Document:

Exhibit 10.2

 

VOTING SUPPORT AGREEMENT

 

THIS VOTING SUPPORT AGREEMENT (the “Agreement”), dated as of October 5,
2009, is made and entered into by and among NeuLion, Inc., a corporation
existing under the federal laws of Canada (“Purchaser”), Hugh Dobbie, Jr.,
a Canadian citizen residing at 2562 136th Street, Surrey, British Columbia (“Dobbie”),
and Dowco Computer Systems Ltd., a corporation existing under the laws of the
Province of British Columbia (“Dowco” and, together with Dobbie, sometimes
herein collectively referred to as the “Shareholders”).

 

WHEREAS, Purchaser, Interactive Netcasting Systems Inc. (the “Company”) and Dobbie
have entered into an Acquisition Agreement, dated as of the date hereof (the “Acquisition
Agreement”), pursuant to which Purchaser has agreed to acquire by way of a plan
of arrangement all of the outstanding shares of the Company (the “Arrangement”);

 

WHEREAS, Dowco beneficially holds 1,600,000 shares of capital stock of the
Company (the “Dowco Shares”) and Dobbie beneficially holds 9,500,000 shares of
capital stock of the Company;

 

WHEREAS, Dobbie has or is intending to grant to John Casey and John Rea options
to acquire up to 375,000 of Dobbie’s shares of the Company (the “Dobbie Options”);
the 9,500,000 shares in the capital stock of the Company held by Dobbie less
those transferred on exercise of the Dobbie Options are hereinafter called the “Dobbie
Shares” and together with the Dowco Shares the “Subject Shares”;

 

WHEREAS, as a condition to the willingness of Purchaser to enter into the
Acquisition Agreement and incur the obligations set forth therein, Purchaser
has required that the Shareholders agree, and the Shareholders have agreed, to
enter into this Agreement.

 

NOW, THEREFORE, in consideration of the foregoing and the mutual covenants and
agreements herein contained, and intending to be legally bound hereby, the
parties hereto agree as follows:

 

Section 1. 
Representations, Warranties and Covenants of the Shareholders.

 

(a)           Dowco represents and warrants to
Purchaser and the Company that Dowco is the sole record and beneficial owner of
the Dowco Shares.  Dowco does not own, of
record or beneficially, any shares or beneficial interest of the Company other
than the Dowco Shares.  Dowco has the
sole right to vote, or to dispose of, the Dowco Shares, and none of the Dowco
Shares is subject to any agreement, arrangement or restriction with respect to
the voting of the Dowco Shares, except as contemplated by this Agreement or the
Acquisition Agreement.  There are no
agreements or arrangements of any kind, contingent or otherwise, obligating
Dowco to sell, transfer, assign, grant a participation interest in, option,
pledge, hypothecate or otherwise dispose or encumber any of the Dowco Shares
(other than as contemplated by the Acquisition Agreement).  No Person has any contractual or other right
or obligation to purchase or otherwise acquire any of the Dowco Shares.

 

(b)           Dobbie represents and warrants to
Purchaser and the Company that he is the sole record and beneficial owner of
the Dobbie Shares.  Dobbie does not own,
of record or beneficially, any shares or beneficial interest of the Company
other than the Dobbie Shares.  Dobbie has
the sole right to vote, or to dispose of, the Dobbie Shares, and none of the
Dobbie Shares is subject to any 

 

 

agreement,
arrangement or restriction with respect to the voting of the Dobbie Shares,
except as contemplated by this Agreement or the Acquisition Agreement.  There are no agreements or arrangements of
any kind, contingent or otherwise, obligating Dobbie to sell, transfer, assign,
grant a participation interest in, option, pledge, hypothecate or otherwise
dispose or encumber any of the Dobbie Shares other than pursuant to the Dobbie
Options (other than as contemplated by the Acquisition Agreement).  No Person has any contractual or other right
or obligation to purchase or otherwise acquire any of the Dobbie Shares other
than pursuant to the Dobbie Options.

 

Section 2. 
Agreement to Vote in Favor and Against. 
Until the termination of this Agreement in accordance with Section 3,
the Shareholders agree, for the benefit of Purchaser and the Company, as
follows:

 

(a)          Agreement
to Vote in Favor.  At any meeting of shareholders of the Company
called to vote upon the Acquisition Agreement and the Arrangement, or at any
adjournment or postponement thereof or in any other circumstances upon which a
vote, consent or other approval (including by written resolution in lieu of a
meeting) with respect to the Acquisition Agreement and the Arrangement is
sought, each of the Shareholders shall irrevocably cause its Subject Shares to
be counted as present for purposes of establishing quorum and shall vote (or
cause to be voted) its Subject Shares (i) in favor of the approval of the
Acquisition Agreement and the Arrangement and each of the transactions
contemplated thereby, and (ii) in favor of any other matter necessary for
the consummation of the Arrangement.

