*], and  [*] shall be [*] with respect to any
such Other Licensed
Product. 

        (b)   Before initiating studies of additional indications for Existing Licensed Products (other than CABG, PABG and AVG) or of
Other Licensed Product, the Parties will agree in writing on [*]) BMS shall  [*] development of the Existing Licensed Product for additional indications or
of the Other Licensed Product, taking into
account the [*]; provided, that (i) if the  [*] (based on [*] set forth in Section 3.8(b)
above) prior to the time the Parties so agree on [*], then  [*] additional indication or Other Licensed Product may  [*]
 of the [*], and (ii) if the  [*] prior to the time the Parties so agree on [*],
then  [*] additional indication or Other Licensed Product may  [*] of the [*]. In the event that the Parties
mutually
decide to out-license the opportunity to develop or Commercialize (A) Existing Licensed Products for an additional indication within the Field or (B) an Other Licensed
Product, then the Parties shall cooperate to effect such out-license (but only on terms and conditions that are mutually acceptable to both Parties) and shall set forth in a written
amendment or supplement to this Agreement the mechanism by which they shall [*] of such out-license. 

        (c)   If the Parties (i) do not mutually agree to develop and do not out-license such opportunity in
accordance with Section 3.9(b), or (ii) are unable to mutually agree upon a Development Plan and associated budget or (iii) are unable to agree  [*], for any additional indications for
Existing Licensed Products (other than CABG, PABG and AVG) or Other Licensed Product,
then any such additional indications for Existing Licensed Products (other than CABG, PABG and AVG) or Other Licensed Product shall  [*] Third Party any intellectual property rights Controlled by it to
 [*] (or otherwise [*]). 

        3.10    Regulatory Exclusivity.    The JDC shall oversee the process of applying for and securing exclusivity rights
that may be available under regulatory laws of countries in the Territory. Each Party shall cooperate with the other to take such reasonable actions to assist the other Party in obtaining such
exclusivity rights in each country, as directed by the JDC. 

        3.11    Coordination of Clinical Strategy.    The JDC shall discuss the clinical strategy for developing Licensed
Product at each meeting of the JDC, to determine whether either Party's plans for developing 

30

 

Licensed
Product in the countries in the Territory in which it is a Lead Development and Regulatory Party could detrimentally affect the other Party's plans for developing and Commercializing Licensed
Product in the countries in the Territory for which it is the Lead Development and Regulatory Party. [*] a clinical strategy
that [*] the other Party's plans for developing and Commercializing Licensed Product in the territory for which it is the Lead
Development and Regulatory Party [*] the JSC. If the  [*], then it shall [*] the entire Territory in a manner
consistent with the terms of this Agreement, with priority given to [*] countries that have the most significant commercial
value or potential. 

        3.12    Pharmacovigilance; Inquiries.    Subject to the terms of this Agreement, within  [*] of the Effective Date, BMS and
Corgentech (under the guidance of their respective Pharmacovigilance Departments or
equivalent thereof) shall discuss and develop mutually acceptable guidelines and procedures for the exchange, receipt, recordation, communication (as between the Parties) and exchange of adverse event
information and all other information regarding matters covered in this Section 3.12. Until such guidelines and procedures are set forth in an agreement between the Parties (the
"Data Exchange Agreement"), the terms of paragraphs (a)—(d) of this Section 3.12 shall apply. Following the execution of the Data
Exchange Agreement, paragraphs (a)—(d) of this Section 3.12 shall have no further force and effect, unless and until the Data Exchange Agreement is no longer in force and effect. It
is anticipated that such guidelines and procedures will include provisions for the direct reporting to [*], the recording and
maintenance by BMS of records of all adverse events reported with respect to Licensed Products [*], and the establishment of  [*] by which Corgentech
[*] to comply with applicable
laws, rules and regulations and to perform its responsibilities under this Agreement. The Parties' costs incurred in connection with receiving, recording, reviewing, communicating, reporting and
responding to adverse events shall be Regulatory Expenses and may be included as an element of [*] (to the extent  [*] Licensed Products) or [*], as applicable,  [*]. 

        (a)   Each Party shall notify the other Party within three (3) Business Days after it receives information about the
initiation of any investigation, review or inquiry by any Regulatory Authority concerning the use, distribution, promotion or sale of the Licensed Product. 

        (b)   The JDC (in consultation with each Party's Pharmacovigilance Department or equivalent thereof) shall develop written
procedures governing the surveillance, receipt, evaluation, and reporting of Licensed Product related complaints and adverse drug experiences, including the maintenance of an  [*] that will be available
to the Parties [*]. The
implementation of such procedures will be subject to the oversight of the JDC. Corgentech shall be the Lead Development and Regulatory Party responsible for the surveillance, receipt, evaluation, and
reporting of product complaints and reports of adverse drug experiences for the Licensed Product in the Co-Promotion Territory. After Corgentech's  [*] for each country in the Royalty Territory, BMS
shall be responsible for the surveillance, receipt, evaluation, and reporting
of product complaints and reports of adverse drug experiences for the Licensed Product in such country. The Parties shall exchange pharmacovigilance data with each other as will be outlined in the
Data Exchange Agreement, which shall include, but not be limited to, the following obligations: The Parties shall coordinate with each other the reporting of adverse drug experiences, establish a
mechanism for recording adverse drug experiences and maintain occurrences of such adverse drug experiences on [*] by BMS. BMS
will grant to Corgentech [*] license to [*] to enable to
Corgentech to [*] the term of, and solely in [*]
obligations of the Parties under, this Agreement. 

        (c)   BMS shall assist Corgentech in the surveillance, receipt, evaluation, and reporting of product complaints and reports of
adverse drug experiences for the Licensed Product in the Co-Promotion Territory. 

        (d)   Each Party shall (x) notify the other of any complaint relating to Licensed Product received by it in reasonable
detail and promptly upon receipt of the complaint, and, in any event 

31

 

each
Party shall provide information to the other Party of adverse events, and (y) maintain a record of all complaints it receives. 

        3.13    Right to Audit Third Parties.    To the extent permitted by applicable law, each Party shall use Diligent
Efforts to ensure that the other Party's authorized representatives and Regulatory Authorities may, during regular business hours, (a) examine and inspect its facilities or, subject to any
Third Party confidentiality restrictions or obligations, the facilities of any subcontractor or any investigator site used by it in the performance of development of a Licensed Product, and
(b) subject to applicable law and any Third Party confidentiality restrictions or obligations, inspect and copy all data, documentation and work products relating to the activities performed by
it, the subcontractor or investigator site, including, without limitation, the medical records of any patient participating in any clinical study. This right to inspect and copy all data,
documentation, and work products relating to a Licensed Product may be exercised at any time during the term of this Agreement (subject to each Party's record retention policies then in effect), or
such longer period as shall be required by applicable law. 

        3.14    Notice of Investigation or Inquiry.    Each Party shall notify the other Party within two (2) Business
Days after it receives information about the initiation of any investigation or inquiry by any Regulatory Authority concerning any improper use, distribution, promotion or sale of the Licensed
Product, not otherwise described above. 

ARTICLE 4  

 COMMERCIALIZATION IN ROYALTY TERRITORY  

        4.1    Lead Marketing Party.    BMS shall be the Lead Marketing Party in the Royalty Territory. BMS shall be  [*]
Commercialization of Licensed Product in the Royalty Territory and shall keep Corgentech reasonably informed of its
activities in the Royalty Territory through the JCC; provided, that [*] must be
consistent with the terms of this Agreement. Corgentech agrees that BMS shall have the right to appoint distributor(s), [*]
under this Agreement in the Royalty Territory [*], provided that BMS notifies Corgentech of such appointment and BMS remains
fully responsible for the compliance by such appointees with the obligations of BMS under this Agreement delegated to them. 

        4.2    Diligence for Commercialization of Licensed Product in Royalty Territory.    BMS shall have  [*] for Commercializing
Licensed Product in the Royalty Territory; provided,
that any such decisions must be consistent with the terms of this Agreement. BMS shall use Diligent Efforts to Commercialize Licensed Product in the Royalty Territory, including without limitation  [*];
provided, that BMS shall  [*] Licensed Product in any country (and BMS will [*])
where the Approval [*] or where the [*] in a country is  [*] Commercialization in such country (it being
understood that, before making any such decision  [*] Licensed Product in any such country for any such reason, BMS will fully discuss same with Corgentech through the JCC). BMS
Sales Representatives in any country [*] will devote not less than  [*] of their business time to selling the Product during each of the  [*] in such countries. BMS shall bear [*] of
Commercializing Licensed Product in the Royalty Territory. BMS shall [*] for Licensed Product in the Royalty Territory, subject
to the terms of this Agreement and shall make regular reports of its Commercialization efforts in such territory to the JCC. 

        4.3    Sales and Distribution in Royalty Territory.    Subject to the first proviso set forth in Section 4.2,
BMS shall be solely responsible for invoicing, booking sales, establishing all terms of sale (including without limitation pricing and discounts), and warehousing and distributing all Licensed Product
in the Royalty Territory, and shall perform all related services. BMS shall also be solely responsible for handling all returns, recalls or withdrawals in accordance with Section 3.6, order
processing, invoicing and collection, distribution, and inventory and receivables in the Royalty Territory. If Corgentech receives any orders for the Licensed Product for the Royalty Territory, it
shall refer such orders to BMS. 

32

 

ARTICLE 5  

 COMMERCIALIZATION IN CO-PROMOTION TERRITORY  

        5.1    Principles of Co-Promotion.    Subject to the terms of this Agreement, the Parties shall jointly
Co-Promote Licensed Product in the Co-Promotion Territory. [*] shall be the Lead Marketing Party in the
Co-Promotion Territory. [*] shall be responsible for all day-to-day decisions regarding
Commercialization of Licensed Product in the Co-Promotion Territory. Each Party shall have the right to participate in the planning and conduct of marketing activities with respect to
Licensed Product through the JCC. 

        5.2    Diligence of Commercialization of Licensed Product in Co-Promotion Territory.    Corgentech and
BMS shall each use Diligent Efforts to Co-Promote and otherwise Commercialize Licensed Product in the Co-Promotion Territory. 

        5.3    Marketing Plan and Budget; Pre-Launch Marketing Plan and Budget.    The Commercialization of each
Licensed Product shall be governed by a comprehensive plan specifying Commercialization details for Licensed Products in the Co-Promotion Territory, and a detailed and specific budget for
all such efforts (the "Marketing Plan and Budget"). Not later than [*] after the
Effective Date, the Parties shall prepare and deliver to the JCC a preliminary pre-launch marketing plan for the Co-Promotion Territory (the
"Pre-Launch Marketing Plan and Budget") covering the period of time from the Effective Date through the  [*] following Launch of Licensed Product in the
Co-Promotion Territory. The final Pre-Launch Marketing
Plan and Budget shall contain a budget approved by JCC for such pre-Launch activities and shall specify the allocation of such activities between the Parties. The JCC shall propose, and
the JSC shall approve, all Pre-Launch Marketing Plans and Budgets, and all Marketing
Plans and Budgets for the Co-Promotion Territory; provided, that in the event of a dispute on any matter pertaining to the Pre-Launch Marketing Plan and Budget, the Marketing
Plan and Budget, or Commercialization where the JSC cannot resolve the matter, the matter shall be resolved, at the election of either Party, as provided in Section 16.1. Within  [*] of receipt of
positive data from each of the [*]
investigating Licensed Product with respect to the CABG and PABG indications [*], the JCC shall submit a final Marketing Plan
and Budget for Licensed Products for such indication to the JSC based upon the Pre-Launch Marketing Plan and Budget covering the period of Launch through the following  [*]. For each calendar year
following Launch of each Licensed Product in the Co-Promotion Territory, the JCC shall
submit to the JSC an annual Marketing Plan and Budget for Licensed Product. Each Pre-Launch Marketing Plan and Budget and each Marketing Plan and Budget will describe the plan for
Commercialization of the Licensed Product in the Co-Promotion Territory, including, as applicable: 

        (a)   general strategies for the promoting, detailing and marketing of the Licensed Product and allocation of responsibilities
for marketing activities; 

        (b)   subject to Section 5.5(b), the [*] of each
Party to [*] and the [*] promotion of the Licensed
Products, nature of promotional activities and Licensed Product sampling activities of each Party, if any; provided, that Corgentech's obligations with respect to the foregoing shall be consistent
with Section 5.5; 

        (c)   a plan for the marketing, promotion and sale of Licensed Products to managed care providers; 

        (d)   market and sales forecasts; 

        (e)   [*]; 

        (f)    advertising, public relations and other promotional programs, including professional symposia and speaker and
peer-to-peer activity programs to be used in the Co-Promotion of the Licensed Product; provided, that any efforts that a Party may be required to undertake in 

33

 

connection
therewith shall be consistent with the Pre-Launch Marketing Plan and Budget or the Marketing Plan and Budget, as applicable, and shall be  [*] the Parties; 

        (g)   [*] of Licensed Product; and 

        (h)   forecast Profit or Loss statement for the relevant time period covered by such Marketing Plan and Budget or
Pre-Launch Marketing Plan and Budget. 

        Each
Marketing Plan and Budget subsequent to the first Marketing Plan and Budget described above shall be reviewed and approved by the JCC and JSC by  [*] of the calendar year preceding the calendar year to
which such Marketing Plan and Budget relates. The Marketing Plans and
Budgets shall be updated on an ongoing basis as needed. The Parties have estimated that the marketing of the Licensed Product in the Co-Promotion Territory will require such FTEs from each
Party as are set forth in Exhibit G of the Disclosure Letter. 

        5.4    Overruns with Respect to Sales and Marketing Costs.    In the case where a Party has incurred expenses in
performing its responsibilities for a specifically identifiable activity or project under the Pre-Launch Marketing Plan and Budget or Marketing Plan and Budget in the
Co-Promotion Territory that (i) exceed the amount set forth therein with respect to such activities (A) during the  [*] period following the Effective Date, by more than  [*] or (B) after the [*] of the Effective Date,
by more than [*], and (ii) are [*] of such Party,
then such Party shall [*] in excess of the relevant budget and the other Party shall  [*] the excess costs [*] such excess costs be  [*] the other Party [*]. 

        5.5    Sales Efforts and Sales Representative Deployment For Licensed Product in the Co-Promotion
Territory.    

        (a)   In each calendar year, [*] shall contribute, as
nearly as practicable, [*] of the total selling effort (measured by the amount of time that each Party's Sales Representatives
devotes to the selling of the Licensed Product on an FTE basis) that the JCC determines shall be provided for Licensed Product in the Co-Promotion Territory;  provided, that each Party's Sales
Representatives shall participate [*]. The
Parties shall also participate [*], as nearly as practicable, in all other selling efforts such that each Party provides  [*] of promotional support.

        (b)   The Pre-Launch Marketing Plan and Budget and the Marketing Plan and Budget shall set forth the number of
Sales Representatives to be used and the proportion of their time to be devoted to promotion of the Licensed Products The JCC shall  [*] the Parties' respective sales forces in accordance with one of the
following strategies: 

          (i)  By [*] (e.g.,  [*] Sales Representatives might make sales calls on [*]

and [*] Sales Representatives might make sales calls on  [*]); or 

         (ii)  By [*] (e.g.,  [*] Sales Representatives might make sales calls on [*]

and [*] Sales Representatives might make sales calls on  [*]); or 

       (iii)  By [*]. 

        (c)   Each Party shall record the number of Sales Representatives assigned to the Licensed Products and the proportion of their
time devoted to promotion of the Licensed Products, the number of sales calls made by its Sales Representatives in the aggregate during each calendar month for Licensed Product in the
Co-Promotion Territory, and shall specify in such records the nature of such sales calls in accordance with instructions and procedures to be promulgated by the JCC. Such records shall be
maintained for at least [*]. Within [*] after the end of
each Quarter, each Party shall report to the JCC such information regarding the selling efforts provided by such Party for Licensed Product in the Co-Promotion Territory and the percentage
of time devoted by its Sales Representatives to such selling efforts in accordance with such instructions and procedures as may be specified by the JCC from time to time. Unless otherwise specified by
the JCC, such 

34

 

internal
reporting shall be determined in accordance with applicable self-reporting procedures customarily employed by such Party for other similarly detailed and similarly reported
pharmaceutical products to the target physician audience, consistently applied. Any other reports required by the JCC relating to a Party's sales activities under this Agreement shall apply to both
Parties equally and shall be provided within [*] (or within such other period as the Parties may mutually agree) after the
applicable reporting period. Each Party shall have the right, at its own expense, to audit the other Party's records to confirm the accuracy of such report as provided in Section 9.2. 

        (d)   The FTE Costs for Sales Representatives in a given Quarter shall be calculated based upon (i) the applicable FTE
rates, and (ii) the percentage of time to be devoted by each such Party's Sales Representatives in such Quarter, as such percentage is determined by the JCC in accordance with
Section 5.5(a) and (c) on a Quarterly basis. During the [*] of the initial Licensed Product in the
Co-Promotion Territory, each Sales Representative assigned to the Licensed Product in the Co-Promotion Territory shall devote  [*] of his/her time to such Licensed Product; thereafter, the amount of time
to be devoted by each Party's Sales Representatives
in support of the Licensed Product shall be [*] Section 5.5(a) and (c). 

        (e)   All Corgentech Sales Representatives shall meet the minimum education, training, and experience requirements set forth in
Exhibit C attached hereto. 

        (f)    The Pre-Launch Marketing Plan and Budget and the Marketing Plan and Budget shall set forth the number of
Medical Liaisons to be provided by each Party and the specific activities for which such persons shall be responsible. 

        5.6    Training in Co-Promotion Territory.    

        (a)   Until the [*] (on a product by product basis) in
the Co-Promotion Territory [*] shall provide  [*] sales training with respect to the Licensed Product for  [*] Sales Representatives assigned to sell the Licensed Product in the Co-Promotion Territory.  [*] incurred in connection with such training for such  [*] Sales Representatives shall [*]. Such training
program is subject to revision from time to time [*], provided that the  [*] training provided by [*] shall
be the  [*] training that [*] sales forces that are assigned to
the Licensed Product. Each Party will schedule its training for its Sales Representatives in sufficient time to ensure that the necessary Sales Representatives are fully trained prior to Launch. 

        (b)   Corgentech shall be responsible for providing [*]
training to [*] Sales Representatives after [*] (on a
product by product basis). During such time period, each Party shall coordinate through the JCC with respect to any training that such Party plans to provide and all costs incurred by the Parties with
respect to such training shall be included in Sales and Marketing Costs. Such training shall be consistent with the direction of the JCC, the Marketing Plan and Budget, and with the product training
materials and program developed by both Parties for training their respective sales force for the promotion of the Licensed Product in the Co-Promotion Territory as further described in
Section 5.6(e). Such training shall also include training on the proper handling and reporting of adverse drug experiences encountered for the Licensed Product and on timely reporting  [*] of
inquiries relating to the Licensed Product and other requests for information related to the Licensed Product. 

        (c)   BMS and Corgentech shall comply with any training plan for the Licensed Product contained in the applicable
Pre-Launch Marketing Plan and Budget or Marketing Plan and Budget, or otherwise provided by it to its Sales Representatives, and  [*] by either Party for such compliance shall [*]. All
expenses incurred by either Party and their personnel associated with [*] shall  [*]. 

35

 

        (d)   If a Party organizes Co-Promotion-related meetings of its employees (such as periodic briefings of its Sales
Representatives), it will make reasonable efforts to keep the Licensed Product-related portions of such meetings independent from other matters and to give the other Party advance notice of such
meetings. If requested by the other Party and agreed to by the organizing Party, the Party organizing such meeting will [*] such
meetings or such portions thereof that relate to the Co-Promotion of Licensed Product. 

        (e)   The Parties will [*] the content of the
product-specific training materials for the Licensed Product. At the initial training session for Sales Representatives, [*]
reasonable quantities of training materials from its existing supplies to enable the training of its Sales Representatives, and such costs will be included in Sales and Marketing Costs. The JCC shall
review the product-related training materials from time to time and make recommendations for any revisions and updates thereto as the JCC may deem appropriate, with the goal of ensuring that each
Party is providing substantially the same quality and level of product-specific training to its Sales Representatives. 

        (f)    Each Party shall be [*] for general sales
training of its Sales Representatives, and [*] shall not  [*]. 

        5.7    Co-Promotion Advertising and Promotional Materials.    

        (a)   The Parties shall utilize only promotional, advertising, communication and educational materials relating to the Licensed
Product in the Co-Promotion Territory and only conduct promotional activities for the Licensed Product that, in each case, have been included in the approved Pre-Launch
Marketing Plan and Budget or Marketing Plan and Budget or are otherwise approved by the JCC. The JCC shall [*] written
advertising and promotional materials relating to Licensed Product in the Co-Promotion Territory which shall be consistent with the relevant the Pre-Launch Marketing Plans and
Budgets and Marketing Plans and Budgets approved by the JCC and the JSC, with applicable law, and with the Licensed Product labeling approved by the FDA. In all written or visual materials related to
Licensed Product which identify either of the Parties, the Parties will be [*] the medical communities  [*] the Licensed Product. All such written and
visual materials and all documentary information, promotional material, and oral presentations (where practical) regarding the promotion of the Licensed Product will state this arrangement and will  [*]
with [*], as permitted by applicable law. In
addition, as a prominent part of each communication with customers and other Third Parties, the Call Center that the JCC establishes in the Marketing Plan and Budget shall clearly identify the
Licensed Product [*]. In the event of a shortfall in the quantity of promotional and educational materials and literature
available for distribution by the Parties Sales Representatives, the available materials and literature shall be divided between the Parties' respective sales forces in proportion to the number of
Sales Representative FTEs required of each Party. 

