Document:

imra-ex1010_712.htm

Exhibit 10.10

Certain identified information has been excluded from the exhibit because it is both (i) not
material and (ii) is the type of information that the registrant treats as private or confidential.
Double asterisks denote omissions.

EXCLUSIVE LICENSE AGREEMENT

 

This license agreement (this "Agreement") is made and is effective as of April 25, 2012 (the "Effective Date") between The UAB Research Foundation ("UABRF") and Complexa, Inc. (the "Licensee").

 

RECITALS

 

WHEREAS, UABRF, by and through its authority as the lead institution under an Inter­ Institutional Agreement (the "IIA") with the University of Oregon, Morehouse School of Medicine, and Cardiff University and their Affiliates ("Other Owners") holds all right to transfer all rights, title and interest in the intellectual property described in UABRF intellectual property disclosure numbered U2003-0061, entitled "Cell Signaling by Nitrated Hydrocarbons"  which was developed by inventor employees from UABRF and Other Owners, which are Bruce Freeman et al., UABRF; Valerie O'Donell, Cardiff University; Eugene Chen, Morehouse School of Medicine; and Bruce Branchaud, University of Oregon ("Inventors").

 

WHEREAS UABRF and Other Owners own all right, title, and interest to inventions made by University personnel during the course of their employment. UABRF and Other Owners entered into and duly authorized the IIA dated February 28, 2012 which gives UABRF full authority to negotiate and grant exclusive licenses for the commercial development and exploitation of their jointly owned patent and intellectual property rights in the abovementioned intellectual property disclosures.

 

WHEREAS, the Licensee, a company engaged in the area of drug design and discovery, desires to obtain a license to the Licensed Patents upon the terms and conditions set forth in this Agreement.

 

NOW, THEREFORE, in consideration of the premises described above and the mutual promises and agreements set forth in this Agreement, the Parties agree as set forth below.

 

ARTICLE 1

DEFINITIONS

 

The Definitions used in this Agreement are set forth below.

 

	
 
	
1.1
	
"Affiliate" means any Person that directly or indirectly controls, is controlled by, or is under common control with a Party. "Control" means (i) the beneficial ownership of at least fifty percent (50%) of the voting securities of a Person with voting equity, or (ii) the power to direct or cause the direction of the management or policies of a Person.

	
 
	
1.2
	
"Agreement" means this agreement, as amended from time to time in accordance with the terms and conditions set forth in this agreement.

	
 
	
1.3
	
"Applicable Law" means all laws, statutes and regulations promulgated by all Regulatory Authorities and all Governmental Authorities.

	
 
	
1.4
	
"Development and Commercialization Plan" means development, manufacturing, marketing and commercialization activities proposed to be undertaken by the Licensee with respect to 

 

	
 
		
the Licensed Patents as set forth on attached Exhibit B.

	
 
	
1.5
	
"Disclaimed Licensed Patent(s)" means any Licensed Patent in respect of which the Licensee decides not to pursue protective rights, undertake, or be responsible for, the payment of Procurement Expenses, as described in Section 4.1(d) of this Agreement.

	
 
	
1.6
	
"First Commercial Sale" means the first Sale of a Licensed Product to a Third Party.

	
 
	
1.7
	
"For Value" means any consideration, remuneration or benefit of any kind, whether received directly or indirectly, including, but not limited to, cash, equity, debt, preferential treatment, including waiver, rebate, discount, etc.

	
 
	
1.8
	
"Governmental Authorities" means, with respect to each country or jurisdiction, all legislative and governmental authorities, bodies, commissions, agencies or other instrumentalities of such country or jurisdiction.

	
 
	
1.9
	
"Infringement Notice" is defined in Section 7.1 of this Agreement.

	
 
	
1.10
	
"Inventors" are defined in the first two recitals of this Agreement.

	
 
	
1.11
	
"Licensed Field of Use" means human therapeutics and diagnostics, including any and all uses incidental to human prophylactic and therapeutic applications, applications in veterinary medicine and commercial laboratory research applications for human prophylactic or therapeutic use.

	
 
	
1.12
	
"Licensed Patents" means (a) the patents and/or patent applications set forth on attached Exhibit A, (b) any foreign patent applications based thereon, (c) all patents proceeding from such domestic and foreign patent applications, (d) all claims of continuations-in-part that are entitled to the benefit of the priority date of the parent Licensed Patent and are enabled by subject matter that is disclosed in the parent Licensed Patent, and (e) all divisionals, continuations, reissues, reexaminations and extensions of any patent or patent application described in (a) - (d) above. Licensed Patents does not include any patent and/or patent application that relates to a Disclaimed Licensed Patent.

	
 
	
1.13
	
"Licensed Product" means any product or part thereof, process or service, the development, manufacture, use, import, export, offer for sale or sale of which, but for this Agreement, would infringe a Valid Patent Claim set forth in any Licensed Patent.

	
 
	
1.14
	
"Licensed Territory" means worldwide.

	
 
	
1.15
	
"Management Activities" means any and all Procurement Activities and any other steps deemed necessary and reasonable to commercialize the Disclaimed Licensed Patents.

 

 

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1.16
	
"Net Sales" means the gross amount set forth on the invoice relating to any Sale of a Licensed Product, less [**]. Where a Licensed Product is not used, transferred or exchanged For Value, the Net Sales will be [**].   Where there is no comparable sale or transfer For Value, the Net Sale will be [**].

	
 
	
1.17
	
"Non-Commercial Research Purposes" means any use and practice solely for academic research and/or educational purposes and not for any commercial or for-profit purposes, whether directly or indirectly.

	
 
	
1.18
	
"Non-Royalty Income" means anything received by Licensee For Value in lieu of a royalty payment associated with product sales and made directly in connection with a grant of rights to a Third Party to sell or offer for sale Licensed Products, including, but not limited to, fees and advances. For clarity purposes, Non-Royalty Income shall not include any consideration received by Licensee For Value from a Third Party in connection with a merger, sale of assets or otherwise, of all or substantially all of the business of the Licensee to which the subject matter of this Agreement relates; and Non­ Royalty Income shall not include any consideration received by Licensee For Value made directly in connection with a grant of rights to a Third Party to sell or offer for sale Licensed Products when such consideration  is in addition to a running royalty payment by the Third Party on the sale of Licensed Products.

	
 
	
1.19
	
"Parties" means UABRF and the Licensee and each of them individually is a "Party."

	
 
	
1.20
	
"Person" means an individual, corporation, partnership, trust, business trust, association or any other entity with a separate legal identity, including the Parties.

	
 
	
1.21
	
"Proprietary Information" is defined in Section 8.4.

	
 
	
1.22
	
"Procurement Activities" means all actions deemed necessary and desirable to procure the Licensed Patents, including, but not limited to, obtaining, filing for, securing, pursuing, prosecuting, continuing or maintaining, and defending the patents and patent applications within the Licensed Patents.

	
 
	
1.23
	
"Procurement Expenses" means all legal fees, costs and expenses reasonably incurred by UABRF in the performance of the Procurement Activities, such fees, costs and expenses to be documented by written invoice.

	
 
	
1.24
	
"Regulatory Authority" means, with respect to any particular country or jurisdiction, the Governmental Authority with the primary responsibility for the evaluation or approval of diagnostic or therapeutic drug products before such products can be tested, marketed, promoted, distributed or sold in such country, including Governmental Authorities that have jurisdiction over the pricing of such products. The term Regulatory Authority includes the Food and Drug Administration of the United States.

	
 
	
1.25
	
"Representative(s)" means, with respect to each Party, all trustees, directors, officers, employees, agents and advisors.

	
 
	
1.26
	
"Sale or Sales" means any use, transfer or exchange, For Value or otherwise, of a Licensed Product.  Sales include all Sales by the Licensee, and its Sublicensees and include any transfer by the Licensee or a Sublicensee to an Affiliate or sublicensee where there is no 

 

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subsequent Sale (i.e., the Licensed Product is not further resold or transferred). For the avoidance of doubt, Sales shall not be deemed to include (a) any transfer by the Licensee or a Sublicensee to an Affiliate or Sublicensee where there is a subsequent Sale of the Licensed Product; only the subsequent Sale is used to calculate any amount due, (b) the use, performance or provision of a Licensed Product for research and development purposes, or (c) reasonable distributions as samples or given as donations for indigent use.

	
 
	
1.27
	
"Sublicensee" means a Person to whom the Licensee has granted a sublicense pursuant to Section 2.5 of this Agreement.

	
 
	
1.28
	
"Term" is defined in Section 10.1.

	
 
	
1.29
	
"Third Party" means any Person other than the Parties and their Affiliates.

	
 
	
1.30
	
"United States" means the United States of America.

	
 
	
1.31
	
"United States Government" means the Federal Government of the United States.

	
 
	
1.32
	
"Valid Patent Claim" means an issued and unexpired patent claim included within the Licensed Patents which has not been held permanently revoked, unenforceable or invalid by a decision of a court or other governmental agency of competent jurisdiction, to which an appeal has not or cannot be taken within the time allowed for appeal, and which has not been disclaimed, denied or admitted to be invalid or unenforceable through reissue, disclaimer or otherwise.

ARTICLE 2

GRANT OF LICENSE

 

2.1Grant of License. Subject to the terms and upon the conditions set forth in this Agreement, UABRF hereby grants to the Licensee an exclusive right and license, subject to UABRF's rights in Section 2.3, to (a) practice and fully exploit, including the right to enforce as set forth in Article 7, the Licensed Patents and (b) make, have made, develop, use, lease, offer to sell, sell, import and export Licensed Products, within the Licensed Field of Use in the Licensed Territory during the Term. The Licensee may transfer its rights under this Agreement to an Affiliate, provided such Affiliate assumes all of the obligations of the Licensee under this Agreement, or as otherwise provided in this Agreement under Section 12.5.

 

2.2Rights of the United States Government. It is understood that a United States Governmental Authority (National Heart, Lung, and Blood Institute - Grant Number HL0581 l 5) has funded research, during the course of or under which the Licensed Patents were conceived or made, the United States Government is entitled, as a right, under the provisions of 35 U.S.C. §§ 200-212 and applicable regulations of Chapter 37 of the Code of Federal Regulations, to a non­ exclusive, non-transferable, paid-up license to practice or have practiced and use the Licensed Patents for governmental purposes. The Licensee acknowledges that the rights and license granted to it pursuant to this Agreement are subject to any and all rights of the United States Government.

 

2.3Reservation of Rights by UABRF, its Affiliates, and the Other Owners. UABRF reserves the right, for itself, for its Affiliates, and for the Other Owners, to:

 

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(a)
	
practice and use, and to permit its Representatives to practice and use, the Licensed Patents for Non-Commercial Research Purposes;

	
 
	
(b)
	
grant to non-profit academic, educational or research institutions and governmental agencies, non-exclusive, royalty-free licenses to make and use the Licensed Patents for Non-Commercial Research Purposes;

	
 
	
(c)
	
permit their respective Representatives to disseminate and publish scientific findings from research related to the Licensed Patents, subject to Section 8.2; and

	
 
	
(d)
	
license the Licensed Patents to Third Parties for applications and uses outside of the Field of Use.

 

2.4Title Remains with UABRF and Other Owners. All title in and to the Licensed Patents remains with UABRF and Other Owners. Except as provided in this Agreement, no express or implied licenses with respect to the Licensed Patents or any other rights are transferred  or granted to the Licensee by implication, estoppel or otherwise.