 

(b)          Agreement
to Vote Against.  At any meeting of shareholders of the Company
or at any adjournment or postponement thereof or in any other circumstances
upon which a vote, consent or other approval of all or some of the shareholders
of the Company is sought (including by written consent in lieu of a meeting),
each of the Shareholders shall irrevocably cause its Subject Shares to be
counted as present for purposes of establishing quorum and shall vote (or cause
to be voted) its Subject Shares against (i) any acquisition agreement or
acquisition (other than the Acquisition Agreement and the Arrangement),
consolidation, combination, sale or transfer of a material amount of assets,
amalgamation, plan of arrangement, reorganization, recapitalization,
dissolution, liquidation or winding up of or by the Company, (ii) any
amendment of Company’s articles or bylaws or other proposal or transaction
involving the Company’s or any of its subsidiaries, which amendment or other
proposal or transaction would in any manner delay, impede, frustrate, prevent
or nullify the Acquisition Agreement or the Arrangement or any of the other transactions
contemplated by the Acquisition Agreement and the Arrangement or change in any
manner the voting rights of the Subject Shares, and (iii) any action,
agreement, transaction or proposal that would result in a breach of any
representation, warranty, covenant, agreement or other obligation of the
Company in the Acquisition Agreement.

 

Section 3. 
Termination.  This Agreement shall terminate upon the
earlier of (i) December 31, 2009 and (ii) the termination of the
Acquisition Agreement in accordance with the terms thereof.  No party hereto shall be relieved from any
liability for breach of this Agreement by reason of any such termination.

 

Section 4. 
Shareholder Capacity.  Each of the Shareholders has
executed this Agreement solely in such Shareholder’s capacity as a shareholder
of the Company.  Without limiting the
foregoing, nothing in this Agreement shall limit or affect any actions taken by
either Shareholder, or any representative of either Shareholder, in his or her
capacity as an officer, director, member, employee or manager of the Company.

 

2

 

Section 5. 
Specific Performance.  Each of the Shareholders
acknowledges and agrees that (i) the covenants, obligations and agreements
of such Shareholder contained in this Agreement relate to special, unique and
extraordinary matters, and (ii) a violation of any of the terms of such
covenants, obligations or agreements will cause the Purchaser irreparable
injury for which adequate remedies are not available at law.  Therefore, each of the Shareholders agrees
that the Purchaser shall be entitled to enforce such covenants and agreements
by specific performance, injunctive relief or by any other means available at
law or in equity (without the requirement to post bond) as a court of competent
jurisdiction may deem necessary or appropriate to restrain such Shareholder
from committing any violation of such covenants, obligations or
agreements.  These injunctive remedies are
cumulative and in addition to any other rights and remedies the Purchaser may
have.

 

Section 6. 
Counterparts.  This Agreement may be executed in one or more
counterparts and by facsimile, each of which shall be an original, with the
same effect as if the signatures thereto and hereto were upon the same
instrument.

 

Section 7. 
Successors and Assigns.  This Agreement shall inure to
the benefit of and bind the parties and their respective heirs, executors,
administrators, personal and legal representatives, successors and permitted
assigns.

 

Section 8.  Jurisdiction.  This
Agreement shall be governed by and construed in accordance with the laws of the
Province of British Columbia and the federal laws of Canada applicable therein,
without regard to conflicts of law principles. 
The parties hereto shall submit to the exclusive jurisdiction of
the courts of the Province of British Columbia sitting in Vancouver, and hereby
irrevocably waive any claims that such forum is inconvenient or inappropriate.

 

Section 9.  Further Assurances.  Each of the Shareholders, on the one hand,
and Purchaser, on the other hand, will from time to time execute and deliver
all such further documents and instruments and do all such acts and things as
the other party may, either before or after the Effective Date (as such term is
defined in the Acquisition Agreement), reasonably require to effectively carry
out or better evidence or perfect the full intent and meaning of this
Agreement.

 

Section 10. 
Severability.  If any term, condition or provision in this
Agreement is determined to be void or unenforceable in whole or in part, such
term, condition or provision shall be severable from all other terms,
conditions and provisions hereof and shall not affect or impair the validity of
any other term, condition or provisions hereof.

 

[SIGNATURE PAGE FOLLOWS]

 

3

 

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

 

	
  NEULION, INC.

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Per:

  	
  (s) Roy. E. Reichbach

  	
   

  	
   

  
	
  Authorized
  signing officer

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  DOWCO
  COMPUTER SYSTEMS LTD.

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Per:

  	
  (s)
  Hugh Dobbie

  	
   

  	
   

  
	
  Authorized
  signing officer

  	
   

  
	
   

  	
   

  
	
  HUGH
  DOBBIE, JR.

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  (s)
  Hugh Dobbie, Jr.

  	
   

  	
  (s)
  John Rea

  
	
  Hugh
  Dobbie, Jr.

  	
  Witness
  Name:

  
					

 

4Exhibit 10.27

 

EXECUTION COPY

 

COLLABORATION AND LICENSE
AGREEMENT

 

This COLLABORATION AND
LICENSE AGREEMENT (this “Agreement”), dated as of December 23, 2008
(the “Execution Date”), is entered into by and between SYNTA
PHARMACEUTICALS CORP., a Delaware corporation having a principal office at 45
Hartwell Avenue, Lexington, MA 02421, U.S.A. (“SYNTA”), and F.
HOFFMANN-LA ROCHE LTD, a Swiss corporation having a principal office located at  Grenzacherstrasse
124, CH-4070 Basel, Switzerland (“ROCHE BASEL”) and HOFFMANN-LA
ROCHE INC., a New Jersey corporation having a principal office at 340 Kingsland
Street, Nutley, New Jersey 07110, U.S.A.  (“ROCHE NUTLEY”;
ROCHE BASEL and ROCHE NUTLEY together referred to as “ROCHE”).

