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Exhibit 10.26    
    

 
 

RETENTION AND SEVERANCE AGREEMENT    
    

 THIS
AGREEMENT, dated June 1, 2004, is made by and between ADESA, Inc., a Delaware corporation (the "Company"), and Brenda J. Flayton (the "Executive"). 

 WHEREAS,
the Company considers it essential to the best interests of its stockholders to foster the continued employment of the Executive. 

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

        1.    Defined Terms.    The definitions of capitalized terms used in this Agreement are provided in the last Section
hereof. 

        2.    Term of Agreement.    The Term of this Agreement shall commence on the date hereof and shall continue in effect
through June 1, 2009. 

        3.    Company's Covenants Summarized.    In order to induce the Executive to remain in the employ of the Company and
in consideration of the Executive's covenants set forth in Sections 4 and 7 hereof, the Company agrees, under the conditions described herein, to pay the Executive the
Severance Payments. This Agreement shall not be construed as creating an express or implied contract of employment and, except as otherwise agreed in writing between the Executive and the Company, the
Executive shall not have any right to be retained in the employ of the Company. 

        4.    The Executive's Covenants.    The Executive agrees to abide by and perform the covenants set forth in
Section 7 below. 

        5.    Severance Payments.    

 If
the Executive's employment is terminated during the Term, other than (A) by the Company for Cause, (B) by reason of death or Disability, or (C) by the Executive
without Good Reason, and David G. Gartzke is not the Chief Executive Officer of the Company upon the Date of Termination, then the Company shall pay the Executive the amounts, and provide the
Executive the benefits, described in this Section 5 ("Severance Payments"): 

        (A)  In
lieu of any further salary payments to the Executive for periods subsequent to the Date of Termination and in lieu of any severance benefit otherwise payable to the
Executive, the Company shall pay to the Executive a lump sum severance payment, in cash ("Cash Severance Payment"), equal to two times the sum of (i) the Executive's base salary as in effect
immediately prior to the Date of Termination or, if higher, in effect immediately prior to the first occurrence of an event or circumstance constituting Good Reason, and (ii) the Executive's
target annual bonus under any annual bonus or annual incentive plan maintained by the Company in respect of the fiscal year in which occurs the Date of Termination or, if higher, the fiscal year in
which occurs the first event or circumstance constituting Good Reason. 

        (B)   Notwithstanding
the foregoing provisions of this Section 5, the Company shall not be obligated to pay the Severance Payments to the Executive unless the Executive
shall have signed a release of claims (other than with respect to claims arising under this Agreement, that certain letter from the Company to the Executive dated the date hereof, (the "Employment
Letter") or any documents evidencing grants or awards of equity based compensation, existing rights to indemnification or coverage under the Company's liability 

112

 

insurance
policies, and rights under the Company's benefits plans not inconsistent with the terms of this Agreement) in favor of the Company in a form to be prescribed by the Board, and all applicable
rescission periods provided by law shall have expired. The Company shall pay the Cash Severance Payment to the Executive on or before the thirtieth day after the later of (i) the Date of
Termination, (ii) the date of the Notice of Termination, and (iii) the date upon which the conditions set forth in this Section 5(C) are satisfied. 

        6.    Termination Procedures.    

        6.1    Notice of Termination.    During the Term, any purported termination of the Executive's employment (other than
by reason of death) shall be communicated by written Notice of Termination from one party hereto to the other party hereto in accordance with Section 10 hereof. For purposes of this Agreement,
a "Notice of Termination" shall mean a notice which shall indicate the specific termination provision in this Agreement relied upon and shall set forth in reasonable detail the facts and circumstances
claimed to provide a basis for termination of the Executive's employment under the provision so indicated. 

        6.2    Date of Termination.    "Date of Termination," with respect to any purported termination of the Executive's
employment during the Term shall mean (i) if the Executive's employment is terminated for Disability, thirty (30) days after Notice of Termination is given (provided that the Executive
shall not have returned to the full-time performance of the Executive's duties during such thirty (30) day period), and (ii) if the Executive's employment is terminated for
any other reason, the date specified in the Notice of Termination (which, in the case of a termination by the Executive, shall not be less than fifteen (15) days from the date such Notice of
Termination is given). 

        7.    Covenants.    

        (A)    Nondisclosure.    The Executive acknowledges that he has received and will continue to receive and/or
contribute to the production of confidential and proprietary information relating to the Company and its business, including but not limited to information regarding the Company's organization,
finances, strategies, business or other plans, operations, advertising, marketing, product development, costs and pricing, employees, trade practices, research data, reports or records, and financial
or other business information and information regarding the Company's past, current or potential customers, providers and suppliers, the use or disclosure of which might reasonably be construed to be
contrary to the interests of the Company, or to place it at a competitive disadvantage ("Confidential Information"). The Company considers the Confidential Information to be integral to the operations
and success of the Company, and the Executive understands and agrees that the Confidential Information is and shall remain the sole and exclusive property of the Company. During the Term and at all
times thereafter, the Executive shall not use Confidential Information on his own behalf, or on behalf of any third party, or disclose any Confidential Information to other persons or entities except
as is necessary for the performance of the Executive's duties with the Company or has been expressly permitted in writing by the Company; provided,  however,
 the foregoing shall not apply to any information which is in or has entered the public domain (other than by acts by the Executive or
representatives of the Executive in violation of this Agreement). Upon termination of Executive's employment with the Company, Executive shall return to the Company all records, correspondence,
compositions, articles, writing, programs, codes, devices, equipment, prototypes and other materials or documents (electronic, paper or otherwise) which incorporate, embody or disclose any
Confidential Information (whether written, prepared or made by Executive or others) including all copies or memorializations thereof. 

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        (B)    Injunctive Relief.    The Executive agrees that any breach of the foregoing Section 7(A) would result in
immediate and irreparable injury to the Company. By reason thereof, the Executive agrees that if she were to breach, or threaten to breach, the foregoing Section 7(A), the Company shall be
entitled to seek injunctive relief from any court of competent jurisdiction restraining the Executive from committing or continuing any such breach. 

        (C)    Nondisparagement.    Each of Executive and the Company (for purposes hereof, the Company shall mean only the
executive officers and directors thereof and not any other employees) agrees not to make any public statements that disparage or damage the business or reputation of the other party or, in the case of
the Company, its respective affiliates, employees, officers, directors, products or services. Nothing in this Section 7(C) is intended to: (1) undermine obligations the Executive or the
Company may have to comply with applicable laws, rules and/or regulations, or (2) prohibit the Executive or the Company from providing truthful testimony or truthfully responding to lawful
inquiries by any governmental or regulatory entity (in which event, in the case of any such inquiry directed to a party, the party shall notify the other party as promptly as practicable after
receiving any such request and, to the extent possible, prior to providing any such testimony). 

        8.    No Mitigation.    The Company agrees that, if the Executive's employment with the Company terminates during the
Term, the Executive is not required to seek other employment or to attempt in any way to reduce any amounts payable to the Executive by the Company pursuant to Section 5 hereof. Further, the
amount of any payment or benefit provided for in this Agreement shall not be reduced by any compensation earned by the Executive as the result of employment by another employer or by retirement
benefits. 

        9.    Successors; Binding Agreement.    

        9.1  In
addition to any obligations imposed by law upon any successor to the Company, the Company will require any successor (whether direct or indirect, by purchase, merger,
consolidation or otherwise) to all or substantially all of the business and/or assets of the Company to expressly assume and agree to perform this Agreement in the same manner and to the same extent
that the Company would be required to perform it if no such succession had taken place. Failure of the Company to obtain such assumption and agreement prior to the effectiveness of any such succession
shall be a breach of this Agreement and shall entitle the Executive to compensation from the Company in the same amount and on the same terms as the Executive would be entitled to hereunder if the
Executive were to terminate the Executive's employment for Good Reason. 

        9.2  This
Agreement shall inure to the benefit of and be enforceable by the Executive's personal or legal representatives, executors, administrators, successors, heirs,
distributees, devisees and legatees. If the Executive shall die while any amount would still be payable to the Executive hereunder (other than amounts which, by their terms, terminate upon the death
of the Executive) if the Executive had continued to live, all such amounts, unless otherwise provided herein, shall be paid in accordance with the terms of this Agreement to the executors, personal
representatives or administrators of the Executive's estate. 

        10.    Notices.    For the purpose of this Agreement, notices and all other communications provided for in the
Agreement shall be in writing and shall be deemed to have been duly given when delivered or mailed by United States registered mail, return receipt requested, postage prepaid, addressed, if to the
Executive, to the address inserted below the Executive's signature on the final page hereof and, if to the Company, to the address set forth below, or 

114

 

to
such other address as either party may have furnished to the other in writing in accordance herewith, except that notice of change of address shall be effective only upon actual receipt: 

To
the Company: 

ADESA, Inc.

13085 Hamilton Crossing Blvd.

Suite 500

Carmel, Indiana 46032

Attention: Chief Executive Officer 

        11.    Miscellaneous.    No provision of this Agreement may be modified, waived or discharged unless such waiver,
modification or discharge is agreed to in writing and signed by the Executive and such officer as may be specifically designated by the Board. No waiver by either party hereto at any time of any
breach by the other party hereto of, or of any lack of compliance with, any condition or provision of this Agreement to be performed by such other party shall be deemed a waiver of similar or
dissimilar provisions or conditions at the same or at any prior or subsequent time. This Agreement supersedes any other agreements or representations, oral or otherwise, express or implied, with
respect to the subject matter hereof which have been made by either party; except the Employment Letter. The validity, interpretation, construction and performance of this Agreement shall be governed
by the laws of the State of Indiana. Any payments provided for hereunder shall be paid net of any applicable withholding required under federal, state or local law and any additional withholding to
which the Executive has agreed. The obligations of the Company and the Executive under this Agreement which by their nature may require either partial or total performance after the expiration of the
Term (including, without limitation, those under Sections 6 and 7 hereof) shall survive such expiration. 

        12.    Validity.    The invalidity or unenforceability of any provision of this Agreement shall not affect the
validity or enforceability of any other provision of this Agreement, which shall remain in full force and effect. 

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

        14.    Settlement of Disputes; Arbitration.    Any dispute or controversy arising under or in connection with the
entitlement to or the payment of Severance Payment under this Agreement shall be settled exclusively by arbitration in Indianapolis, Indiana in accordance with the rules of the American Arbitration
Association then in effect; provided, however, that the evidentiary standards set forth in this Agreement shall apply. Judgment may be entered on the arbitrator's award in any court having
jurisdiction. In any such arbitration proceeding in which it is determined that the Executive has established a reasonable basis for entitlement to or the payment of the disputed Severance Payments,
the Company shall bear the actual out of pocket costs and expenses of the Executive with respect to such arbitration proceeding, including without limitation, the reasonable attorneys' fees of the
Executive. 

        15.    Definitions.    For purposes of this Agreement, the following terms shall have the meanings indicated below: 

        (A)  "Board"
shall mean the Board of Directors of the Company. 

        (B)   "Cause"
for termination by the Company of the Executive's employment shall mean (i) the willful and continued failure by the Executive to substantially perform
the Executive's duties with the Company (other than any such failure resulting from the 

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Executive's
incapacity due to physical or mental illness or any such failure after the issuance of a Notice of Termination for Good Reason by the Executive pursuant to Section 6.1 hereof) that
has not been cured within 30 days after a written demand for substantial performance is delivered to the Executive by the Chief Executive Officer of the Company, which demand specifically
identifies the manner in which the Chief Executive Officer believes that the Executive has not substantially performed the Executive's duties, (ii) the willful engaging by the Executive in
wrongful conduct which is demonstrably and materially injurious to the Company or its subsidiaries, monetarily or otherwise, or (iii) conviction of or entrance of a plea of guilty or  nolo contendere to a felony. For purposes of clauses (i) and (ii) of this definition, no act, or failure to act, on the Executive's part
shall be deemed "willful" unless done, or omitted to be done, by the Executive not in good faith and without reasonable belief that the Executive's act, or failure to act, was in the best interest of
the Company. For purposes of the preceding sentence, any act or failure to act, based upon authority given pursuant to a resolution duly adopted by the Board or based upon the advice of counsel for
the Company shall be conclusively presumed to be done, or omitted to be done, by the Executive in good faith and in the best interests of the Company. 

        (C)   "Company"
shall mean ADESA Corporation and shall include any successor to its business and/or assets which assumes and agrees to perform this Agreement by operation of
law, or otherwise. 

        (D)  "Date
of Termination" shall have the meaning set forth in Section 6.2 hereof. 

        (E)   "Disability"
shall be deemed the reason for the termination by the Company of the Executive's employment, if, as a result of the Executive's incapacity due to physical
or mental illness, the Executive shall have been absent from the full-time performance of the Executive's duties with the Company for a period of six (6) consecutive months, the
Company shall have given the Executive a Notice of Termination for Disability, and, within thirty (30) days after such Notice of Termination is given, the Executive shall not have returned to
the full-time performance of the Executive's duties. 

        (F)   "Executive"
shall mean the individual named in the first paragraph of this Agreement. 

        (G)  "Good
Reason" for termination by the Executive of the Executive's employment shall mean the occurrence (without the Executive's express written consent) of any one of
the following acts by the Company, or failures by the Company to act, unless such act or failure to act is corrected prior to the Date of Termination specified in the Notice of Termination given in
respect thereof: 

        (I)    a
substantial adverse alteration in the nature or status of the Executive's duties or responsibilities, including, without limitation, that the Executive shall no longer
report to either the Chief Executive Officer or the Chairman of the Board of the Company or that the Executive shall no longer be Chief Administrative Officer of the Company; 

        (II)   a
substantial reduction in the Executive's compensation or benefits, other than pursuant to an across-the-board reduction similarly affecting
the compensation and benefits of all of the Company's executive officers; 

        (III)  any
requirement that the Executive be based anywhere more than 50 miles from Indianapolis, Indiana; or 

116

 

        (IV)  any
purported termination of the Executive's employment which is not effected pursuant to a Notice of Termination satisfying the requirements of Section 6.1
hereof; for purposes of this Agreement, no such purported termination shall be effective. 

 The
Executive's right to terminate the Executive's employment for Good Reason shall not be affected by the Executive's incapacity due to physical or mental illness. The Executive's
continued employment shall not constitute consent to, or a waiver of rights with respect to, any act or failure to act constituting Good Reason hereunder. 

        (H)  "Notice
of Termination" shall have the meaning set forth in Section 6.1 hereof. 

        (I)    "Severance
Payments" shall have the meaning set forth in Section 5 hereof. 

        (J)    "Term"
shall mean the period of time described in Section 2 hereof (including any extension, continuation or termination described therein). 

 IN
WITNESS WHEREOF, the parties have executed this Agreement as of the date first above written. 

	 	 	ADESA, Inc.
	

 	
 	

By:	
 	

/s/  DAVID G. GARTZKE      
 Name: David G. Gartzke

Title: Chief Executive Officer
	

 	
 	

 	
 	

/s/  BRENDA J. FLAYTON      
 Brenda J. Flayton
	

 	
 	

 	
 	

Address: 16335 Lapaloma Court

                Noblesville, IN 46060

117

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Exhibit 10.26

RETENTION AND SEVERANCE AGREEMENTQuickLinks
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EXHIBIT 10.10  

AMENDMENT NO. 1 TO ASSET PURCHASE AGREEMENT  

        Amendment No. 1 dated February 9, 2005 (the "Amendment") to Asset Purchase Agreement dated January 31, 2005 (the "Agreement"), by and between
Celldex Therapeutics, Inc., a Delaware corporation, including its assignees (the "Acquirer"), and Alteris Therapeutics, Inc., a Delaware corporation (the "Transferor"; and together with
the Acquirer, each a "Party" and, collectively, the "Parties"). 

W I T N E S S E T H:  

        WHEREAS, the Parties have previously entered into the Agreement providing for the acquisition by the Acquirer of
substantially all of the assets of Transferor and the assumption by the Acquirer of certain liabilities of the Transferor pursuant to the terms and conditions set forth in the Agreement; and 

        WHEREAS, the Parties desire to amend certain provisions of the Agreement. 

        NOW, THEREFORE, in consideration of the premises and in consideration of the representations, warranties, and covenants herein contained,
and for other good and valuable consideration described herein, the receipt and sufficiency of which are hereby acknowledged, the Parties hereto agree as follows: 

ARTICLE I

DEFINITIONS  

        Section 1.1 Definitions. Unless otherwise defined herein, all capitalized terms shall have the meanings
ascribed to them in the Agreement. 

ARTICLE II

AMENDMENTS  

        Section 2.1 Closing. Section 4.1 of the Agreement shall be amended to read in its entirety as
follows: 

        "Section 4.1
Closing. Subject to the terms and conditions of this Agreement, the closing of the purchase and sale of the Acquired
Assets (the "Closing") will be at 10:00 A.M. Eastern Time at the offices of Satterlee Stephens Burke & Burke LLP 230 Park Avenue, 11th Floor, New York, NY 10169, or at such other
location agreed to by the Acquirer and the Transferor, on the same Business Day as the date of the completion of the Acquirer's IPO, after the satisfaction or waiver of the last to be satisfied or
waived of the conditions set forth in Articles IX and X (other than those conditions that by their nature are to be satisfied at the Closing) (the date of the Closing being herein referred to as the
"Closing Date")." 

        IN WITNESS WHEREOF, each of the Parties has caused this Amendment to be executed by its officers thereunto duly authorized, all as of the
day and year first above written. 

	 	 	CELLDEX THERAPEUTICS, INC.
	

 	
 	

By:	
 	

 	
 	

 
	 	 	 	 	

	 	 	 	 	Name:	 	Michael W. Fanger
	 	 	 	 	Title:	 	President and Chief Executive Officer
	

 	
 	
ALTERIS THERAPEUTICS, INC.
	

 	
 	

By:	
 	

 	
 	

 
	 	 	 	 	

	 	 	 	 	Name:	 	Dr. Albert J. Wong
	 	 	 	 	Title:	 	Interim President

ASSET PURCHASE AGREEMENT

  

  

by and between

 

 

CELLDEX THERAPEUTICS, INC.

("Acquirer")

  

and

  

ALTERIS THERAPEUTICS, INC.

("Transferor")

  

  

Dated as of January 31, 2005  

  

 
 

TABLE OF CONTENTS    
    

	 
	 
	 	Page

	ARTICLE I	DEFINITIONS	 	1
	 	 	 	 
	 	Section 1.1	Definitions	 	1
	 	 	 	 
	ARTICLE II	ACQUISITION AND TRANSFER OF ACQUIRED ASSETS; ASSUMPTION OF LIABILITIES	 	6
	 	 	 	 
	 	Section 2.1	Acquisition and Transfer of Acquired Assets	 	6
	 	Section 2.2	Assumption of Liabilities	 	8
	 	 	 	 
	ARTICLE III	ACQUISITION PRICE PAYMENT OF ACQUISITION PRICE	 	8
	 	 	 	 
	 	Section 3.1	Acquisition Price; Payment of Acquisition Price	 	8
	 	Section 3.2	Election Option Limitation	 	10
	 	 	 	 
	ARTICLE IV	CLOSING	 	10
	 	 	 	 
	 	Section 4.1	Closing	 	10
	 	Section 4.2	Deliveries by the Transferor at the Closing	 	10
	 	Section 4.3	Deliveries by the Acquirer at the Closing	 	11
	 	Section 4.4	Further Assurances and Agreements	 	11
	 	 	 	 
	ARTICLE V	RESERVED	 	12
	 	 	 	 
	 	 	 	 

i

 

	ARTICLE VI	REPRESENTATIONS OF THE TRANSFEROR	 	12
	 	 	 	 
	 	Section 6.1	Corporate Power and Authority	 	12
	 	Section 6.2	Existence and Good Standing	 	12
	 	Section 6.3	Authority; No Consents	 	12
	 	Section 6.4	Title to Assets, Properties and Rights and Related Matters	 	12
	 	Section 6.5	Licenses and Permits; Compliance with Law	 	13
	 	Section 6.6	Assigned Contracts	 	13
	 	Section 6.7	Real Property—Owned or Leased	 	14
	 	Section 6.8	Litigation	 	14
	 	Section 6.9	Intellectual Property	 	14
	 	Section 6.10	Material In-Licensed IP	 	15
	 	Section 6.11	Environmental Matters	 	16
	 	Section 6.12	Employees; Employee Benefit Plans	 	16
	 	Section 6.13	Broker's or Finder's Fees	 	16
	 	Section 6.14	Insurance Coverage	 	16
	 	Section 6.15	Accounts and Notes Receivable	 	17
	 	Section 6.16	Preclinical Testing and Clinical Trials	 	17
	 	Section 6.17	Financial Statements	 	17
	 	Section 6.18	Taxes	 	17
	 	Section 6.19	Absence of Certain Changes and Events	 	18
	 	Section 6.20	No Undisclosed Liabilities	 	18
	 	Section 6.21	Disclosure	 	18
	 	Section 6.22	Affiliates	 	18
	 	 	 	 
	ARTICLE VII	REPRESENTATIONS OF THE ACQUIRER	 	18
	 	 	 	 
	 	Section 7.1	Existence and Good Standing; Authorization and Validity of Agreement	 	18
	 	Section 7.2	SEC Filings; Financial Statements; Compliance	 	19
	 	Section 7.3	Shares	 	19
	 	Section 7.4	Capitalization	 	20
	 	Section 7.5	Broker's or Finder's Fees	 	20
	 	 	 	 
	 	 	 	 

ii

 

	ARTICLE VIII	ADDITIONAL AGREEMENTS	 	20
	 	 	 	 
	 	Section 8.1	Operation of Business	 	20
	 	Section 8.2	Review of the Transferor	 	21
	 	Section 8.3	Access to Information; Further Action; Commercially Reasonable Efforts; Cooperation; Consents and Approvals	 	21
	 	Section 8.4	Public Disclosure	 	23
	 	Section 8.5	Apportionment	 	23
	 	Section 8.6	Confidentiality	 	23
	 	Section 8.7	No Right to Continued Employment or Benefits	 	23
	 	Section 8.8	Cooperation	 	24
	 	Section 8.9	Consents; Releases	 	24
	 	Section 8.10	Possession of the Assets	 	24
	 	Section 8.11	Non-Solicitation	 	24
	 	Section 8.12	Ownership of Intellectual Property Developed by Transferor Employees	 	24
	 	Section 8.13	Diligent Efforts	 	24
	 	Section 8.14	No Issuance of Additional Shares	 	25
	 	Section 8.15	SEC Rule 144 Reporting	 	25
	 	 	 	 
	ARTICLE IX	CONDITIONS TO THE OBLIGATIONS OF THE ACQUIRER	 	25
	 	 	 	 
	 	Section 9.1	Conditions to the Acquirer's Obligations	 	25
	 	 	 	 
	ARTICLE X	CONDITIONS TO THE OBLIGATIONS OF THE TRANSFEROR	 	26
	 	 	 	 
	 	Section 10.1	Conditions to the Transferor's Obligations	 	26
	 	 	 	 
	ARTICLE XI	TERMINATION	 	27
	 	 	 	 
	 	Section 11.1	Events of Termination	 	27
	 	Section 11.2	Effect of Termination	 	28
	 	 	 	 
	 	 	 	 

iii

 

	ARTICLE XII	MISCELLANEOUS	 	28
	 	 	 	 
	 	Section 12.1	Expenses; Fees	 	28
	 	Section 12.2	Applicable Law	 	28
	 	Section 12.3	Jurisdiction; Waiver of Jury Trial	 	28
	 	Section 12.4	Captions; Headings	 	28
	 	Section 12.5	Notices	 	28
	 	Section 12.6	Assignment; Parties in Interest	 	29
	 	Section 12.7	Counterparts	 	29
	 	Section 12.8	Entire Agreement	 	29
	 	Section 12.9	Severability; Enforcement	 	30
	 	Section 12.10	Amendments; Waiver	 	30
	 	Section 12.11	No Strict Construction	 	30
	 	Section 12.12	Pronouns	 	30
	 	Section 12.13	No Third Party Beneficiaries	 	30
	 	Section 12.14	No Joint Venture	 	30
	 	Section 12.15	Specific Performance	 	30
	 	 	 	 
	 	 	Appendix A	Bill of Sale	 	 
	 	 	 	 
	 	 	Appendix B	Assignment and Assumption Agreement	 	 
	 	 	 	 
	 	 	Appendix C	Trademark Assignment Agreement	 	 
	 	 	 	 
	 	 	Appendix D	Assignment of Intangible Assets	 	 
	 	 	 	 
	 	 	Appendix E	Form of Opinion of Counsel to Transferor	 	 
	 	 	 	 
	 	 	Appendix F	Form of Consulting Agreement between Acquirer and Dr. Albert J. Wong
	 	 	 	 
	 	 	Appendix G	Form of Consulting Agreement between Acquirer and Dr. Donald M. O'Rourke
	 	 	 	 
	 	 	Appendix H	Form of Opinion of Counsel to Acquirer	 	 
	 	 	 	 
	 	 	Appendix I	Term Sheet for Sponsored Research Agreement	 	 
	 	 	 	 
	 	 	Appendix J	Balance Sheet of Transferor as at September 30, 2004	 	 
	 	 	 	 
	 	 	Appendix K	Transferor Affiliate Letter	 	 

iv

EXECUTION

COPY 

 
 

ASSET PURCHASE AGREEMENT    
    

        ASSET PURCHASE AGREEMENT (this "Agreement"), dated as of January 31, 2005 (the
"Execution Date"), by and between Celldex Therapeutics, Inc., a Delaware corporation (including its assignees, (the  "Acquirer"), and Alteris
Therapeutics, Inc., a Delaware corporation (the "Transferor"; and
together with the Acquirer, each, a "Party" and, collectively, the "Parties"). 