 

2.5Right to Grant Sublicenses. The Licensee has the right to grant sublicenses to any Person under this Agreement on the following terms and conditions:

	
 
	
(a)
	
the execution of a sublicense shall not in any way diminish, reduce or eliminate any of the Licensee's obligations under this Agreement, and the Licensee shall remain primarily liable for such obligations and any breach of any provision of this Agreement by a Sublicensee;

	
 
	
(b)
	
sublicenses may not be granted to Persons who are Affiliates of the Licensee, or who are otherwise immediate family members of, or controlled by the immediate family members of, Persons who control the Licensee;

	
 
	
(c)
	
the Licensee shall obtain UABRF's prior written consent of all sublicense agreements, which consent shall not be unreasonably withheld, conditioned or delayed;

	
 
	
(d)
	
any sublicense so granted is limited to the Licensed Field of Use;

	
 
	
(e)
	
any sublicense so granted shall be subject and subordinate to, and consistent with, the terms of this Agreement;

	
 
	
(f)
	
the Licensee may not sublicense the right to prosecute the Licensed Patents to a Sublicensee;

	
 
	
(g)
	
any sublicense shall also provide that, in the event this Agreement is terminated or upon the expiration of the Term, such sublicenses shall automatically become a direct license with UABRF on the terms stated therein;

	
 
	
(h)
	
all sublicenses are to be For Value and the Licensee shall not receive from a Sublicensee anything of value in lieu of cash payments in consideration for any sublicense under this Agreement without the prior written consent of UABRF;

	
 
	
(i)
	
the Licensee shall provide UABRF with a copy of any such sublicense granted by it under this Agreement within [**] of the execution of the sublicense;

	
 
	
(j)
	
all such copies of sublicense agreements may be redacted to exclude confidential scientific information and other information required by the Sublicensee to be kept confidential, provided that all relevant financial terms and information shall be retained and shall not be redacted; the disclosure of sublicense agreements to UABRF shall be subject to the confidentiality obligations set forth in this Agreement;

	
 
	
(k)
	
UABRF is a third party beneficiary to each sublicense and each agreement evidencing a sublicensing arrangement shall include a statement and an acknowledgement by the Sublicensee to this effect; and

 

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(l)
	
Sublicensees are prohibited from further sublicensing the Sublicensee's rights to any other Person without the prior written consent of UABRF, which shall not be unreasonably withheld, conditioned or delayed.

 

ARTICLE 3

DEVELOPMENT AND COMMERCIALIZATION

 

3.1Development and Commercialization Plan. During the Term, the Licensee shall use commercially reasonable efforts to develop, manufacture, commercialize and market a Licensed Product in accordance with the procedures and practices that are usual and customary for similar technologies and industries. The Parties acknowledge that the Licensee has provided to UABRF the Development and Commercialization Plan set forth on attached Exhibit B which sets forth its current development and commercialization objectives. The Parties further acknowledge and agree that the Development and Commercialization Plan is, and the development and commercialization milestones set forth therein are reasonable.

 

3.2Amendment of Development and Commercialization Plan. All variations and deviations from and changes to the Development and Commercialization Plan must be expressly approved in writing by UABRF, such approval not to be unreasonably withheld, conditioned or delayed.

 

3.3Development and Commercialization Report. The Licensee shall provide UABRF, [**], with written progress reports detailing the activities of the Licensee relating to the Development and Commercialization Plan. As a general guide, each such report shall provide information regarding the accomplishments and progress made by the Licensee during the prior reporting period and the objectives and goals to be reached during the forthcoming reporting period. The Licensee will thereafter provide such reports to UABRF on an annual basis on the anniversary of the Effective Date.

 

3.4Regulatory Approvals. With respect to each Licensed Product, and to the extent regulatory approval is required, the Licensee shall use commercially reasonable efforts to obtain the approval of each applicable Regulatory Authority prior to the First Commercial Sale in each country/jurisdiction in which the Licensee intends to sell Licensed Products.

 

3.5Patent Markings. The Licensee shall ensure that each Licensed Product manufactured and/or sold in the United States shall bear patent markings that meet all applicable requirements of 35 U.S.C. §287, as amended from time to time. All Licensed Products manufactured and/or sold outside of the United States shall be marked in such a manner as to conform to the Applicable Law of such country/jurisdiction.

 

3.6Manufacturing in the United States. The Licensee shall use [**] to substantially manufacture in the United States any Licensed Products sold in the United States.

 

 

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ARTICLE 4

PROCUREMENT OF THE  LICENSED PATENTS; PA TENT PROSECUTION

 

4.1Future Procurement Activities.

 

	
 
	
(a)
	
UABRF Retains Primary Responsibility. Subject to the terms and conditions set forth in this Agreement, UABRF shall, from the Effective Date, continue to be primarily responsible for undertaking all Procurement Activities relating to the Licensed Patents. UABRF shall, subject to consultation with the Licensee, select such legal counsel as it in its sole discretion deems appropriate to assist it in this process.

	
 
	
(b)
	
Co-operation of the Licensee. The Licensee shall use commercially reasonable efforts to co-operate with UABRF and its designated legal counsel in connection with the Procurement Activities.

	
 
	
(c)
	
Consultation with the Licensee.  UABRF shall, and shall cause its designated legal counsel to, consult with the Licensee in connection with such Procurement Activities and the Licensee shall be given reasonable opportunity to discuss, advise and review issues with UABRF and its designated legal counsel in connection therewith. UABRF shall, and shall cause its designated legal counsel to, consider the Licensee's comments and suggestions prior to taking any material actions with respect to the Procurement Activities and will take all Procurement Actions reasonably suggested by the Licensee. UABRF will authorize the Licensee to communicate directly with UABRF's designated legal counsel.

	
 
	
(d)
	
Disclaimed Licensed Patents. The Licensee may, at any time during the Term, provide at least [**] written notice to UABRF that it no longer wishes to be responsible for the Procurement Expenses in connection with one or more Licensed Patents. In such cases, (i) the Licensee shall continue to be responsible for all Procurement Expenses incurred in connection therewith until the expiration of such [**] notice period and thereafter shall not be responsible for such expenses and (ii) the Licensed Patent(s) so affected shall no longer be deemed to be licensed to the Licensee and shall be deemed to have been disclaimed by the Licensee (each, a "Disclaimed Licensed Patent"), (iii) the Licensee shall forfeit and shall no longer have any rights or obligations with respect thereto and (iv) Exhibit A shall be amended accordingly to delete the affected Licensed Patent(s).

 

4.2Information to the Licensee. UABRF shall provide copies of all patent applications and all filings, correspondence and other related documentation pertaining to prosecutorial matters arising from the Protection Activities, including, but not limited to, all office actions, requests for examinations and restriction requirements.

 

ARTICLE 5

FINANCIAL TERMS

 

5.1Accrued Procurement Expenses. Within one (1) year of the Effective Date, the Licensee shall reimburse UABRF for all Procurement Expenses incurred prior to the Effective Date.

 

5.2Future Procurement Expenses. During the Term and with respect to each Licensed Patent, other than Disclaimed Licensed Patents, the Licensee will be financially responsible for the 

 

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payment of all Procurement Expenses incurred after the Effective Date. The Licensee shall pay such amounts to UABRF within [**] of receipt of an invoice for the same from UABRF. UABRF shall be responsible for all Procurement Expenses incurred in connection with each Disclaimed Licensed Patent in countries/jurisdictions not designated by the Licensee pursuant to Section 4.1(d) above

 

5.3License Fee. On or before the Effective Date, the Licensee shall pay to UABRF a non­ refundable, non-creditable license fee of TWENTY-FIVE THOUSAND DOLLARS ($25,000.00).

 

5.4Milestone Payments. Within [**] of the receipt, by Licensee, of the approval of an NDA from the United States Food and Drug Administration (the "FDA"), or an equivalent approval from any other Regulatory Authority authorized to issue such approvals in markets other than the United States, for the first Licensed Product, Licensee shall make a one-time payment of [**] to UABRF.

 

5.5Patent Issue Fee: Upon the first issuance of any Licensed Patent, a divisional, continuation, continuation-in part, reissues, or foreign counterparts, any claim of which covers a Licensed Product, Licensee shall pay a one-time, non-creditable, non-refundable License Issue Fee of FIFTEEN THOUSAND DOLLARS ($15,000.00), which shall be paid to UABRF no later than December 1, 2013. This provision will apply only once and only to the first issued Licensed Patent.

 

5.6Running Royalty Payments. During the Term and with respect to each country or jurisdiction within the Licensed Territory, the Licensee shall pay to UABRF a continuing royalty of [**] on all Net Sales arising in such country/jurisdiction until the expiration of the last Valid Patent Claim in that country/jurisdiction. All amounts owing to UABRF under this Section 5.6 shall be paid on a quarterly basis, on or before the [**] following the end of the calendar quarter in which such amounts were earned. If Licensee is compelled to take a license from a Third Party in order to bring Licensed Product to market, the royalty due to UABRF shall be reduced by no more than [**] to offset royalties due to such Third Party or Third Parties. For clarification, regardless of the number of Third Party licenses, Licensee is compelled to enter into to bring Licensed Product to market, the royalty payments due to UABRF under this Section 5.6 will never be reduced to lower than [**] of Net Sales made by Licensee, Sublicensees, or Affiliates.

 

Licensee will notify UABRF immediately after Licensee's obligation to pay royalties to a Third Party under a valid license agreement in place between the Licensee and the Third Party is triggered and will provide UABRF with a copy of such license which may be redacted for other proprietary matters, but which contains the full royalty agreement between Licensee and the Third Party.

 

5.7Minimum Royalty Payments. Beginning on [**] of this Agreement, the Licensee shall be obligated to pay minimum annual royalty payments to UABRF. In the event that the aggregate running royalty payments paid by the Licensee to UABRF pursuant to Section 5.6 above do not reach the minimum payment obligations set forth below by the date set forth below, then the Licensee shall, within [**] following each of the dates specified, pay UABRF the difference between such aggregate royalty payment actually paid to UABRF and the 

 

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minimum payment set forth below. All such minimum annual royalty payments shall be nonrefundable.

 

	
Calendar Year Ending
	
Minimum Payment

	
December 1, 2014
	
[**]

	
December 1, 2015
	
[**]

	
December 1, 2016
	
[**]

	
Each calendar year thereafter during the Term
	
[**]

All running royalty payments paid by the Licensee to UABRF during any one calendar  year shall be credited against the minimum annual payment due to be paid by December 1 of that calendar year. Running royalties paid in any one calendar year may not be carried forward to be credited against the minimum annual royalty payment due in any subsequent calendar year. All such minimum annual royalty payments shall be nonrefundable.  Upon the expiration of the Term or earlier termination of this Agreement, any minimum royalties shall  be pro-rated  as of the date of termination or expiration by the number of days elapsed in the applicable twelve- (12-) month period.