 

INTRODUCTION

 

WHEREAS, ROCHE has expertise
and capability in the research, development, manufacture and commercialization
of pharmaceutical products;

 

WHEREAS, SYNTA is a
biopharmaceutical company focused on discovering, developing and
commercializing products for extending and enhancing the lives of patients with
severe medical conditions, including inflammatory and immune-mediated diseases
and disorders; and

 

WHEREAS, SYNTA and ROCHE
desire to collaborate on the discovery, research, development and
commercialization of certain potential products containing small-molecule
compounds that may be contributed to the collaboration by either party and
directed to the inhibition of calcium release-activated calcium channels.

 

NOW, THEREFORE, in
consideration of the mutual covenants contained herein and other good and
valuable consideration the receipt of which is hereby acknowledged, SYNTA and
ROCHE agree as follows:

 

ARTICLE
I -DEFINITIONS

 

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

 

1.1.          “Affiliate” means any Person directly or indirectly
controlled by, controlling, or under common control with, a Party, but only for
so long as such control shall continue. 
For purposes of this definition, “control” (including, with correlative
meanings, “controlled by”, “controlling” and “under common control with”)
means, with respect to a Person, possession, direct or indirect, of (a) the
power to direct or cause direction of the management and policies of such
Person (whether through ownership of securities or partnership or other
ownership interests, by contract or otherwise), or (b) at least fifty
percent (50%) of the voting securities (whether directly or pursuant to any
option, warrant, or other similar arrangement) or other comparable equity
interests.  Anything to the contrary in
this paragraph notwithstanding, Genentech, Inc., a Delaware corporation (“Genentech”)
and its subsidiaries, and Chugai Pharmaceutical Co., Ltd, a 

 

Portions of this Exhibit were omitted and
have been filed separately with the Secretary of the Commission pursuant to the
Company’s application requesting confidential treatment under Rule 24b-2 of the
Securities Exchange Act of 1934, as amended.

 

1

 

Japanese corporation (“Chugai”) and
its subsidiaries (each, Genentech, Chugai and their subsidiaries a “ROCHE
Entity”), shall not be deemed an Affiliate of ROCHE unless ROCHE provides
written notice to SYNTA of its desire to include a particular ROCHE Entity as
an Affiliate of ROCHE.  ROCHE shall have
the right to include such ROCHE Entity in whole or in part, i.e. on a legal
entity-by-legal entity basis. 
Notwithstanding such written notice, if any ROCHE Entity does not agree
to be bound by the terms and conditions of this Agreement, then such ROCHE
Entity shall have none of the rights and obligations of an Affiliate of ROCHE
under this Agreement.  Notwithstanding
the preceding provisions, once an entity ceases to be an Affiliate, then such
entity shall, without any further action, cease to have any rights, including
license and sublicense rights, under this Agreement that it has by reason of
being an Affiliate but shall remain bound by the provisions of Article IX
in accordance with its terms.

 

1.2.          “Business Day” means a day that is not a Saturday,
Sunday or a day on which banking institutions in Boston, Massachusetts, U.S.,
or in Basel, Switzerland are authorized by Law to remain closed.

 

1.3.          “Calendar Quarter” means each of the three (3) month
periods ending on March 31, June 30, September 30, and December 31
of any year.

 

1.4.          “Change of Control” means, with respect to a
Party:  (a) the acquisition by any
Third Party of beneficial ownership of fifty percent (50%) or more of the
then-outstanding common shares or voting power of such Party, other than
acquisitions by employee benefit plans sponsored or maintained by such Party;
or (b) the consummation of a business combination involving such Party,
unless, following such business combination, the stockholders of such Party
immediately prior to such business combination beneficially own directly or
indirectly more than fifty percent (50%) of the then-outstanding common shares
or voting power of the entity resulting from such business combination.

 

1.5.          “Clinical Trial” means a Phase 1 Clinical Trial, a
Phase 2 Clinical Trial, a Phase 2a Clinical Trial, a Phase 2b Clinical Trial or
a Phase 3 Clinical Trial.

 

1.6.          “Collaboration Compound” means any small-molecule
compounds Controlled by a Party which such Party knows or believes is a CRAC
Channel Inhibitor.  Any Collaboration
Compound shall also include all pro-drugs, metabolites, constitutional and
geometric isomers, regioisomers, stereoisomers including enantiomers and
diastereoisomers, salt forms, hydrates, solvates and polymorphs of such
Collaboration Compound, all of which shall constitute a single Collaboration
Compound.

 

1.7.          “Commercialization” and “Commercialize” means
all activities undertaken relating to the marketing, promotion (including
advertising, detailing and Phase 4 studies), any other offering for sale,
distribution and sale of a product.

 

1.8.          “Commercially Reasonable Efforts” means such level
of efforts required to carry out an obligation in a sustained manner
consistent, as to ROCHE, with the efforts normally used by major global
pharmaceutical companies or, as to SYNTA, with the efforts normally used by 

 

Portions of this Exhibit were omitted and
have been filed separately with the Secretary of the Commission pursuant to the
Company’s application requesting confidential treatment under Rule 24b-2 of the
Securities Exchange Act of 1934, as amended.

