Document:

Exhibit 10.10

 

PORTIONS OF THIS EXHIBIT IDENTIFIED BY [*****] HAVE BEEN EXCLUDED  FROM THIS EXHIBIT BECAUSE THE EXCLUDED  INFORMATION IS BOTH (I) NOT MATERIAL AND (II) WOULD BE COMPETITIVELY HARMFUL IF PUBLICLY DISCLOSED.

 

Translation for information purposes only

 

CO-OWNERSHIP AGREEMENT
 L08142

 

BETWEEN THE UNDERSIGNED

 

1°)                   BIOPHYTIS INSTITUTE, simplified joint-stock company with a capital of €63,000, SIRET no. 492002225000018, whose registered office is located at 14 avenue de l’Opéra 75001 Paris, represented by its Chairman, Mr Stanislas VEILLET, hereinafter referred to as the “COMPANY”,

 

ON THE ONE HAND,

 

And

 

2°)                   UNIVERSITE PIERRE ET MARIE CURIE (Paris 6),  scientific, cultural and professional public institution, SIRET No.: 19751722000012 — APE code: 803Z, located 4 place Jussieu - 75252 PARIS Cedex 05, represented by its Chairman, Mr Jean-Charles POMEROL, hereinafter referred to as “UPMC”,

 

And

 

3°)                   The CENTRE NATIONAL DE LA RECHERCHE SCIENTIFIQUE, scientific and technological public institution, whose registered office is at 3, rue Michel-Ange, 75794 PARIS Cedex 16, whose European VAT number is FR40180089013 , SIRET number 180089013 03720, APE code 7219Z, represented by its Managing Director, Mr Arnold MIGUS, hereinafter referred to as “CNRS”.

 

The CNRS and TUPMC acting in their own name and on behalf of the Laboratory entitled “Protein: structural and functional biochemistry” FRE 2852, hereinafter called the “LABORATORY”.

 

FURTHERMORE

 

The UPMC and the CNRS are hereinafter referred to jointly as the “ESTABLISHMENTS”.

 

The UPMC, the CNRS and the COMPANY are hereinafter jointly referred to as “PARTIES” and individually as “PARTY”.

 

	
CONFIDENTIAL
    	
 
    

 

1

 

IT IS RECALLED THAT:

 

In the context of research within the LABORATORY, René LAFONT, UPMC agent and Mr Stanislas VEILLET of the COMPANY have developed an invention relating to use of phytoecdysteroids in the preparation of a composition for action on metabolic syndrome.

 

This invention being protected by industrial property, a French patent application under NO. 0759478 was filed as a precaution on 30 November 2007 jointly in the names of both the COMPANY and the UPMC.

 

Under this agreement, the UPMC and the COMPANY wish to formalise the co-ownership between the PARTIES on the patent application mentioned above as well as its extensions and determining the rights and obligations of each PARTY, particularly in regards to the use of the invention referred to above.

 

The COMPANY made it known in a letter dated 26 June 2008 sent for the attention of the UPMC, on behalf of the ESTABLISHMENTS, that it wants to qualify for exclusive operation of the PATENTS as defined below, in the area of nutrition and herbal medication. The PARTIES have agreed to define the terms of this exclusive exploitation by separate agreements (hereinafter “LICENSE AGREEMENT”) signed concomitantly with this contract.

 

THEREFORE, THE PARTIES HAVE AGREED AS FOLLOWS:

 

Preliminary Article - DEFINITIONS

 

CONFIDENTIAL INFORMATION,  means any confidential information or any protected information not yet published, belonging to PARTIES or one of the PARTIES, relating to the invention protected by PATENTS, or relating to KNOW-HOW, whether its form is written, graphic, verbal, or in any other form.

 

COSTS OF INDUSTRIAL PROPERTY,  means the costs incurred for- the preparation process, of filing, obtaining, extension, issue and maintenance of the PATENTS, to defend the PATENTS before any Patent Office and in particular for appeal proceedings, interference, opposition, reviews or reissues. The COSTS OF INDUSTRIAL PROPERTY do not include any costs incurred due to infringement procedures.

 

DOMAIN, means the area of food and phytotherapeutics medicine

 

EFFECTIVE DATE, refers to the date of filing the French application patent under no. 0759478, i.e., 30 November 2007.

 

INVENTORS, refers to René LAFONT and Stanislas VEILLET.

 

KNOW-HOW, means all scientific and technical information, whether they are written, graphs or verbal, regardless of the medium used, developed by the INVENTORS until the EFFECTIVE DATE and necessary for the sole implementation of the PATENTS. A

 

2

 

description of the KNOW-HOW is attached in Appendix 1 which forms an integral part of this agreement.

 

PATENTS  means:

 

·       The application for a French patent lodged on behalf of the COMPANY and the UPMC, on 30 November 2007 under the number NO. 0759478, entitled “Use of phytoecdysteroids in the preparation of a composition for action on metabolic syndrome”, and quoting as inventors René LAFONT and Stanislas VEILLET,

·        any patent application made abroad or in France on the basis of this request, any continuation, partial continuation, addition, division, patents that are created as a result or any equivalent titles, as well as any patent re-filed, reissued, or reviewed, as well as any Additional Protection Certificates.

 

SHARE,  refers to the sharing of ownership of the PATENTS of each PARTY, as defined in article 1.1 below.

 

Words in singular can be understood in plural and vice versa.

 

Article 1 - PURPOSE AND SCOPE OF THE AGREEMENT

 

1.1                The UPMC and the COMPANY confer free of charge to the CNRS, which accepts, twenty-five per cent (25%) of ownership rights to the PATENTS and on the attached priority right.

 

Consequently, the PARTIES agree that they co-own the PATENTS and the attached priority rights as follows:

 

·                  fifty percent (50%) for the COMPANY,

·                  twenty-five per cent (25%) for the CNRS,

·                  twenty-five per cent (25%) for the UPMC,

 

and they jointly hold the KNOW-HOW.

 

1.2                Therefore, the PARTIES wish to officialise the applicable rules to the co-ownership of PATENTS and on the KNOW-HOW held in common as well as the rights and obligations resulting therefrom.

 

3

 

Article 2-TERM

 

As from when it was last signed by the PARTIES, this contract will take effect retroactively from the EFFECTIVE DATE, and will remain in force, unless terminated earlier, until expiry or discontinuation of the PATENTS.

 

Article 3 - FILING, EXTENSION, DELIVERY AND CONTINUANCE ENFORCEMENT OF THE PATENTS

 

3.1                  The PARTIES mutually agree that the COMPANY will be responsible for managing the PATENTS which it co-owns with the ESTABLISHMENTS, both in France and abroad and that it will bear the COSTS OF INDUSTRIAL PROPERTY.

 

In the event of a failure to pay by the COMPANY of sums due in respect of the COSTS OF INDUSTRIAL PROPERTY, the ESTABLISHMENTS may decide to advance the COSTS OF INDUSTRIAL PROPERTY that are owed by COMPANY. This advance shall constitute a binding debt for the COMPANY in favour of the ESTABLISHMENTS that will then be entitled to make a formal demand for the COMPANY to pay the sums owed and, if necessary, use any procedures they deem useful for the recovery of the receivables.

 

3.2                  The COMPANY undertakes to consult in writing with the UPMC on behalf of the ESTABLISHMENTS, before commencing any legal action in relation to the procedures or to the choice of countries for any of the PATENTS. The UPMC, on behalf of the ESTABLISHMENTS, must be given a copy of any document relating to such procedures sufficiently in advance to allow it, where applicable, to submit its comments before maturity. It is more notably understood between the PARTIES that the text of any PATENT shall be communicated by the COMPANY to the UPMC for approval before its filing with a Patent Office.

 

Failure to reply within the thirty (30) days following receipt of the above-mentioned documents by the UPMC will be presumed as acceptance by the ESTABLISHMENT of the COMPANY’S proposition.