 

5.8Royalty Reports. Commencing with the first day of the calendar quarter following the calendar quarter in which the obligation of the Licensee to pay running royalty payments pursuant to Section 5.7 of this Agreement  is triggered,  the Licensee shall provide to UABRF a written report setting forth all applicable information specified in Exhibit E, which such report shall accompany the payment of all running royalties due to be paid to UABRF by the Licensee with respect to the preceding calendar quarter. Reports furnished must include the calculation of running royalties by Licensed Product and by country/jurisdiction and must include the rate of currency conversion and the date such conversion was calculated as described in Section 5.13 of this Agreement, all in substantially the format set forth in Exhibit E. If the Licensee is required to pay an annual minimum royalty payment, at the time such payment is made, the Licensee shall also furnish a written report providing, to the extent not already provided  to UABRF, all of the information required to be set forth in the quarterly reports discussed above and the additional amount being paid by the Licensee which accompanies the report, being the difference between aggregate running royalty payment actually paid to UABRF in that calendar year and the minimum payment required to be paid.

 

5.9Non-Royalty Income. The Licensee shall not receive any Non-Royalty Income without the prior written consent of UABRF, which such consent shall not be unreasonably withheld, conditioned or delayed. All Non-Royalty Income received by Licensee during the Term [**]. All such payments shall be accompanied by a written notification of the nature and origin of the payment, the identity of the original maker of the payment and, if the original payment was made in a foreign currency, must include the rate of currency conversion and the date such conversion was calculated as described  in Section  5.14 of this Agreement.  In the event that the Licensee receives Non-Royalty Income that is not cash or a cash equivalent, the percentage of non-cash payments shall be calculated as percentage of the then current fair market value of such non-cash 

 

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consideration.

 

5.10Royalty Payments from Sublicensees.   The Licensee shall pay to UABRF an amount equal to that which the Licensee would have been required to pay to UABRF had the Licensee effected the Sales actually effected by the Sublicensee.

 

5.11Address for Payments. Except as otherwise directed by UABRF, all amounts due to be paid by the Licensee to UABRF pursuant to this Agreement shall be paid to UABRF at the address set forth below its signature on the signature page of this Agreement.

 

5.12Late Payment Penalty. The balance of any amount which remains unpaid more than [**] after it is due to UABRF shall accrue interest until paid at the rate equal to the lesser of [**] per calendar month or the maximum amount allowed under Applicable Law. However, in no event shall this interest provision be construed as a grant of permission for payment delays.

 

5.13Currency Conversion.  All amounts due to be paid to UABRF pursuant to this Agreement shall be made in United States dollars.  Any and all amounts received  by the Licensee or generated in foreign currency shall be converted into United States dollars at the official rate of exchange from such currency to United States dollars at the rate quoted in the Wall Street Journal (United States edition) for the last business day of the calendar quarter in which running royalties are due and payable to UABRF or on a business day no earlier than [**] before payment is made to UABRF.

 

5.14Foreign Taxes. UABRF is exempt from paying income taxes under United States law; therefore, all payments under this Agreement shall be made without deduction for taxes, assessments or other charges of any kind which may be imposed on UABRF by any government outside of the United States or any political subdivision of such government with respect to any amounts payable to UABRF pursuant to this Agreement. All such taxes, assessments or other charges shall be assumed by the Licensee.

 

ARTICLE 6 

RECORDKEEPING AND AUDIT RIGHTS

 

6.1Books and Records. The Licensee shall keep complete and accurate books, accounts and other records and documentation necessary to ascertain all transactions and events pursuant to which payments due to UABRF pursuant to this Agreement arise and are accrued and to verify the accuracy and completeness of such amounts. All such books, accounts and other records and documentation shall be kept at the Licensee's principal place of business for a period of not less than [**] following the end of the calendar year to which they pertain.

 

6.2Right to Audit. UABRF shall have the right to have the Licensee's books and records audited, at UABRF's expense, by a qualified, independent accounting firm of its choosing, under appropriate confidentiality provisions such as those set forth in Section 8.4 of this Agreement, to ascertain the accuracy of the reports and payments due to UABRF under this Agreement and compliance by the Licensee, its Affiliates and its Sublicensees with their obligations pursuant to this Agreement and any sublicense. Such audit shall be conducted on [**] advance notice during normal business hours and in a manner that does not interfere unreasonably with the Licensee's business but not more than [**]. If any such examination reveals that the Licensee has underpaid 

 

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or underreported any amount due under this Agreement to UABRF for any calendar quarter examined, the Licensee shall immediately pay to UABRF the amount so underpaid or underreported.

 

6.3Reimbursement of Cost of Audit. If any such examination reveals that the Licensee has underpaid or underreported any amount due under this Agreement to UABRF by more than [**] for any calendar quarter examined, the Licensee shall immediately reimburse UABRF the full costs and expenses incurred by it with respect to the audit.

 

ARTICLE 7

INFRINGEMENT; ENFORCEMENT

 

7.1Notification of Infringement. During the Term, each Party shall provide prompt written notice to the other Party of any actual infringement or suspected/potential infringement of the Licensed Patents of which such Party is or becomes aware and shall provide, to the extent reasonable and practicable, any available evidence of such infringement by a Third Party (an "Infringement Notice").

 

7.2Licensee Right to Pursue/Prosecute. During the Term, the Licensee shall have the first right, but not the obligation, to resolve, in the Licensed Field of Use and in the Licensed Territory, any suspected/potential infringement and prosecute any infringement of any Licensed Patents, in its own name and at its own expense, provided:

 

	
 
	
(a)
	
the affected Licensed Patents remains exclusively licensed to the Licensee and is not a Disclaimed Licensed Patent;

	
 
	
(b)
	
the claim relates to a Valid Patent Claim; and

	
 
	
(c)
	
the Licensee remains in compliance, in all material respects, with its obligations under this Agreement.

 

Before the Licensee commences an action with respect to any infringement or potential infringement, it shall give careful consideration to the views of UABRF and the potential effects on the public interest in making its decision whether or not to sue.  UABRF and the Other Owners shall use their best efforts to co-operate with the Licensee in connection with any remedial action undertaken by the Licensee and shall be responsible for the costs and expenses incurred by it and for those costs and expenses incurred by it at the reasonable request of the Licensee with respect to such co-operation.

 

7.3Control of Suit; Joinder; Expenses.

 

	
 
	
(a)
	
Initiated by the Licensee. If the Licensee wishes to commence a lawsuit, it must do so within [**] following the date of the relevant Infringement Notice and it shall bear all costs and expenses incurred by it in connection with such lawsuit. UABRF and the Other Owners shall use its best efforts to co­ operate with the Licensee in connection with such lawsuit and shall be responsible for the costs and expenses incurred by it and for those costs and expenses incurred by it at the reasonable request of the Licensee with respect to such co-operation.

 

 

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(b)
	
Initiated by UABRF. If the Licensee elects not to exercise its right to commence, or fails to commence, an action within [**] of the date of the relevant Infringement Notice, UABRF may do so at its own expense, and shall retain sole control over the direction of such lawsuit.  The Licensee shall co-operate fully with UABRF in connection with such lawsuit and shall be responsible for the costs and expenses incurred by it with respect to such co-operation. If UABRF files an infringement lawsuit, the Licensee may not thereafter commence a lawsuit against the same infringing party with respect to the same acts of infringement which are the subject of UABRF's lawsuit or with respect to which settlement is reached by the infringing party and UABRF; however, Licensee may elect to join in as a party to any infringement lawsuit initiated by UABRF, in which case, both Parties shall jointly control the lawsuit and shall equally share the responsibility of all legal fees, costs and expenses, unless otherwise agreed to by the Parties.

 

	
 
	
(c)
	
Joinder by UABRF.   UABRF, to the extent permitted by Applicable Law, may elect to join in as a party to any infringement lawsuit initiated by the Licensee, in which case, both Parties shall jointly control the lawsuit and shall equally sharethe responsibility of all legal fees, costs and expenses, unless otherwise agreed to by the Parties. The Licensee may not join UABRF in as a party to any lawsuit initiated by it without the prior written consent of UABRF which such consent shall not be unreasonably withheld, conditioned or delayed and without prior written agreement between the Parties as to the responsibility between the Parties for all costs and expenses incurred by the Parties. If UABRF is involuntarily joined as a party to a lawsuit initiated by the Licensee, the Licensee shall pay all legal fees, costs and expenses incurred by UABRF arising out of such joinder and participation, including, but not limited to legal fees, costs and expenses reasonably incurred by legal counsel selected and retained by UABRF to represent it in such lawsuit. While UABRF remains a party to any infringement lawsuit initiated by the Licensee, UABRF may not thereafter commence a lawsuit against the same infringing party with respect to the same acts of infringement which are the subject of the Licensee's lawsuit or with respect to which settlement is reached by the infringing party, the Licensee and UABRF.

 

7.4Settlement. The Licensee may not settle, enter into a consent judgment or other voluntary final disposition of any lawsuit initiated by it or to which it is a party without the prior written consent of UABRF, which consent shall not be unreasonably withheld, conditioned or delayed. Neither Party may settle or otherwise dispose of any lawsuit to which it is a party, which admits liability on the part of the other Party or which requires the other Party to pay money damages nor issue a formal statement without such other Party's prior written consent.

 

7.5Recoveries.

 

	
 
	
(a)
	
Lawsuit initiated by the Licensee and in which only the Licensee is a party. With respect to any lawsuit commenced by the Licensee pursuant to Section 7.3(a) above and in which UABRF is not a party, any recovery of damages shall first be applied in satisfaction of the costs and expenses incurred by the Licensee in bringing such lawsuit, including attorneys' fees, provided they are reasonably incurred, and any 

 

12

 

	
 
		
balance shall be treated as Net Sales in accordance with Section

5.6 of this Agreement.

 

	
 
	
(b)
	
Lawsuit initiated by the Licensee and in which UABRF ioins.

	
 
	
(i)
	
With respect to any lawsuit commenced by the Licensee pursuant to Section 7.3(a) above and in which UABRF is involuntarily joined as a party, any recovery of damages shall first be applied in satisfaction of the costs and expenses incurred by the Licensee and UABRF in bringing such lawsuit, including attorneys' fees, provided they are reasonably incurred (which such costs and expenses shall include all costs and expenses incurred by UABRF arising out of such joinder and participation, including, but not limited to legal fees and expenses reasonably incurred by legal counsel selected and retained by UABRF to represent it in such lawsuit), and any balance shall be treated as Net Sales in accordance with Section 5.6 of this Agreement.

	
 
	
(ii)
	
With respect to any lawsuit commenced by the Licensee pursuant to Section 7.3(a) above and in which  UABRF voluntarily joins as a party, any recovery of damages (whether compensatory or punitive in nature) shall first be applied, pro rata, in satisfaction of the costs and expenses incurred by the Parties in bringing such lawsuit, including attorneys' fees, provided they are reasonably incurred, and any balance shall be treated as Net Sales in accordance with Section 5.6 of this Agreement.

 

	
 
	
(c)
	
Lawsuit initiated by UABRF and in which only UABRF is a party.  With respect to any lawsuit commenced by UABRF pursuant to Section 7.3(b) above and in which Licensee is not a party, all recoveries of damages shall belong to UABRF. Furthermore, the Licensee shall pay over to UABRF any payments (whether or not designated as "royalties") made by the alleged infringer to the Licensee under any existing or future sublicense authorizing Licensed Products, up to the amount of UABRF's unreimbursed litigation expenses (including, but not limited to, reasonable attorneys' fees).