 

2

 

biopharmaceutical companies of comparable
size and resources and at the same stage of development as SYNTA, for a product
or compound which is of similar market potential and at a similar stage of
development or commercialization, as applicable, taking into account the
existence of other competitive products in the market place or under
development, the proprietary position of the product, the regulatory structure
involved, the anticipated profitability of the product (without regard to any
amounts paid or payable with respect to Licensed Products under this Agreement)
and other relevant factors.  It is also
to be appreciated that a major global pharmaceutical company does not always
seek to market products in every country or seek regulatory approval for every
potential Indication, but that ROCHE shall undertake to commercialize Licensed
Products in the Major Markets absent a compelling reason not to do so.  It is understood that such products’
potential may change from time to time based upon changing scientific, business
and marketing and return on investment considerations.  As a result, the exercise of diligence by
ROCHE is to be determined by judging ROCHE’s commercially reasonable efforts
taken as a whole.

 

1.9.          “Confidential Information” means all proprietary
Know-how of a Party which are disclosed (whether in written, graphic, oral,
electronic or other form) by or on behalf of such Party to another Party
pursuant to this Agreement, including: information regarding a Party’s or its
licensor’s technology, products, business or financial status, and biological
or chemical substances, formulations, techniques, methodology, equipment,
sources of supply, patent positioning, and business plans.  The status, prospects or objectives regarding
the Research Program, Collaboration Compounds or Licensed Products shall be
deemed “Confidential Information” of both Parties.  All information disclosed prior to the
Effective Date by or on behalf of either Party under, and subject to, any of
the confidentiality agreements between SYNTA and ROCHE NUTLEY dated [***], and
[***] or the confidentiality agreement between SYNTA and Roche Palo Alto LLC,
an Affiliate of ROCHE, dated [***] (together, the “Confidentiality
Agreements”) shall be deemed “Confidential Information” of the disclosing
Party hereunder.

 

1.10.        “Contract Year” means each successive twelve (12)
month period commencing on January 1, 2009 and on each anniversary
thereof.

 

1.11.        “Control” or “Controlled” means, with respect
to any Patent Rights or Know-how and with respect to any Person, possession
(whether by ownership or license, other than a license granted pursuant to this
Agreement) by such Person of the ability to grant the licenses or sublicenses
as provided for herein without violating the terms of any agreement or other
arrangement with any Third Party.

 

1.12.        “Co-promoted Product” means a Licensed Product with
respect to which SYNTA has exercised its Co-promotion Option pursuant to Section 5.3.

 

1.13.        “Co-promotion” means the joint marketing and promotion
(including detailing) of Licensed Products in the United States as further
described in Article V.

 

Portions of this Exhibit were omitted and
have been filed separately with the Secretary of the Commission pursuant to the
Company’s application requesting confidential treatment under Rule 24b-2 of the
Securities Exchange Act of 1934, as amended.

 

3

 

1.14.        “Cover”, “Covering” or “Covered” means,
with respect to a product, composition, technology, process or method that, in
the absence of ownership of or a license granted under a Valid Claim, the
manufacture, use, offer for sale, sale or importation of such product or the
practice of such technology, process or method would infringe such Valid Claim
(or, in the case of a Valid Claim that has not yet issued, would infringe such
Valid Claim if it were to issue).

 

1.15.        “CRAC Channel” means the genes for the calcium
release-activated calcium channel (also known by names [***].

 

1.16.        “CRAC Channel Inhibitor” means [***].

 

1.17.        “Development” and “Develop” means, with respect
to a Licensed Compound, non-clinical (including preclinical) and clinical drug
development activities, pre-marketing activities and related research,
including:  conducting toxicology
studies, DMPK studies, process and drug product (dosage form) development,
statistical analysis and report writing, clinical trials for the purpose of
obtaining or maintaining Regulatory Approval (including post-marketing studies
intended to support Regulatory Approval but excluding Phase 4 studies) and
regulatory affairs related to all of the foregoing.  Development shall not include Research.

 

1.18.        “Development Cost” means the costs incurred by SYNTA
for its account after the Effective Date which are consistent with a
Development Plan and are specifically attributable to the Development of
Licensed Compounds or Licensed Products. 
Such costs shall mean the direct cost and indirect costs of all SYNTA
Development personnel and Third Party costs, all of them incurred to further
the Development of Licensed Compounds or Licensed Products.  SYNTA shall calculate the direct and indirect
costs of SYNTA Development personnel based on the FTE Rate.

 

1.19.        “Effective Date” means the Execution Date.

 

1.20.        “EMEA” means the European Medicines Agency and any
successor agency thereto.

 

1.21.        “EU” means the European Union, as it may be redefined
from time to time.

 

1.22.        “Executive Officer(s)” means, with respect to SYNTA,
the Chief Executive Officer of SYNTA, and with respect to ROCHE, Head of Pharma
Partnering.

