Document:

exv10w1

 

Exhibit 10.1

SECOND AMENDMENT TO

REAL ESTATE PURCHASE AND SALE AGREEMENT

     THIS SECOND AMENDMENT TO REAL ESTATE PURCHASE AND SALE AGREEMENT (this “Amendment”) is
entered into as of April 3, 2007 by and among SP-K Development, LLC, SP-B1 Development, LLC, SP-A
Development, LLC, SP-B2 Development, LLC, SP-D Development, LLC, SP-E Development, LLC, SP-J
Development, LLC, 110 Munson Street, LLC, SP-C Development, LLC and Lyme Properties LLC, each a
Delaware limited liability company, and collectively, the “Seller” and BioMed Realty, L.P., a
Maryland limited partnership (the “Purchaser”), having an office at 17140 Bernardo Center
Drive, Suite 222, San Diego, California 92128, with a facsimile number of (858) 485-9843. The
Seller has an office c/o Lyme Properties LLC, 101 Main Street, 18th floor, Cambridge, MA
02142 Attn: Robert L. Green, with a facsimile number of (617) 225-2133.

     The parties desire to make certain amendments to a certain Real Estate Purchase and Sale
Agreement entered into by them with an Effective Date of January 29, 2007, as amended by an
amendment dated February 16, 2007 (the “P&S”).

     Capitalized terms used but not otherwise defined herein shall have the meanings given such
terms in the P&S.

     In consideration of the mutual promises hereinafter set forth and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the undersigned agree
as follows:

     1. Definition of Real Property. The definition of Real Property in the P&S is hereby
amended by modifying the last sentence of such definition to read as follows:

“Exhibit A respectively describes the following: Tract K, Tract B-1, Tract
J and 110 Munson.”

     2. Section 2.2. Section 2.2(a) of the P&S is hereby amended by amending and restating
such Section as follows:

     “Section 2.2 Purchase Price. (a) The purchase price for the
Property shall be the sum of Twenty-one Million Dollars ($21,000,000.00)
(the “Purchase Price”); provided, however, that if the Closing is for any
reason not intentionally caused by Seller delayed beyond 10:00 a.m. EST on
April 4, 2007, the Purchase Price shall increase by Two Hundred Fifty
Thousand Dollars ($250,000), and shall likewise be increased by such amount
for each additional day of delay at such time on each day

 

 

thereafter. Subject to adjustments and apportionments set forth in this
Agreement, the Purchase Price shall be paid on the Closing Date by wire
transfer of immediately available federal funds to such account(s) of Seller
as Seller designates in writing to Purchaser.”

     3. Section 6.1(e). Section 6.1(e) is hereby amended by amending and restating such
Section in its entirety as follows:

     “Purchaser shall have received from Science Park Development Corporation and
Olin Corporation respectively a “TDA Consent” substantially in the forms attached as
Schedule 6.1(e), dated no earlier than the Effective Date.”

     4. Section 6.1(f) and Definitions. Section 6.1(f) of the P&S is hereby deleted in its
entirety. The P&S is hereby further amended by deleting the phrases ARDA Consent, ARDA Estoppel
Provisions and ARDA Party in all instances where they appear in the P&S.

     5. Section 6.1. Section 6.1 of the P&S is hereby amended by adding a new clause
6.1(o) as follows:

“Seller shall have delivered to Buyer a written acknowledgement, in form
attached as Schedule 6.1(o), from Science Park Development Corporation
acknowledging that (1) all conditions precedent to the effectiveness of the
consent set forth in that certain letter dated April 2, 2007 from David
Silverstone to David E. Clem have been satisfied in full, and (2) the ARDA
shall have been terminated (“SPDC Closing Letter”).”

     6. Section 6.2. Section 6.2(c) is hereby deleted and Section 6.2(d) of the P&S is
hereby amended by replacing such Section with the following:

“Purchaser shall have delivered to Science Park Development Corporation
letters of credit as security for Ground Leases in the amounts of $25,000
for Tract B-1 and $27,908 for Tract J.”

     7. Section 8.2. Section 8.2 of the P&S is hereby amended, first, by deleting Section
8.2(i) in its entirety and replacing it with the following: “The SPDC Closing Letter,” and second,
by adding Appendices A and B attached hereto as deliveries required from Seller (and Purchaser as
appropriate) at Closing.

     8. Exhibits A. The P&S is hereby amended by deleting Exhibit A in its entirety and
replacing it with Exhibit A attached hereto.

     9. Schedule 6.1(d). The P&S is hereby amended by deleting Schedule 6.1(d) in its
entirety and replacing it with Schedule 6.1(d) attached hereto.

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     10. Schedule 6.1(e). The P&S is hereby amended by deleting Schedule 6.1(e) in its
entirety and replacing it with Schedule 6.1(e) attached hereto.

     11. Schedule 6.1(f). The P&S is hereby amended by deleting Schedule 6.1(f) in its
entirety.

     12. Schedule 6.1(o). The P&S is hereby amended by adding Schedule 6.1(o) attached
hereto.

     13. Schedule 7.2(b)(iv)-1. The P&S is hereby amended by deleting Schedule
7.2(b)(iv)-1 in its entirety and replacing it with 7.2(b)(iv)-1 attached hereto.

     14. Schedule 7.2(b)(iv)-3. The P&S is hereby amended by deleting Schedule
7.2(b)(iv)-3 in its entirety and replacing it with 7.2(b)(iv)-3 attached hereto.

     15. Schedule 7.2(b)(iv)-2. The P&S is hereby amended by deleting from Schedule
7.2(b)(iv)-2 the Miscellaneous Consultant Agreement for William A. Berry & Sons, Inc. dated May 29,
2006 (abatement and demolition).

     16. Schedule 8.2(b). The P&S is hereby amended by deleting Schedule 8.2(b) in its
entirety and replacing it with Schedule 8.2(b) attached hereto. A certain Exhibit C at the end of
Schedule 8.2(b) shall be Exhibit C to Schedule 8.2(b).

     17. Schedule 8.2(e). The P&S is hereby amended by deleting Schedule 8.2(e) in its
entirety and replacing it with Schedule 8.2(e) attached hereto.

     18. Ratification. Upon the execution of this Amendment by Seller and Purchaser, the
P&S (including, without limitation, the Updates distributed to Purchaser on February 13, 2007), as
amended hereby, shall be ratified and confirmed.

[Remainder of Page Left Intentionally Blank]

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     IN WITNESS WHEREOF, Seller and Purchaser hereto have executed this Amendment as of the date
first written above.

	 	 	 	 	 
	 	SELLER:

SP-K DEVELOPMENT, LLC, a Delaware limited liability company

 	 
	 	By:  	Lyme Properties LLC, a New Hampshire limited liability company, its sole Manager
 	 
	 	 	 	 
	 	 	 	 
	 
	 	 	 
	 	By:  	
/s/ GEORGE LIGHTBODY
 	 
	 	 	Name:  	George Lightbody 	 
	 	 	Its:  	CFO	 
	 	 	Date:  	4/3, 2007	 
	 

	 	 	 	 	 
	 	SP-B1 DEVELOPMENT, LLC, a Delaware limited liability company

 	 
	 	By:  	Lyme Properties LLC, a New Hampshire limited liability company, its sole Manager
 	 
	 	 	 	 
	 	 	 	 
	 
	 	 	 
	 	By:  	                                          /s/ GEORGE LIGHTBODY
 	 
	 	 	Name:  	George Lightbody 	 
	 	 	Its:  	CFO	 
	 	 	Date:  	4/3, 2007	 
	 

	 	 	 	 	 
	 	SP-A DEVELOPMENT, LLC, a Delaware limited liability company

 	 
	 	By:  	Lyme Properties LLC, a New Hampshire limited liability company, its sole Manager
 	 
	 	 	 	 
	 	 	 	 
	 
	 	 	 
	 	By:  	                                         /s/ GEORGE LIGHTBODY
 	 
	 	 	Name:  	George Lightbody 	 
	 	 	Its:  	CFO	 
	 	 	Date:  	4/3, 2007	 

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	 	SP-B2 DEVELOPMENT, LLC, a Delaware limited liability company

 	 
	 	By:  	Lyme Properties LLC, a New Hampshire limited liability company, its sole Manager
 	 
	 	 	 	 
	 	 	 	 
	 
	 	 	 
	 	By:  	                                         /s/ GEORGE LIGHTBODY
 	 
	 	 	Name:  	George Lightbody 	 
	 	 	Its:  	CFO	 
	 	 	Date:  	4/3, 2007	 
	 

	 	 	 	 	 
	 	SP-D DEVELOPMENT, LLC, a Delaware limited liability company

 	 
	 	By:  	Lyme Properties LLC, a New Hampshire limited liability company, its sole Manager
 	 
	 	 	 	 
	 	 	 	 
	 
	 	 	 
	 	By:  	                                         /s/ GEORGE LIGHTBODY
 	 
	 	 	Name:  	George Lightbody 	 
	 	 	Its:  	CFO	 
	 	 	Date:  	4/3, 2007	 
	 

	 	 	 	 	 
	 	SP-E DEVELOPMENT, LLC, a Delaware limited liability company

 	 
	 	By:  	Lyme Properties LLC, a New Hampshire limited liability company, its sole Manager
 	 
	 	 	 	 
	 	 	 	 
	 
	 	 	 
	 	By:  	
/s/ GEORGE LIGHTBODY
 	 
	 	 	Name:  	George Lightbody 	 
	 	 	Its:  	CFO	 
	 	 	Date:  	4/3, 2007	 

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	 	SP-J DEVELOPMENT, LLC, a Delaware limited liability company

 	 
	 	By:  	Lyme Properties LLC, a New Hampshire limited liability company, its sole Manager
 	 
	 	 	 	 
	 	 	 	 
	 
	 	 	 
	 	By:  	                                         /s/ GEORGE LIGHTBODY
 	 
	 	 	Name:  	George Lightbody 	 
	 	 	Its:  	CFO	 
	 	 	Date:  	4/3, 2007	 
	 
	 	110 MUNSON STREET, LLC, a Delaware limited liability company
 	 
	 
	 	 	 
	 	By:  	                                         Lyme Properties LLC, a New Hampshire limited liability company, its sole Manager
 	 
	 	 	 	 
	 	 	 	 
	 
	 	 	 
	 	By:  	
/s/ GEORGE LIGHTBODY
 	 
	 	 	Name:  	George Lightbody 	 
	 	 	Its:  	CFO	 
	 	 	Date:  	4/3, 2007	 
	 

	 	 	 	 	 
	 	SP-C DEVELOPMENT, LLC, a Delaware limited liability company

 	 
	 	By:  	Lyme Properties LLC, a New Hampshire limited liability company, its sole Manager
 	 
	 	 	 	 
	 	 	 	 
	 
	 	 	 
	 	By:  	                                         /s/ GEORGE LIGHTBODY
 	 
	 	 	Name:  	George Lightbody 	 
	 	 	Its:  	CFO	 
	 	 	Date:  	4/3, 2007	 

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	 	LYME PROPERTIES LLC, a New Hampshire limited liability company

 	 
	 	By:  	/s/ GEORGE LIGHTBODY
 	 
	 	 	Name:  	George Lightbody 	 
	 	 	Its:  	CFO	 
	 	 	Date:  	4/3, 2007	 
	 
	 	PURCHASER:

BIOMED REALTY, L.P.

 	 
	 	By:  	/s/ ALAN D. GOLD
 	 
	 	 	Name:  	Alan D. Gold 	 
	 	 	Title:  	CEO & President	 
	 	 	Date:  	
April 4, 2007	 
	 

7EX-10.1

 

Exhibit 10.1

NON-EXCLUSIVE LICENSE AND MATERIAL TRANSFER AGREEMENT

This Non-Exclusive License and Material Transfer Agreement (“Agreement”) is entered into with an
effective date as of March 30, 2007 (the “Effective Date”), by and between Astellas Pharma Inc., a
Japanese company with a principal place of business located at 2-3-11 Nihonbashi-Honcho, Chuo-ku,
Tokyo 103-8411, Japan (“Company”), and Regeneron Pharmaceuticals, Inc. (“Regeneron”), a New York
corporation, with a principal place of business located at 777 Old Saw Mill River Road, Tarrytown,
New York 10591-6707.