	
 
	
(d)
	
Lawsuit initiated by UABRF and in which Licensee ioins. With respect to any lawsuit commenced by UABRF pursuant to Section 7.3(b) above and in which Licensee joins as a party, any recovery of damages (whether compensatory or punitive in nature) shall first be applied, pro rata, in satisfaction of the costs and expenses incurred by the Parties in bringing such lawsuit, including attorneys' fees, provided they are reasonably incurred, and any balance shall be shared [**] UABRF and [**] Licensee.

 

7.6Inapplicability of Licensee's Rights. Notwithstanding Sections 7.1 -7.5 above, the rights and obligations of the Licensee under this article shall not apply to any Disclaimed Licensed Patent.

 

ARTICLE 8

OTHER COVENANTS AND AGREEMENTS

 

8.1Use of Names. No Party may, without the prior written consent of the other Party:

 

 

13

 

 

	
 
	
(i)
	
use (a) the name of the other Party or its Affiliates, if applicable, (b) the name or image of any Representative of the other Party, or (c) any trade-name, trademark, trade device, service mark, symbol, image, icon, abbreviation, contraction or simulation thereof owned by the other Party in any publication, advertising or sales promotional material, press release or in any marketing or advertising documentation or material; or

	
 
	
(ii)
	
represent, either directly or indirectly, that any product or service of the other Party is a product or service of the representing Party or that it is made m accordance with or utilizes the information or documents of the other Party.

 

Notwithstanding the above, the Licensee may disclose that it has received a license from UABRF in connection with any Licensed Product, and either Party may use the name of the other Party to the extent such use is reasonably necessary for complying with Applicable Law.

 

8.2Publications. In furtherance of the rights reserved in Section 2.3(c) of this Agreement, UABRF or its Affiliates shall submit the proposed publication or disclosure to the Licensee at least [**] prior to submission for publication or disclosure to allow the Licensee to review the matter for disclosure of Proprietary Information of the Licensee. The Licensee shall have [**] from its receipt of such proposed publication or disclosure to review and to provide written notice to UABRF or its Affiliate who provided the submission requiring removal of the Licensee's Proprietary Information and UABRF or its Affiliate shall remove the Licensee's Proprietary Information prior to publication or disclosure. If the Licensee does not provide written notice of such request to UABRF or its Affiliate who provided the submission within [**] after  receipt of the proposed publication or disclosure from UABRF or its Affiliate, UABRF or its Affiliate shall be free to publish or disclose to third parties the proposed publication or disclosure without further obligation to the Licensee.

 

8.3Insurance Coverage. Prior to commencing any Clinical Trial and thereafter during the Term, the Licensee shall cause to be in effect through purchase from a reputable insurance company or, upon the consent of UABRF, through a self-insurance program, at its sole expense, shall maintain "occurrence based type" liability insurance coverage or, if the Licensee is unable to obtain "occurrence based type" liability insurance, a "claims made type" liability insurance coverage (with at least [**] tail coverage). Such insurance coverage shall include a contractual endorsement providing coverage for all liability which may be incurred in connection with this Agreement, including, but not limited to general liability and products liability, and such other type of insurance coverage required by Applicable Law or which it deems necessary to enable the Licensee to perform its obligations under this Agreement. All such insurance coverage shall list UABRF and Other Owners as additional insureds. The Licensee shall provide evidence of such insurance coverage to UABRF upon the reasonable request of UABRF.  All such insurance coverage shall require the insurance provider, or in the case of a self insurance program, the Licensee, to provide UABRF with at least [**] prior written notice of any change in the terms or cancellation of coverage.

 

8.4Confidentiality.

 

	
 
	
(a)
	
Exchange of Proprietary Information. The Parties acknowledge that during the Term they are likely to share information with each other that they each consider to be 

 

14

 

	
 
		
confidential and proprietary ("Proprietary Information"). For the purposes of this Agreement, the Party that discloses Proprietary Information shall be referred to as the "Disclosing Party" and the Party receiving the Proprietary Information, the Receiving Party.

 

	
 
	
(b)
	
Nature of Proprietary Information. The Parties agree that all information that is provided to the other Party shall be deemed to be Proprietary Information. Notwithstanding the above, the Parties specifically agree that any reports provided by the Licensee pursuant to this Agreement shall be considered Proprietary Information.

	
 
	
(c)
	
Restrictions. With respect to all Proprietary Information disclosed to it, the Receiving Party (i) shall keep it confidential (other than as permitted by this Agreement), (ii) shall store and maintain it with the same diligence and care as its own proprietary information, but no less than reasonable diligence and care, (iii) may only use it for the purpose for which it was disclosed by the Disclosing Party, (iv) may not disclose it (other than as permitted by this Agreement), (v) may not deconstruct, modify or copy it (other than as permitted by this Agreement), and (vi) may not transfer or assign it to any Third Party.

	
 
	
(d)
	
Access to the Proprietary Information. The Proprietary Information may be used by, and disclosed to, on an "as-needed" basis, the Receiving Party's Representatives. The Licensee may disclose UABRF's Proprietary Information relating to the Licensed Patents to investors, prospective investors, consultants, collaborators, sublicensees,potential assignees and other Third Parties in the chain of manufacturing and distribution, if and only if, the Licensee obtains from such recipient a written confidentiality agreement, the provisions of which are at least as protective of UABRF's Proprietary Information as these set forth in this Section 8.4. Each Party will promptly notify the other Party of any unauthorized use of or access to the other Party's Proprietary Information of which it becomes aware.

	
 
	
(e)
	
Exceptions to Confidentiality Obligation. The restrictions of confidentiality described above shall not apply to Proprietary Information (i) which as of the Effective Date or subsequent thereto is or becomes available to the public without breach of this Agreement, (ii) if it is lawfully obtained from a Third Party not bound by similar confidentiality and use restrictions and obligations, (iii) if it is known by the Receiving Party prior to disclosure as evidenced by contemporaneous records, or (iv) if it is at any time developed by the Receiving Party independently of any disclosure made pursuant to this Agreement as evidenced by contemporaneous records. In addition, the confidentiality obligations shall not apply to the Receiving Party if the Receiving Party is legally required by applicable law, court order or Governmental Authority to disclose the Information, provided the Receiving Party discloses only the minimum to comply and, if possible and in light of the circumstances, provides reasonable prior notice to the Disclosing Party to enable it to contest the requirement or to seek a protective order.

	
 
	
(f)
	
Termination or Expiration of this Agreement. Upon the expiration of the Term, or the earlier termination of this Agreement, each Receiving Party shall, at the Disclosing Party's option and upon written notice thereof to the Receiving Party, return all Proprietary Information, copies and other tangible expressions thereof, to the Disclosing Party or provide the Disclosing Party with written notice that the Proprietary Information in its possession, or in the possession of its Representatives, 

 

15

 

	
 
		
has been destroyed within [**] after receipt of the Disclosing Party's written notice to the Receiving Party requiring the Receiving Party to destroy the Proprietary Information in its possession. The Receiving Party may retain one archival copy of the Information for purposes of compliance of its obligations under this Agreement.

	
 
	
(g)
	
Continuing Obligations after Termination/Expiration. The restrictions and obligations set forth in Section 8.4(c) above shall continue for [**] from the termination or expiration of this Agreement.

 

ARTICLE 9

TERM AND TERMINATION

 

9.1Term. This Agreement shall commence on the Effective Date and shall continue on a country-by-country basis until the date of expiration of the last to expire of any Valid Patent Claim (inclusive of any extensions, supplementary protection certificates or their equivalents) within the Licensed Patents, unless terminated sooner in accordance with the terms of this Agreement (the "Term").

 

9.2Termination by the Licensee.   The Licensee may terminate this Agreement at any time, in its sole discretion, by giving not less than ninety (90) days prior written notice to UABRF.   Upon the reasonable request of UABRF, the Licensee shall provide assistance, at UABRF's expense, to UABRF to enable UABRF to facilitate and effect the transfer of applicable information and documents in Licensee's actual possession regarding the Licensed Patents to a new licensee.

 

9.3Termination by UABRF. UABRF shall have the right to immediately terminate this Agreement upon the occurrence of any one or more of the following events:

 

	
 
	
(a)
	
if the Licensee is in material default of any provision of this Agreement or its obligations under this Agreement and such default has not been remedied within [**] after receipt of a notice to cure from UABRF;

	
 
	
(b)
	
upon the occurrence of the third separate default by the Licensee within any consecutive [**] period for failure to make payments when due under this Agreement;

	
 
	
(c)
	
if the Licensee fails to meet any of the development and commercialization milestones set forth in the Development and Commercialization Plan;

	
 
	
(d)
	
if by the end of the third (3rd) calendar year after the First Commercial Sale occurred, [**] of the minimum royalty payment described in Section 5.8 of this Agreement due in that calendar year is not originating from Net Sales;

	
 
	
(e)
	
if an examination by UABRF pursuant to Section 6.2 shows an underreporting or underpayment by the Licensee in excess of [**] of any amounts due to UABRF under this Agreement in any twelve (12) month period;

	
 
	
(f)
	
if the Licensee is convicted of a felony (or similar crime in a jurisdiction outside of the United States) relating to the manufacture, use or sale of a Licensed Product; or

	
 
	
(g)
	
if the Licensee shall become insolvent, shall make an assignment for the benefit of its creditors, or shall have a petition in bankruptcy filed for or against it, which has not been discharged, stayed or dismissed within [**] thereafter; or

	
 
	
(h)
	
if the Licensee disclaims payment of all Procurement Expenses.

 

 

16

 

 

9.4Effect of Termination or Expiration. Upon the termination of this Agreement or the expiration of the Term, all payments then or thereafter due to the Licensee pursuant to any sublicense shall, immediately and automatically, become owed directly to UABRF.

 

ARTICLE 10

COVENANTS; REPRESENTATIONS AND WARRANTIES; LIMITATIONS ON UABRF's OBLIGATIONS

 

10.1The Licensee.The Licensee makes the following representations and warranties to UABRF.

 

	
 
	
(a)
	
The Licensee is a corporation, duly incorporated, validly existing and in good standing under the laws of the State of Pennsylvania.

	
 
	
(b)
	
The Licensee has all necessary corporate power and authority to enter into this Agreement and to consummate the transactions contemplated hereby.

	
 
	
(c)
	
The execution, delivery and performance of this Agreement by the Licensee will not conflict with or result in a breach of, or entitle any party thereto to terminate, an agreement or instrument to which the Licensee is a party, or by which any of the Licensee's assets or properties are bound.

	
 
	
(d)
	
This Agreement has been duly authorized, executed and delivered by the Licensee and constitutes a legal, valid and binding agreement of the Licensee, enforceable against the Licensee in accordance with its terms, except as such enforceability may be limited by bankruptcy, insolvency, moratorium, reorganization or other similar laws affecting creditors' rights generally.

	
 
	
(e)
	
The Licensee possesses the necessary expertise and skill in the technical areas pertaining to the Licensed Patents, to make Licensed Products, and to make and has made, its own evaluation of the capabilities, safety, utility and commercial application of the Licensed Patents.

	
 
	
(f)
	
Any activity undertaken with the Licensed Patents and the Licensed Products will be conducted in compliance with all Applicable Laws.

 

10.2UABRF. UABRF makes the following representations and warranties to the Licensee.

 

	
 
	
(a)
	
UABRF is a non-profit corporation, duly incorporated, validly existing and in good standing under the laws of the State of Alabama.