 

1.23.        “FBMC” means, for a Licensed Product, the standard
manufacturing cost, as defined by the manufacturing Party’s standard cost
accounting practices and policies and consistently applied by such Party.  FBMC shall include direct labor, materials,
product testing costs, including quality control and quality assurance bulk
testing and in-process testing (e.g.,
adventitious virus and mycoplasma testing), and allocable overhead for
manufacturing or contracting for each stage of the manufacturing process of the
Licensed Product shipped.  In addition,
FBMC includes failures that are considered normal yield losses that could be
reasonably expected or justified in this area of technology, excess capacity
and idle plant cost to 

 

Portions of this Exhibit were omitted and
have been filed separately with the Secretary of the Commission pursuant to the
Company’s application requesting confidential treatment under Rule 24b-2 of the
Securities Exchange Act of 1934, as amended.

 

4

 

the extent associated with the Licensed
Product, and write off and disposal costs of expired goods (raw materials,
intermediates and products).

 

1.24.        “FDA” or “Food and Drug Administration” means
the United States Food and Drug Administration and any successor agency
thereto.

 

1.25.        “Field” means all human pharmaceutical and diagnostic
uses, excluding medical device uses.

 

1.26.        “First Commercial Sale” means, with respect to a
Licensed Product in a country in the Territory, the first bona fide
arms-length sale of such Licensed Product sold to a Third Party in such country
by or on behalf of ROCHE, its Affiliates or Sublicensees after Regulatory
Approval has been obtained for such Licensed Product in such country.

 

1.27.        “First Licensed Compound” means, with respect to each
stage of Development (the early stages of which are described in Section 2.4.1),
the first Licensed Compound to enter such stage of Development during the Term.

 

1.28.        “FTE” means a full-time equivalent person-year
(consisting of a total of [***] hours
per year) of scientific, technical, or managerial work on or directly related
to activities performed under the Research Plan or Development Plan.

 

1.29.        “FTE Rate” means $[***] per FTE, increased annually by
the percentage increase in the Consumer Price Index (“CPI”) as of the
then-most-recent December 31 over the CPI as of December 31,
[***].  [***] $[***].  As used in this Section 1.29, Consumer
Price Index or CPI means the Consumer Price Index — Urban Wage Earners and
Clerical Workers, US City Average, All Items, 1982-84 = 100, published by the
United States Department of Labor, Bureau of Labor Statistics (or its successor
equivalent index).

 

1.30.        “Generic Competition” means, with respect to a
Licensed Product in any country in the Territory in a given Calendar Quarter,
if, during such Calendar Quarter, one or more Generic Products shall be
commercially available in such country and such Generic Products shall have a
market share of [***] percent ([***]%) or more of the aggregate market in such
country of such Licensed Product and Generic Products (based on sales of units
of such Licensed Product and such Generic Products, as reported by IMS
International, or if such data are not available, such other reliable data
source as reasonably determined by ROCHE and agreed by SYNTA).

 

1.31.        “Generic Product” means, with respect to a Licensed
Product in a country, any pharmaceutical product sold by a Third Party not
authorized by or on behalf of ROCHE or its Affiliates, that (a) contains
as an active pharmaceutical ingredient the same CRAC Channel Inhibitor (or its
pro-drug, metabolite, constitutional or geometric isomer, regioisomer,
stereoisomer including enantiomer or diastereoisomer, salt form, hydrate,
solvate or polymorph of such CRAC Channel Inhibitor), as the one contained in
such Licensed Product, (b) is “a therapeutic equivalent” to such Licensed
Product as such term is used in the Approved Drug Products with Therapeutic
Equivalence Evaluations published by the FDA Center for Drug 

 

Portions of this Exhibit were omitted and
have been filed separately with the Secretary of the Commission pursuant to the
Company’s application requesting confidential treatment under Rule 24b-2 of the
Securities Exchange Act of 1934, as amended.

 

5

 

Evaluation and Research or any successor
publication, and (c) is approved in reliance on the prior approval of such
Licensed Product as determined by the applicable Regulatory Authority in such
country.

 

1.32.        “GLP Toxicology Study” means an in vivo
toxicology study designed to be no less than [***] ([***]) days in duration,
that is conducted in compliance with GLP and is required to meet the
requirements for filing an IND.

 

1.33.        “GLP” or “Good Laboratory Practice” means
current good laboratory practice standards promulgated or endorsed by the FDA
as defined in 21 C.F.R. Part 58, or any comparable regulatory standards in
any country other than the United States.

 

1.34.        “IND” or “Investigational New Drug Application”
means an Investigational New Drug Application filed with the FDA in the United
States or any equivalent counterpart in any country other than the United
States, including all supplements and amendments thereto.

 

1.35.        “Indication” means any human disease or condition, or
sign or symptom of a human disease or condition.

 

1.36.        “Initiation” means, with respect to a Clinical Trial,
the first dosing of the first patient enrolled in such Clinical Trial with a
Licensed Product; and with respect to a GLP Toxicology Study, the first dosing
of the first mammal in such study.

 

1.37.        “Joint Intellectual Property” means the Joint Know-how
and Joint Patent Rights.

 

1.38.        “Joint Know-how” means Know-how that is developed by
one or more employees, agents or consultants of SYNTA or any of its Affiliates,
on the one hand, and one or more employees, agents or consultants of ROCHE or
any one of its Affiliates, on the other hand, in the conduct of Research,
Development, Manufacturing or Commercialization of Collaboration Compounds,
Licensed Compounds or Licensed Products, including Joint Inventions.

 

1.39.        “Joint Patent Rights” means all Patent Rights that
claim or disclose Joint Know-how.