W I T N E S S E T H:  

        WHEREAS, the Acquirer and the Transferor are each engaged in a business that includes the research, development
and commercialization of therapeutic vaccines and other products for the treatment of cancer, autoimmune disorders and infectious diseases; and 

        WHEREAS, the Acquirer desires to acquire certain assets and to assume certain liabilities of the Transferor, and the Transferor desires to
transfer such assets and liabilities to the Acquirer on the terms and conditions set forth in this Agreement; and 

        WHEREAS, Transferor and Acquirer intend, by approving resolutions authorizing this Agreement, to adopt this Agreement as a plan of
reorganization within the meaning of Section 368(a) of the Code (as defined herein); 

        NOW, THEREFORE, in consideration of the premises and in consideration of the representations, warranties, and covenants herein contained,
and for other good and valuable consideration described herein, the receipt and sufficiency of which are hereby acknowledged, the Parties hereto agree as follows: 

 
 

ARTICLE I    
    
    DEFINITIONS    
    

        Section 1.1    Definitions.    As used in this Agreement, the following terms shall have the following
meanings: 

        "Acquired Assets" shall have the meaning set forth in Section 2.1(a). 

        "Acquirer" shall have the meaning set forth in the Preamble. 

        "Acquirer Closing Certificate" shall have the meaning set forth in Section 10.1(v). 

        "Acquisition Price" shall have the meaning set forth in Section 3.1(a). 

        "Affiliate" means, with respect to any specified Person, any other Person that directly, or indirectly through one or more intermediaries,
controls, is controlled by, or is under common control with, such specified Person. 

        "Agreement" shall have the meaning set forth in the Preamble, Agreement, the Patent Assignment Agreement and the Trademark Assignment
Agreement. 

        "Ancillary Agreements" means the Bill of Sale Agreement, the Assignment and Assumption Agreement, and the Trademark Assignment Agreement. 

        "Assigned Contracts" shall have the meaning set forth in Section 2.1(a)(iv). 

        "Assigned Intellectual Property" shall have the meaning set forth in Section 2.1(a)(vi). 

        "Assigned Permits" shall have the meaning set forth in Section 2.1(a)(v). 

        "Assumed Liabilities" shall have the meaning set forth in Section 2.2. 

        "Assignment and Assumption Agreement" shall have the meaning set forth in Section 4.2(i)(B). 

 

        "Bill of Sale" shall have the meaning set forth in Section 4.2(i)(A). 

        "Biologics License Application" or "BLA" is a request for permission from the FDA's Center
for Biologics Evaluation Research (CBER) to introduce or deliver for introduction, a biologic product into interstate commerce (21 CFR 601.2). 

        "Business" means any and all business activities of any kind that are currently being conducted by the Transferor. 

        "Business Day" means any day except a Saturday, a Sunday or other day on which commercial banks are required or authorized to close in New
Jersey, New York and Pennsylvania. 

        "Certificate" shall have the meaning set forth in Section 3.1(a). 

        "cGMPs" means current good manufacturing practices, as defined by the FDA in 21 CFR 210 and 211, which consist of regulations governing
the procedures and practices under which manufacturing is controlled and quality of manufacturing is assured. 

        "Charges" shall have the meaning set forth in Section 13.2. 

        "Closing" shall have the meaning set forth in Section 4.1. 

        "Closing Date" shall have the meaning set forth in Section 4.1. 

        "Code" means the Internal Revenue Code of 1986, as amended, together with the Treasury regulations promulgated thereunder. 

        "Common Stock" means the common stock, par value $.01 per share, of Acquirer. 

        "Consideration" shall have the meaning set forth in Section 3.1. 

        "Confidentiality Agreement" has the meaning given such term in Section 8.6. 

        "Copyrights" shall have the meaning set forth in Section 6.9(e). 

        "Data" means all data related to the Programs. 

        "Direct Costs" means the costs directly associated with supporting research, including personnel costs, materials, supplies, scientific
facilities charges and services from external contractors. 

        "Dollars" or "$" means the currency of the United States of America, unless otherwise
specified. 

        "Dr. Wong" shall have the meaning set forth in Section 4.4(d). 

        "Execution Date" shall have the meaning set forth in the Preamble. 

        "EGFRvIII" means the epidermal growth factor receptor (EGFR) variant represented by deletions of exons 2 through 7, variously referred to
as de2-7 EGFR, type II mutation of EGFR, EGFR mutant type II, EFGR mutant protein type II, and as further defined in US patents 5,212,290, 5,401,828, 5,981,725, 6,224,868 and 6,455,498. 

        "Encumbrances" means and includes interests, contractual rights, security interests, mortgages, liens, licenses, pledges, guarantees,
charges, easements, reservations, restrictions, clouds, equities, rights of way, options, rights of first refusal, comments, conditions, equitable interests, preference rights, rights of possession,
lease, tenancy, encroachment, infringement, interference, pre-emptive rights or other third-party claims of any kind (including any restriction on transfer, receipt of income, use,
possession or other attribute of ownership) and all other encumbrances, whether or not relating to the extension of credit or the borrowing of money. 

        "Environmental Laws" shall have the meaning set forth in Section 6.11. 

        "Equipment" means the equipment identified on Section 2.1 to the Transferor Disclosure Letter. 

2

 

        "Eisai" means Eisai Co. Ltd., a Japanese corporation, and its subsidiaries and Affiliates. 

        "ERISA" means the Employee Retirement Income Security Act of 1974, as amended, together with the rules and regulations promulgated
thereunder. 

        "Exchange Act" means the Securities Exchange Act of 1934, as amended. 

        "Excluded Assets" shall have the meaning set forth in Section 2.1(b). 

        "Excluded Liabilities" shall have the meaning set forth in Section 2.2(b). 

        "Fair Market Value" shall have the meaning set forth in Section 3.1(e). 

        "FDA" means the United States Food and Drug Administration. 

        "GAAP" means United States generally accepted accounting principles. 

        "Governmental Authority" means any foreign, United States federal, state or local government, political subdivision or governmental,
regulatory or administrative authority, body, agency, board, bureau, commission, department, committee, instrumentality or court, quasi-governmental authority, self-regulatory organization
or stock exchange. 

        "Governmental Authorizations" means all franchises, grants, authorizations, licenses, Permits, easements, variances, exceptions, consents,
certificates, approvals and Orders of, or filings with, any Governmental Authority. 

        "Hazardous Substance" shall have the meaning set forth in Section 6.11. 

        "Intellectual Property" shall have the meaning set forth in Section 6.9(e). 

        "Inventions" means discoveries, developments, designs, improvements, inventions and/or works of authorship, whether or not patentable,
copyrightable or otherwise legally protectable. This includes, but is not limited to, any new machine, article of manufacture, biological material, method, process, technique, use, equipment, device,
apparatus, system, compound, formulation, composition of matter, design or configuration of any kind or media, or any improvement thereon. 

        "IPO" means the initial public offering of the Acquirer's Common Stock, all as more fully described in, and made pursuant to, the
Registration Statement. 

        "IPO Offering Price" means the price per share of Common Stock received by the Acquirer in its IPO before the payment of any expenses or
underwriting discounts or commissions. 

        "Institution" shall have the meaning set forth in Section 4.4(d). 

        "Intangible Assets" shall have the meaning set forth in Section 2.1(a)(ii). 

        "Know-How" shall have the meaning set forth in Section 6.9(e). 

        "Law" or "Laws" means any federal, state, local, municipal or foreign statute, law,
regulation, legislation, constitution, requirement, authorization, rule, ordinance, code, treaty, policy or rule of common law of any Governmental Authority, including any judicial or administrative
interpretations thereof. 

        "Leases" shall have the meaning set forth in Section 6.7. 

        "Liability" means any and all debts, duties, liabilities and obligations of any nature whatsoever, whether accrued or fixed, absolute or
contingent, mature or unmatured or determined or determinable, including those arising under any law, those arising under any contract, agreement, commitment, instrument, permit, regardless of whether
such debt, duty, liability or obligation would be required to be disclosed on a balance sheet prepared in accordance with GAAP. 

3

 

        "MAA" means a marketing authorization application. 

        "Material Adverse Effect" means any material adverse change, event, circumstance or development with respect to, or material adverse
effect on, (i) the Acquired Assets, Assumed Liabilities, the Programs, the Product Candidates, or the condition (financial or other), or results of operations of the Business, or
(ii) the ability of the Acquirer to operate the Business immediately after the Closing in the same manner as it is currently conducted, excluding changes or effects directly or indirectly
resulting from (a) matters generally affecting the economy of the United States of America, general industry developments or changes in any Laws applicable to the Transferor that do not have a
material, disproportionate effect on the Transferor or (b) compliance with the terms of this Agreement or the Ancillary Agreements by the Transferor. For the avoidance of doubt, the Parties
agree that the terms "material", "materially" or "materiality" as used in this Agreement with an initial lower case "m" shall have their respective customary and ordinary meanings, without regard to
the meaning ascribed to Material Adverse Effect. 

        "Material In-Licensed IP" shall have the meaning set forth in Section 6.10(a). 

        "Materials" means all on-hand materials. 

        "Materials of Environmental Concern" means: (a) any petroleum, waste oil, crude oil, asbestos, urea formaldehyde or polychlorinated
biphenyl; (b) any waste, gas or other substance or material that is explosive or radioactive; (c) any "hazardous substance," "pollutant," "contaminant," "hazardous waste," "regulated
substance," "hazardous chemical" or "toxic chemical" as designated, listed or defined (whether expressly or by reference) in any statute, regulation or other Law (including CERCLA and any other
so-called "superfund" or "superlien" law and the respective regulations promulgated thereunder); (d) any other substance or material (regardless of physical form) or form of energy
that is subject to any Law which regulates or establishes standards of conduct in connection with, or which otherwise relates to, the protection of human health, plant life, animal life, natural
resources, property or the enjoyment of life or property from the presence in the environment of any solid, liquid, gas, odor, noise or form of energy; and (e) any compound, mixture, solution,
product or other substance or material that contains any substance or material referred to in clause "(a)", "(b)", "(c)" or "(d)" above 

        "Ordinary Course of Business" means the operation of the Business in the ordinary course of business consistent with the Transferor's
usual and customary practices in managing and operating the Business as they existed on the date hereof without regard to the transactions contemplated hereby. 

        "Order" means any (a) writ, judgment, injunction, consent, order, decree, stipulation, award, edict, ruling, pronouncement,
determination, decision, verdict, sentence, subpoena, writ or executive order of or by any Governmental Authority, arbitrator or arbitration panel or (b) contract with any Governmental
Authority entered into in connection with any Proceeding. 

        "Outbound License Agreements" shall have the meaning set forth in Section 6.10(d). 

        "Party" or "Parties" shall have the meaning set forth in the Preamble. 

        "Patents" shall have the meaning set forth in Section 6.9(e). 

        "Permits" any permit, license, order, certificate, approval, franchise, exemption, variance waiver or other authorization of any
Governmental Authority, including applications therefor, necessary or required to own and operate the Acquired Assets and the Transferor's Programs, Product Candidates and Business (including those
required under Environmental Laws). 

        "Permitted Encumbrances" means: (a) statutory liens for Taxes that are not yet due and payable or are being contested in good faith
by appropriate proceedings or that are otherwise not material; (b) statutory or common law liens to secure obligations to landlords, lessors or renters under leases or rental agreements;
(c) deposits or pledges made in connection with, or to secure payment of, workers' 

4

 

compensation,
unemployment insurance or similar programs mandated by applicable Law; (d) statutory or common law liens in favor of carriers, warehousemen, mechanics and materialmen, to secure
claims for labor, materials or supplies and other like liens; (e) Encumbrances that relate to, or are created, arise or exist in connection with, any legal proceeding that is being contested in
good faith; and (f) Encumbrances that do not materially impair the ownership or use of the assets to which they relate. 

        "Person" means and includes any individual, any legal entity, including, without limitation, any partnership, joint venture, corporation
(including any not-for-profit corporation), Limited Liability Company, trust, or unincorporated organization, and any Governmental Authority. 

        "Plan" shall have the meaning set forth in Section 6.12(b). 

        "Proceeding" means any action, suit, litigation, arbitration, proceeding (including any civil, criminal, administrative, investigative or
appellate proceeding and any informal proceeding), prosecution, contest, hearing, inquiry, inquest, audit, examination or investigation commenced, brought, conducted or heard by or before or otherwise
involving, any Governmental Authority or any arbitrator or arbitration panel. 

        "Product Candidates" means product candidates under research and development by the Transferor as of the date hereof, all as more fully
described in Section 2.1 to the Transferor Disclosure Letter. 

        "Programs" means the business and operations (including all research, development and commercialization activities) carried out with
respect to the Product Candidates or related technology or any component thereof, including, without limitation, research and development, regulatory approval process and permits, manufacturing,
commercialization, marketing and distribution to the extent that they related to such Product Candidates or related technology and the conduct of preclinical and clinical trials with respect thereto. 

        "Proprietary Rights and Inventions Agreement" means any agreement, including the form of proprietary rights and inventions agreement
delivered to Acquirer, between the Transferor and any employee or consultant of any Transferor, pursuant to which such employee or consultant agreed to
assign to the Transferor Intellectual Property rights arising from his or her employment or consulting relationship. 

        "Records" means all records, documents and files. 

        "Registration Statement" means the Acquirer's Registration Statement on Form S-1 (No. 333-114353),
filed with the SEC on April 9, 2004, and as amended to the date hereof, in connection with the Acquirer's IPO. 

        "Required Consents" has the meaning given such term in Section 6.6(a). 

        "Resolved Claim" means an Indemnification Claim as to which either (a) an arbitrator or court having jurisdiction has entered a
final judgment, decision, order or decree that either is not subject to appeal or as to which notice of appeal has not been timely filed or served, or (b) the Indemnifying Party has
acknowledged and agreed in writing. 

        "RIAS" means rapid identification of alternative splicing, a platform method for discovery of new splice variants for cancer. 

        "SEC" means the United States Securities and Exchange Commission. 

        "Securities Act" means the Securities Act of 1933, as amended. 

        "Shares" means 1,333,333 shares of Common Stock less such number of shares of Common Stock as shall equal the quotient determined by
dividing $1,500,000 by the IPO Offering Price. 

5

 

        "SRA" shall have the meaning set forth in Section 4.4(d). 

        "Tax" or "Taxes" means any foreign, United States federal, state or local income, gross
receipts, license, payroll, employment, excise, severance, stamp, occupation, premium, windfall profits, environmental, customs duties, capital stock, franchise, profits, withholding, social security
(or similar), unemployment, disability, real property, personal property, sales, use, transfer, registration, value added, alternative or add-on minimum, estimated or other tax of any kind
whatsoever, including all estimated taxes, deficiency assessments and any interest, penalty or addition thereto. 

        "Third Party" means any Person other than a Party or an Affiliate of a Party. 

        "Third-Party Agreements" means those agreements between the Transferor or any of its predecessors and any Third Party that that are listed
on Section 2.1 to the Transferor Disclosure Letter. 

        "Trademark Assignment Agreement" shall have the meaning set forth in Section 4.2(i)(D). 

        "Trademarks" shall have the meaning set forth in Section 6.8(e). 

        "Trade Secrets" shall have the meaning set forth in Section 6.8(e). 

        "Transferor" shall have the meaning set forth in the Preamble. 

        "Transferor Closing Certificate" shall have the meaning set forth in Section 9.2(a). 

        "Transferor Disclosure Letter" means the disclosure letter delivered by Transferor to Acquirer contemporaneously with the execution and
delivery of this Agreement. 

        "Unassigned Contracts" shall have the meaning set forth in Section 2.1(b)(ii). 

 
 

ARTICLE II    
    
    ACQUISITION AND TRANSFER OF
  ACQUIRED ASSETS; ASSUMPTION OF LIABILITIES    
    

        Section 2.1    Acquisition and Transfer of Acquired Assets.    

        (a)   Subject
to and upon the terms and conditions of this Agreement, Acquirer shall acquire from the Transferor, and the Transferor shall grant, transfer, convey, assign and
deliver to the Acquirer, free and clear of all Encumbrances, all rights, title and interest of Transferor in and to all of the assets, properties and business, other than the Excluded Assets, of every
kind and description, wherever located, real, personal or mixed, tangible or intangible, owned or held by Transferor in the Programs, the Product Candidates and the Business as the same existed
immediately prior to the Closing and including without limitation all rights, title and interest of Transferor as of the Closing Date, in, to and under such of the foregoing as more specifically
described below (collectively, the "Acquired Assets"): 

	(i)
	all
raw Materials, work in process, finished goods, supplies and inventory related to the Programs, the Product Candidates and the Business of the Transferor, and all Data and Records
(electronic or otherwise) relating to the foregoing;

	(ii)
	all
of the Transferor's rights in computer software, operating systems and applications owned by the Transferor or used in the Business; all of the Transferor's rights to all
programming and graphics owned or licensed by the Transferor or used in the Business and all associated good will relating thereto; all business and marketing plans related to the business; all of the
Transferor's rights in slogans, technology, know-how, trade secrets, logos, copyright interests, service marks, trade names, Internet domain names and rights to trade dress and designs
relating to the Business; and all of the Transferor's digital files and materials relating to the Transferor's Internet website(s) and all goodwill related to and all other rights in, to or under any
of the foregoing (collectively, the "Intangible Assets"); 

6

 

	(iii)
	all
personal property and interests therein, including, without limitation, vehicles, machinery, equipment, furniture, office equipment, tools and other tangible property set forth
in Section 2.1(a)(iii) of the Transferor Disclosure Letter;

	(iv)
	subject
to subsection (b)(ii) hereof, all rights of the Transferor under all executory contracts set forth in Section 2.1(a)(iv) to the Transferor Disclosure
Letter (including, without limitation, license agreements pursuant to which Intellectual Property and Material In-Licensed IP is licensed to Transferor), except as set forth in
Section 2.1(b)(ii) of the Transferor Disclosure Letter (collectively, the "Assigned Contracts");

	(v)
	all
transferable Permits held by the Transferor to the fullest extent such right, title and interest may be transferred (collectively, the "Assigned
Permits");

	(vi)
	subject
to subsection (b)(vi) hereof, all Intellectual Property owned by the Transferor and all Material In-Licensed IP (collectively, the
"Assigned Intellectual Property");

	(vii)
	copies
of all books, Records, files and papers, whether in hard copy or computer format, including, without limitation, all books, Records, Materials, manuals, sales and promotional
materials and Records, advertising materials, customer lists, supplier lists, mailing lists, distribution lists, business plans, litigation files, credit information, cost and pricing information, and
all documents embodying the Assigned Intellectual Property, in each case relating to the Acquired Assets, excluding records which are attorney-client privileged or considered attorney work product,
except as otherwise set forth in subsection (b)(x) and (xi) hereof; and

	(viii)
	all
rights of the Transferor as of the Closing Date under the Proprietary Rights and Inventions Agreement and the non-competition agreements in favor of the Transferor
set forth in Section 2.1(a)(viii) of the Transferor Disclosure Letter. 

        (b)   Notwithstanding
Section 2.1(a), the Transferor will not be required to sell or transfer to the Acquirer, and the Acquired Assets shall not include, the following
assets or any right or interest in or to any of the following assets (collectively, the "Excluded Assets"): 

	(i)
	all
rights of Transferor under this Agreement, the Ancillary Agreements and the agreements and instruments executed and delivered to the Transferor by Acquirer pursuant to this
Agreement;

	(ii)
	any
executory contracts to which the Transferor is a party or otherwise is bound (A) if (i) a consent is required to be obtained from any Person in order to permit the
sale or transfer to Acquirer of Transferor's rights under such contract or lease and (ii) such consent shall not have been obtained prior to the Closing or (B) as otherwise set forth in
Section 2.1(b)(ii) of the Transferor Disclosure Letter (the "Unassigned Contracts");

	(iii)
	all
cash, cash equivalents (including deposits) and securities in entities other than Transferor owned by Transferor;

	(iv)
	all
of Transferor's books, records, ledgers, files and documents (except that Acquirer may obtain copies of certain records described in Section 2.1(a)(iv) of the
Transferor Disclosure Letter);

	(v)
	Transferor's
formal corporate records, including its certificate of incorporation, bylaws, minute books, corporate books, stock transfer records and other records having to do with
the corporate organization of Transferor;

	(vi)
	any
Intellectual Property to the extent that the Transferor's rights thereto are subject to the Unassigned Contracts; 

7

 

	(vii)
	all
insurance benefits, including rights and proceeds, arising from or relating to the Acquired Assets prior to the date of this Agreement;

	(viii)
	all
unexpired Leases to which the Transferor is party;

	(ix)
	the
Excluded Receivables;

	(x)
	except
as otherwise transferred to Acquirer by operation of applicable Tax Law, any Tax attributes of Transferor, including, without limitation, any net operating loss carryovers and
any right or claim for a Tax refund attributable to the operations or assets of Transferor, whether arising before, on or after the Closing;

	(xi)
	all
personnel records and other records that Transferor is required by any Law to retain in its possession; and

	(xii)
	those
other assets specifically identified as "excluded assets" in Section 2.1(b)(xii) of the Transferor Disclosure Letter. 

        Section 2.2    Assumption of Liabilities.    

        (a)   Subject
to the terms and conditions of this Agreement, the Acquirer agrees, effective as of the Closing, to assume all Liabilities arising after the Closing under the
Assigned Contracts as well as all Liabilities listed on Section 2.2(a) to the Transferor Disclosure Letter (the "Assumed Liabilities"). 

        (b)   Notwithstanding
the provisions of Section 2.2(a), the Acquirer shall not assume and the Assumed Liabilities shall not include any Liabilities that
(i) arise from or relate to any breach by the Transferor of any provision of any of the Assigned Contracts prior to the Closing; (ii) arise from or relate to any material inaccuracy in
the representations and warranties made by the Transferor in this Agreement or any of the Ancillary Agreements; or (iii) arise from or relate to the ownership, use or operation of the Acquired
Assets, the Programs, or the Business by the Transferor on or prior to the Closing. The Acquirer shall not, by virtue of this Agreement, assume liability or responsibility for any Liability of the
Transferor that is not included within the definition of Assumed Liabilities, including, without limitation, the Unassigned Contracts (the "Excluded
Liabilities"). 

 
 

ARTICLE III    
    
    ACQUISITION PRICE;
  PAYMENT OF ACQUISITION PRICE    
    

        Section 3.1    Acquisition Price; Payment of Acquisition Price.    As consideration for the conveyance,
transfer and assignment of the Acquired Assets to Acquirer: 

        (a)   Acquisition Price. At the Closing, as consideration for the conveyance, transfer and assignment of the Acquired Assets,
the Acquirer will (i) deliver, or cause to be delivered, by wire transfer of immediately available funds to an account specified by Transferor, an amount in cash equal to $1,500,000 and
(ii) issue and transfer to Transferor the Shares by delivering, or causing to be delivered, to Transferor a stock certificate (the
"Certificate"), registered in the name of the Transferor, evidencing the Shares (collectively, the "Acquisition
Price"). 

        (b)   Assumption of Liabilities. At the Closing, the Acquirer shall assume the Assumed Liabilities by delivering to Transferor
the Assignment and Assumption Agreement. 

        (c)   Milestone Payment. Upon the first approval of a BLA by the FDA for the commercial sale by the Acquirer or any sublicensee
or transferee in the United States of EGFRvIII-derived products, the Acquirer will pay a milestone payment, in the aggregate amount of $5,000,000, to the Transferor; provided, however, that in the
event an MAA by a European regulatory agency is received by Acquirer or sublicensee or transferee for the commercial sale in Europe of EGFRvIII-derived products prior to 

8

 

the
receipt of such BLA, then Acquirer shall pay to Transferor a milestone payment in the aggregate amount of $3,500,000. If Acquirer receives approval of a BLA by the FDA following Acquirer's receipt
of an MAA from a European regulatory agency, Acquirer will pay Transferor an additional milestone payment of $1,500,000. In no event shall Acquirer be required to make aggregate milestone payments
under this Section 3.1(c) in excess of $5,000,000. At the election of the Acquirer, any such payment may be made in the form of cash or shares of fully registered, freely tradable Common Stock
of the Acquirer having a Fair Market Value on the date any such regulatory approval is obtained equal to the amount of any such milestone payment. Such payment shall be made within thirty
(30) days of the date the Acquirer receives any such regulatory approval. If the Transferor shall have been dissolved or is no longer in existence at the time such payments become due and
payable, then the Acquirer shall make such payments to the Persons listed in Section 3.1(c) to the Transferor Disclosure Letter in the respective percentages to be furnished to the Acquirer by
the Transferee in writing at the Closing. 

        (d)   Eisai Upfront Fees or Milestone Payments. The Acquirer shall pay to Transferor an amount equal to twenty (20%) percent of
any upfront fees or milestone payments received by Acquirer from Eisai in the event the Acquirer shall enter into a license agreement with Eisai for any EGFRvIII-related product that was developed
pursuant to any Intellectual Property assigned hereunder (the "Eisai License Agreement") within twelve (12) months from the Closing Date. At the
election of the Acquirer, any such payment may be made in the form of cash or shares of fully registered, freely tradable Common Stock of the Acquirer having a Fair Market Value, on the date such
milestone payment is received by Acquirer from Eisai, equal to the amount of any such payment. Such payment shall be made within thirty (30) days of the date the Acquirer receives any such
upfront fees or milestone payments from Eisai. In the event that Transferor shall have been dissolved or shall otherwise no longer be in existence at the time any such payments become due and payable
by the Acquirer under this Section 3.1(d), the Acquirer shall make such payments to the Persons listed on Section 3.1(c) to the Transferor Disclosure Letter in the respective percentages
to be furnished to the Acquirer by the Transferee in writing at the Closing. 