        (b)   Each Party agrees that: 

          (i)  it will instruct its Sales Representatives to use, and will use Diligent Efforts to monitor its Sales Representatives to
ensure that such Sales Representatives use, only promotional materials, Licensed Product samples, and literature approved for use under Section 5.7(a) for the promotion of the Licensed Products
in the Co-Promotion Territory; 

         (ii)  that any promotional material, promotional literature, and Licensed Product samples supplied to it shall not be
misbranded, changed, altered or adulterated prior to their distribution or use by such Party or its Sales Representatives; and 

36

 

       (iii)  it will instruct its Sales Representatives to do the following, and will use Diligent Efforts to monitor its Sales
Representatives so that such personnel do, the following: 

        (1)   limit claims of efficacy and safety for Licensed Product to those that are consistent with approved promotional claims
in, and not add, delete or modify claims of efficacy and safety in the promotion of the Licensed Products in any respect from those claims of efficacy and safety that are contained in, the
Pre-Launch Marketing Plan and Budget and Marketing Plans and Budgets approved by the JCC and the JSC, with applicable law, and with the Licensed Product labeling approved by the FDA; 

        (2)   not make any changes in promotional materials and literature provided by BMS, and use promotional materials, literature,
and samples within the Co-Promotion Territory in a manner that is consistent with the Pre-Launch Marketing Plan and Budget and Marketing Plans and Budgets approved by the JCC
and the JSC, with applicable law, and with the Licensed Product labeling approved by the FDA; and 

        (3)   promote the Licensed Products in adherence in all material respects with applicable legal requirements, as well as the
American Medical Association Gifts to Physicians From Industry Guidelines. 

        (c)   All written, electronic and visual communications provided by a Party to a majority of its Sales Representatives
detailing the Licensed Products for use by such personnel regarding Licensed Product strategy, positioning or selling messages will be  [*]; provided, that
 [*], need not be [*] the Licensed Product labeling
applicable to [*] has been [*] date. 

        (d)   During the term of this Agreement, each Party shall provide the other with access to primary and secondary (audited and
non-audited) market research data for the Licensed Products reasonably promptly if and after the same are made available to a Party and so long as such Party has the lawful right to
provide same; provided, that the other Party shall hold such information as Confidential Information of the providing Party, and shall have executed
such confidentiality agreement as may be requested by any Third Party provider of such information with respect to such disclosure of such information. 

        (e)   Medical education programs for the Licensed Products in the Co-Promotion Territory shall be coordinated by
the JCC. 

        5.8    Sales and Distribution in Co-Promotion Territory.    Subject to Corgentech's rights to
Co-Promote Licensed Products and the other terms and conditions of this Agreement, BMS is hereby appointed Corgentech's exclusive distributor for Licensed Products in the Field in the
Co-Promotion Territory. BMS shall hold title to the Licensed Products in the Co-Promotion Territory until sale to customers, and BMS shall be responsible for invoicing and
booking sales for, warehousing and distributing all Licensed Product in the Co-Promotion Territory and shall perform related distribution activities. Corgentech may not accept orders for
Licensed Products or make sales for its own account or for BMS' account. If Corgentech receives any orders for Licensed Product, it shall refer such order to BMS for acceptance or rejection. For all
Licensed Product, BMS shall also be solely responsible for handling all returns, recalls in accordance with Section 3.5, order processing, invoicing and collection, distribution, and inventory
and receivables. Subject to the Pre-Launch Marketing Plan and Budget, Marketing Plan and Budget and the terms of this Agreement, BMS shall  [*] the terms and conditions with respect to [*]
Licensed Product in the Co-Promotion Territory, including any terms and conditions relating to or affecting the [*]
Licensed Product will be [*] to [*]; any  [*] attributable to [*] of Licensed Product;  [*] to be granted or refused; provided, however, that BMS will  [*] relating to [*]) and shall  [*] on such issues. 

        5.9    Incentive Plans for Sales Representatives.    Each Party shall establish and implement a target bonus or sales
incentive program whereunder such Party's Sales Representatives are compensated for 

37

 

their
efforts with respect to Licensed Product in the Co-Promotion Territory in a manner consistent with the principles set forth in Sections 2.9 and 5.1 and with such Party's other
programs for a similar nature product (and taking into consideration the commercial life cycle of the Licensed Product). All such programs shall be in compliance with all applicable laws, rules and
regulations. Commencing at least [*] prior to filing of an NDA, and on an annual basis thereafter, the Parties shall exchange
sufficient details on the target compensation, bonus structure, and benefits expected to be provided to their respective Sales Representatives with respect to the Licensed Product promoted by such
individuals. In the event that either Party is concerned that such target bonus incentives for the Licensed Product are not reasonably comparable, then the JCC will discuss the issue at its next
meeting in a good faith attempt to help resolve any such issues. Subject to the foregoing each Party shall retain final control over all decisions relating to compensation and bonus incentives for its
Sales Representatives. Each Party will utilize data provided by [*] (or another recognized service provider's data reasonably
acceptable to the other Party) to determine the actual performance of its Sales Representatives for purposes of establishing compensation and bonuses. 

        5.10    Sales Representatives.    The following provisions shall apply to each Party's Sales Representatives in the
Co-Promotion Territory: 

        (a)   Except as otherwise provided in this Section 5.10, each Party's Sales Representatives shall be  [*] Party or its Affiliates or [*] independent
contractor as permitted below. Each Party will treat its Sales Representatives employed by it and its Affiliates as its (or its Affiliate's) own employees for all purposes, including, but not limited
to federal, state and local tax and employment laws. 

        (b)   Each Party may use independent contractors (as engaged  [*]) to provide up to [*] of the total Sales
Representative FTEs to be provided by it pursuant to this Agreement and may use such independent contractors to comprise up to  [*] of its Sales Representatives for Licensed Products;  [*] use of any independent contractor to serve as a Sales Representative shall  [*]. 

          (i)  Each Party shall [*] any independent contractors
who serve as such Party's Sales Representatives for any breach of this Agreement or failure to perform such delegated duties by independent contractors (as well as for any breach by such independent
contractors of its agreement with the relevant Party, as the case may be), and shall use Diligent Efforts to cause such independent contractor to perform his services as a Sales Representative in
compliance with the provisions of this Agreement. All compensation, reimbursement of costs and other payments to be
made to any of such independent contractors shall be solely a matter between the Party engaging such independent contractor and such independent contractor. 

         (ii)  For geographical reasons, each Party may use part-time employee Sales Representatives to sell the Licensed
Products on behalf of such Party, provided that such part-time employees shall not constitute more than [*] of all
Sales Representatives provided by such Party pursuant to this Agreement to sell the Licensed Products. 

        (c)   Each Party will use Diligent Efforts to hire and/or allocate Sales Representatives to the Commercialization of Licensed
Products, to provide full training ([*] training) to such Sales Representatives, to deploy such number of Sales Representatives
as may be necessary to fulfill its duties under the Pre-Launch Marketing Plan and Budget and Marketing Plan and Budget as required thereunder, and, consistent with its normal business
practices, to minimize turnover of its Sales Representatives. 

        (d)   In the event that information comes to a Party's attention that provides it a reasonable basis for such Party  [*] may have (i) [*] applicable Laws, or
(ii) [*], such Party shall have the right to request that the other Party immediately  [*] of such [*],
and to exercise any other rights or
remedies available to such Party under this Agreement, at law or in equity. The other Party 

38

 

shall
promptly use Diligent Efforts to evaluate and resolve such issue in accordance with its policies or as it may otherwise deem appropriate, shall keep the reporting Party informed of the progress
of, and information learned during, its evaluation, and shall provide the reporting Party [*] toward resolution of the matter,
within [*] after the reporting Party first brought such information to the other Party's attention. 

        (e)   Unless exempted by law from such compliance, each Party will comply with all applicable laws rules and regulations
applicable to the hiring, employment, and discharge of its Sales Representatives. Each Party represents to the other that such Party is an equal opportunity employer and does not discriminate against
any person because of race, color, creed, age, sex, or national origin. 

        (f)    Each Party's Sales Representatives shall execute, or shall previously have executed, an agreement with such Party, that
includes, among other terms, terms requiring that the individual: 

          (i)  agrees to perform his or her obligations as a Sales Representative and to use and account for Licensed Product samples
as required by law including without limitation, the Prescription Drug Marketing Act of 1987 and any applicable related final and proposed FDA regulations, and this Agreement; and 

         (ii)  agrees to perform his/her duties as a Sales Representative in accordance with such Party's internal policies, a copy of
which is provided or made available by such Party to all its Sales Representatives. 

        (g)   Each Party acknowledges and agrees that the other Party does not and will not maintain or procure any worker's
compensation insurance for or on behalf of such Party or its Sales Representatives, all of which shall be such Party's sole responsibility. 

        (h)   Each Party acknowledges and agrees that all of its Sales Representatives are not, and are not intended to be or be
treated as, employees of the other Party or any of its Affiliates, and that such individuals are not, and are not intended to be, eligible to participate in any benefits programs or in any "employee
benefit plans", as such term is defined in section 3(3) of the Employee Retirement Income Security Act of 1974, as amended, that are sponsored by the other Party or any of its Affiliates or
that are offered from time to time by the other Party or its Affiliates to their own employees (the "Benefit Plans"). All matters of compensation,
benefits and other terms of employment for any such personnel shall be solely a matter between a Party and its Sales Representatives. Each Party shall be solely responsible and liable for the payment
of all compensation and benefits under any such Benefit Plan to its Sales Representatives. A Party shall not be responsible to the other Party (the "Hiring
Party") or to any Sales Representatives used by the Hiring Party to promote or sell the Licensed Products for any compensation, expense reimbursements or benefits (including,
without limitation, vacation and holiday remuneration, healthcare coverage or insurance, life insurance, pension or profit-sharing benefits and disability benefits), payroll-related taxes or
withholdings, or any governmental charges or benefits (including without limitation unemployment and disability insurance contributions or benefits and workmen's compensation contributions or
benefits) that may be imposed upon or be related to the performance by the Hiring Party and its Sales Representatives of its obligations under this Agreement, all of which shall be the sole
responsibility of the Hiring Party, even if it is subsequently determined by any court, the IRS or any other governmental agency that such individual may be deemed a common law employee of the
non-Hiring Party or any of its Affiliates. 

        (i)    Each Party shall be solely responsible for its acts and omissions and for those acts or omissions of its Sales
Representatives while performing any of the services to be provided by such Party under this Agreement. 

39

 

        (j)    Each Hiring Party will [*] the
non-hiring Party (the "NHP") and its Affiliates, [*] from and
against any  [*] by or on behalf of [*] the execution  [*] with respect to: 

          (i)  [*] that the NHP or its Affiliates may  [*] that any of the Hiring Party's Sales Representatives may make
under or with respect to  [*]; 

         (ii)  any payment or obligation to make a payment to  [*] relating in any way to any [*] that may be sponsored
at any time by [*], even if [*] that any of the  [*] may be deemed a [*]
; 

       (iii)  the payment [*] by or on behalf of  [*] with respect to which [*] hereunder or pursuant to
applicable law [*], even [*] that any of  [*] may be deemed a [*]; and 

        (iv)  [*] of the Hiring Party  [*] forms with governmental authorities with regard to  [*]. 

         (v)  Notwithstanding anything to the contrary in this Section 5.10, a Hiring Party shall  [*] to the extent [*], with respect to any Sales
Representatives of [*]. Nothing contained in this Section 5.10 is intended to affect or limit any compensation payable by
a Party to the other for the services rendered by a Party pursuant to this Agreement. 

        (k)   Each Party shall be solely responsible and liable for all probationary and termination actions taken by it with respect
to its Sales Representatives, as well as for the formulation, content, and for the dissemination (including content) of all employment policies and rules (including written probationary and
termination policies) applicable to its Sales Representatives. 

        5.11    Use of Third Parties in the Co-Promotion Territory.    Subject to Section 5.10, each Party
may engage Third Parties to assist it in Commercialization activities in the Co-Promotion Territory [*] or of the  [*] the JCC or JSC. In such event, such
Third Party's obligations and any expenses of engaging such Third Party, shall be
included in the relevant Pre-Launch Marketing Plan and Budget or Marketing Plan and Budget, as applicable. Any [*]
the Third Parties set forth in this Section 5.11 shall [*]. 

ARTICLE 6  

 FINANCIAL TERMS  

        6.1    Initial Payment.    In partial consideration of the license and distribution rights granted by Corgentech to
BMS pursuant to this Agreement, BMS will make the payments to Corgentech described in this Section 6.1 and in 6.3 in accordance with the terms of this Agreement. Within five (5) Business
Days after the Effective Date, BMS shall pay to Corgentech a nonrefundable, noncreditable payment of twenty-five million Dollars ($25,000,000) in cash by wire transfer into an account
designated by Corgentech. 

        6.2    Equity Investment.    Within five (5) Business Days after the Effective Date, Corgentech will sell to
BMS and BMS will purchase from Corgentech, under the terms and conditions set forth in the Equity Agreements, shares of Corgentech Series D Preferred Stock with an aggregate purchase price of
twenty million Dollars ($20,000,000) at a price per share equal to two Dollars and forty and one-half cents ($2.405), as provided in the Equity Agreements. 

        6.3    Milestone Payments.    Subject to Sections 3.8, 3.9 and 6.3(b)(ii), BMS shall make milestone payments to
Corgentech based on achievement of Licensed Product development and sales milestones as set forth in this Section 6.3. Except as otherwise provided below, BMS shall pay the amounts set forth
below in cash by wire transfer to an account designated by Corgentech within [*] after the first achievement of the relevant
milestone trigger, as applicable, for a Licensed Product (except as noted below) upon receipt of notice of such achievement from Corgentech and, if necessary, as documented 

40

 

by
appropriate materials. Each milestone payment by BMS to Corgentech hereunder shall be [*], and shall be noncreditable and
nonrefundable. 

        (a)   [*] Milestone Payment.

	Event
 
	 	Payment

	 
	 	(in millions)
 

	[*] of Licensed Product [*] Phase [*] Clinical Trial of Licensed Product [*]	 	[*]

        (b)   [*] Milestone Payments.

	Event
 
	 	Payment

	 
	 	(in millions)
 

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

        [*] in the [*]. However,  [*] of the [*] upon  [*]
 in [*] such milestone is achieved  [*] the milestone payment [*].  

           (i)  For clarity, if the Parties (or their Affiliates or licensees) obtain an Approval of a Licensed Product for the prevention of
bypass graft
failures [*], then BMS shall make payments to Corgentech  [*] of the payments [*] as set forth above. For
example,  [*] Licensed Product for use in the prevention of bypass graft failure  [*], BMS shall make a payment of [*]
 to Corgentech, and
upon achievement of the [*], BMS shall make an additional payment of  [*]. 

         (ii)  Certain of the payments due to Corgentech pursuant to Section 6.3(b) with respect to the United States or Europe
are subject to the [*]. If any [*], then subject to
Section 6.3(b)(iii), the amount [*], as follows: If such  [*], then BMS shall pay to Corgentech upon achievement of such milestone an amount equal to
 [*] for such milestone. If [*], then the amount that BMS
shall pay to Corgentech pursuant to Section 6.3(b) upon achievement of the [*]; provided that  [*] the amount set forth for such milestone in
Section 6.3(b). 

        [*]

For
example, [*], then BMS shall pay to Corgentech pursuant to this Section 6.3(b)(ii) an amount equal to  [*]. If [*]
, then BMS shall pay to Corgentech pursuant
to this Section 6.3(b) an amount equal to [*]. 

41

  

If
the Parties agree to [*] milestone above, any such agreement  [*] shall not affect the [*]. 

       (iii)  In the event that [*], then (A) the
Parties shall establish in good faith [*] and
(B) [*]. 

        (c)   [*] Payments.

	[*]
 
	 	Payment

	 
	 	(in millions)
 

	Achievement of [*]	 	[*]
	Achievement of [*]	 	[*]
	Achievement of [*]	 	[*]

	*
	A
given Licensed Product, for purposes of the milestones payable on achievement of [*], means all Licensed
Products that [*]. 

        The
payments due to Corgentech pursuant to this Section 6.3(c) shall each be paid by BMS in [*] (each, a
"[*]" for such reimbursement), as follows: Within [*]
after the date upon which [*] (the "Trigger Date" for such reimbursement), BMS
shall pay to Corgentech the [*] thereof. On or before the date that is  [*] after each subsequent [*], BMS
shall  [*]; provided that if the worldwide annual Net Sales of Licensed Product during  [*] shall be [*];
provided further that if a  [*] reimbursement amount has been paid, then BMS shall  [*] as provided above for [*] (it being understood that
[*]. It is possible that [*] more of the reimbursements
set forth in this Section 6.3(c) may be achieved in close proximity such that [*] may be  [*] under this Section 6.3(c). An example of the
application of this Section 6.3(c) is set forth in
Exhibit A. The above amounts in this Section 6.3(c) are [*] (i.e.,  [*], then, over time ([*]), a
total of  [*] will have [*], even if the Parties  [*] Licensed Products. 

        6.4    Profit or Loss in the Co-Promotion Territory.    The Parties shall share equally in Profit or Loss
in the Co-Promotion Territory, on a Licensed Product-by-Licensed Product and indication-by-indication basis. The JFC shall establish an
efficient mechanism by which the Parties shall effect such sharing of Profit or Loss in a manner consistent with this Agreement. 

        6.5    Calculation and Payment of Profit or Loss Share.    

        (a)   Until the Initial Approval of Licensed Product in the Co-Promotion Territory, each Party shall report to the
other Party within [*] after the end of each Quarter with regard to Allowable Expenses made or incurred by such Party for each
Licensed Product during such month in the Co-Promotion Territory in a manner sufficient to enable the other Party to comply with its reporting requirements. Such report shall specify in
reasonable detail all expenses included in Allowable Expenses for the applicable Quarter and shall be accompanied by invoices or other appropriate supporting documentation for any payments to Third
Parties that [*] as may be determined by the JFC. Within  [*] after the end of each Quarter (or after the last Quarter in a Year,  [*] after the end of such Quarter), the Party that has borne less than its share of the Allowable Expenses in such Quarter shall
make a reconciling payment to the other Party to assure that each Party bears its share of such Allowable Expenses during such Quarter. Along with such payment, the paying Party shall also provide a
more detailed report of such expenses as may be required in connection with its reporting and accounting requirements. 

        (b)   After the Initial Approval of Licensed Product in the Co-Promotion Territory, each Party shall report to the
other Party within [*] after the end of each Quarter with regard to Net Sales and Allowable Expenses incurred by such Party for
all Licensed Products during such Quarter in the Co-Promotion Territory in a manner sufficient to enable the other Party to comply with its reporting requirements. Such report shall
specify in reasonable detail all deductions allowed in the calculation of such Net Sales and all expenses included in Allowable Expenses. Within  [*] after the end of each Quarter (or for the last
Quarter in a Year,  [*] after the end of such Quarter), the 

42

 

Parties
shall reconcile all Net Sales and Allowable Expenses to ascertain if there is a Profit or Loss and payments shall be made as set forth in subsections (i) and (ii) below. Along
with such payment, the paying Party shall also provide a more detailed report of such expenses as may be required in connection with its reporting and accounting requirements. 

          (i)  If there is a Profit for such Quarter, then BMS shall reimburse Corgentech for Allowable Expenses incurred by Corgentech
in such Quarter and will pay to Corgentech an amount equal to fifty percent (50%) of the Profit for such Quarter, taking into account any applicable payments in the nature of expense reimbursement or
for purchases of goods and services between the Parties in such Quarter, [*]; or 

         (ii)  If there is a Loss for such Quarter, then the Party that has borne less than its share of the Allowable Expenses in such
Quarter shall make a reconciling payment to the other Party to assure that each Party bears its share of such Allowable Expenses during such Quarter taking into account any applicable payments in the
nature of expense reimbursement or for purchases of goods and services between the Parties in such Quarter, [*]. 

        (c)   No separate payment shall be made for the last Quarter in any Year. Instead, at the end of each such Year, a final
reconciliation shall be conducted by comparing the share of Profit or Loss, fees, and expense reimbursements to which a Party is otherwise entitled for such Year pursuant to Sections 6.4 and
6.5 against the sum of all amounts (if any) previously paid or retained by such Party for prior Quarters during such Year. 

        (d)   In determining Allowable Expenses, Third Party Royalties (and the other components of Allowable Expenses) shall not
include any amounts [*] the Co-Promotion Territory that are payable to a Third Party by  [*], including without limitation, (x) payments required to be
made by  [*], (y) any [*] payable by  [*], or (z) any [*] by  [*], the payment and responsibility of which shall be  [*]. 

        6.6    Royalty to Corgentech.    Subject to Sections 3.8 and 6.7, BMS shall pay to Corgentech in Dollars
incremental royalties on Royalty-Bearing Sales equal to: 

        (a)   [*] of the portion of Royalty-Bearing Sales in a
given calendar year in the Royalty Territory that is [*]; 

        (b)   [*] of the portion of Royalty-Bearing Sales in a
given calendar year in the Royalty Territory that is [*]; 

        (c)   [*] of the portion of Royalty-Bearing Sales in a
given calendar year in the Royalty Territory that is [*]; and 

        (d)   [*] of the portion of Royalty-Bearing Sales in a
given calendar year in the Royalty Territory that is [*]. 