 

1.40.        “Know-how” means any information and materials,
whether patentable or not, including (a) ideas, discoveries, inventions,
improvements or trade secrets, (b) pharmaceutical, chemical and biological
materials, products and compositions, (c) tests, assays, techniques, data,
methods, procedures, formulas, or processes, (d) technical, medical,
clinical, toxicological, and other scientific data and other information
relating to any of the foregoing, and (e) drawings, plans, designs,
diagrams, sketches, specifications, or other documents containing or relating
to such information or materials.

 

1.41.        “Law” or “Laws” means all laws, statutes,
rules, regulations, orders, judgments, or ordinances having the effect of law
of any federal, national, multinational, state, provincial, county, city or
other political subdivision.

 

Portions of this Exhibit were omitted and
have been filed separately with the Secretary of the Commission pursuant to the
Company’s application requesting confidential treatment under Rule 24b-2 of the
Securities Exchange Act of 1934, as amended.

 

6

 

1.42.        “Licensed Compound” means [***].  For further clarity, if ROCHE terminates a
Licensed Compound in one or more regions pursuant to Section 12.3, such
Licensed Compound shall continue to be deemed a Licensed Compound except as
provided in Article XII unless and until ROCHE terminates such Licensed
Compound in all Regions pursuant to Section 12.3 (whether ROCHE so
terminates such Licensed Compound in all Regions simultaneously or terminates
such Licensed Compound in all Regions over time).  For the sake of clarity, any Licensed
Compound shall also include all pro-drugs, metabolites, constitutional and
geometric isomers, regioisomers, stereoisomers including enantiomers and
diastereoisomers, salt forms, hydrates, solvates and polymorphs of such
Licensed Compound, all of which shall constitute a single Licensed Compound.  [***].

 

1.43.        “Licensed Product” means any pharmaceutical product
containing as an active pharmaceutical ingredient a Licensed Compound; provided,
however, that such product may not contain an active pharmaceutical
ingredient having a composition of matter that is Covered by SYNTA Patent
Rights unless such active pharmaceutical ingredient is a Licensed Compound.

 

1.44.        “Major EU Country” means France, Germany, Italy, Spain
or the United Kingdom.

 

1.45.        “Major Market” means any Major EU Country, Japan, or
the United States.

 

1.46.        “Manufacture” means all activities related to the
manufacturing of a compound or product, including test method development and
stability testing, formulation, process development, manufacturing scale-up,
manufacturing for use in non-clinical and clinical studies, manufacturing for
commercial sale, packaging, release of product, quality assurance/quality
control development, quality control testing (including in-process, in-process
release and stability testing) and release of product or any component or
ingredient thereof, and regulatory activities related to all of the foregoing.

 

1.47.        “Marketing Exclusivity” means, with respect to a
pharmaceutical product in a country: (a) the exclusivity afforded to the
pharmaceutical product for being the first drug product containing the active
ingredient to receive regulatory approval in that country, (b) pediatric
exclusivity, or (c) orphan drug exclusivity, but only when the
pharmaceutical product does not also have a non-orphan drug indication that is
not protected by an unexpired exclusivity.

 

1.48.        “MHLW” means the Japanese Ministry of Health, Labor
and Welfare and any successor agency thereto.

 

1.49.        “NDA” means a New Drug Application or a supplemental
New Drug Application, as defined in 21 C.F.R. §§314.50 and 314.70,
respectively, filed with the FDA with respect to a Licensed Product, or an
equivalent application filed with the Regulatory Authority of a country in the
Territory other than the United States, including any Marketing Authorization
Application filed with the EMEA.

 

1.50.        “Net Sales” means the amount calculated by subtracting
from the amount of Adjusted Gross Sales (as defined below) a lump sum deduction
of (1) [***] percent ([***]%) of 

 

Portions of this Exhibit were omitted and have
been filed separately with the Secretary of the Commission pursuant to the
Company’s application requesting confidential treatment under Rule 24b-2 of the
Securities Exchange Act of 1934, as amended.

 

7

 

Adjusted Gross Sales, with respect to Net
Sales in the United States, (2) [***] percent ([***]%) of Adjusted Gross
Sales, with respect to Net Sales in the Major Markets (other than the U.S.) and
Canada, and (3) [***] percent ([***]%) of Adjusted Gross Sales, with
respect to Net Sales in all territories other than those set forth in clause (1) and
(2) above, in lieu of all deductions corresponding to charges allocable to
the sale of Licensed Product and paid by ROCHE but which are not accounted for
by ROCHE, its Affiliates, ROCHE Entities and Sublicensees on a
product-by-product basis in the calculation of Adjusted Gross Sales (e.g.,
outward freights, postage charges, transportation insurance, packaging
materials for dispatch of goods, custom duties, bad debt expense).