	
 
	
(b)
	
UABRF has all necessary corporate power and authority to enter into this Agreement and to consummate the transactions contemplated hereby.

	
 
	
(c)
	
The execution, delivery and performance of this Agreement by UABRF does not conflict with or contravene its governing documentation, nor will the execution, delivery and performance of this Agreement by UABRF conflict with or result in a breach of, or entitle any party thereto to terminate, an agreement or instrument to which UABRF is a party, or by which any of UABRF's assets or properties are bound.

	
 
	
(d)
	
This Agreement has been duly authorized, executed and delivered by UABRF and constitutes a legal, valid and binding agreement of UABRF, enforceable against UABRF in accordance with its terms, except as such enforceability may be limited by bankruptcy, insolvency, moratorium, reorganization or other similar laws affecting creditors' rights generally.

	
 
	
(e)
	
UABRF has the right to grant the exclusive rights in the Licensed Patents pursuant to the license under this Agreement.

 

17

 

	
 
		

	
 
	
(f)
	
To UABRF's and the Other Owners best knowledge, UABRF and the Others Owners own all right, title and interest in the Licensed Patents and there have been no claims made against UABRF or Other Owners asserting the invalidity or non-enforceability of, or with respect to, the Licensed Patents, and UABRF and the Other Owners are not aware that any such claims exist.

	
 
	
(g)
	
The performance of Management Activities with respect to a Disclaimed Licensed Patent will not conflict with or result in a breach of any of the terms, conditions, or provisions of, or constitute a default under, this Agreement, and will not give rise to a cause of action by a Third Party against the Licensee, with respect to the remaining Licensed Patents licensed to the Licensee pursuant to this Agreement.

 

10.3Limitations on UABRF's Representations and Warranties. Except as set forth in this Agreement, UABRF makes no other representations or warranties of any kind. In particular, UABRF makes no express or implied warranties regarding merchantability, fitness for a particular purpose, non infringement of the intellectual property rights of third parties, validity and scope of any Licensed Patents, the capability, safety, efficacy, utility or commercial application or usefulness for any purpose of any Licensed  Patents, or that it will not grant licenses to one or more Third Parties to make, use or sell products or perform processes that may be similar to and/or compete with any Licensed Product, provided, however, that such license grant to one or more Third Parties is not otherwise inconsistent with the terms of this Agreement.

 

10.4No Obligation of UABRF. UABRF has no obligation to:

 

	
 
	
(a)
	
supervise, monitor, review or otherwise assume responsibility for the production, manufacture, testing, marketing, sale or disposition of any Licensed Product;

	
 
	
(b)
	
furnish any knowhow or other information relating to the Licensed Patents, other than as specifically provided in this Agreement; or

	
 
	
(c)
	
bring or prosecute legal action against any Person for infringement of the Licensed Patents, except as otherwise set forth in Article 7.

 

ARTICLE 11

LIABILITY AND INDEMNIFICATION

 

11.1No Liability of UABRF or the Other Owners. Neither UABRF, the Other Owners,, nor any of their Representatives have any liability whatsoever to the Licensee, or any Sublicensee or any Person for or on account of any injury, loss or damage of any kind or nature, sustained by, assessed or asserted against, or any other liability incurred by or imposed upon the Licensee, or any Sublicensee or any Person, arising out of or in connection with or resulting from:

 

	
 
	
(a)
	
the use of the Licensed Patents during the Term;

	
 
	
(b)
	
the production, use, practice, lease, or sale of any Licensed Product;

	
 
	
(c)
	
any advertising or other promotional activities with respect to (a) and/or (b) above; or

	
 
	
(d)
	
the Licensee's compliance with, and performance of the Licensee's representations and warranties given under, and the Licensee's obligations pursuant to, this Agreement;

provided, however, that such liability is not based upon, arising out of or otherwise relating to UABRF, the Other Owners, and/or their Representative(s)'s gross negligence or willful misconduct.

 

18

 

 

11.2Indemnification by the Licensee. The Licensee agrees to indemnify and hold UABRF, the Other Owners, and their Representatives harmless from and against any and all claims, demands, losses, costs, expenses, deficiencies, liabilities or causes of action of any kind or nature (including, without limitation, reasonable attorneys' fees and other costs and expenses of defense) based upon, arising out of or otherwise relating to:

 

	
 
	
(a)
	
the use of the Licensed Patents during the Term;

	
 
	
(b)
	
the production, use, practice, lease, or sale of any Licensed Product;

	
 
	
(c)
	
any advertising or other promotional activities with respect to (a) and/or (b) above; or

	
 
	
(d)
	
the Licensee's compliance with, and performance of the Licensee's representations and warranties given under, and the Licensee's obligations pursuant to, this Agreement;

provided, however, that such claims, demands, losses, costs, expenses, deficiencies, liabilities or causes of action of any kind or nature (including, without limitation, reasonable attorneys' fees and other costs and expenses of defense) are not based upon, arising out of or otherwise relating to UABRF, or the Other Owners, and/or their Representative(s)'s gross negligence or willful misconduct.

 

ARTICLE 12

MISCELLANEOUS

 

12.1Entire Agreement. This Agreement is the sole and entire agreement by and between the Parties regarding the subject matter set forth in this Agreement, and this Agreement supersedes all prior agreements and understandings with respect thereto. All previous negotiations, statements and preliminary instruments by the Parties with respect to the subject matter hereof are superseded by this Agreement.

 

12.2No Inducement. Each Party hereby acknowledges that in executing this Agreement, such Party has not been induced, persuaded or motivated by any promise or representation made by any other Party, unless expressly set forth in this Agreement.

 

12.3Independent Contractors. The relationship between the Parties is that of independent contractors. No Party has the authority to bind or act on behalf of the other Party without obtaining such other Party's prior written consent. The Parties do not intend to create an employer/employee relationship.

12.4No Third Party Beneficiaries. This Agreement is entered into by and among the Parties for the exclusive benefit of the Parties and their successors and permitted assignees. This Agreement is expressly not intended for the benefit of any creditor of a Party, or any other person. Except and only to the extent provided by applicable statute, no such creditor or Third Party shall have any rights under this Agreement or any other agreement between the Parties.

 

12.5Assignment. Neither Party shall sell, assign, transfer or otherwise dispose of this Agreement including by operation of law to a Third Party without the prior written consent of the other, which consent shall not be unreasonably withheld, conditioned or delayed; provided, however, that either Party may assign this Agreement to a Third Party that acquires, by merger, 

 

19

 

sale of assets or otherwise, all or substantially all of the business of the assigning Party to which the subject matter of this Agreement relates without the prior written consent of the other Party. Any attempted assignment of this Agreement not in compliance with the terms of this subsection will be null and void. No assignment will relieve any Party of the performance of any accrued obligation that such Party may then have pursuant to this Agreement.

 

12.6Amendments. Any and all modifications to this Agreement shall only be effective and binding if in writing and signed by a duly authorized representative of each Party.

 

12.7Notices. Any notice, request, approval or consent required to be given under this Agreement will be sufficiently given if in writing and delivered to a Party in person, by recognized overnight courier or mailed in the United States Postal Service, postage prepaid to the address appearing below such Party's signature on the last page of this Agreement, or at such other address as each Party so designates in accordance with these criteria. Notice shall be deemed effective upon receipt if delivered in person or by overnight courier or five (5) business days after mailing with the United States Postal Service.

 

12.8Disputes.

	
 
	
(a)
	
Equitable Relief Either Party may seek equitable and legal relief in the event of a breach or threatened breach by the other Party of its obligations under this Agreement, without the requirement to post a bond.

	
 
	
(b)
	
Internal Resolution. In the event of any dispute arising out of or relating to this Agreement or to a breach thereof, including its interpretation, performance or termination, the Parties shall try to settle such conflicts amicably between themselves. In the event that the conflict is not resolved within [**] after one Party notifies the other Party in writing concerning a dispute or conflict, then the dispute or conflict shall be referred to executive officers of each Party involved for resolving by negotiation in good faith as soon as practicable but no later than [**] after its referral.

	
 
	
(c)
	
Mediation. In the event the Parties are still unable to resolve the dispute or conflict by negotiation, the dispute or conflict may then be submitted by a Party to a mediator, mutually agreed to by the Parties, for nonbinding mediation. The Parties shall cooperate with the mediator in an effort to resolve such dispute.

	
 
	
(d)
	
Arbitration. If the dispute is not resolved within [**] of its submission to the mediator, either Party may submit the dispute for binding arbitration. The arbitration shall be conducted by three (3) arbitrators, one to be appointed by UABRF, one to be appointed by the Licensee and the third to be appointed by the other two arbitrators. The arbitration shall be conducted in accordance with the commercial rules of the American Arbitration Association, which shall administer the arbitration. The arbitration, including the rendering of the award, shall take place in Birmingham, Alabama and shall be the exclusive forum for resolving such dispute. The decision of the arbitrators shall be final and binding upon the Parties and the expense of the arbitration, including, without limitation, the award of attorneys' fees to the prevailing Party, shall be paid as the arbitrators determine.

 

12.9Rights and Remedies. The rights and remedies provided by this Agreement are cumulative, and the use of any one right or remedy by any Party shall not preclude or waive the right to use any or all other remedies.   Such rights and remedies are given in addition to any other rights the 

 

20

 

Parties may have by law, statute, ordinance or otherwise.

 

12.10Waiver. No waiver of a provision, breach or default shall apply to any other provision or subsequent breach or default or be deemed continuous, nor will any single or partial exercise of a right or power preclude any other further exercise of any rights or remedies provided by law or equity.

 

12.11Severability. In the event that any covenant, condition, or other provision contained in this Agreement is determined to be invalid, void or illegal, such covenant, condition or other provision shall be deemed deleted from the Agreement and shall not affect the validity of the remaining provisions of this Agreement.

 

12.12Force Majeure. Neither Party shall be liable for any failure to perform as required by this Agreement to the extent such failure to perform is due to circumstances reasonably beyond such Party's control, including, without limitation, labor disturbances or labor disputes of any kind; accidents; acts, omissions or delays in acting by any Governmental Authority; civil disorders; insurrections; riots; war; acts of war (whether war be declared or not); terrorism; acts of aggression; acts of God; fire; floods; earthquakes; natural disasters; energy or other conservation measures imposed by law or regulation; explosions; failure of utilities; mechanical breakdowns; material shortages; disease or other such occurrences; provided that the affected Party uses reasonable efforts to overcome or avoid the effects of such cause and continues to perform its obligations to the extent possible.

 

12.13Survivability. All rights and obligations of the Parties which by intent or meaning have validity beyond or by their nature apply or are to be performed or exercised after the termination or expiration of this Agreement shall survive the termination or expiration of this Agreement for the period so specified, if any, or for perpetuity.

 

12.14Jurisdiction. The Licensee consents to the personal jurisdiction of the federal and state courts located in the State of Alabama with respect to all claims or other causes of action arising out of this Agreement.

 

12.15Interpretation. Whenever used in this Agreement and when required by the context, the singular number shall include the plural and the plural the singular.   Pronouns of one gender shall include all genders, masculine, feminine and neuter.

 

12.16Captions.  The captions as to contents of particular sections or paragraphs contained in this Agreement are inserted for convenience and are in no way to be construed as part of this Agreement or as a limitation on the scope of the particular sections or paragraphs to which they refer.