        (e)   In
the event the Closing does not occur on or before March 1, 2005, the Acquirer hereby agrees to reimburse the Transferor for operating expenses incurred by the
Transferor from and after March 1, 2005 until the earlier to occur of the Closing Date or June 30, 2005. Notwithstanding the foregoing, the Acquirer shall be obligated to reimburse the
Transferor for such operating expenses only if the payment of such expenses by the Transferor was approved by the Acquirer prior to the payment thereof in the exercise of its reasonable discretion;
provided, however, that the payment by the Transferor of any liabilities set forth in Section 4.2(vi) of the Transferor Disclosure Letter shall not require the approval of the Acquirer..
The Acquirer shall make such reimbursement payment on the Closing Date or June 30, 2005, whichever comes first. In no event shall the Acquirer be obligated to reimburse the Transferor for any
such expenses in an aggregate amount in excess of $90,000. 

        (f)    The
Acquirer shall reimburse the Transferor for one-half of the license fees the Transferor pays to Thomas Jefferson University in connection with the
amendments to each of the License Agreements between Thomas Jefferson University and the Company, which reimbursement shall be made by the Acquirer on the Closing Date or June 30, 2005,
whichever comes first; provided, however, that in no event shall the Acquire be obligated to reimburse the Transferor for such license fees in an aggregate amount in excess of $37,500. 

        (g)   For
the purposes of Sections 3.1(c) and (d) above, the term "Fair Market Value" shall mean the average of the closing sales prices of the Acquirer's Common Stock
as reported by NASDAQ for the twenty (20) trading days immediately preceding the date which is two (2) trading days prior to the date such Fair Market Value is to be determined. 

        The
consideration described in subparagraphs (a)-(d) of this Section 3.1 shall be collectively referred to as the "Consideration." 

9

 

        Section 3.2    Election Option Limitation.    Anything in Sections 3.1(c) and (d) above to the contrary
notwithstanding, the cash component of the Consideration to be paid by Acquirer under this Agreement shall not exceed 18% of the value of the Acquired Assets. Acquirer shall exercise its election
option under Sections 3.1(c) and (d) above in such manner as to ensure the satisfaction of this requirement. 

 
 

ARTICLE IV    
    
    CLOSING    
    

        Section 4.1    Closing.    Subject to the terms and conditions of this Agreement, the closing of the purchase
and sale of the Acquired Assets (the "Closing") will be at 10:00 A.M. Eastern Time at the offices of Satterlee Stephens Burke & Burke LLP
230 Park Avenue, 11th Floor, New York, NY 10169, or at such other location agreed to by the Acquirer and the Transferor, on the fifth Business Day following the date of the completion of the
Acquirer's IPO, or such other date as may be agreed upon in writing by the Parties after the satisfaction or waiver of the last to be satisfied or waived of the conditions set
forth in Articles IX and X (other than those conditions that by their nature are to be satisfied at the Closing) (the date of the Closing being herein referred to as the
"Closing Date"). 

        Section 4.2    Deliveries by the Transferor at the Closing.    At the Closing, the Transferor shall deliver, or
cause to be delivered, to the Acquirer: 

	(i)
	a
receipt for the Acquisition Price paid by the Acquirer in accordance with Section 3.1(a) and (A) a bill of sale related to the transfer of the Acquired Assets (the
"Bill of Sale"); (B) an assignment and assumption agreement relating to the Assigned Contracts (the "Assignment and
Assumption Agreement"), (C) a confirmatory trademark assignment agreement (the "Trademark Assignment Agreement"), and
(D) an assignment of Intangible Assets (the "Assignment of Intangible Assets") substantially in the forms attached hereto as  Appendix A,
Appendix B, Appendix C,
and Appendix D, respectively;

	(ii)
	certified
copies of the resolutions adopted by the shareholders of the Transferor, either at a meeting thereof duly called and held or pursuant to valid written consents thereof,
authorizing and approving the sale of the Acquired Assets;

	(iii)
	the
Transferor Closing Certificate referred to in Sections 9.1(b) hereof;

	(iv)
	certified
copies of the resolutions of the Board of Directors of the Transferor authorizing and approving the sale of the Acquired Assets, the execution and delivery of this
Agreement, the Ancillary Agreements and all other documents and agreements delivered in connection herewith by officers of the Transferor and consummation of the transactions contemplated hereby and
thereby;

	(v)
	the
Required Consents, in form and substance satisfactory to the Acquirer;

	(vi)
	evidence
reasonably satisfactory to Acquirer that Transferor has paid in full or otherwise satisfied all of the obligations listed in Section 4.2(vi) of the Transferor
Disclosure Letter and has received releases of all Liabilities under such obligations that are material to the Business;

	(vii)
	the
opinion of Transferor's counsel, Duane Morris LLP, dated as of the Closing Date, substantially in the form attached hereto as  Appendix E; and

	(viii)
	such
good standing certificates and other similar documents as Acquirer may reasonably request to ensure that the actions required to be taken by Transferor at the Closing have
been properly authorized. 

10

 

        Section 4.3    Deliveries by the Acquirer at the Closing.    At the Closing, the Acquirer shall deliver, or
cause to be delivered, to the Transferor: 

	(i)
	the
Bill of Sale, the Assignment and Assumption Agreement, the Patent Assignment Agreement and the Trademark Assignment Agreement duly executed by the Acquirer;

	(ii)
	the
Acquisition Price in accordance with Section 3.1(a);

	(iii)
	a
duly executed copy of that certain Consulting Agreement between the Acquirer and Dr. Albert J. Wong in substantially the form attached hereto as  Appendix F;

	(iv)
	a
duly executed copy of that certain Consulting Agreement between the Acquirer and Dr. Donald M. O'Rourke in substantially the form attached hereto as  Appendix G;

	(v)
	the
Acquirer Closing Certificate referred to in Sections 10.1(b) hereof;

	(vi)
	the
Certificate representing the Shares;

	(vii)
	the
opinion of Acquirer's counsel, Satterlee Stephens Burke & Burke LLP, substantially in the form attached hereto as  Exhibit H; and

	(viii)
	such
good standing certificates and other similar documents as Transferor may reasonably request to ensure that the actions required to be taken by Acquirer at the Closing have
been properly authorized. 

        Section 4.4    Further Assurances and Agreements.    

        (a)   Each
Party will from time to time, at the reasonable request of any other Party, execute and deliver such other instruments of conveyance and transfer and such other
instruments, documents and agreements and take such other actions as such other Party may reasonably request or as may be reasonably requested by any applicable Governmental Authorities or third
parties, in each case in order to consummate and make Execution any of the transactions contemplated hereby and to vest in the Acquirer the right, title and interest in, to and under the Acquired
Assets, to assist the Acquirer in the transfer, assignment, collection and reduction to possession of the Acquired Assets (and the exercise of rights with respect thereto);  provided that the requesting
Party will prepare any additional documents and instruments and will handle any submittal, applications, processing,
recording and registrations and bear all expenses related thereto. 

        (b)   Acquirer
will return any records Transferor inadvertently delivers to Acquirer that are or are reasonably likely to be attorney-client privileged or considered attorney
work product or which Acquirer realizes are or are likely to be attorney-client privileged or considered attorney work product. 

        (c)   Acquirer
agrees that should Acquirer receive a subpoena to provide to a Third Party copies of records relating to the Acquired Assets at any time after the Closing Date,
Acquirer shall within three (3) Business Days of the receipt of the subpoena, provide written notice to Transferor of the receipt of such subpoena so that Transferor may seek a protective order
or an appropriate remedy. Acquirer will cooperate with Transferor to obtain such protective order or other remedy. If Transferor elects not to seek, or is unsuccessful in obtaining, any such
protective order or other remedy in connection with any requirement that Acquirer provide certain records, then Acquirer may provide to the third party the records requested in the subpoena. 

        (d)   Acquirer
hereby agrees that it will use its best efforts to negotiate and enter into a sponsored research or similar agreement (the
"SRA") with a university or other institutional research facility (the "Institution") to be specified by
Dr. Albert J. Wong ("Dr. Wong"), which such Institution shall be subject to the approval of the Acquirer, which approval shall not be
unreasonably withheld. The purpose of the SRA shall be to provide funding for the research, development and advancement of the RIAS technology, or related technology for the rapid identification of
alternative spliced proteins, or splice variants, in the laboratories of Dr. Wong to be located at such Institution, in an amount of $150,000 per annum for the payment of Direct Costs for a
period of five (5) years from the date of the execution of the SRA. The SRA shall contain the terms specified Appendix I. 

11

  

 
 

ARTICLE V    
    
    RESERVED    
    

 
 

ARTICLE VI    
    
    REPRESENTATIONS OF THE TRANSFEROR    
    

        The Transferor represents and warrants to the Acquirer as follows: 

        Section 6.1    Corporate Power and Authority.    The Transferor has the corporate power and authority to own,
lease and operate its properties and to conduct its Business as is presently conducted. 

        Section 6.2    Existence and Good Standing.    The Transferor is a corporation duly incorporated, validly
existing and in good standing under the laws of the State of Delaware. The Transferor is duly qualified as a foreign corporation and is in good standing in each jurisdiction in which such
qualification is required by law, except where the failure to be so qualified or to be in good standing has not had, or would not reasonably be expected to have, a Material Adverse Effect. 

        Section 6.3    Authority; No Consents.    The execution, delivery and performance by the Transferor of this
Agreement and the Ancillary Agreements to which it is a party and the consummation of the transactions contemplated hereby and thereby have been duly and validly authorized by all necessary corporate
action on the part of the Transferor and this Agreement has been, and the Ancillary Agreements to which it is a party when executed and delivered by the Transferor will be, duly and validly executed
and delivered and the valid and binding obligations of the Transferor, enforceable against it in accordance with their respective terms, subject to (i) laws of general application relating to
bankruptcy, insolvency and the relief of debtors and (ii) rules of law governing specific performance, injunctive relief and other equitable remedies. Except for any notices, approvals and
consents identified in Section 6.3 of the Transferor Disclosure Letter, and except for the consent of the stockholders of the Transferor, neither the execution, delivery and performance by the
Transferor of this Agreement or the Ancillary Agreements to which the Transferor is a party, the consummation by the Transferor of the transactions contemplated hereby or thereby, nor compliance by
the Transferor with any provision hereof or thereof will (with or without the giving of notice or lapse of time, or both) conflict with, result in any violation of, cause a default under (with or
without due notice, lapse of time or both), give rise to any right of termination, amendment, cancellation or acceleration of any obligation contained in or the loss of any benefit under or result in
the creation of any Encumbrance on or against (x) any of the Acquired Assets, (y) any assets, rights or property of the Transferor under any term, condition or provision of any of the
Assigned Contracts or (z) any law, statute, rule, regulation, order, writ, injunction, decree, permit, concession, license or franchise of any Governmental Authority applicable to the
Transferor or any of its properties, assets or rights, other than any such conflict, violation, default, right, loss or Encumbrance that would not have a Material Adverse Effect, or conflict with or
result in any violation of the Transferor's Certificate of Incorporation or Bylaws. 

        Section 6.4    Title to Assets, Properties and Rights and Related Matters.    The Transferor has good and valid
title in and to the Acquired Assets. All of the Acquired Assets are owned by the Transferor free and clear of all Encumbrances, except for Permitted Encumbrances and as otherwise provided in the
Assigned Contracts, and upon consummation of the transactions contemplated hereby, the Acquirer will have acquired all of the Transferor's rights, title and interest in and to the Acquired Assets,
free and clear of all Encumbrances, except for Permitted Encumbrances and Encumbrances created by or imposed on the Acquirer through no act or fault of the Transferor. The Transferor has not made any
sale or assignment that would conflict with the sale and assignment of its rights in and to the Acquired Assets to the Acquirer as contemplated by this Agreement. The Acquired Assets constitute all of
the assets, rights products and services, both tangible and intangible, wherever located and whether or not required to be reflected on a balance sheet prepared in accordance with GAAP, used by
Transferor in, 

12

 

and
necessary to operate, the Business and the Programs as currently conducted; provided, however, that the Transferor makes no representation or warranty regarding the probable scientific or
commercial success or profitability of or resulting from the ownership, use, operations, manufacturing, formulating, packaging, marketing or distribution of the Product Candidates after the Closing. 

        Section 6.5    Licenses and Permits; Compliance with Law.    

        (a)   The
Programs are in compliance in all material respects with all Laws relating to the Product Candidates, the Programs and the Business, including without limitation all
such Laws relating to registration, use or manufacture of the Product Candidates (at their current level of development and use). There is no investigation or inquiry to which the Transferor is a
party pending or, to the Transferor's knowledge, threatened relating to the Acquired Assets and their compliance with applicable Laws. The Transferor has not received, at any time in the past two
years, any written notice from any Governmental Authority or other Person regarding any actual or alleged violation of, or failure to comply with, any Law applicable to the ownership or use of any of
the Acquired Assets. To the knowledge of the Transferor, no event has occurred, and no condition or circumstance exists, that would (with or without notice or lapse of time) constitute or result
directly or indirectly in a material violation by the Transferor of, or a failure on the part of the Transferor to comply in any material respect with, any Law applicable to the ownership or use of
any of the Acquired Assets. 

        (b)   The
Transferor has all material Governmental Authorizations necessary to permit the Transferor to own and use the Acquired Assets in the manner in which they are
currently owned and used. The Transferor has all Government Authorizations necessary in the conduct of the Business as presently being conducted, the lack of which would have a Material Adverse
Effect. Each of the Governmental Authorizations identified on Section 6.5(b) to the Transferor Disclosure Letter is valid and in full force and effect. The Transferor is and at all times has
been in compliance in all material respects with all of the terms and requirements of each of the Governmental Authorizations identified on Section 6.5(b) to the Transferor Disclosure Letter,
except to the extent the failure to so hold or comply would not, individually or in the aggregate, be reasonably expected to have a Material Adverse Effect. The Transferor has not received, at any
time in the past two years, any written notice from any Governmental Authority or any other Person regarding (i) any actual or alleged violation of or failure to comply with the terms of any
Governmental Authorization identified on Section 6.5(b) to the Transferor Disclosure Letter or (ii) any actual or threatened revocation, withdrawal, suspension, cancellation, termination
or modification of any Governmental Authorization identified on Section 6.5(b) to the Transferor Disclosure Letter. 

        Section 6.6    Assigned Contracts.    

        (a)   Section 2.1
to the Transferor Disclosure Letter sets forth a list of all of the contracts related to the Acquired Assets, including the Product Candidates and the
Programs, that are to be assigned to the Acquirer at the Closing (the "Assigned Contracts"). All the Assigned Contracts are valid, binding and
enforceable in accordance with their terms by and against the Transferor and, to the knowledge of the Transferor, each other party thereto, and are in full force and effect. Except as set forth in
Section 6.6 of the Transferor Disclosure Letter, the Transferor has performed in all material respects all obligations imposed on it thereunder. To the knowledge of the Transferor, and except
as set forth in Section 6.6 of the Transferor Disclosure Letter, would not reasonably be expected to have a Material Adverse Effect, no event has occurred, and no circumstance or condition
exists, that would (with or without notice or lapse of time) (i) constitute a default by the Transferor or, to the knowledge of the Transferor, any other party thereto, under the Assigned
Contracts; (ii) result in a violation or breach of any of the provisions of the Assigned Contracts; (iii) give any Person the right to declare a default or exercise any remedy for
default under the Assigned Contracts; or (iv) give any Third Party the right to cancel, terminate or modify any of the Assigned Contracts (except to the extent any such Assigned Contract is by
its terms terminable, cancelable or modifiable by such Third Party upon prior notice or 

13

 

after
the expiration of a specified term). Since April 18, 2002, the Transferor has not received any written notice of any actual or alleged violation, breach or default by Transferor under any
of the Assigned Contracts that has not been cured as of the Execution Date. As of the date of this Agreement, the Transferor is not directly and actively engaged in any renegotiation of any amounts
paid or payable to the Transferor under any of the Assigned Contracts or any other material term or material provision of any of the Assigned Contracts. True and complete copies of each Assigned
Contract have been delivered to the Acquirer by the Transferor, and there is no legally enforceable agreement (written or oral) between any Transferor and the other party to any Assigned Contract that
amends or modifies the terms of any Assigned Contract (except for the Required Consents that have not been delivered to Acquirer). Section 6.6 to the Transferor Disclosure Letter sets forth a
list of all Assigned Contracts that require the consent or waiver of any party to such Assigned Contract as a result of the transactions contemplated hereby, except where the failure to obtain such
consent or waiver would not have a Material Adverse Effect (the "Required Consents"). 

        (b)   The
Transferor is not a party to any contract containing non-competition clauses, restrictive covenants or similar provisions that would limit the Acquirer's
ability after the Closing to engage in any line of business in any geographic area or to compete against any Person. 

        Section 6.7    Real Property—Owned or Leased.    The Transferor does not currently own any real
property. 

        Section 6.8    Litigation.    Except as set forth on Section 6.8 of the Transferor Disclosure Letter,
there are no Proceedings against the Transferor relating to any of the Acquired Assets that are currently pending or, to the knowledge of the Transferor, threatened at law or in equity before or by
any Governmental Authority, or that challenge or seek to prevent, make illegal, enjoin, alter, delay or otherwise interfere with any of the transactions contemplated by this Agreement or by the
Ancillary Agreements. The Transferor is not in default under or with respect to any Order of any court or any Governmental Authority that could reasonably be expected to have a Program Material
Adverse Effect. Except as set
forth in Section 6.6 of the Transferor Disclosure Letter, and to the knowledge of the Transferor, no even has occurred and no claim, dispute or other condition or circumstance exists, that
might directly or indirectly give rise to or serve as basis for the commencement of any such Proceeding. There is no Order material to the Business to which any of the Acquired Assets is subject. The
Transferor is not in default under or with respect to any Order of any court or any Governmental Authority that could reasonably be expected to have a Material Adverse Effect. To the knowledge of the
Transferor, there is no proposed Order that, if issued or otherwise put into effect, (a) would have a Material Adverse Effect on the ability of the Transferor to perform any covenant or
obligation under this Agreement or the Ancillary Agreements, or (b) would have the effect of preventing, delaying, making illegal or otherwise interfering with the transactions contemplated by
this Agreement and the Ancillary Agreements. 

        Section 6.9    Intellectual Property.    

        (a)   Except
as set forth in Section 6.9(a) of the Transferor Disclosure Letter, to the knowledge of the Transferor, the Transferor has good and valid title to, and
owns free and clear of all Encumbrances, other than Permitted Encumbrances and non-exclusive licenses, and has the right to bring actions for infringement, of, any of the Assigned
Intellectual Property. Section 6.9(a) of the Transferor Disclosure Letter includes a complete and accurate list of all of the Transferor's United States and foreign (a) Patents;
(b) registered Trademarks (including Internet domain name registrations); and (c) registered Copyrights, indicating for each the applicable jurisdiction, registration number (or
application number), and date issued (or date filed). 

        (b)   To
the knowledge of the Transferor, there are no royalties, honoraria, fees or other payments payable by the Transferor to any person by reason of the Transferor's
ownership, use, license, transmission, broadcast, delivery (electronically or otherwise), sale, or disposition of the Assigned 

14

 

Intellectual
Property, except for any such payments arising from the purchase or license of "off the shelf" or standard software products for which the acquisition price or license fee is less than
$5,000. 

        (c)   Except
as set forth in Section 6.9(c) of the Transferor Disclosure Letter, to the knowledge of the Transferor, no third party is infringing upon, or violating any
license or agreement with the Transferor relating to, any Assigned Intellectual Property; and there is no pending or, to the knowledge of Transferor threatened claim or litigation contesting the
validity of, Transferor's ownership of, or Transferor's right to use, sell, license or dispose of, any Assigned Intellectual Property. Except as set forth in Section 6.9(c) of the Transferor
Disclosure Letter, the Transferor has not received any written notice asserting that any Assigned Intellectual Property or the proposed sale thereof to Acquirer pursuant to the terms of this Agreement
conflicts or will conflict with the rights of any other Person. 

        (d)   Section 6.9(d)
of the Transferor Disclosure Letter sets forth a complete and accurate list of all license agreements currently in effect in which the Transferor
has expressly granted any right to a Third Party to use or practice any rights under any Assigned Intellectual Property (except for licenses identified in Section 6.9(a) of the Transferor
Disclosure Letter) and any assignments, consents, term, forbearances to sue, judgments, orders, settlements or similar obligations relating to any Assigned Intellectual Property to which the
Transferor is a party or otherwise bound (collectively, the "Outbound License Agreements"). 

        (e)   As
used in this Agreement, the term "Intellectual Property" shall mean all intellectual property rights worldwide,
including, without limitation, trademarks, service marks, trade names, service names, URLs and Internet domain names and applications therefor (and all interest therein), and general intangibles of
like nature, together with all goodwill related to the foregoing (including any registrations and applications for any of the foregoing) (collectively,
"Trademarks"); patent rights and all right, title and interest in all letters patent or equivalent rights and applications, including provisional
applications, for letters patent or rights, industrial and utility models, industrial designs, certificates of invention, and other government issued or granted indicia of invention ownership,
including any reissue, extension, division, continuation or continuation in part applications throughout the world (collectively, "Patents"); copyrights
(including any registrations, applications and renewals for any of the foregoing) (collectively, "Copyrights"); confidential or proprietary information
that derives economic value (actual or potential) from not being generally known to other persons who can obtain economic value from its disclosure, but excluding any Copyrights or Patents that cover
or protect any of the foregoing (collectively, "Trade Secrets"); information not in the public domain, including ideas, discoveries, inventions, data,
formulae, techniques, procedures for experiments and tests, technical information, specifications, results of experiments and tests, designs, sketches, records and confidential analyses and
interpretations of information (collectively, "Know-How"); and all other proprietary rights recognized under the laws of any jurisdiction in
the world in concepts, ideas, designs, plans, schematics, drawings, specifications, research and development information, technology and product roadmaps, technology, confidential information,
know-how, proprietary technology, processes, formulae, algorithms, models, customer lists, inventions, discoveries, improvements, methodologies, architecture, structure, layouts, and
inventions. 

        Section 6.10    Material In-Licensed IP.    

        (a)   Section 6.10(a)
of the Transferor Disclosure Letter sets forth a true and complete list of all license agreements currently in effect in which the Transferor has
been granted a license to Intellectual Property that is material to the research, development and commercialization of the Product Candidates, the operation of the Programs and the operation of the
Business (other than such licenses or agreements arising from the purchase or license of "off the shelf" or standard software products or research products for which the acquisition price or license
fee is less than $5,000) (the "Material In-Licensed IP"). 

15

 

        (b)   The
Material In-Licensed IP is validly held and used by the Transferor and may be used by the Transferor pursuant to the applicable license agreements with
respect thereto and, to the knowledge of the Transferor, without the consent of or notice to any Third Party. 

        Section 6.11    Environmental Matters.    The property, assets and operations of the Transferor are in
compliance in all material respects with all applicable federal, state, local or foreign laws, rules, orders, decrees, judgments, injunctions, licenses, permits or regulations relating to
environmental matters (collectively, the "Environmental Laws"), except to the extent that failure to comply with such Environmental Laws would not have
a Material Adverse Effect. To the knowledge of the Transferor, none of the Acquired Assets are the subject of any federal, state, local or foreign investigation evaluating whether any remedial action
is needed to respond to a release or threatened release into the environment, of any substance regulated by, or which would form the basis of liability, under any Environmental Laws (a
"Hazardous Substance") or are in contravention of any federal, state, local or foreign law, order or regulation that would have a Material Adverse
Effect. The Transferor has not received any written notice or claim, nor are there pending, threatened or reasonably anticipated lawsuits against it with respect to material violations of an
Environmental Law or in connection with the release of threatened release of any Hazardous Substance into the environment. To the knowledge of the Transferor, the Transferor has no material contingent
liability in connection with any release or threatened release of any Hazardous Substance into the environment. 

        Section 6.12    Employees; Employee Benefit Plans.    

        (a)   The
Transferor is not a party to or bound by any collective bargaining agreement with any labor organization, group or association covering any of its employees, and the
Transferor has no knowledge of any attempt to organize any of its employees by any person, unit or group seeking to act as their bargaining agent. The Transferor is not a party to or bound by any
employment agreement or other arrangement regarding the continued employment of any of its employees. The Transferor has no knowledge of any pending or threatened charges (by employees, their
representatives or governmental authorities) of unfair labor practices or of employment discrimination or of any other wrongful action with respect to any aspect of employment of any person employed
or formerly employed by the Transferor. To the knowledge of the Transferor, no union representation elections relating to employees of the Transferor have been scheduled by any Governmental Authority,
no organizational effort is being made with respect to any of such employees and there is no investigation of the Transferor's employment policies or practices by any governmental authority pending or
threatened. The Transferor is not currently, and has not since its inception been, involved in labor negotiations with any unit or group seeking to become the bargaining unit for any employees of the
Transferor's employees. The Transferor has not experienced any work stoppages since its inception, and to the knowledge of the Transferor, no work stoppage is planned. 

        (b)   The
Transferor has never maintained or contributed to an employee benefit plan within the meaning of Section 3(3) of ERISA (a
"Plan") covered by Title IV of ERISA or subject to Section 412 of the Code or Section 302 of ERISA or a multiemployer plan as defined in
Section 4001(a)(3) of ERISA. No Plan provides for post-employment or retiree welfare benefits, except to the extent required by Part 6 of Subtitle B of Title I of ERISA or
Section 4980B of the Code. 