WITNESSETH

          WHEREAS, Regeneron has developed antibody technology, including genetically modified mice and
related know-how, useful to generate human monoclonal antibodies;

          WHEREAS, Regeneron owns certain patents and patent applications covering its human antibody
technology;

          WHEREAS, Company desires to obtain certain non-exclusive licenses under Regeneron Technology
(as defined below), including the right to commercialize Antibodies (as defined below) generated
from the Mice (as defined below), on the terms and conditions set forth herein;

          NOW, THEREFORE, in consideration of the premises and of the mutual promises and covenants
herein contained, Company and Regeneron agree as follows:

ARTICLE I

DEFINITIONS

          When used in this Agreement, each of the following terms shall have the meanings set forth in
this Article I:

          1.1 “Adjusted Annual Fee” shall mean twenty million United States dollars
(US$20,000,000) adjusted in accordance with the US CPI to reflect any increase in the US CPI from
the month and year of the Transfer Date until the month and year of the most recently reported US
CPI available on the fourth anniversary of the Transfer Date.

          1.2 “Affiliate” shall mean, with respect to a Person, any Person that controls, is
controlled by, or is under common control with such Person. For purposes of this Section 1.2,
”control” shall refer to (a) in the case of a Person that is a corporate entity, direct or
indirect ownership of fifty percent (50%) or more of the stock or shares having the right to vote
for the election of a majority of the directors of such Person or (b) in the case of a Person that
is an entity, whether or not he, she or it is a corporate entity, the possession, directly or
indirectly, of the power to direct, or cause the direction of, the management or policies of such
Person, whether through the ownership of voting securities, by contract or otherwise. 

          1.3 “Antibody” shall mean any antibody, or any derivative, or fragment thereof,
including any fusions comprising any such antibody, derivative or fragment, that has been
Derived from Mice and/or Mice Materials pursuant to this Agreement and any composition or
formulation that incorporates or includes any such antibody, derivative, fragment or fusion
molecule.

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          1.4 “Antibody Materials” shall mean *********************.

          1.5 “Applicable Law” shall mean all applicable laws, statutes, rules, regulations,
ordinances and other pronouncements having the effect of law of any court, tribunal, arbitrator,
agency, commission, official or other instrumentality of (a) any government of any country, (b) a
federal, state, province, county, city or other political subdivision thereof or (c) any
supranational body.

          1.6 “Approved Third Party” shall mean a Third Party approved by Regeneron pursuant to
Section 3.6.

          1.7 “Breeding Pair” shall mean one (1) male Mouse and one (1) female Mouse.

          1.8 “Company Know How” shall have the meaning set forth in Section 7.1(c).

          1.9 “Company Patent Rights” shall mean all Patent Rights owned or Controlled by
Company and/or its Affiliates, in each case, which claim any composition (or portion thereof) or
use of the Antibody, Antibody Materials, Subject Products or Company Know-How.

          1.10 “Company Technology” shall mean Company Patent Rights and Company Know-How.

          1.11 “Control” and cognates thereof shall mean the ability by a Person to grant
(whether directly or through its Affiliates) the right to access or use, or to grant a licence or a
sublicense to, or the right to disclose or transfer Regeneron Technology (including, without
limitation, Mice), Company Technology or other intellectual property right, or Confidential
Information, as the case may be, without violating the terms of any agreement or other arrangement
with, or the rights of, any Third Party.

          1.12 “Derived” and cognates thereof shall mean obtained, developed, acquired, made,
invented, discovered, created, synthesized, designed, or otherwise generated or resulting from.
For the avoidance of doubt, an antibody or antibody material shall not be deemed Derived from Mice
if Company only uses Company Know-How (other than DNA or amino acid sequence information) to derive
antibodies from sources other than Mice or Mice Materials.

          1.13 “Diagnostic Subject Product” shall mean each Subject Product approved and sold or
offered for sale for diagnostic use.

          1.14 “Distributor” shall mean a Third Party appointed to distribute, market and sell
the Subject Products in a country or region other than the United States, Canada, France, Germany,
Italy, Japan, Spain, or the United Kingdom, even if that Third Party is supplied Subject Products
in unpackaged bulk form; provided that such Third Party does not make any royalty or other payment
to Company or any of its Affiliates or Licensees with respect to the Subject Product or
intellectual property rights outside of the amounts included in the calculation of Net Sales (other
than a reasonable and customary up-front payment that is comparable to payments made by Company to
a Distributor for the distribution of its other products in the applicable country or region).

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          1.15 “Exploit” means to make, have made, import, use, sell, or offer for sale,
including to research, develop, register, modify, enhance, improve, manufacture, have manufactured,
hold/keep (whether for disposal or otherwise), formulate, optimise, have used, export, transport,
distribute, promote, market or have sold or otherwise dispose or offer to dispose of a product or
process and “Exploitation” shall be construed accordingly.

          1.16 “Launch” shall mean the first commercial sale of any Subject Product by Company
or its Affiliate or Licensee to a Third Party in a given country.

          1.17 “Licensee” shall mean any Third Party that licenses, either directly or through a
sublicense, a Subject Product from Company or any of its Affiliates. For the avoidance of doubt,
the term “Licensee” shall include any Third Party that licenses a Subject Product from a Licensee
but shall not include a Distributor.

          1.18 “Mice” shall mean (a) Regeneron’s proprietary, genetically modified mice that are
described in Exhibit A ******************* ***********************.

          1.19 “Mice Inventions” shall have the meaning set forth in Section 2.4.

          1.20 “Mice Materials” shall mean *************************************, but excluding
Antibodies and Antibody Materials.

          1.21 “Net Sales” shall mean the gross amounts invoiced by Company, Company’s
Affiliates and/or Licensees on sales of Subject Products, less the following items:

	 	(a)	 	trade, cash and quantity discounts actually allowed and taken
directly with respect to such sales;
	 
	 	(b)	 	tariffs, duties, excises and sales taxes imposed upon and paid
directly with respect to such sales (reduced by any refunds of such taxes
deducted in the calculation of Net Sales for prior periods and, for the
avoidance of doubt, no deduction shall be permitted for income or similar
taxes);
	 
	 	(c)	 	amounts repaid or credited by reason of rejections, defects,
recalls or returns or because of chargebacks, trial prescriptions or rebates;
	 
	 	(d)	 	invoiced amounts that are written off as uncollectible in
accordance with Company’s accounting policies, as consistently applied over all
products of Company, Company’s Affiliates and/or Licensees (reduced by any
collections of such amounts deducted in the calculation of Net Sales for prior
periods); and
	 
	 	(e)	 	as an allowance for transportation costs, distribution
expenses, special packaging and related insurance charges,
******* *****************.

The deductions set forth in clauses (a), (b), (c), (d) and (e) above shall be determined in
accordance with generally accepted accounting principles, as consistently applied by Company across
all of its

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products. The amounts set forth in clause (b) above shall only be deducted from gross invoiced
sales to the extent included in gross invoiced sales.

Transfers of Subject Products among Company and Company’s Affiliates and Licensees for the purpose
of subsequent resale to Third Parties shall not be counted for purposes of calculating Net Sales;
with respect to such transfers, the gross amounts invoiced in connection with the subsequent resale
of such Subject Products by Company or its Affiliates or Licensees to Third Parties shall be
included in the calculation of Net Sales.

For purposes of determining Net Sales, the Subject Product(s) shall be deemed to be sold when
invoiced and a “sale” shall not include transfers or dispositions made without financial
consideration for charitable, promotional, preclinical, clinical, regulatory or governmental
purposes.

As used in this paragraph, “Combination Products” means Subject Products that contain an Antibody
as an active ingredient together with one or more other active ingredients. With respect to
Combination Products, the Net Sales used for the calculation of the royalties under Section 4.2
will be adjusted by multiplying actual Net Sales of such Combination Product by the fraction A /
(A+B), where A is the standard sales price of the Subject Product, containing the same amount of
Antibody as its sole active ingredient as does the Combination Product in question, in the given
country, and B is the standard sales price of the ready-for-sale form of a product containing, as
its sole active ingredient(s) the same amount of the other therapeutically active ingredient(s)
that is contained in the Combination Product in question, in the given country. If, on a
country-by-country basis, the therapeutically active ingredient(s) in the Combination Product other
than the Subject Product are not sold separately in that country, Net Sales shall be adjusted by
multiplying actual Net Sales of such Combination Product by the fraction A / C, where C is the
standard sales price of the Combination Product in such country. If, on a country-by-country
basis, neither the Subject Product nor the other active ingredient(s) of the Combination Product is
sold separately in said country, Net Sales shall be determined between the Parties in good faith.

          1.22 “Party” shall mean Regeneron or Company; “Parties” shall mean Regeneron and
Company.

          1.23 “Patent Rights” shall mean all patents and patent applications (including
provisional patent applications and any continuations of any such patent applications, claims in
continuations-in-part to the extent such claims are entirely supported by the specifications of any
such patent applications, and any divisionals, provisionals or substitute applications with respect
to any such patent applications), any patent issued with respect to any such patent applications,
any reissue, reexamination, renewal or extension (including any supplemental patent certificate) of
any such patent, and any confirmation patent, registration patent, patent of addition, or
inventor’s certificate based on or directed to the same invention as any such patent, and all
patents and patent applications anywhere in the world that at any time, directly or indirectly,
claim priority from, support a claim of priority of or contain substantially identical disclosure
as any of the foregoing.

          1.24 “Person” shall mean any natural person or any corporation, company, partnership,
limited liability company, joint venture, firm or other entity, including without limitation a
Party.

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          1.25 “Progeny” shall mean any mice that are produced or developed by breeding or
otherwise reproducing Mice.

          1.26 “Regeneron Know-How” shall mean the trade secrets, unpatented technical
information, specifications, protocols, and procedures described or referred to in Exhibit
A and any unpatented Mice Inventions.

          1.27 “Regeneron Patent Rights” shall mean all Patent Rights owned or Controlled by
Regeneron and/or its Affiliates as at the Effective Date and, subject to Section 2.5, during the
term of this Agreement, in each case, which claim the Mice, Mice Materials or Mice Inventions or
the use of the Mice, Mice Materials or Mice Inventions to make Antibodies in general, including,
without limitation, the Patent Rights that are listed in Exhibit B. For the avoidance of
doubt, Regeneron Patent Rights shall not include (i) any Patent Rights claiming methods relating to
Antibody or Antibody Material generation that are not directly related to the Mice or Mice
Materials and (ii) any Patent Rights claiming the use of Mice or Mice Materials to make Antibodies
against any specific target.

          1.28 “Regeneron Technology” shall mean the Regeneron Know-How and Regeneron Patent
Rights including with respect to any Mice Invention.

          1.29 “Royalty Term” shall have the meaning set forth in Section 4.3.

          1.30 “SEC” shall mean the United States Securities and Exchange Commission.

          1.31 “Site” shall mean ********************************* and any site of a Company’s
Affiliate or Approved Third Party upon prior written notification of the address of such
facility(ies) to Regeneron.

          1.32 “Subject Product” shall mean any product (including, without limitation, any
therapeutic or diagnostic for human or veterinary use) that contains as an ingredient or component
an Antibody or Antibody Materials.

          1.33 “Therapeutic Subject Products” shall mean all Subject Products except for
Diagnostic Subject Products.

          1.34 “Third Party” shall mean any Person other than Regeneron, Company, or their
respective Affiliates.

          1.35 “Transfer Date” shall mean the date upon which the first delivery of Mice from
Regeneron are received by Company pursuant to Section 3.3 or ********************.

          1.36 “US CPI” shall mean the Consumer Price Index —Urban Wage Earners and Clerical
Workers, U.S. City Average, All Items, 1982-1984 = 100, published by the United States Department
of Labor, Bureau of Statistics (or its successor equivalent index) or such other index as may be
mutually agreed upon by the Parties.

          1.37 “Valid Claim” shall mean a claim which satisfies both of the conditions set forth
in (i) and (ii) below: (i) the relevant claim is either (a) a claim of an issued and unexpired
patent

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which has not been held permanently revoked, unenforceable or invalid by a decision of a court
or other governmental agency of competent jurisdiction, unappealable or unappealed within the time
allowed for appeal, and which has not been admitted to be invalid or unenforceable through re-issue
or disclaimer or otherwise or (b) a claim of a pending patent application which claim was filed in
good faith and which has not been pending for more than seven (7) years and that has not been
abandoned or finally rejected without the possibility of appeal or refilling, and (ii) the relevant
claim would be infringed by a Third Party if such Third Party Exploits a Subject Product.

ARTICLE II

LICENSE

          2.1 License Grant. Subject to the terms of this Agreement, Regeneron on behalf of
itself and its Affiliates hereby grants to Company a non-exclusive, worldwide license under the
Regeneron Technology:

    (a) to make Mice at the Site (but not to have Mice made other than by an Approved Third
Party) (i) solely by means of breeding Mice with other Mice in accordance with the breeding
practices outlined on Exhibit A as supplemented by disclosures made by Regeneron
pursuant to Section 3.1 and Section 3.2 and (ii) as specifically set forth in the last
sentence of Section 5.4;

    (b) to use Mice at the Site (but not to have Mice used other than by an Approved Third
Party) supplied by Regeneron or made by or for Company in accordance with (a) above to
Derive Mice Materials for the purpose of making or having made Antibodies and/or Antibody
Materials for internal research purposes, including for use in human clinical trials; and

    (c) to use Mice Materials at the Site (but not to have Mice Materials used other than
by an Approved Third Party) to Derive Antibodies and Antibody Materials.