 

12.17Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an original but all of which shall constitute one and the same instrument.

 

[The remainder of this page intentionally left blank]

 

 

21

 

 

 

IN WITNESS WHEREOF, the Licensee and UABRF have each caused its duly authorized representative to execute this Agreement, effective as of the Effective Date.

 

						
	
UABRF

The UAB Research Foundation
	
 
	
THE LICENSEE

Complexa, Inc.
	
 

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 

	
By:
	
/s/ David Winwood, Ph.D.
	
 
	
By:
	
/s/ Joshua M. Tarnoff
	
 

	
Name:
	
David Winwood, Ph.D.
	
 
	
Name:
	
Joshua M. Tarnoff
	
 

	
Title:
	
CEO, UABRF
	
 
	
Title:
	
CEO, Complexa
	
 

	
 
	
 
	
 
	
 
	
 
	
 

	
Address for Notices
	
 
	
Address for Notices
	
 

	
The UAB Research Foundation

Attention:  The Chief Executive Officer

701 20th Street South, AB 770

Birmingham, Alabama 35233
	
 
	
Complexa, Inc.

100 Technology Drive

Suite 400

Pittsburgh, PA 15219
	
 

	
 
	
 
	
 
	
 

	
 
	
 
	
With a copy to:
	
 

	
 
	
 
	
Raymond A. Miller, Esq.

Pepper Hamilton LLP

Suite 500

500 Grant St.

Pittsburgh, PA 15219-2507
	
 

 

 

22imra-ex1011_711.htm

Exhibit 10.11

 

Certain identified information has been excluded from the exhibit because it is both (i) not
material and (ii) is the type of information that the registrant treats as private or confidential.
Double asterisks denote omissions.

 

NON-EXCLUSIVE LICENSE AGREEMENT

This Agreement is made and entered into as of May 27, 2021 (“Effective Date”), by and between the University of Pittsburgh – Of the Commonwealth System of Higher Education, a non-profit corporation, organized and existing under the laws of the Commonwealth of Pennsylvania, having an office at 1st Floor Gardner Steel Conference Center, 130 Thackeray Avenue, Pittsburgh, Pennsylvania 15260 (“University”), and Imara Inc. having its principal office at 116 Huntington Ave, Sixth Floor, Boston, MA 02116 (“Licensee”).  University and Licensee each may be referred to herein individually as a “Party” or collectively as the “Parties.”

WHEREAS, University is the owner by assignment from the inventors of certain Patent Rights (as defined below), including those entitled “Nitrated Fatty Acids for the treatment of Diabetes and Related Cardiovascular Diseases,” developed by Bruce Freeman and Francisco Schopfer of University faculty, and University has the right to grant licenses under such Patent Rights;

WHEREAS, University desires to have the Patent Rights utilized in the public interest;

WHEREAS, University and Complexa, Inc. (“Complexa”) entered into an Exclusive License Agreement, dated as of August 18, 2014 (the “Complexa License Agreement”), pursuant to which Complexa licensed from the University certain rights related to the Patent Rights;

WHEREAS, Complexa entered into an Assignment for the Benefit of Creditors under Delaware law, pursuant to which Complexa assigned all of its assets to Complexa (assignment for the benefit of creditors), LLC (the “Assignee”), a special purpose entity established to liquidate the assets of Complexa, compile claims, and distribute proceeds, if any, to creditors according to the priority established in under Delaware law;

WHEREAS, Licensee purchased certain assets from Assignee;

WHEREAS, for the avoidance of any doubt, each Party (on behalf of itself and its Affiliates) hereby acknowledges and agrees that the Complexa License Agreement (the 
“Complexa Agreement”) terminated in its entirety, effective as of November 20, 2020;

WHEREAS, Licensee has represented to University, to induce University to enter into this Agreement, that Licensee is experienced in the development, production, manufacture, marketing and sale of products and/or the use of similar products to the Licensed Technology and that Licensee shall exploit the Patent Rights so that public utilization results therefrom; and

WHEREAS, Licensee desires to obtain a non-exclusive license under the Patent Rights upon the terms and conditions hereinafter set forth.

NOW, THEREFORE, in consideration of the premises and the mutual covenants contained herein, the Parties hereto, intending to be legally bound, agree as follows:

 

ARTICLE 1 – DEFINITIONS

For purposes of this Agreement, the following words and phrases shall have the following meanings:

	
1.1
	
“Affiliate” shall mean, with respect to University, any clinical or research entity that is operated or managed as a facility under the UPMC Health System, whether or not owned by University and with respect to Imara, shall mean any entity over which it owns or controls more than 50% of the equity securities.

	
1.2
	
“Complexa Data” shall mean data related to the Compound that is Controlled by Licensee and that was acquired by Licensee directly from Complexa, Inc.

	
1.3
	
“Compound” shall mean CXA-10 (or IMR-261) the structure which is set forth in Exhibit B.

	
1.4
	
 “Control” or “Controlled” means with respect to any patent, possession of the ability (whether by sole or joint ownership, license or otherwise), other than pursuant to this Agreement, by a Party to grant, without violating the terms of any agreement with a Third Party, a license, access or other right in, to or under such patent.

	
1.5
	
“Covered” means, as to a compound or product and patent, that, in the absence of a license granted under, or ownership of, such patent, the making, using, keeping, selling, offering for sale or importation of such compound or product would infringe such patent or, as to a pending claim included in such patent, the making, using, keeping, selling, offering for sale or importation of such compound or product would infringe such patent if such pending claim were to issue in an issued patent without modification.

	
1.6
	
[**] shall mean [**] a Pennsylvania corporation with an address at [**].

	
1.7
	
“Field” shall mean use of the Compound for the treatment of hemoglobinopathies and use of the Compound for the treatment of asthma in the Denver clinical trial only. 

	
1.8
	
“Licensee IP” shall mean any and all intellectual property, including, without limitation, patents and/or patent applications, owned or Controlled by Licensee during the Term (other than the Patent Rights).

	
1.9
	
“Licensed Technology” shall mean any product or part thereof or service which includes the Compound in the Field and which is:

	
 
	
(a)
	
Covered by a Valid Claim in the country in which any such product or part thereof is made, used or sold or in which any such service is used or sold; or

	
 
	
(b)
	
Manufactured by using a process or is employed to practice a process which is Covered by a Valid Claim in the country in which any such process is used or in which such product or part thereof  or service is used or sold.

	
1.10
	
[Reserved].

 

2

 

		

	
1.11
	
“Net Sales” shall mean Licensee’s [**] for Licensed Technology sold by Licensee, its Affiliates or Sublicensees (other than the University of Colorado Denver) to Third Parties in the Territory, less the sum of the following:

[**].

	
1.12
	
“Non-Commercial Research and Education Purposes” shall mean use of the Patent Rights (including distribution of biological materials Covered by the Patent Rights) for academic research or other not-for-profit scholarly purposes which are undertaken at a non-profit or governmental institution that does not use the Patent Rights in the production or manufacture of products for sale or the performance of services for a fee. 

	
1.13
	
“Non-Royalty Sublicense Income” shall mean all non-royalty consideration, including, execution fees, maintenance fees and milestone fees received by Licensee from its Third Party sublicensees pursuant to any sublicense granted pursuant to this Agreement, but excluding any reimbursable expenses (e.g., government fees and taxes, intellectual property costs, etc.) paid by such sublicensee to Licensee.

	
1.14
	
“Patent Rights” shall mean University intellectual property described below that covers the Compound in the Field:

	
 
	
(a)
	
The United States patents and/or patent applications listed in Exhibit A;

	
 
	
(b)
	
Any non-provisional United States patent applications that claim priority to any provisional patent application listed in Exhibit A;

	
 
	
(c)
	
Any and all divisionals, continuations, reissues, re-examinations, renewals, substitutions, and extensions of the foregoing; and

	
 
	
(d)
	
Any and all patents issuing from the foregoing.

	
1.15
	
“Term” shall have the meaning set forth in Section 11.1.

	
1.16
	
“Territory” shall mean worldwide.

	
1.17
	
“Third Party” means any individual, partnership, corporation, limited liability company, joint venture or similar entity or organization, other than University, Licensee or their respective Affiliates.  

	
1.18
	
“Valid Claim” means a claim (a) of any issued, unexpired patent included in the Patent Rights, which has not, in the country of issuance, been donated to the public, disclaimed, held invalid or unenforceable by a court of competent jurisdiction in an unappealed or unappealable decision, or (b) of any patent application included in the Patent Rights, which has not, in the country in question, been cancelled, withdrawn, or abandoned. Notwithstanding the foregoing, a patent application pending for more than [**] will not be considered to have any Valid Claim for purposes of this Agreement unless and until a patent that meets the criteria set forth in clause (a) above with respect to such application issues.

 

3

 

ARTICLE 2 – GRANT

	
2.1
	
Subject to the terms and conditions of this Agreement, University hereby grants to Licensee, to the extent it may lawfully do so, a non-exclusive license under the Patent Rights to make, have made, manufacture, research, develop, use, sell, offer for sale and commercialize the Licensed Technology in the Field and in the Territory for the Term.  The license granted hereby is subject to the rights of the United States government, if any, as set forth in 35 U.S.C. §200, et seq.  Licensee, its Affiliates and sublicensees shall not practice the Patent Rights outside of the Field.

	
2.2
	
University reserves the royalty-free, non-exclusive right to practice under the Patent Rights and to use the Licensed Technology for its own Non-Commercial Research and Education Purposes.

	
2.3
	
Licensee may grant sublicenses of any rights granted to it under this Agreement through multiple tiers of sublicenses to one or more sublicensees with the prior written consent of University, such consent not to be unreasonably withheld. Licensee agrees that any sublicense granted by it to a third party shall be on terms not less stringent than the terms of this Agreement and provide that the sublicensee shall comply with all applicable terms of this Agreement. Each sublicense granted by Licensee pursuant to this Agreement shall include an audit right by University of sublicensee of the same scope as provided in Article 6.2 with respect to Licensee. Licensee shall be fully responsible and liable for any acts or omissions of any Affiliate or sublicensee under such sublicense agreement as if such activities were conducted by Licensee.

	
2.4
	
Licensee agrees to forward to University a copy of any and all sublicense agreements promptly upon execution thereof, but in no event later than [**] after each such sublicense agreement has been executed by both parties thereto, provided however, such sublicense or amendment may be redacted with respect to the sublicensee’s scientific and technical information. 

	
2.5
	
The license granted hereunder shall not be construed to confer any rights upon Licensee by implication, estoppel or otherwise as to any intellectual property not specifically set forth herein.

ARTICLE 3 – DUE DILIGENCE

	
3.1
	
Licensee (acting directly or through one or more Affiliates or Sublicensees) shall use Commercially Reasonable Efforts to develop and obtain FDA approval for the Licensed Technology.

“Commercially Reasonable Efforts” shall mean:

[**].

	
3.2
	
Licensee shall notify University of the achievement of the milestones in Section 3.1 within [**] upon the achievement of the applicable milestone.

 

4

 

	
3.3
	
Licensee’s failure to perform in accordance with Section 3.1 hereof shall be grounds for University to terminate this Agreement and upon termination all rights and interest to the Patent Rights shall revert to University.