        Section 6.13    Broker's or Finder's Fees.    No agent, broker, Person or firm is, or will be, entitled to any
commission or broker's or finder's fees from any Party, or from any Affiliate of any Party, in connection with any of the transactions contemplated by this Agreement based upon arrangements made by
Transferor, other than PK Consulting. Transferor acknowledges and agrees that it shall be solely responsible for any fees or commissions due to PK Consulting in connection with the transactions
contemplated by this Agreement. 

        Section 6.14    Insurance Coverage.    The Transferor has furnished or made available to the Acquirer, a list
of, and true and complete copies of, all insurance policies covering the Acquired Assets, 

16

 

all
of which are set forth in Section 6.14 of the Transferor Disclosure Letter. There is no material claim by Transferor pending under any of such policies as to which coverage has been denied
or disputed by the underwriters of such policies or bonds. 

        Section 6.15    Accounts and Notes Receivable.    There are no accounts receivable or notes receivable owing to
the Transferor being transferred or assigned to Acquirer pursuant to this Agreement. 

        Section 6.16    Preclinical Testing and Clinical Trials.    To the knowledge of the Transferor, the preclinical
tests and clinical trials related to the Programs and the Product Candidates were and, if still pending, are being conducted in all material respects in accordance with protocols filed with the
appropriate regulatory authorities for each such clinical trial or human trial, as the case may be, and, to the knowledge of the Transferor, in compliance in all material respects with all applicable
Laws, rules and regulations, including all public health and safety provisions of state law and regulations, Permits, governmental licenses, registrations, approvals, concessions, franchises,
authorizations, Orders, injunctions and decrees. To the knowledge of the Transferor, all Product Candidates used in the conduct of clinical trials through the Execution Date have been manufactured in
compliance in all material respect with cGMPs. To the knowledge of the Transferor, each regulatory filing made with respect to the Product Candidates (including the INDs therefor) were, at the time of
filing, true, complete and accurate in all material respects. No serious adverse event information has come to the attention of the Transferor relating to the clinical trials for the Product
Candidates. To the knowledge of the Transferor, the development of the Product Candidates has been conducted in compliance in all material respects with all applicable Laws, and the Transferor has not
received any written notice which has, or reasonably should have, led it to believe that any of the INDs for same are not currently in good standing with the FDA. The Transferor has no knowledge of
any other studies or tests the results of which are inconsistent with or otherwise call into question the results of such preclinical tests and clinical trials. The Transferor has not received any
written notices or other correspondence from the FDA or any other Governmental Authority requiring the termination, suspension or modification of any clinical trials related to the Programs.
Notwithstanding the foregoing, the Acquirer acknowledges that the Transferor has had no involvement in the conduct of the preclinical and clinical trials related to the Programs and the Product
Candidates, the preparation of any regulatory filings made in connection therewith, or the manufacture of any Product Candidate. 

        Section 6.17    Financial Statements.    Exhibit J
hereto contains (a) a copy of Transferor's unaudited Balance Sheet dated September 30, 2004, and (b) the unaudited Statement of Income of the Business for the period ended
September 30, 2004 (collectively referred to as the "Financial Statements"). Such Financial Statements (i) are in accordance with the
books and records of Transferor, (ii) are accurate in all material respects, and (iii) fairly present, in all material respects, the financial condition and the results of operations of
the Business as at and for the period ended September 30, 2004. 

        Section 6.18    Taxes.    Except as set forth in Section 6.18 of the Transferor Disclosure Letter, there
are no security interests of any type on the Acquired Assets that have arisen in connection with any failure (or alleged failure) by the Transferor to pay any Tax and there are no judgments against
Transferor for or with respect to any Taxes arising out of the operation of the Business. The Transferor has filed or will file or cause to be filed, within the applicable period prescribed by law,
all federal, provincial, local foreign or other tax returns, required by such law to be filed by Transferor with respect to the Business for all taxable periods ending on or prior to the Closing Date,
or the Transferor has filed valid extensions of time for filing such tax returns. Transferor has paid within the time and manner prescribed by law, all Taxes shown as due on all such tax returns, and
(i) Transferor is not delinquent in the payment of any Taxes relating to the Business, (ii) no deficiencies for any Taxes have been asserted in writing against Transferor, and
(iii) no such deficiencies have been threatened in writing. There are no actions, suits, proceedings, investigations or claims pending or, to the knowledge of the Transferor, threatened
against, Transferor is respect of Taxes relating to the Business, nor are 

17

 

there
any material matters under discussion with any governmental authority relating to Taxes relating to the Business. 

        Section 6.19    Absence of Certain Changes and Events.    Except as set forth in Section 6.19 of the
Transferor Disclosure Letter, since December 31, 2003, Transferor has conducted the Business only in the Ordinary Course of Business and no event, circumstance or condition has occurred that
has caused a Material Adverse Effect. 

        Section 6.20    No Undisclosed Liabilities.    Except as disclosed in Section 6.20 of the Transferor
Disclosure Letter, with respect to the Business, Transferor has no material Liability except for Liabilities reflected and reserved in the Financial Statements and current Liabilities incurred in the
Ordinary Course of Business. 

        Section 6.21    Disclosure.    To the knowledge of the Transferor, there is no fact that has specific
application to Transferor (other than general economic or industry conditions) and that would reasonably be likely to have a Material Adverse Effect on the Acquired Assets or Business that has not
been set forth in this Agreement or in the Transferor Disclosure Letter. 

        Section 6.22    Affiliates.    Prior to the Closing Date, the Transferor shall deliver to Acquirer a letter
identifying all persons who are "affiliates" of the Transferor for purposes of Rule 145 under the Securities Act. The Transferor shall use its reasonable best efforts to cause each such person
to deliver to Acquirer on or prior to the Closing Date a written agreement substantially in the form attached as Appendix K hereto. 

 
 

ARTICLE VII    
    
    REPRESENTATIONS OF THE ACQUIRER    
    

        The Acquirer represents and warrants to the Transferor as follows: 

        Section 7.1    Existence and Good Standing; Authorization and Validity of Agreement.    

        (a)   The
Acquirer is a corporation duly incorporated, validly existing and in good standing under the laws of the State of Delaware. The Acquirer is duly qualified as a
foreign corporation and is in good standing in each jurisdiction in which such qualification is required by law, except where the failure to be so qualified or to be in good standing would not
prevent, interfere or delay the Acquirer from performing its obligations under this Agreement or the consummation of the transactions contemplated by this Agreement. The Acquirer has the corporate
power and authority to enter into this Agreement and the Ancillary Agreements to which it is a party and to consummate the transactions contemplated hereby and thereby. 

        (b)   The
execution, delivery and performance by the Acquirer of this Agreement and the Ancillary Agreements to which it is a party and the consummation of the transactions
contemplated hereby and thereby have been duly and validly authorized by all necessary corporate action on the part of the Acquirer and this Agreement has been, and the Ancillary Agreements to which
it is a party when executed and delivered by the Acquirer will be, duly and validly executed and delivered and the valid and binding obligations of the Acquirer, enforceable against it in accordance
with their respective terms, subject to (i) laws of general application relating to bankruptcy, insolvency and the relief of debtors and (ii) rules of law governing specific performance,
injunctive relief and other equitable remedies. Neither the execution, delivery and performance by the Acquirer of this Agreement or the Ancillary Agreements to which the Acquirer is a party, the
consummation by the Acquirer of the transactions contemplated hereby or thereby, nor compliance by the Acquirer with any provision hereof or thereof will conflict with, result in any violation of,
cause a default under (with or without due notice, lapse of time or both), give rise to any right of termination, amendment, cancellation or acceleration of any obligation contained in or the loss of
any benefit under or result in the creation of 

18

 

any
Encumbrance on or against any assets, rights or property of the Acquirer under any term, condition or provision of (x) any instrument or agreement to which the Acquirer is a party, or by
which the Acquirer or any of its properties, assets or rights may be bound or (y) any law, statute, rule, regulation, order, writ, injunction, decree, permit, concession, license or franchise
of any Governmental Authority applicable to the Acquirer or any of its properties, assets or rights, other than any such conflict, violation, default, right, loss or Encumbrance that would not
prevent, interfere or delay the Acquirer from performing its obligations under this Agreement or the consummation of the transactions contemplated by this Agreement, or conflict with or result in any
violation of the Acquirer's Certificate of Incorporation or Bylaws. Other than the Order by the SEC declaring the Registration Statement effective under the Securities Act, no Permit, Order,
authorization, consent or approval of or by, or any notification of or filing with, any Governmental Authority is required to be made or obtained by Acquirer in connection with the execution, delivery
and performance by the Acquirer of this Agreement or the Ancillary Agreements or the consummation by the Acquirer of the transactions contemplated hereby or thereby. Acquirer is not and will not be
required to obtain any consent from any Person, in connection with the execution, delivery or performance of this Agreement or any of the Ancillary Agreements or the consummation of any of the
transactions contemplated hereby or thereby. 

        Section 7.2    SEC Filings; Financial Statements; Compliance.    

        (a)   All
reports, statements and other documents required to have been filed by the Acquirer with the SEC pursuant to the Securities Act or the Exchange Act (the
"Acquirer SEC Documents") have been so filed on a timely basis. As of the time it was filed with the SEC (or, if amended or superseded by a filing prior
to the date of this Agreement, then on the date of such filing): (i) each of the Acquirer SEC Documents complied in all material respects with the applicable requirements of the Securities Act
or the Exchange Act (as the case may be); and (ii) none of the Acquirer SEC Documents contained any untrue statement of a material fact or omitted to state a material fact required to be stated
therein or necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading. 

        (b)   The
financial statements contained in the Acquirer SEC Documents: (i) complied as to form in all material respects with the published rules and regulations of the
SEC applicable thereto; (ii) were prepared in accordance with GAAP applied on a consistent basis throughout the periods covered (except as may be indicated in the notes to such financial
statements and, in the case of unaudited statements, as permitted by of the SEC, and except that unaudited financial statements may not contain footnotes and are subject to normal and recurring
year-end audit adjustments which will not, individually or in the aggregate, be material in amount); and (iii) fairly present the financial position of Acquirer as of the respective
dates thereof and the results of operations and cash flows of the Acquirer for the periods covered thereby. 

        (c)   Acquirer
and, to the knowledge of Acquirer, each of its officers and directors are in compliance in all material respects with (A) the applicable provisions of
Sarbanes-Oxley Act of 2002 and the related rules and regulations promulgated under such act or the Exchange Act as are currently in effect and (B) the applicable listing and corporate
governance requirements of NASDAQ. 

        Section 7.3    Shares.    

        (a)   Acquirer
has sufficient number of authorized but unissued shares of Common Stock reserved for issuance to complete the transactions contemplated by this Agreement. The
Shares have been duly authorized by all necessary corporate action on the part of the Acquirer, and when issued in accordance with this Agreement, will be validly issued, fully paid and nonassessable
and not subject to preemptive rights. 

19

 

        (b)   Upon
consummation of the transactions contemplated by this Agreement, the Shares issued to the Transferor will be freely tradable under the Securities Act on NASDAQ
without any volume or other restrictions thereon and without any registration or qualification of the resale thereof. 

        Section 7.4    Capitalization.    The authorized capital stock of the Acquirer consists of 50,000,000 shares of
Common Stock, par value $.01 per share, and 1,000,000 shares of preferred stock, par value $1.00 per share. As of the date of this Agreement, (a) 12,000,000 shares of Common Stock were issued
and outstanding, (b) options to purchase 840,000 shares of Common Stock were outstanding, (c) no warrants to purchase shares of Common Stock were outstanding and (d) no shares of
preferred stock of the Acquirer were issued and outstanding. 

        Section 7.5    Broker's or Finder's Fees.    No agent, broker, Person or firm is, or will be, entitled to any
commission or broker's or finder's fees from any Party, or from any Affiliate of any Party, in
connection with any of the transactions contemplated by this Agreement based upon arrangements made by or on behalf of Acquirer. Acquirer agrees to indemnify Transferor for any claims, losses or
expenses incurred by Transferor as a result of the representation in this Section 7.5 being untrue. 

 
 

ARTICLE VIII    
    
    ADDITIONAL AGREEMENTS    
    

        Section 8.1    Operation of Business.    

        (a)   Except
as contemplated by this Agreement, the Transferor Disclosure Letter or any of the Ancillary Documents, as may be necessary to carry out any of the transactions
contemplated by this Agreement or the Ancillary Agreements, as may be necessary to facilitate compliance with the requirements of any of the Assigned Contracts, or as consented to by the Acquirer,
which consent shall not be unreasonably withheld, or as otherwise required by applicable Law, prior to the Closing, the Transferor shall not: 

	(i)
	sell,
lease, license, sublicense, encumber or dispose of any Acquired Assets, except in the ordinary course of business consistent with past practices;

	(ii)
	enter
into any agreement or commitment or engage in any transaction which is not in the Ordinary Course of Business, other than agreements or commitments entered into in connection
with the wind-down of the business and operations of the Transferor in a manner that does not materially and adversely alter the value of the Acquired Assets;

	(iii)
	take
any action to waive or compromise any material claims (whether or not asserted in any pending litigation) which are included in the Acquired Assets; or

	(iv)
	agree
in writing or otherwise to take any of the foregoing actions. 

        (b)   Except
as contemplated by this Agreement, the Transferor Disclosure Letter or any of the Ancillary Documents, as may be necessary to carry out any of the transactions
contemplated by this Agreement or the Ancillary Agreements, as may be necessary to facilitate compliance with the requirements of any of the Assigned Contracts, or as consented to by the Acquirer,
which consent shall not be unreasonably withheld, or as otherwise required by applicable Law, prior to the Closing, the Transferor shall, conduct its operations in the Ordinary Course of Business, and
shall: 

	(i)
	report
periodically to Acquirer concerning the status of its business, operations and finances;

	(ii)
	engage
in no material involuntary terminations of management personnel without prior consultation with Acquirer;

	(iii)
	use
reasonable commercial efforts to maintain the Acquired Assets in a state of repair and condition that is consistent with the requirements and normal conduct of the Business; 

20

 

	(iv)
	use
reasonable commercial efforts to keep in full force and effect, without amendment, all material rights relating to the Acquired Assets;

	(v)
	comply
materially with all Laws applicable to the operations of the Business;

	(vi)
	cooperate
with Acquirer and assist Acquirer in identifying the permits and governmental authorization required by Acquirer to operate the Business from and after the Closing Date and
either transferring existing permits and governmental authorities of Transferor to Acquirer, where permissible, or obtaining new permits and governmental authorizations for Acquirer; and

	(vii)
	maintain
all books and records of Transferor relating to the Business in the Ordinary Course of Business. 

        Section 8.2    Review of the Transferor.    Subject to the provisions of the Confidentiality Agreement and
applicable Laws and regulations, prior to the Closing Date, Transferor will, after receiving reasonable advance notice from Acquirer, give Acquirer reasonable access to the premises, the books and
records (excluding records which are attorney-client privileged or considered attorney work product) of the Transferor that relate to the Acquired Assets during normal working hours, for the sole
purposes of enabling Acquirer (i) to further investigate, at Acquirer's sole expense, the Acquired Assets and any other appropriate matters germane to the subject matter of this Agreement and
the Ancillary Agreements and (ii) to verify the accuracy of the representations and warranties of the Transferor set forth in Section 6 or elsewhere in this Agreement. 

        Section 8.3    Access to Information; Further Action; Commercially Reasonable Efforts; Cooperation; Consents and
Approvals.    

        (a)   Each
of the Parties agrees to use its commercially reasonable efforts to take, or cause to be taken, all action to do or cause to be done, and to assist and cooperate
with each other Party in doing, all things necessary, proper or advisable to consummate and make effective, in the most expeditious manner practicable, the transactions contemplated by this Agreement
and the Ancillary Agreements (in each case, to the extent that the same is within the control of such Party), including, without limitation, (i) the obtaining of all necessary waivers, consents
and approvals from Governmental Authorities and the making of all necessary registrations and filings and the taking of all reasonable steps as may be necessary to obtain any approval or waiver from,
or to avoid any action or proceeding by, any Governmental Authority, (ii) the defending of any lawsuits or any other legal Proceedings whether judicial or administrative, challenging this
Agreement, the Ancillary Agreements or the consummation of the transactions contemplated hereby and thereby and (iii) causing the conditions set forth in Articles IX and X to be satisfied. 

        (b)   If,
after the Closing, in order properly to operate the Acquired Assets or prepare documents or reports required to be filed with Governmental Authorities or the
Acquirer's consolidated financial statements, it is necessary that the Acquirer obtain additional information within the Transferor's possession relating to the Assets (other than the Data and
Records, which are covered by Sections 8.3(g) and (h) below), the Transferor will furnish or cause its representatives to furnish such information, at reasonable times and upon reasonable
notice, to the Acquirer and its authorized representatives. The Transferor shall maintain and make available the information and records specified in this Section 8.3(b) for a period of five
(5) years after the Closing Date. 

        (c)   If,
after the Closing, in order to properly prepare documents or reports required to be filed with Governmental Authorities or Transferor's financial statements, it is
necessary that the Transferor obtain additional information within the Acquirer's possession relating to the Assets (other than the Data and Records, which are covered by Sections 8.3(g) and
(h) below), the Acquirer will furnish or cause its representative to furnish, at reasonable times and upon reasonable notice, such information to the Transferor and its authorized
representatives. The Acquirer shall maintain and make available the 

21

 

information
and records specified in this Section 8.3(c) for a period of five (5) years after the Closing Date. 

        (d)   Upon
the terms and subject to the conditions hereof, each of the Parties shall use commercially reasonable efforts to take, or cause to be taken, all appropriate action,
and to do, or cause to be done, all things necessary, proper or advisable under applicable Laws to consummate and make effective the transactions contemplated hereby. In the event that at any time
after the Closing any further action is necessary or desirable to carry out the purposes of this Agreement or the Ancillary, each Party shall use commercially reasonable efforts to promptly take all
such action. 

        (e)   The
Transferor agrees that, if reasonably requested by the Acquirer, it will cooperate with the Acquirer, at the Acquirer's expense, in enforcing the terms of any
agreements between the Transferor and any Third Party involving the Programs or the Product Candidates, including, without limitation, terms relating to confidentiality and the protection of the
Assigned Intellectual Property rights. In the event that the Acquirer is unable to enforce its Assigned Intellectual Property rights against a Third Party as a result of a rule or Law barring
enforcement of such rights by a transferee of such rights, the Transferor agrees to reasonably cooperate with the Acquirer by assigning to the Acquirer such rights as may be required by the Acquirer
to enforce its Assigned Intellectual Property rights in its own name. If such assignment still does not permit the Acquirer to enforce its Assigned Intellectual Property rights against the Third
Party, the Transferor agrees to initiate proceedings against such Third Party in the Transferor's name, provided that the Acquirer shall be entitled to participate in such Proceedings and provided
further that the Acquirer shall be responsible for the expenses, that may be incurred by the Transferor related to such proceedings. 

        (f)    To
the extent that any Transferor or the Acquirer identifies assets after the Closing that were not included as part of the Acquired Assets, but the absence of which
would constitute a breach or inaccuracy of the representation contained in this Agreement. The Transferor shall transfer all of its right, title and interest in such assets to the Acquirer, with such
transfer to be completed as promptly as commercially reasonable after such identification. 

        (g)   The
Parties will cooperate and work together to allocate the Data, Records and Materials in accordance with this Section 8.3(g). If certain Data, Records or
Materials relate primarily to the Programs and the Product Candidates, then possession of such Data, Records and/or Materials will be transferred to the Acquirer within a reasonable time period after
such relation is determined and in any event within forty-five (45) days after the Closing Date, except that the Transferor may redact any information contained in such Data or
Records that does not pertain primarily to the Programs and the Product Candidates and the Transferor may make at its own expense and retain electronic copies or photocopies of the portions of such
Data and Records that do not pertain exclusively to the Programs and the Product Candidates. If, on the other hand, certain Data, Records or Materials do not relate primarily to the Programs and the
Product Candidates, then possession of such Data, Records and Materials will be retained by the Transferor, within a reasonable time period after such relation is determined and in any event within
forty-five (45) days after the Closing Date, except that the Acquirer may redact any information contained in such Data or Records that pertains exclusively to the Programs and the
Product Candidates, and the Acquirer may make at its expense and retain electronic copies or photocopies of the portions of such documents that pertain primarily to the Programs and the Product
Candidates. 

        (h)   If
either Party requires access for legal or regulatory purposes to original copies of any Data or Records that have been transferred to or retained by the other Party,
the Party in possession of such originals will make such originals available to the other Party on a temporary basis on such Party's reasonable request. The Party receiving such originals will return
them to the Party that provided them as promptly as practicable and in any event promptly after they are no longer need for such legal or regulatory purpose. 

22

 

        (i)    Subject
to the provisions of Section 3.2(b) of this Agreement, neither the Transferor nor the Acquirer, nor any of the Acquirer's subsidiaries or affiliates,
shall take any action, or fail to take any action, that may adversely affect the treatment of the transfer and acquisition of the Acquired Assets from qualifying as a reorganization under
section 368(a)(1)(C) of the Code. The Transferor and the Acquirer shall, and Acquirer shall cause its subsidiaries or other affiliates to, take the position for all purposes that the transfer
and acquisition of the Acquired Assets qualifies as a reorganization under section 368(a)(1)(C) of the Code. 

        Section 8.4    Public Disclosure.    Except as otherwise required by applicable Law or regulation, each Party
shall consult with the other Party and obtain such other Party's consent, which consent shall not be unreasonably withheld, before issuing any press release or otherwise making any public statements
with respect to this Agreement or the matters contained herein and will not issue any such press release or make any such statement prior to such consultation and agreement. This Section 8.4
shall survive any termination of this Agreement. 

        Section 8.5    Apportionment.    All real property and personal property Taxes, assessments and similar
governmental charges levied with respect to the Acquired Assets for a taxable period which includes
(but does not end on) the Closing Date shall be apportioned between the pre-Closing Tax period and the post-Closing Tax period as of the Closing Date on a per diem basis.
Thereafter, the Transferor shall notify the Acquirer upon receipt of any bill for real or personal property Taxes or similar charges relating to the Acquired Assets, part or all of which are
attributable to any post-Closing Tax period, and shall promptly deliver such Tax bill to the Acquirer who shall pay the same to the appropriate governmental authority; provided that if
such bill covers the pre-Closing period, the Transferor shall also remit to the Acquirer, prior to the due date of such Tax bill, payment for the proportionate amount of such bill that is
attributable to the pre-Closing period. If either the Transferor or the Acquirer shall make a payment for which such Party is entitled to have such payment made by the other Party under
this Section, the other Party shall make reimbursement promptly but in no event later than 15 Business Days after the presentation of a statement setting forth the amount of reimbursement to which the
presenting Party is entitled along with such supporting evidence as is reasonably necessary to calculate the amount of reimbursement. Any payment between the Parties required under this Section shall
bear interest at the rate per annum determined, from time to time, under the provisions of Section 6621(a)(2) of the Code for each day from the date the relevant Tax is due to be paid to the
Tax authority until paid. 

        Section 8.6    Confidentiality.    The Parties have previously executed the mutual non-disclosure
agreement dated December 14, 2004 (the "Confidentiality Agreement"), which shall continue in full force and effect in accordance with its terms.
In addition, the Parties agree that the terms and conditions of the transactions contemplated by this Agreement, the information exchanged in connection with the execution hereof and the consummation
of the transactions contemplated hereby shall be subject to the same standard of confidentiality as set forth in the Confidentiality Agreement. 

        Section 8.7    No Right to Continued Employment or Benefits.    No provision in this Agreement shall create any
Third Party beneficiary or other right in any Person (including any beneficiary or dependent thereof) for any reason, including, without limitation, in respect of continued, resumed or new employment
with the Transferor or the Acquirer (or any Affiliate of the Transferor or the Acquirer) or in respect of any benefits that may be provided, directly or indirectly, under any plan or arrangement
maintained by the Transferors, the Acquirer or any Affiliate of the Transferor or the Acquirer. Except as otherwise expressly provided in this Agreement, the Acquirer is not under any obligation to
hire any employee of the Transferor, provide any employee with any particular benefits, or make any payments or provide any benefits to those employees of the Transferor whom a Buyer chooses not to
employ. 

23

  

        Section 8.8    Cooperation.    

        (a)   The
Transferor covenants and agrees that, during the period between the date hereof and the Closing, the Transferor shall promptly inform Acquirer in writing of any
material breaches of the representations and warranties contained in Article VI or any material breach of any covenant of the Transferor. 

        (b)   The
Acquirer covenants and agrees that, during the period between the date hereof and the Closing, the Acquirer shall promptly inform Transferor in writing of any
material breaches of the representations and warranties contained in Article VII or any material breach of any covenant of the Acquirer. 

        Section 8.9    Consents; Releases.    Acquirer will cooperate with Transferor, and will provide Transferor with
such assistance as Transferor may reasonably request, for the purpose of arranging for Transferor to be released and discharged from its obligations and other liabilities under the Assigned Contracts. 

        Section 8.10    Possession of the Assets.    Acquirer will make all necessary arrangements for Acquirer to take
possession of the Acquired Assets (other than intangible assets), and, at Acquirer's expense, to transfer the same to a location operated by Acquirer, promptly, but in no event later than
30 days following the Closing. 

        Section 8.11    Non-Solicitation.    Prior to the Closing, the Transferor will not solicit or
initiate the submission of any proposal or offer from any Person relating to the acquisition of any portion of the Acquired Assets or as to all or substantially all of the capital stock or assets of
the Transferor (including, without limitation, any acquisition structured as a merger, consolidation, or share exchange), provided,  however, that the
Transferor and its directors and officers will remain free to participate in any unsolicited discussions or negotiations regarding,
furnish any information with respect to, assist or participate in, or facilitate in any other manner any effort or attempt by any Person to do or seek any of the foregoing to the extent their
fiduciary duties may require. 