          As of the Effective Date, Regeneron has no Affiliates that Control any Regeneron Technology.

          2.2 No Sublicense. Company shall not sublicense or otherwise transfer its rights
(except as specifically provided in Sections 3.6 and 10.1) granted under Regeneron Technology;
provided, however, that Company shall have the right to grant sublicenses under the licenses
granted pursuant to Section 2.1 to its Affiliates; provided, further, that Company shall ensure
that the terms of each such sublicense are consistent with the terms of this Agreement and that its
Affiliates shall not commit any act (including any act of omission) which Company is prohibited
from committing directly.

          2.3 No Implied Licenses. The grant of the license to Company under Regeneron
Technology set forth herein shall not constitute a grant of a license to Company under any Patent
Rights or know-how other than the Regeneron Technology.

          2.4 Mice Inventions. Company acknowledges and agrees that (a) the licenses granted to
it pursuant to Section 2.1 permit Company (and Affiliates and Approved Third Parties) to use the
Mice and Mice Materials solely for the purposes set forth therein, (b) neither Company nor any

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of its Affiliates shall use the Mice or Mice Materials other than for the purposes set forth
in Section 2.1, (c) Company has no right to use and shall not use the Mice or Mice Materials to
discover, develop or otherwise make improvements that directly relate to the Mice or Mice Materials
(“Mice Inventions”) under such grants except for inventions made in the ordinary course of using
the Mice and Mice Materials for the purpose of making (or having made) and using Antibodies and
Antibody Materials under the grants in Sections 2.1(a) through (c). For the avoidance of doubt,
Regeneron acknowledges that Mice Inventions shall not include Antibodies or Antibody Materials and
general methods relating to the generation of antibodies or antibody materials. Without limiting
any of Regeneron’s rights under this Agreement or otherwise, should Company make any Mice
Inventions, Company shall promptly disclose to Regeneron, in writing, any such Mice Inventions and
shall, and hereby does, assign, for itself and on behalf of its Affiliates, to Regeneron all right,
title, and interest it or they have in Mice Inventions without additional compensation. Company
agrees, for itself and on behalf of its Affiliates, to execute any and all further instruments,
forms of assignments and other documents, and to take such further actions as Regeneron may
request, in order to transfer all of Company’s (and/or its Affiliates) rights in the Mice
Inventions. Without limiting the foregoing, Regeneron shall have the right to prepare, file and
prosecute, in Regeneron’s name as assignee, patent applications on all Mice Inventions.

          2.5 New Regeneron Patent Rights.

If Regeneron acquires rights to additional intellectual property from a Third Party required by
Company for its use of the Mice or Regeneron Technology under this Agreement that requires no
payments to such Third Party and that permits Regeneron to include such intellectual property in
the scope of the license grants in Section 2.1 of this Agreement, such intellectual property shall
be included in this Agreement at no additional charge to Company. In the event that Regeneron
acquires rights to such additional intellectual property from a Third Party relating to the Mice or
Regeneron Technology pursuant to an agreement that requires payments to such Third Party and that
permits Regeneron to include such intellectual property in the scope of the license grants in
Section 2.1 of this Agreement, Regeneron and Company shall negotiate in good faith the terms under
which such intellectual property shall be included in this Agreement, including without limitation,
additional payments to be made by Company for the right to use such intellectual property. Such
additional payments (including, without limitation, pass through royalties) shall not exceed the
payments required to be made by Regeneron to such Third Party in consideration for Controlling and
sublicensing the intellectual property rights.
*****************************************************. In the event Regeneron and Company are
unable to agree on such terms, then the subject matter of such intellectual property shall not be
included within the definition of Regeneron Technology, and Company shall have no license or rights
with respect to such intellectual property.

          2.6 Prohibited Uses. Notwithstanding Section 2.1, Company agrees, for itself and on
behalf of its Affiliates, that it and they shall not Derive Mice, Mice Materials, Antibodies or
Antibody Materials for any Third Party as a contractor or service provider of such Third Party.

7

 

ARTICLE III

MATERIAL TRANSFER; OWNERSHIP OF MICE

          3.1 Technology Transfer. Subject to Section 3.5, Regeneron shall transfer to Company
the materials, including Regeneron Know-How and Mice, set forth on Exhibit A. Subject to
Section 8.1, all such Regeneron Know-How and Mice listed in Exhibit A shall be considered
Confidential Information. Other than the grant of license in Section 2.1, Regeneron retains all
right, title and interest in and to the Regeneron Technology, Mice, and Mice Materials described in
Exhibit A. Except as set forth in this Article III, Regeneron shall not have any
obligation to provide to Company any trade secrets, know-how, information, specifications,
protocols or procedures.

          3.2 Transition Support. The Parties agree to work diligently and in good faith to
complete the transfers set forth in Section 3.1 from Regeneron to Company as soon as reasonably
practicable. Regeneron, at its sole cost and expense, shall provide reasonable telephonic
assistance to Company to help identify and solve issues relating to unsuccessful breeding of Mice
(including ********************** ***********). At Company’s request and expense, upon reasonable
prior notice and at mutually convenient dates, Regeneron personnel shall
****************************to help identify and solve issues relating to unsuccessful breeding of
Mice at the Site designated by Company.

          3.3 Delivery Terms and Conditions. Regeneron shall be responsible for (a) making
arrangements for all Mice identified in Exhibit A to be shipped from Regeneron to Company
or any Approved Third Party; Regeneron shall take reasonable steps to ensure that all Mice shall be
free of any pathogen prior to shipment; (b) the proper packaging of Mice, such packaging to comply
with Applicable Law and Regeneron’s veterinary handling procedures and protocols; and (c) shipment
of all such Mice. All Mice identified in Exhibit A will be shipped ***************** to
such Sites as Company may designate from time to time (Incoterms 2000). The Mice to be shipped
promptly following the Effective Date pursuant to Section 1.35 shall be sent to the Site designated
by Company. Company shall be required to notify Regeneron of the Site for the delivery of Mice
pursuant to this Section 3.3 **********************. Company shall provide Regeneron with prompt
written notice of the date that is the Transfer Date. Company shall be responsible for (y) paying
all shipment and delivery charges and import or export duties in connection therewith and (z)
complying with all customs regulations and obtaining any and all permits, forms or permissions that
may be required for Company to accept shipment of such Mice from Regeneron.

          3.4 Failure to Produce Progeny. Company shall be responsible for establishing a
colony of Mice. *************************** **************************

          3.5 Ownership of Mice and Mice Materials; Assignment. Company agrees, for
itself and on behalf of its Affiliates, that Regeneron retains all right, title and interest in the
Mice and Mice Materials. Without limiting the foregoing, Company hereby assigns, for itself and on
behalf of its Affiliates, to Regeneron any right, title and interest it or they may have in Progeny
and Mice Materials. Company agrees, for itself and on behalf of its Affiliates, to execute any and
all further instruments, forms of assignments and other documents, and to take such further actions
as

8

 

Regeneron may reasonably request at Regeneron’s cost, in order to transfer all of Company’s
(and/or its Affiliates) rights, if any, in Mice (including, without limitation, Progeny) and Mice
Materials to Regeneron and on such transfer any such rights shall be included in Regeneron
Technology and subject to the licenses granted pursuant to Section 2.1. During the term of this
Agreement, it is agreed that (i) Company shall have the right to transfer the Mice and Mice
Materials to Sites solely for purposes of this Agreement, and (ii) Company, its Affiliates and
Approved Third Parties may use Mice (including, without limitation, Progeny) and Mice Materials
only in the manner contemplated by Section 2.1.

          3.6 Approved Third Party. Company may use Approved Third Party service providers (a)
to have Mice made solely by means of breeding Mice with other Mice in accordance with the terms of
the license grant in Section 2.1(a); and (b) to have Mice or Mice Materials made or used in
accordance with the license grants in Sections 2.1(b) and 2.1(c), in each case, under the following
conditions: (i) Regeneron shall within thirty (30) days of receiving written notice from the
Company of the identity of the relevant Third Party and such other information as Regeneron may
reasonably require to assess such appointment have notified Company in writing whether such Third
Party is approved or not (such approval not to be unreasonably withheld or delayed); and (ii) such
Third Party service provider shall have entered into a separate writing with Regeneron
substantially in the form annexed hereto as Exhibit C. Company shall remain responsible
for the performance of its Approved Third Party with the obligations of Company under this
Agreement and shall ensure that any such Approved Third Party does not commit any act (including
any act of omission) which Company is prohibited from committing directly and commits such acts as
Company is obligated to hereunder.

ARTICLE IV

PAYMENTS AND RECORDS

          4.1 Up-Front Fee/Annual Fees. Company shall pay Regeneron a non-refundable amount of
twenty million United States dollars (US$20,000,000) within seven (7) days of the execution of this
Agreement. In addition, Company shall pay Regeneron a non-refundable amount of twenty million
United States dollars (US$20,000,000) on each of the first, second, and third anniversaries of the
Transfer Date. Company shall pay to Regeneron the Adjusted Annual Fee on each of the fourth and
fifth anniversaries of the Transfer Date unless this Agreement shall have been terminated prior to
the fourth anniversary of the Transfer Date in accordance with Section 9.2. All payments to be
made pursuant to this Section 4.1 shall be made by bank wire transfer in immediately available
funds to an account designated by Regeneron.

          4.2 Royalties. Subject to Section 4.3, Company shall pay royalties to Regeneron on
aggregate worldwide Net Sales of all Subject Products sold during the Royalty Term.
**************************************************************. Payments due under this section
shall be due in each calendar quarter in arrears, and shall be paid no later than sixty (60) days
after the last business day of each such calendar quarter. An example of
*******************************is set forth on Schedule 4.2 for purposes of illustration.

          4.3 Royalty Term. The royalties payable under Section 4.2 shall be paid to Regeneron
for the period of time, as determined on a Subject Product by Subject Product and
country-by-country basis, commencing on the Effective Date and ending on the later of (a)

9

 

*************** after the Launch of a given Subject Product in a given country and (b) the
expiration of the last Valid Claim of Royalty Bearing Company Patent Rights claiming or covering
such Subject Product in such country (the “Royalty Term”). For the avoidance of doubt, the Royalty
Term may extend beyond the term of this Agreement. As used above, the term “Royalty Bearing
Company Patent Rights” shall mean with respect to an Antibody either (a) all issued patents in a
country owned or Controlled by Company and/or its Affiliates, in each case, which includes a Valid
Claim claiming the composition of such *********************, or (b) if a patent described in (a)
above never issues in a country, then the first issued patent in such country that is owned or
Controlled by Company and/or its Affiliate with a Valid Claim claiming *********************** or
any approved use of such an Antibody (*******************) in a country.

          4.4 Reports. Company shall keep and maintain, and shall cause its Affiliates and
Licensees to keep and maintain, records and books of account, in accordance with generally accepted
accounting practices, detailing full written accountings of Net Sales of Subject Products subject
to royalty obligations to Regeneron, and all other information necessary for the accurate
determination of royalty payments (including, without limitation, currency conversion rate
methodologies). Company shall deliver to Regeneron each calendar quarter commencing upon the first
calendar quarter following the first sale of a Subject Product, a report detailing the information
on which the royalty payments were calculated, including a breakdown of Net Sales of each Subject
Product on a country-by-country basis, which report shall accompany the royalty due under Section
4.2. Furthermore, for each Subject Product, Company shall notify Regeneron in writing promptly
following (a) the date on which Company first initiates a Phase 2 trial (as defined in 21 CFR
312.21(b), as amended from time to time) (or a Phase 3 trial (as defined in 21 CFR 312.21(c), as
amended from time to time), if no Phase 2 trial is conducted) of a Subject Product, and (b) each
receipt, on a country-by-country basis, by Company (or by any of its Affiliates or Licensees) of
regulatory approval to market and sell Subject Products.

          4.5 Records and Audits.

    (a) Company shall keep, and shall cause its Affiliates and Licensees to keep, complete
and accurate records of the latest three (3) years relating to gross sales, Net Sales, and
all information reasonably relevant under Sections 4.2 and 4.3. For the sole purpose of
verifying amounts payable to Regeneron, Regeneron shall have the right, no more than once
each calendar year, to review such records, through independent certified public accountants
proposed by Regeneron and reasonably acceptable to Company (such consent not to be
unreasonably withheld or delayed), upon fifteen (15) days’ prior written notice. The
accounting firm shall disclose to Regeneron and Company only whether the royalty reports are
correct and details concerning any discrepancies, but no other information shall be
disclosed to Regeneron.