 

The PARTIES agree, subject to the reservations and conditions provided herein, to ensure that the members of their personnel cited as INVENTORS provide the necessary signatures and take steps for which they are responsible as necessary for the lodging as an inventor and, by extension, to the issuing and maintenance of the PATENTS and, more generally, to any procedure of Industrial Property relating to the PATENTS. Furthermore, subject to the reservations and conditions provided herein, the PARTIES agree to provide any signature and all necessary documents to the procedures for the PATENTS referred to above and, more generally, for any procedure of Industrial Property relating to the PATENTS.

 

4

 

3.3                  If one of the PARTIES does not wish to maintain a deed in force, or to pursue a procedure to extend abroad (including international PCT application), of transition in phases that are national/regional, in review, in obtention, or to be delivered or defended by a PATENT’ in one or more countries, they will notify in writing the other PARTIES at least three (3) months before the expiry date of the Industrial Property so that they can, if they wish, continue in their own name, at their own discretion and at their own expense the procedures referred to above in those countries, either in France or abroad. In the event that said PARTIES would like to continue at their own discretion this or these procedure(s), they will acquire, within their rights and free of charge, the full and sole ownership of said PATENT. In this case, this PARTY will no longer benefit from any right of industrial or commercial exploitation on the PATENT and on the KNOW-HOW in the country concerned and will lose all its rights to royalties and other sums from the exploitation of the PATENTS and/or the KNOW-HOW in the countries concerned.

 

The waiving PARTY undertakes to provide without delay or charge all of the signatures and documents required for the assignment under its SHARE of ownership over the PATENTS and to ensure that its INVENTOR gives all signatures and fulfils any formalities necessary for the intellectual property procedures pursued by the other PARTIES.

 

Furthermore if one of the PARTIES decides to abandon its rights to the PATENTS in one or more countries given, the COSTS OF INDUSTRIAL PROPERTY paid for those countries by the waiving PARTY prior to its decision to abandon may not under any circumstances be reimbursed. The decision to abandon does not absolve the waiving PARTY from settling their share of the COSTS OF INDUSTRIAL PROPERTY incurred for these countries given until notification of the abandonment. In any country where other PARTIES choose to continue alone the procedures for application, Extensions, certification and maintenance of the PATENTS, the corresponding COSTS OF INDUSTRIAL PROPERTY will be the sole responsibility of said PARTIES.

 

3.4                  The COMPANY and the ESTABLISHMENTS will personally see to compensation and possible indemnities for their respective INVENTOR.

 

Article 4 - EXPLOITATION AND USE OF THE PATENTS

 

4.1                  Use for purposes of research:

 

The ESTABLISHMENTS are free to use the invention which is the subject of the PATENTS and the KNOW-HOW for research/ exclusively, alone or in conjunction with third parties/subject to the requirement to maintain the confidentiality of CONFIDENTIAL INFORMATION, The ESTABLISHMENTS will maintain this rights of free usage of the PATENTS and the KNOW-HOW, for research purposes, even in cases of disposal or abandonment of their SHARE of ownership over all or part of the PATENTS.

 

5

 

4.2                 Operation in the DOMAIN.

 

The COMPANY advised by letter dated 26 June 2008 sent to the attention of the UPMC, on behalf of the ESTABLISHMENTS, wants to benefit from the exclusive rights of operation of the PATENTS and the KNOW-HOW in the DOMAIN, that the ESTABLISHMENTS accept provided that the PARTIES agree on the conditions of granting such exclusivity in the context of the LICENSE AGREEMENT.

 

If no longer able to benefit from exclusive operation granted to the COMPANY in accordance with the first paragraph of this article and in the LICENSE AGREEMENT, it is hereinafter agreed that the PARTIES will then immediately cooperate in order to define in good faith the operating procedures for the PATENTS and the KNOW-HOW in the DOMAIN, in the best interest of the PARTIES.

 

The COMPANY recognises that the ESTABLISHMENTS may propose to them a third party interested by the use of all or part of the PATENTS and/or the KNOW-HOW in the DOMAIN. The COMPANY will have one (1) month from the notification sent by the ESTABLISHMENTS to refuse to provide the operating license to another third party if the COMPANY can demonstrate in writing that such exploitation is likely to violate its industrial and commercial strategy. After this deadline and without written response from the COMPANY, the agreement of the COMPANY for such exploitation by the third party will be considered as granted. In the event that the COMPANY should be opposed to an operation proposed by the ESTABLISHMENTS, the PARTIES will negotiate a fair compensation for the ESTABLISHMENTS.

 

The COMPANY also acknowledges, that if no due diligence is made to seriously exploit the PATENTS and the KNOW-HOW upon which it has a right to use, it may not oppose the granting of an operating license of the PATENTS and the KNOW-HOW to a third party proposed by the ESTABLISHMENTS.

 

Furthermore, it is already understood between the PARTIES that any operation directly or indirectly of all or part of the PATENTS and/or the KNOW-HOW shall give rise to remuneration for the PARTIES and a specific contract defining the operating conditions will be drawn up before being used.

 

4.3                 Operating outside the DOMAIN :

 

Outside of the DOMAIN, the PARTIES will cooperate at the written request of one of them to be defined by separate agreement, in good faith and in the best interest of the PARTIES the conditions of industrial and commercial operations of the PATENTS and the KNOW-HOW.

 

The COMPANY may not oppose an operation proposed by the ESTABLISHMENTS without good reason that should be brought to their attention, without delay and by registered letter with acknowledgement of receipt. In this case, the PARTIES will negotiate a fair compensation for the ESTABLISHMENTS.

 

6

 

4.4                  Securities

 

4.4.1        Nothing in this agreement shall be interpreted as constituting any expressed or implied guarantee by one of the PARTIES, other than the physical existence of the PATENTS and the KNOW-HOW.

 

Consequently, potential fluctuations, risks and perils for the fulfilment of the present contract and the licenses and any legal defects contained by one or more of the PATENTS are the sole responsibility of the operating PARTY, its subsidiaries and its licensees. The operating PARTY will notably make it their responsibility to identify and examine, if it deems this necessary, the rights of third parties whose PATENTS and/or KNOW-HOW may depend and assess the scope of those rights of third parties.

 

4.4.2        The operating PARTY may not make a warranty call on the other PARTIES in the case of loss or damage of any nature that may be caused by the use of PATENTS, the KNOW-HOW and/or products implementing the PATENTS and/or KNOW-HOW, the operating PARTY is liable towards its clients and/or any third party, the implementation of the PATENTS, the KNOW-HOW and the quality and performance of the products it is operating.

 

The operating PARTY guarantees the other PARTIES and their employees, against any appeal that might be brought against them as a result of damages to persons or property, suffered in connection with the use of the PATENTS and/or the KNOW-HOW and marketing products used by the operating PARTY. The operating PARTY /waives the right to take any action against other PARTIES in the case where these claims, requests, proceedings, shares are made against the operating PARTY and are licensed by a third party.

 

The operating PARTY agrees to ensure this commitment by its subsidiaries and licensees.

 

4.4.3        The operating PARTY will ensure that it, it’s subsidiaries and licensees have the necessary insurance to sufficiently cover their accountability in respect of this agreement.

 

4.4.4        In the event of rejection, cancellation of one or more PATENTS, the dependency of such PATENTS, and/or KNOW-HOW on a previously dominating patent, in the event the products as a result of the use of PATENTS and/or the KNOW-HOW were declared by a final court decision as counterfeit, other PARTIES will not be held accountable for either the restitution of the monies already gained from the operating PARTY, or for the reduction in monies until the date of final court decision, or to pay any compensation due by the operating PARTY, its subsidiaries and/or its licensees as compensation for the damage caused by the rejection, the aforementioned cancellation, dependency or counterfeiting.

 

7

 

4.4.5        The provisions of this article 4.4 shall remain in force notwithstanding the maturation or termination of the contract.

 

Article 5 -TRANSFER OF SHARE OF PATENTS

 

5.1                  Each PARTY may transfer at any time its SHARE for all or part of the PATENTS and its rights in regards to the KNOW-HOW. The transferring PARTY must first notify the other PARTIES of its intention to sell such rights, and send the name, the potential transferee’s address and the financial sales conditions. This information is made on a confidential basis, Article 6 detailed below being applicable. Other PARTIES have a pre-emptive right over a period of [****] from receipt of such notice. They will notify, within this period, their decision to the transferring PARTY by registered letter with acknowledgement of receipt.