        Section 8.12    Ownership of Intellectual Property Developed by Transferor Employees.    The Transferor
acknowledges that each current employee of the Transferor has executed and delivered to the Transferor an Employee Non-Disclosure, Inventions Assignment and Non-Compete
Agreement (the "Inventions Assignment Agreements"), copies of which
have been provided to the Acquirer, and each of which is included in the Assigned Contracts. In the event of a dispute between the Transferor and any such employee regarding the ownership of any such
Intellectual Property or such Inventions covered by the Inventions Assignment Agreements, the Acquirer shall have the right to take any actions, on the Transferor's behalf, that are deemed appropriate
by the Acquirer (in its sole discretion) to resolve any such dispute, including without limitation litigation of such dispute; and provided further that the Transferor shall reasonably cooperate with
the Acquirer with respect to such actions, with any and all costs and out-of-pocket costs of the Transferor incurred in connection with such cooperation, including, without
limitation in connection with any litigation, to be paid by the Acquirer. 

        Section 8.13    Diligent Efforts.    

        (a)   Acquirer
covenants and agrees that it shall use commercially reasonable, diligent efforts to develop and effect introduction of the Product Candidates into the
commercial markets as soon as reasonably practicable, consistent with sound and reasonable business practice and judgment; provided,  however, that nothing
in this Section 8.13(a) shall require the Acquirer to continue with the research, development and commercialization of any
Product Candidate if the Acquirer makes a good faith determination that continuing the development thereof would not be commercially reasonable. 

        (b)   Acquirer
further covenants and agrees that it shall use commercially reasonable, diligent efforts to enter into the Eisai License Agreement prior to the expiration of
the 12-month period 

24

 

referred
to in Section 3.1(d) hereof, provided, however, that nothing in this
Section 8.13(b) shall require the Acquirer to enter into the Eisai License Agreement if the Acquirer makes a good faith determination that entering into said agreement would not be commercially
reasonable. 

        Section 8.14    No Issuance of Additional Shares.    Acquirer covenants and agrees that except in connection
with the IPO, and pursuant to any stock options outstanding as of the Execution Date, it will not, prior to the Closing, issue additional shares of its Common Stock, or any options or other rights
with respect thereto. 

        Section 8.15    SEC Rule 144 Reporting.    With a view to making available to the Transferor and its
stockholders (the "Holders") the benefits of certain rules and regulations of the SEC regarding transfer of the Shares, for a period of two years following the effective date of the IPO, the Acquirer
will use its reasonable best efforts to: 

        (a)   Make
and keep adequate current public information available, as those terms are understood and defined in SEC Rule 144 or any similar or analogous rule
promulgated under the Securities Act; 

        (b)   File
with the SEC, in a timely manner, all reports and other documents required of the Company under the Exchange Act; and 

        (c)   Furnish
to such Holder promptly upon request: a written statement by the Acquirer as to its compliance with the reporting and public information requirements of SEC
Rule 144 and the Securities Act and the Exchange Act (at any time after it has become subject to such reporting requirements). 

 
 

ARTICLE IX    
    
    CONDITIONS TO THE OBLIGATIONS OF THE ACQUIRER    
    

        Section 9.1    Conditions to the Acquirer's Obligations.    The obligations of the Acquirer to purchase the
Acquired Assets and to take the other actions required to be taken by Acquirer at the Closing hereunder are conditioned upon the satisfaction or waiver in writing (subject to applicable Law), on or
prior to the Closing Date, of the following conditions: 

        (a)    Closing of Initial Public Offering.    The Registration Statement shall have been declared effective by the
SEC, and the Acquirer's IPO shall have closed. 

        (b)    Representations and Warranties.    The representations and warranties of Transferor contained in
Article VI (and any representations and warranties of Transferor set forth in the Ancillary Agreements) qualified by materiality shall be true and correct in all respects, except for such
exceptions as are permitted by this Agreement, without further qualification as of the date hereof and the Closing Date, as if made on such date (except for such representations and warranties that
relate to a specific date, which shall be true and correct in all respects as of such date), and all representations and warranties of the Transferor contained in Article VI (and any
representations and warranties of the Transferor set forth in the Ancillary Agreements) that are not so qualified shall be true and correct in all material respects as of the Closing Date, as if made
on such date (except for such representations and warranties that relate to a specific date, which shall be true and correct in all material respects as of such date);  provided, however, that, for purposes of this Section 9.1(b), any inaccuracies in the
representations and warranties of the Transferor will be disregarded unless all such inaccuracies, considered collectively, would have a Material Adverse Effect. Transferor shall have delivered to the
Acquirer a certificate, dated as of the Closing Date and signed by Transferor's President (the
"Transferor Closing Certificate"), confirming that the conditions set forth in this Section 9.1(b) have been satisfied. 

        (c)    Performance of Agreements.    Each and all of the agreements of the Transferor to be performed on or prior to
the Closing pursuant to the terms hereof shall have been duly performed in 

25

 

all
material respects, and the Transferor Closing Certificate shall confirm that the conditions set forth in this Section 9.1(c) have been satisfied. 

        (d)    Consents and Approvals.    Acquirer shall have received the documents required to be delivered by Transferor to
Acquirer pursuant to Section 4.2. 

        (e)    No Injunction.    No court or other Governmental Authority of competent jurisdiction shall have issued an order
or stay pending appeal which shall then be in effect restraining or prohibiting the completion of the transactions contemplated hereby. 

        (f)    Statutes.    No Law of any kind shall have been enacted, entered, promulgated or enforced by any Governmental
Authority which prohibits, or has the effect of making illegal, the consummation of the transactions contemplated hereby and shall remain in effect. 

        (g)    Governmental Approvals.    All material governmental and other material consents and approvals necessary to
permit the consummation of the transactions contemplated by this Agreement shall have been received. 

 
 

ARTICLE X    
    
    CONDITIONS TO THE OBLIGATIONS OF THE TRANSFEROR    
    

        Section 10.1    Conditions to the Transferor's Obligations.    The obligations of the Transferor to consummate
the Closing are conditioned upon the satisfaction or waiver in writing (subject to applicable Law), on or prior to the Closing Date, of the following conditions: 

        (a)   The
Registration Statement relating to the sale of the Shares to be delivered to the Transferor as consideration under Section 3.1(a) shall have been declared
effective by the SEC, the Acquirer's IPO shall have closed, and the Shares delivered as Consideration under Section 3.1(a) shall be freely tradable under the Securities Act and listed for
trading on NASDAQ without any volume limitations or other restrictions thereon (except as provided in any contractual lock-up agreement entered into by the Transferor and its Affiliates in
connection with the IPO and any restrictions contained in any applicable Law) and without any further registration or qualification of the resale thereof by the Transferor or any of it Affiliates
except as contained in Rule 145 of the Securities Act and any other applicable provision of the Securities Act, the Exchange Act or applicable Law. 

        (b)    Representations and Warranties.    The representations and warranties of Acquirer contained in
Article VII (and any representations and warranties of Acquirer set forth in the Ancillary Agreements) qualified by materiality shall be true and correct in all respects, except for such
exceptions as are permitted by this Agreement, without further qualification as of the Closing Date, as if made on such date (except for such representations and warranties that relate to a specific
date, which shall be true and correct in all respects as of such date), and all representations and warranties of the Acquirer contained in Article VII (and any representations and warranties
of Acquirer set forth in the Ancillary Agreements) that are not so qualified shall be true and correct in all material respects as of the Closing Date, as if made on such date (except for such
representations and warranties that relate to a specific date, which shall be true and correct in all material respects as of such date) with only such exceptions as are permitted by this Agreement or
which, individually or in the aggregate, would not (i) have a material adverse effect on the business, capitalization, assets (tangible or intangible), liabilities or operations of the Acquirer
or (ii) prevent, interfere or delay the Acquirer from performing its obligations under this Agreement or the consummation of the transactions contemplated by this Agreement. Acquirer shall have
delivered to Transferor a certificate, dated as of the Closing Date and signed by the Acquirer's President (the "Acquirer Closing Certificate"),
confirming that the conditions set forth in this Section 10.1(a) have been satisfied. 

26

 

        (c)    Performance of Agreements.    Each and all of the agreements of the Acquirer to be performed on or prior to the
Closing pursuant to the terms hereof and the Ancillary Agreements shall have been duly performed in all material respects, and the Acquirer Closing Certificate shall confirm that the conditions set
forth in this Section 10.1(b) have been satisfied. 

        (d)    Consents and Approvals.    Transferor shall have received the documents required to be delivered by Acquirer to
Transferor pursuant to Section 4.3. 

        (e)    Payment of Acquisition Price.    Acquirer shall have paid to the Transferor (subject to
Section 4.3(iii)) the Acquisition Price in accordance with Section 3.1(a). 

        (f)    No Injunction.    No court or other Governmental Authority of competent jurisdiction shall have issued an order
or stay pending appeal which shall then be in effect restraining or prohibiting the completion of the transactions contemplated hereby. 

        (g)    Statutes.    No Law of any kind shall have been enacted, entered, promulgated or enforced by any Governmental
Authority which prohibits, or has the effect of making illegal, the consummation of the transactions contemplated hereby and shall remain in effect. 

        (h)    Governmental Approvals.    All material governmental and other material consents and approvals necessary to
permit the consummation of the transactions contemplated by this Agreement shall have been received. 

 
 

ARTICLE XI    
    
    TERMINATION    
    

        Section 11.1    Events of Termination.    This Agreement may be terminated and the transactions contemplated
hereby may be abandoned at any time prior to the Closing: 

        (a)   by
mutual written consent of the Parties; 

        (b)   by
any Party, if the Closing Date shall not have occurred by June 30, 2005; provided, that the right to terminate
this Agreement under this Section 11.1(b) shall not be available to any Party whose failure to fulfill any obligation under this Agreement shall be the cause of the failure of the Closing Date
to occur on or before such date; 

        (c)   by
the Transferor if (i) there shall have been a material breach on the part of Acquirer of any of its representations, warranties or covenants such that the
conditions set forth in Section 10.1 would not be satisfied as of the time of such breach, (ii) Transferor shall have given written notice of such breach to Acquirer, (iii) at
least twenty days shall have elapsed since the delivery of such written notice to Acquirer and (iv) such breach shall not have been cured in all material respects; provided that Transferor may
not terminate this Agreement pursuant to this Section 11.1(c) if it shall have willfully and materially breached this Agreement; 

        (d)   by
the Acquirer if (i) there shall have been a material breach on the part of Transferor of any of its representations, warranties or covenants such that the
conditions set forth in Section 9.1 would not be satisfied as of the time of such breach, (ii) Acquirer shall have given written notice of such breach to Transferor, (iii) at
least twenty days shall have elapsed since the delivery of such written notice to Transferor and (iv) such breach shall not have been cured in all material respects; provided that the Acquirer
may not terminate this Agreement pursuant to this Section 11.1(d) if it shall have willfully and materially breached this Agreement; 

        (e)   by
the Acquirer, if the Acquirer makes a determination to withdraw the Registration Statement and terminates its IPO; 

27

 

        (f)    by
any Party, if there shall be any Law of any Governmental Authority that makes consummation of the transactions contemplated hereby illegal or otherwise prohibited or
if any judgment, injunction, order or decree of any competent authority prohibiting such transactions is entered and such judgment, injunction, order or decree shall have become final and
non-appealable; 

        If
either Party wishes to terminate this Agreement pursuant to this Section 11.1, such Party will deliver to the other Party a written termination notification stating that such
Party is terminating this Agreement and setting forth a brief statement of the basis on which such Party is terminating this Agreement. 

        Section 11.2    Effect of Termination.    

        (a)   Except
as otherwise provided in this Section 11.2, in the event that this Agreement shall be terminated pursuant to Section 11.1, all further obligations
of the Parties under this Agreement shall terminate without further liability or obligation of any Party to any other Party hereunder except for those provisions that expressly survive the termination
of this Agreement; provided, that (i) the Parties will remain bound by the provisions of the Confidentiality Agreement and (ii) no Party
shall be released from liability hereunder if this Agreement is terminated and the transactions abandoned by reason of (A) failure of such Party to have performed its obligations hereunder in
any respect or (B) any knowing misrepresentation made by such Party of any matter set forth herein. 

        (b)   This
Section 11.2 shall survive any termination of this Agreement. 

 
 

ARTICLE XII    
    
    MISCELLANEOUS    
    

        Section 12.1    Expenses; Fees.    Except as otherwise set forth in the Agreement, the Parties shall pay all of
their own expenses relating to the transactions contemplated by this Agreement. 

        Section 12.2    APPLICABLE LAW.    THIS AGREEMENT IS TO BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE
LAWS OF THE STATE OF DELAWARE, WITHOUT REFERENCE TO CHOICE OF LAW PRINCIPLES, INCLUDING ALL MATTERS OF CONSTRUCTION, VALIDITY AND PERFORMANCE. 

        Section 12.3    JURISDICTION; WAIVER OF JURY TRIAL.    THE PARTIES ACKNOWLEDGE AND AGREE THAT THE COURTS OF THE
STATE OF NEW JERSEY AND THE FEDERAL COURTS OF THE UNITED STATES OF AMERICA LOCATED IN THE STATE OF NEW JERSEY WILL HAVE SOLE JURISDICTION OVER ANY AND ALL DISPUTES BETWEEN OR AMONG THE PARTIES,
WHETHER IN LAW OR EQUITY, ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY AGREEMENT CONTEMPLATED HEREBY. EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY CONSENTS AND SUBMITS TO THE JURISDICTION OF
SUCH COURTS AND WAIVES ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATED TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY. 

        Section 12.4    Captions; Headings.    The Article and Section captions and the headings set forth herein are
for reference purposes only, and shall not in any way affect the meaning or interpretation of this Agreement. 

        Section 12.5    Notices.    All notices, requests, demands, waivers and other communications required or
permitted to be given under this Agreement or any Ancillary Agreement shall be in writing and shall be deemed to have been duly given if delivered in person or mailed, certified or registered mail
with 

28

 

postage
prepaid, or sent by telex, telegram or telecopy and a confirmation of transmission is obtained, as follows: 

	(a)
	if
to the Transferor, to:

Alteris
Therapeutics, Inc.

416 South 10th Street

Philadelphia, PA 19147

Facsimile: (215) 923-0567

Attention: Dr. Albert J. Wong, Interim President

with
a copy to:

Duane
Morris LLP

One Liberty Place

Philadelphia, PA 19103-7396

Facsimile: (215) 979-1020

Attention: Kathleen M. Shay, Esq. 

	(b)
	if
to the Acquirer, to:

Celldex
Therapeutics, Inc.

519 Route 173 West

Bloomsbury, NJ 08804

Facsimile: (908) 713-6002

Attention: Anthony S. Marucci, Vice President

with
a copy to:

Satterlee
Stephens Burke & Burke LLP

230 Park Avenue

New York, NY 10169

Facsimile: (212) 818-9607

Attention: Dwight A. Kinsey, Esq. 

        or
to such other Person or address as any Party shall specify by notice in writing to each of the other Parties. All such notices, requests, demands, waivers and communications shall be
deemed to have been received on the date of delivery unless if mailed, in which case on the third Business Day after the mailing thereof except for a notice of a change of address, which shall be
effective only upon receipt thereof. 

        Section 12.6    Assignment; Parties in Interest.    This Agreement may not be transferred, assigned, pledged or
hypothecated by any Party (whether voluntarily, involuntarily, by way of merger or otherwise) to any other Person without the prior written consent of the other Party except that Transferor may assign
without the prior written consent of Acquirer its rights to receive the Acquisition Price. This Agreement shall be binding upon and shall inure to the benefit of the Parties and their respective
successors and permitted assigns. 

        Section 12.7    Counterparts.    This Agreement may be executed in three (3) or more counterparts, in
original form or by facsimile, each of which shall be deemed an original, but all of which together will constitute one and the same document. 

        Section 12.8    Entire Agreement.    This Agreement, including the exhibits, schedules and other documents
referred to herein which form a part hereof, and the Confidentiality Agreement, contains the entire understanding of the Parties with respect to the subject matter contained herein and therein.
This Agreement supersedes all prior agreements and understandings between the Parties with respect to such subject matter. 

29

 

        Section 12.9    Severability; Enforcement.    The invalidity of any portion hereof shall not affect the
validity, force or effect of the remaining portions hereof. If it is ever held that any restriction hereunder is too broad to permit enforcement of such restriction to its fullest extent, each Party
agrees that a court of competent jurisdiction may enforce such restriction to the maximum extent permitted by Law, and each Party hereby consents and agrees that such scope may be judicially modified
accordingly in any proceeding brought to enforce such restriction. 

        Section 12.10    Amendments; Waiver.    This Agreement may not be changed orally, but only by an agreement in
writing signed by all Parties. Any provision of this Agreement can be waived, amended, supplemented or modified by written agreement of the Parties. The failure of any Party to enforce at any time any
of the provisions of this Agreement shall in no way be construed to be a waiver of any such provision, nor in any way to affect the validity of this Agreement or any part hereof or the right of such
Party thereafter to enforce each and every such provision. No waiver of any breach of or non-compliance with this Agreement shall be held to be a waiver of any other or subsequent breach
or non-compliance. 

        Section 12.11    No Strict Construction.    The Parties hereto have participated jointly in the negotiation and
drafting of this Agreement. In the event any ambiguity or question of intent or interpretation arises, this Agreement shall be construed as if drafted jointly by all Parties hereto, and no presumption
or burden of proof shall arise favoring or disfavoring any Party by virtue of the authorship of any provision of this Agreement. 

        Section 12.12    Pronouns.    As used herein, all pronouns shall include the masculine, feminine, neuter,
singular and plural thereof whenever the context and facts require such construction. 

        Section 12.13    No Third Party Beneficiaries.    Nothing express or implied in this Agreement is intended to
confer, nor shall anything herein confer, upon any Person other than the Parties and the respective successors or assigns of the Parties, any rights, remedies, obligations or liabilities whatsoever. 

        Section 12.14    No Joint Venture.    No party hereto shall make any warranties or representations, or assume
or create any obligations, on the other party's behalf except as may be expressly permitted hereunder or in writing by such other party. Each Party shall be solely responsible for the actions of all
its respective employees, agents and representatives. 

        Section 12.15    Specific Performance.    The transactions contemplated by this Agreement are unique
transactions and any failure on the part of any Party to complete the transactions contemplated by this Agreement or any of the Ancillary Agreements on the terms of this Agreement or any of the
Ancillary Agreements will not be fully compensable in damages and the breach or threatened breach of the provisions of this Agreement or any of the Ancillary Agreements would cause the
non-breaching Party irreparable harm. Accordingly, in addition to and not in limitation of any other remedies available to the non-breaching Party for a breach or threatened
breach of this Agreement or any of the Ancillary Agreements, such Party will be entitled to specific performance of this Agreement or any of the Ancillary Agreements upon any breach by the other
Party, and to an injunction restraining any such party from such breach or threatened breach. 

[Signature Page Follows.]

30

 

        IN WITNESS WHEREOF, each of the Parties has caused this Agreement to be executed by its officers thereunto duly authorized, all as of the
day and year first above written. 

	 	 	CELLDEX THERAPEUTICS, INC.
	

 	
 	

By:	

    
 Name: Michael W. Fanger

Title: President and Chief Executive Officer
	    	 	 	 
	

 	
 	
ALTERIS THERAPEUTICS, INC.
	

 	
 	

By:	

    
 Name: Dr. Albert J. Wong

Title: Interim President

31

 
 

APPENDIX A    
    

 
 

Bill of Sale    
    

        BILL OF SALE, effective as of 12:01 a.m. (Eastern Standard Time)
on                                    , 2005, from Alteris
Therapeutics, Inc., a
Delaware corporation ("Transferor"), to Celldex Therapeutics, Inc., a Delaware corporation ("Acquirer"). 

RECITAL  

        Transferor is executing and delivering this Bill of Sale to Acquirer for the purpose of selling, assigning, transferring, and delivering to, and vesting in, the
Acquirer all right, title and interest of the Transferor in and to the Acquired Assets (such term and all other capitalized terms used without definition herein having the means ascribed thereto in
the Asset Purchase Agreement dated as of January    , 2005, by and between Transferor and Acquirer (the "Purchase Agreement")). 

AGREEMENT  

        Section 1. Sale and Transfer of Acquired Assets. In consideration
of the premises contained herein and for the other good and valuable consideration specified in the Purchase Agreement, the receipt, adequacy and legal sufficiency of which are hereby acknowledged,
and as contemplated by Section 2.1 of the Purchase Agreement, Transferor hereby sells, transfers, assigns, conveys, grants and delivers to, and vests in, Acquirer and its successors and assigns
forever, effective as of 12:01 a.m. (Eastern Standard Time) on                            , 2005 (the
"Effective Time"), all of Transferor's right, title and interest in and to all of the
Acquired Assets, free and clear of all Encumbrances other than Permitted Encumbrances. 

        TO
HAVE AND TO HOLD all of the Acquired Assets unto Acquirer and its successors and assigns forever. 

        Section 2. Power of Attorney. Without limiting Section 3 hereof, Transferor
hereby constitutes and appoints Acquirer, its successors and assigns, the true and lawful agent(s) and attorney(s) in fact of Transferor, with full power of substitution and resubstitution, in whole
or in part, in the name and stead of Transferor but on behalf and for the benefit of Acquirer and its successors and assigns, from time to time: 

        (a)   to
demand, receive and collect any and all of the Acquired Assets and to give receipts and releases for and with respect to the same, or any part thereof; 

        (b)   to
institute and prosecute, in the name of Transferor or otherwise, any and all proceedings at law, in equity or otherwise, that Acquirer or its successors and assigns
may deem proper in order to collect or reduce to possession any of the Acquired Assets and in order to collect or enforce any claim or right of any kind hereby assigned or transferred, or intended so
to be; and 

        (c)   to
do all things legally permissible, required or reasonably deemed by Acquirer to be required to recover and collect the Acquired Assets and to use Transferor's name in
such manner as Acquirer may reasonably deem necessary for the collection and recovery of same, 

        Transferor
hereby declaring that the foregoing powers are coupled with an interest and are and shall be irrevocable by Transferor. 

        Notwithstanding
the foregoing, prior to exercising any rights under this Section 2, Assignee shall first notify Assignor of such intent and shall use commercially reasonable
efforts to provide Assignor with the opportunity to act under Section 3 hereof. 

        Section 3. Further Actions. Transferor, for itself and its successors and assigns,
hereby covenants and agrees that, at any time and from time to time forthwith upon the written request of Acquirer, Transferor will do, execute, acknowledge, and deliver or cause to be done, executed,
acknowledged, or delivered, all and every such further acts, instruments, deeds, assignments, transfers, conveyances, 

 

powers
of attorney, and assurances as may be reasonably requested by Acquirer in order to more effectively sell, assign, transfer, and convey to, and vest in, Acquirer and its successors and assigns,
or to aid and assist Acquirer in reducing to possession and use, any or all of the Acquired Assets, all at the sole cost and expense of Transferor. 

        Section 4. Terms of the Purchase Agreement. The terms of the Purchase Agreement,
including but not limited to Transferor's representations, warranties, covenants, agreements and indemnities relating to the Acquired Assets, are incorporated herein by this reference. Transferor
acknowledges and agrees that the representations, warranties, covenants, agreements and indemnities contained in the Purchase Agreement shall not be superseded hereby but shall remain in full force
and effect to the full extent provided therein. In the event of any conflict or inconsistency between the terms of the Purchase Agreement and the terms hereof, the terms of the Purchase Agreement
shall govern. 

        Section 5. Parties in Interest. Nothing herein expressed or implied is intended or
shall be construed to confer upon or give to any person or entity, other than Transferor and Acquirer, and their respective successors and assigns, any rights or remedies by reason of this Bill of
Sale. 

        Section 6. Binding Effect. This Bill of Sale is executed by, and shall be binding
upon, Transferor and its successors and assigns, for the uses and purposes above set forth and referred to, as of the effective date thereof. 

        Section 7. Governing Law. This Bill of Sale shall be governed by the internal laws
of the State of Delaware without giving effect to the conflict of laws provisions thereof. 

        Section 8.
Execution. The delivery of this Bill of Sale and the signature pages hereof by facsimile transmission shall constitute
effective execution and delivery of this Bill of Sale by Transferor and may be used in lieu of the original Bill of Sale for all purposes. Signature of the Transferor transmitted by facsimile shall be
deemed to be Transferor's original signature for all purposes. 

        IN
WITNESS WHEREOF, Transferor has caused this Bill of Sale to be signed as of the date set forth above. 

	 	 	 	 	 	 	 
	 	 	 	 	ALTERIS THERAPEUTICS, INC.
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	By:	 	/s/  DR. ALBERT J. WONG      
 Name: Dr. Albert J. Wong

Title: Interim President
	 	 	 	 	 	 	 
	ACKNOWLEDGED AND AGREED TO:

CELLDEX THERAPEUTICS, INC.	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	By:	 	/s/  DR. MICHAEL W. FANGER      
 Dr. Michael W. Fanger

President	 	 	 	 

2

 
 

APPENDIX B    
    

 
 

ASSIGNMENT AND ASSUMPTION AGREEMENT    
    

        This Assignment and Assumption Agreement (the "Assignment and Assumption Agreement") effective as of 12:01 a.m. (Eastern Standard Time)
on                        ,
2005, by and between Alteris Therapeutics, Inc., a Delaware corporation (the "Assignor"), and Celldex Therapeutics, Inc., a Delaware corporation ("Assignee"). Capitalized terms used
herein without definition having the meanings given such terms in the Purchase Agreement (as defined below). 