        (e)   Consistent with Sections 6.6(f) and 6.7,  [*] of any royalties based on Royalty-Bearing Sales payable to a Third Party under the Stanford
License and the BWH License
("Existing Third Party License Agreements") as a direct result of the development, manufacture, use or sale of Licensed Product in the Royalty Territory
for use in the Royalty Territory pursuant to this Agreement based on [*] ("Reimbursement
Payments"), and may [*] hereunder. Corgentech represents and warrants that a true and complete copy of
each Existing Third Party License Agreement is attached to the Disclosure Letter. Any amounts [*] that are payable to a Third
Party by [*], including without limitation, (x) payments required to be made  [*] with respect to amounts paid [*]
, (y) any  [*] payable by [*], or (z) any  [*] shall [*]. Corgentech shall  [*] that all [*].  [*] shall invoice [*] for such amounts as are
reimbursable by BMS pursuant to this Section 6.6(e) quarterly and [*] shall pay such invoices  [*] within [*] after receipt of  [*] invoices, to the extent not disputed in good faith. 

43

 

        (f)    If BMS is required to make tax payments on any  [*] due by it to Corgentech, or if any other income or other tax is payable by Corgentech as a
result of receiving  [*], then the JSC shall discuss appropriate mechanisms of minimizing such taxes to the extent possible in compliance with law
(for example, by arranging for [*] to make [*] to the
relevant licensor). 

        6.7    Royalty Adjustment.    

        (a)   

          (i)  If one or more Third Parties is, during the Royalty Term, (1) selling a Generic Product in a given country for
any [*], and (2) such sales of such Generic Product(s) in such country for  [*] are, in the aggregate (on a [*] basis),
(A) greater than [*] of the entire market for both the Licensed Products and such Generic Product(s) in such country for  [*] (calculated in accordance
with Section 6.7(a)(ii)), then the royalties due to Corgentech under Section 6.6 for
each of the [*] shall be reduced by [*] from what they
would otherwise have been based on [*] under Section 6.6, or (B) greater than  [*] of the entire market for both the Licensed Products and such
Generic Product(s) in such country for  [*] (calculated in accordance with Section 6.7(a)(ii)), then the royalties due to Corgentech under Section 6.6 for
each of the [*] shall be reduced by [*] from what they
would otherwise have been based on [*] under Section 6.6. Notwithstanding the foregoing, BMS shall be entitled under this
Section 6.7(a) to reduce royalties due to Corgentech pursuant to Section 6.6 only if BMS is using commercially reasonable efforts to enforce any Patent rights against the Third Party
that is selling such Generic Products that BMS has the right to enforce in the Royalty Territory pursuant to Article 10 and that contains a Valid Claim that is infringed by the manufacture, use
or sale of the relevant Generic Product. 

         (ii)  The percentage of sales of the Generic Product(s) relative to all sales of Generic Products and Licensed Products shall
be based on [*], or if such data is not available, another reliable data source that is mutually acceptable to BMS and
Corgentech. In the event that data on Generic Product sales levels available from [*] (or such other agreed data source) is not
sufficient to determine the [*] market share of a Generic Products in a given country, then the  [*] for such country will be deemed to be the [*] for
all other countries in the Royalty Territory in which such data is available. 

       (iii)  For clarity, sales of Licensed Product by a Third Party in a given country pursuant to a compulsory license granted or
ordered to be granted by a competent governmental authority shall be deemed to be [*]. The JCC shall establish a mechanism for  [*] and the JFC shall
establish a mechanism for [*]
pursuant to this Section 6.7(a). 

        (b)   

          (i)  If the development, manufacture or Commercialization of the Licensed Product by BMS or Corgentech in the Royalty
Territory in accordance with this Agreement would infringe any Third Party Patent right (other than a Patent to which BMS is granted a license or sublicense pursuant to this Agreement) or BMS believes
it [*] to obtain a license under such Third Party's Patent rights to avoid any claims or litigation concerning infringement by a
Third Party against BMS or Corgentech with respect to the Royalty Territory, then the Party first having such knowledge or opinion shall promptly bring such matter to the attention of the other Party,
and the Parties shall discuss the basis for such alleged infringement. 

         (ii)  If Corgentech [*] to obtain such a license to
avoid infringing a Third Party's Patent rights, then [*] and Corgentech shall  [*]. If Corgentech is [*],
then BMS may  [*]. 

       (iii)  If Corgentech [*] to seek such a license, then  [*] shall have the first right to take the lead on
negotiating the terms of any such license. If  [*] does not take such lead, then [*]
 

44

 

may
do so. The Parties shall cooperate in negotiating the terms of such license with such Third Party and shall obtain the [*]
making any proposal regarding the terms of any such license. If one or both Parties enter into such a Third Party license agreement, then (A) any royalties by BMS payable to Corgentech under
Section 6.6 will [*] of the amount of any [*]
reasonably allocable to the [*] of the Licensed Product in the Royalty Territory that are payable by BMS to such Third Party
under such agreement with respect to the [*] of the Licensed Product for use or sale in the Royalty Territory or (B) BMS
will [*] of the amount of any [*] reasonably allocable
to the [*] of the Licensed Product in the Royalty Territory that are payable by Corgentech to such Third Party under such
agreement with respect to the [*] of the Licensed Product for use or sale in the Royalty Territory. Notwithstanding the
foregoing, nothing in the previous sentence shall [*] Corgentech in a given Quarter by  [*] of the royalties otherwise payable by BMS to Corgentech for such
Quarter. In the event that BMS  [*] due to operation of the immediately preceding sentence, BMS shall
[*] Quarters, subject to the application of the limitation set forth in such proviso to such  [*] Quarters. 

        (c)   Corgentech represents, warrants and covenants to BMS that Corgentech has provided BMS with complete and correct copies of
the Existing Third Party License Agreements and the Existing Third Party License Agreements are in full force and effect as of the Effective Date. Corgentech will devote Diligent Efforts to maintain
in full force and effect and to fully perform its obligations under the Existing Third Party License Agreements and to keep BMS fully informed of any material development pertaining thereto.
Corgentech shall not, without the prior written approval of BMS (i) amend any Existing Third Party License Agreements or (ii) make any election or exercise any right or option to
terminate in whole or in part any Existing Third Party License Agreement if such amendment, election or exercise would, in any manner, affect BMS' rights or benefits under this Agreement or impose or
alter any obligation or burden of BMS under this Agreement. The Existing Third Party License Agreements are the only agreements as of the Effective Date between Corgentech and any Third Party that
impose an obligation to pay royalties or any other amounts to a Third Party based on the development, manufacture, or Commercialization of the Licensed Product. 

        (d)   Subject to Sections 6.7(b) and 11.3, neither Party shall seek or obtain a license from a Third Party after the
Effective Date in and to any Patents or Know-How of such Third Party covering the manufacture, use, sale or importation of Licensed Product in the Territory without the prior written
consent of the other Party. 

        6.8    Term of Royalties and Profit Sharing.    Subject to Sections 14.2, 14.4 and 14.5: 

        (a)   Corgentech's right to receive royalties under Section 6.6 shall expire on a
country-by-country and product-by-product basis upon the later of (i) ten (10) years from the first commercial sale of such Licensed
Product in such country, or (ii) expiration of the last to expire Valid Claim of a Corgentech Patent covering the manufacture, use or sale of such Licensed Product in such country
("Royalty Term"). 

        (b)   The Parties shall share Profit or Loss with respect to Licensed Product in the Co-Promotion Territory for so
long as either Party is engaged in the manufacture, use or sale of Licensed Product in the Co-Promotion Territory ("Co-Promotion
Term"). 

        (c)   Upon expiration of each Royalty Term, on a product-by-product and
country-by-country basis in the Royalty Territory, the license set forth in Section 10.1(a) shall  [*]. 

        6.9    Royalty Payments and Reports.    BMS shall provide a report to Corgentech within  [*] after the end of each Quarter that
summarizes the Royalty-Bearing Sales during such Quarter in a manner sufficient to enable
Corgentech to comply with its reporting requirements. Within [*] after the end of each Quarter (or, for the last Quarter in a
Year, [*] after the end of such Quarter), BMS shall make 

45

 

all
royalty payments payable to Corgentech under this Agreement with respect to such Quarter. Along with such payments, BMS shall also provide detailed information regarding the calculation of
royalties due pursuant to Section 6.6, including allowable deductions in the calculation of Net Sales of Licensed Product in the Royalty Territory. 

        6.10    Taxes.    The Party receiving royalties or other payments shall pay any and all taxes required by law that are
levied on account of royalties or other payments it receives under this Agreement. If laws or regulations require that taxes be withheld, the paying Party will (a) deduct those taxes from the
remittable royalty or other payment, (b) pay the taxes to the proper taxing authority, and (c) send evidence of the obligation together with proof of payment to the other Party within  [*]
following that payment. 

        6.11    Blocked Currency.    In each country where the local currency is blocked and cannot be removed from the
country, royalties accrued in that country shall be paid to Corgentech in the country in local currency by deposit in a local bank designated by Corgentech, unless the Parties otherwise agree. 

        6.12    Sublicenses.    In the event BMS grants licenses or sublicenses to others to sell Licensed Product which are
subject to royalty payments under Section 6.6, such licenses or sublicenses shall include an obligation for the licensee or sublicensee to account for and report its sales of Licensed Product
on the same basis as if such sales were Royalty-Bearing Sales by BMS, and BMS shall pay to Corgentech (or [*] when due under
this Agreement) royalties on such sales as if such sales of the licensee or sublicensee were Royalty-Bearing Sales of BMS. 

        6.13    Non-Monetary Consideration.    Neither Party shall sell a Licensed Product for any consideration
other than cash except on terms specified in an approved Marketing Plan and Budget. In the event a Party receives any non-monetary consideration in connection with the sale of Licensed
Product, such Party's payment obligation under Section 6.3, 6.4 or 6.6 shall be based on the fair market value of such other consideration. In such case, the selling Party shall disclose the
terms of such arrangement to the other Party and the Parties shall endeavor in good faith to agree on such fair market value. For sake of clarity, the provision or use of Licensed Product for research
purposes to the extent permitted under this Agreement or as samples for commercial purposes (in reasonable quantities) shall not be considered a sale for non-monetary consideration. 

        6.14    Cross Border Transactions.    The Parties recognize that in certain territories, and in particular in free
trade regions, customers or other Third Parties may import Licensed Product purchased in one country for use in another. If Corgentech asks the JSC to determine whether Licensed Products purchased
outside the Co-Promotion Territory are being imported into the Co-Promotion Territory, and the JSC determines that such importation is occurring at a material level (e.g.,
greater than [*] of the total units of Licensed Product sold in the Co-Promotion Territory during any  [*] Quarters) using data obtained from a source
reasonably acceptable to Corgentech and BMS, then the JSC shall establish an
equitable mechanism to [*], of such cross-border transfers to the extent it is practical to do so. If the JSC cannot agree upon
such matter it shall be resolved as provided in Section 16.1 (and, notwithstanding the first paragraph of Section 16.2, such matters shall be arbitrable under Section 16.2). 

        6.15    Foreign Exchange.    For the purpose of computing the Net Sales or Royalty-Bearing Sales for Licensed Product
sold in a currency other than Dollars and for purposes of determining Development Costs and Allowable Expenses, or other shared expenses under this Agreement incurred by a Party in a currency other
than Dollars, such Net Sales, Royalty-Bearing Sales, Development Costs or Allowable Expense amounts shall be converted into Dollars on a Quarterly basis in the manner used by such Party from time to
time in the preparation of its audited financial statements. BMS has Previously Disclosed the method used to convert such foreign currencies into Dollars. Prior to incurring any such Development Costs
or Allowable Expenses in a currency other than Dollars, Corgentech shall 

46

 

disclose
to BMS in writing the manner of currency conversion to be used by Corgentech. In the event a Party proposes to change such method of converting foreign currencies into Dollars, it will notify
the other Party prior to such change, and the Parties shall discuss the implications of such change for the computation of Net Sales, Royalty-Bearing Sales, Development Costs and Allowable Expenses;
and the other Party shall not unreasonably object to any such change in such method. 

        6.16    Payments to or Reports by Affiliates.    Any payment required under any provision of this Agreement to be made
to either Party or any report required to be made by any Party shall be made to or by an Affiliate of that Party if designated in writing by that Party as the appropriate recipient or reporting
entity. 

        6.17    Adjustment of FTE Rates.    All FTE rates Previously Disclosed shall be adjusted annually by the JFC to
reflect changes in costs (not to exceed the total percentage change in the U.S. Consumer Price Index for the time period from the Effective Date until the time at which such index was recalculated at
the time of adjustment), with the first adjustment to be effective no earlier than January 1, 2005. 

        6.18    Annual License Maintenance Payments.    BMS shall reimburse Corgentech for  [*] of the annual maintenance payments made
by Corgentech under Section 6.2 of the Stanford License and
Section 6.2 of the BWH License. Such payments shall be  [*] and shall be treated as [*]. Such payments shall  [*]
. 

ARTICLE 7  

 MANUFACTURE AND SUPPLY  

        7.1    Current Status of Manufacture of Licensed Product.    As of the Effective Date, Corgentech obtains from Third
Party vendors Intermediate, E2F Decoy, Vialed Product, Licensed Device and Final Product. As the Parties develop their strategies for developing and Commercializing Licensed Products, they shall work
together to enter into definitive agreements (whether with each other, or Third Parties) with respect to the manufacture and supply of Intermediate, E2F Decoy, Vialed Product, Licensed Device and
Final Product pursuant to Section 7.3. 

        7.2    General Manufacturing Structure; Manufacturing Plan and Budget.    The manufacturing of each Licensed Product
shall be governed by a comprehensive worldwide manufacturing plan and budget specifying development details for Licensed Product in the Territory ("Manufacturing Plan and
Budget"). Corgentech and BMS shall [*] all manufacturing and supply of Licensed Products (including all
components thereof) for use in the Territory. Corgentech shall be the Lead Manufacturing Party with respect to the manufacture of Intermediate for use in the Territory. As of the Effective Date,
Corgentech shall be the Lead Manufacturing Party with respect to E2F Decoy, Vialed Product and Licensed Device in the Territory, and the fill and finish, packaging and assembly of the Final Product in
the Territory; provided, that, subject to Section 7.3, the Parties shall use commercially reasonable efforts to effect a smooth transition of the
Lead Manufacturing Party responsibilities (and associated contractual relationships and responsibilities) to BMS with respect to E2F Decoy, Vialed Product and Licensed Device in the Territory, as well
as the fill and finish, packaging and assembly of the Final Product for the Territory, in accordance with Exhibit F to the Disclosure Letter. Subject to Sections 2.5 and 7.3, the Parties
shall enter into one or more definitive manufacturing and supply agreements between themselves or between one or more of the Parties and appropriate Third Parties, which shall include quality and
environmental, health and safety provisions, setting forth the terms and conditions regarding the Parties' responsibilities to supply, or have supplied, Intermediate, E2F Decoy, Vialed Product,
Licensed Device and Final Product (including fill and finish, packaging and assembly of Final Product) for use and sale in the Territory. The Parties shall cooperate closely to assure an efficient and
reliable supply of Licensed Product conforming to Specifications throughout the Territory. The JMC shall oversee the arrangements for the manufacture and supply of Licensed Product, and the Parties 

47

 

shall
keep the JMC apprised of the status of their manufacturing activities, whether conducted internally or with Third Parties. 

        7.3    Manufacturing Responsibilities.    

        (a)   Promptly after the Effective Date, the JMC shall review Corgentech's current plan for the contents and preparation of the
Chemistry, Manufacturing and Controls section of the current NDA for Licensed Product and the manufacture of Intermediate, E2F Decoy, Vialed Product, Licensed Device and Final Product. The JMC may
modify such plan in a manner consistent with this Agreement. Corgentech represents that as of the Effective Date, it has not entered into any written agreements with any Third Parties for the
manufacture and/or supply of commercial quantities of Intermediate, E2F Decoy, Vialed Product, Licensed Device and Final Product. 

        (b)   The Parties contemplate that the initial manufacturing arrangements for quantities of Licensed Product used for Launch
and the early stage of Commercialization shall be substantially as outlined under "Launch & Early Commercial" on Exhibit F to the Disclosure Letter. Transition to such arrangements shall
begin as soon as possible after the Effective Date, and BMS and Corgentech will both be parties to any such Third Party supply agreements (other than supply agreements for Intermediate as to which
Corgentech will be the Party that is party to such agreement). The Parties contemplate that such three-party agreements will provide that BMS will be the Party responsible for  [*] and for [*]; Corgentech will be responsible for  [*] (with BMS having such responsibilities for [*]). The
terms of such agreements shall include other customary terms and conditions consistent with this Agreement, including without limitation the provisions of this Article 7. 

        (c)   [*] in the Co-Promotion Territory,
the Parties will cooperate to begin the process by which BMS will be enabled to fill and finish and package Final Product and to conduct E2F Decoy assembly (using Intermediates supplied by or through
Corgentech) at a BMS facility, and to [*] any existing contractual relationship(s) with such Third Party(ies) as may then be
supplying Licensed Device, assembling and supplying E2F Decoy, and filling and finishing, packaging and assembling Final Product, as substantially outlined under "BMS Fill/Finish" on Exhibit F
to the Disclosure Letter. The Parties anticipate that transition of physical activities for commercial supply to the BMS facility outlined under "BMS Fill/Finish" on said Exhibit F will begin
to occur promptly after [*]. The Parties will [*]
Corgentech's then existing contracts with Third Party contract manufacturers will [*] manufacturing responsibilities (and
consistent with [*]), but only if [*]. Concurrently with
the transfer of any such activities to a BMS facility, the Parties will cooperate to enable BMS, to the extent feasible and permissible under applicable law, to assume certain regulatory
responsibilities that Corgentech had been performing prior to such time in connection with the activities then to be assumed by BMS. 

        (d)   Final Product and components thereof for use and sale in the Territory shall be manufactured in compliance with the
applicable Specifications and Good Manufacturing Practices as required by any Regulatory Authorities, as applicable, and in compliance with all applicable laws. 

        (e)   The JMC shall coordinate with the JCC to establish commercially reasonable and appropriate arrangements for back up
sources of supply of Licensed Products to minimize the risk of supply shortfalls, it being understood that the JMC may establish alternative arrangements to protect against shortfalls such as
maintaining additional inventory rather than engaging a backup supply source. 

        (f)    In the event BMS desires at any time to transfer any of the fill and finishing, packaging and assembly of Final Product
or assembly of E2F Decoy from a Third Party to BMS or its Affiliates, Corgentech [*] such change in manufacturing arrangements,
provided that [*] of the 

48

 

price
or fee therefor [*]. Thereafter, BMS shall [*]
(subject to applicable regulatory requirements) with respect to the choice of the site or sites at which it (or its Affiliates) perform such manufacturing and with respect to the subsequent change of
such site or sites from time to time, so long as [*] following such transfer shall  [*] at the time of initial transfer to the first BMS facility to perform
such activity(ies). Such  [*] shall be adjusted for changes in the Producer Price Index-Commodities Index for Drugs and Pharmaceuticals, as published by
U.S. Department of Labor, Bureau of Statistics (or successor Governmental Authority) since [*] such activity(ies). 

        7.4    Specifications and Terms of Supply.    

        (a)   The JMC shall review the Specifications from time to time and modify them, as it deems appropriate and as necessary to
comply with all relevant laws, rules and regulatory requirements. 

        (b)   The JMC, working with the JCC and JDC, shall establish procedures regarding forecasts for requirements of the Licensed
Product, and ordering procedures to be followed by the Parties for securing supply of the Licensed Product. 

        (c)   Each Party shall use Diligent Efforts to carry out its responsibilities under this Article 7. 

        7.5    Shortage of Supply.    In the event that sufficient quantities of Licensed Product (or components thereof) are
not available to satisfy worldwide demand, remaining available Licensed Product (or components thereof) will be allocated [*] in
the Co-Promotion Territory and in the Royalty Territory [*], or if such shortage occurs  [*], based on  [*],
subject to any limitations imposed by regulatory requirements. The Parties may in any event agree to a different allocation
of the available Licensed Product (or components thereof). 

        7.6    Inventory.    The JMC shall determine appropriate levels of inventory of Intermediate, E2F Decoy, Vialed
Product, Licensed Device and Final Product to meet the Parties' anticipated needs within the Co-Promotion Territory. BMS shall be solely responsible for such determinations of inventory in
the Royalty Territory. 

        7.7    Manufacturing Costs and Fees.    

        (a)   The costs incurred by either Party for manufacturing quantities of Intermediate, E2F Decoy, Vialed Product, Licensed
Device and Final Product for use in the Co-Promotion Territory shall be treated as Manufacturing Costs (to the extent included in such defined term) and, as such, included as  [*], as applicable. BMS
shall purchase from Corgentech, and pay to Corgentech a transfer price for, all components of Licensed
Products that the Parties may agree shall be supplied by Corgentech for use in the Royalty Territory equal to [*]. If for any
reason the Parties agree that BMS will supply to Corgentech any component of Licensed Products for use in the Territory, then Corgentech will purchase such component from BMS, and pay to BMS a
transfer price for such component equal to [*], and Corgentech may include such transfer price in its determination of its
Manufacturing Costs as if [*] such component, unless the JFC directs the Parties to treat such costs in another manner. Subject
to Sections 6.7 and 11.3 and to Article 15, all other costs of manufacturing quantities of E2F Decoy, Vialed Product, Licensed Device and Final Product for use in the Royalty Territory
shall [*]. 

        (b)   Reasonable capacity reservation fees and other fees applicable to the future manufacture of Licensed Product by such
Third Parties shall be borne [*] to the extent applicable to capacity reserved for forecast production of materials for use or
sale [*] (unless otherwise included in [*] for use  [*]). 