 

Other PARTIES may also, refuse the transferee if they can reasonably demonstrate in writing, within [****] from the date of notification, that assignment with such transferee creates a serious quarrel with their articles of association, activities and/or assignments.

 

Without exercise of the pre-emption right or right to refuse by the other co-owning PARTIES expiry of this period of [****] the transferring PARTY will benefit from an authorization to transfer to a potential third party, under the conditions stipulated in the first notification sent by the transferring PARTY to the other PARTIES.

 

However, the COMPANY acknowledges that it will  not benefit from any pre-emption right over the ownership of the SHARE of UPMC or of CNRS if the potential transferee is the CNRS, the UPMC or René Lafont.

 

The terms for the transfer of PATENTS and KNOW-HOW to a third party must not under any circumstances be more favourable than those offered to other PARTIES.

 

5.2                  In the event of an assignment of a SHARE of all or part of the PATENTS or rights to the KNOW-HOW to a third party, the deed of transfer shall stipulate that the transferee undertakes to assume all the obligations incumbent upon the transferor under this agreement,

 

5.3                  The transferring PARTY undertakes to provide the other PARTIES all signatures and all the necessary documents for the Intellectual Property proceedings relating to the PATENTS.

 

In addition to this, the transferring PARTY undertakes to ensure that its personnel members cited as inventors provide the necessary signatures and take steps necessary for the filing and the maintenance of the PATENTS and, more generally, to any Intellectual Property proceedings relating to said PATENTS.

 

This article 5.3 shall remain in force notwithstanding the expiry or termination of the this agreement

 

8

 

Article 6 - CONFIDENTIALITY

 

6.1                  Each PARTY agrees to respect and to keep confidential all CONFIDENTIAL INFORMATION received from other PARTIES.

 

6.2                  The PARTIES undertake to have their staff and any person attached to their service in any capacity whatsoever observe the same commitment, and to make sure that they respect this confidentiality commitment as regards the CONFIDENTIAL INFORMATION.

 

6.3                  Each PARTY undertakes not to submit an application to claim any other kind of intellectual property including CONFIDENTIAL INFORMATION received from other PARTIES, unless specifically agreed in writing with the PARTIES concerned.

 

6.4                  The confidentiality commitments between the PARTIES through this agreement do not apply to the use or the disclosure of CONFIDENTIAL INFORMATION for which the receiving PARTY can demonstrate:

 

a)            that they have been disclosed after prior obtention of written authorisation from the owning PARTY, or that disclosure was conducted by the owning PARTY,

 

b)            that it was in the public domain at the time of its disclosure or was published or made available to the public, in any manner whatsoever, without action or fault on the part of the recipient PARTY,

 

c)             that have been received by the receiving PARTY from a third party without any breach of this agreement,

 

d)            that at the date of its communication by the owner PARTY that provided it, the recipient PARTY was already in possession of this information,

 

e)             that its disclosure was imposed by the application of a mandatory legal or regulatory provision or by the application of a final court decision or an arbitral award.

 

The aforementioned exceptions are not cumulative.

 

6.5                  Notwithstanding the stipulations of the above Article 6.1, the PARTIES agree that any disclosure to third parties of any CONFIDENTIAL INFORMATION that is key to the development of the PATENTS or the KNOW-HOW cannot be refused. However, such disclosure must be preceded by the signing of a confidentiality agreement whose terms and conditions will at least be similar to those in this article.

 

6.6                  This article shall remain in force notwithstanding the expiry or termination of this agreement.

 

9

 

Article 7 - INFRINGEMENT — VALIDITY OF PATENTS

 

7.1                  In the event of a declaration of invalidity, or infringement of the PATENTS by a third party, the PARTIES will mutually provide all the elements in their possession needed to assess the nature and extent of these and shall consult to determine a mutual agreement of the strategy to be maintained.

 

In a case where consensus could not be achieved, each PARTY may exercise alone and at its own expense the actions that it deems appropriate, it being understood that, in this case, compensation resulting from said shares allocated by the deliberating court are fully and irrevocably the property of the acting PARTY.

 

The PARTIES agree to provide all documents, powers or information that is necessary for the acting PARTIES aforementioned prosecution for the above actions.

 

7.2                  Pursuant to the provisions of Article 4.4 above, each PARTY acknowledges that it is their sole responsibility to identify and examine, if it deems this necessary, the rights of third parties when exploitation by said PARTY of the PATENTS and/or the KNOW-HOW could be dependent on said third party rights.

 

Consequently, the PARTIES agree that in the event of indictments being made by a third party, the acting PARTIES currently in question will take sole ownership of the costs of their own defence. The PARTIES in question will be personally liable  for the potential sanctions pronounced against it by the courts, notwithstanding any solidarity that could be expressed towards them.

 

In particular, the COMPANY acknowledges that, for any operation where they will directly or indirectly apply the PATENTS and/or the KNOW-HOW, where legal proceedings for infringement are exercised against the COMPANY, the COMPANY will exonerate the ESTABLISHMENTS. In accordance with Article 4.4, the COMPANY undertakes not to call the ESTABLISHMENTS and/or its INVENTORS into guarantee for any reason whatsoever.

 

Where legal proceedings for infringement are exercised against the COMPANY or against its licensees and/or subsidiaries, it will immediately notify the ESTABLISHMENTS. No compensation, no reimbursement of monies paid, or reductions of the outstanding receivables at the time of the court’s decision may be claimed off the ESTABLISHMENTS

 

The COMPANY undertakes to have its subsidiaries and licensees undertake the same commitments.

 

7.3                  Each PARTY renounces the right to pursue the other PARTIES in regard to the consequences on the validity of PATENTS due to a share as a claimant or defendant conducted by the latter.

 

10

 

7.4                  Articles 7.2, and 7.3 of this agreement shall remain in full force and effect notwithstanding expiry or termination of this agreement.

 

Article 8 — TERMINATION

 

The contract will automatically be terminated in the event that one of the PARTIES becomes sole owner of all the PATENTS.

 

The provisions provided for in articles 3.4, 4.1, 4.4, 5.3, 6, 7.2, 7.3, 10, 11, 12, 13, 14, 15 and 17 shall remain in force notwithstanding the expiry or termination of this agreement.

 

In the event of termination, the PARTIES which are no longer owners undertake, in accordance with Article 3.3, not to operate and to not allow direct or indirect exploitation of the PATENTS and/or the KNOW-HOW until they expire.

 

Article 9- TRANSFER OF THE AGREEMENT

 

This agreement is personal, non-transferable, subject to the provisions of article 5 above.

 

Article 10 - NAMES OF THE PARTIES

 

10.1           The COMPANY undertakes not to use either in writing or verbally the name, the trade name, the brand or other designation or distinctive sign belonging to the UPMC or to the CNRS, or any of their agents, including in a shortened or imitated format, within the scope of operating and/or any promotional activity and this, regardless of the mediums used (advertising, posters, video..), without having obtained prior, written approval from the relevant PARTY.

 

Pursuant to the above, any operation of the PATENTS and/or the KNOW- HOW by the COMPANY will be conducted under its own brand or under the trademarks for which it will need to be regularly licensed.

 

However, solely for information purposes information on the origin of the PATENTS and KNOW-HOW, the reference “Technologie Biophytis”! UPMC/CNRS” may appear on any advertising, technical or explanatory notice relating to products operated by the COMPANY and its licensees. The COMPANY will ensure that this statement, by its form and the context in which it is placed, cannot be interpreted as a warranty given by the ESTABLISHMENTS for the products operated.

 

11

 

The COMPANY may, whenever required by the law of a country, affix or have affixed on the products the reference “Technologie Biophytis/UPMC/CNRS” branding, or any other equivalent notice approved in advance and in writing by the ESTABLISHMENTS.

 

10.2           Any declaration or public communication relating to the execution of this agreement and the statement, in this context exclusively, in the name of the PARTIES or one of their agents or employees may be made freely. On the other hand, any declaration or public communication relating to its contents will be made only upon the written agreement of all the PARTIES.