    (b) If any review pursuant to Section 4.5(a) reflects an underpayment to Regeneron,
such underpayment shall be promptly remitted to Regeneron, together with interest calculated
in the manner provided in Section 4.8. If the underpayment is equal to or greater than five
percent (5%) of the amount that was otherwise due for any calendar quarter, Regeneron shall
be entitled to have Company pay all of the reasonable costs of

10

 

such review otherwise such costs will be paid by Regeneron. If the review reflects an
overpayment by Company, then, at Company’s option, such overpayment shall either be promptly
refunded to Company by Regeneron or creditable against amounts payable by Company in
subsequent payment periods.

          4.6 United States Dollars (or U.S.dollars). All dollar ($) amounts specified in this
Agreement are United States (U.S.) dollar amounts.

          4.7 Currency Exchange. With respect to sales of Subject Products invoiced in a
currency other than U.S. dollars and other amounts received by Company, Company’s Affiliates and/or
Licensees in a currency other than U.S. dollars, such amounts shall be expressed in their local
currency and in their U.S. dollar equivalents calculated using the exchange rate conversion
methodology then in consistent use by Company throughout its business in accordance with generally
accepted accounting principles and used in its preparation of the financial statements filed with
the SEC (or similar regulatory agency in another country if no financial statements are filed with
the SEC).

          4.8 Late Payments. Company shall pay interest to Regeneron on the aggregate amount of
any payments that are not paid on or before the date such payments are due under this Agreement at
a rate per annum equal to the lesser of (a) ****** above LIBOR; or (b) the highest rate permitted
by Applicable Law, calculated on the number of days such payments are received by Regeneron after
the date such payments are due. In addition, Company shall reimburse Regeneron for all costs and
expenses, including without limitation reasonable attorney fees and legal expenses, incurred in the
collection of late payments. For the purposes of this Agreement, LIBOR shall mean the London
Interbank Offered Rate as calculated by the British Bankers’ Association or, if LIBOR ceases to be
available, the base rate of a London bank selected by Regeneron.

          4.9 No Set Off. Except as set forth in Section 4.10, (a) neither Party shall set off
any of its obligations against or otherwise withhold from, any amount payable by it to the other
Party hereunder without the other Party’s prior written consent and (b) there shall be no deduction
or withholding from the amounts payable hereunder.

          4.10 Taxes.

    (a) General. The royalties and other amounts payable by Company to Regeneron
pursuant to this Agreement (“Payments”) shall not be reduced on account of any taxes unless
required by Applicable Law. Regeneron alone shall be responsible for paying any and all
taxes (other than withholding taxes required by Applicable Law to be paid by Company) levied
on account of, or measured in whole or in part by reference to, any Payments it receives.
Company shall deduct or withhold from the Payments any taxes that it is required by
Applicable Law to deduct or withhold. Notwithstanding the foregoing, if Regeneron is
entitled under any applicable tax treaty to a reduction of rate of, or the elimination of,
applicable withholding tax, it may deliver to Company or the appropriate governmental
authority (with the assistance of Company to the extent that this is reasonably required and
is expressly requested in writing) the prescribed forms necessary to reduce the applicable
rate of withholding or to relieve Company of its

11

 

obligation to withhold tax, and Company shall apply the reduced rate of withholding, or
dispense with withholding, as the case may be, provided that Company has received evidence,
in a form satisfactory to Company, of Regeneron’s delivery of all applicable forms (and, if
necessary, its receipt of appropriate governmental authorization) at least fifteen (15) days
prior to the time that the Payments are due. If, in accordance with the foregoing, Company
withholds any amount, it shall pay to Regeneron the balance when due, make timely payment to
the proper taxing authority of the withheld amount, and send to Regeneron proof of such
payment within sixty (60) days following that payment.

    (b) Indirect Taxes. Notwithstanding anything contained in Section 4.10(a),
this Section 4.10(b) shall apply with respect to value added taxes, sales taxes, consumption
taxes and other similar taxes (“Indirect Taxes”). All Payments are exclusive of Indirect
Taxes. If any Indirect Taxes are chargeable in respect of any Payments, Company shall pay
such Indirect Taxes at the applicable rate in respect of any such Payments following the
receipt, where applicable, of an Indirect Taxes invoice in the appropriate form issued by
Regeneron in respect of those Payments, such Indirect Taxes to be payable on the due date of
the payment of the Payments to which such Indirect Taxes relate.

    (c) Changes Following Assignment. If following an assignment of this Agreement
under Section 10.1 the treatment of any Payments or Indirect Taxes for either Party is
affected by the assignment, then the Parties shall use their best efforts to promptly
negotiate a provision in replacement of the affected sections of this Agreement that is
consistent with and achieves as nearly as possible the original treatment of such Payments
and Indirect Taxes immediately prior to any such assignment.

ARTICLE V

REPRESENTATIONS AND WARRANTIES; COVENANTS 

          5.1 Representations and Warranties of Company. Company represents and warrants as
follows:

    (a) Company is validly incorporated under the laws of Japan;

    (b) Company has the corporate and legal right, authority and power to enter into this
Agreement and to perform its obligations hereunder;

    (c) Company has taken all necessary action to authorize the execution, delivery and
performance of this Agreement;

    (d) upon the execution and delivery of this Agreement, this Agreement shall constitute
a valid and binding obligation of Company, enforceable in accordance with its terms, except
as enforceability may be limited by applicable bankruptcy, insolvency, reorganization,
moratorium or similar laws affecting creditors’ and contracting parties’ rights generally
and except as enforceability may be subject to general principles of equity (regardless of
whether such enforceability is considered in a proceeding in equity or at law); and

12

 

    (e) the performance of Company’s obligations under this Agreement will not conflict
with its charter documents or result in a breach of any agreements, contracts or other
arrangements to which it is a party.

          5.2 Representations and Warranties of Regeneron. Regeneron represents and warrants to
Company that, subject to the terms of Schedule 5.2,

    (a) Regeneron is a corporation duly organized, validly existing and in good standing
under the laws of the State of New York, United States of America;

    (b) Regeneron has the corporate and legal right, authority and power to enter into this
Agreement and to perform its obligations hereunder;

    (c) Regeneron has taken all necessary action to authorize the execution, delivery and
performance of this Agreement;

    (d) upon the execution and delivery of this Agreement, this Agreement shall constitute
a valid and binding obligation of Regeneron, enforceable in accordance with its terms,
except as enforceability may be limited by applicable bankruptcy, insolvency,
reorganization, moratorium or similar laws affecting creditors’ and contracting parties’
rights generally and except as enforceability may be subject to general principles of equity
(regardless of whether such enforceability is considered in a proceeding in equity or at
law);

    (e) the performance of Regeneron’s obligations under this Agreement will not conflict
with its charter documents or result in a breach of any agreements, contracts or other
arrangements to which it is a party;

    (f) Regeneron has the right to grant the licenses granted to Company on the terms set
forth herein;

    (g) as of the Effective Date and with no further duty to update (except pursuant to
Section 7.3), (i) there is no pending litigation that alleges that any of Regeneron’s
activities directly relating to the Regeneron Technology, Mice, or Mice Materials have
violated, or would violate, any of the intellectual property rights of any Third Party (nor
has it received any written communication threatening such litigation); and (ii) to its
knowledge, no litigation has been otherwise threatened which alleges that any of its
activities directly relating to the Regeneron Technology, Mice, or Mice Materials have
violated or would violate, any of the intellectual property rights of any Third Party;

    (h) Regeneron has disclosed or made available to Company all the Regeneron Technology
needed for Company to make and use “VelocImmune 2” Mice pursuant to Section 2.1 (a) and (b)
of this Agreement;

    (i) to its knowledge, Company’s use of the Mice and other Regeneron Technology
generally hereunder (but not with respect to a specific Antibody or antigen or any methods
relating to Antibody or Antibody Material generation) will not infringe or otherwise violate
any Third Party patent issued *********************** claiming

13

 

genetically modified mice or the use thereof to make antibodies.
**********************************.

    (j) to its knowledge, the issued patents included in the Regeneron Technology existing
at the Effective Date are not invalid or unenforceable in whole or part;

    (k) to its knowledge, the development or reproduction of the Mice or the conception,
development and reduction to practice of the Regeneron Technology existing as of the
Effective Date has not constituted or involved the misappropriation of trade secrets or
other rights of any Person; and

    (l) to its knowledge, the Know-How listed or referred to in Exhibit A is
sufficient to establish a colony of Mice.

For purposes hereof, “to its knowledge” shall mean actual knowledge with no duty of inquiry
or investigation

          5.3 Disclaimer of Warranty. EXCEPT AS EXPRESSLY PROVIDED IN THIS AGREEMENT, ALL
REGENERON TECHNOLOGY AND MICE ARE PROVIDED TO COMPANY (a) “AS IS” AND WITHOUT ANY WARRANTIES,
EXPRESS OR IMPLIED, INCLUDING ANY WARRANTY OF MERCHANTABILITY, TITLE OR FITNESS FOR A PARTICULAR
PURPOSE AND (b) WITHOUT ANY REPRESENTATION OR WARRANTY THAT THE USE OF REGENERON TECHNOLOGY OR MICE
WILL NOT INFRINGE ANY THIRD PARTY’S PATENT OR OTHER RIGHT.

          5.4 Covenants. Company agrees, for itself and on behalf of its Affiliates, that it and
they:

    (a) will abide by all industry accepted guidelines applicable to the use, handling and
disposal of genetically modified animals and comply in all material respects with all
Applicable Laws which relate to the use of the Mice and Mice Materials;

    (b) will use diligent efforts to ensure that the Mice do not come into contact with any
mice other than Mice; and in particular will not intentionally or recklessly breed Mice with
any mice other than Mice, except as specifically set forth in the last sentence of this
Section 5.4;

    (c) will not make any heritable genetic modifications to the Mice; 

    (d) will not Derive embryonic or other stem cells from the Mice or other Mice Material
that could be used to make Mice;

    (e) will not use Mice or Mice Materials to directly manufacture or produce Subject
Products for sale. For the avoidance of doubt, Regeneron acknowledges that Company may (i)
isolate cDNA from Mice which code for a given antibody (the “Isolated Mice Sequences”), (ii)
modify DNA sequences of cell lines derived from sources other than the Mice and mice to
incorporate the Isolated Mice Sequence or modifications

14

 

thereof, and (iii) manufacture Subject Products for sale using such modified cell lines
or using other Antibody Materials and such use shall not constitute a breach of Section
5.4(e);

    (f) will not use Mice Materials to create Mice, mice or any transgenic animals; and

    (g) will ensure that all Mice (including Progeny) and Mice Material supplied to it or
Derived under this Agreement remain in the possession of Company, its Affiliates or Approved
Third Parties.

****************************************************.

ARTICLE VI

INDEMNIFICATION

          6.1 Indemnification by Company. Company agrees to indemnify and hold harmless
Regeneron and Regeneron’s Affiliates and their respective shareholders, directors, officers,
employees and agents (“Regeneron Indemnitees”) from and against any liabilities, losses, costs,
damages, fees or expenses arising out of any Third Party claim relating to (a) any breach by
Company or any of its Affiliates or Approved Third Parties of any of its representations,
warranties or obligations pursuant to this Agreement (or, in the case of the Approved Third Party,
the letter agreement with Regeneron in the form annexed hereto as Exhibit C), (b) any
product liability, personal injury, property damage or other damage resulting from the testing,
manufacture, use, offer for sale, sale or importation of Antibodies, Antibody Materials, or Subject
Products, or (c) infringement or misappropriation of any patent or other intellectual property
rights of any Third Party (other than Third Party patents specifically covering Regeneron
Technology, such patents being referred to as “Regeneron Technology Blocking Patents”) resulting
from the manufacture, use, offer for sale, sale or importation of Antibodies, Antibody Materials,
or Subject Products, by Company or Company’s Affiliates, Licensees, Distributors, Approved Third
Parties or contract manufacturers, provided, however, that Company shall not be obligated to
indemnify or hold harmless Regeneron Indemnitees from any such liabilities, losses, costs, damages,
fees or expenses to the extent that (i) such liabilities, losses, costs, damages, fees or expenses
have resulted from the grossly negligent (or more culpable) act or omission of a Regeneron
Indemnitee or (ii) Regeneron has an obligation to indemnify any Company Indemnitee pursuant to
Section 6.2 in respect of such liabilities, losses, costs, damages, fees or expenses.