        (c)   The Parties have provided for the [*]
Manufacturing Costs. If a Party desires to use any of its or its Affiliates' facilities and equipment existing as of the Effective Date for the manufacture of a component of Licensed Products under
this Agreement, then the Party shall [*] in accordance with the definitions of  [*]. If it is necessary for a Party [*]
 manufacturing
activities 

49

 

for
any component of the Licensed Product, then, the JMC (after consultation with the JFC) shall determine (i) the appropriate  [*] component of expenses), and (ii) the extent to which such 
[*]. If the Parties [*] Manufacturing Cost for the
Licensed Product, except to the extent determined by the JMC. The [*] in determining Manufacturing Costs for the Licensed
Product. 

        (d)   For clarity, 

          (i)  Manufacturing Costs incurred for (A) [*]
and (B) activities conducted [*] Licensed Product shall be included in  [*]. The Manufacturing Costs of any [*] shall be
included in [*]. 

         (ii)  Manufacturing Costs incurred for activities connected with  [*] shall be included in [*], and, if incurred
for
Commercial supplies of Licensed Product for the Co-Promotion Territory, shall be included [*]. 

        7.8    Term of Supply Obligation.    A Party's obligation to supply, or have supplied, Intermediate, E2F Decoy, Vialed
Product, Licensed Device or Final Product, as applicable and as the Parties may agree, for use and sale in the Co-Promotion Territory shall continue only during the
Co-Promotion Term of this Agreement as set forth in Section 6.8(b). A Party's obligation to supply, or have supplied, Intermediate, E2F Decoy, Vialed Product, Licensed Device or
Final Product, as applicable and as the Parties may agree, for use and sale in a country in the Royalty Territory shall continue only during the Royalty Term in such country. 

        7.9    Label.    To the extent permitted by law, the  [*] shall [*] of the final
packaging for Licensed
Product in each country, in a manner approved by the JMC and the RWG. 

ARTICLE 8  

 REPRESENTATIONS AND COVENANTS  

        8.1    Mutual Representations and Warranties.    Each Party represents and warrants to the other as of the Effective
Date that: 

        (a)    Corporate Power.    It is duly
organized and validly existing under the laws of its jurisdiction of incorporation or formation, and has full corporate or other power and authority to enter into this Agreement and to carry out the
provisions hereof. 

        (b)    Due Authorization.    It is duly
authorized to execute and deliver this Agreement and to perform its obligations hereunder, and the person or persons executing this Agreement on its behalf has been duly authorized to do so by all
requisite corporate action. 

        (c)    Binding Agreement.    This Agreement is
legally binding upon it, enforceable in accordance with its terms. The execution, delivery and performance of this Agreement by it does not conflict with any agreement, instrument or understanding,
oral or written, to which it is a party or by which it may be bound, nor violate any material law or regulation of any court, governmental body or administrative or other agency having jurisdiction
over it. 

        (d)    Grant of Rights; Maintenance of
Agreements.    It has not, and will not during the term of Agreement, grant any right to any Third Party that would conflict with the rights granted to the other
Party hereunder. It has (or will have at the time performance is due) maintained and will maintain and keep in full force and effect all agreements (including license agreements) and filings
(including patent filings) necessary to perform its obligations hereunder. 

        (e)    Intellectual Property.    (i) To
its knowledge, it has sufficient legal and/or beneficial title under its intellectual property rights necessary for the purposes contemplated under this Agreement and to grant the licenses contained
in this Agreement; (ii) has not received any material written communications alleging that the conduct of the Parties' responsibilities as currently proposed under this Agreement would violate
any of the intellectual property rights of a 

50

 

Third
Party; (iii) all of its independent contractors who have participated in the development of the Licensed Product in a material manner through the Effective Date, and all of its employees
and officers, have executed agreements that require assignment to it of all inventions made during the course of and as a result of their association with it and that obligate such individual to
maintain as confidential any information Controlled by it, or provided by the other Party that is Confidential Information under this Agreement; (iv) during the term of this Agreement, it will
use Diligent Efforts not to diminish the rights under its Know-How and Patent Rights it grants to the other Party herein, including without limitation by not committing or permitting any
acts or omissions which would cause the material breach of any agreements between itself and Third Parties under which such Party obtains a license or other right under intellectual property rights
licensed to the other Party pursuant to this Agreement; and (v) as of the Effective Date, each Party is in compliance in all material respects with any such agreements with Third Parties. 

        8.2    Manufacturing Representations and Warranties.    The Party that has responsibility for manufacturing all or
part of Licensed Products hereunder covenants to the other Party as follows: any Licensed Product (or components thereof) supplied by it to the other Party shall (a) be manufactured in
compliance with applicable laws; (b) conform to the specifications therefor in effect at the time of delivery; (c) not be misbranded within the meaning of the Act, (d) not
constitute an article that may not be introduced into interstate commerce under the provisions of Section 505 of said Act; (e) conform to the certificates of analysis supplied with the
shipment of such Licensed Product or components thereof; and (f) shall be packaged and shipped in accordance with the Specifications therefor in effect at the time of delivery. 

        8.3    No Debarment.    In the course of the development of Licensed Product pursuant to this Agreement, such Party
has not used, and during the term of this Agreement will not use, any employee or consultant that is debarred by any Regulatory Authority or, to the best of such Party's knowledge, is the subject of
debarment proceedings by any Regulatory Authority. If either Party learns that its employee or consultant performing on its behalf under this Agreement has been debarred by any Regulatory Authority,
or has become the subject of debarment proceedings by any Regulatory Authority, such Party shall so promptly notify the other Party and shall prohibit such employee or consultant from performing on
its behalf under this Agreement. 

        8.4    Corgentech.    Corgentech warrants and represents to BMS that: 

        (a)   as of the Effective Date, it is entitled to grant the rights and licenses granted to BMS under Article 10, and is
not currently subject to any agreement between Corgentech and any Third Party or to
any outstanding order, judgment or decree of any court or administrative agency that restricts it in any way from granting to BMS licenses under the Corgentech Technology pursuant to Article 10
for use in the development, manufacture, use or sale of the Licensed Product as provided herein; 

        (b)   as of the Effective Date, Corgentech has received no written notice of any pending actions, suits, judgments,
settlements, or claims against or owed by Corgentech with respect to (x) the Corgentech Technology that, if determined adversely to Corgentech, would have an adverse effect upon its ability to
grant to BMS the rights under, or upon the ability of BMS to fully utilize or exercise, the Corgentech Technology or (y) Corgentech's right to enter into and perform its obligations under this
Agreement. To Corgentech's knowledge, Corgentech has not received written notice of any threatened claims or litigation seeking to invalidate or alleging the invalidity of any Corgentech Patents; 

        (c)   as of the Effective Date, (i) it has not granted, and will not grant during the term of this Agreement, any right,
license or interest in or to the Corgentech Technology that is in conflict with the rights or licenses granted to BMS under this Agreement, (ii) Corgentech has not granted any lien, security
interest or other encumbrance (excluding any licenses) with respect to any 

51

 

Corgentech
Technology, or permitted such a lien, security interest or other encumbrance (excluding any licenses) to attach to the Corgentech Technology and (iii) it has not granted any license
under its interest in any intellectual property right relating to the Corgentech Core Technology to any Third Party to make, use or sell any Licensed Product in any country in the Territory (other
than to manufacture Licensed Product or conduct development activities on behalf of Corgentech in furtherance of this Agreement); 

        (d)   as of the Effective Date, it has no knowledge from which it would have reason to conclude that the Corgentech Patents
issued as of the Effective Date are invalid; 

        (e)   the Corgentech Technology does not include any trade secrets that have been misappropriated from any Third Party or
obtained in breach of any contractual obligation of Corgentech or its employees to a Third Party; provided that for purposes of Section 14.3 (and only Section 14.3) Corgentech shall be
considered to have breached the representation and warranty contained in this Section 8.4(e) only if Corgentech had knowledge at the Effective Date that such representation and warrant was
inaccurate; 

        (f)    (i) the Patents that have been Previously Disclosed constitute all Patents Controlled by Corgentech that would be
infringed by the manufacture, use or sale of Licensed Products, that as of the Effective Date, are the subject of clinical trials, and (ii) the jurisdiction(s) by or in which each such right
has been issued or in which an application for such Patent has been filed, together with the respective Patent or application numbers, have been Previously Disclosed. All fees required to maintain
such issued Patent rights have been paid to date. To Corgentech's knowledge, the claims included in any issued Corgentech Patents are valid and in full force and effect as of the Effective Date; 

        (g)   Corgentech has no knowledge of any infringement by any Third Party of any of the Corgentech Technology as of the
Effective Date, except as Previously Disclosed; 

        (h)   Corgentech has not entered into any agreement pursuant to which it has agreed to transfer, whether by asset sale,
operation of law or otherwise, title to any portion of the Corgentech Technology; 

        (i)    except for [*], the use of any Third Party Patent
rights and the Corgentech Technology that are expected as of the Effective Date to be used to develop and make the Licensed Product and to use and sell the License Product within the Field within the
Territory will not [*]; 

        (j)    To Corgentech's knowledge, the manufacture, use and sale of those Licensed Products existing as of the Effective Date
will not infringe any Patent Rights owned or controlled by a Third Party (except for those licensed under the Existing Third Party License Agreements and except for any such rights controlled by
Corgentech's Third Party manufacturers existing as of the Effective Date); 

        (k)   except for those inventions under which Corgentech obtained a license pursuant to an Existing Third Party License
Agreement, all inventors of any inventions included within the Corgentech Technology have assigned or have a contractual obligation to assign their entire right, title and interest in and to such
inventions and the corresponding Patent rights to Corgentech; 

        (l)    to Corgentech's knowledge, no person, other than those persons named as inventors on any Corgentech Patents (other than
those Corgentech Patents licensed to Corgentech pursuant to the Existing Third Party License Agreements), is an inventor of the invention(s) claimed in such Corgentech Patents; 

        (m)  the development of the Licensed Product has been conducted by Corgentech and its Affiliates and, to the knowledge of
Corgentech, its independent contractors in compliance in all material respects with all applicable laws, rules and regulations, including all public health and 

52

 

safety
provisions of state law and regulations, permits, governmental licenses, registrations, approvals, concessions, franchises, authorizations, orders, injunctions and decrees and applicable laws,
rules and regulations; 

        (n)   all Licensed Product used in the conduct of clinical trials of Licensed Product has been manufactured in compliance in
all material respects with cGMPs; 

        (o)   (i) to Corgentech's knowledge, each Regulatory filing made by Corgentech with respect to Licensed Product
(including without limitation the INDs therefor) were, at the time of filing, true, complete and accurate in all material respects, (ii) as of the Effective Date, no serious adverse event
information has come to the attention of Corgentech that is materially different in terms of the incidence, severity or nature of such serious adverse events than that which was filed as safety
updates to the IND for the Licensed Product, and (iii) to the knowledge of Corgentech, all written data summaries prepared by Corgentech that were included in the Regulatory filings and that
are based on clinical studies conducted or sponsored by Corgentech accurately summarize in all material respects the corresponding raw data underlying such summaries; and 

        (p)   the Development Plan budget that is Previously Disclosed  [*] in Clinical Costs and Development Costs and [*]
Pre-Paid Inventory Costs. 

        8.5    DISCLAIMER.    BMS UNDERSTANDS THAT LICENSED PRODUCT IS THE SUBJECT OF ONGOING CLINICAL RESEARCH AND
DEVELOPMENT AND THAT CORGENTECH CANNOT ASSURE THE SAFETY OR USEFULNESS OF LICENSED PRODUCT. CORGENTECH MAKES NO REPRESENTATION OR WARRANTY EXCEPT AS SET FORTH IN THIS ARTICLE 8 CONCERNING ITS PATENT
RIGHTS OR KNOW-HOW, INCLUDING WITHOUT LIMITATION THE VALIDITY OR SCOPE OF ITS PATENT RIGHTS OR THAT THE MANUFACTURE, USE OR SALE OF LICENSED PRODUCT WILL NOT INFRINGE THE PATENT RIGHTS OF
THIRD PARTIES. CORGENTECH MAKES NO WARRANTY OF ANY LICENSED PRODUCT'S MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. 

ARTICLE 9  

 RECORDS AND AUDIT

        9.1    Information Disclosure.    

        (a)   Corgentech will effect an initial transfer of Information to BMS as provided in Section 3.6(a) or as needed for
BMS to assume any manufacturing responsibilities assumed by BMS pursuant to this Agreement. 

        (b)   Subject to Section 12.1, after the Effective Date, Corgentech and BMS will disclose and make available to each
other all material Information Controlled by such Party that is reasonably necessary or useful for the other Party to perform its obligations and exercise its rights under this Agreement. All such
Information shall be disclosed to the other Party reasonably promptly after it is first developed or learned or its significance is first appreciated. 

        9.2    Records and Audit.    Each Party shall keep or cause to be kept such records as are required to determine, in a
manner consistent with GAAP in the United States and this Agreement, the sums or credits due under this Agreement, including, but not limited to, Development Costs, Allowable Expenses, Net Sales and
Royalty-Bearing Sales. Each Party shall also keep or cause to be kept such records as are required by the JCC to determine the number of Sales Representatives used to provide Details in the
Co-Promotion Territory and the amount of time expensed by such Sales Representatives in such efforts. At the request (and expense) of either Party, the other Party and its sublicensees
shall permit an independent certified public accountant appointed by such Party and reasonably acceptable to the other Party, at reasonable times and upon reasonable notice, to examine only those
records as 

53

 

may
be necessary to determine, with respect to any calendar year ending not more than [*], for records to be kept as provided in
Section 5.5(c)) prior to such Party's request, the correctness or completeness of any report or payment made under this Agreement. The foregoing right of review may be exercised  [*] periodic report
and payment. Results of any such examination shall be (a) limited to information relating to the
Licensed Product, (b) made available to both Parties and (c) subject to Article 12. The Party requesting the audit shall bear the full cost of the performance of any such audit,
unless such audit discloses a variance to the detriment of the auditing Party of more than [*] from the amount of the original
report, royalty or payment calculation. In such case, the Party being audited shall bear the full cost of the performance of such audit. 

        9.3    Publications.    Neither Party shall publish or present the results of studies carried out under this Agreement
without the opportunity for prior review by the other Party, unless such publication is contemplated in a publication plan approved by the JDC or JCC. Subject to Section 12.2, each Party agrees
to provide the other Party the opportunity to review any proposed abstracts, manuscripts or presentations (including verbal presentations) which relate to any Licensed Product at least  [*] prior to
their intended submission for publication and agrees, upon request, not to submit any such abstract or manuscript
for publication until the other Party is given a reasonable period of time to secure patent protection for any material in such publication which it believes to be patentable. Both Parties understand
that reimbursement and Commercialization of Licensed Product may be assisted by publication of results from research studying Licensed Product as quickly as possible. Notwithstanding the foregoing,
the Parties agree to review and consider delay of publication and filing of patent applications under certain circumstances. The JSC will review such requests and recommend subsequent action. Neither
Party shall have the right to publish or present Confidential Information of the other Party which is subject to Section 12.1. Nothing contained in this Section 9.3 shall prohibit the
inclusion of information in a publication if necessary for a patent application, except for Confidential Information of the non-filing Party, provided the
non-filing Party is given a reasonable opportunity to review the information to be included prior to submission of such patent application. Notwithstanding the foregoing, the Parties
recognize that independent investigators have been engaged, and will be engaged in the future, to conduct clinical trials of Licensed Product. The Parties recognize that such investigators operate in
an academic environment and may release information regarding such studies in a manner consistent with academic standards; provided, that each Party will use reasonable efforts to prevent publication
prior to the filing of relevant Patent applications. 

ARTICLE 10  

 LICENSES AND OTHER RIGHTS

        10.1    License Grants to BMS.    

        (a)   Subject to the terms and conditions of this Agreement, Corgentech hereby grants to BMS an exclusive, royalty-bearing
license, with the right to grant sublicenses as set forth in Section 10.5, under the Corgentech Technology to (i) develop, use, sell, offer for sale and import Licensed Product in the
Field in the Royalty Territory and (ii) make and have made the Licensed Product anywhere in the world for the use, sale, and importation in the Field in the Royalty Territory. 

        (b)   Subject to the terms and conditions of this Agreement, Corgentech hereby grants to BMS a co-exclusive,
royalty-bearing license, with the right to grant sublicenses as set forth in Section 10.5, under the Corgentech Technology to (i) develop, use, sell, offer for sale and import Licensed
Product in the Field in the Co-Promotion Territory and (ii) make and have made the Licensed Product anywhere in the world for the use, sale, and importation in the Field in the
Royalty Territory. For clarity, while BMS is Corgentech's exclusive distributor of Licensed Products in the Co-Promotion Territory, the license set forth in this Section 10.1 is
provided [*] rights under this Agreement in the Co-Promotion Territory, including but not limited to,  [*]. 

54

 

        (c)   In the event that Corgentech should file in any court or agency pursuant to any statute or regulation of any state or
country, a petition in bankruptcy or insolvency or for reorganization or for an arrangement or for the appointment of a receiver or trustee of the Party or of its assets, or if it should propose a
written agreement of composition or extension of its debts, or it should be served with an
involuntary petition against it, filed in any insolvency proceeding, and such petition shall not be dismissed within sixty (60) days after the filing thereof, or it shall propose or be a party
to any dissolution or liquidation, or if it shall make an assignment for the benefit of creditors, then the license rights granted to BMS pursuant to Section 10.1(b) shall, subject to the terms
of any Existing Third Party License Agreement or other Third Party license agreements that Corgentech enters into after the Effective Date, automatically become exclusive without further action
required on the part of either Party. If any filing is required as a result of the preceding sentence pursuant to the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended (the
"HSR Act"), the Parties will use all reasonable efforts to make all necessary filings under the HSR Act as promptly as practicable at BMS' expense. 

        10.2    License Grant to Corgentech.    Subject to the terms and conditions of this Agreement, BMS hereby grants to
Corgentech a co-exclusive, royalty-free (subject to Corgentech's payment obligations under this Agreement) license, with the right to grant sublicenses as set forth in
Section 10.5, under the BMS Technology to (i) develop, use, sell, offer for sale and import Licensed Product in the Field in the Co-Promotion Territory and (ii) make
and have made the Licensed Product anywhere in the world for the use, sale, and importation in the Field in the Co-Promotion Territory. Notwithstanding the preceding sentence, the licenses
granted to Corgentech pursuant to this Section 10.2 shall [*] with respect to any Licensed Product that  [*] unless the Parties either (i)
 [*] of such
Licensed Products pursuant to [*] or (ii) BMS actually provides to Corgentech  [*]; provided, that with
respect to either of clause (i) or
clause (ii) above such license shall [*] and subject to the terms of any writing as the Parties may enter into at such
time governing same. 

        10.3    Additional License to BMS.    In addition to the licenses granted in Section 10.1, Corgentech grants to
BMS a worldwide, non-exclusive, perpetual, irrevocable royalty-free license, with the right to grant sublicenses, under the rights assigned to Corgentech pursuant to
Section 11.1, [*], except that such license with respect to  [*] shall be exclusive. 

        10.4    Third Party Technology.    

        (a)   The licenses granted under Sections 10.1 and 10.2 include rights licensed to either Party by Third Parties. Any
sublicense of Third Party technology hereunder shall be subject to the terms and conditions of the license under which such sublicense is granted. The Parties acknowledge that the Corgentech
Technology includes technology from The Brigham and Women's Hospital, Inc. ("BWH") pursuant to the BWH License and the Leland Stanford Junior
University ("Stanford") pursuant to the Stanford License. In accordance with Section 13.3 of the BWH License, Articles 7, 8 and 9 of the BWH
License are expressly incorporated into this Agreement for the benefit of BWH. In accordance with Section 13.3 of the Stanford License, Articles 7, 8 and 9 of the Stanford License are expressly
incorporated into this Agreement for the benefit of Stanford. BMS has reviewed the BWH License and Stanford License and agrees to comply with any applicable terms thereof disclosed to it. 

        (b)   The Parties may become aware of rights held by Third Parties that may be desirable to obtain by license or other means
for the development, manufacture, use or sale of Licensed Product. In such event, the JSC will determine whether rights under such technology should be sought in the Co-Promotion
Territory, and the Parties will determine whether such rights should be sought in the Royalty Territory as provided in Section 6.7(b). 

55

 

        (c)   

          (i)  If the development, manufacture or Commercialization of the Licensed Product by BMS or Corgentech in the
Co-Promotion Territory in accordance with this Agreement would infringe any Third Party Patent right (other than a Patent to which BMS is granted a license or sublicense pursuant to this
Agreement) or either Party believes it [*] to obtain a license under such Third Party's Patent rights to avoid any claims or
litigation concerning infringement by a Third Party against BMS or Corgentech with respect to the Co-Promotion Territory, then the Party first having such knowledge or opinion shall
promptly bring such matter to the attention of the other Party, and the Parties shall discuss the basis for such alleged infringement. 

         (ii)  If either Party [*] to obtain such a license to
avoid infringing a Third Party's Patent rights, then, subject to Section 10.4(c)(iii), [*] and  [*]. If the Objecting Party is [*], then the other Party
may [*] in connection therewith [*] under this Agreement  [*]. 

       (iii)  If the Parties [*] to seek such a license, then  [*] shall have the first right to take the lead on
negotiating the terms of any such license. If  [*] does not take such lead, then [*] may do so. The
Parties shall cooperate in negotiating the terms of such license with such Third Party and shall obtain the [*] making any
proposal regarding the terms of any such license. If one or both Parties enter into such a Third Party license agreement, then (A) any amount payable by BMS to Corgentech under
Section 3.8 or Section 6.4 in respect of Profit or Loss or Development Costs will [*] of the amount of any  [*] reasonably allocable to the
[*] of the Licensed
Product in the Co-Promotion Territory that are payable by BMS to such Third Party under such agreement with respect to  [*] of the Licensed Product for use or sale in the Co-Promotion Territory or
(B) BMS will  [*] of the amount of any [*] reasonably allocable to  [*] the Licensed Product in the
Co-Promotion Territory that are payable by Corgentech to such Third Party under such
agreement with respect to [*] of the Licensed Product for use or sale in the Co-Promotion Territory. 