 

10.3           The provisions specified in sub-clause 10.1. do not forbid one of the PARTIES from referring to other PARTIES in any documentation established for the needs of any administrative, regulatory or judicial procedure, or for information by the ESTABLISHMENTS of third parties involved in the PATENTS, for example organizations such as the OSEO who assist with technology transfer.

 

10.4           The COMPANY may affix or have affixed on the products it sells the number of PATENTS whenever required by the laws of a country.

 

10.5           The COMPANY will ensure that its subsidiaries and its licensees are bound by the same obligations in regard to the ESTABLISHMENTS as those set forth in article 10. The provisions of article 10 shall remain in force notwithstanding the expiry or termination of this agreement.

 

Article 11 - WAIVER

 

The fact that one of the PARTIES does not invoke a breach by another PARTY of any obligations set forth in this agreement shall be construed in the future as constituting a waiver by the initial PARTY in question.

 

Article 12- APPLICABLE LAW - DISPUTES

 

12.1           This agreement is governed by French laws and regulations.

 

12.2           In cases of difficulty on the existence, interpretation or execution of this agreement, the PARTIES endeavour to resolve their differences amicably.

 

12.3           The occurrence of a dispute will be materialised by sending a registered letter with acknowledgement of receipt, by one of the PARTIES to the other PARTIES, outlining the reasons for the dispute. In the event of a persistent disagreement, the dispute shall be brought by the most diligent PARTY before competent French courts.

 

12

 

12.4           This article will remain in force notwithstanding the expiry or termination of this agreement.

 

Article 13 - ENTIRE AGREEMENT

 

This agreement sets out all the obligations of the PARTIES relating to the co-ownership of the PATENTS and the KNOW-HOW and can only be modified by a written agreement between the PARTIES signed by the representatives of the PARTIES duly authorised for this purpose. None of the general or specific conditions contained in the documents sent or delivered by the PARTIES may be integrated into this agreement.

 

Article 14 INVALIDITY OF A CLAUSE

 

If one or more stipulations of this contract are considered invalid or declared as such under any law, regulation - and in particular, European Union law - or following the final ruling of competent jurisdiction, the other stipulations shall retain their full pertinence and scope, and the PARTIES will proceed without delay with the required modifications in accordance with, to the fullest extent possible, the agreement existing at the time of signature of this contract.

 

Article 15 -TITLES

 

In the event of difficulties of interpretation between any titles at the heading of clauses and any of the clauses, the titles will be declared non-existent.

 

Article 16 - REGISTRATION ON THE NATIONAL PATENTS REGISTER

 

The COMPANY will register, at its expense, this agreement in the National Patents Register, held by the National Institute of Industrial Property, and the national patent registers required by the national offices of Industrial Property concerned by the PATENTS.

 

Article 17 — ENHANCEMENTS

 

Unless is agreed otherwise in writing by the PARTIES, the existence of this agreement shall in no case be construed as conferring, implicitly or expressly, any rights, particularly for ownership and/or use of the improvements made by each of the PARTIES to the PATENTS and/or the KNOW-HOW, each PARTY will retain ownership of its own enhancements..

 

13

 

Article 18-NOTICES

 

18.1           Any notice required under this agreement shall be carried out by registered letter with acknowledgement of receipt, to the PARTY concerned at the following address:

 

For the COMPANY:

Biophytis

14 avenue de l’Opéra

75001 Paris

 

For the ESTABLISHMENTS:

Université Pierre et Marie Curie

DRITT-SAIC

Réf:X07026

4 Place Jussieu

75252 Paris codex 05

 

Any notice shall be deemed to have been given  on the day it was actually received by the addressee, unless the date of receipt is a holiday or a period of closure of the relevant department in which case, it shall be deemed to have been received on the following working day.

 

18.2           Any change of address must be provided in writing to the other PARTIES, by registered letter with acknowledgement of receipt or any other equivalent notification procedure.

 

18.3           Each Party undertakes to sign, ratify and authenticate all documents required for the complete performance of this agreement.

 

14

 

Drawn up in three (4) original copies in French, one (1) for each of the PARTIES and one (1) of which is for registration to the F INPI. .

 

	
Signed at Paris, on 9 JULY 2008
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
/s/ Stanislas Veillet
    	
 
    	
 
    
	
Mr   Stanislas VEILLET
    	
 
    	
 
    
	
Chairman of   the Biophytis institution
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Signed in   Paris, on the 08 JULY. 2008
    	
 
    	
Signed in   Paris, 10 JULY. 2008
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
March J.LEDOUX
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
/s/ Arnold Migus
    	
 
    	
/s/ Jean-Charles Pomerol
    
	
Mr Arnold   MIGUS
    	
 
    	
Mr   Jean-Charles POMEROL
    
	
Chief   Executive Officer of the CNRS
    	
 
    	
Chairman of   the UPMC
    

 

15

 

Annex 1:

 

Description of the KNOW-HOW

 

1)            All data, that is not published, obtained by the INVENTORS, from animal models with metabolic syndromes, on the effect of the 20 hydroxyecdysone regarding the revolution of body fat.

 

2)            Development and clarification of the extraction and enhancement procedures for the extraction of quinoa in phytoecdysteroids.

 

16Exhibit 10.11

 

PORTIONS OF THIS EXHIBIT IDENTIFIED BY [*****] HAVE BEEN EXCLUDED  FROM THIS EXHIBIT BECAUSE THE EXCLUDED  INFORMATION IS BOTH (I) NOT MATERIAL AND (II) WOULD BE COMPETITIVELY HARMFUL IF PUBLICLY DISCLOSED.

 

Translation for information purposes only

 

CO-OWNERSHIP AGREEMENT

 

Ref UPMC: X10100- C15/2012

Ref IB: Sarcob II 24498

 

BETWEEN THE UNDERSIGNED

 

1)             BIOPHYTIS, public limited company with a capital of €1, 237,900.20, registered in the Trade and Companies Register of Paris under the number B 492 002 225, having its head office at 14 avenue de Opera 75001 Paris, represented by its CEO, Mr Stanislas VEILLET, duly authorised for this purpose, hereinafter referred to as the “COMPANY”,

 

And

 

2)             UNIVERSITE PIERRE ET MARIE CURIE (Paris 6), a public scientific, cultural and professional institution, SIRET No.: 19751722000012 — APE code: 8542Z, located at 4 Jussieu - 75252 PARIS cedex 05, represented by its Chairman, Mr Jean CHAMBAZ, hereinafter referred to as “UPMC”,

 

UPMC and COMPANY are hereinafter jointly referred to as the “PARTIES” and individually as the “PARTY” or “Co-owner”.

 

1

 

IT IS RECALLED THAT:

 

Considering the partnership agreement between UPMC and Inserm in force at the time of the said invention;

 

Considering the beneficiary contract no. ANR-10-SATT-04-0I signed between the Agence Nationale de la Recherche, Université Pierre et Marie Curie, Université technologie de Compiègne, Université Panthéon Assas, Institut Européen d’Administration des Affaires and the Centre National de la Recherche Scientifique (National Center for Scientific Research), in the presence of the Caisse des Dépôts et Consignation (Bank for Official Deposits) on 17 January 2012;

 

Considering the Articles of Association of SATT LUTECH signed on 31 January 2012;

Considering the framework agreement between UPMC and SATT LUTECH and any amendment or additional document relating thereto.

 

In the context of the research undertaken in collaboration with the UPMC research team on the Biogenesis of peptidic signals entitled BIOS1PE (ER 3), at the Centre de recherche des Cordeliers (INSERM U872) hereinafter referred to as the “LABORATORIES” and COMPANY, Stanislas VEILLET, Anne-Sophie, FOUCAULT, René LAFONT, Waly DIOH, Karine CLEMENT and Salwa R1ZKALLA have developed an invention relating to phytoecdysones for their use in stabilizing weight after a slimming diet.

 

This invention being susceptible to protection under industrial property, a French priority patent application No. FR 1160280 entitled “phytoecdysones for their use in stabilizing weight after a slimming diet” was filed on 10 November 2011 on behalf of UPMC and Biophytis.