ARTICLE 4 – COVENANTS

	
4.1 
	
To the extent requested by [**], Licensee will consider in good faith the terms pursuant to which it would grant access to all or a portion of the Complexa Data to [**].  For clarity, this provision and Agreement shall not be construed to confer any rights upon [**] or University by implication, estoppel or otherwise as to the Complexa Data and/or Licensee IP unless and until Licensee and [**] or University enter into a definitive agreement with respect to the Complexa Data and/or Licensee IP and after such point, such rights shall be limited to the extent of the rights granted under the definitive agreement.

ARTICLE 5 – LICENSE CONSIDERATION

	
5.1
	
In consideration of the rights, privileges and license granted by University hereunder, Licensee shall pay monetary consideration as follows:

	
 
	
(a)
	
An initial one-time, nonrefundable license fee of Seven Thousand Five Dollars ($7,500) due immediately and payable within ten (10) business days from the Effective Date of this Agreement;

	
 
	
(b)
	
An annual maintenance fee in the amount of [**], with the first annual maintenance fee due on the first anniversary of the Effective Date, and unless this Agreement is earlier terminated in accordance with its terms, each additional maintenance fee shall be due on each subsequent anniversary of the Effective Date during the Term.

	
 
	
(c)
	
Royalties during the Term in an amount equal to [**] of aggregate Net Sales due each calendar quarter within [**] of delivery of the report set forth in Section 6.1.

	
 
	
(d)
	
Beginning with the first commercial sale of Licensed Technology by Licensee, its Affiliates or Sublicensees to Third Parties, minimum annual royalty of  [**] but only to the extent such minimum royalty is greater than the aggregate annual royalty computed in accordance with Section 5.1(c) above.

	
 
	
(e)
	
A share of Non-Royalty Sublicense Income equal to [**] of such Non-Royalty Sublicense Income.

	
 
	
(f)
	
Milestone payments shall be due and paid by Licensee to the University as follows:

[**].

 

These milestone payments are payable only once, regardless of the number of products for which the Licensed Technology achieves the relevant milestone.

 

	
5.2
	
All payments pursuant to this Agreement shall be made by check or by wire transfer in United States dollars without deduction or exchange, collection or other charges and 

 

5

 

		
directed to the address or, in the case of wire transfer, to the bank, set forth in Article 12.  With respect to the milestone payments in Section 5.1(f), Licensee will provide University with written notice upon the achievement of the milestone within [**] after such achievement. Following receipt of such written notice, University will promptly invoice Licensee for the milestone and Licensee will make the appropriate milestone payment within [**] after receipt of such invoice. Non-Royalty Sublicense Income payments pursuant to Article 5.1(e) hereof shall by paid within [**] after receipt of payment by Licensee (or as applicable, its Affiliates) from sublicensee.

	
5.3
	
The balance of any payments due pursuant to this Agreement which are overdue shall bear interest, compounded monthly, calculated from the due date until payment is received at the rate of [**] per annum.  Payment of such interest by Licensee shall not waive the University’s right to seek any other remedy, legal or equitable, to which it may be entitled because of the delinquency of any payment, including, but not limited to, termination of this Agreement as set forth in Article 11.  In addition, Licensee shall reimburse University for any costs and expenses incurred in connection with collecting any overdue balance of payments from Licensee with respect to its payment obligations under this Agreement, including the costs of engaging counsel or a collection agency for such purpose.

	
5.4
	
Taxes imposed by any foreign governmental agency on any payment to be made to University by Licensee shall be paid by Licensee without deduction from any payment due to University hereunder.

	
5.5
	
Licensee shall sell products and/or services resulting from Licensed Technology to University and its Affiliates at such price(s) and on such terms and conditions as such products and/or services are made available to Licensee’s most favored customer.

ARTICLE 6 – REPORTS AND AUDIT

	
6.1
	
Within thirty [**]  after each March 31, June 30, September 30 and December 31 of each year during the term of this Agreement beginning in the year of first commercial sale of Licensed Technology, Licensee shall deliver to University true, accurate and detailed reports of the following information in substantially the form as illustrated in Exhibit D:

	
 
	
(a)
	
Number of Licensed Technology products manufactured and sold by Licensee and all sublicensees;

	
 
	
(b)
	
Total billings for all such products;

	
 
	
(c)
	
Accounting for all Licensed Technology services used or sold by Licensee and all sublicensees;

	
 
	
(d)
	
Deductions set forth in Section 1.11; and 

	
 
	
(e)
	
Total royalties due

	
 
	
(f)
	
Name and address of sublicensees; and

 

6

 

	
 
		

	
 
	
(g)
	
Total Non-Royalty Sublicense Income received during such calendar quarter and total amounts of payment due pursuant to Article 5.1 (e).

	
6.2
	
Licensee shall keep full, true and accurate books of account, in accordance with generally accepted accounting principles, containing all information that may be necessary for the purpose of showing the amounts payable to University hereunder.  Such books of account shall be kept at Licensee’s principal place of business.  The relevant portions of such books of account shall be open to the University at all reasonable times for [**] following the end of the calendar year to which they pertain, and for [**] after the expiration or termination of this Agreement, for inspection by University or its agents for the purpose of verifying Licensee’s royalty statement.  The fees and expenses of University’s representatives performing any such audit shall be borne by University, however, if an error of more than [**] of the total payments due or owing for any calendar year is discovered, then Licensee shall bear the University’s fees and expenses. 

	
6.3   
	
No later than [**] after December 31 of each calendar year during the Term (beginning with the year ending December 31, 2021), Licensee shall provide to University a written annual progress report, in substantially the form as illustrated in Exhibit C, describing progress of Licensee, it’s Affiliates and sublicensees on research and development, regulatory approvals, manufacturing, sublicensing, marketing and sales during the preceding twelve-month period ending December 31.

	
6.4  
	
Notwithstanding the above, University shall have the right, [**] during the term of this Agreement, to inspect the applicable technical and other information from Licensee sufficient to evidence whether and to what extent Licensee is meeting its diligence obligations under Article 3 above. The fees and expenses of University’s representatives performing any such inspection shall be borne by University.

	
6.5
	
Licensee shall report to the University the date of the first commercial sale of a Licensed Technology within [**] of occurrence in each country with a Valid Claim.

ARTICLE 7 – PATENT PROSECUTION AND INFRINGEMENT ACTIONS

	

	

	
7.1
	
As between the Parties, University will control the prosecution and maintenance of the Patent Rights during the Term.  In the event University desires to abandon all or a portion of the Patent Rights, University shall provide Licensee with written notice thereof, which notice shall be provided to Licensee at least [**] before the date such abandonment would become effective. In the event University desires to cease paying maintenance fees for any of the Patent Rights in any country, University shall provide Licensee with written notice thereof, which notice shall be provided to Licensee at least [**] before the maintenance fees in question are due.  In such event, Licensee shall have the right, but not the obligation, to pay any such maintenance fees on behalf of University.

	
7.2
	
In any infringement suit University may institute to enforce the Patent Rights pursuant to this Agreement, Licensee shall, at the request of University, provide reasonable cooperation and assistance to University in connection with University’s enforcement action.

 

7

 

	
7.3
	
Licensee shall be responsible for [**] of all fees and costs, including attorneys’ fees, relating to the filing, prosecution maintenance, and post-grant proceedings relating to the Patent Rights (collectively, the “Patent Costs”) during the Term. Licensee’s share of Patent Costs shall be paid by Licensee within [**] after receipt of University’s invoice therefor, which invoice shall contain reasonable documentary support for the amounts being invoice to Licensee.  Additionally, Licensee shall be liable to University for its share of Patent Costs that are taken by patent counsel after the term of this Agreement but in response to any instructions that were sent from University to patent counsel relating to the Patent Rights prior to the earlier of (i) Licensee providing notice of termination pursuant to Section 11.3 and (ii) expiration of the Term.  Payments pursuant to this Section 7.3 are not creditable against royalties or any other payment due to University under this Agreement.

ARTICLE 8 - CONFIDENTIALITY

	
8.1
	
University shall maintain in confidence all Confidential Information (as defined below) of Licensee and shall not use or disclose such Confidential Information, except as expressly authorized by this Agreement. "Confidential Information" shall mean (i) the terms and existence of this Agreement, (ii) all information and reports due to University under Article 6 which are disclosed in writing and marked "Confidential" and (iii) all information of Licensee reviewed by University in the course of conducting an audit or inspection under Article 6 hereof. For the avoidance of doubt, Licensee may disclose the terms of this Agreement to the extent necessary to accountants, banks, investors and financing sources and their respective advisors and to any third party (and its affiliates, accountants, bankers, investors and advisors) in connection with a proposed merger, acquisition, licensing, collaboration or similar transaction.

	
8.2
	
 The Confidentiality set forth above shall not apply to any information to the extent that (a) the University can show by written record that it possessed the information prior to its receipt from Licensee; (b) the information was, at the time of disclosure, available to the public or became so through no fault of the University; or (c) the information is subsequently disclosed to the University free of any obligations of confidentiality by a third party that has the right to disclose it. Notwithstanding any other provisions of this Article 8, the University may disclose Confidential Information of Licensee (i) on a need-to-know basis and in connection with University's performance or its obligations and/or exercise of its rights under this Agreement to its Affiliates, employees, consultants, or agents provided that such individuals or entities are bound by non-disclosure and non-use obligations at least equivalent in scope to those set forth in this Article 8; (ii) in confidence to its trustees, directors and professional advisors who are bound by non-disclosure and non-use obligations at least equivalent in scope to those set forth in this Article 8; and (iii) to the extent that such disclosure is required by a court order, or in order to comply with applicable laws or regulations, but provided that University will, except where impracticable, give reasonable advance notice to Licensee of such required disclosure and use efforts to secure, or to assist the other party in securing, a protective order relating to, or confidential treatment of such information.

ARTICLE 9 – INDEMNIFICATION/INSURANCE/LIMITATION OF LIABILITY

 

8

 

	

	

	
9.1
	
Licensee shall at all times during the Term and thereafter indemnify, defend and hold University, its trustees, officers, faculty members, employees and Affiliates (“Indemnified Parties”) harmless against any liability, loss, damage or expense (including reasonable attorneys’ fees and expenses), that the Indemnified Parties may incur or otherwise be required to pay to one or more Third Parties in connection with any Third Party suit, investigation, claim or demand resulting from or arising out of (i) any claims arising out of the research, development, manufacture, commercialization or use of the Licensed Technology (or practice of the Patent Rights) by, on behalf of, or under the authority of, Licensee or any of its sublicensees, (ii) the breach by Licensee of this Agreement, or (iii) the negligence or willful misconduct by or on behalf of Licensee or any of its sublicensees, except, in each case, to the extent such claims are caused by (as finally determined by a court of competent jurisdiction) the material breach by University of this Agreement or the gross negligence or willful misconduct of University.

	
9.2
	
If any proceeding is instituted against University with respect to which indemnity may be sought pursuant to Section 9.1, University will give prompt written notice of the indemnity claim to Licensee and provide Licensee with a copy of any complaint, summons or other written notice that University receives in connection with any such claim. Licensee shall have the right to control any litigation relating to such claim and the disposition of such claim by negotiated settlement or otherwise. Licensee will act reasonably and in good faith with respect to all matters relating to such claim and will not settle or otherwise resolve such claim without University’s prior written consent, which will not be unreasonably withheld, conditioned or delayed; provided that such consent will not be required with respect to any settlement involving only the payment of monetary awards for which Licensee will be fully responsible. University will reasonably cooperate with Licensee in the Licensee’s defense of any claim for which indemnity is sought under this Agreement, at Licensee’s cost and expense.