        FOR
VALUE RECEIVED, Assignor, in accordance with that certain Asset Purchase Agreement dated as of January    , 2005 (the "Purchase Agreement") by and among Assignor and
Assignee, hereby assigns, transfers and sets over unto Assignee its right, title and interest, legal and equitable in and to all of the Assigned Contracts, including those set forth on
Schedule I hereto (the "Assumed Contracts"), free and clear of all Encumbrances other than Permitted Encumbrances and the other Assumed Liabilities. Assignee hereby accepts the assignment of
the Assumed Contracts and the other Assumed Liabilities and hereby assumes and agrees to pay, perform and discharge the Assumed Contracts and the other Assumed Liabilities. Assignee hereby states that
assumption by Assignee of the Assumed Liabilities shall in no way expand the rights or remedies of third parties against Assignee as compared to the rights or remedies which such parties would have
had against Assignor had the assumption of the Assumed Liabilities by Assignee not taken place. Assignee further states that nothing contained herein shall be deemed to foreclose Assignee from
contesting in good faith Assignor's or Assignee's duties and liabilities to third parties relating to the Assumed Contacts or the other Assumed Liabilities. 

        Each
Party, for itself and its successors and assigns, hereby covenants and agrees that, at any time(s) and from time to time after delivery of this instrument, at a Party's request, but
without further consideration, such other Party will do, execute, acknowledge or deliver, or will cause to be done, executed, acknowledged or delivered, all such further acknowledgments, deeds,
conveyances, transfers, and similar instruments of assignment as may be reasonable and necessary for the conveying, assigning, transferring, confirming or vesting in Assignee, and the assumption by
Assignee of, any of the Assumed Contracts or other Assumed Liabilities. 

        The
principal purpose of this Assignment and Assumption Agreement is to aid in the implementation of the Purchase Agreement and, therefore, this Assignment and Assumption Agreement
incorporates
and is subject to the provisions of the Purchase Agreement, all of which are incorporated herein by reference. In the event that any provision of this Assignment and Assumption Agreement is found to
be inconsistent with the provisions of the Purchase Agreement, the provisions of the Purchase Agreement shall control. 

        This
instrument is executed by, and shall be binding upon Assignor and Assignee, and their respective successors and assigns, for the uses and purposes above set forth and referred to
and shall inure to the benefit of Assignee and Assignor and their respective successors and assigns. 

        This
instrument shall be governed by and construed and enforced in accordance with the laws (other than those governing conflict of law questions) of the State of Delaware. 

 

        IN
WITNESS WHEREOF, the parties hereto have caused this Assignment and Assumption Agreement to be executed by their respective duly authorized officers, effective as
of                        
    , 2005. 

	 	 	 	 	 
	ASSIGNOR:	 	 
	 	 	 	 	 
	ALTERIS THERAPEUTICS, INC.	 	 
	 	 	 	 	 
	 	 	 	 	 
	By:	 	
 Name: Dr. Albert J. Wong

Title: Interim President	 	 
	 	 	 	 	 
	ASSIGNEE:	 	 
	 	 	 	 	 
	CELLDEX THERAPEUTICS, INC.	 	 
	 	 	 	 	 
	 	 	 	 	 
	By:	 	
 Name: Dr. Michael W. Fanger

Title: President and Chief Executive Officer	 	 

2

 
 
 

SCHEDULE I
  Assumed Contracts    
    

	1.
	The
Company has entered into three License Agreements with Thomas Jefferson University ("TJU") with respect to the license to the Company of the patents set forth in
Section 6.9(a) of the Schedule under "Patents," which list TJU as the assignee of such patents. Each of the License Agreements is effective as of February 1, 2003.

	2.
	The
Company has entered into a License Agreement with Duke University ("Duke") and The Johns Hopkins University ("JHU") with respect to the license to the Company of the patent set
forth in Section 6.9(a) of the Schedule under "Patents," which lists Duke and JHU as the assignees of such patent. The License Agreement is effective as of December 31, 2003.

	3.
	Confidential
Disclosure Agreement dated October 7, 2004 between the Company and Chiltern International, Inc.

	4.
	Confidentiality
Agreement dated September 6, 2004 between IBEX Technologies, Inc. and the Company.

	5.
	Mutual
Confidentiality Agreement entered into on August 4, 2004 and August 6, 2004 between the Company and Plexus Ventures, LLC.

	6.
	Mutual
Confidentiality Agreement dated April 22, 2004 among the Company, Eisai Medical Research, Inc. and Eisai Research Institute of Boston, Inc.

	7.
	Mutual
Confidentiality Agreement dated January 28, 2004 and January 22, 2004 between MacroGenics, Inc. and the Company.

	8.
	Nondisclosure
Agreement dated November 24, 2003 between the Company and Renee Bailey.

	9.
	Confidentiality
Agreement dated October 28, 2003 between GendeLLindheim BioCom Partners, LLC and the Company.

	10.
	Nondisclosure
Agreement dated July 29, 2003 between the Company and Mohan Philip, Ph.D.

	11.
	Confidential
Disclosure Agreement dated May 29, 2003 between VaxInnate Corporation and the Company.

	12.
	Employee
Services Agreement dated March 1, 2003 between the Company and Message Pharmaceuticals, Inc.

	13.
	Consulting
Services Agreement dated December 30, 2003 between the Company and Tony Giordano, Ph.D.

	14.
	Director's
Agreement dated December 30, 2003 between the Company and Tony Giordano, Ph.D.

	15.
	Consulting
Services Agreement dated October 16, 2003 between the Company and Tony Giordano, Ph.D.

	16.
	Consultancy
and Confidentiality Agreement dated January 15, 2003 between Tony Giordano, Ph.D. and the Company.

	17.
	Consultancy
and Confidentiality Agreement dated April 7, 2002 between Donald O'Rourke, M.D. and the Company.

	18.
	Consultancy
and Confidentiality Agreement dated January 1, 2003 between Albert Wong, M.D. and the Company.

	19.
	Consultancy
and Confidentiality Agreement dated May 24, 2004 between Jennifer Bergheiser, MBA and the Company. 

3

 
	20.
	Consultancy
and Confidentiality Agreement dated October 1, 2003 between Donald O'Rourke, M.D. and the Company.

	21.
	Consulting
and Confidentiality Agreement dated July 1, 2004 between the Company and Andrew K. Godwin.

	22.
	Consulting
Services Agreement dated December 30, 2003 between the Company and Nelson BioPartnering LLC.

	23.
	Consulting
Services Agreement dated October 3, 2003 between the Company and Nelson BioPartnering LLC.

	24.
	Consultancy
and Confidentiality Agreement dated July 6, 2004 between the Company and John Sampson, M.D., Ph.D.

	25.
	Consulting
and Confidentiality Agreement dated October 15, 2004 between Sangheeta Singh and the Company

	26.
	Consulting
and Confidentiality Agreement dated January 1, 2003 between Sangheeta Singh and the Company.

	27.
	Employee
Non-Disclosure, Invention Assignment and Non-Compete Agreement dated June 2, 2003 between the Company and Yi-Shun Lin.

	28.
	Employee
Non-Disclosure, Invention Assignment and Non-Compete Agreement dated June 1, 2003 between the Company and Ron Gervais.

	29.
	Employee
Non-Disclosure, Invention Assignment and Non-Compete Agreement between the Company and Bryan Hoffman.

	30.
	Employee
Non-Disclosure, Invention Assignment and Non-Compete Agreement dated August 18, 2003 between the Company and Mike Woods. 

4

 

	State of	)	 	 	 	 
	 	)	 	ss.:	 	 
	County of	)	 	 	 	 

        On this    day of                        ,
2005, before me,                        , personally appeared Dr. Albert J. Wong, Interim President of Alteris
Therapeutics, Inc., personally known to me (or proved to me on the basis of satisfactory evidence) to be the person whose name is subscribed to the within instrument and acknowledged to me that
he executed the same in his authorized capacity and that by his signature on the instrument the person, or the entity upon behalf of which the person acted, executed the instrument. 

Witness
my hand and official seal. 

________________

Notary Public 

	State of	)	 	 	 	 
	 	)	 	ss.:	 	 
	County of	)	 	 	 	 

        On this    day of                        ,
2005, before me,                        , personally appeared Dr. Michael W. Fanger, President of Celldex
Therapeutics, Inc., personally known to me (or proved to me on the basis of satisfactory evidence) to be the person whose name is subscribed to the within instrument and acknowledged to me that
he executed the same in his authorized capacity and that by his signature on the instrument the person, or the entity upon behalf of which the person acted, executed the instrument. 

Witness
my hand and official seal. 

________________

Notary Public 

5

 
 

APPENDIX C    
    

 
 

Trademark Assignment Agreement    
    

        TRADEMARK ASSIGNMENT AGREEMENT effective as of 12:01 a.m. (Easter Standard Time) the            day
of                        , 2005, by Alteris
Therapeutics, Inc., a Delaware corporation, with its principal place of business at 416 South 10th Street, Philadelphia, PA 19147 ("Assignor"), to Celldex
Therapeutics, Inc., a Delaware corporation, with its principal place of business at 519 Route 173 West, Bloomsbury, NY 08804 ("Assignee"). 

RECITAL  

        Assignee and Assignor are parties to an Asset Purchase Agreement dated as of January    , 2005 (the "Purchase Agreement"), pursuant to which Assignor
has agreed to transfer to Assignee and Assignee has agreed to acquire from Assignor the Acquired Assets (as defined in the Purchase Agreement), including without limitation the Trademarks (as defined
in the Purchase Agreement) of Assignor. Pursuant to the Purchase Agreement, Assignor has agreed to execute such instruments as the Assignee may reasonably request in order to more effectively assign,
transfer, grant, convey, assure and confirm to Assignee and its successors and assigns, or to aid and assist in the collection of or reducing to possession by the Assignee of, all of such assets. 

        In
accordance therewith, Assignor desires to transfer and assign to Assignee, and Assignee desires to accept the transfer and assignment of, all of Assignor's worldwide right, title and
interest in, to and under Assignor's registered and unregistered Trademarks, including without limitation the Trademarks listed on Schedule A annexed hereto and incorporated herein by
reference. 

AGREEMENT  

        1.     Capitalized Terms. Capitalized terms used but not defined herein shall have the meanings for such terms that are set forth in
the Purchase
Agreement. 

        2.     Transfer and Assignment of Trademarks. Assignor, as partial consideration for the payment by the Assignee of the
consideration set forth in the Purchase Agreement, the receipt of which is hereby acknowledged, does hereby transfer and assign to Assignee, and Assignee hereby accepts the transfer and assignment of,
all of Assignor's worldwide right, title and interest in, to and under the Trademarks, together with the goodwill of the business associated therewith and which is symbolized thereby, all rights to
sue for infringement of any Trademark, whether arising prior to or subsequent to the date of this Trademark Assignment Agreement, and any and all renewals and extensions thereof that may hereafter be
secured under the laws now or hereafter in effect in the United States, Canada and in any other jurisdiction, the same to be held and enjoyed by the said Assignee, its successors and assigns from and
after the date hereof as fully and entirely as the same would have been held and enjoyed by the said Assignor had this Trademark Assignment Agreement not been made. 

        3.     Terms of the Purchase Agreement. The terms of the Purchase Agreement, including but not limited to Assignor's
representations, warranties, covenants, agreements and indemnities relating to the Trademarks, are incorporated herein by this reference. Assignor acknowledges and agrees that the representations,
warranties, covenants, agreements and indemnities contained in the Purchase Agreement shall not be superseded hereby but shall remain in full force and effect to the full extent provided therein. In
the event of any conflict or inconsistency between the terms of the Purchase Agreement and the terms hereof, the terms of the Purchase Agreement shall govern. 

 

        4.     Power of Attorney. Assignor hereby constitutes and appoints the Assignee, its successors and assigns, the true and lawful
attorneys of Assignor, with full power of substitution in the name, place and stead of Assignor or otherwise, but on behalf and for the benefit of the Assignee, its successors and assigns, to enforce
the Trademarks, and from time to time to institute and prosecute, in the name of Assignor or otherwise, any and all proceedings at law, in equity or otherwise, which the Assignee, its successors and
assigns, may deem proper in order to assert or enforce any claim or right arising out of the Trademarks; and to defend and compromise any and all actions, suits or proceedings in respect of the
Trademarks and to do any and all acts and things in relation to the Trademarks that the Assignee, its successors and assigns, shall deem advisable, Assignor hereby declaring that the foregoing powers
are coupled with an interest and are and shall be irrevocable and perpetual and shall not be terminated by any act of Assignor, its dissolution or operation of law, or in any other manner or for any
reason whatsoever. Notwithstanding the foregoing, prior to exercising any rights under this Section 4, Assignee shall first notify Assignor of such intent and shall use commercially reasonable
efforts to provide Assignor with the opportunity to act under Section 5 hereof. 

        5.     Further Actions. Assignor, for itself and its successors and assigns, hereby covenants and agrees that, at any time and
from time to time after delivery of this instrument, at the Assignee's request but without further consideration, Assignor will do, execute, acknowledge or deliver, or will cause to be done, execute,
acknowledged or delivered, all such further acknowledgments, deeds, conveyances, transfers, instruments of assignment and other actions as may be reasonably requested by Assignee for the conveying,
assigning, transferring, confirming or vesting in the Assignee, any of the Trademarks. Assignee, for itself and its successors and assigns, hereby covenants and agrees that, within thirty
(30) days after the delivery of this instrument, Assignee will make all necessary filings with the United States Patent and Trademark Office and other appropriate Governmental Authorities (as
defined in the Purchase Agreement) to effectuate the assignment of the Trademarks to Assignee. 

        6.     Successors and Assigns. This instrument is executed by, and shall be binding upon, Assignor and the Assignee, and their
respective successors and assigns, for the uses and purposes above set forth and referred to and shall inure to the benefit of Assignor and the Assignee and their respective successors and assigns. 

        7.     Governing Law. Except to the extent that federal law preempts state law with respect to the matters covered hereby, this
Trademark Assignment Agreement shall be governed by and construed in accordance with the laws of the State of Delaware without giving effect to the principles of conflicts of laws thereof. 

2

 

        IN
WITNESS WHEREOF, Assignor has caused its duly authorized officer to execute this Trademark Assignment Agreement as of the date first above written. 

	 	 	 	 	 
	ASSIGNOR:	 	 
	 	 	 	 	 
	ALTERIS THERAPEUTICS, INC.	 	 
	 	 	 	 	 
	 	 	 	 	 
	By:	 	
 Name: Dr. Albert J. Wong

Title: Interim President	 	 
	 	 	 	 	 
	ASSIGNEE:	 	 
	 	 	 	 	 
	CELLDEX THERAPEUTICS, INC.	 	 
	 	 	 	 	 
	 	 	 	 	 
	By:	 	
 Name: Dr. Michael W. Fanger

Title: President	 	 

3

 

	State of	)	 	 	 	 
	 	)	 	ss.:	 	 
	County of	)	 	 	 	 

        On this    day of                        ,
2005, before me,                        , personally appeared Dr. Albert J. Wong, Interim President of Alteris
Therapeutics, Inc., personally known to me (or proved to me on the basis of satisfactory evidence) to be the person whose name is subscribed to the within instrument and acknowledged to me that
he executed the same in his authorized capacity and that by his signature on the instrument the person, or the entity upon behalf of which the person acted, executed the instrument. 

Witness
my hand and official seal. 

________________

Notary Public 

	State of	)	 	 	 	 
	 	)	 	ss.:	 	 
	County of	)	 	 	 	 

        On this    day of                        ,
2005, before me,                        , personally appeared Dr. Michael W. Fanger, President of Celldex
Therapeutics, Inc., personally known to me (or proved to me on the basis of satisfactory evidence) to be the person whose name is subscribed to the within instrument and acknowledged to me that
he executed the same in his authorized capacity and that by his signature on the instrument the person, or the entity upon behalf of which the person acted, executed the instrument. 

Witness
my hand and official seal. 

________________

Notary Public 

4

 
SCHEDULE
A 

	 	 	 	 	 
	Registered Servicemarks and Trademarks
	 	 	 	 	 
	Servicemark or Trademark	 	U.S. or Canadian Registration No.	 	Registration Date
	 	 	 	 	 
	
	 	
	 	

	 	 	 	 	 
	Unregistered Servicemarks and Trademarks
	 	 	 	 	 
	

	 	 	 	 	 
	Pending Servicemark or Trademark Applications
	 	 	 	 	 
	

	 	 	 	 	 
	Servicemark or Trademark	 	Application No.	 	Application Date
	 	 	 	 	 
	
	 	
	 	

	 	 	 	 	 
	Trade Names
	 	 	 	 	 
	

	 	 	 	 	 
	URLs or Internet Domain Names
	 	 	 	 	 
	

	 	 	 	 	 
	Pending URL or Internet Domain Name Applications
	 	 	 	 	 
	

	 	 	 	 	 
	General Intangibles
	 	 	 	 	 
	

5

 
 

APPENDIX D    
    

 
 

Assignment of Intangible Assets    
    

        This ASSIGNMENT effective as of 12:01 a.m. (Eastern Standard Time) on the            day
of                        , 2005, by Alteris
Therapeutics, Inc., a Delaware corporation, with its principal place of business at 416 South 10th Street, Philadelphia, PA 19147 ("Assignor"), to Celldex
Therapeutics, Inc., a Delaware corporation, with its principal place of business at 519 Route 173 West, Bloomsbury, NY 08804 ("Assignee"). 

RECITAL  

        Assignee and Assignor are parties to an Asset Purchase Agreement dated as of January    , 2005 (the "Purchase Agreement"), pursuant to which Assignor
has agreed to transfer to Assignee and Assignee has agreed to acquire from Assignor the Acquired Assets (as defined in the Purchase Agreement), including without limitation the Intangible Assets (as
defined in the Purchase Agreement) of Assignor. Pursuant to the Purchase Agreement, Assignor has agreed to execute such instruments as the Assignee may reasonably request in order to more effectively
assign, transfer, grant, convey, assure and confirm to Assignee and its successors and assigns, or to aid and assist in the collection of or reducing to possession by the Assignee of, all of such
assets. 

        In
accordance therewith, Assignor desires to transfer and assign to Assignee, all of Assignor's worldwide right, title and interest in, to and under the Intangible Assets. 

AGREEMENT  

        1.     Capitalized Terms. Capitalized terms used but not defined herein shall have the meanings for such terms that are set forth in
the Purchase
Agreement. 

        2.     Transfer and Assignment of Intangible Assets. Assignor, as partial consideration for the payment by the Assignee of the
consideration set forth in the Purchase Agreement, the receipt of which is hereby acknowledged, does hereby transfer and assign to Assignee, all of Assignor's worldwide right, title and interest in,
to and under the Intangible Assets, together with the goodwill of the business associated therewith and which is symbolized thereby, all rights to sue for infringement of any property rights of the
Assignor in, to and under said Intangible Assets, whether arising prior to or subsequent to the date of this Assignment of Intangible Assets, and any and all renewals and extensions thereof that may
hereafter be secured under the laws now or hereafter in effect in the United States, Canada and in any other jurisdiction, the same to be held and enjoyed by the said Assignee, its successors and
assigns from and after the date hereof as fully and entirely as the same would have been held and enjoyed by the said Assignor had this Assignment of Intangible Assets not been made. 

        3.     Terms of the Purchase Agreement. The terms of the Purchase Agreement, including but not limited to Assignor's
representations, warranties, covenants, agreements and indemnities relating to the Intangible Assets, are incorporated herein by this reference. Assignor acknowledges and agrees that the
representations, warranties, covenants, agreements and indemnities contained in the Purchase Agreement shall not be superseded hereby but shall remain in full force and effect to the full extent
provided therein. In the event of any conflict or inconsistency between the terms of the Purchase Agreement and the terms hereof, the terms of the Purchase Agreement shall govern. 

 

        4.     Power of Attorney. Assignor hereby constitutes and appoints the Assignee, its successors and assigns, the true and lawful
attorneys of Assignor, with full power of substitution in the name, place and stead of Assignor or otherwise, but on behalf and for the benefit of the Assignee, its successors and assigns, to
institute, prosecute, compromise, defend and settle any and all Proceedings at law, in equity or otherwise that the Assignee and its successors, legal representatives or assigns may deem proper in
order to collect, assert or enforce any claim, right or title of any kind, including the right to sue for past infringement of any property rights of the Assignor in, to and under said Intangible
Assets, and to do all such acts and things in relation thereto as the Assignee and its successors, legal representatives or assigns shall deem desirable. Assignor hereby declaring that the foregoing
powers are coupled with an interest and are and shall be irrevocable and perpetual and shall not be terminated by any act of Assignor, its dissolution or operation of law, or in any other manner or
for any reason whatsoever. Notwithstanding the foregoing, prior to exercising any rights under this Section 4, Assignee shall first notify Assignor of such intent and shall use commercially
reasonable efforts to provide Assignor with the opportunity to act under Section 5 hereof. 

        5.     Further Actions. Assignor, for itself and its successors and assigns, hereby covenants and agrees that, at any time and
from time to time after delivery of this instrument, at the Assignee's request but without further consideration, Assignor will do, execute, acknowledge or deliver, or will cause to be done, execute,
acknowledged or delivered, all such further acknowledgments, deeds, conveyances, transfers, instruments of assignment and other actions as may be reasonable and necessary for the conveying, assigning,
transferring, confirming or vesting in the Assignee, any of the Intangible Assets. 

        6.     Successors and Assigns. This instrument is executed by, and shall be binding upon, Assignor and the Assignee, and their
respective successors and assigns, for the uses and purposes above set forth and referred to and shall inure to the benefit of Assignor and the Assignee and their respective successors and assigns. 

        7.     Governing Law. Except to the extent that federal law preempts state law with respect to the matters covered hereby, this
Trademark Assignment Agreement shall be governed by and construed in accordance with the laws of the State of Delaware without giving effect to the principles of conflicts of laws thereof. 

2

 

        IN
WITNESS WHEREOF, Assignor has caused its duly authorized officer to execute this Assignment of Intangible Assets as of the date first above written. 

	 	 	 	 	 
	ASSIGNOR:	 	 
	 	 	 	 	 
	ALTERIS THERAPEUTICS, INC.	 	 
	 	 	 	 	 
	 	 	 	 	 
	By:	 	
 Name: Dr. Albert J. Wong

Title: Interim President	 	 
	 	 	 	 	 
	ASSIGNEE:	 	 
	 	 	 	 	 
	CELLDEX THERAPEUTICS, INC.	 	 
	 	 	 	 	 
	 	 	 	 	 
	By:	 	
 Name: Dr. Michael W. Fanger

Title: President	 	 

3

 

	State of	)	 	 	 	 
	 	)	 	ss.:	 	 
	County of	)	 	 	 	 

        On this    day of                        ,
2005, before me,                        , personally appeared Dr. Albert J. Wong, Interim President of Alteris
Therapeutics, Inc., personally known to me (or proved to me on the basis of satisfactory evidence) to be the person whose name is subscribed to the within instrument and acknowledged to me that
he executed the same in his authorized capacity and that by his signature on the instrument the person, or the entity upon behalf of which the person acted, executed the instrument. 

Witness
my hand and official seal. 

________________

Notary Public 

	State of	)	 	 	 	 
	 	)	 	ss.:	 	 
	County of	)	 	 	 	 

        On this    day of                        ,
2005, before me,                        , personally appeared Dr. Michael W. Fanger, President of Celldex
Therapeutics, Inc., personally known to me (or proved to me on the basis of satisfactory evidence) to be the person whose name is subscribed to the within instrument and acknowledged to me that
he executed the same in his authorized capacity and that by his signature on the instrument the person, or the entity upon behalf of which the person acted, executed the instrument. 

Witness
my hand and official seal. 

________________

Notary Public 

4

 
 

APPENDIX E    
    

[Duane
Morris Letterhead] 

DRAFT 1/31/05

                        ,
2005 

Celldex
Therapeutics, Inc.

519 Route 173 West

Bloomsbury, NJ 08804 

	Re:
	Asset Purchase Agreement dated as of January     , 2005 by and between

Celldex Therapeutics, Inc. and Alteris Therapeutics, Inc.

Ladies
and Gentlemen: 

        We
have acted as counsel to Alteris Therapeutics, Inc., a Delaware corporation ("Transferor"), in connection with the proposed acquisition by Celldex Therapeutics, Inc., a
Delaware corporation ("Acquirer"), of substantially all of the assets and certain of the liabilities of Transferor pursuant to the Asset Purchase Agreement (the "Purchase Agreement") dated as of
January    , 2005, between Transferor and Acquirer. This opinion is being rendered at the request of Acquirer pursuant to Section 4.2(vii) of the Purchase Agreement.
Capitalized terms used but not defined herein are used with the same meanings as set forth in the Purchase Agreement. 

        For
purposes of rendering this opinion, we have examined originals or executed copies of: 

        (i)    the
Purchase Agreement; 

        (ii)   the
Bill of Sale; 

        (iii)  the
Assignment and Assumption Agreement; 

        (iv)  the
Assignment of Intangible Assets; 

        (v)   the
Trademark Assignment Agreement (the documents listed in items (i) through (v) being the "Transaction Agreements"); 

        (vi)  the
Certificate of Incorporation of Transferor, as amended, as made available to us by an officer of Transferor (the "Certificate of Incorporation"); 

        (vii) the
Bylaws of Transferor, as amended, as made available to us by an officer of Transferor (the "Bylaws"); 

        (viii) the
Transferor Closing Certificate; 

        (ix)  a
certificate of good standing of Transferor issued by the Secretary of State of the State of Delaware on                        ,
2005; 

        (x)   a
certificate of good standing of Transferor issued by the Department of State of the Commonwealth of Pennsylvania
on                        , 2005; and 

        (xi)  a
certificate of an officer of Transferor, attesting to, among other things, (a) resolutions of the Board of Directors of Transferor approving the Purchase
Agreement and other documents delivered pursuant thereto and the transactions contemplated thereby, and (b) resolutions of the stockholders of Transferor approving the Purchase Agreement and
the transactions contemplated thereby. 