 

In accordance with the agreements in force between UPMC, Inserm and APHP, only UPMC co-owns the PATENTS, it being specified that Inserm and AP-HP will receive a portion of the OPERATING INCOME from the share received by UPMC. Inserm, APHP and UPMC are hereinafter together referred to as the “ESTABLISHMENTS”.

 

By virtue of this Contract, the PARTIES wish to formalise the co-ownership on the above-mentioned patent application and determine the rights and obligations of each PARTY.

 

The COMPANY has informed UPMC of its wish to benefit from the exclusivity of the exploitation of the PATENTS. Thus, the PARTIES have agreed to define the terms of such exclusive exploitation by separate agreement.

 

THEREFORE, THE PARTIES HAVE AGREED AS FOLLOWS:

 

Preliminary Article - DEFINITIONS

 

AGENT, means RE-ESTABLISHMENT of co-owner appointed by the other ESTABLISHMENTS, to (i) represent them for managing PATENTS and their appraisal, according to their agreements, (ii) to collect OPERATING INCOME on their behalf and (iii) to

 

2

 

distribute the OPERATING INCOME between them in compliance with legal provisions and this agreement.

 

APPRAISER. refers to the co-owner chosen and who has accepted to identify and contact potential partners to develop LICENSES for the operation of PATENTS, as well as to take all measures required for such operation for the territory(-ies) that it has listed.

 

CO-CONTRACTING THIRD PARTY means any identified third party interested in the exploitation of the PATENTS under a LICENSE. The COMPANY and its affiliates are excluded from this definition.

 

CONFIDENTIAL INFORMATION, means any confidential information belonging to PARTIES or one of the PARTIES, notably relating to the invention protected by PATENTS or actions, steps, on-going negotiations with a CO-CONTRACTING THIRD PARTY or in order to establish a LICENSE whether it is written, graphic , oral or any other form.

 

CONTRACT FOR USE, means a contract for use signed on 1 January 2016 between COMPANY and SATT LUTECH and UPMC.

 

COSTS OF INDUSTRIAL PROPERTY, means exclusive direct costs incurred for the preparation, filing, extension, issuance and continuance in force and defence operations before a patents office (opposition, interference..) for PATENTS.

 

The COSTS OF INDUSTRIAL PROPERTY do not include any costs incurred towards initiation of counterfeit proceedings by one (the) PARTY(-ies) to defend the PATENTS/declaration of disability and/or actions taken pursuant to the  provisions of Article 8 of this Contract.

 

DATE OF SIGNATURE means the last date of signature of this Agreement by all the PARTIES.

 

EFFECTIVE DATE, refers to the date of filing the priority application of the initial patents of this agreement or on 10 November 2011.

 

ESTABLISHMENT(S), means UPMC, ITNSERM and AP-HP, individually or together.

 

FIRM, refers to the firm of Industrial Property advice, which has received responsibility for establishing all documents for the preparation, filing, extension, issuance, defence before the Patents Offices and the continuance in force of PATENTS, its foreign correspondents, and eventually the service company in  charge of annuity payment for the PATENTS.

 

INVENTORS, means René Lafont (UPMC), Stanislas Veillet (COMPANY), Anne-Sophie, FOUCAULT (COMPANY), Waly DIOH (COMPANY). Karine CLEMENT (PU-PH UPMC and AP-HP) and Salwa RIZKALLA (INSERM) as specified in the invention declaration.

 

LICENSE, means any agreement as notably without this list being exhaustive, term sheet, letter of intent, protocol, license agreement, licensing agreement with right to sub-license, option contract on LICENSE, joint transfer agreement by all PARTIES, having as object all or part of the PATENTS, negotiated by the APPRAISER with a CO-CONTRACTING THIRD PARTY within the  framework of the tasks assigned hereunder, irrespective of whether this contract is in the negotiation stage or signed The licenses granted by COMPANY to third parties within the framework of the CONTRACT FOR USE are not LICENSES under this co-ownership rule.

 

3

 

MANAGER OF PATENTS, refers to the PARTY chosen and which has accepted the mandate to manage all operations related to the preparation, filing, extension, issue, maintenance and defence before a patent office (opposition, interference..) of PATENTS for the(s) territory(-ies) that have been designated by the Co-owners.

 

OPERATING INCOME means the amounts of any nature collected under the LICENSES, including, not exhaustively, optional income, income from license, sublicense income,  instalment payments, the lump sum amounts, fees, any capital gains received by the APPRAISER on transfer of eventual securities acquired by the said APPRAISER for share in the capital of young companies and any similar income.

 

The OPERATING INCOME does not include income from collaborative research contracts  having as object PATENTS that will be paid directly to the PARTY (S) participating in such collaboration.

 

PATENTS collectively means:

 

·                  The French patent application No. 1160280 filed on behalf of COMPANY and UPMC, on 10 November 2011, entitled “phytoecdysones for their use in stabilising weight after a slimming diet”, as well as the right of priority attached to it;

·                  The PCT patent application filed on behalf of COMPANY and UPMC on 12 November 2012 under the number PCT/FR2012/052600,

·                  as well as all patent applications and patents and corresponding certificates for additional protection in foreign countries, all reissues, re-examinations, extensions pertaining thereto, all divisions, continuations in whole or in part related to it, as well as the re-issuance, divisional applications, renewals, claiming in whole or in part priority on the French patent application no. 1160280 given above.

 

SHARE,  refers to the sharing of ownership of the PATENTS of each PARTY, as defined in article 1.1 below.

 

Words in singular can be understood in plural and vice versa.

 

Article I - OBJECT AND SCOPE OF THE CONTRACT

 

1.1     The PARTIES co-own PATENTS as follows:

 

·                         fifty percent (50%) for COMPANY,

 

4

 

·                         fifty percent (50%) for UPMC.

 

1.2                  Thus, the PARTIES wish to formalise the rules applicable to the co-ownership of the PATENTS, the rights and obligations resulting therefrom, and the distribution forms of the OPERATING INCOME.

 

It is specified that each PARTY will personally handle the remuneration of its own INVENTORS and that as regards those inventors linked to UPMC or any other ESTABLISHMENT, these ESTABLISHMENTS will make it their own business.

 

It is specified that in the event of contradiction between this Agreement and the CONTRACT FOR USE signed with COMPANY the provisions of the CONTRACT FOR USE shall prevail over those of this Agreement, as set out in Article 12.

 

Article 2-          TERM

 

This Agreement shall take effect retroactive to the EFFECTIVE DATE, and will remain in force, unless terminated earlier, until expiry or abandoning of the last of the PATENTS.

 

Article 3 -                         FILING, EXTENSION, ISSUANCE AND CONTINUANCE IN FORCE OF PATENTS

 

3.1                  The PARTIES agree by mutual agreement that COMPANY will be the APPRAISER, as specified in Article 4.3.1. In this respect, COMPANY will then be the MANAGER OF PATENTS.

 

3.2                  Should the MANAGER OF PATENTS wish to abandon the role of MANAGER OF PATENTS, it must notify the other PARTY at least sixty (60) days prior to the next deadline for the proceedings of Industrial Property so that one of the other PARTIES can take over this responsibility, if it so wishes. If no other PARTY agrees to resume this role, the PARTIES will appoint a third party as PATENT MANAGER and will work to find an amicable solution as soon as possible. In this case, the COSTS OF INDUSTRIAL PROPERTY will  be borne by the PARTIES in proportion to their respective SHARE, unless otherwise agreed by the PARTIES.

 

3.3                  The MANAGER OF PATENTS undertakes to consult in writing the other PARTY before taking any legal action in relation to the procedures or on the choice of procedures relating to any one of the PATENTS. The other PARTY must be given a copy of any document relating to the said procedures sufficiently in advance to allow them to submit their comments before maturity.

 

Subject to the correct  application of the provisions of the preceding paragraph, the absence of a written response within thirty (30) days or such shorter period if it was imposed due to a maturity of proceedings before an office following receipt of these documents by the other PARTY will be presumed as acceptance of the MANAGER OF PATENTS’ proposal.