        10.5    Sublicense Rights.    

        (a)   Except as permitted in Section 10.5(b), each Party shall have the right to grant sublicenses under the licenses
granted to it under Section 10.1 and 10.2 [*], if applicable. Notwithstanding the foregoing, BMS shall have the right to
grant sublicenses to its Affiliates to develop, make, have made, use, sell, offer to sell and import Licensed Product in the Territory in the Field  [*], but [*]. Each Party hereby guarantees the
performance of its Affiliates and permitted sublicensees that are sublicensed as permitted herein. Any such permitted sublicenses shall be consistent with and subject to the terms and conditions of
this Agreement. A copy of any sublicense agreement executed by one Party shall be provided to the other Party within fourteen (14) days of its execution; provided, that the financial terms of
any such sublicense agreement may be redacted to the extent not pertinent to an understanding of a Party's obligations or benefits under this Agreement. 

        (b)   Notwithstanding the foregoing, and subject to the terms of any Existing Third Party License Agreement, each Party may
grant sublicenses to Third Party contractors solely in connection with the manufacture of, performance of, or QA or QC activities for Intermediate, E2F Decoy, Vialed Product, Licensed Device or Final
Product to the extent consistent with Sections 10.1 and 10.2, Article 7 and other relevant provisions of this Agreement, to perform clinical trial-related activities on behalf of a Party
in accordance with the Development Plan or to conduct [*] in the Royalty Territory, or to assist in the non-clinical
development of the Licensed Product (provided that any sublicense for non-clinical development purposes shall require that any  [*] the sublicensing Party). 

56

 

        10.6    Exclusivity; Competing Product.    

        (a)   During the term of this Agreement, and subject to the terms of this Section 10.6, except as expressly permitted in
this Agreement, neither Party shall (without the prior written consent of the other Party, to be given in such Party's sole and absolute discretion): (i) either itself, with or through any
Affiliate or Third Party, Commercialize any Competing Product in an applicable country in the Territory where Licensed Product is sold for any indication or then being developed for CABG, PABG or AVG
under the Development Plan, (ii) grant any right or license to any Third Party by contract or otherwise, to Commercialize a Competing Product in an applicable country in the Territory where
Licensed Product [*] the Development Plan, or (iii) grant any right or license to any Third Party, by contract or
otherwise, to develop or Commercialize E2F Decoy or any product (including without limitation any device) containing, consisting of, or for the express purpose of being used in
connection, conjunction or combination with, E2F Decoy with respect to any country in the Territory for which a Licensed Product is then  [*] (it being understood that this subsection (iii) shall
not restrict Corgentech in any way from granting a Third Party
the right to or commercialize any Licensed Device or other device with any compound or molecule other than an E2F Decoy (unless such other device and/or compound or molecule would constitute or
comprise a Competing Product). 

        (b)   If BMS breaches Section 10.6(a) with respect to a given country in the Territory during the term of this
Agreement, then Corgentech may, at its sole discretion and in addition to any other remedies available to it at law or in equity, terminate the licenses granted to BMS under Article 10 with
respect to such country(ies) unless, in the case of Sections 10.6(a)(i) and 10.6(a)(ii), BMS either: (i) in the case of a Competing Product defined in Section 1.20(a),
terminates such Commercialization within [*] after it first becomes aware that such product is a Competing Product or
(ii) in the case of a Competing Product defined in Section 1.20(b), divests such Competing Product with respect to such country within  [*] after it first becomes aware that such product is a
Competing Product, in either of (i) or (ii), the provisions of
Sections 14.3(c) and 14.4(b) shall apply. If Corgentech breaches Section 10.6(a) with respect to a given country in the Territory during the term of this Agreement, then BMS may, at its
sole discretion and in addition to any other remedies available to it at law or in equity, terminate the licenses granted to Corgentech under Article 10 with respect to such country(ies)
unless, in the case of Sections 10.6(a)(i) and 10.6(a)(ii), Corgentech either: (i) in the case of a Competing Product defined in Section 1.20(a), terminates such
Commercialization within [*] after it first becomes aware that such product is a Competing Product, or (ii) in the case
of a Competing Product defined in Section 1.20(b), divests such Competing Product with respect to such country within [*]
after it first becomes aware that such product is a Competing Product, in which case the provisions of Section 14.3(c) shall apply. 

        (c)   Notwithstanding Sections 10.6(a) and 10.6(b), in the event that either Party merges with a Third Party or is
otherwise acquired by a Third Party that markets a Competing Product in any country within the Territory during the term of this Agreement, the merging or acquired Party shall, within  [*] after
[*], notify the other Party whether it intends
to terminate this Agreement pursuant to Section 14.2 or divest (or cause its acquiror to divest) such Competing Product. If the merging or acquired Party or its acquiror (collectively the
"Merging Party") intends to so divest such Competing Product in countries where the Licensed Product is  [*], the Parties will agree on a reasonable period
of time (which shall not, in any event, be less than  [*] following [*]) for such divestment (the
"Divestment Period"). If the Merging Party (i) fails to notify the other Party of such Competing Product within the  [*] period, (ii) provides
notice to the other Party that it does not intend to divest such Competing Product, or
(iii) subject to Section 10.6(d), fails to divest such Competing Product within the Divestment Period, the other Party, may, at its sole discretion, terminate the licenses granted to the
merging or acquired Party under Article 10 with respect to 

57

 

such
country and the provisions of Sections 14.3(c) and either 14.4(b) (where BMS was the Merging Party) or Section 14.4(c) (where Corgentech is the Merging Party) shall apply. 

        (d)   If a Party has notified the other that a Competing Product will be divested, then such Party and its acquiror as
applicable (collectively the "Divesting Party") shall use Diligent Efforts to divest itself of such Competing Product in a manner consistent with
reasonable business judgment and to complete such divestiture of the Competing Product as promptly as practicable within the Divestment Period. However, if the Divesting Party is unable to complete
such divestiture within the Divestment Period, but can demonstrate to the other Party's reasonable satisfaction that it used Diligent Efforts to effect such divestiture  [*], then [*]. The Divesting Party shall keep the other
Party reasonably informed of its efforts and progress in effecting such divestiture until it is completed, and shall provide a written summary of such efforts quarterly. Subject to the foregoing, the  [*] by the Divesting Party during the period extending from notification to the other Party of the decision to divest until the
completion of the divestiture shall not be considered a breach by the Divesting Party of its obligations under this Agreement. 

        (e)   Each Party acknowledges that a Party in breach of any of its obligations under this Section 10.6 shall cause the
non-breaching Party irreparable harm, for which monetary damages will be an inadequate remedy. Therefore, in the event of any such breach, the non-breaching Party shall be
entitled, in addition to any other remedy available to it under this Agreement, at law or in equity, to injunctive relief, including an accounting for profits, specific performance of the terms hereof
and other equitable relief for such breach, without the posting of bond or other security. 

        10.7    Negative Covenants.    

        (a)    By Corgentech.    Corgentech covenants
that neither it nor its Affiliates shall use or practice the BMS Technology for any use or purpose except as expressly permitted in Section 10.2;
provided, that the foregoing shall not apply to any BMS Know-How from and after the date that such BMS Know-How no longer remains Confidential
Information of BMS. 

        (b)    By BMS.    BMS covenants that neither
it nor its Affiliates shall use or practice the Corgentech Technology for any use or purpose except as expressly permitted in Sections 10.1 and 10.3 as necessary to perform its obligations
under this Agreement; provided, that the foregoing shall not apply to any Corgentech Know-How from and after the date that such Corgentech
Know-How no longer remains Confidential Information of Corgentech. 

        10.8    Exclusive Rights.    Exclusive licenses granted in Sections 10.1 and 10.2 shall be exclusive only to
the extent the licensor has the right to grant an exclusive license with respect to the know-how or patent in question. 

        10.9    No Implied Licenses.    No right or license under any BMS Technology or Corgentech Technology is granted or
shall be granted by implication. All such rights or licenses are or shall be granted only as expressly provided in this Agreement. 

        10.10    Bankruptcy.    

        (a)   Subject to the terms of any Existing Third Party License Agreements or any other license agreements entered into by
Corgentech after the Effective Date, all rights and licenses granted under or pursuant to this Agreement, including amendments hereto, by each Party to the other Party are, for all purposes of
Section 365(n) of Title 11 of the U.S. Code ("Title 11"), licenses of rights to intellectual property as defined in Title 11. Each Party agrees
during the term of this Agreement to create and maintain current copies or, if not amenable to copying, detailed descriptions or other appropriate embodiments, to the extent feasible, of all such
intellectual property. If a case is commenced by or against either Party (the "Bankrupt Party") under Title 11, then, unless and until this Agreement is
rejected as provided in Title 11, the Bankrupt Party (in 

58

 

any
capacity, including debtor-in-possession) and its successors and assigns (including, without limitation, a Title 11 Trustee) shall, at the election of the Bankrupt Party
made within 60 days after the commencement of the case (or, if no such election is made, immediately upon the request of the non-Bankrupt Party) either (i) perform all of the
obligations provided in this Agreement to be performed by the Bankrupt Party including, where applicable and without limitation, providing to the non-Bankrupt Party portions of such
intellectual property (including embodiments thereof) held by the Bankrupt Party and such successors and assigns or otherwise available to them or (ii) provide access or a license to the
non-Bankrupt Party all such intellectual property (including all embodiments thereof) held by the Bankrupt Party and such successors and assigns or otherwise available to them. 

        (b)   If a Title 11 case is commenced by or against the Bankrupt Party and this Agreement is rejected as provided in Title 11
and the non-Bankrupt Party elects to retain its rights hereunder as provided in Title 11, then the Bankrupt Party (in any capacity, including debtor-in-possession)
and its successors and assigns (including, without limitations, a Title 11 Trustee) shall provide access or a license to the non-Bankrupt Party all such intellectual property (including
all embodiments thereof) held by the Bankrupt Party and such successors and assigns or otherwise available to them immediately upon the non-Bankrupt Party's written request therefor.
Whenever the Bankrupt Party or any of its successors or assigns provides access or a license to the non-Bankrupt Party any of the intellectual property licensed hereunder (or any
embodiment thereof) pursuant to this Section 10.10, the non-Bankrupt Party shall have the right to perform the obligations of the Bankrupt Party hereunder with respect to such
intellectual property, but neither such provision nor such performance by the non-Bankrupt Party shall release the Bankrupt Party from any such obligation or liability for failing to
perform it. 

        (c)   All rights, powers and remedies of the non-Bankrupt Party provided herein are in addition to and not in
substitution for any and all other rights, powers and remedies now or hereafter existing at law or in equity (including, without limitation, Title 11) in the event of the commencement of a
Title 11 case by or against the Bankrupt Party. The non-Bankrupt Party, in addition to
the rights, power and remedies expressly provided herein, shall be entitled to exercise all other such rights and powers and resort to all other such remedies as may now or hereafter exist at law or
in equity (including, without limitation, under Title 11) in such event. The Parties agree that they intend the foregoing non-Bankrupt Party rights to extend to the maximum extent
permitted by law and any provisions of applicable contracts with Third Parties, including without limitation for purposes of Title 11, (i) the right of access or a license to any intellectual
property (including all embodiments thereof) of the Bankrupt Party or any Third Party with whom the Bankrupt Party contracts to perform an obligation of the Bankrupt Party under this Agreement, and,
in the case of the Third Party, which is necessary for the development, registration and manufacture of licensed products and (ii) the right to contract directly with any Third Party described
in (i) in this sentence to complete the contracted work. Any intellectual property provided pursuant to the provisions of this Section 10.10 shall be subject to the licenses set forth
elsewhere in this Agreement and the payment obligations of this Agreement, which shall be deemed to be royalties for purposes of Title 11. 

ARTICLE 11  

 INTELLECTUAL PROPERTY  

        11.1    Inventions.    

        (a)    Ownership of Inventions.    Except as
otherwise set forth herein, all Inventions made solely by employees, agents or independent contractors of a Party after the initiation of, and during the course of, the Collaboration (each, a
"Sole Invention") shall be owned by such Party, and any 

59

 

Inventions
made jointly by employees, agents or independent contractors of Corgentech and BMS shall be owned jointly by the Parties such that each Party has an undivided one-half
(1/2) interest, without a duty of accounting to the other Party, in and to such Invention (a "Joint Invention"). Notwithstanding the
foregoing, Corgentech shall solely own all right, title and interest in and to all Inventions[*] shall, upon  [*] request, require its employees, agents and
independent contractors to execute such documents and take such other actions as
necessary [*]. 

        (b)    [*]
Inventions.    A "[*] Invention" means a  [*] which claims (i) an [*]
, which  [*] Licensed Product [*], (ii) a  [*], and which [*] Licensed Product  [*], (iii) [*] Licensed Product or
(iv) the [*]. 

        (c)    Disclosure of Inventions.    Each Party
shall promptly disclose to the JSC all Inventions arising under this Agreement. 

        11.2    Patent Prosecution.    

        (a)    Individual Program Patent
Filings.    Each Party shall have sole discretion and responsibility to prepare, file, prosecute and maintain Patents for Sole Inventions made by employees, agents
and independent contractors of such Party, and shall be responsible for related interference and opposition proceedings, except as provided in Section 11.2(c). At least  [*] prior to the
contemplated filing date, each Party shall submit to the other a substantially completed draft of any patent
application for such Sole Inventions. Each Party shall confer with the other, and use reasonable efforts to adopt the other Party's suggestions regarding the prosecution of such patent applications
and shall copy the other Party on any official actions and submissions in such patent applications. 

        (b)    Joint Program Patent Filings.    Except
as provided in Section 11.2(a), the JSC shall determine which Party shall be responsible for filing, prosecuting, and maintaining all Patents covering Joint Inventions, including conducting
related interference and opposition proceedings relating thereto (each, a "Joint Patent") on behalf of both Parties based on a good faith determination
of the relative contributions of the Parties to the Invention and the relative level of interest of the Parties in the Invention; provided, however that the JSC may also decide not to file a
Joint Patent for any such Joint Invention. At least [*] prior to the contemplated filing, the Party responsible for such
activities for a Joint Patent shall submit a substantially completed draft of such Joint Patent to the other Party [*]. If the
responsible Party does not wish to file, prosecute or maintain any Joint Patent or maintain or defend such Joint Patent in a particular country, it shall grant the other Party any necessary authority
to file, prosecute and maintain such Joint Patent or maintain or defend such Joint Patent in the name of both Parties. 

        (c)    Patents on [*]
Inventions.    Corgentech shall prepare and file patent applications covering Inventions [*]
in such form and in such countries as the JSC may direct, and prosecute such patent applications (including conducting related interference and opposition proceedings) and maintain resulting patents
in such manner as the JSC may direct, provided, however, that Corgentech may at any time decline to undertake or continue such prosecution or maintenance, in which case Corgentech would  [*] each of
Corgentech and BMS. Corgentech shall provide BMS with copies of all correspondence from any and all patent offices
concerning such Patents and an opportunity to comment on any related proposed responses, voluntary amendments and submissions of any kind to be made to any and all such patent offices. If Corgentech  [*]
Patent on an invention [*], it shall endeavor to so
advise BMS [*] such Patent. 

        (d)    Patent Expenses.    

          (i)  Each Party shall select its own counsel for filing, prosecuting and maintaining Patents under this Section 11.2.
BMS shall [*] incurred in connection with the prosecution and maintenance of Patents covering inventions made solely by BMS
employees [*] within the 

60

 

Royalty
Territory. Each Party shall promptly pay to the other Party that is initially bearing patent costs (determined in a manner consistent with the definition of "Patent Costs") for filing,
prosecuting and maintaining Patents covering Joint Inventions in the Royalty Territory an amount equal to [*] such amount, and
BMS shall promptly [*] all patent costs (determined in a manner consistent with the definition of "Patent Costs") incurred by
Corgentech after the Effective Date for filing, prosecuting and maintaining Product-Specific Corgentech Patents (including patent applications therefor) existing as of the Effective Date within the
Royalty Territory. 

         (ii)  All costs of filing, prosecuting and maintaining Patents covering Sole Invention or Joint Inventions in the
Co-Promotion Territory during the term of this Agreement as provided herein shall be Patent Costs and included as an element of Allowable Expenses. 

        (e)    Existing Patents.    Corgentech shall
prosecute and maintain Patents included in the Corgentech Patents and BMS shall prosecute and maintain Patents included in the BMS Patents, in each case existing as of the Effective Date, using
counsel of such Party's choice and at such Party's expense. Any Corgentech Patents licensed to Corgentech under the Stanford License or the BWH License shall be prosecuted as provided therein,
notwithstanding anything to the contrary in this Section 11.2. At least [*] prior to the date upon which an application
included in such Patents that covers the composition, article of manufacture of, method of making or method of using the Intermediate, Licensed Product, Vialed Product, E2F Decoy, Licensed Device or
Final Product is to be filed, the responsible Party shall submit a substantially completed draft such application to the other Party for comment. The responsible Party shall confer with such other
Party and use reasonable efforts to adopt the other Party's suggestions regarding the prosecution of such applications, and shall copy the other Party on any official actions and submissions relating
to such applications. 

        (f)    Nondisclosure.    The Parties shall
endeavor to file Patents pursuant to Sections 11.2(a) through (c) before any oral, written or electronic disclosure of the Inventions claimed therein by either Party to maintain the
validity of patent applications filed outside of the United States. 

        11.3    Infringement Defense.    

        (a)    Defense of Third Party Claims for Licensed Product in the
Co-Promotion Territory.    If a Third Party asserts that a patent or other right owned by it is infringed by the manufacture, use, sale, offer for sale or
import of any Licensed Product in the Co-Promotion Territory, the Party first obtaining knowledge of such a claim shall immediately provide the other Party notice of such claim through the
JSC along with the related facts in reasonable detail. In such event, unless the Parties otherwise agree, [*] shall have the
first right, but not the obligation, to control such defense with respect to such Licensed Product, in which case [*] shall
cooperate with [*] and shall have the right to be represented separately by counsel of its own choice,  provided that if the claim relates primarily to the
practice of the [*], then  [*] shall have the first right, but not the obligation to defend against any such claim, and  [*]
 shall cooperate at [*] reasonable request and  [*], in such defense and shall have the right, at its own expense, to be represented
by counsel of its own choice. If either
Party fails to accept control of the defense of a claim for which it has the first right to control defense hereunder within [*]
after receiving or giving notice thereof to the JSC pursuant to this Section 11.3(a), then the other Party shall have the right, but not the obligation, to defend against such claim. The Party
that does not control defense of a claim hereunder shall cooperate with the controlling Party, at the controlling Party's reasonable request and expense, in any such defense and shall have the right,
at its own expense, to be represented by counsel of its own choice. 

        (b)    Defense of Third Party Claims for Licensed Product in the Royalty
Territory.    If a Third Party asserts that a patent or other right owned by it is infringed by the manufacture, use or sale 

61

 

of
any Licensed Product in a country in the Royalty Territory, the Party first obtaining knowledge of such a claim shall immediately provide the other Party notice of such claim through the JSC along
with the related facts in reasonable detail. [*] shall have the first right, but not the obligation, to control the defense of
all such claims, provided that, if the claim relates primarily to the practice of the [*], then  [*] shall have the first right, but not the obligation to
defend against any such claim, and  [*] shall cooperate, at [*] reasonable request and  [*], in such defense.
If the Party having the first right to control defense hereunder fails to accept control of the defense of
such claim within [*] after receiving or giving notice thereof to the JSC pursuant to this Section 11.3(b), then the
other Party shall have the right, but not the obligation, to defend against such claim. The Party that does not control defense of a claim hereunder shall cooperate with the controlling Party, at the
controlling Party's reasonable request and expense, in any such defense and shall have the right, at its own expense, to be represented by counsel of its own choice. 

        (c)    Settlement of Third Party Claims for Licensed
Product.    The Party that controls the defense of a given claim with respect to Licensed Product shall also  [*] settlement of such claim; provided,  however, that no settlement shall be entered into without the prior consent of the other Party if such settlement would adversely affect the rights and
benefits of, or impose or adversely affect any obligations on, the other Party. 

        (d)    Allocation of Costs.    The expenses of
defense, settlement and judgments in actions governed by this Section 11.3 with respect to Licensed Product in the Co-Promotion Territory shall be included in Patent Costs in the
manner provided for in the definition of such term. 

        11.4    Infringement by Third Parties in the Co-Promotion Territory.    BMS and Corgentech shall promptly
notify the other in writing of any alleged or threatened infringement of Corgentech Patents or BMS Patents relating to Licensed Product in the Co-Promotion Territory of which they become
aware. Except as provided below in this Section 11.4, [*] shall have the first right, but not the obligation, to control
the prosecution of any infringement described in this Section 11.4. If the Party having the first right to control the prosecution of any infringement does not initiate an infringement action
within [*] (or [*] in the case of an action brought
under the Hatch-Waxman Act) of learning of the infringement, the other Party shall have the right, but not the obligation, to bring such an action. 

        (a)    Joint Patents.    For any alleged or
actual infringement relating to Licensed Product of any Joint Patents that are [*], the JSC shall determine which Party shall
have the first right to control prosecution of any such infringement. 

        (b)    Stanford License and BWH
License.    Notwithstanding anything to the contrary in this Section 11.4, Corgentech Patents licensed to Corgentech under the Stanford License or the BWH
License shall be enforced in the manner required in such license agreement, to the extent such licenses allocate enforcement rights in a different manner than that provided in this
Section 11.4. 