          6.2 Indemnification by Regeneron. Regeneron agrees to indemnify and hold harmless
Company and Company’s Affiliates, Approved Third Parties, Company’s contract manufacturers of
Subject Products, Distributors, and Licensees, and their respective shareholders, directors,
officers, employees and agents (“Company Indemnitees”) from and against any liabilities, losses,
costs, damages, fees or expenses arising out of any Third Party claim relating to any breach by
Regeneron of any of its representations, warranties or obligations pursuant to this Agreement;
provided, however, that Regeneron shall not be obligated to indemnify or hold harmless Company
Indemnitees from any such liabilities, losses, costs, damages, fees or expenses to the extent that
such liabilities, losses, costs, damages, fees or expenses have resulted from the grossly negligent
(or more culpable) act or omission of a Company Indemnitee.

15

 

          6.3 Claims for Indemnification. A Person entitled to indemnification under this
Article VI (an “Indemnified Party”) shall give prompt written notification to the Person from whom
indemnification is sought (the “Indemnifying Party”) of the commencement of any action, suit or
proceeding relating to a Third Party claim for which indemnification may be sought or, if earlier,
upon the assertion of any such claim by a Third Party (it being understood and agreed, however,
that the failure by an Indemnified Party to give notice of a Third-Party claim as provided in this
Section 6.3 shall not relieve the Indemnifying Party of its indemnification obligation under this
Agreement except and only to the extent that such Indemnifying Party is actually damaged as a
result of such failure to give notice). Within thirty (30) days after delivery of such
notification, the Indemnifying Party may, upon written notice thereof to the Indemnified Party,
assume control of the defense of such action, suit, proceeding or claim with counsel reasonably
satisfactory to the Indemnified Party. If the Indemnifying Party does not assume control of such
defense, the Indemnified Party shall control such defense and, without limiting the Indemnifying
Party’s indemnification obligations, the Indemnifying Party shall reimburse the Indemnified Party
for all reasonable and verifiable out-of-pocket costs, including attorney fees, incurred by the
Indemnified Party in defending itself within sixty (60) days after receipt of any invoice therefor
from the Indemnified Party. The Party not controlling such defense may participate therein at its
own expense; provided that, if the Indemnifying Party assumes control of such defense and the
Indemnified Party in good faith concludes, based on advice from counsel, that the Indemnifying
Party and the Indemnified Party have conflicting interests with respect to such action, suit,
proceeding or claim, the Indemnifying Party shall be responsible for the reasonable and verifiable
fees and expenses of counsel to the Indemnified Party in connection therewith. The Party
controlling such defense shall keep the other Party advised of the status of such action, suit,
proceeding or claim and the defense thereof and shall consider recommendations made by the other
Party with respect thereto. The Indemnified Party shall not agree to any settlement of such
action, suit, proceeding or claim without the prior written consent of the Indemnifying Party,
which shall not be unreasonably withheld, delayed or conditioned. The Indemnifying Party shall not
agree to any settlement of such action, suit, proceeding or claim or consent to any judgment in
respect thereof without the prior written consent of the Indemnified Party, which shall not be
unreasonably withheld, delayed or conditioned.

ARTICLE VII

INTELLECTUAL PROPERTY PROTECTION AND RELATED MATTERS 

          7.1 Ownership of Intellectual Property.

    (a) Subject to the license grants to Company under Section 2.1 and the ownership and
assignment provisions in Section 2.4 and Section 3.5, as between the Parties, each Party
shall own and retain all right, title and interest in and to any and all information,
improvements and inventions that are conceived, discovered, developed or otherwise made, as
necessary to establish authorship, inventorship or ownership, by or on behalf of such Party
(or its Affiliates or its licensees (excluding, in the case of Regeneron, Company, its
Affiliates and Licensees) under or in connection with this Agreement, whether or not
patented or patentable, and any and all Patent Rights and intellectual property rights with
respect thereto. Determination of authorship, inventorship or ownership shall be made in
accordance with applicable United States law.

16

 

    (b) Except as specifically set forth herein, Regeneron and Regeneron’s Affiliates shall
retain all right, title and interest in and to all Regeneron Technology.

    (c) Company and Company’s Affiliates shall retain all right, title and interest in and
to (i) all Antibodies, Antibody Materials and Subject Products and (ii) subject to Section
2.4,Section 3.5, and Article VIII, all results, technical information, inventions, materials
and data, and any intellectual property rights therein, or otherwise resulting from
Company’s or Company’s Affiliates use of (A) the Mice, Mice Materials and other Regeneron
Technology in accordance with this Agreement, or (B) Antibodies, Antibody Materials and
Subject Products (“Company Know-How”).

          7.2 Prosecution of Patent Rights.

    (a) Regeneron shall have the right and option (but not the obligation) to file and
prosecute any patent applications and to maintain any patents within the Regeneron Patent
Rights in Regeneron’s name, and to control any interferences, reissue proceedings and
re-examinations relating thereto; provided, however, that, Regeneron shall use commercially
reasonable efforts (i) to prosecute the patent applications listed in Exhibit B in
*************************************, and (ii) to maintain the patents listed in
Exhibit B and the patents resulting from the patent applications listed in
Exhibit B in ***********************************************.

    (b) Company shall have the right and option (but not the obligation) to file and
prosecute any patent applications and to maintain any patents within the Company Patent
Rights in Company’s name, and to control any interferences, reissue proceedings and
re-examinations relating thereto.

          7.3 Infringement. Company shall promptly report in writing to Regeneron during the
term of this Agreement any (a) known or suspected infringement of any of the Regeneron Patent
Rights, or (b) unauthorized use of any of the Regeneron Know-How of which the Company becomes
aware. In the event that either Party or any of its Affiliates shall receive written notice from a
Third Party claiming that the Mice, Mice Materials or Regeneron Technology infringes or otherwise
violates the intellectual property rights of such Third Party, then such Party shall promptly
notify the other Party in writing of this notice of infringement. Regeneron shall promptly report
to Company the initiation of any formal legal proceedings during the term of this Agreement
claiming the infringement of or unauthorized use of any Regeneron Patent Rights or Regeneron
Know-How.

          7.4 Enforcement. Regeneron shall have the sole right to initiate a suit or take other
appropriate action that it believes is reasonably required to protect Regeneron Patent Rights from
any known or suspected infringement or to prevent the unauthorised use or disclosure of Regeneron
Know-How. Company shall have the sole right to initiate a suit or take other appropriate action
that it believes is reasonably required to protect Company Patent Rights from any known or
suspected infringement or to prevent the unauthorised use or disclosure of any Company Know-How.

17

 

          7.5 Defense. In the event that a Third Party asserts, as a defense or as a
counterclaim in any infringement action under Section 7.4 or in a declaratory judgment action or
similar action or claim filed by such Third Party, that Regeneron Patent Rights are invalid or
unenforceable, Regeneron shall have the sole right, but not the obligation, through counsel of its
choosing, to respond to such defense or defend against such counterclaim, action or claim (as
applicable), including the right to settle or otherwise compromise such claim.

          7.6 Third Party Litigation. Notwithstanding Section 7.4 or Section 7.5, in the event
of any actual or threatened suit against Company, or its Affiliates, Licensees, distributors or
customers alleging that the use of Regeneron Technology, the Mice, Mice Materials, Antibodies or
Antibody Materials or the Exploitation of Subject Products by or on behalf of Company under this
Agreement infringes the Patent Rights or other intellectual property rights of any Person (an
“Infringement Suit”), Company shall be solely responsible for assuming direction and control of the
defense of claims arising therefrom (including the right to settle such claims at its sole
discretion), unless Company is seeking indemnification under the terms of Section 6.2.

          7.7 Co-operation. Each Party shall provide to the other all reasonable assistance
requested by the other Party (and at the other Party’s reasonable expense) in connection with any
action claim or suit under this Article VII, including allowing access to the other Party’s files
and documents and to such other Party’s personnel who may have possession of relevant information.

          7.8 Recoveries.

    (a) With respect to any suit or action to protect Regeneron Technology brought or taken
by Regeneron, Regeneron shall retain one hundred percent (100%) of any recovery obtained by
it as a result of any suit or action to protect Regeneron Technology.

    (b) With respect to any suit or action to protect Company Technology brought or
undertaken by Company or its Affiliate, Company shall retain one hundred percent (100%) of
any recovery obtained by it as a result of or in connection with any such suit or action to
protect Company Technology; provided that to the extent that such recovery includes royalty
amounts otherwise payable to Regeneron hereunder during the Royalty Term, Company shall pay
to Regeneron the royalty amounts calculated in accordance with Section 4.2 based on the
estimated Net Sales corresponding to the recovered lost profits.
******************************************** ***********.

ARTICLE VIII

CONFIDENTIALITY

          8.1 Definition of Confidential Information. Subject to the last paragraph in this
Section 8.1, Confidential Information includes all information, data and know-how disclosed by
either Party or its Affiliates (the “Disclosing Party”) to the other Party or its Affiliates (the
“Receiving Party”) hereunder, whether orally or as embodied in tangible materials, including
research, inventions, discoveries, writings, drawings, graphs, charts, photographs, recordings,
designs, plans, processes, models, technical information, facilities, methods, assays, data,
chemical formulas, compositions, compounds, instrumentation, trade secrets, copyrights, systems,
patents, patent applications, procedures, manuals, specifications, prototypes, samples, structures,
models,

18

 

any other intellectual property, and confidential reports. Notwithstanding the foregoing,
Confidential Information shall not include information which the Receiving Party can demonstrate
is:

    (a) already in the possession of the Receiving Party, without obligation of
confidentiality, at or before the time of disclosure hereunder as shown by the Receiving
Party’s files existing at the time of disclosure; or

    (b) now or hereafter becomes publicly known through no wrongful act of the Receiving
Party (provided that if Confidential Information becomes publicly known this shall not
excuse a prior disclosure by the Receiving Party); or

    (c) lawfully received by the Receiving Party from a Third Party not under an obligation
of confidence to the Disclosing Party; or

    (d) developed by the Receiving Party independent of the Confidential Information
received hereunder; or

    (e) approved for release by written authorization of the Disclosing Party.

          Specific aspects or details of Confidential Information will not be deemed to be within the
public knowledge or in the prior possession of a Person merely because such aspects or details of
the Confidential Information are embraced by general disclosures in the public domain. In
addition, any combination of Confidential Information will not be considered in the public
knowledge or in the prior possession of either Person merely because individual elements thereof
are in the public domain or in the prior possession of a Person unless (i) the combination and its
principles are in the public knowledge or in the prior possession of that Person and (ii) the
combination is documented, in a single contemporaneous document, as in the public knowledge or in
the prior possession of a Person.

          Notwithstanding anything to the contrary in this Section 8.1, Company’s Confidential
Information shall be limited to (i) confidential information in the reports delivered to Company in
accordance with Section 4.4, (ii) confidential information discovered by Regeneron during any Site
visit in accordance with Section 3.2, (iii) confidential information discovered by Regeneron during
any audit conducted pursuant to Section 4.5, (iv) confidential information provided to Regeneron
in connection with any claim for indemnification under ARTICLE VI, (v) confidential information
provided to Regeneron pursuant to Section 7.7, (vi) confidential information related to Approved
Third Parties disclosed to Regeneron pursuant to Section 3.6, and (vii) information disclosed by
prior mutual agreement specifically certified by Company as being confidential prior to its
disclosure, in each case, unless such information falls under the exceptions described in clause
(a), (b), (c), (d), or (e) above in this Section 8.1. All other information, data or know-how
disclosed by Company or its Affiliates hereunder shall be non-confidential and shall not be subject
to the confidentiality obligations and restrictions on use in this Article VIII.

          8.2 Confidentiality and Non-Use Obligations. Each Party agrees, subject to Section
8.4, that it will hold in strict confidence and not disclose, disseminate or distribute to any
Third Party Confidential Information received from the Disclosing Party and use such Confidential

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Information for no purpose other than those contemplated by this Agreement. Each Party
agrees that access to Confidential Information will be limited to its Affiliates, Licensees and
its Approved Third Parties (in each case, which are bound by the confidentiality obligations
herein), as well as such Party’s and its Affiliates’, Licensees’ and Approved Third Parties’
employees (including temporary staff), agents, or other authorized representatives who: (a) need
to know such Confidential Information in connection with their work and (b) have signed agreements
obligating them to maintain the confidentiality of the Confidential Information, provided that
each Party shall remain responsible for any failure by its Affiliates, Licensees and Approved
Third Parties and their respective employees (including temporary staff), consultants, advisors,
to treat such information and materials as Confidential Information. Each Party further agrees to
inform such employees (including temporary staff), agents or authorized representatives of the
confidential nature of Confidential Information received from the Disclosing Party and agrees to
take all necessary steps to ensure that the terms of this Agreement are not violated by them.