 

For purposes of this
definition of “Net Sales”, “Adjusted Gross Sales” shall mean the amount
of gross sales of Licensed Product invoiced by ROCHE, its Affiliates, ROCHE
Entities and its Sublicensees to Third Parties less deductions (which deductions
shall in all cases be as consistently applied by ROCHE to its products) for:

 

(a)                   Governmental
price reductions and changes to reserves for governmental price reductions,
such as rebates to managed care organizations or social and welfare systems,
charge backs or reserves for chargebacks, cash sales incentives (but only to
the extent it is a sales related deduction which is accounted for within ROCHE
on a product-by-product basis), government mandated rebates and similar types
of rebates (e.g., Pharmaceutical Price Regulation Scheme, Medicaid, clawback
schemes and any other similar such scheme);

 

(b)                   Contract
pricing chargebacks and changes to reserves of contract pricing chargebacks,
such as periodic charges of wholesalers and chargebacks for price capping
programs;

 

(c)                   Customer
rebates and changes to reserves of customer rebates, such as volume (quantity)
discounts or price discounts;

 

(d)                   Returns and
return reserves, including allowances actually given for spoiled, damaged,
out-dated, rejected, returned Licensed Product sold, withdrawals and recalls;

 

(e)                   Cash
discounts; and

 

(f)                    Taxes, such
as value added or sales taxes, government mandated exceptional taxes and other
taxes directly linked to the gross sales amount (but excluding income or
capital gains taxes).

 

For the avoidance of doubt,
the “Adjusted Gross Sales” shall be determined on a Licensed
Product-by-Licensed Product basis using the same methodology as ROCHE
consistently uses to recognize sales in its financial reporting, which is in
accordance with the then-used International Financial Reporting Standards
(IFRS), and is reviewed and approved by ROCHE’s external auditors, it being
understood that if the amount of any of the reserves accounted for as a
deduction in the definition of “Adjusted Gross Sales” above exceeds the actual
amount for which the reserve was established, the amount of such excess shall
be treated as Net Sales.

 

Portions of this Exhibit were omitted and
have been filed separately with the Secretary of the Commission pursuant to the
Company’s application requesting confidential treatment under Rule 24b-2 of the
Securities Exchange Act of 1934, as amended.

 

8

 

Notwithstanding the
foregoing, amounts received by ROCHE, its Affiliates, ROCHE Entities and
Sublicensees for the sale of Licensed Product among ROCHE, its Affiliates,
ROCHE Entities or Sublicensees for resale shall not be included in the
computation of Adjusted Gross Sales or Net Sales.

 

If a Licensed Product is
sold as part of a Combination Product (as defined below), the Net Sales of the
Licensed Product, for the purposes of determining royalties based on Net Sales,
shall be determined country-by-country by multiplying the Net Sales of the
Combination Product (as determined using the standard Net Sales definition),
during the applicable reporting period, by the fraction, A/(A+B), where A is
the average sale price of the Licensed Product when sold separately in similar
quantities in finished form and B is the average sales price of the other
compounds having independent therapeutic activity included in the Combination
Product when sold separately in similar quantities in finished form, in each
case in the same country as the Combination Product during the applicable
reporting period or, if sales of both the Licensed Product and the other
compounds having independent therapeutic activity did not occur in such period,
then in the most recent reporting period in which sales of both occurred in the
same country as the Combination Product. 
If such average sale price cannot be determined for both the Licensed
Product and all other compounds having independent therapeutic activity
included in the Combination Product, Net Sales of the Licensed Product for the
purposes of determining royalty payments shall be calculated by multiplying the
Net Sales of the Combination Product by the fraction of C/(C+D) where C is the
fair market value of the Licensed Product and D is the fair market value of all
other compounds having independent therapeutic activity included in the
Combination Product.  In such event,
ROCHE shall in good faith make a determination of the respective fair market
values of the Licensed Product and all other compounds having independent
therapeutic activity included in the Combination Product, and shall notify
SYNTA of such determination and provide SYNTA with data to support such
determination.  SYNTA shall have the
right to review such determination and supporting data, and to notify ROCHE if
it disagrees with such determination.  If
SYNTA does not agree with such determination and if the Parties are unable to
agree in good faith as to such respective fair market values, then such matter
shall be resolved in accordance with Section 13.2.

 

As used in this Agreement, “Combination
Product” means any Licensed Product containing one or more additional
active pharmaceutical compounds having independent therapeutic activity other
than a Licensed Compound.

 

1.51.     “Party” or “Parties” means SYNTA or ROCHE, as the
context requires.

 

1.52.     “Patent Rights” means all rights under any patent or
patent application, in any country or jurisdiction in the Territory, including
any patents issuing on such patent application and any substitution, extension
or supplementary protection, certificate, reissue, reexamination, renewal,
division, continuation or continuation-in-part of any of the foregoing.

 

1.53.     “Person” means any natural person, corporation, general
partnership, limited partnership, joint venture, proprietorship or other
business organization or a governmental agency or a political subdivision
thereto.

 

Portions of this Exhibit were omitted and
have been filed separately with the Secretary of the Commission pursuant to the
Company’s application requesting confidential treatment under Rule 24b-2 of the
Securities Exchange Act of 1934, as amended.

 

9

 

1.54.     “Phase 1 Clinical
Trial” means a human clinical trial in any country, the principal
purpose of which is a preliminary determination of safety in individuals or
patients, that would satisfy the requirements of 21 C.F.R. §312.21(a), or an
equivalent clinical study required by a Regulatory Authority outside of the
United States.

 

1.55.     “Phase 2 Clinical
Trial” means a human clinical trial conducted in any country,
intended to explore multiple doses, dose response, and duration of effect to
generate initial evidence of safety and activity in a target patient
population, that would satisfy the requirements of 21 C.F.R. §312.21(b), or an
equivalent clinical study required by a Regulatory Authority outside of the
United States.