        (c)    Enforcement Procedure.    In the event
either Party brings an infringement action in accordance with this Section 11.4, the other Party shall cooperate fully, including, if required to bringing such action, furnishing of a power of
attorney or being joined as a party plaintiff in such action. The costs of any litigation commenced pursuant to this Section 11.4, including attorneys' fees and expenses, but excluding any
allocation for internal resources devoted to the litigation, shall be included in Patent Costs in the manner provided for in the definition of such term. Any recovery realized as a result of such
litigation shall be allocated to reimburse Patent Costs. Any remaining recovery shall be split [*] (net of any amount thereof
that must be paid to the licensor under any of the Existing Third Party Licenses). No settlement or consent judgment or other voluntary final disposition of a suit under this Section 11.4 may
be entered into [*]. Any recovery shall be split as provided in this Section 11.4(c), shall  [*] and shall [*]. 

62

   
        11.5    Infringement by Third Parties in the Royalty Territory.    

        (a)   If any Patent in the Corgentech Patents or BMS Patents is allegedly or actually infringed by a Third Party in a manner
relating to Licensed Product in the Royalty Territory, the Party first having knowledge of such infringement shall promptly notify the other in writing. The notice shall set forth the facts of that
infringement in reasonable detail. 

        (b)   Except as provided in Sections 11.5(c) and (d), and subject to Section 11.5(e),  [*] shall have the primary right, but not the obligation,
to institute, prosecute, and control any action or proceeding with
respect to such infringement of the Corgentech Patents, by counsel of its own choice, and [*] shall have the right, at its own
expense, to be represented in that action by counsel of its own choice. If [*] fails to bring an action or proceeding within a
period of [*] (or [*] in the case of an action brought
under the Hatch-Waxman Act or equivalent) after receiving written notice from [*] or otherwise having knowledge of that
infringement, then [*] shall have the right to bring and control any such action by counsel of its own choice, and  [*] shall cooperate with [*] and shall have the right to
be represented in any such action by counsel of its own choice at its own expense. 

        (c)   Except as provided in Section 11.5(d), [*]
shall have the primary right, but not the obligation, to institute, prosecute, and control any action or proceeding with respect to such infringement of any  [*] by counsel of its own choice, and
[*] shall have the
right, at its own expense, to be represented in that action by counsel of its own choice. If [*] fails to bring an action or
proceeding within a period of [*] (or [*] in the case of
an action brought under the Hatch-Waxman Act or equivalent) after receiving written notice from [*] or otherwise having
knowledge of that infringement, [*] shall have the right to bring and control any such action by counsel of its own choice, and  [*] shall cooperate with
[*] and shall have the right to
be represented in any such action by counsel of its own choice at its own expense. 

        (d)   The JSC shall determine which Party (the "Selected Party") shall have the
first right to control the prosecution of any infringement described in this Section 11.5 of any Joint Patent that is  [*]. The other Party shall have a back-up right to control prosecution of any
such infringement of such a Joint
Patent if the Selected Party fails to do so within  [*] (or [*] in the case of an action brought under the
Hatch-Waxman Act or equivalent) of learning of such infringement, provided that the Selected Party shall cooperate with the other Party and shall have the right to be represented in any such action by
counsel of its own choice at its own expense. 

        (e)   If one Party brings any such action or proceeding, the other Party agrees to be joined as a party plaintiff and to give
the first Party reasonable assistance and authority to file and prosecute the suit. Neither Party shall have the right to settle any patent infringement litigation under this Section 11.5 in a
manner that diminishes the rights or interests of the other Party or imposes any liability on the other Party without the consent of such other Party. The costs and expenses of the Party bringing suit
under this Section 11.5 shall be reimbursed first out of any damages or other monetary awards recovered in favor of Corgentech and/or BMS (if such recovery is less than the Parties' aggregate
costs and expenses incurred in such action, such recovery shall be allocated between the Parties on [*]). Any remaining damages
(net of [*]) relating to infringement by the manufacture, use or sale of products competitive with Licensed Product described in
Section 11.5(b) or (c) shall be [*]. 

        (f)    Notwithstanding the foregoing, any Corgentech Patents licensed to Corgentech under the Stanford License or the BWH
License shall be enforced in the manner required in such license, to the extent such licenses allocate enforcement rights in a manner different than that provided in this Section 11.5. 

63

 

        11.6    Patent Marking.    Licensed Product marketed and sold by the Parties hereunder shall, at Corgentech's request,
be marked with appropriate patent numbers or indicia in those countries in which such markings have notice value as against infringers of patents. 

        11.7    Product Trademarks.    

        (a)   Licensed Product shall be marketed under trademarks agreed upon by the JCC (hereinafter,
"Trademarks"). Trademarks used in connection with the sale of Licensed Product shall be owned in the Territory by  [*] and applications for registration
thereof shall be filed and prosecuted by  [*]. 

        (b)   All Trademark Costs relating to the Co-Promotion Territory shall be included as an element of Allowable
Expenses, as provided in the definition of such term, and any trademark costs shall be borne [*] in all countries in the Royalty
Territory. 

        (c)   Where practical and legally feasible, the Parties shall work together to obtain a worldwide trademark for Licensed
Product. 

        11.8    Other Proprietary Trademarks.    

        (a)   Corgentech and BMS hereby grant each other limited, non-sublicensable (except to Affiliates or as the Parties
may agree by mutual written consent) rights to the use of certain of their respective trademarks and service marks, trade names and logos to be specifically selected by the JCC (collectively
hereinafter referred to as "Marks") in connection with the Commercialization activities provided for in this Agreement. To that end, Corgentech and BMS
agree not to unreasonably withhold consent to the limited use of such Party's relevant Marks for the duration of this Agreement in connection with the Commercialization activities provided for herein. 

        (b)   Each Party agrees to conform to the customary guidelines of the granting Party under Section 11.8(a) with respect
to manner of use, and to maintain the quality standards of such granting Party with respect to the goods sold and services provided in connection with such Party Marks. Each Party recognizes and
agrees that no ownership rights are vested or created by the limited rights of use granted pursuant to Section 11.8(a), and that all use of Marks in accordance with Section 11.8(a)
inures to the benefit of the respective owner of the Marks. Further, except when used in accordance with any usage guidelines provided by the owner of the Mark, each Party shall submit to the other
Party any materials bearing the other Party's Marks for review and approval prior to the use thereof and shall make no use of the Marks of the other Party without the other Party's written consent. 

        (c)   Each Party shall execute any documents required in the reasonable opinion of the other Party to be entered as a
"registered user" or recorded licensee of the other Party's Marks, or to be removed as registered user or licensee thereof. 

        (d)   Each Party agrees to indemnify and to hold the other Party harmless in the event that such other Party incurs liability
as a result of the use of the indemnifying Party's Marks, provided that the indemnified Party gives prompt notice to the indemnifying Party of any claim that the indemnifying Party's Marks infringe
the rights of a Third Party, and the indemnified Party provides good faith cooperation in the defense of such claim. 

        11.9    Infringement of Trademarks.    

        (a)    Defense of Third Party Claims in the Co-Promotion
Territory.    Each Party shall notify the other Party through the JCC promptly upon learning of any actual or alleged infringement of any trademark or of any unfair
trade practices, trade dress imitation, passing off of counterfeit goods, or like offenses, or any such claims (hereinafter "Trademark Infringement
Claims") 

64

 

brought
by a Third Party against a Party in connection with a Licensed Product in the Co-Promotion Territory. Upon learning of such Trademark Infringement Claim,  [*] shall take all reasonable and appropriate
steps to resolve the Trademark Infringement Claim, with the reasonable cooperation
and assistance of [*]. All of the reasonable costs of in-house counsel, the fees and expenses paid to outside
counsel other reasonable direct costs incurred in bringing, maintaining and prosecuting any action described in this Section 11.9(a) shall  [*] in the manner provided for in the definition of such
term and shall be borne as provided in Section 11.7(b). 

        (b)    Defense of Third Party Claims in the Royalty
Territory.    Each Party shall notify the other Party through the JCC promptly upon learning of any actual or alleged Trademark Infringement Claims brought by a Third
Party against a Party in connection with a Licensed Product in the Royalty Territory. Upon learning of such Trademark Infringement Claim,  [*] shall take all reasonable and appropriate steps to resolve
such Trademark Infringement Claim, with the reasonable
cooperation and assistance of [*]. All of the reasonable costs of in-house counsel, the fees and expenses paid to
outside counsel other reasonable direct costs incurred in bringing, maintaining and prosecuting any action described in this Section 11.9(b) shall be  [*]. 

        (c)    Infringement by Third Parties.    Each
Party shall notify the other Party in writing promptly upon learning of any actual or alleged infringement of Trademarks relating to Licensed Product of which they become aware. The Party owning such
Trademark shall have the first right, but not the obligation, to control the prosecution of any such infringement. If the Party having the first right to control the prosecution of any such
infringement does not initiate an infringement action within [*] of learning of the infringement, then the other Party shall
have the right, but not the obligation, to bring such an action. Neither Party shall have the right to settle any infringement action under this Section 11.9(c) in a manner that diminishes the
rights or interests of the Party or imposes any liability on the other Party without the consent of such other Party. The expenses of defense, settlement and judgments in actions governed by this
Section 11.9(c) shall be: (i) borne [*] in the Royalty Territory; and
(ii) [*] in the Co-Promotion Territory. The costs and expenses of the Party bringing suit under this
Section 11.9(c) shall be reimbursed first out of any damages or other monetary awards recovered in favor of Corgentech and/or BMS (if such recovery is less than the Parties' aggregate costs and
expenses incurred in such action, such recovery shall be allocated between the Parties [*]. Any remaining damages shall be
allocated: (i) on the same pro rata basis within the Royalty Territory; and (ii) [*] with respect to infringement
of Trademarks within the Co-Promotion Territory. Any recovery shall be allocated as provided in this Section, shall  [*]. 

ARTICLE 12  

 CONFIDENTIALITY.  

        12.1    Treatment of Confidential Information.    The Parties agree that during the term of this Agreement, and for a
period of [*] after this Agreement expires or terminates, a Party receiving Confidential Information of the other Party will
(A) (a) maintain in confidence such Confidential Information to the same extent such Party maintains its own proprietary industrial information of similar kind and value, and (b) not
disclose such Confidential Information to any Third Party without prior written consent of the other Party, except for disclosures made in confidence to any Third Party pursuant to a plan approved by
the JSC or to permitted sublicensees bound to maintain such Confidential Information in confidence, and (B) not use such Confidential Information for any purpose except those permitted by this
Agreement. As used herein, "Confidential Information" shall mean all Information, and other information and materials, received by either Party from the
other Party pursuant to this Agreement and all Information developed during the course of the Collaboration, which shall be the Confidential Information of each Party. The foregoing obligations and
the other 

65

 

obligations
set forth in this Section 12.1 shall not apply with respect to any portion of such Confidential Information which: 

        (a)   is publicly disclosed by the disclosing Party, either before or after it becomes known to the receiving Party; or 

        (b)   was known to the receiving Party of any or its Affiliates, without obligation to keep it confidential, prior to when it
was received from the disclosing Party; or 

        (c)   is subsequently disclosed to the receiving Party or any of its Affiliates by a Third Party lawfully in possession thereof
without obligation to keep it confidential; or 

        (d)   has been published by a Third Party or otherwise enters the public domain through no fault of the receiving Party or any
of its Affiliates in breach of this Agreement; or 

        (e)   has been independently developed by the receiving Party or any of its Affiliates without the aid, application or use of
Confidential Information. 

        The
receiving Party shall have the right to disclose any Confidential Information provided hereunder if, in the reasonable opinion of the receiving Party's legal counsel, such disclosure
is necessary to comply with the terms of this Agreement, or the requirements of any law or rule imposed by a securities exchange. Where reasonably possible, the receiving Party shall notify the
disclosing Party of the receiving Party's intent to make such disclosure of Confidential Information pursuant to the provision of the preceding sentence sufficiently prior to making such disclosure so
as to allow the disclosing Party adequate time to take whatever action the disclosing Party may deem to be appropriate to protect the confidentiality of the information. 

        Each
Party agrees that it shall provide or permit access to Confidential Information received from the other Party only to the receiving Party's Affiliates, employees, consultants,
advisors and permitted subcontractors, sublicensees and sub-distributors, and to the employees, consultants, advisors and permitted subcontractors, sublicensees and
sub-distributors of the receiving Party's Affiliates, who have a need to know such Confidential Information to assist the receiving Party with the activities contemplated or required of it
by this Agreement and who are subject to obligations of confidentiality and non-use with respect to such Confidential Information substantially similar to the obligations of
confidentiality and non-use of the receiving Party pursuant to this Section 12.1; provided, that each Party shall each remain
responsible for any failure by its Affiliates, and its and its Affiliates' respective employees, consultants, advisors and permitted subcontractors, sublicensees and sub-distributors, to
treat such Confidential Information as required under this Section 12.1 (as if such Affiliates, employees, consultants, advisors and permitted subcontractors, sublicensees and
sub-distributors were Parties directly bound to the requirements of this Section 12.1). 

        Notwithstanding
the foregoing, either Party may disclose without any limitation such Party's U.S. federal income tax treatment and the U.S. federal income tax structure of the
transactions relating to such Party that are based on or derived from this Agreement, as well as all materials of any kind (including opinions or other tax analyses) relating to such tax treatment or
tax structure, except to the extent that nondisclosure of such matters is reasonably necessary in order to comply with applicable securities laws. 

        12.2    Publicity.    The Parties agree that the joint public announcement of the execution of this Agreement shall be
substantially in the form of the press release attached as Exhibit B and shall cooperate in the issuance thereof as soon as practicable after the execution of this Agreement unless otherwise
agreed by the Parties. In addition, the Parties recognize that each Party may from time to time desire to issue additional press releases and make other public statements or disclosures regarding the
subject matter of this Agreement, and hereby agree that such publication shall be permitted without the other Party's consent, to the extent that such additional releases or statements that do not 

66

 

contain
information beyond that included in the press release attached as Exhibit B or in subsequent press releases approved by both Parties. Any other publication, news release or other public
announcement relating to this Agreement or to the performance hereunder, shall first be reviewed and approved by both Parties; provided, however, that any disclosure which is required by law or the
rules of a securities exchange, as reasonably advised by the disclosing Party's counsel, may be made without the prior consent of the other Party, although the other Party shall be given prompt notice
of any such legally required disclosure and to the extent practicable shall provide the other Party an opportunity to comment on the proposed disclosure. 

        12.3    Securities Filings.    In the event Corgentech proposes to file with the Securities and Exchange Commission or
the securities regulators of any state or other jurisdiction a registration statement or any other disclosure document which describes or refers to the Collaboration or this Agreement under the
Securities Act of 1933, as amended, the Exchange Act, or any other applicable securities law, Corgentech shall notify BMS of such intention and shall provide BMS with a copy of relevant portions of
the proposed filing [*] prior to such filing (and any revisions to such portions of the proposed filing a reasonable time prior
to the filing thereof), including any exhibits thereto relating to the Collaboration, and shall [*] confidential treatment of
any information concerning BMS or the Collaboration that [*], consistent with Corgentech's disclosure obligations under
applicable securities laws. 

        12.4    Termination of Prior Agreement.    This Agreement supersedes the confidentiality agreement between the Parties
dated November 21, 2002. All Information disclosed pursuant to that agreement shall be deemed Confidential Information disclosed under this Article 12 and shall be subject to the terms
of this Article 12. 

        12.5    Patient Information.    BMS and Corgentech agree to abide by all laws, rules, regulations, and orders of all
applicable supranational, national, federal, state, provincial, and local governmental entities concerning the confidentiality or protection of patient identifiable information and/or patients'
protected health information, as defined by U.S. C.F.R. Part 160 or personal data as defined by EU Directive 95/46/EC or any other applicable legislation, in the course of their performance
under this Agreement. 

ARTICLE 13  

 EXPORT CONTROL  

        13.1    Authority.    This Agreement is made subject to any restrictions concerning the export of products or
technical information from the United States of America or other countries which may be imposed upon or related to Corgentech or BMS from time to time. Each Party agrees that it will not export,
directly or indirectly, any technical information acquired from the other Party under this Agreement or any products using such technical information to a location or in a manner that at the time of
export requires an export license or other governmental approval, without first obtaining the written consent to do so from the appropriate agency or other governmental entity. 

ARTICLE 14  

 TERM AND TERMINATION  

        14.1    Term.    This Agreement shall become effective on the Effective Date and shall remain in effect with respect
to each Licensed Product until the expiration of the last profit sharing or royalty obligation with respect to such Licensed Product, as provided in Section 6.8. 

        14.2    Voluntary Termination of Agreement by BMS.    BMS may terminate this Agreement in its entirety or, on a
country-by-country basis, with respect to a given Licensed Product by providing to Corgentech six (6) months prior written notice. If such termination is as to one or
more countries, but 

67

 

not
as to the entire Agreement, then, following such termination the Territory shall be deemed to exclude such country(ies), and the Agreement shall continue in force and effect for the
non-terminated country(ies). Upon the effective termination of this Agreement with respect to any country(ies) pursuant to this Section 14.2, the Parties shall no longer share any
Development Costs, Allowable Expenses, Profit or Loss as otherwise provided in this Agreement with respect to the country or countries for which this Agreement terminates. 

        14.3    Termination For Breach.    

        (a)   If either Party believes that the other is in material breach of this Agreement, then the non-breaching Party
may deliver notice of such breach to the other Party. In such notice the non-breaching Party shall identify the actions or conduct that it wishes such Party to take for an acceptable and
prompt cure of such breach; provided, that such identified actions shall not be binding upon the other Party with respect to the actions that it may
need to take to cure such breach. The allegedly breaching Party shall have ninety (90) days to either cure such breach or, if cure cannot be reasonably effected within such ninety
(90) day period, to deliver to the other Party a plan for curing such breach which is reasonably sufficient to effect a cure. Following delivery of such plan, the breaching Party shall use
Diligent Efforts to carry out the plan and cure the breach. 

        (b)   If the Party receiving notice of breach fails to cure such breach within the ninety (90) day period, or the Party
providing the notice reasonably determines that the proposed corrective plan or the actions being taken to carry it out is not commercially practicable, the Party originally delivering the notice may
declare a breach hereunder upon thirty (30) days advance written notice. Such notice shall effectively terminate this Agreement upon expiration of such thirty (30) day period, subject to
Sections 14.3(c) and (d). 

        (c)   If a breach alleged under Section 14.3(a) pertains  [*] (i) the [*], or (ii) the
Commercialization by BMS or Corgentech [*], then the notice provided under Section 14.3(a) shall state such fact and any
termination under this Section 14.3 for such breach shall be effective only as to the specified country or countries. 

        (d)   If a Party gives notice of termination under this Section 14.3 and the other Party disputes whether such notice
was proper, or the Parties disagree as to whether the breaching Party has cured such breach within the ninety (90)-day period (or used Diligent Efforts to cure such breach pursuant to a
plan if such cure cannot be reasonably effected within such ninety (90)-day period), then the issue of whether this Agreement has been terminated shall be resolved in accordance with
Article 16. If as a result of such dispute resolution process it is determined that the notice of termination was proper or that the breaching Party failed to cured such breach within the
ninety (90)-day period (or failed to use Diligent Efforts to cure such breach pursuant to a plan if such cure cannot be reasonably effected within such ninety (90)-day period),
as the case may be, then such termination shall be deemed to have been effective thirty (30) days following the date of the notice of termination provided pursuant to Section 14.3. If as
a result of such dispute resolution process it is determined that the notice of termination was improper, then no termination shall have occurred and this Agreement shall have remained in effect. 

        14.4    Licenses and Royalties Upon Termination.    

        (a)   If BMS terminates this Agreement in a particular country or countries pursuant to Section 14.2, then the license
granted to BMS under Section 10.1 shall terminate solely with respect to the countries in which such termination becomes effective, and BMS shall, and hereby does, grant to Corgentech an
exclusive, royalty-free license, with the right to grant sublicenses, under the BMS Technology (but only as to such BMS Know-How that is then incorporated into, and BMS Patents
that then claim, a Licensed Product Commercialized in such country or developed for such country under the then current Development Plan) and BMS' interest in any 

68

 

Trademarks
in such country or countries, to develop, make, have made, sell, offer to sell and import Licensed Product in such country or countries. 

        (b)   

          (i)  If this Agreement is terminated in a given country or countries as described in Section 14.3(c) and BMS is the
breaching Party, then (i) the licenses granted to BMS pursuant to Article 10 shall terminate (other than the license provided in Section 10.3) solely with respect to the relevant
country or countries, and (ii) BMS shall, and hereby does, grant effective as of such termination of BMS' licenses, to Corgentech an exclusive, sublicensable license under the BMS Technology
(but only as to such BMS Know-How that is then incorporated into and BMS Patents that then claim a Licensed Product Commercialized in such country or developed for such country under the
then current Development Plan) and BMS' interest in any Trademarks in such country or countries to develop, make, have made, use, sell, offer for sale and import those Licensed Product(s), within the
Field and in such terminated country or countries, that is(are) Commercialized in such country or developed for such country under the then current Development Plan. In the event of such termination,
BMS may, only upon Corgentech's written consent, continue to sell Licensed Product in such country or countries until the occurrence of both: (1) BMS' completion of such transfer of all
Approvals and licenses described under Section 14.5(a), and (2) Corgentech directing BMS to halt all sales of Licensed Products in such country by written notice. Upon written request by
BMS, Corgentech shall purchase any remaining BMS inventory of Intermediate, E2F Decoy, Vialed Product, Licensed Device and Final Product at BMS' cost. 