        We
have also examined minutes of the corporate proceedings of the Board of Directors and stockholders of Transferor, as made available to us by an officer of Transferor, and such other
certificates of public officials and such other documents, instruments and matters as we have deemed necessary or appropriate for purposes of this opinion. 

 

        In
our examinations, we have assumed the legal capacity of natural persons, the genuineness of signatures on, and the authenticity of, all documents so examined, the conformity to
originals of all documents submitted to us as copies, and that all records and other information made available to us by Transferor, and on which we have relied, are complete in all respects. As to
the accuracy of matters of fact, we have relied solely upon the above-mentioned certificates and documents and upon the representations contained in the Transaction Agreements and other documents
delivered pursuant thereto, have not performed or had performed any independent search of public records, and have assumed that certificates of public officials dated prior to the date hereof remain
accurate as of the date hereof. We have also assumed that Transferor's corporate minute book contains a complete and accurate record of all of the proceedings of Transferor's Board of Directors
(including any committees thereof) and stockholders. 

        We
have also assumed that each of the Transaction Agreements has been duly executed and delivered by the parties thereto other than Transferor, that each such other party has the
requisite power and authority and has taken all necessary corporate or other action to duly authorize, execute, and deliver the Transaction Agreements to which it is a party and to consummate the
transactions contemplated therein, and that each of the Transaction Agreements constitutes the legal, valid, and binding obligations of each such other party, enforceable against each such other party
in accordance with its terms. 

        On
the basis of the foregoing and subject to the exceptions and qualifications contained herein, we are of the opinion that: 

        (i)    Transferor
is a corporation duly incorporated, validly existing and in good standing under the laws of the State of Delaware, has all requisite corporate power and
authority to carry on its business as it is now being conducted, and is qualified to do business and is in good standing in the Commonwealth of Pennsylvania. 

        (ii)   Transferor
has the requisite corporate power and authority to execute and deliver, and perform its obligations under, the Transaction Agreements and to transfer the
Acquired Assets to Acquirer in the manner contemplated by the Purchase Agreement. The Transaction Agreements and all the transactions contemplated thereby to be performed by Transferor have been duly
authorized by all necessary corporate action on the part of Transferor. 

        (iii)  The
execution and delivery by Transferor of the Transaction Agreements and the consummation by Transferor of the transactions contemplated thereby will not result in a
breach, violation or default under, or give rise to an event that, either with or without notice or the passage of time, or both, would result in a breach or violation of the terms or provisions of
(a) the Certificate of Incorporation or Bylaws, (b) the Assigned Contracts or Excluded Contracts set forth in the Transferor Disclosure Schedule, (c) any judgment, decree or Order
of any Governmental Authority or any law of the State of Delaware or the Commonwealth of Pennsylvania or any federal law of the United States of America that, to our knowledge, is binding on
Transferor or to which any of the Acquired Assets is subject. 

        (iv)  The
execution and delivery by Transferor of the Transaction Agreements and the consummation by Transferor of the transactions contemplated thereby, will not, to our
knowledge, require (a) the consent, approval or authorization of, or declaration, filing or registration with, any Governmental Authority under the laws of the State of Delaware or the
Commonwealth of Pennsylvania, or the federal laws of the United States of America or (b) any consent, approval or notice under any Assigned Contract or Excluded Contract set forth in the
Transferor Disclosure Schedule, except as otherwise set forth in the Transferor Disclosure Schedule. 

2

 

        (v)   Each
of the Transaction Agreements has been duly executed and delivered by Transferor and is a valid and binding agreement of Transferor, enforceable against Transferor
in accordance with its terms except as the foregoing may be limited by (a) applicable bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance or transfer, and other laws
affecting the enforceability of creditors' rights generally and (b) general equitable principles, whether applied by a court of law or in an equity proceeding. 

        (vi)  To
our knowledge, except as set forth in the Transferor Disclosure Schedule, there are no civil, criminal, administrative or other actions, suits or proceedings pending
or threatened against Transferor that can reasonably be expected to result in a Material Adverse Effect. 

        The
foregoing opinions are subject to the following qualifications: 

        (a)   In
rendering the opinion set forth in paragraph (v) above, we express no opinion with respect to: 

        (i)    any
provision of the Transaction Agreements insofar as it provides for the payment or reimbursement of costs and expenses or indemnification for claims, losses or
liabilities in excess of a reasonable amount determined by a court or other tribunal; 

        (ii)   the
ability of any party to collect attorneys' fees and costs in an action involving any of the Transaction Agreements if such party is not the prevailing party in such
action or to the extent such fees and costs are greater than such fees and costs as may be determined to be reasonable by a court or other tribunal; 

        (iii)  the
ability of any person to obtain specific performance, injunctive relief, rescission, or any similar remedy in any proceeding; and 

        (iv)  any
provision of any of the Transaction Agreements relating to choice of law or conflict of laws. 

        (b)   We
have assumed that each of the parties to the Transaction Agreements will seek to enforce its rights thereunder in good faith. 

        (c)   The
opinions expressed herein relate solely to the laws of the State of Delaware, the Commonwealth of Pennsylvania and the federal laws of the United States of America,
and no opinion is expressed with respect to the laws of any other jurisdiction, whether applicable directly or through the foregoing laws. 

        (d)   Our
opinions expressed herein are limited to the matters expressly stated herein, and no opinion is implied or may be inferred beyond the matters expressly stated. 

        (e)   Our
opinions expressed herein are rendered as of the date hereof and are based on existing law that is subject to change. Where our opinions expressed herein refer to
events to occur at a future date, we have assumed that there will have been no changes in the law or facts between the date hereof and such future date. We do not undertake to advise you of any
changes in the opinions expressed herein from matters that may hereafter arise or be brought to our attention or to revise or supplement such opinions should the present laws of any jurisdiction be
changed by legislative action, judicial decision, or otherwise. 

        (f)    When
reference is made in this opinion to our "knowledge," such reference means the actual knowledge attributable to our representation of Transferor of only those
attorneys who have given substantive attention to the transactions contemplated by the Transaction Agreements; and, where a statement or opinion is made "to our knowledge," such qualification means
that we have no knowledge (as so defined) that the statement or opinion is not true or correct. 

        This
opinion is being furnished to Acquiror solely in connection with the transactions referred to herein, and is solely for the benefit of Acquiror and is not to be quoted in whole or
in part or otherwise referred to (except in a list of closing documents), nor is it to be filed with any governmental agency or other person, without our prior written consent, or otherwise used or
relied upon by any other person or entity or for any other purpose. 

Sincerely,
                                         
                                       
 

3

 
 

APPENDIX F    
    

 
 

CONSULTING AGREEMENT    
    

        This Agreement is made as of                        , 2005 (the
"Agreement") between Celldex Therapeutics, Inc. (the "Company") and Dr. Albert J. Wong (the
"Consultant"), currently Interim President of Alteris Therapeutics, Inc. ("Alteris") and Professor in the Kimmel Cancer Institute at Thomas Jefferson University (the "Institution"). The Company
is engaged in the research, development and commercialization of therapeutic vaccines and antibodies for the treatment of glioblastoma and other cancers (the "Field"). The Consultant has extensive
experience in the Field, and the Company seeks to benefit from the Consultant's expertise by retaining the Consultant as a consultant. The Consultant wishes to perform consulting services in the Field
for the Company. Accordingly, the Company and the Consultant agree as follows: 

	1.
	Services.

        (a)   The
Consultant shall provide consulting services to the Company with respect to matters related to the Field. The Consultant shall be engaged by the Company as a
consultant for the services specified herein only and shall not direct or conduct research for or on behalf of the Company. The Consultant's services shall include: (i) providing scientific
advice regarding the Company's product lines, the general direction of its research program, recruitment of personnel, and techniques used in research in the Field; and (ii) generally advising
the Company in its efforts to produce, develop, and market products in the Field. 

        (b)   Upon
reasonable request by the Company, and at times mutually agreed upon by the Company and the Consultant, the Consultant shall devote up to fifty (50) days per
year and up to eight (8) hours each such day (including travel time) to providing consulting services to the Company pursuant to this Agreement. 

        (c)   The
Company acknowledges that the Consultant is an employee of the Institution and is subject to the Institution's policies, including policies concerning consulting,
conflicts of interest, and intellectual property. For the purposes of this Agreement, the parties acknowledge and agree that the term "Institution" shall be deemed to include Thomas Jefferson
University or any institutional research facility that enters into a sponsored research or similar agreement (the "SRA") with the Company to provide for the funding of the research, development and
advancement of the Rapid Identification of Alternative Splicing system, or related technology for the rapid identification of alternative spliced proteins, or splice variants (collectively the "SRA
Technology"), in the laboratory of Dr. Wong. 

	2.
	Compensation. 

        (a)   As
full consideration for the consulting services provided by the Consultant as described in paragraph 1(a) (i) and (ii) above, the Company shall
pay the following amounts to the Consultant: 

	i.
	a
one time signing bonus of $10,000, to be paid upon the execution and delivery of this Agreement:

	ii.
	$20,000
per year payable in equal quarterly installments on the last Business Day of March, June, September and December of each year during the term of this Agreement; and

	iii.
	the
amount of $2,000 per day for each day the Consultant is requested by the Company to provide consulting services under this Agreement in excess of ten days per year, such amounts
to be paid within 15 days of the submission to the Company of an invoice therefore by the Consultant. 

        (b)   In
addition to the foregoing amounts, the Company shall promptly reimburse the Consultant for all reasonable expenses incurred by the Consultant in providing consulting
services under this Agreement; provided that all such expenses are itemized and submitted with receipts. 

 

	3.
	Competition. 

        (a)   The
Consultant represents to the Company that the Consultant does not currently have any agreement to provide consulting services to any other party, firm, or company in
the biotechnology and pharmaceutical industries on matters relating to the Field. During the term of this Agreement, the Consultant shall not consult for any entity in the biotechnology or
pharmaceutical industry other than the Company on matters relating to (i) the research, development and commercialization of therapeutic vaccines and antibodies that target epidermal growth
factor receptor variant III, or EGFRvIII, for the treatment of brain, prostate, gastric, non-small cell lung and ovarian cancers, and (ii) any other technology covered by the SRA
Technology. 

        (b)   The
Company acknowledges and agrees, however, that nothing in this Agreement shall affect the Consultant's obligations to, or research on behalf of, the Institution,
including, without limitation, obligations or research of the Consultant in connection with a transfer by the Institution of materials or intellectual property developed in whole or in part by the
Consultant, or in connection with research collaborations. 

	4.
	Confidentiality. 

        (a)   The
Consultant may disclose to the Company any information that the Consultant would normally freely disclose to other members of the scientific community at large,
whether by publication, by presentation at seminars, or in informal scientific discussions. However, the Consultant shall not disclose to the Company information that is proprietary to the Institution
and is not generally available to the public other than through formal technology transfer procedures. 

        (b)   In
providing consulting services to the Company pursuant to this Agreement, the Consultant may acquire information that pertains to the Company's inventions, products,
processes, patents, patent applications, methods, formulae, equipment, programs, developments, or plans and that is both (i) disclosed or made known by the Company to the Consultant and
(ii) identified as "proprietary" by the Company at any time ("Proprietary Information"). The Consultant agrees not to disclose any Proprietary Information to anyone or to use any Proprietary
Information for any purpose other than performance of consulting services pursuant to this Agreement, without the prior written consent of the Company. 

        (c)   Proprietary
Information subject to paragraph 4(b) does not include information that: (i) is or later becomes available to the public through no breach of
this Agreement by the Consultant; (ii) is obtained by the Consultant from a third party who had the legal right to disclose the information to the Consultant; (iii) is already in the
possession of the Consultant on the date this Agreement becomes effective; or (iv) is required to be disclosed by law, government regulation, or court order, provided that prior to any such
disclosure pursuant to this clause (iv), reasonable notice and assistance in minimizing the disclosure to the Company are given to the extent reasonably practicable. In addition, Proprietary
Information subject to paragraph 4(b) does not include information generated by the Consultant, alone or with others, unless the information is generated solely as a direct result of the
performance of consulting services under this Agreement. 

	5.
	Return of Materials. 

        The
Consultant agrees to promptly return, following the termination of this Agreement or upon earlier request by the Company, all drawings, tracings, and written materials in the
Consultant's possession and (i) supplied by the Company in conjunction with the Consultant's consulting services under this Agreement, or (ii) generated by the Consultant in the
performance of consulting services under this Agreement. 

2

 
	6.
	Intellectual Property. 

        (a)   Subject
to the terms of paragraph 6(b) below, the Consultant hereby assigns to the Company any right, title, and interest he may have in any invention, discovery,
improvement, apparatus, implement, process, compound, composition or formula or other intellectual property, whether or not publishable, patentable or copyrightable, which the Consultant, alone or
with others, develops solely as a direct result of performing consulting services for the Company under this Agreement. Any intellectual property assignable to the Company pursuant to the preceding
sentence is hereinafter referred to as "Company Intellectual Property". Upon the request of the Company, the Consultant shall execute such further assignments, documents, and other instruments as may
be reasonably necessary to assign Company Intellectual Property to the Company and to provide reasonable assistance the Company in applying for, obtaining and enforcing patents or other rights in the
United States and in any foreign country with respect to any Company Intellectual Property. The Company will bear the cost of preparation of all patent or other applications and assignments, and the
cost of obtaining and enforcing all patents and other rights to Company Intellectual Property and shall reimburse the Consultant for any expenses incurred by him in connection with providing the
assistance required by this paragraph 6(a). 

        (b)   The
Company shall have no rights by reason of this Agreement in any publication, invention, discovery, improvement, or other intellectual property whatsoever, whether or
not publishable, patentable, or copyrightable, which is developed as a result of a program of research financed, in whole or in part, by funds provided by or under the control of the Institution. The
Company also acknowledges and agrees that it will enjoy no priority or advantage as a result of the consultancy created by this Agreement in gaining access, whether by license or otherwise, to any
proprietary information or intellectual property that arises from any research undertaken by the Consultant in his capacity as an employee of the Institution. 

	7.
	Term and Termination. 

        (a)   Unless
terminated earlier under paragraph 7(b), below, the initial term of this Agreement shall expire on the second anniversary of the date hereof (the "Initial
Term"). This Agreement shall be automatically renewed for additional twelve-month terms on an annual basis unless it is terminated earlier under paragraph 7(b), below (such additional terms
together the "Additional Term"). 

        (b)   Without
limiting any rights which either party to this Agreement may have by reason of any default by the other party (i) during the Initial Term, this Agreement
may be terminated (A) by the Company, if the Consultant fails to perform his material obligations hereunder and such non-performance is not cured within 30 days following the
date notice of such non-performance has been delivered by the Company to the Consultant, or (B) by the Consultant, if the Company shall fail to make any payments, when due, of the
amounts set forth in Section 2 above within 30 days following the date notice of such failure has been delivered by the Consultant to the Company; and (ii) during any Additional
Term this Agreement may be terminated by either party by written notice given to the other party. Such termination shall be effective upon the date not earlier than 30 days following the date
of such notice as shall be specified in said notice. 

        (c)   Termination
of this Agreement shall not affect (i) the Company's obligations to recognize the Institution's intellectual property rights under
paragraph 6(b) above, (ii) the Company's obligation to pay for services previously performed by the Consultant or expenses for which the Consultant is entitled to reimbursement under
paragraph 2 above, through the date of termination of this Agreement under the terms of paragraph 7(b) above, or (iii) the Consultant's continuing obligations to the Company under
paragraphs 4(b), 5 and 6(a) above. 

3

 

	8.
	Miscellaneous. 

        (a)   This
Agreement shall inure to the benefit of and be biding upon the respective heirs, executors, successors, representatives, and assigns of the parties, as the case may
be; provided, however, the obligations of the Consultant hereunder are personal and may not be assigned without the express written consent of the Company. The Company may assign its rights and
obligations under this Agreement to any entity controlling, controlled by or under common control with the Company, provided, however, that the Company shall continue to be liable to the Consultant
for its obligations hereunder. 

        (b)   The
relationship created by this Agreement shall be that of independent contractor, and the Consultant shall have no authority to bind or act as agent for the Company or
its employees for any purpose. 

        The
parties acknowledge that this Agreement is not a contract of employment and the Consultant is not an employee of the Company for any purpose. 

        (c)   The
Company will not use the Consultant's name in any commercial advertisement or similar material that is used to promote or sell products, unless the Company obtains
in advance the written consent of the Consultant to such use. 

        (d)   Notice
given by one party to the other hereunder shall be in writing and deemed to have been properly given if deposited with the United States Postal Service,
registered or certified mail, with postage prepaid, or sent by telex, telegram or telecopy, and a confirmation of transmission is obtained, addressed as follows: 

Celldex
Therapeutics, Inc.

519 Route 173 West

Bloomsbury, New Jersey 08809

Attn: Dr. Michael W. Fanger—President

Tel. No.: 908-475-2700

Fax No.: 908-713-6002 

Dr. Albert
J. Wong

________________

________________

________________

Tel. No.:

Fax No.: 

        (e)   This
Agreement supersedes all previous agreements and discussions relating to the subject matters hereof and constitutes the entire agreement between the Company and the
Consultant with respect to the subject matters of the Agreement. This Agreement may not be modified in any respect by any verbal statement, representation, or agreement made by any party or any
employee, officer, or other representative of any party, or by any written documents unless it is signed by an officer of the Company and by the Consultant. 

        (f)    If
any provision of this Agreement affecting the rights or property of the Institution is adjudicated to be invalid, unenforceable, contrary to, or prohibited under
applicable laws or regulations of any jurisdiction, then such provision of this Agreement shall terminate as of the date such adjudication is effective and the remaining provisions shall continue in
full force and effect. If any other provision of this Agreement is adjudicated to be invalid, unenforceable, contrary to, or prohibited under applicable laws or regulations of any jurisdiction, such
provision shall be severed and the remaining provisions shall continue in full force and effect. 

4

 

        (g)   The
Consultant and the Company acknowledge that (i) the Consultant is entering into this Agreement in his individual capacity and not as an employee or agent of
the Institution, and (ii) the Institution is not a party to his Agreement and has no liability or obligation hereunder. 

        (h)   This
Agreement shall be governed by the laws of the State of Delaware, without regard to conflicts of law provisions. 

        IN WITNESS WHEREOF, the parties have executed this Agreement effective the date first stated above. 

	 	 	CELLDEX THERAPEUTICS, INC.
	

 	
 	

By:	

    

	 	 	Name:	Dr. Michael W. Fanger
	 	 	Title:	President
	    	 	 	 
	

 	
 	

    
 Dr. Albert J. Wong

5

 
 

APPENDIX G    
    

 
 

CONSULTING AGREEMENT    
    

        This Agreement is made as of                        , 2005 (the
"Agreement") between Celldex Therapeutics, Inc. (the "Company") and Dr. Donald M. O'Rourke
(the "Consultant"), Associate Professor, Department of Neurosurgery, and Director of the Brain Tumor Tissue Bank at The University of Pennsylvania School of Medicine (the "University"). The Company is
engaged in the research, development and commercialization of therapeutic vaccines and antibodies for the treatment of glioblastoma and other cancers (the "Field"). The Consultant has extensive
experience in the Field, and the Company seeks to benefit from the Consultant's expertise by retaining the Consultant as a consultant. The Consultant wishes to perform consulting services in the Field
for the Company. Accordingly, the Company and the Consultant agree as follows: 

	1.
	Services.

        (a)   The
Consultant shall provide consulting services to the Company with respect to matters related to the Field. The Consultant shall be engaged by the Company as a
consultant for the services specified herein only and shall not direct or conduct research for or on behalf of the Company. The Consultant's services shall include: (i) providing scientific
advice regarding the Company's product lines, the general direction of its research program, recruitment of personnel, and techniques used in research in the Field; and (ii) generally advising
the Company in its efforts to produce, develop, and market products in the Field. 

        (b)   Upon
reasonable request by the Company, and at times mutually agreed upon by the Company and the Consultant, the Consultant shall devote up to twenty-five
(25) days per year and up to eight (8) hours each such day (inclusive of travel time) to providing consulting services to the Company pursuant to this Agreement. 

        (c)   The
Company acknowledges that the Consultant is an employee of the University and is subject to the University's policies, including policies concerning consulting,
conflicts of interest, and intellectual property. 

	2.
	Compensation. 

        (a)   As
full consideration for the consulting services provided by the Consultant as described in paragraph 1(a) (i) and (ii) above, the Company shall
pay the following amounts to the Consultant: 

	i.
	a
one-time signing bonus of $10,000, to be paid upon the execution and delivery of this Agreement:

	ii.
	$20,000
per year payable in equal quarterly installments of $5,000 on the last Business Day of March, June, September and December of each year during the term of this Agreement; and

	iii.
	the
amount of $2,000 per day for each day the Consultant is requested by the Company to provide consulting services under this Agreement in excess of ten days per year, such amounts
to be paid within 15 days of the submission to the Company of an invoice therefor by the Consultant. 

        (b)   In
addition to the foregoing amounts, the Company shall promptly reimburse the Consultant for all reasonable expenses incurred by the Consultant in providing consulting
services under this Agreement; provided that all such expenses are itemized and submitted with receipts. 

	3.
	Competition.

        (a)   The
Consultant represents to the Company that the Consultant does not have any written agreement to provide consulting services to any other party, firm, or company in
the biotechnology and pharmaceutical industries on matters relating to the Field. During the term of this Agreement, the Consultant shall not consult for any entity in the biotechnology or
pharmaceutical industry other than 

 

the
Company on matters relating to the research, development and commercialization of therapeutic vaccines and antibodies that target epidermal growth factor receptor variant III, or EGFRvIII, for the
treatment of glioblastoma and other brain cancers. 

        (b)   The
Company acknowledges and agrees, however, that nothing in this Agreement shall affect the Consultant's obligations to, or research on behalf of, the University,
including, without limitation, obligations or research of the Consultant in connection with a transfer by the University of materials or intellectual property developed in whole or in part by the
Consultant, or in connection with research collaborations. 

	4.
	Confidentiality. 

        (a)   The
Consultant may disclose to the Company any information that the Consultant would normally freely disclose to other members of the scientific community at large,
whether by publication, by presentation at seminars, or in informal scientific discussions. However, the Consultant shall not disclose to the Company information that is proprietary to the University
and is not generally available to the public other than through formal technology transfer procedures. 

        (b)   In
providing consulting services to the Company pursuant to this Agreement, the Consultant may acquire information that pertains to the Company's inventions, products,
processes, patents, patent applications, methods, formulae, equipment, programs, developments, or plans and that is both (i) disclosed or made known by the Company to the Consultant and
(ii) identified as "proprietary" by the Company at any time ("Proprietary Information"). The Consultant agrees not to disclose any Proprietary Information to anyone or to use any Proprietary
Information for any purpose other than performance of consulting services pursuant to this Agreement, without the prior written consent of the Company. 

        (c)   Proprietary
Information subject to paragraph 4(b) does not include information that: (i) is or later becomes available to the public through no breach of
this Agreement by the Consultant; (ii) is obtained by the Consultant from a third party who had the legal right to disclose the information to the Consultant; (iii) is already in the
possession of the Consultant on the date this Agreement becomes effective; or (iv) is required to be disclosed by law, government regulation, or court order, provided that prior to any such
disclosure pursuant to clause (iv), reasonable notice and assistance in minimizing the disclosure to the Company are given, to the extent reasonably practicable. In addition, Proprietary
Information subject to paragraph 4(b) does not include information generated by the Consultant, alone or with others, unless the information is generated solely as a direct result of the
performance of consulting services under this Agreement. 

	5.
	Return of Materials. 

        The
Consultant agrees to promptly return, following the termination of this Agreement or upon earlier request by the Company, all drawings, tracings, and written materials in the
Consultant's possession and (i) supplied by the Company in conjunction with the Consultant's consulting services under this Agreement, or (ii) generated by the Consultant in the
performance of consulting services under this Agreement. 

	6.
	Intellectual Property. 

        (a)   Subject
to the terms of paragraph 6(b) below, the Consultant hereby assigns to the Company any right, title, and interest he may have in any invention, discovery,
improvement, apparatus, implement, process, compound, composition or formula or other intellectual property, whether or not publishable, patentable or copyrightable, which the Consultant, alone or
with others, develops solely as a direct result of performing consulting services for the Company under this Agreement. Any intellectual property assignable to the Company pursuant to the preceding
sentence is hereinafter referred to as "Company Intellectual Property". Upon the request of the Company, the Consultant 

2

 

shall
execute such further assignments, documents, and other instruments as may be reasonably necessary to assign Company Intellectual Property to the Company and to provide reasonable assistance the
Company in applying for, obtaining and enforcing patents or other rights in the United States and in any foreign country with respect to any Company Intellectual Property. The Company will bear the
cost of preparation of all patent or other applications and assignments, and the cost of obtaining and enforcing all patents and other rights to Company Intellectual Property, and shall reimburse the
Consultant for any expenses incurred by him in connection with providing the assistance required by this Section. 

        (b)   The
Company shall have no rights by reason of this Agreement in any publication, invention, discovery, improvement, or other intellectual property whatsoever, whether or
not publishable, patentable, or copyrightable, which is developed as a result of a program of research financed, in whole or in part, by funds provided by or under the control of the University. The
Company also acknowledges and agrees that it will enjoy no priority or advantage as a result of the consultancy created by this Agreement in gaining access, whether by license or otherwise, to any
proprietary information or intellectual property that arises from any research undertaken by the Consultant in his capacity as an employee of the University. 