          8.3 Loss of Confidential Information. Each Party shall maintain reasonable
procedures to prevent accidental or other loss of any Confidential Information received from the
Disclosing Party and shall exert at least the same degree of care as it uses to protect its own
Confidential Information. Each Party shall immediately notify the other in the event of any
actual or suspected loss or unauthorized disclosure of that Party’s Confidential Information.
Each Party will take all reasonable further steps requested by the other Party to prevent, control
or remedy such violation.

          8.4 Permitted Disclosure. Each Party may disclose Confidential Information to the
extent that such disclosure is:

    (a) made in response to a valid order of a court of competent jurisdiction or other
competent authority; provided, however, that the Receiving Party shall first have given
notice to the Disclosing Party and given the Disclosing Party a reasonable opportunity to
quash any such order or obtain a protective order requiring that the Confidential
Information and documents that are the subject of such order be held in confidence by such
court or authority or, if disclosed, be used only for the purpose for which the order was
issued; and provided further that if such order is not quashed or a protective order is not
obtained, the Confidential Information disclosed in response to such court or governmental
order shall be limited to that information that is legally required to be disclosed in
response to such court or governmental order;

    (b) otherwise required by Applicable Law or the requirements of a national securities
exchange or another similar regulatory body; provided, however, that the Receiving Party
shall (i) provide the Disclosing Party with reasonable advance notice of and an opportunity
to comment on any such required disclosure, (ii) if requested by the Disclosing Party, seek
confidential treatment with respect to any such disclosure to the extent available, and
(iii) consider in good faith the comments of the Disclosing Party in any such disclosure or
request for confidential treatment; or

    (c) made by Company, its Affiliates or Licensees to a regulatory authority in
connection with any filing, application or request for any approval, license, registration
or authorization relating to a Subject Product; provided, however, that Company will (i)

20

 

provide Regeneron with reasonable advance notice of and an opportunity to comment on
any such required disclosure, (ii) seek confidential treatment with respect to any such
disclosure to the extent available, and (iii) consider in good faith the comments of
Regeneron in any such disclosure or request for confidential treatment;

          8.5 Return of Confidential Information. Confidential Information disclosed by the
Disclosing Party, including permitted copies, shall remain the property of the Disclosing Party.
Subject to Section 8.6, upon termination or expiration of this Agreement, or upon written request
of the Disclosing Party, the Receiving Party shall promptly return to the Disclosing Party or, at
the Disclosing Party’s request, destroy, all documents or other tangible materials representing
the Disclosing Party’s Confidential Information (or any designated portion thereof); provided that
one (1) copy may be maintained in the confidential files of the Receiving Party for the purpose of
complying with the terms of this Agreement. An officer of the Receiving Party also shall certify
in writing that it has satisfied its obligations under this Section 8.5 within ten (10) days of a
written request by the Disclosing Party.

          8.6 Retention of Confidential Information by Company. Section 8.5 shall not apply to
Regeneron Confidential Information during the term of this Agreement or on the expiry or
termination of this Agreement if and to the extent that Company’s rights under the Regeneron
Technology survive such termination or expiry pursuant to Section 9.4.

          8.7 Publicity. During the term of this Agreement, the content of any press release
or public disclosure relating to this Agreement shall be mutually agreed by the Parties, which
agreement shall not be unreasonably withheld, delayed or conditioned, except that a Party may,
without the other Party’s agreement, (a) issue such press release or make such public disclosure
if the contents of such press release or public disclosure have previously been made public other
than through a breach of this Agreement by the issuing Party or (b) subject to Section 8.4 issue
such press release or make such public disclosure if such press release or public disclosure is
required by Applicable Law, regulation or legal process, including without limitation by the rules
or regulations of the SEC (or similar regulatory agency in a country other than the United States)
or of any stock exchange or other securities trading institution. It is the intent of the Parties
to issue one press release announcing the execution of this Agreement. In any press releases
issued by Company regarding the discovery, development or approval of a Subject Product, Antibody
or Antibody Materials, Company shall include a statement regarding the role of Regeneron
Technology and Mice, which statement shall be reasonably acceptable to Regeneron. The Parties
shall issue a joint press release on the Effective Date with respect to the execution of this
Agreement in the form annexed hereto as Exhibit D.

          8.8 Disclosure of Provisions of Agreement.

    (a) Subject to Sections 8.7 and 8.8(b), each Party agrees to hold as confidential the
terms of this Agreement that have not been disclosed publicly except that (i) each Party
shall have the right to disclose such terms to investors, potential investors, lenders,
potential lenders, acquirers, potential acquirers, investment bankers and other Third
Parties in connection with financing and acquisition activities, provided that any such
Third Party has entered into a written obligation with the disclosing Party to treat such
information and materials as confidential which is at least as stringent as the conditions

21

 

imposed by this Agreement and (ii) each Party shall have the right to disclose such
terms as required by applicable law, regulation or legal process, including without
limitation by the rules or regulations of the SEC (or similar regulatory agency in a
country other than the United States) or of any stock exchange or other securities trading
institution.

    (b) In the event that this Agreement shall be included in any report, statement or
other document filed by either Party or an Affiliate of either Party with the SEC or
similar regulatory agency in a country other than the United States or any stock exchange
or other securities trading institution, such Party shall consider in good faith any
requests for confidential treatment as may be reasonably requested by the other Party.

          8.9 Approvals. Each Party shall submit any press release or any disclosure requiring
the other Party’s approval pursuant to this Article VIII to the other Party, and the Party
receiving such request shall have three (3) business days to review and approve any such press
release or disclosure, which approval shall not be unreasonably withheld. If the Party receiving
such request does not respond in writing within such three (3) business day period, the press
release or disclosure shall be deemed approved. In addition, if a public disclosure is required
by law, rule or regulation, including without limitation in a filing with the Securities and
Exchange Commission, the disclosing Party shall provide copies of the disclosure reasonably in
advance of such filing or other disclosure for the non- disclosing Party’s prior review and
comment, which comments shall be considered in good faith by the disclosing Party.

          8.10 Term. All obligations of confidentiality imposed under this Article VIII shall
only survive the expiration or early termination of this Agreement for a period of seven (7)
years.

ARTICLE IX

TERM AND TERMINATION

          9.1 Term. The term of this Agreement shall commence on the Effective Date and,
subject to the last sentence of Section 9.2 (d), shall expire on the sixth anniversary of the
Transfer Date unless earlier terminated under the terms of this Agreement. For the avoidance of
doubt, Company shall have the right but not the obligation to terminate this Agreement without
cause upon written notice prior to the fourth anniversary of the Transfer Date in accordance with
Section 9.2(a).

          9.2 Termination.

    (a) Convenience. Company may elect to terminate this Agreement at any time by
providing ninety (90) days’ prior written notice to Regeneron. If such notice is sent with
an effective date of termination prior to the fourth anniversary of the Transfer Date, such
notice shall be accompanied (or preceded) by the payment of all sums which were not
previously paid and which have become or would have become due and payable pursuant to the
first or second sentence of Section 4.1 but for the termination under this Section

22

 

9.2(a). For example, if the Transfer Date is April 30, 2007 and Company pays to Regeneron
twenty million United States dollars (US$20,000,000) on April 30, 2007 and on July 15, 2007
delivers a notice of termination with an effective date of termination on October 15, 2007,
Company would be obligated to pay to Regeneron on July 15, 2007 sixty million United States
dollars (US$60,000,000) representing twenty million United States dollars (US$20,000,000)
that would have otherwise been payable on April 30, 2008, plus twenty million United States
dollars (US$20,000,000) that would otherwise have been payable on April 30, 2009, plus
twenty million United States dollars (US$20,000,000) that would have otherwise been payable
on April 30, 2010. However, for example, if the Transfer Date is April 30, 2007 and Company
has paid all amounts previously due and payable under Section 4.1 and on July 15, 2010
delivers a notice of termination with an effective date of termination on October 15, 2010,
Company would not be obligated to pay to Regeneron any further sums pursuant to Section 4.1.
If such notice of termination under this Section 9.2(a) is sent with an effective
termination date on or after the fourth anniversary of the Transfer Date, such notice shall
be accompanied (or preceded) by the payment of all sums which were not previously paid and
which have become or would have become due and payable pursuant to the first, second, or
third sentence of Section 4.1 but for the termination under this Section 9.2(a). For
example, if the Transfer Date is April 30, 2007 (and Company has paid all amounts previously
due and payable under Section 4.1) and on June 20, 2011 Company delivers a notice of
termination with an effective date of termination on September 20, 2011, Company would be
obligated to pay Regeneron on June 20, 2011 twenty million United States dollars
(US$20,000,000), as adjusted to reflect the Adjusted Annual Fee pursuant to the terms of the
third sentence of Section 4.1, representing the Adjusted Annual Fee that would have
otherwise been payable on April 30, 2012.

          (b) Breach. Either Party shall have the right (but not the obligation) to
terminate this Agreement upon written notice to the other Party if the other Party
materially breaches or defaults in the performance of any of the provisions of this
Agreement; provided that such material breach or default has not been cured (if capable of
being cured) within sixty (60) days after the giving of notice by the first Party specifying
such breach or default. For purposes of this Section 9.2(b), the term “material breach”
shall mean a breach or default in performance hereunder by a Party that substantially
undermines the contractual rights, protections or benefits of the non-breaching Party under
this Agreement.

          (c) Technical Event. Company may terminate this Agreement upon providing
thirty (30) days prior written notice to Regeneron together with adequate written records to
document its claim of the occurrence of a Technical Event. Such records shall be subject to
review by an independent Third Party expert designated by Regeneron within ten (10) business
days of receipt of the written notice of termination and approved by Company, such approval
not to be unreasonably withheld or delayed. Such expert shall review such written records
and promptly determine whether or not a Technical Event has occurred. The expert’s decision
shall be final and binding upon the Parties as to this issue. Following the provision of
any such notice of termination all obligations to make payments due under this Agreement by
the Company to Regeneron shall be suspended from the date of such notice until the date of
the publication of the expert’s determination. Any notice of

23

 

	 	 	termination shall be deemed effective from the date of the notice of termination in the
event that the expert determines that a Technical Event has occurred. As used above, the
term “Technical Event” shall mean, ********************************************.

    (d) ****************. **************************************.

     9.3 Rights in Bankruptcy. All rights and licenses granted under or pursuant to this
Agreement by Regeneron are, and shall otherwise be deemed to be, for purposes of Section 365(n) of
the U.S. Bankruptcy Code or analogous provisions of Applicable Law outside the United States,
licenses of right to “intellectual property” as defined under Section 101 of the U.S. Bankruptcy
Code or analogous provisions of Applicable Law outside the United States (hereinafter “IP”). The
Parties agree that Company, as licensee of such rights under this Agreement, shall retain and may
fully exercise all of its rights and elections under the U.S. Bankruptcy Code or any other
provisions of Applicable Law outside the United States that provide similar protection for IP. The
Parties further agree that, in the event of the commencement of a bankruptcy proceeding by or
against Regeneron under the U.S. Bankruptcy Code or analogous provisions of Applicable Law outside
the United States, Company shall be entitled to a complete duplicate of (or complete access to, as
appropriate) any such IP and all embodiments of such IP, which, if not already in Company’s
possession, shall be promptly delivered to it upon Company’s written request therefor.

     9.4 Effects of Termination.

           (a) Termination or Expiration of License. Except as set forth below in this
Section 9.4, upon expiration or termination of this Agreement, the licenses granted by
Regeneron to Company under Section 2.1 shall terminate and revert to Regeneron as of the
effective date of such expiration or termination. Subject to the terms of the last sentence
of Section 9.4(c), upon termination of this Agreement for any reason, Company may continue
to use and Exploit any Antibodies, Antibody Materials and Subject Products generated
pursuant to this Agreement and Company shall pay royalties during the Royalty Term in
accordance with Article IV. Upon termination of this Agreement by Company in accordance
with Section 9.2(b), 9.2(c), or 9.2(d), Company shall not be required to make any further
payments to Regeneron under Section 4.1, except that neither Party shall be relieved of any
obligations arising prior to such termination, including any payment obligations which arose
and are due with respect to any period prior to such termination. Upon termination of this
Agreement by Regeneron in accordance with Section 9.2(b), (i) in addition to any other
amounts payable by Company to Regeneron under this Agreement, under law or pursuant to any
contractual remedies available to Regeneron (but giving full allowance in due course for any
sums paid hereunder), Company shall pay the amounts otherwise payable by Company under
Section 9.2(a) as if Company had terminated this Agreement for convenience, and (ii)
Regeneron may seek equitable remedies from a court of competent jurisdiction, including, if
appropriate, destruction of Antibodies and Antibody Materials.