         (ii)  Upon the termination of this Agreement by Corgentech pursuant to Section 14.3(a) for material breach by BMS other
than as described in Section 14.3(c), the licenses granted to BMS under Article 10 shall terminate in their entirety (other than the license provided in Section 10.3) and BMS
shall, and hereby does, grant effective as of the termination of BMS' licenses, to Corgentech an exclusive, sublicensable license under the BMS Technology (but only as to such BMS Know-How
that is then incorporated into, and BMS Patents that then claim, a Licensed Product Commercialized in such country or developed for such country under the then current Development Plan) and BMS'
interest in any Trademarks to develop, make, have made, use, sell, offer for sale and import those Licensed Product(s), within the Field and in such terminated country or countries, that is(are)
Commercialized in such country or developed for such country under the then current Development Plan. 

        (c)   

          (i)  If this Agreement is terminated by BMS as described in Section 14.3 with respect to the Co-Promotion
Territory, then (A) the license granted to Corgentech pursuant to Section 10.2 shall terminate solely with respect to the Co-Promotion Territory; (B) effective as of
such termination of Corgentech's license, (1) Corgentech's right to Co-Promote Licensed Products in the Co-Promotion Territory shall terminate, and (2) Corgentech
shall not share in the Profit or Loss after the termination date, and shall [*] after the termination date; (C) except
for any such termination made pursuant to Section 14.3(c)(ii), BMS shall [*]; (D) the license granted to BMS
pursuant to Section 10.1(b) shall automatically become exclusive without further action required on the part of either Party and shall survive so long as BMS is using Diligent Efforts to
develop or Commercialize a Licensed Product in the Co-Promotion Territory; (E) Corgentech shall be deemed to have automatically granted to BMS a non-exclusive license
under its interest in any Corgentech name or mark in the Co-Promotion Territory solely for use in connection with BMS' practice of the licenses retained by BMS under Section 10.1
therein until such time as BMS has disposed in the ordinary course of business of all inventory of Licensed Product or packaging materials then existing or on order 

69

 

for
use in the Co-Promotion Territory bearing any such Corgentech name or mark; and (F) sales in the Co-Promotion Territory shall  [*]. If any filing is required as a result of the preceding sentence
pursuant to the HSR Act, the Parties will use all
reasonable efforts to make all necessary filings under the HSR Act as promptly as practicable at BMS' expense. 

         (ii)  If this Agreement is terminated by BMS as described in Section 14.3 with respect to any country in the Royalty
Territory, then (A) the license granted to Corgentech pursuant to Section 10.2 shall terminate solely with respect to such country(ies); (B) BMS shall  [*] Corgentech after such
termination [*]);
(C) Corgentech shall be deemed to have automatically granted to BMS a non-exclusive license under its interest in any Corgentech name or mark in such county(ies) solely for use in
connection with BMS' practice of the licenses retained by BMS under Section 10.1 in such country or countries until such time as BMS has disposed in the ordinary course of business of all
inventory of Licensed Product or packaging materials then existing or on order for use in such country or countries bearing any such Corgentech name or mark; and
(D) [*] in the Royalty Territory shall [*] with
respect to the Territory under [*]. 

        (d)   

          (i)  If, [*] Licensed Product in the
Co-Promotion Territory, this Agreement is terminated in whole or in part by Corgentech for a breach by BMS other than for a
breach described by Section 14.3(c)(ii) and such breach by BMS results in the termination of this Agreement with respect  [*]), then Corgentech shall [*] Licensed Product in the
Co-Promotion Territory [*]. 

         (ii)  If, [*] Licensed Product in the
Co-Promotion Territory, this Agreement is terminated in whole or in part by Corgentech for a breach by BMS under Section 14.3 or by BMS pursuant to Section 14.2, and such
breach by BMS results in the termination of this Agreement with respect [*], then Corgentech shall  [*] Licensed Product in the Co-Promotion Territory.

       (iii)  If this Agreement is terminated in whole or in part  [*] in the Co-Promotion Territory or any Major European Country by Corgentech for a breach by BMS
under
Section 14.3 or by BMS pursuant to Section 14.2 with respect to any country(ies) in the Royalty Territory, then Corgentech shall  [*] of Licensed Product in such terminated county(ies);
provided, that if such termination is attributable to, or would have
been avoided but for, [*] in the Licensed Product in any such terminated country(ies) in response to  [*], then Corgentech shall [*] Licensed Product in such
terminated country(ies) [*]. 

        (e)   If this Agreement is terminated in whole or in part by BMS for a breach by Corgentech as described in Section 14.3
(other than as described in Section 14.3(c)(ii)), and such breach results in termination of this Agreement with respect  [*]), then BMS [*] Licensed
Product in the
Co-Promotion Territory [*]. 

        (f)    If a Party retains licenses after termination of this Agreement pursuant to Section 14.2 or 14.3, and such
licenses include sublicenses under rights granted to the other Party pursuant to an agreement between such other Party and a Third Party (including without limitation under any Existing Third Party
License Agreements, if BMS retains a license after termination of this Agreement), then the other Party shall either
(i) [*], in which case the Parties shall [*], as
applicable, or (ii) [*] with such agreement, in which case the Party to which such  [*] shall be [*] and
shall  [*]. 

        14.5    Other Effects of Termination of Licenses or of the Agreement.    

        (a)   In the event of termination of this Agreement in whole or in part pursuant to Section 14.2, or by Corgentech under
Section 14.3, BMS shall assign to Corgentech all interest in 

70

 

and
to all regulatory filings, Approvals, and Drug Approval Applications relating to Licensed Product either worldwide or, if such termination is effective only in one or more country(ies), in the
country(ies) in which such termination is effective. BMS shall cooperate with Corgentech ([*]) to effect such transfers in an
orderly fashion and shall provide to Corgentech any copies of relevant documents and rights of reference and/or access necessary to allow Corgentech to exercise its rights under this
Article 14. Additionally, in such event, BMS shall provide to Corgentech [*], and shall grant to Corgentech  [*] under applicable law with respect to
Licensed Product only. 

        (b)   In the event of termination of this Agreement in whole or in part by BMS under Section 14.3, Corgentech shall
assign to BMS all rights, title and interests Corgentech may have in and to all regulatory filings, Approvals, and Drug Approval Applications relating to Licensed Product, in the country(ies) in which
such termination is effective. Corgentech shall cooperate with BMS [*] to effect such transfers in an orderly fashion and shall
provide to BMS any copies of relevant documents and rights of reference and/or access necessary to allow BMS to exercise its rights under this Article 14. 

        (c)   Additionally, if either (i) this Agreement is terminated with respect to Licensed Product in a particular country
or countries as provided in Section 14.2 by BMS or Section 14.3 by Corgentech, or (ii) this Agreement terminates in its entirety other than for Corgentech's material breach, and
if BMS is then responsible for the manufacture of Intermediate, E2F Decoy, Vialed Product, Final Product, Licensed Device or any other form or component of Licensed Product for such country or
countries, BMS shall continue to supply such to Corgentech for such countries or in the Territory, whichever is the scope of termination of BMS' rights, at a supply price equal to  [*]. Such obligation
shall continue from the effective date of such termination until  [*], in each case provided that Corgentech uses Diligent Efforts to take such action, and further provided that in no event
shall such supply obligation extend for more than [*] after the effective date of such termination. BMS shall cooperate with
Corgentech at Corgentech's request to facilitate discussions between Corgentech and any such Third Party manufacturer. Further, upon Corgentech's request, BMS shall provide such technical assistance,
at [*], as may reasonably be requested to transfer all technology necessary or useful for Corgentech to commence or continue
manufacture of Licensed Product as provided herein. 

        (d)   Additionally, if either (i) this Agreement is terminated with respect to Licensed Product in the
Co-Promotion Territory as provided in Section 14.3 by BMS, or (ii) this Agreement terminates in its entirety under Section 14.3 other than for BMS' material breach and
if Corgentech is then responsible for the manufacture of Intermediate, E2F Decoy, Vialed Product, Final Product, Licensed Device or any other form or component of Licensed Product, Corgentech shall
continue to supply such to BMS for the Co-Promotion Territory at a supply price equal to [*]. Such obligation shall
continue from the effective date of such
termination until [*] in the Co-Promotion Territory, in each case provided that BMS is using Diligent Efforts to
take such action and further provided that in no event shall such supply obligation extend for more than [*] after the effective
date of such termination. Corgentech shall cooperate with BMS at BMS' request to facilitate discussions between BMS and any such Third Party manufacturer. Further, upon BMS' request, Corgentech shall
provide such technical assistance, at [*], as may reasonably be requested to transfer all technology necessary or useful for BMS
to commence or continue manufacturing activities as provided herein. 

        (e)   Effective as of the effective termination date of this Agreement pursuant to Section 14.3 with respect to any
country, the Parties shall no longer share any Development Costs, Allowable Expenses, Profit or Loss as otherwise provided in this Agreement with respect to the country or countries for which this
Agreement terminates, as applicable. 

71

 

        (f)    If this Agreement terminates as to the Co-Promotion Territory or as to the EU, for any reason whatsoever, BMS
shall not be responsible for any milestone payments that are achieved under Sections 6.3(a) or 6.3(b) with respect to the terminated country or countries following the date that notice of
termination was provided to, or given by, BMS in accordance with Section 14.2 or 14.3. 

        (g)   Not later than [*] after any termination of this
Agreement with respect to the Co-Promotion Territory, the Parties will reconcile Profit and Loss upon the effective termination date pursuant to Section 6.5 and promptly make such
payments as are necessary to effect such reconciliation. 

        14.6    Survival.    The following provisions shall survive any expiration or termination of this Agreement: Articles
12, 13, 15 (as to actions arising during the term of this Agreement or in the course of a Party practicing any licenses retained by such Party thereafter), 16 and 17 (other than Section 17.13),
and Sections 6.8(c), 6.9, 6.10, 6.11, 6.12, 6.13, 6.14, 6.15, 6.16, 9.1(b), 9.2, 10.3, 10.8 (as relevant), 11.1, 11.3 (as to those causes of action that accrued prior to such expiration or
termination), 11.8(d) (as to those causes of action that accrued prior to such expiration or termination or in accordance with a Party's practice of the applicable license after termination), 12.1,
14.4, 14.5, and 14.6. Subject to Sections 14.2 (second sentence), 14.5(e) and 14.5(f), termination of this Agreement shall not relieve the Parties of any liability or obligation which accrued
hereunder prior to the effective date of such termination nor preclude either Party from pursuing all rights and remedies it may have hereunder or at law or in equity with respect to any breach of
this Agreement nor prejudice either Party's right to obtain performance of any obligation. The remedies provided in this Article 14 are not exclusive of any remedies a Party may have in law or
equity. 

ARTICLE 15  

 INDEMNIFICATION  

        15.1    Indemnification in the Royalty Territory.    

        (a)    Indemnification by BMS.    Subject to
Section 15.3, BMS agrees to defend Corgentech, its Affiliates and their respective directors, officers, employees and agents (collectively, the "Corgentech
Indemnitees"), at BMS' cost and expense, and shall indemnify and hold harmless the Corgentech Indemnitees from and against any liabilities, losses, costs, damages, fees or
expenses (including reasonable legal expenses and attorneys' fees incurred by the Corgentech Indemnitees until such time as BMS has acknowledged and assumed its indemnification obligation hereunder
with respect to a Claim) payable to a Third Party (collectively, "Losses") arising out of any claim, action, lawsuit, or other proceeding (collectively,
"Claims") brought against any Corgentech Indemnitee by a Third Party resulting directly or indirectly from the manufacture, use, handling, storage,
Commercialization or other disposition of Licensed Product in the Royalty Territory by BMS, its Affiliates, employees, agents or sublicensees, except to the extent such Losses result from
(i) the negligence or willful misconduct of any Corgentech Indemnitee or any Corgentech licensee or contractor; (ii) any breach by Corgentech of any of its representations, warranties,
covenants or obligations pursuant to this Agreement; (iii) intellectual property infringement and trade secret misappropriation liability resulting from (A) the development or
manufacture of any Licensed Product prior to the Effective Date, or (B) manufacture of Licensed Product other than in accordance with Specifications by Corgentech, its Affiliates or their
licensees or contractors after the Effective Date anywhere in the world for use anywhere in the Royalty Territory, or (C) Commercialization by Corgentech, its Affiliates, contractors and
licensees as permitted under this Agreement in the Royalty Territory after the Effective Date; (iv) any action or omission of Corgentech or its Affiliates or contractors occurring prior to the
Effective Date; or (v) breach of applicable law by any Corgentech Indemnitee or any Corgentech licensee or contractor. 

72

 

        (b)    Indemnification by Corgentech.    Subject to
Section 15.3, Corgentech agrees to defend BMS, its Affiliates and their respective directors, officers, employees and agents (collectively, the "BMS
Indemnitees"), at Corgentech's cost and expense, and shall indemnify and hold harmless the BMS Indemnitees from and against any Losses arising out of any Claims brought against
any BMS Indemnitee by a Third Party resulting directly from [*] in the Royalty Territory as to which Corgentech  [*]. 

        15.2    Indemnification in the Co-Promotion Territory.    

        (a)   Subject to Section 15.3, each Party hereby agrees to defend the other Party, its Affiliates and their respective
directors, officers, employees and agents (collectively, the "Indemnitees"), at such Party's cost and expense, and shall indemnify and hold harmless the
Indemnitees from and against any and all Losses arising out of any Claim brought against such Indemnitee by a Third Party resulting directly or indirectly from the manufacture, use, handling, storage,
Commercialization or other disposition of Licensed Product in the Co-Promotion Territory by the indemnifying Party, its Affiliates, employees, agents or sublicensees, but only to the
extent such Losses: (i) result from (A) the negligence or willful misconduct of the indemnifying Party, its Affiliates, employees, agents or sublicensees; (B) any breach by the
indemnifying Party of any of its representations, warranties, covenants or obligations pursuant to this Agreement; (C) intellectual property infringement and trade secret misappropriation
liability resulting from (1) the development or manufacture of any Licensed Product by the indemnifying Party prior to the Effective Date; (2) manufacture of Licensed Product other than
in accordance with Specifications by the indemnifying Party, its Affiliates or their licensees or contractors after the Effective Date anywhere in the world for use anywhere in the
Co-Promotion Territory; or (3) Commercialization by an indemnifying Party, its Affiliates, contractors and licensees as permitted under this Agreement in the
Co-Promotion Territory from and after the date that the other Party has ceased to participate in Profit and Loss in the Co-Promotion Territory; (D) any action or
omission of the indemnifying Party or its Affiliates or contractors occurring prior to the Effective Date; (E) breach of applicable law by any indemnifying Party or any of its licensees or
contractors; or (F) actions described in Section 5.10(j) for which the indemnifying Party is the Hiring Party; and (ii) do not result from the negligence or willful misconduct of,
or breach of this Agreement by, any Indemnitee. 

        (b)   Any Losses, other than those Losses described in Section 15.2(a), in connection with any Claim brought against
either Party by a Third Party resulting directly or indirectly from the manufacture, use, handling, storage, sale or other disposition of Licensed Product in the Co-Promotion Territory,
including without limitation Losses from claims of infringement of Third Party patent rights, shall [*] Licensed Product in the
Co-Promotion Territory, or [*] Party. Any Losses, other than those Losses described in Section 15.2(a), in
connection with any Claim brought against either Party by a Third Party resulting directly or indirectly from the development, use, handling or storage of Licensed Product  [*] Party, [*] Licensed Product in the
Co-Promotion Territory. In the event that either Party receives notice of a Claim with respect to a Licensed Product described herein, such Party shall inform the other Party as soon as
reasonably practicable. The Parties shall confer through the JSC how to respond to the Claim and how to handle the Claim in an efficient manner. In the absence of such an agreement, each Party shall
have the right to take such action as it deems appropriate. 

        (c)   In the event that either Party receives notice of a Claim with respect to a Licensed Product in the
Co-Promotion Territory, such Party shall inform the other Party as soon as reasonably practicable. The Parties shall confer through the JSC how to respond to the Claim and how to handle
the Claim in an efficient manner. In the absence of such an agreement, each Party shall have the right to take such action as it deems appropriate, subject to Section 15.3. 

73

 

        15.3    Claims for Indemnification.    

        (a)   A Party believing that it is entitled to indemnification under Sections 15.1, 15.2(a) or 10.4(c) (an
"Indemnified Party") shall give prompt written notification to the other Party (the "Indemnifying
Party") of the commencement of any Claim for which indemnification may be sought or, if earlier, upon the assertion of any such Claim by a Third Party (it being understood and
agreed, however, that the failure by an Indemnified Party to give notice of a Third-Party Claim as provided in this Section 15.3 shall not relieve the Indemnifying Party of its indemnification
obligation under this Agreement except and only to the extent that such Indemnifying Party is actually prejudiced as a result of such failure to give notice). Within  [*] after delivery of such
notification, the Indemnifying Party shall, upon written notice thereof to the Indemnified Party,
assume control of the defense of such Claim with counsel reasonably satisfactory to the Indemnified Party. If a Party believes that a Claim presented to it for indemnification is one as to which the
Party seeking indemnification is not entitled to indemnification under Section 15.1 or 15.2, it shall so notify the Party seeking indemnification. 

        (b)   The Indemnified Party may participate in such defense at its own expense; provided
that if the Indemnified Party reasonably concludes, based on advice from counsel, that the Indemnifying Party and the Indemnified Party have conflicting interests with respect
to such Claim, the Indemnifying Party shall be responsible for the reasonable fees and expenses of counsel to the Indemnified Party solely in connection therewith. 

        (c)   The Indemnifying Party shall keep the other Party advised of the status of such Claim and the defense thereof and shall
consider recommendations made by the Indemnified Party with respect thereto. 

        (d)   The Indemnified Party shall not agree to any settlement of such Claim without the prior written consent of the
Indemnifying Party. The Indemnifying Party shall not agree to any settlement of such Claim or consent to any judgment in respect thereof that does not include a complete and unconditional release of
the Indemnified Party from all liability with respect thereto or that imposes any liability or obligation on the Indemnified Party or adversely affects the Indemnified Party without the prior written
consent of the Indemnified Party. 

        15.4    Insurance.    Each Party shall maintain at its sole cost and expense, an adequate liability insurance or
self-insurance program (including product liability insurance) to protect against potential liabilities and risk arising out of activities to be performed under this Agreement and any
agreement related hereto (including without limitation any agreement relating to the manufacture or supply of Intermediate, E2F Decoy, Vialed Product, Licensed Device or Final Product) and upon such
terms (including coverages, deductible limits and self-insured retentions) as are customary in the U.S. pharmaceutical industry for the activities to be conducted by such Parties under
this Agreement and are appropriate to cover the Parties' respective indemnification obligations hereunder (the "Coverage"). Such product liability
insurance or self-insurance program shall insure against all liability, including without limitation personal injury, physical injury or property damage arising out of the manufacture,
sale, distribution or marketing of the Licensed Products (and the manufacturing of Intermediate, E2F Decoy, Vialed Product, Licensed Device and Final Product).  [*] Licensed Product in [*], the minimum amount of such
Coverage shall be not less than [*] and [*]. After  [*], the required minimum amount of Coverage shall
increase by an amount equal to an additional  [*] for each [*]; provided, however, that in no event
shall the Coverage required pursuant to this Section 15.4 exceed [*] and  [*]. Each Party shall furnish to the other evidence of such insurance and/or
self insurance, upon request. Such insurance
information shall be kept in confidence in the same manner as any other Confidential Information disclosed by one Party to the other hereunder. The coverage limits set forth herein shall not create
any limitation on a Party's liability to the other under this Agreement. 

74

 
ARTICLE 16  

 DISPUTE RESOLUTION  

        16.1    Disputes.    The Parties recognize that disputes as to certain matters may from time to time arise during the
term of this Agreement that relate to either Party's rights and/or obligations hereunder. It is the desire of the Parties to establish procedures to facilitate the resolution of disputes arising under
this Agreement in an expedient manner by mutual cooperation and without resort to arbitration or litigation. To accomplish this objective, the Parties agree to follow the procedures set forth in this
Article 16 if and when a dispute arises under this Agreement. If the JSC, in consultation with each Party's Alliance Managers, is unable to resolve any dispute within  [*] after such dispute is
submitted to it (other than a matter within the final decision-making authority of BMS with respect to
[*]), either Party may, by written notice to the other Party, have such dispute referred to their respective executive officers
designated below or their
successors, for attempted resolution by good faith negotiations within [*] after such notice is received. Such designated
officers are as follows: 

        If
the matter relates to a development, regulatory, or manufacturing matter or other matter falling within the purview of the JDC or JMC (or within the purview of the JFC as it relates
to a development, regulatory, or manufacturing matter): 

	For BMS:	 	Chief Executive Officer or his/her direct report
	

For Corgentech:	
 	

Chief Executive Officer or his/her direct report

If
the matter relates to a Commercialization matter or other matter falling within the purview of the JCC (or within the purview of the JFC as it relates to a Commercialization matter): 

	For BMS:	 	Chief Executive Officer
	

For Corgentech:	
 	

Chief Executive Officer

In
the event the designated officers are not able to resolve such dispute within such [*] period after receipt of written, then
either such officer may request, within [*] thereafter, that the Parties attempt non-binding mediation of any such
matter for a period not to exceed [*]. If the matter remains unresolved after such  [*], or if neither officer so requests such non-binding mediation, then:

        (a)   any dispute, to the extent it relates to the [*]
Agreement, shall, at the election of either Party, be decided in accordance with the provisions of Section 16.2 below (it being understood that matters of  [*]), 

        (b)   if the dispute relates to a Commercialization matter in the Co-Promotion Territory or other matter falling
within the purview of the JCC, such matter shall be subject to [*]; provided, that such  [*] consistent with the terms of this Agreement. 