	7.
	Term and Termination. 

        (a)   Unless
terminated earlier under paragraph 7(b), below, the initial term of this Agreement shall expire on the second anniversary of the date hereof (the "Initial
Term"). This Agreement shall be automatically renewed for additional twelve-month terms on an annual basis unless it is terminated earlier under paragraph 7(b), below (such additional terms
together, the "Additional Term"). 

        (b)   Without
limiting any rights which either party to this Agreement may have by reason of any default by the other party (i) during the Initial Term, this Agreement
may be terminated (A) by the Company, if the Consultant fails to perform his material obligations hereunder and such non-performance is not cured within 30 days following the
date notice of such non-performance has been delivered by the Company to the Consultant, or (B) by the Consultant, if the Company shall fail to make any payments, when due, of the
amounts set forth in Section 2 above within 30 days following the date notice of such failure has been delivered by the Consultant to the Company; and (ii) during any Additional
Term this Agreement may be terminated by either party by written notice given to the other party. Such termination shall be effective upon the date not earlier than 30 days following the date
of such notice as shall be specified in said notice. 

        (c)   Termination
of this Agreement shall not affect (i) the Company's obligations to recognize the University's intellectual property rights under
paragraph 6(b) above, (ii) the Company's obligation to pay for services previously performed by the Consultant or expenses for which the Consultant is entitled to reimbursement under
paragraph 2 above through the date of termination of this Agreement under paragraph 7(b) above, or (iii) the Consultant's continuing obligations to the Company under paragraphs
4(b), 5 and 6(a) above. 

	8.
	Miscellaneous. 

        (a)   This
Agreement shall inure to the benefit of and be biding upon the respective heirs, executors, successors, representatives, and assigns of the parties, as the case may
be; provided, however, the obligations of the Consultant hereunder are personal and may not be assigned without the express written consent of the Company. The Company may assign its rights and
obligations under this Agreement to any entity controlling, controlled by or under common control with the Company, provided, however, that the Company shall continue to be liable to the Consultant
for its obligations hereunder. 

3

 

        (b)   The
relationship created by this Agreement shall be that of independent contractor, and the Consultant shall have no authority to bind or act as agent for the Company or
its employees for any purpose. 

        The
parties acknowledge that this Agreement is not a contract of employment and the Consultant is not an employee of the Company for any purpose. 

        (c)   The
Company will not use the Consultant's name in any commercial advertisement or similar material that is used to promote or sell products, unless the Company obtains
in advance the written consent of the Consultant to such use. 

        (d)   Notice
given by one party to the other hereunder shall be in writing and deemed to have been properly given if deposited with the United States Postal Service,
registered or certified mail, with postage prepaid, or sent by telex, telegram or telecopy, and a confirmation of transmission is obtained, addressed as follows: 

Celldex
Therapeutics, Inc.

519 Route 173 West

Bloomsbury, New Jersey 08809

Attn: Dr. Michael W. Fanger—President

Tel. No.: 908-475-2700

Fax No.: 908-713-6002 

Donald
M. O'Rourke, M.D.

Associate Professor

Department of Neurosurgery

Silverstein 3

The Hospital of the University of Pennsylvania

3400 Spruce Street

Philadelphia, Pennsylvania 19104

Tel. No.: 215-662-3490

Fax No.: 215-349-5534 

        (e)   This
Agreement supersedes all previous agreements and discussions relating to the subject matters hereof and constitutes the entire agreement between the Company and the
Consultant with respect to the subject matters of the Agreement. This Agreement may not be modified in any respect by any verbal statement, representation, or agreement made by any party or any
employee, officer, or other representative of any party, or by any written documents unless it is signed by an officer of the Company and by the Consultant. 

        (f)    If
any provision of this Agreement affecting the rights or property of the University is adjudicated to be invalid, unenforceable, contrary to, or prohibited under
applicable laws or regulations of any jurisdiction, then such provision of this Agreement shall terminate as of the date such adjudication is effective and the remaining provisions shall continue in
full force and effect. If any other provision of this Agreement is adjudicated to be invalid, unenforceable, contrary to, or prohibited under applicable laws or regulations of any jurisdiction, such
provision shall be severed and the remaining provisions shall continue in full force and effect. 

        (g)   The
Consultant and the Company acknowledge that (i) the Consultant is entering into this Agreement in his individual capacity and not as an employee or agent of
the University, and (ii) the University is not a party to his Agreement and has no liability or obligation hereunder. 

        (h)   This
Agreement shall be governed by the laws of the State of Delaware, without regard to conflicts of law provisions. 

4

 

        IN WITNESS WHEREOF, the parties have executed this Agreement effective the date first stated above. 

	 	 	CELLDEX THERAPEUTICS, INC.
	

 	
 	

By:	

    

	 	 	Name:	Dr. Michael W. Fanger
	 	 	Title:	President
	    	 	 	 
	

 	
 	

    
 Dr. Donald M. O'Rourke

5

 
 

APPENDIX H    
    

            ,
2005 

Alteris
Therapeutics, Inc.

416 South 10th Street

Philadelphia, PA 19147 

	Re:
	Celldex Therapeutics, Inc.

Gentlemen:

        We
have acted as counsel to Celldex Therapeutics, Inc., a Delaware corporation (the "Company"), in connection with the Asset Purchase Agreement dated as
of                        , 2005
(the "Purchase Agreement") between Alteris Therapeutics, Inc., a Delaware corporation ("ATI"), and the Company, pursuant to which the Company shall acquire substantially all of the assets and
assume certain liabilities of ATI. As such counsel, you have requested our opinion as to the matters described herein. All capitalized terms used herein but not defined herein shall have the
respective meanings ascribed thereto in the Purchase Agreement. 

        For
purposes of rendering this opinion, we have examined originals or executed copies of: 

        (i)    the
Purchase Agreement; 

        (ii)   the
Bill of Sale; 

        (iii)  the
Assignment of Intangible Assets; 

        (iv)  the
Trademark Assignment Agreement; 

        (v)   the
Assignment and Assumption Agreement (the documents listed in items (i) and (v) being the "Transaction Agreements"); 

        (vi)  the
Certificate of Incorporation of the Company, as amended, as made available to us by an officer of the Company (the "Certificate of Incorporation"); 

        (vii) the
Bylaws of the Company, as amended, as made available to us by an officer of the Company (the "Bylaws"); 

        (viii) the
Acquirer Closing Certificate; 

        (ix)  a
certificate of good standing of the Company issued by the Secretary of State of the State of Delaware on                        ,
2005; 

        (x)   a
certificate of an officer of the Company, attesting to, among other things, resolutions of the Board of Directors of the Company approving the Purchase Agreement and
other documents delivered pursuant thereto and the transactions contemplated thereby; and 

        (xi)  an
executed copy of the Company's Registration Statement on Form S-4 (No. 333-            ), as amended through the date hereof
(the "Registration Statement") filed by the Company with the Securities and Exchange Commission (the "SEC") on            , 2005 pursuant to the Securities Act of 1933, as amended (the
"Act"),
relating to the issuance of shares (the "Shares") of the Company's common stock, par value $0.01 per share, by the Company to ATI as partial consideration for the Acquired Assets, and all schedules
and exhibits thereto in the form filed with the SEC. 

        We
have also examined minutes of the corporate proceedings of the Board of Directors of the Company, as made available to us by an officer of the Company, and such other certificates of
public
officials and of officers and employees of the Company and such other documents, instruments and matters as we have deemed necessary or appropriate for purposes of this opinion. 

        In
our examinations, we have assumed the legal capacity of natural persons, the genuineness of signatures on, and the authenticity of, all documents so examined, the authority of all
signatories to 

 

sign
on behalf of their principals, the conformity to originals of all documents submitted to us as certified or photostatic copies, and that all records and other information made available to us by
the Company, and on which we have relied, are complete in all respects. As to the accuracy of matters of fact, we have relied solely upon the above-mentioned certificates and documents and upon the
representations contained in the Transaction Agreements and other documents delivered pursuant thereto, have not performed or had performed any independent search of public records, and have assumed
that certificates of public officials dated prior to the date hereof remain accurate as of the date hereof. We have also assumed that the Company's corporate minute book contains a complete and
accurate record of all of the proceedings of the Company's Board of Directors (including any committees thereof). 

        We
have also assumed that each of the Transaction Agreements has been duly executed and delivered by the parties thereto other than the Company, that each such other party has the
requisite power and authority and has taken all necessary corporate or other action to duly authorize, execute, and deliver the Transaction Agreements to which it is a party and to consummate the
transactions contemplated therein, and that each of the Transaction Agreements constitutes the legal, valid, and binding obligations of each such other party, enforceable against each such other party
in accordance with its terms. 

        Based
upon the foregoing, and upon such investigation and considerations of law as we have deemed necessary for purposes of rendering the opinion expressed herein, we are of the opinion
that: 

        (i)    The
Company is a corporation duly incorporated, validly existing and in good standing under the laws of the State of Delaware, has all requisite corporate power and
authority to carry on its business as now being conducted, and is qualified to do business and is in good standing in all jurisdictions in which the conduct of its business requires such
qualification. 

        (ii)   The
Company has the requisite power and authority to execute, deliver and perform its obligations under the Transaction Agreements and to issue the Shares to ATI as
contemplated by the Purchase
Agreement. The Transaction Agreements and all the transactions contemplated thereby on the Company's part to be performed have been duly and validly authorized by all necessary corporate action of the
Company. 

        (iii)  The
execution and delivery by the Company of the Transaction Agreements and the consummation by the Company of the transactions contemplated thereby will not result in
a breach, violation or default under, or give rise to an event that, either with or without notice or the passage of time, or both, would result in a breach or violation of the terms or provisions of
(a) the Certificate of Incorporation or Bylaws, (b) any agreement to which the Company is a party that is described in the Acquirer SEC Documents or (c) any judgment, decree or
Order of any Governmental Authority or any law of the State of Delaware or any federal law of the United States of America that, to our knowledge, is binding on the Company. 

        (iv)  The
execution and delivery by the Company of the Transaction Agreements and the consummation by the Company of the transactions contemplated thereby, will not, to our
knowledge, require (a) the consent, approval or authorization of, or declaration, filing or registration with, any Governmental Authority under the laws of the State of Delaware or the federal
laws of the United States of America or (b) any consent, approval or notice under any agreement to which the Company is a party that is described in the Acquirer SEC Documents, except as
otherwise set forth in the Acquirer SEC Documents. 

        (v)   Each
of the Transaction Agreements has been duly executed and delivered by the Company and is a valid and binding agreement of the Company, enforceable against the
Company in accordance with its terms except as the foregoing may be limited by (a) applicable bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance or transfer, and other
laws affecting 

2

 

the
enforceability of creditors' rights generally and (b) general equitable principles, whether applied by a court of law or in an equity proceeding. 

        (vi)  To
our knowledge, except as set forth the Acquirer SEC Documents, there are no civil, criminal, administrative or other actions, suits, or Proceedings pending or
threatened against the Company that can reasonably be expected to have a material adverse effect upon the Company. 

        (vii) The
Shares to be issued in accordance with Section 3.1(a) of the Purchase Agreement have been duly authorized, reserved, and, upon issuance in accordance with
the terms of the Purchase Agreement, will be (a) validly issued, fully paid and nonassessable, (b) duly and validly registered in accordance with all applicable Federal securities laws
of the United States of America and (c) duly and properly listed for trading on The Nasdaq Stock Market. 

        We
have been informed by the Staff of the SEC that the Registration Statement was declared effective on                        , 2005,
 and, to the best of our knowledge, no stop order suspending
the effectiveness of the Registration Statement or any part thereof has been issued and no proceedings for that purpose have been instituted or are pending or are contemplated under the Act.. 

        The
foregoing opinions are subject to the following qualifications: 

        (a)   In
rendering the opinion set forth in paragraph (v) above, we express no opinion with respect to: 

        (i)    any
provision of the Transaction Agreements insofar as it provides for the payment or reimbursement of costs and expenses or indemnification for claims, losses or
liabilities in excess of a reasonable amount determined by a court or other tribunal; 

        (ii)   the
ability of any party to collect attorneys' fees and costs in an action involving any of the Transaction Agreements if such party is not the prevailing party in such
action or to the extent such fees and costs are greater than such fees and costs as may be determined to be reasonable by a court or other tribunal; 

        (iii)  the
ability of any person to obtain specific performance, injunctive relief, rescission, or any similar remedy in any proceeding; and 

        (iv)  any
provision of any of the Transaction Agreements relating to choice of law or conflict of laws. 

        (b)   We
have assumed that each of the parties to the Transaction Agreements will seek to enforce its rights thereunder in good faith. 

        (c)   Our
opinions expressed herein are limited to the matters expressly stated herein, and no opinion is implied or may be inferred beyond the matters expressly stated. 

        (d)   We
are qualified to practice law only in New York and we express no opinion as to the laws of jurisdictions other than the federal laws of the United States of America,
the laws of the State of New York, and, to the extent applicable, the General Corporation Law of the State of Delaware ("DGCL"). Furthermore, our knowledge with respect to the DGCL is
derived solely from a reading of that statute as currently in effect without consideration or review of any judicial or other interpretations thereof. We note, however, that the Transaction Agreements
purport to be governed by the laws of the State of Delaware. Accordingly, solely for purposes of our opinions set forth herein, we have assumed, with your consent, that the substantive laws of the
State of Delaware are substantially the same as those of the State of New York in all relevant respects. 

        (e)   Our
opinions expressed herein are rendered as of the date hereof and are based on existing law that is subject to change. Where our opinions expressed herein refer to
events to occur at a future date, we have assumed that there will have been no changes in the law or facts between the date 

3

 

hereof
and such future date. We do not undertake to advise you of any changes in the opinions expressed herein from matters that may hereafter arise or be brought to our attention or to revise or
supplement such opinions should the present laws of any jurisdiction be changed by legislative action, judicial decision, or otherwise, even though such change may alter the scope or substance of the
opinions herein expressed or affect the legal or factual statements or assumptions herein. 

        (f)    When
reference is made in this opinion to our "knowledge," such reference means the actual knowledge attributable to our representation of the Company of only those
attorneys who have given substantive attention to the transactions contemplated by the Transaction Agreements; and, where a statement or opinion is made "to our knowledge," such qualification means
that we have no knowledge (as so defined) that the statement or opinion is not true or correct. 

        This
opinion is being furnished to ATI solely in connection with the transactions referred to herein, and is solely for the benefit of ATI and is not to be quoted in whole or in part or
otherwise referred to (except in a list of closing documents), nor is it to be filed with any governmental agency or other person, without our prior written consent, or otherwise used or relied upon
by any other person or entity or for any other purpose. 

	 	 	Very truly yours,

4

 
 

APPENDIX I    
    

 
 

TERM SHEET FOR SPONSORED RESEARCH AGREEMENT    
    

        The following terms and conditions shall be incorporated into the SRA. All capitalized terms used herein shall have the meanings ascribed to them in the Asset
Purchase Agreement to which this Appendix I is attached. 

	1.
	Purpose. The purpose of the SRA is to provide funding for the research, development and advancement of the RIAS technology, or related
technology for the rapid identification of alternative splice forms (collectively, the "SRA Technology"), in the laboratories of Dr. Albert J. Wong ("Dr. Wong") to be located at a
University or other institutional research facility to be specified by Dr. Wong (the "Institution"), which such Institution shall be subject to the approval of the Acquirer, which such approval
shall not be unreasonably withheld.

	2.
	Term. The initial term of the SRA shall be for a period of five (5) years from the date of its execution.

	3.
	Funding. Acquirer shall agree to provide funding in an annual amount of $150,000 (for an aggregate of $750,000 for the initial term) to
be applied exclusively towards Direct Costs incurred in the laboratories of Dr. Albert J. Wong in connection with the advancement of the SRA Technology and the development of novel targets
using the SRA Technology. The annual funding will be contingent upon meeting mutually agreed upon milestones. Acquirer shall also agree to fund all overhead costs incurred by the Institution under the
SRA, pursuant to such terms as may be agreed upon by Acquirer and the Institution.

	4.
	Accounting of Expenses; Progress Reports. In connection with the funding to be provided by Acquirer under Section 3 above,
Acquirer shall be provided with an accounting of all such Direct Costs on a monthly basis and shall receive progress reports, on a quarterly basis, on the status of the research and development
related to the advancement of the SRA Technology.

	5.
	Additional Agreements. The funding of the SRA will be in accordance with the prevailing policies governing sponsored research of the
Institution (contingent on the establishment of a reasonably satisfactory relationship between the Acquirer and the Institution) where the work is to be performed, particularly with regard to the
ownership of intellectual property rights and terms for licensing of any inventions, materials, intellectual property and know-how resulting from work conducted under the SRA. In the event
that a reasonably satisfactory relationship between Acquirer and the Institution is not established as set forth above, Acquirer shall negotiate in good faith with Dr. Wong regarding a
substitute arrangement to provide funding for the research, development and advancement of the SRA Technology. In addition, in the event that, in the reasonable opinion of Acquirer's patent counsel,
the SRA Technology is deemed to infringe the patent or other proprietary rights of a third party or third parties, Acquirer's obligations under the SRA, including but not limited to, its obligation to
provide funding under Section 3 above, shall be suspended immediately and the SRA shall terminate by its terms upon the expiration of [90] days from such date, which
such period shall be subject to extension upon mutual agreement of the parties. Notwithstanding the foregoing, if, within such [90] day period, or any extension thereof,
Dr. Wong provides evidence to Acquirer, including any evidence relating to the modification of the SRA Technology, that, in the reasonable opinion of Acquirer's patent counsel, indicates that
the SRA Technology does not infringe the patent and/or other proprietary rights of any third party, then the Acquirer's obligations under the SRA including, without limitation, its obligation to
provide the funding for the SRA Technology set forth in Section 3 above, shall be immediately reinstated and the SRA shall remain in full force and effect. The parties acknowledge that any such
suspension of Acquirer's obligations under the SRA and any subsequent termination of the SRA, will be subject to the notice and dispute resolution provisions to be set forth in the SRA. 

 
 

APPENDIX J    
    

 
 

ALTERIS THERAPEUTICS, INC
  (A Development Stage Company)    
    
    BALANCE SHEETS ET
  (in actual dollars)    
    

	 
	 	September 30,

2004
	 
	Current Assets:	 	 	 	 
	Cash and cash equivalents	 	$	4,278	 
	Other current assets	 	$	6,688	 
	 	 	
	 
	 	Total current assets	 	$	10,966	 
	

Property and equipment:	
 	
$	

9,000	
 
	Machinery and equipment	 	$	(1,425	)
	 	 	
	 
	Less: accumulated depreciation and amoritzation	 	$	7,575	 
	

Total Assets	
 	
$	

18,541	
 
	 	 	
	 
	LIABILITIES AND STOCKHOLDER'S EQUITY	 	 	 	 
	Current liabilities:	 	 	 	 
	Accounts payable	 	$	4,140	 
	Accrued interest payable	 	$	64,740	 
	Accrued liabilities	 	$	34,630	 
	 	 	
	 
	 	Total current liabilities	 	$	103,510	 
	

Commitments and Contingencies	
 	
 	

 	
 
	 	Notes Payable: Ben Franklin Technology Partner	 	$	500,000	 
	 	Notes Payable: BioAdvance	 	$	313,000	 
	

Stockholder's equity:	
 	
 	

 	
 
	Common Stock	 	$	104	 
	Additional paid in capital at September 30, 2004	 	$	14,163	 
	Accumulated Deficit	 	$	(532,035	)
	Net Income	 	$	(380,200	)
	 	 	
	 
	Total Equity	 	$	(897,969	)
	Total Liabilities and Stockholders' Equity	 	$	18,541	 
	 	 	
	 

 
 

APPENDIX K    
    

 
 

Form of Transferor Affiliate Letter    

   

   

Gentlemen:

        The
undersigned, a holder of shares of common stock, par value $.0001 per share, of Alteris Therapeutics, Inc., a Delaware corporation (the "Company"), may be entitled to receive
securities (the "Securities") of Celldex Therapeutics, Inc. ("Celldex"), a Delaware corporation, in connection with the sale of substantially all of the assets of the Company to Celldex (the
"Acquisition") and the subsequent voluntary dissolution and complete liquidation of the Company (the "Dissolution"). The undersigned acknowledges that the undersigned may be deemed an "affiliate" of
the Company within the meaning of Rule 145 ("Rule 145") and Rule 144 promulgated under the Securities Act of 1933, as amended (the "Act"), although nothing contained herein should
be construed as an admission of such fact. 

        If,
in fact, the undersigned is an affiliate under the Act, the undersigned's ability to sell, assign or transfer any Securities received by the undersigned in connection with the
Acquisition and the Dissolution may be restricted unless such transaction is registered under the Act or an exemption from such registration is available. The undersigned understands that such
exemptions are limited and the undersigned has obtained advice of counsel as to the nature and conditions of such exemptions, including information with respect to the applicability to the sale of
such Securities of Rules 144 and 145(d) promulgated under the Act. 

        The
undersigned hereby represents to and covenants with Celldex that the undersigned will not sell, assign or otherwise transfer any of the Securities that the undersigned receives in
connection with the Acquisition except (i) pursuant to an effective registration statement under the Act, (ii) in conformity with the volume and other limitations of Rule 145 or
(ii) in a transaction which, in the opinion of counsel reasonably satisfactory to Celldex or as described in a "no-action" or interpretive letter from the Staff of the Securities
and Exchange Commission (the "SEC"), is not required to be registered under the Act. 

        In
the event of a sale or other disposition by the undersigned of Securities pursuant to Rule 145, the undersigned will supply Celldex with evidence of compliance with such Rule,
in the form of a letter in the form of Annex I hereto. The undersigned understands that Celldex may instruct its transfer agent to withhold the transfer of any Securities disposed of by the
undersigned, but that upon receipt of such evidence of compliance the transfer agent shall effectuate the transfer of Securities sold as indicated in the letter. 

        The
undersigned acknowledges and agrees that appropriate legends will be placed on certificates representing Securities received by the undersigned in connection with the Acquisition and
Dissolution or held by a transferee thereof, which legends will be removed by delivery of substitute certificates upon receipt of an opinion from counsel in form and substance reasonably satisfactory
to Celldex to the effect that such legends are no longer required for purposes of the Act. 

        The
undersigned acknowledges that (i) the undersigned has carefully read this letter and understands the requirements hereof and the limitations imposed upon the distribution,
sale, transfer or other disposition of Securities and (ii) the receipt by Celldex of this letter is an inducement to Celldex's obligations to consummate the Acquisition. 

Very
truly yours, 

 
 
 

ANNEX I
  TO APPENDIX K    
    

	[Name]	 	 	 	[Date]

        On                        the
undersigned sold the securities ("Securities") of Celldex Therapeutics, Inc., a Delaware corporation (the "Company"), described below in the space provided
for that purpose (the "Securities"). The Securities were received by the undersigned in connection with the acquisition of substantially all of the assets of Alteris Therapeutics, Inc.
("Alteris"), by the Company and the subsequent voluntary dissolution and complete liquidation of Alteris. 

        Based
upon the most recent report or statement filed by the Company with the Securities and Exchange Commission, the Securities sold by the undersigned were within the prescribed
limitations set forth in paragraph (e) of Rule 144 promulgated under the Securities Act of 1933, as amended (the "Act"). 

        The
undersigned hereby represents that the Securities were sold in "brokers' transactions" within the meaning of Section 4(4) of the Act or in transactions directly with a "market
maker" as that term is defined in Section 3(a) (38) of the Securities Exchange Act of 1934, as amended. The undersigned further represents that the undersigned has not solicited or
arranged for the solicitation of orders to buy the Securities, and that the undersigned has not made any payment in connection with the offer or sale of the Securities to any person other than to the
broker who executed the order in respect of such sale. 

Very
truly yours, 

   

[Space
to be provided for description of securities] 

2

QuickLinks

TABLE OF CONTENTS

ASSET PURCHASE AGREEMENT

ARTICLE I DEFINITIONS

ARTICLE II ACQUISITION AND TRANSFER OF ACQUIRED ASSETS; ASSUMPTION OF LIABILITIES

ARTICLE III ACQUISITION PRICE; PAYMENT OF ACQUISITION PRICE

ARTICLE IV CLOSING

ARTICLE V RESERVED

ARTICLE VI REPRESENTATIONS OF THE TRANSFEROR

ARTICLE VII REPRESENTATIONS OF THE ACQUIRER

ARTICLE VIII ADDITIONAL AGREEMENTS

ARTICLE IX CONDITIONS TO THE OBLIGATIONS OF THE ACQUIRER

ARTICLE X CONDITIONS TO THE OBLIGATIONS OF THE TRANSFEROR

ARTICLE XI TERMINATION

ARTICLE XII MISCELLANEOUS

APPENDIX A

Bill of Sale

APPENDIX B

ASSIGNMENT AND ASSUMPTION AGREEMENT

SCHEDULE I Assumed Contracts

APPENDIX C

Trademark Assignment Agreement

APPENDIX D

Assignment of Intangible Assets

APPENDIX E

APPENDIX F

CONSULTING AGREEMENT

APPENDIX G

CONSULTING AGREEMENT

APPENDIX H

APPENDIX I

TERM SHEET FOR SPONSORED RESEARCH AGREEMENT

APPENDIX J

ALTERIS THERAPEUTICS, INC (A Development Stage Company) BALANCE SHEETS ET (in actual dollars)

APPENDIX K

Form of Transferor Affiliate Letter

ANNEX I TO APPENDIX K

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