 

5

 

In addition, the MANAGER OF PATENTS commits not to undertake exceptional industrial property costs before a Patents office for any one of the PATENTS for procedures of interference or opposition, reviews or reissues, without the prior written consent of(s) (the) other(s) PARTY(-ies), which must communicate its(their) respective position(s) within thirty (30) days of its (their) interrogation. In the absence of a reply within the above-mentioned period, its (their) agreement shall be presumed acquired. Notwithstanding the above, if one of the PARTIES does not wish to incur exceptional industrial property costs, this does not remove the possibility for the other PARTY to be able to act alone in its name and at its own expense.

 

Unless the PARTIES otherwise agree between them, to the EFFECTIVE DATE hereof in the countries where the PARTIES have in common procedures for the PATENTS, the INDUSTRIAL PROPERTY COSTS are set out by the PATENT MANAGER, except in the event of LICENSE providing that these costs be borne by the CO-CONTRACTING THIRD PARTY.

 

During the term of the CONTRACT FOR USE the COSTS OF INDUSTRIAL PROPERTY are supported under the conditions set out in the CONTRACT FOR USE.

 

Non-payment of all or part of the COSTS OF INDUSTRIAL PROPERTY by the MANAGER OF PATENTS will be construed as a waiver by the MANAGER OF PATENTS or the PARTY  that it represents of its SHARE in the(s) PATENT (S) concerned by the said COSTS and consequently, shall be considered as free transfer of the SHARE of the said PATENTS of the MANAGER OF PATENTS in the countries concerned in favour of the other PARTY. Consequently, the MANAGER OF PATENTS shall undertake to grant without delay any power, any document and any signature for the completion of this assignment and it can no longer receive, from the time of receipt of the notification by the other PARTY, any remuneration for the direct and/or indirect use of PATENTS for this(these) given country(-ies)  and will no longer have any industrial or commercial operating right on these PATENTS.

 

3.4      If one of the PARTIES:

 

·                            decides to abandon all or part of the PATENTS, or

·                            does not wish to participate in the extension or continuation of the procedure in a particular country, or

·                             does not wish to bear any additional industrial property costs.

 

it shall notify the other PARTY in writing within thirty days (30) days before the next due date for the Industrial Property proceedings, and will abandon its share in the said PATENT(S). Notwithstanding the foregoing, it is understood between the PARTIES that in the event of abandoning by UPMC, pursuant to the agreements in force between the ESTABLISHMENTS, INSERM and APHP (i.e. to the order of  twelve point five per cent (12.5%) and five percent (5%) respectively of UPMC’s co-ownership share will benefit, by priority over the other PARTY, a pre-emptive right on UPMC’s co-ownership share (according to a distribution agreed upon in the agreement in force between the ESTABLISHMENTS). The transferee will be subrogated in all the transferor’s rights and obligations, except to the right to be APPRAISER/MANAGER OF PATENTS if the transferring PARTY was APPRAISER /MANAGER OF PATENTS on behalf of the PARTIES.

 

6

 

The abandonment of these rights will take effect from the receipt of the notification of abandonment by the receiving PARTY.

 

The PARTY that is giving up its share undertakes to provide the other PARTY with all signatures and documents necessary for the proceedings of any one of the PATENTS that it wishes to give up.

 

In addition, the PARTIES undertakes to ensure that the members of their staff cited as INVENTORS provide the necessary signatures and perform all tasks for which they are responsible as inventor and necessary for the filing, extension, issue, and maintenance of PATENTS.

 

3.5                  If, pursuant to article 3.4, one of the PARTIES decides to abandon its rights to the PATENTS in one or more countries given, the COSTS OF INDUSTRIAL PROPERTY paid for these countries by that PARTY prior to its decision to abandon cannot under any circumstances be reimbursed. Unless the PARTIES have together stated otherwise, the said PARTY will no longer receive, from the time of receipt of the notification by the other PARTY, any OPERATING INCOME on the said PATENTS for these countries given. Subject to compliance with the rules governing the sharing of COSTS OF INDUSTRIAL PROPERTY mentioned below, the decision to abandon does not absolve the PARTY giving up its share from settling its share in the COSTS OF INDUSTRIAL PROPERTY incurred for these countries until its notification of abandonment.

 

In the event of a decision of abandonment by the MANAGER OF PATENTS, it does not exempt the MANAGER OF PATENTS from advancing the COSTS OF INDUSTRIAL PROPERTY, under the conditions set out in Article 3.3, incurred for these countries until its notification of abandonment.

 

Subject to compliance with the stipulations of the paragraph given above, in any country wherein one of the PARTIES decides to pursue only the procedures of filing, extension, issuance and maintenance of the PATENTS, the corresponding COSTS OF INDUSTRIAL PROPERTY will be solely borne by the said PARTY.

 

3.6                  By this agreement.  UPMC informs the COMPANY that all or part of the  rights and obligations mentioned herewith, particularly monitoring the management of procedures by the MANAGER OF PATENTS in the name and on behalf of UPMC can be entrusted, for its SHARE, to the société accélératrice du transfert de technologies - SATT-referred to as SATT LUTECH in accordance with all or part of the agreements signed with SATT as well as those mentioned in the preamble and in particular under the conditions of negotiation and administration mandates.

 

Article 4 -        OPERATION AND USE OF PATENTS

 

UPMC may entrust the negotiation and administration of LICENSES to the société accélératrice du transfert de technologies - SATT-referred to as SATT LUTECH within the framework and under the  conditions provided for in the negotiation and administration mandates to SATT and pursuant to all or part of the agreements signed between SATT and UPMC, as well as those mentioned in the preamble.

 

7

 

Similarly UPMC had given mandate to SATT LUTECH to negotiate the CONTRACT FOR USE.

 

4.1          Use for research purpose:

 

The PARTIES are free to use the invention subject of the PATENTS for research purposes only, excluding any commercial use, only, in collaboration with SATT within the framework of projects of maturation or in collaboration with third parties, subject to the case of collaboration with third parties, to inform the other PARTY previously, to comply with the confidentiality obligations set out in Article 7 below,  and without contravening the rights and operating conditions granted to COMPANY in the CONTRACT FOR USE. The terms and conditions of use of the invention subject of PATENTS for research purposes by Establishments are, during its term, those set out in the CONTRACT FOR USE.

 

4.2.         Operation and direct or indirect use, by COMPANY:

 

COMPANY expressed its desire to be able to benefit from exclusive rights to exploitation of PATENTS in an area that is identified in the CONTRACT FOR USE, which UPMC accepts

 

4.3.         Operation and indirect use by a CO-CONTRACTING THIRD PARTY:

 

4.3.1   Designation of the APPRAISER

 

The PARTIES agree that each PARTY may be designated as an APPRAISER by mutual agreement between the PARTIES and, if applicable, on a case-by-case basis.

 

The PARTIES agree by mutual agreement that COMPANY will be the APPRAISER for the duration of the CONTRACT FOR USE.

 

If the APPRAISER no longer wishes to take on the role of APPRAISER, for whatever reason, it shall promptly notify the other PARTY so that it can take on this responsibility, if it so wishes. In the event where no PARTY wishes to take over this role of the APPRAISER, the PARTIES may appoint a third party for this purpose who will strive to reach an amicable solution.

 

4.3.2      Tasks of the APPRAISER

 

4.3.2.1                           The APPRAISER will be the MANAGER OF PATENTS, unless otherwise agreed by the Parties in a written agreement.

 

4.3.2.2                           Unless the PARTIES together agree otherwise, by written agreement, they give, hereby, mandate to the APPRAISER to negotiate and sign in the best interests of the PARTIES, secret agreements having as object PATENTS and expertise associated with third parties, in particular, industrial as part of an appraisal plan.

 

8

 

4.3.2.3                         In addition, only the APPRAISER may negotiate and draft LICENSES, unless otherwise agreed between the PARTIES, the draft LICENSE is communicated by the APPRAISER to the other PARTY for approval and prior to signing within thirty (30) days before the scheduled signing date. This agreement may be refused only if one or other of the PARTIES may reasonably demonstrate in writing, within thirty (30) communication’s days, that such LICENSE contradicts its articles of association, activities and/or tasks.