        16.2    Arbitration.    Except as provided in Sections 6.14, 16.1(b) and 16.2(b), any dispute between the
Parties relating to or arising out of the [*] Agreement that cannot be resolved in accordance with Section 16.1 above
shall be resolved through binding arbitration as follows: 

        (a)   A Party may submit such dispute to arbitration by notifying the other Party, in writing, of such dispute. Within  [*] after receipt of such notice,
the Parties shall designate in writing a single arbitrator to resolve the dispute;  provided, however, that if the Parties cannot agree on an arbitrator
within such
[*] period, the arbitrator shall be selected by the Chicago, Illinois office of the American Arbitration Association (the
"AAA") or, if such office does not exist or is unable to make a selection, by the office of the AAA nearest to Chicago. The arbitrator shall be a lawyer
knowledgeable and experienced in the law concerning the subject matter of the dispute, and shall not be an Affiliate, employee, consultant, officer, director or stockholder of either Party, or 

75

 

otherwise
have any current or previous relationship with either Party or its respective Affiliates. The governing law in Section 17.15 shall govern any such proceedings. 

        (b)   Disputes regarding the [*] pursuant to this
Section 16.2 but instead shall be submitted to a court of competent jurisdiction pursuant to Section 16.3. 

        (c)   Within thirty (30) days after the designation of the arbitrator, the arbitrator and the Parties shall meet, and
each Party shall provide to the arbitrator a written summary of all disputed issues, such Party's position on such disputed issues and such Party's proposed ruling on the merits of each such issue. 

        (d)   The arbitrator shall set a date for a hearing, which shall be no later than thirty (30) days after the submission
of written proposals pursuant to Section 16.2(c), for the presentation of evidence and legal argument concerning each of the issues identified by the Parties. The Parties shall have the right
to be
represented by counsel. Except as provided herein, the arbitration shall be governed by the Commercial Arbitration Rules of the AAA applicable at the time of the notice of arbitration pursuant to
Section 16.2(a); provided, however, that the Federal Rules of Evidence shall apply with regard to
the admissibility of evidence in such hearing. 

        (e)   The arbitrator shall use his or her best efforts to rule on each disputed issue within thirty (30) days after
completion of the hearing described in Section 16.2(d). The determination of the arbitrator as to the resolution of any dispute shall be binding and conclusive upon all Parties. All rulings of
the arbitrator shall be in writing and shall be delivered to the Parties except to the extent that the Commercial Arbitration Rules of the AAA provide otherwise. Nothing contained herein shall be
construed to permit the arbitrator to award punitive, exemplary or any similar damages. 

        (f)    The (i) attorneys' fees of the Parties in any arbitration, (ii) fees of engaging the arbitrator and
(iii) costs and expenses of the arbitration shall be borne by the Parties in a proportion determined by the arbitrator. 

        (g)   Any arbitration pursuant to this Section 16.2 shall be conducted in  [*]. Any arbitration award may be entered in and enforced by a court in
accordance with Section 16.3. 

        (h)   Notwithstanding anything in this Section 16.2, each Party shall have the right to seek injunctive or other
equitable relief from a court of competent jurisdiction pursuant to Section 16.3 that may be necessary to avoid irreparable harm, maintain the status quo or preserve the subject matter of the
arbitration. 

        16.3    Jurisdiction.    Each Party, for the purpose of enforcing an award under Section 16.2(g) or for seeking
injunctive or other equitable relief, or for matters described in Section 16.2(b), (a) irrevocably submits to the exclusive jurisdiction in the United States District Court for the
Northern District of Illinois and any state courts of competent jurisdiction located in the state of Illinois (collectively, the "Courts"), for purposes
of any action, suit or other proceeding arising out of this Agreement, and (b) agrees not to raise any objection at any time to the laying or maintaining of the venue of any such action, suit
or proceeding in any of such Courts, irrevocably waives any claim that such action, suit or other proceeding has been brought in an inconvenient forum and further irrevocably waives the right to
object, with respect to such action, suit or other proceeding, that such Court does not have any jurisdiction over such Party. 

ARTICLE 17  

 MISCELLANEOUS  

        17.1    Nonsolicitation of Employees.    [*], each Party agrees that neither it nor any of its
divisions, operating groups or Affiliates that participates in or is responsible for the development or 

76

 

Commercialization
of Licensed Product pursuant to this Agreement shall recruit, solicit or induce any employee of the other Party directly involved in the activities conducted pursuant to this
Agreement to terminate his or her employment with such other Party and become employed by or consult for such other Party, whether or not such employee is a full-time employee of such
other Party, and whether or not such employment is pursuant to a written agreement or is at-will. For purposes of the foregoing, "recruit", "solicit" or "induce" shall not be deemed to
mean (a) circumstances where an employee of one Party initiates contact with the other Party or any of its Affiliates with regard to possible employment, or (b) general solicitations of
employment not specifically targeted at employees of a Party or any of its Affiliates, including responses to general advertisements. 

        17.2    Entire Agreement; Amendment.    This Agreement, together with the Equity Agreements and all Exhibits hereto,
set forth the complete, final and exclusive agreement and all covenants, promises, agreements, warranties, representations, conditions and understandings between the Parties hereto, and supersede and
terminate all prior agreements and understandings between the Parties. There are no covenants, promises, agreements, warranties, representations, conditions or understandings, either oral or written,
between the Parties other than as are set forth herein and therein. No subsequent alteration, amendment, change or addition to this Agreement shall be binding upon the Parties unless reduced to
writing and signed by an authorized officer of each Party. 

        17.3    Force Majeure.    Both Parties shall be excused from the performance of their obligations under this Agreement
to the extent that such performance is prevented by force majeure and the nonperforming Party promptly provides notice of the prevention to the other Party. Such excuse shall be continued so long as
the condition constituting force majeure continues and the nonperforming Party takes reasonable efforts to remove the condition. For purposes of this Agreement, force majeure shall include conditions
beyond the control of the Parties, including without limitation, an act of God, voluntary or involuntary compliance with any regulation, law or order of any government, war, acts of terrorism, civil
commotion, labor strike or lock-out, epidemic, failure or default of public utilities or common carriers, destruction of production facilities or materials by fire, earthquake, flood,
storm or similar catastrophe; provided, however, the payment of invoices due and owing hereunder shall not be delayed by the payor because of a force
majeure affecting the payor. 

        17.4    Notices.    Any notice required or permitted to be given under this Agreement shall be in writing, shall
specifically refer to this Agreement and shall be deemed to have been sufficiently given for all purposes if mailed by first class certified or registered mail, postage prepaid, express delivery 

77

 

service
or personally delivered. Unless otherwise specified in writing, the mailing addresses of the Parties shall be as described below. 

	For Corgentech:	 	Corgentech Inc.

650 Gateway Boulevard

South San Francisco, CA 94080

Attention: President
	

With copies to:	
 	

Cooley Godward LLP

Five Palo Alto Square

3000 El Camino Real

Palo Alto, CA 94306

Attention: Judith Hasko
	

 	
 	

Corgentech Inc.

650 Gateway Boulevard

South San Francisco, CA 94080

Attention: Vice President—Business Development
	

For BMS:	
 	

Bristol-Myers Squibb Company

345 Park Avenue

New York, New York 10154

Attention: President
	

With copies to:	
 	

Hughes Hubbard & Reed LLP

One Battery Park Plaza

New York, New York 10004

Attn: James H. Bluck
	

 	
 	

Bristol-Myers Squibb Pharmaceutical Group

Route 206 and Province Line Road

Princeton, New Jersey 08543-4000

Attn: Vice President—Alliance Management
	

 	
 	

Bristol-Myers Squibb Pharmaceutical Group

Route 206 and Province Line Road

Princeton, New Jersey 08543-4000

Attn: Vice President and Senior Counsel—Pharmaceutical Group

        17.5    Consents Not Unreasonably Withheld, Delayed or Conditioned.    Unless otherwise provided in this Agreement,
whenever provision is made in this Agreement for either Party to secure the consent or approval of the other, that consent or approval shall not unreasonably be withheld, delayed or conditioned, and
whenever in this Agreement provisions are made for one Party to object to or disapprove a matter, such objection or disapproval shall not unreasonably be exercised. 

        17.6    Maintenance of Records.    Each Party shall keep and maintain all records required by law or regulation with
respect to Licensed Product and shall make copies of such records available to the other Party upon request. 

        17.7    Assignment.    Neither Party may assign or transfer this Agreement or any rights or obligations hereunder
without the prior written consent of the other, except that a Party may make such an assignment or transfer without the other Party's consent to Affiliates or to a successor to substantially all of
the business of such Party to which this Agreement relates, whether in a merger, sale of stock, sale of assets or other similar transaction. Any permitted successor or assignee of rights and/or
obligations hereunder shall, in a writing to the other Party, expressly assume performance of 

78

 

such
rights and/or obligations. Any permitted assignment or transfer shall be binding on the successors of the assigning Party. Any assignment or transfer, or attempted assignment or transfer, by
either Party in violation of the terms of this Section 17.7 shall be null and void and of no legal effect. 

        17.8    Performance by Affiliates and Local Operating Entities.    Each of Corgentech and BMS acknowledge that certain
obligations under this Agreement may be performed by Affiliates of Corgentech and BMS. Each of Corgentech and BMS guarantees performance of this Agreement by any of its Affiliates. 

        17.9    Counterparts.    This Agreement may be executed in two (2) or more counterparts, each of which shall be
deemed an original, but all of which together shall constitute one (1) and the same instrument. 

        17.10    Severability.    If any one or more of the provisions of this Agreement is held to be invalid or
unenforceable by any court of competent jurisdiction from which no appeal can be or is taken, the provision shall be considered severed from this Agreement and shall not serve to invalidate any
remaining provisions hereof. The Parties shall make a good faith effort to replace any invalid or unenforceable provision with a valid and enforceable one such that the objectives contemplated by the
Parties when entering this Agreement may be realized. 

        17.11    Ambiguities.    Ambiguities, if any, in this Agreement shall not be construed against any Party, irrespective
of which Party may be deemed to have authored the ambiguous provision. 

        17.12    Headings.    The headings for each article and section in this Agreement have been inserted for convenience
of reference only and are not intended to limit or expand on the meaning of the language contained in the particular article or section. 

        17.13    Standstill.    

        (a)   Except as set forth in this Section and excluding shares that it holds or may acquire pursuant to the Equity Agreements,
BMS hereby agrees that for [*], neither BMS nor any of its Affiliates will, and will not assist or encourage others to, directly
or indirectly, without the consent of Corgentech: (i) acquire, or agree to acquire, directly or indirectly, alone or in concert with others, by purchase, gift or otherwise, any direct or
indirect beneficial ownership (within the meaning of Rule 13d-3 under the Securities Exchange Act of 1934, as amended (the "Exchange
Act") or interest in any securities or direct or indirect rights, warrants or options to acquire, or securities convertible into or exchangeable for, any securities of
Corgentech (in addition to those owned or acquired by BMS pursuant to the Equity Agreements); (ii) effect or seek, initiate, offer or propose or participate in or assist any other person to
effect or seek, initiate, offer or propose any (A) tender or exchange offer, merger, consolidation or other business combination involving Corgentech; or (B) any recapitalization,
restructuring, liquidation, dissolution, sale of assets or other extraordinary transaction with respect to Corgentech; (iii) make, or in any way participate in, directly or indirectly, alone or
in concert with others, any "solicitation" of "proxies" to vote (as such terms are used in the proxy rules of the United States Securities and Exchange Commission promulgated pursuant to
Section 14 of the Exchange Act), provided that the prohibition in this subsection (iii) shall not apply to solicitations exempted from the proxy solicitation rules by
Rule 14a-2 under the Exchange Act; (iv) form, join or in any way participate in a "group" (as defined under the Exchange Act) with respect to any voting securities of
Corgentech; (v) otherwise act in concert with others, to seek to control the Board of Directors of Corgentech, provided that nothing in this subsection (vi) shall prevent BMS or any
Affiliate of BMS, either acting alone or in concert with each other, from taking any action that it believes is required of it under applicable law; or (vii) enter into any agreements,
discussions or arrangements with any Third Party with respect to any of the foregoing. Nothing in this Section 17.13 shall prohibit BMS from purchasing any securities of Corgentech pursuant to
the terms of the Equity Agreements, including any right 

79

 

of
first refusal or preemptive rights as set forth therein, and BMS shall not be treated as having breached any covenant of this Agreement as a result of such purchase. 

        (b)   Nothing in this Section 17.13 shall prohibit BMS' or its Affiliates' employees from purchasing securities of
Corgentech pursuant to (i) a pension plan established for the benefit of BMS' or its Affiliates' employees, (ii) any employee benefit plan of the BMS or its Affiliates or
(iii) any stock portfolios not controlled by BMS or any of its Affiliates that invest in Corgentech among other companies. Further, nothing herein shall prevent BMS or its Affiliates from
acquiring securities of another biotechnology or pharmaceutical company or other Person that beneficially owns any of Corgentech's securities. 

        (c)   This Section 17.13 shall terminate and BMS and its Affiliates shall have the right to acquire any securities of
Corgentech without regard to the limitations set forth in this Section 17.13 in the event that an Acquisition Transaction (as defined below) with respect to Corgentech shall have been publicly
proposed by a party unaffiliated with BMS and accepted or approved by Corgentech, or if rejected or not approved by Corgentech, pursued on a unilateral basis pursuant to a tender or exchange offer
and/or a proxy solicitation, or if Corgentech shall have entered into an agreement in principle or definitive agreement providing for an Acquisition Transaction. "Acquisition
Transaction" means (i) any direct or indirect acquisition or purchase of assets representing [*]
or more of the market capitalization of Corgentech or any of its subsidiaries or of  [*] or more of the voting securities of or equity interest in Corgentech or any of its subsidiaries by any Person or
group, or
(ii) any tender offer or exchange offer that if consummated would result in any person or group beneficially owning [*]
or more of any class of equity securities of Corgentech, or (iii) any merger, consolidation, business combination, sale of assets, recapitalization or similar transaction involving Corgentech
representing [*] or more of the market capitalization of Corgentech. 

        17.14    No Consequential or Punitive Damages.    NEITHER PARTY HERETO WILL BE LIABLE FOR INDIRECT, INCIDENTAL,
CONSEQUENTIAL, SPECIAL, EXEMPLARY, PUNITIVE OR MULTIPLE DAMAGES ARISING OUT OF THIS AGREEMENT OR THE EXERCISE OF ITS RIGHTS HEREUNDER, OR FOR LOST PROFITS ARISING FROM OR RELATING TO ANY BREACH OF
THIS AGREEMENT, REGARDLESS OF ANY NOTICE OF SUCH DAMAGES, EXCEPT WHERE ATTRIBUTABLE TO A WILLFUL BREACH OF THIS AGREEMENT. NOTHING IN THIS SECTION 17.14 IS INTENDED TO LIMIT OR RESTRICT THE
INDEMNIFICATION RIGHTS OR OBLIGATIONS OF EITHER PARTY WITH RESPECT TO THIRD PARTY CLAIMS UNDER ARTICLE 15, OR DAMAGES AVAILABLE FOR BREACHES OF CONFIDENTIALITY OBLIGATIONS IN ARTICLE 12. 

        17.15    Governing Law.    THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE
WITH THE INTERNAL LAWS OF THE STATE OF NEW YORK APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED ENTIRELY WITHIN SUCH STATE, WITHOUT REGARD TO THE CONFLICTS OF LAW PRINCIPLES OF SUCH STATE, OTHER
THAN SECTION 5-1401 OF THE NEW YORK GENERAL OBLIGATIONS LAW.

        17.16    No Waiver.    Any delay in enforcing a Party's rights under this Agreement or any waiver as to a particular
default or other matter shall not constitute a waiver of such Party's rights to the future enforcement of its rights under this Agreement, except with respect to an express written and signed waiver
relating to a particular matter for a particular period of time. 

80

 

        IN WITNESS WHEREOF, the Parties have executed this Agreement in duplicate originals by their proper officers. 

	BRISTOL-MYERS SQUIBB COMPANY	 	CORGENTECH INC.
	
By:	
 	

/s/  TAMAR HOWSON      
	
 	

By:	
 	

/s/  JOHN P. MCLAUGHLIN      

	Title:	 	SVP CBD
	 	Title:	 	CEO

	Date:	 	October 10, 2003
	 	Date:	 	October 10, 2003

[*] = 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.

81

EXHIBIT A  

 EXAMPLES OF CALCULATION OF [*] PAYMENTS  

[*]  

Example 1:  

Projected schedule of [*].  

[*]  

Example 2:  

Projected schedule of [*].  

[*]

[*] = 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.

EXHIBIT B  

 PRESS RELEASE  

	CONTACTS:	 	 	 	 
	

BRISTOL-MYERS SQUIBB:	
 	

 	
 	

CORGENTECH:
	JULIE KEENAN	 	 	 	RICHARD POWERS
	609-252-3732	 	 	 	650-624-9600
	julie.keenan@bms.com	 	 	 	powers@corgentech.com

BRISTOL-MYERS SQUIBB AND CORGENTECH ENTER GLOBAL AGREEMENT

TO DEVELOP AND COMMERCIALIZE NOVEL CARDIOVASCULAR THERAPY  

        (SOUTH SAN FRANCISCO, Calif. and NEW YORK, New York, October 13, 2003)—Bristol-Myers Squibb Company (NYSE: BMY) and Corgentech Inc., a
privately held biotechnology company, today announced they have entered into an agreement to jointly develop and commercialize Corgentech's E2F Decoy (edifoligide sodium), a
first-of-its-kind E2F Decoy treatment currently in Phase III development for the prevention of vein graft failure following coronary artery bypass graft
(CABG) and peripheral artery (i.e. leg) bypass graft surgery. 

        "Corgentech
has chosen Bristol-Myers Squibb as our partner in developing E2F Decoy based on the company's broad expertise in the cardiovascular field," said John P. McLaughlin, president
and chief executive officer, Corgentech. "We look forward to working with Bristol-Myers Squibb to develop and commercialize this product in order to potentially improve the lives of more than one
million patients worldwide who undergo vascular bypass surgery each year." 

        Under
terms of the deal, Bristol-Myers Squibb will make an initial payment to Corgentech of $45 million comprising cash and an equity investment in Corgentech, with the potential
for an additional $205 million in clinical and regulatory milestone payments. Bristol-Myers Squibb and Corgentech will share development costs in the U.S and Europe going forward based on a
pre-agreed percentage allocation. In the United States, the parties will co-promote E2F Decoy and share profits. Bristol-Myers Squibb has exclusive rights in all other
countries and will pay Corgentech a royalty on its sales. Bristol-Myers Squibb may make additional milestone payments based on the achievement of certain sales levels. 

        "Bristol-Myers
Squibb has a broad portfolio of marketed products and pipeline compounds that, together, provide significant advances to health care providers who concentrate on
treatments for patients with cardiovascular risk," said Peter R. Dolan, chairman and chief executive officer, Bristol-Myers Squibb. "In addition to advancing our current portfolio of
cardiovascular compounds, we look forward to partnering with Corgentech to develop E2F Decoy. It is our hope that this compound may provide a new treatment option to reduce the risk of experiencing
vein graft failure following artery bypass surgery." 

        E2F
Decoy is an oligonucleotide that works by helping the walls of a grafted vein to strengthen over time, which helps the vein to maintain healthy blood flow. During surgery, E2F Decoy
is applied to vein grafts ex vivo (outside the body). 

        E2F
Decoy is currently being evaluated in two Phase III clinical trials. The peripheral artery bypass study, known as PREVENT 3, is testing E2F Decoy in 1,400 patients who have
undergone peripheral artery bypass surgery at approximately 80 medical centers throughout the U.S. A second study, PREVENT 4, is evaluating the therapy in 2,400 patients who have undergone CABG
surgery at more than 100 U.S. medical centers. Enrollment for both studies has been completed. The FDA has granted E2F Decoy Fast Track status for both coronary and peripheral indications due to the
important unmet medical needs the product may address. 

About
Corgentech 

        Corgentech Inc.
is a privately-held biotechnology company that is the leader in the discovery, development and commercialization of a new class of therapeutics called
transcription factor decoys or TF Decoys. The company's proprietary technology platform is capable of delivering multiple new product candidates to treat diseases that affect large patient populations
in a relatively short period of time. Currently, the company is focused in three therapeutic areas: cardiovascular disease,
inflammatory disease and cancer. Corgentech is based in South San Francisco, Calif. For more information on the company and its technology, visit  www.corgentech.com. 

About
Bristol-Myers Squibb 

        Bristol-Myers
Squibb is a global pharmaceutical and related health care products company whose mission is to extend and enhance human life. 

        Visit
Bristol-Myers Squibb on the World Wide Web at www.bms.com 

# # #  

This press release contains "forward-looking statements" as that term is defined in the Private Securities Litigation Reform Act of 1995. These statements are based on
management's current expectations and involve significant risks and uncertainties that may cause results to differ materially from those set forth in the statements. Among other risks, there can be no
guarantee that the product described in this release will receive regulatory approval, or that it will prove to be commercially successful. This and other risk factors are discussed in the company's
2002 Annual Report on Form 10-K and in the company's periodic reports on Form 10-Q. We undertake no obligation to publicly update any forward-looking statement,
whether as a result of new information, future events, or otherwise.

        [*] = 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.

EXHIBIT C  

 SALES REPRESENTATIVE QUALIFICATIONS  

Minimum requirements:  [*]. 

[*] = 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.

QuickLinks

Exhibit 10.10

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00059-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00059-of-00352.parquet"}]]