           (b) Discontinuation of Use; Return of Material. Upon expiration of the term of
the Agreement or earlier termination of this Agreement, Company (and its Affiliates and, if
applicable, Approved Third Parties) will discontinue use of Regeneron’s Confidential
Information as of the effective date of such expiration or termination, except to the extent

24

 

that such use of such Confidential Information is reasonably necessary for the Company
to continue to use and Exploit all Antibodies and Antibody Materials generated using the
Mice and Mice Materials prior to the date of expiration or termination, subject to Company’s
obligations to pay royalties to Regeneron during the Royalty Term pursuant to Article IV,
and if requested by Regeneron will return Regeneron’s Confidential Information to which
Company does not retain any rights hereunder in accordance with Section 8.5.

    (c) Destruction of Mice and Mice Materials; Treatment of Antibodies and Antibody
Materials. Except as set forth in paragraph (d) below, within ten (10) business days
after the effective date of expiration or termination of this Agreement for any reason,
Company shall destroy (or cause the destruction of) all Mice (including any Progeny) and
Mice Materials held by Company, its Affiliates and, if applicable, Approved Third Parties.
Within seven (7) days of destruction, an officer of Company shall deliver to Regeneron a
signed letter, in form and substance reasonably acceptable to Regeneron and the Company,
certifying that all Mice (including, without limitation, any Progeny) and, if applicable,
Mice Materials have been destroyed. Except as set forth in the next sentence, upon
expiration or termination of this Agreement for whatever reason, Company shall have the
right to continue to use and Exploit all Antibodies and Antibody Materials generated using
the Mice and Mice Materials prior to the date of termination, subject to Company’s
obligations to pay royalties to Regeneron during the Royalty Term pursuant to Article IV.
***************************** ******************.

    (d) Tail Period. No later than sixty (60) days prior to the expiration date of
this Agreement or the termination of this Agreement by Company pursuant to Section 9.2 (such
date being referred to herein as “the Expiration Date”), Company may provide a written
notice to Regeneron, which shall be accompanied by a payment of *********************** to
permit Company to retain and use for a period of one calendar year from the Expiration Date
(the “Tail Period”) any Mice Materials generated by Company prior to the Expiration Date
solely in order to allow Company to ******************************** prior to the Expiration
Date to optimize the development of Antibodies. At the end of such one year Tail Period,
Company shall destroy and certify as destroyed all Mice Materials in accordance with the
terms in paragraph (c) above.

          9.5 Survival. The expiration or termination of this Agreement shall not relieve the
parties of any obligation accruing prior to such expiration or termination. The second and third
sentences of Section 3.1, Section 3.5, Article IV (to the extent applicable, including without
limitation, Section 4.2 during the Royalty Term), Section 5.3, Article VI, Section 7.1, Article
VIII, subject to Section 8.10, Article IX and Article X, together with any relevant defined terms,
shall survive any termination or expiration of this Agreement.

ARTICLE X

MISCELLANEOUS

          10.1. Assignment; Successors and Assigns. (a) Company may not assign its rights or
delegate its obligations under this Agreement in whole or in part without the prior written consent

25

 

of Regeneron, except that Company shall have the right, without such consent, (i) to perform
any or all of its obligations and exercise any or all of its rights under this Agreement through
any of its Affiliates, or (ii) on written notice to Regeneron, to assign all its rights and
obligations under this Agreement to any successor in interest in connection with a merger,
consolidation or sale of all or substantially all of the assets of Company; provided, that
Company’s rights and obligations under this Agreement shall be assumed by its successor in interest
in any such transaction. Company absolutely, unconditionally and irrevocably guarantees to
Regeneron prompt performance when due and at all times thereafter of the responsibilities,
liabilities, covenants, warranties, agreements and undertakings of its Affiliates pursuant to this
Agreement. (b) Regeneron may not assign its rights or delegate its obligations under this
Agreement in whole or in part without the prior written consent of Company, except that Regeneron
shall have the right, without such consent, (i) to perform any or all of its obligations and
exercise any or all of its rights under this Agreement through any of its Affiliates, or (ii) on
written notice to Company, to assign all its rights and obligations under this Agreement (A) to any
of its Affiliates that has the resources to meet Regeneron’s obligations under this Agreement, or
(B) to a successor in interest in connection with (1) a merger, consolidation or sale of all or
substantially all of the assets of Regneron, or (2) the sale or license of all or substantially all
of the assets of Regeneron related to the Regeneron Technology; provided that Regeneron’s rights
and obligations under this Agreement shall be assumed by its successor in interest in any such
transaction. Regeneron absolutely, unconditionally and irrevocably guarantees to Company prompt
performance when due and at all times thereafter of the responsibilities, liabilities, covenants,
warranties, agreements and undertakings of its Affiliates pursuant to this Agreement. (c) Any
purported assignment in violation of this Section 10.1 shall be void ab initio. Without limiting
the foregoing, neither Party shall cause or permit any of its Affiliates to commit any act
(including any act of omission) which such Party is prohibited hereunder from committing directly.
No assignment of this Agreement shall be made in bad faith to limit or restrict the contractual
rights and benefits of the other Party under this Agreement.

10.2. Notices.

Notices to Company shall be addressed to:

Astellas Pharma Inc.

2-3-11 Nihonbashi-Honcho Chuo-ku

Tokyo 103-8411, Japan

Telefacsimile: ******************

Attention: Vice President, Legal

With
a copy to: Vice President, Molecular Medicine Research Labs, Drug Discovery Research

Notices to Regeneron shall be addressed to:

Regeneron Pharmaceuticals, Inc.

777 Old Saw Mill River Road

Tarrytown, New York 10591-6707

USA

26

 

Telefacsimile: *******************

Attention: Vice President, Strategic Alliances

With a copy to: Vice President & General Counsel

          All notices and other correspondence sent under this Agreement shall be in English. Any Party
may change its address by giving notice to the other Party in the manner herein provided. Any
notice required or provided for by the terms of this Agreement shall be in writing and shall be (a)
sent by registered or certified mail, return receipt requested, postage prepaid, (b) sent via a
reputable international courier service, (c) sent by facsimile transmission with an original
following the same day via a reputable international courier service or (d) personally delivered,
in each case properly addressed in accordance with the paragraph above. The effective date of
notice shall be the actual date of receipt by the Party receiving the same.

          10.3. Governing Law. This Agreement shall be construed and the respective rights of
the Parties determined according to the substantive laws of the State of New York notwithstanding
any provisions governing conflict of laws under such New York law to the contrary and without
giving effect to the United Nations Convention on Contracts for the International Sale of Goods.

          10.4. Submission to Jurisdiction. Each Party (a) submits to the exclusive
jurisdiction of any state or federal court sitting in New York, New York, with respect to actions
or proceedings arising out of or relating to this Agreement, (b) agrees that all claims in respect
of such action or proceeding may be heard and determined only in any such court, subject to any
rights of removal from state court in New York to federal court in New York, and (c) agrees not to
bring any action or proceeding arising out of or relating to this Agreement in any other court;
provided that either Party may bring an action in any court of competent jurisdiction to enforce a
final judgment entered by such New York courts. Each Party waives any defense of inconvenient
forum to the maintenance of any action or proceeding so brought and waives any bond, surety or
other security that might be required of the other Party with respect thereto. Each Party may make
service on the other Party by sending or delivering a copy of the process to the Party to be served
at the address and in the manner provided for the giving of notices in Section 10.2. Nothing in
this Section 10.4, however, shall affect the right of any Party to serve legal process in any other
manner permitted by law.

          10.5. Force Majeure. No Party shall be held liable or responsible to the other Party
nor be deemed to have defaulted under or breached this Agreement for failure or delay in fulfilling
or performing any obligation under this Agreement when such failure or delay is caused by or
results from causes beyond the reasonable control of the affected Party, including fire, floods,
pandemic, epidemic, embargoes, war, acts of war (whether war is declared or not), acts of terrorism
insurrections, riots, civil commotions, strikes, lockouts or other labor disturbances, acts of God
or acts, omissions or delays in acting by any governmental authority or the other Party; provided,
however, that the Party so affected shall use reasonable commercial efforts to avoid or remove such
causes of nonperformance, and shall continue performance hereunder with reasonable dispatch
whenever such causes are removed. Each Party shall provide the other Party with prompt written
notice of any delay or failure to perform that occurs by reason of force majeure. The Parties
shall mutually seek a resolution of the delay or the failure to perform as noted above.

27

 

          10.6. Independent Contractors. It is understood and agreed that the relationship
between the Parties hereunder is that of independent contractors and that nothing in this Agreement
shall be construed as authorization for either Regeneron or Company to act as agent for the other.

          10.7. Headings. The captions or headings of the sections or other subdivisions hereof
are inserted only as a matter of convenience or for reference and shall have no effect on the
meaning of the provisions hereof.

          10.8. Entire Agreement. The Parties acknowledge that this Agreement (together with
the confidentiality agreement dated ******************* sets forth the entire Agreement and
understanding of the Parties as to the subject matter hereof and each Party confirms that it is not
relying on any representations, warranties or covenants of the other Party except as specifically
set out in this Agreement. This Agreement shall not be subject to any change or modification except
by the execution of a written instrument subscribed to by the Parties. All other previous or
currently existing agreements and understandings or other arrangements of any kind with respect to
the said subject matter shall be canceled and superseded completely by this Agreement as of the
date hereof. Nothing in this Agreement is intended to limit or exclude any liability for fraud. All
Schedules and Exhibits referred to in this Agreement are intended to be and are hereby specifically
incorporated into and made part of this Agreement. In the event of any inconsistency between any
such Schedules or Exhibits and this Agreement, the terms of this Agreement shall govern.

          10.9. No Implied Waivers; Rights Cumulative. No failure on the part of Regeneron or
Company to exercise, and no delay in exercising, any right, power, remedy or privilege under this
Agreement, or provided by statute or at law or in equity or otherwise, shall impair, prejudice or
constitute a waiver of any such right, power, remedy or privilege or be construed as a waiver of
any breach of this Agreement or as an acquiescence therein. To be effective any waiver must be in
writing. No right, power, remedy or privilege herein conferred upon or reserved to a Party is
intended to be exclusive of any other right, power, remedy or privilege, and each and every right,
power, remedy and privilege of a Party pursuant to this Agreement or now or hereafter existing at
law or in equity shall to the extent permitted by law be cumulative, concurrent and in addition to
every other right, power, remedy or privilege pursuant to this Agreement or now or hereafter
existing at law or in equity.

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

          10.11. Execution in Counterparts; Facsimile Signatures. This Agreement may be
executed in counterparts, each of which counterparts, when so executed and delivered, shall be
deemed to be an original, and all of which counterparts, taken together, shall constitute one and
the

28

 

same instrument even if both Parties have not executed the same counterpart. Signatures
provided by facsimile transmission shall be deemed to be original signatures.

          10.12. Construction. Except where the context requires otherwise, whenever used the
singular includes the plural, the plural includes the singular, the use of any gender is applicable
to all genders and the word “or” has the inclusive meaning represented by the phrase “and/or”.
Whenever this Agreement refers to a number of days, unless otherwise specified, such number refers
to calendar days. The term “including” or “includes” as used in this Agreement means including,
without limiting the generality of any description preceding such term. The wording of this
Agreement shall be deemed to be the wording mutually chosen by the Parties and no rule of strict
construction shall be applied against any Party. 

          10.13. No Benefit to Third Parties. The provisions of this Agreement are for the sole
benefit of the Parties and their successors and permitted assigns, and they shall not be construed
as conferring any rights in any other Persons except as otherwise expressly provided in Section
10.1.

          10.14 Limitation of Damages EXCEPT AS PROVIDED BELOW IN THIS SECTION 10.14, IN NO
EVENT SHALL REGENERON OR COMPANY BE LIABLE FOR SPECIAL, PUNITIVE, INDIRECT, INCIDENTAL OR
CONSEQUENTIAL DAMAGES (INCLUDING, WITHOUT LIMITATION, LOSS OF PROFITS) SUFFERED BY THE OTHER PARTY,
REGARLDESS OF THE THEORY OF LIABILITY AND REGLARDLESS OF ANY PRIOR NOTICE OF SUCH DAMAGES.
HOWEVER, NOTHING IN THIS SECTION 10.14 IS INTENDED TO LIMIT OR RESTRICT THE INDEMNIFICATION RIGHTS
AND OBLGIATIONS OF EITHER PARTY HEREUNDER WITH RESPECT TO THIRD-PARTY CLAIMS. MOREOVER, NOTHING IN
THIS SECTION 10.14 IS INTENDED TO LIMIT OR RESTRICT ANY LIABILITY FOR FRAUD OR ANY LIABILITY
ARISING FROM A BREACH OF SECTION 2.6 OR 5.4.

          10.15 Further Assurance. Each Party shall perform all further acts and things and
execute and deliver such further documents as may be necessary or as the other Party may reasonably
require to implement or give effect to this Agreement.