 

Each PARTY may send to the APPRAISER, within the aforesaid period of thirty (30) days, any comments, remark or proposed amendment to the draft LICENSE, the APPRAISER undertakes to communicate to the CO-CONTRACTING THIRD PARTY so that the said comments are incorporated into the final LICENSE, however, to the extent that such comments, remarks, or proposals of modification will be sent to the APPRAISER (i) motivated, (ii) within the deadline granted, and (iii) will be based on substantial elements of the draft LICENSE. It is understood that the insertion of the said comments in the final version of the LICENSE in charge of the APPRAISER,  who negotiates in the best interests of the PARTIES, constitutes only an obligation of means.

 

For the purposes of this Article, the PARTIES agree to consider as substantial any element of the LICENSE, particularly relating to the scope of rights granted by the PARTIES to the CO-CONTRACTING THIRD PARTIES, for the enhancements, responsibilities and guarantees mentioned in the draft LICENSE, but excluding any information of pure form without any impact on the merits thereof.

 

The other PARTY’s silence on expiry of the thirty (30) day period mentioned above will be deemed as tacit acceptance of the terms of the draft LICENSE.

 

The PARTIES will sign the said LICENSE except in the event of specific mandate given to the APPRAISER. Each PARTY having signed the LICENSE will receive an original; the PARTIES represented by the APPRAISER for signing the LICENSE, will receive a copy.

 

4.3.2.4                         Subject to prior notification sent to the APPRAISER, each PARTY may propose potential CO-CONTRACTING THIRD PARTIES to the APPRAISER for the exploitation of PATENTS. The APPRAISER can oppose the application of a CO-CONTRACTING THIRD PARTY only if the APPRAISER can reasonably demonstrate in writing, within thirty (30) days with effect from the notification, that the said application is in serious contradiction to its articles of association, activities and/or tasks or that negotiations with another CO-CONTRACTING THIRD PARTY have already been initiated by the APPRAISER.

 

4.3.2.5                         Unless the PARTIES together agreed otherwise, , in writing, all LICENSES shall establish that all CO-CONTRACTING THIRD PARTIES will directly pay to the APPRAISER the OPERATING INCOMES, it is up to the latter to distribute such OPERATING INCOME  after deduction of COSTS OF INDUSTRIAL PROPERTY, if applicable, and in the conditions and within the limits of Article 3.3, between the PARTIES according to their SHARE.

 

9

 

However, for each LICENSE with a CO-CONTRACTING THIRD PARTY, the PARTIES may, by means of an amendment hereto, determine in good faith the breakdown of the OPERATING INCOME, taking into account, in addition to the SHARES of each PARTY, economy of the LICENSE signed by the appraisal efforts, as well as investments made.

 

With regard to sums due to ESTABLISHMENTS, in regards to the LICENSES, the APPRAISER, if it is not the AGENT, shall pay these sums to the AGENT designated by the latter who will distribute these amounts as set out in Article 4.3.3 below.

 

With regard to the  sums due to the ESTABLISHMENTS under the CONTRACT FOR USE the SATT LUTECH will pay them to UPMC. If applicable, UPMC will act as AGENT in this regard and shall repay these funds as set out in Article 4.3.3 below for the OPERATING INCOME.

 

4.3.3                  Distribution of OPERATING INCOME between the ESTABLISHMENTS, in the event of multiple public co-owners.

 

The ESTABLISHMENTS will appoint between them an AGENT. For the purposes of this Agreement, the AGENT is UPMC.

 

The AGENT shall receive the sums due to the ESTABLISHMENTS in respect of OPERATING INCOME, paid by the APPRAISER when it is separate from the AGENT, and will distribute them as follows:

 

·             Profit-sharing of agents of the ESTABLISHMENTS cited as inventors in the PATENTS, in accordance with Article R 611-14-1 of the French Intellectual Property Code or any other provision replacing or modifying it,

·             ten percent (10%) for the AGENT as appraisal charges, breakdown of the balance between the ESTABLISHMENTS in proportion to their SHARE or based on the agreements which bind them to the AGENT.

 

Each ESTABLISHMENT of tutelage  of a  LABORATORY shall be responsible for the remuneration of the LABORATORY concerned unless otherwise agreed between the ESTABLISHMENTS.

 

However, in the event where UPMC has entrusted the negotiation and/or administration of LICENSES to the société accélératrice du transfert de technologies -SATT- referred to as SATT LUTECH, within the framework and under the conditions provided for in the negotiation and administration mandates of SATT and in accordance with all or part of the agreements signed between SATT and UPMC, as well as those mentioned in the preamble, the distribution of OPERATING INCOME is that provided particularly in the said negotiation and administration mandate. In case of contradictions between the stipulations herein and the stipulations of these mandate agreements, the stipulations of these mandate agreements shall prevail.

 

4.3.4                      In the event of negotiation of a LICENSE exclusively with a CO-CONTRACTING THIRD PARTY, the APPRAISER undertakes to put in its best efforts so that the CO-CONTRACTING THIRD PARTY bears all or part of the COSTS OF INDUSTRIAL PROPERTY, it being understood that this obligation of the APPRAISER is only of means.

 

10

 

Article 5 -         ACCOUNTING

 

5.1                    THE APPRAISER, and the AGENT, if it is not APPRAISER Communicate each year, a statement of operating incomes received in accordance with articles 4.2 and 4.3 hereof. In view of this state, each PARTY establishes, if required, an invoice indicating the amounts owed by the APPRAISER or the AGENT as the case may be.

 

5.2                    The sums due must be paid in euros, to the individual and at the banking address indicated on the invoice, by bank transfer, within forty-five (45) days of issue of an invoice.

 

5.3                    The sums due will be increased by the legal fees in force on the maturity date, in particular VAT, if applicable.

 

Article 6 -                               TRANSFER OF SHARE OF PATENTS

 

6.1                     At any time, and in the conditions defined below, each PARTY may transfer its share of co-ownership in the PATENTS, subject to complying with the legal obligations applicable to public bodies.

 

In this case, the PARTY that wishes to sell its share of co-ownership to a third party, will firstly notify its intention by registered letter with acknowledgement of receipt to the other PARTY, specifying in particularly the name of the third party purchaser and the financial conditions of transfer, this information will be treated as CONFIDENTIAL INFORMATION.

 

The other PARTY, has a pre-emptive right for a period of [****] from  receipt of the said notification by registered letter with acknowledgement under financial conditions at least equal to those granted to third parties. During this period, the other PARTY shall inform the transferring party of its decision by registered letter with acknowledgement of receipt.

 

If the other PARTY does not wish to acquire the portion transferred, it shall so inform the transferring  PARTY as soon as possible.

 

In the event that UPMC wishes to sell its SHARE of co-ownership in the PATENTS, Inserm and AP-HP will benefit from a pre-emptive right, by virtue of the agreements in force between the ESTABLISHMENTS, Inserm and AP-HP (i.e. to the order of twelve point five per cent (12.5%) and five percent (5%) respectively) on UPMC’s share in accordance with the procedures described above, by priority over COMPANY. At the  end of the period of first refusal vested with Inserm and AP-HP or from the time of their decision not to pre-empt, , COMPANY will then still have a [****] period to communicate its decision.

 

11

 

On expiry of the pre-emptive period mentioned above, if the other PARTY has not communicated its wish to exercise its pre-emptive right, the transferor will automatically benefit from the right to authorise the transfer.

 

The other PARTY can refuse the purchaser only if it can reasonably demonstrate in writing, in this same [****] period from the notification of the intention, that a transfer with such transferee would be contradictory to its articles of association, activities and/or tasks.

 

The terms and conditions of sale of any of the PATENTS to a third party may not under any circumstances be more favourable than those proposed to the other PARTY.

 

In the transfer deed, the transferor will then inform to the transferee, who accepts without modification, the rights and obligations that are in this Agreement as well as all the contracts relating to the PATENTS as per the conditions and reservations of the agreements. The transferee will be subrogated in all the rights and obligations of the transferor, except for the right to be the  APPRAISER/MANAGER OF PATENTS if the transferring PARTY were the APPRAISER/MANAGER OF PATENTS on behalf of the PARTIES. A copy of the transfer deed is sent to the other PARTY.

 

The transferring PARTY undertakes to provide to the other PARTY and/or to the third party purchaser all signatures and documents necessary for the industrial property proceedings relating to PATENTS.