	
9.3
	
During the Term, Licensee shall obtain and carry in full force and effect liability insurance which shall protect Licensee and University in regard to events covered by Section 9.1 above, as provided below:

 

 

 

9

Certain portions of this exhibit have been omitted because they are not material and is the type of information that the registrant treats as private or confidential.

 

	
 
	
(a)
	
Commercial General Liability

	
 
	
a.
	
Coverage:  Commercial General Liability, including, but not limited to, Products, Contractual, Fire, Legal and Personal Injury

	
 
	
b.
	
Limits:  [**]

	
 
	
(b)
	
Products Liability

	
 
	
a.
	
Coverage:  Products Liability

	
 
	
b.
	
Limits:  [**]

 

The University of Pittsburgh is to be named as an additional insured with respect to insurance policies identified in Sections 9.3(a) and 9.3(b) above.  Certificates of insurance evidencing the coverage required above shall be filed with University’s Innovation Institute, 1st Floor Gardner Steel Conference Center, 130 Thackeray Avenue, Pittsburgh, PA  15260, within [**] from the Effective Date of this Agreement and on or before July 1 of each subsequent year during the Term of this Agreement.  Such certificates shall provide that the insurer will give University not less than [**] advance written notice of any cancellation of coverage or change in coverage that would result in Licensee no longer satisfying the coverage required herein. 

	
9.4
	
University, AND ITS AGENTS AND/OR EMPLOYEES, MAKE NO REPRESENTATION AND EXTEND NO WARRANTIES OF ANY KIND, EITHER EXPRESS OR IMPLIED, INCLUDING BUT NOT LIMITED TO WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, AND VALIDITY OF Patent Rights CLAIMS, ISSUED OR PENDING.  NOTHING IN THIS AGREEMENT SHALL BE CONSTRUED AS A REPRESENTATION OR WARRANTY THAT THE PRACTICE BY Licensee OF THE LICENSE GRANTED HEREUNDER SHALL NOT INFRINGE THE Patent Rights OF ANY THIRD PARTY.  EXCEPT FOR (A) THIRD PARTY CLAIMS THAT ARE SUBJECT TO INDEMNIFICATION UNDER ARTICLE 9, OR (B) CLAIMS ARISING OUT OF A PARTY’S WILLFUL MISCONDUCT NEITHER PARTY WILL BE LIABLE TO THE OTHER PARTY IN CONNECTION WITH THIS AGREEMENT FOR ANY INDIRECT, SPECIAL AND CONSEQUENTIAL DAMAGES, (EVEN IF SUCH PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES.  Licensee ASSUMES ALL RESPONSIBILITY AND LIABILITY FOR LOSS OR DAMAGE CAUSED BY THE MANUFACTURE, USE OR SALE OF THE Licensed Technology.

ARTICLE 10 – ASSIGNMENT

This Agreement is not assignable be either Party without the prior written consent of the other Party, such consent not to be unreasonably withheld, and any attempt to do so shall be null and void.  In the event the University assigns or otherwise transfers any of the Patent Rights to a Third Party during the Term, any such assignment or transfer shall be made subject to the terms of this Agreement. 

ARTICLE 11 – TERM AND TERMINATION

	
11.1
	
Term.  Unless earlier terminated in accordance with Sections 11.2 or 11.3, this Agreement shall expire upon the expiration of the last Valid Claim (the “Term”). 

 

11.2University shall have the right to terminate this Agreement, upon written notice, if:

	
 
	
(a)
	
Licensee defaults in the performance of any of the obligations herein contained and such default has not been cured within [**] after receiving written notice thereof from University; 

	
 
	
(b)
	
The practice of the Patent Rights by Licensee is outside of the Field; or

	
 
	
(c)
	
Licensee ceases to carry out its business, becomes bankrupt or insolvent, applies for or consents to the appointment of a trustee, receiver or liquidator of its assets or seeks relief under any law for the aid of debtors.

	
11.3
	
Licensee may terminate this Agreement upon ninety (90) days prior written notice to University. Upon termination of this Agreement, neither Party shall be released from any obligation that accrued prior to the effective date of such termination. 

	
11.4
	
Section 5.1, Article 8, Section 9.1, Section 9.2, Article 10, Section 11.3, Section 11.4, Article 12 and Article 13 shall survive expiration or termination of this Agreement.  

ARTICLE 12 – NOTICES

	
12.1
	
Any notice or communication pursuant to this Agreement shall be sufficiently made or given if sent by certified or registered mail, postage prepaid, or by overnight carrier, with proof of delivery by receipt, addressed to the address below or as either Party shall designate by written notice to the other Party, or if in accordance with Section 12.3.

 

			
	
In the case of University:
	
 

	
 
	
 

	
 
	
Innovation Institute
	
 

	
 
	
University of Pittsburgh
	
 

	
 
	
1st Floor Gardner Steel Conference Center
	
 

	
 
	
130 Thackeray Avenue
	
 

	
 
	
Pittsburgh, PA  15260
	
 

	
 
	
ATTN: Director
	
 

	
 
	
Innovation Institute
	
 

	
 

	
In the case of Licensee:

	
 
	
 
	
 

	
 
	
Imara Inc.
	
 

	
 
	
116 Huntington Ave, Sixth Floor
	
 

	
 
	
Boston, MA 02116
	
 

	
 
	
Attention:  Legal Department
	
 

	
 
	
Email:  notices@imaratx.com
	
 

 

	
12.2
	
Any payments to University hereunder by wire transfer shall be directed as follows:

 

                                       [***]

 

11

 

 

The Licensee shall be responsible for all applicable fees and costs relating to any wire transfer, to include translation fees, without any deduction of such fees from amounts due to the University pursuant to this Agreement.

 

	
12.3
	
All invoices to Licensee generated by University under this Agreement will be sent electronically via e-mail and in PDF format to: ap@imaratx.com.

ARTICLE 13– MISCELLANEOUS

	
13.1
	
This Agreement may not be amended or modified except by the execution of a written instrument signed by the Director of the University of Pittsburgh Innovation Institute, his successor, or other designated University employee having signatory authority, and Licensee’s Chief Executive Officer or other designated Licensee employee having signatory authority.

	
13.2
	
This Agreement shall be construed and interpreted in accordance with the laws of the Commonwealth of Pennsylvania.  The forum for any action relating to this Agreement, including those brought against individuals such as University employees or agents, shall be the Courts of Allegheny County, Pennsylvania, or, if in a federal proceeding, the United States District Court for the Western District of Pennsylvania.

	
13.3
	
The Parties acknowledge that this Agreement and the Exhibits hereto set forth the entire understanding and intentions of the Parties (including their respective Affiliates) hereto as to the subject matter hereof and supersedes all previous representations, negotiations, or understandings between the Parties (including their respective Affiliates) and/or their respective employees or agents, whether written or oral, regarding the subject matter of this Agreement. As of the Effective Date, this Agreement supersedes the Complexa Agreement and neither party shall have any further rights or obligations to the other party under the Complexa Agreement.  

	
13.4
	
The Parties acknowledge that they consulted, or had the opportunity to investigate and/or consult, with their legal counsel and/or other advisors with respect to the Patent Rights and the terms of this Agreement. 

	
13.5
	
The Parties agree that this Agreement constitutes an arm’s length business transaction and does not create a fiduciary relationship. 

	
13.6
	
Nothing contained in this Agreement shall be construed as conferring upon either Party any right to use in advertising, publicity or other promotional activities any name, trade name, trademark, or other designation of the other Party, including any contraction, abbreviation, or simulation of any of the foregoing.  Without the express written approval of the other Party, neither party shall use any designation of the other party in any promotional activity associated with this Agreement.  Except as may be required by applicable law or regulations, neither Party shall issue any press release or make any public statement in regard to this Agreement without the prior written approval of the other Party.

 

12

 

	
 
	
13.7
	
Licensee agrees that with respect to the performance of this Agreement or the practice of the rights granted by the University hereunder, it shall comply with any and all applicable United States export control laws and regulations, as well as any and all embargoes and/or other restrictions imposed by the Treasury Department’s Office of Foreign Asset Controls.

	
 
	
13.8
	
Each Party agrees that in connection with this Agreement that it will abide by applicable laws and regulations.  Neither Party will offer, promise or give, directly or indirectly, anything of value to any government official, political party official, political candidate, or employee thereof or to any Third-Party while knowing that such item of value or any portion thereof may be offered, promised, or given to a government official, political party official, political candidate, or employee thereof for the purpose of obtaining or retaining business.  Each Party specifically agrees that in connection with this Agreement, it will take no action, or omit to take any action, which would cause the other Party to be in violation of the applicable laws of the United States, including the U.S. Foreign Corrupt Practices Act and/or any local laws regarding bribery as well as any US anti-boycott laws.  

	
 
	
13.9
	
If during the Term Licensee challenges the validity or enforceability of University’s Patent Rights or University’s ownership of the Patent Rights anywhere in the world, the Licensee shall continue to pay to University all royalties and other financial obligations required under this Agreement, to include Patent Costs, during the period while such challenge is pending.  If any such challenge is unsuccessful by Licensee, the royalty rates set forth in Article 5.1 above shall automatically double in value, to include all royalty minimums and floors; and Licensee shall reimburse the University for all fees and costs associated with defending such action, to include attorneys’ and expert fees.  The effective date of such increase in royalty rates shall be the date of the first court order or date of issuance of a re-examination certificate (or foreign equivalents thereof) declaring any claim of the Patent Rights as valid or enforceable.

	
13.10
	
If one or more of the provisions of this Agreement shall be held invalid, illegal or unenforceable, the remaining provisions shall not in any way be affected or impaired thereby.  In the event any provision is held illegal or unenforceable, the parties shall use reasonable efforts to substitute a valid, legal and enforceable provision which, insofar as is practical, implements purposes of the provision held invalid, illegal or unenforceable.

	
13.11
	
Failure at any time to require performance of any of the provisions herein shall not waive or diminish a Party’s right thereafter to demand compliance therewith or with any other provision.  Waiver of any default shall not waive any other default.  A Party shall not be deemed to have waived any rights hereunder unless such waiver is in writing and signed by a duly authorized officer of the Party making such waiver. 

 

[remainder of page intentionally left blank]

 

13

 

IN WITNESS WHEREOF, the parties represent and warrant that each has the authority to bind the Party to this Agreement and have set their hands and seals as of the date set forth on the first page hereof.

 

	
University OF PITTSBURGH – OF THE COMMONWEALTH SYSTEM OF HIGHER EDUCATION

	
 
	
 

	
 
	
 

	
By
	
/s/ Evan Facher, Ph.D., MBA

	
Evan Facher, Ph.D., MBA

	
Director, Innovation Institute

	
Vice Chancellor for Innovation and Entrepreneurship

	
 
	
 

	
 
	
 

	
 
	
 

	
IMARA INC.

	
 
	
 

	
 
	
 

	
 
	
 

	
By
	
/s/ Rahul Ballal, Ph.D.

	
Rahul Ballal, Ph.D.

	
President and Chief Executive Officer

 

 

14

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