          IN WITNESS WHEREOF, the Parties have executed this Agreement as of the Effective Date.

	 	 	 	 	 	 	 
	 	 	REGENERON PHARMACEUTICALS, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Murray A. Goldberg
 

	 	 
	 

	 	Name:
	 	Murray A. Goldberg	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:
	 	 Senior Vice President, Finance & Administration and Chief Financial Officer	 	 
	 

	 	 	 	 	 	 

29

 

	 	 	 	 	 	 	 
	 	 	ASTELLAS PHARMA INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:

Name:
	 	/s/ Toshinari Tamura, Ph.D.
 

Toshinari Tamura, Ph.D.
	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:
	 	Representative Director, Executive
Vice President and Chief Science Officer	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 		 	 

30

 

EXHIBIT A

REGENERON KNOW-HOW AND MICE

************************

31

 

EXHIBIT B

REGENERON PATENT RIGHTS

	 	 	 
	Patent No.:
	 	6,586,251
	USSN:
	 	09/732,234
	Inventors:
	 	Economides, Murphy, Valenzuela, Yancopoulos
	Title:
	 	Methods of Modifying Eukaryotic Cells
	Filing Date:
	 	7 Dec 2000
	 
	 	 
	Patent No.:
	 	6,596,541
	USSN:
	 	09/784,859
	PCT:
	 	2003/6275
	Inventors:
	 	Murphy, Yancopoulos
	Title:
	 	Methods of Modifying Eukaryotic Cells
	Filing Date:
	 	16 Feb 2001 (continuation-in-part of 09/732,234)
	 
	 	 
	Patent No.:
	 	US 7,105,348
	USSN:
	 	10/076,840
	Inventors:
	 	Murphy, Yancopoulos
	Title:
	 	Methods of Modifying Eukaryotic Cells
	Filing Date:
	 	15 Feb 2002
	 
	 	 
	780D NZ
	 	Patent No. 527629
	 
	 	Granted 7 July 2005
	 
	 	 
	780D SG
	 	Patent No. 100103
	 
	 	Granted 30 Nov 2005
	 
	 	 
	780D SA
	 	Patent No. 2003/3129
	 
	 	Granted 29 Sept 2005

*****************************

32

 

EXHIBIT C

LETTER AGREEMENT WITH APPROVED THIRD PARTIES

Regeneron Pharmaceuticals, Inc.

777 Old Saw Mill River Road

Tarrytown, New York USA 10591

Ladies and Gentlemen:

          In connection with the [      ] agreement (the “Agreement”) dated [      ] between [      ] (“Service
Provider”), a [      ], with principal offices located at [      ] and [ASTELLAS] (“Astellas”), a [      ] with
principal offices located at [      ], Service Provider hereby enters into the following agreement with
Regeneron Pharmaceuticals, Inc. (“Regeneron”), a New York corporation, with principal offices
located at 777 Old Saw Mill River Road, Tarrytown, New York USA 10591:

	 	1)	 	Service Provider acknowledges that in connection with the Agreement it shall be
receiving (i) confidential and proprietary genetically modified mice owned by Regeneron
(referred to as “Regeneron Mice”), [(ii) ********************* (referred to as “Mice
Materials”)] and (iii) Regeneron’s confidential information related to the breeding of
Regeneron Mice and information from breeding Regeneron Mice (referred to as “Regeneron
Information”).
	 
	 	2)	 	[Service Provider agrees that it shall not use the Regeneron Mice for any
purposes other than to breed the Mice solely by means of breeding Regeneron Mice with
other Regeneron Mice solely in accordance with the breeding practices supplied by
Astellas.] [IF APPLICABLE]
	 
	 	3)	 	Service Provider agrees that Regeneron retains all right, title and interest in
the Regeneron Mice and Mice Materials. Without limiting the foregoing, Service
Provider hereby assigns to Regeneron any right, title and interest in the Regeneron
Mice and Mice Materials. Service Provider agrees to execute any and all further
instruments, forms of assignments and other documents, and to take such further actions
as Regeneron may request, in order to transfer all of Service Provider’s rights, if
any, in the Regeneron Mice and Mice Materials to Regeneron without additional
consideration.
	 
	 	4)	 	Service Provider agrees that it has no right to use the Regeneron Mice or Mice
Materials to discover, develop or otherwise make improvements to the Regeneron Mice or
Mice Materials (referred to as “Mice Inventions”). Accordingly, Service Provider shall
promptly disclose to Regeneron, in writing, any Mice Inventions and shall, and hereby
does, assign, all right, title, and interest it has in Mice Inventions without
additional compensation.
	 
	 	5)	 	Service Provider agrees that it: (a) will use diligent efforts to ensure that
the Regeneron Mice do not come into contact with any mice other than Regeneron Mice;
and, in particular, will not intentionally or recklessly breed Regeneron Mice with any
mice

33

 

	 		 	other than Regeneron Mice; (b) will not make any heritable genetic modifications to the
Regeneron Mice; (c) will not derive embryonic or other stem cells from the Regeneron
Mice or other Mice Material that could be used to make Regeneron Mice; (d) will not use
Regeneron Mice or Mice Materials to manufacture or produce products for sale; and (e)
will not use Mice Materials to create Regeneron Mice, mice or any transgenic organism.
	 
	 	6)	 	Service Provider agrees to keep Regeneron Information confidential and not
disclose to any third party or use for any purpose other than the performance of the
Agreement.
	 
	 	7)	 	Service Provider will not distribute or allow the transfer of Regeneron Mice to
any third party other than Astellas or its Affiliates and will destroy all Regeneron
Mice and Mice Materials in its possession within five (5) business days after notice
from Astellas.
	 
	 	8)	 	This letter agreement shall be construed and the rights of the parties hereto
shall be determined according to the laws of the State of New York notwithstanding any
provisions governing conflict of laws under such New York law to the contrary and
without giving effect to the United Nations Convention on Contracts for the
International Sale of Goods.
	 
	 	9)	 	This letter agreement may be executed in counterparts, each of which
counterpart, when so executed and delivered, shall be deemed to be an original, and all
of which counterparts, taken together, shall constitute one and the same instrument
even if both parties have not executed the same counterpart. Signatures provided by
facsimile transmission shall be deemed to be original signatures.
	 
	 	10)	 	For the avoidance of doubt, it is understood that Regeneron shall not be
responsible for Astellas’s performance of its obligations under the Agreement and
Regeneron shall have no liability or responsibilities under the Agreement.

     IN WITNESS WHEREOF, the parties have caused a duly authorized representative to execute this
letter agreement as of the date set forth below.

	 	 	 	 	 	 	 	 	 
	[                      ]	 	 	 	REGENERON PHARMACEUTICALS, INC.
	 
	 	 	 	 	 	 	 	 
	By:

	 	 	 	 	 	By:	 	 
	 

	 	 
	 	 	 	 	 	 
	Name:

	 	 	 	 	 	Name:	 	 
	 

	 	 
	 	 	 	 	 	 
	Title:

	 	 	 	 	 	Title:	 	 
	 

	 	 
	 	 	 	 	 	 
	Date:

	 	 	 	 	 	Date:	 	 
	 

	 	 
	 	 	 	 	 	 

34

 

EXHIBIT D

PRESS RELEASE

ASTELLAS LICENSES REGENERON’S VELOCIMMUNE®

TECHNOLOGY FOR DISCOVERING

HUMAN MONOCLONAL ANTIBODIES

Tokyo, Japan and Tarrytown, NY — (March xx, 2007) — Astellas Pharma Inc. (“Astellas”;
Headquarters: Tokyo, Japan; President & CEO: Masafumi Nogimori) and Regeneron Pharmaceuticals, Inc.
(Nasdaq: REGN) announced today that they have entered into a non-exclusive license agreement that
will allow Astellas to utilize Regeneron’s VelocImmune® technology in its internal
research programs to discover human monoclonal antibody product candidates.

Astellas will pay $20 million upfront and will make up to five additional annual payments of $20
million, subject to the ability to terminate the agreement after making the first three additional
payments. Upon commercialization of any antibody products discovered utilizing VelocImmune,
Astellas will pay a mid-single-digit royalty on product sales. Astellas will report the $80
million license fee for the initial four years as an R&D expense on its income statements for the
fiscal year ending March 31, 2007.

"VelocImmune is the centerpiece of Regeneron’s suite of technologies for the discovery and
development of fully human monoclonal antibodies,” said George D. Yancopoulos, M.D., Ph.D.,
President of Regeneron Research Laboratories and Regeneron’s Chief Scientific Officer. “We are
pleased that Astellas, a company with a clear strategic commitment to developing therapeutic
antibodies, has selected the VelocImmune platform for its internal development programs.”

“We are excited about this license agreement with Regeneron,” said Toshinari Tamura, Ph.D.,
Astellas’ Executive Vice President and Chief Scientific Officer. “As described in our recently
announced medium term plan, Astellas is building a new technological platform for the development
of antibody drugs, and VelocImmune will become an important cornerstone for our R&D capabilities.”

35

 

VelocImmune 

Regeneron’s VelocImmune technology offers the potential to increase dramatically the speed and
efficiency of discovering fully-human, therapeutic monoclonal antibodies. The VelocImmune platform
generates fully human monoclonal antibodies (hMAbs) to address clinically relevant targets of
therapeutic interest. The VelocImmune mouse, unlike other hMAb mice, mounts a robust immune
response that is virtually indistinguishable from that of a wild type mouse, resulting in a
reliable and efficient platform for discovering fully human monoclonal antibodies.

About Astellas Pharma Inc.

Astellas Pharma Inc., located in Tokyo, Japan, is a pharmaceutical company dedicated to improving
the health of people around the world through the provision of innovative and reliable
pharmaceutical products. The organization is committed to becoming a global pharmaceutical company
by combining outstanding R&D and marketing capabilities and continuing to grow in the world
pharmaceutical market. For more information on Astellas Pharma Inc., please visit the company’s
website at http://www.astellas.com.

About Regeneron Pharmaceuticals, Inc.

Regeneron is a biopharmaceutical company that discovers, develops, and intends to commercialize
therapeutic medicines for the treatment of serious medical conditions. Regeneron has therapeutic
candidates in clinical trials for the potential treatment of cancer, eye diseases, and inflammatory
diseases, and has preclinical programs in other diseases and disorders.

Regeneron has developed and validated a suite of inter-related technology platforms —
VelociGene®, VelociMouse®, and VelocImmune — that the Company believes can
increase the speed and efficiency through which human monoclonal antibody therapeutics may be
discovered and validated. These discovery platforms are designed to identify specific genes of
therapeutic interest for a particular disease or cell type and validate targets through
high-throughput production of mammalian models. VelociGene uses a proprietary process to create
genetic modifications in a mouse in a precise and high-throughput manner and was recently selected
by the National Institutes of Health for use in its Knockout Mouse Project. VelociGene allows
Regeneron to produce mouse embryonic stem (ES) cells rapidly for elucidating the function of the
altered genes. VelociMouse allows Regeneron scientists to generate mammalian models directly from
ES cells without the need for chimeras or breeding. VelocImmune provides antibodies that address
the targets identified in the mammalian models that can be

36

 

developed as
potential therapeutics. For more information on Regeneron, please visit the company’s website at
www.regeneron.com.

This news release discusses historical information and includes forward-looking statements about
Regeneron and its products, programs, finances, and business, all of which involve a number of
risks and uncertainties, such as risks associated with preclinical and clinical development of our
drug candidates, determinations by regulatory and administrative governmental authorities which may
delay or restrict our ability to continue to develop or commercialize our drug candidates,
competing drugs that are superior to our product candidates, unanticipated expenses, the
availability and cost of capital, the costs of developing, producing, and selling products, the
potential for any collaboration agreement, including our agreements with the sanofi-aventis Group
and Bayer HealthCare, to be canceled or to terminate without any product success, risks associated
with third party intellectual property, and other material risks. A more complete description of
these and other material risks can be found in Regeneron’s filings with the United States
Securities and Exchange Commission (SEC), including its Form 10-K for the year ended December 31,
2006. Regeneron does not undertake any obligation to update publicly any forward-looking
statement, whether as a result of new information, future events, or otherwise unless required by
law.

###

	 	 	 
	Regeneron Contacts:
	 	 
	Media:

	 	Investor Relations:
	Lauren Tortorete

	 	Charles Poole
	Tel: 212 845 5609

	 	Tel: 914 345 7640
	ltortorete@biosector2.com

	 	 charles.poole@regeneron.com

Astellas Contact:

Akihiro Tanaka, Ph.D.

VP, Corporate Communications

Astellas Pharma Inc.

Tel.: +81-3-3244-3201

37

 

SCHEDULE 4.2

SAMPLE ROYALTY CALCULATION

*******************

38

 

SCHEDULE 5.2

******************

39

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