 

In addition, the transferring PARTY undertakes to ensure that its staff members cited as inventors provide the necessary signatures and any information necessary for any proceedings related to PATENTS before the Patents Office particularly for the filing and maintenance of the PATENTS.

 

Article 7-           CONFIDENTIALITY

 

7.1                    The PARTIES agree to respect and to maintain as strictly confidential all CONFIDENTIAL INFORMATION received from the other PARTY.

 

7.2                    The PARTIES undertake to have their staff and any person attached to their service in any capacity whatsoever observe the same commitment, and to make sure that they respect this confidentiality commitment as regards the CONFIDENTIAL INFORMATION.

 

7.3                    The PARTIES agree not to submit application patent application or to claim any other intellectual property title including all or part of the CONFIDENTIAL INFORMATION received from the other PARTY, unless specifically agreed in writing with the latter PARTY.

 

7.4                    The confidentiality obligations binding the PARTIES under this Agreement do not apply to the use or disclosure of CONFIDENTIAL INFORMATION for which the recipient PARTY can demonstrate:

 

a)                   that they have been disclosed after obtaining prior written authorisation from the owner PARTY, or that the disclosure was made by the owner PARTY

 

b)                   That they belonged to the public domain at the time of their disclosure or that they had been published or made available to the public, in any manner whatsoever, without action or error on the part of the receiving PARTY,

 

12

 

c)                   that they have been received by the recipient PARTY from a third party legally and without any breach of this Agreement,

 

d)                  that at the date of its communication by the owner PARTY that provided it, the recipient PARTY was already in possession of this information,

 

e)                   that its disclosure was imposed by applying an essential legal or regulatory provision or by application of a final court decision or an arbitration ruling.

 

The aforementioned exceptions are not cumulative.

 

7.5                      The PARTIES agree by this Agreement that any disclosure to third parties of any CONFIDENTIAL INFORMATION, particularly disclosure to a CO-CONTRACTING THIRD PARTY, given that, in this case, SATT LUTECH will not be considered as a third party, will be preceded by the signing of a secret agreement whose terms and conditions will be at least similar to those in this Article.

 

7.6                      This Article shall remain in force for five (5) years after the expiry or earlier termination of this Agreement without prejudice to the most stringent contractual provisions particularly provided in a LICENSE or CONTRACT FOR USE  .

 

Article 8 —                                    INFRINGEMENT - APPRAISAL OF PATENTS

 

8.1                     In case of infringement proceedings undertaken by a third party against the PATENTS, declarations of invalidity, or infringement of PATENTS by a third party, the PARTIES cooperate to determine by mutual agreement the strategy to adopt and will provide each other with all elements in their possession in order to assess the nature and magnitude of the grievances filed or acts of infringement.

 

8.2                     In the event that a consensus cannot be obtained, each of the PARTIES may carry out the actions that it deems appropriate at its own expense, on the understanding that, in this case, the indemnities resulting from said actions granted by the deliberating jurisdiction will fully and irrevocably remain with the acting PARTY.

 

8.3                     The PARTY that has not taken any action  undertakes to provide all documents, powers or information required by the PARTY initiating proceedings for the above-mentioned actions.

 

8.4                     In the event of an action brought by a third party, each PARTY shall bear the costs of its own defence. Each of the PARTIES will be personally liable for the sanctions pronounced against them by the courts, notwithstanding any solidarity that may be pronounced against them.

 

13

 

8.5                     Each PARTY waives the right to sue the other PARTY regarding the consequences on the validity of the PATENTS as a result of an action or defence by the latter.

 

8.6                     In the event of use of the PATENT, the provisions of the LICENSE or the CONTRACT FOR USE  relating to the infringement, shall apply as of right and will prevail over any other provision.

 

8.7                     Points 8.3, 8.4 8.5 and 8.6 of this Agreement shall remain in force notwithstanding the expiry or termination of this Agreement.

 

Article 9 -               TERMINATION

 

This Agreement is terminated as of right in the event that one of the PARTIES becomes the sole owner of all the PATENTS.

 

Article 10 -            TRANSFER OF AGREEMENT

 

This Agreement is personal, non-assignable and non-transferable subject to the provisions of Article 6 of this Agreement.

 

Article 11 -            WAIVER

 

The fact that one of the PARTIES does not invoke a breach by the other PARTY of any one of the obligations set forth in this Agreement shall not be construed in the future as constituting waiver by the initial PARTY of the obligation in question.     ,

 

Article 12 —                                INTERPRETATION AND PREPONDERANCE OF THE CONTRACT FOR USE SIGNED WITH COMPANY

 

In case of difficulty bearing on the interpretation or in case of contradictions of the terms of this agreement in accordance with the provisions of the CONTRACT FOR USE signed with COMPANY, the provisions of this CONTRACT FOR USE shall prevail and shall be applicable automatically.

 

Article 13 -            APPLICABLE LAW - DISPUTES

 

13.1                      This Agreement is governed by French laws and regulations.

 

13.2                      In the event of any differences in the interpretation or fulfilment of this Agreement, the Parties shall undertake to resolve their differences amicably.

 

14

 

13.3                    In the event of continued disagreement, exceeding three (3) months, from the first notification concerning the dispute by one of the PARTIES to another, the dispute shall be submitted to the competent French courts.

 

13.4                    Notwithstanding the termination or expiry of this Agreement, this Article shall remain in effect.

 

Article 14 -            ENTIRE AGREEMENT

 

This Agreement sets out all the obligations of the PARTIES relating to the co-ownership of PATENTS and can only be modified by a written agreement between the PARTIES signed by the representatives of the PARTIES duly authorised for this purpose. No general or specific condition contained in the documents sent or delivered by the PARTIES may be incorporated into this Agreement.

 

Article 15 -            INVALIDITY OF A CLAUSE

 

If one or more stipulations of this Agreement are held to be invalid or declared as such by application of a law, a rule* and in particular, the European Union law — or following a final ruling of a competent court, the other stipulations shall retain their full force and scope and the PARTIES will immediately make the required changes in accordance with, to the fullest extent possible, the agreement of intent existing at the time of signing this Agreement.

 

Article 16-             TITLES

 

In the event of difficulties in interpretation of any one of the titles figuring at the head of the clauses and any one of the clauses, the titles will be declared non-existent.

 

Article 17 —         REGISTRATION IN THE NATIONAL PATENTS REGISTER

 

17.1                         The MANAGER OF PATENTS can enter this Agreement in the National Patents Register, held by the National Institute of Industrial Property, and in the national patents register held by the national offices of Industrial Property concerned by the PATENTS.

 

17.2                         The costs of registrations provided for in Article 16.1 are considered as COSTS OF INDUSTRIAL PROPERTY

 

Article 18 -            NOTIFICATIONS

 

Any notification required under this Agreement shall be issued by registered letter with acknowledgement of receipt, to the PARTY concerned at the following address

 

15

 

For the COMPANY:

Institut Biophytis

14 avenue de Opcra 75001 Paris

 

For UPMC:

Université Pierre et Marie Curie DGRTT

RéfXIOlOO

 

4 Place Jussieu 75252 Paris Cedex 05

 

Article 19                                            - MISCELLANEOUS

 

In addition, the PARTIES undertake, in the event of final abandonment by all the PARTIES of all PATENTS to meet their legal and regulatory obligations vis-à-vis their INVENTORS (in particular, the INVENTORS must be offered beforehand to take back the concerned PATENTS) in their name and at their own cost) under the conditions to be defined.

 

The provisions of this Article shall remain in force notwithstanding earlier termination of this Agreement, in accordance with Article 9.

 

Executed in two (2) originals drafted in French, one (1) for each one of the PARTIES.

 

Signed in Paris, on

 

	
/s/ Jean Chambaz
    	
 
    
	
Mr Jean CHAMBAZ

Chairman of UPMC
    	
 
    	
21   MARCH 2016
    

 

	
/s/ Stanislas Veillet
    	
 
    	
 
    
	
Mr Stanislas Veillet

For the COMPANY
    	
29/03/2016
    

 

16

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00319-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00319-of-00352.parquet"}]]