 

1.56.     “Phase 2a Clinical
Trial” means, as to a particular Licensed Compound for an
Indication, a Phase 2 Clinical Trial, or the relevant portion thereof,
conducted in a sufficient number of patients to generate sufficient data, if
successful, to commence a Phase 2b Clinical Trial or a Phase 3 Clinical Trial
of such Licensed Compound for such Indication.

 

1.57.     “Phase 2b Clinical
Trial” means, as to a particular Licensed Product for an Indication,
a Phase 2 Clinical Trial, or the relevant portion thereof, conducted in a
sufficient number of patients to generate sufficient data, if successful, to
either commence a Phase 3 Clinical Trial of such Licensed Compound for such
Indication or file an NDA for such Licensed Product for such Indication.

 

1.58.     “Phase 3 Clinical
Trial” means a human clinical trial in any country that would
satisfy the requirements of 21 C.F.R. §312.21(c), or an equivalent clinical
study required by a Regulatory Authority outside of the United States.

 

1.59.     “Region” means each of the following:  (a) United States and Canada,
collectively, (b) the EU, Iceland, Liechtenstein, Norway and Switzerland,
collectively, (c) Japan, and (d) all countries in the rest of the
world, collectively.

 

1.60.     “Regulatory Approval” means any approval (including, if
applicable, pricing and reimbursement approvals), licenses, registrations or
authorizations by a Regulatory Authority that are necessary for the marketing
and sale of product in a country or group of countries.

 

1.61.     “Regulatory Authority” means any federal, national,
multinational, state, provincial or local regulatory agency, department, bureau
or other governmental entity with authority over the marketing, pricing or sale
of a product in a country, including the FDA.

 

1.62.    “Research” means all activities relating to the discovery,
evaluation and early preclinical testing of a compound or product, including
identification of potential candidates, synthesis and testing by in vitro or in vivo assays, leading up to (with respect to Collaboration
Compounds) the nomination and approval for advancement into Development of a
Licensed Compound(s).  Research shall
exclude Development; provided  however that Research and Development
activities with respect to any compound or product may proceed in parallel.

 

Portions of this Exhibit were omitted and
have been filed separately with the Secretary of the Commission pursuant to the
Company’s application requesting confidential treatment under Rule 24b-2 of the
Securities Exchange Act of 1934, as amended.

 

10

 

1.63.     “Research Program” means the conduct
of the Research activities described in the Research Plan.

 

1.64.     “Right of Reference or Use” means a “right
of reference or use” as that term is defined in 21 C.F.R. §314.3(b), or an
equivalent in a country in the Territory other than the United States.

 

1.65.     “ROCHE Intellectual Property” means
the ROCHE Know-how, the ROCHE Patent Rights, and ROCHE’s interest in the Joint
Know-how and Joint Patent Rights.

 

1.66.     “ROCHE Know-how” means, as of the
relevant time during the Term, any Know-how that (a) is Controlled by
ROCHE or its Affiliates, and (b) is, at that time, necessary or useful for
the Research, Development, Manufacture or Commercialization of any
Collaboration Compound, Licensed Compound or Licensed Product; provided,
however, that ROCHE Know-how excludes Joint Know-how.

 

1.67.     “ROCHE Patent Rights” means as of
the relevant time during the Term, all Patent Rights that are Controlled by
ROCHE or any of its Affiliates that, at such time, claim or disclose ROCHE
Know-how.  ROCHE Patent Rights exclude
Joint Patent Rights.

 

1.68.     “SYNTA Intellectual Property” means
the SYNTA Know-how, the SYNTA Patent Rights and SYNTA’s interest in Joint
Know-how and the Joint Patent Rights.

 

1.69.     “SYNTA Know-how” means as of the
relevant time during the Term, any Know-how that (a) is Controlled by
SYNTA, and (b) is, at that time, necessary or useful for the Research,
Development, Manufacture or Commercialization of any Collaboration Compound,
Licensed Compound or Licensed Product; provided, however, that
SYNTA Know-how excludes Joint Know-how.

 

1.70.     “SYNTA Patent Rights” means, as of
the relevant time during the Term, all Patent Rights Controlled by SYNTA that,
at such time, claim or disclose SYNTA Know-how. 
Certain SYNTA Patent Rights existing as of the Execution Date are set forth on Exhibit A; provided,
however, that SYNTA Patent Rights exclude Joint Patent Rights.

 

1.71.     “[***]” means [***].

 

1.72.     “[***]” means [***].

 

1.73.     “[***]” means [***].

 

1.74.    “Sublicensee” means a Third Party to
whom such Party has granted a sublicense pursuant to Sections 6.4, 12.6.6 or
12.10.7.

 

1.75.     “Territory” means all countries of
the world, but excluding, with respect to any Licensed Compound (and any
products containing such Licensed Compound as an active ingredient), each
Terminated Region.

 

Portions
of this Exhibit were omitted and have been filed separately with the Secretary
of the Commission pursuant to the Company’s application requesting confidential
treatment under Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

 

11

 

1.76.     “Third Party” means any Person other
than SYNTA or ROCHE or any of their respective Affiliates.

 

1.77.     “United States” or “US” means
the United States of America, its territories and possessions.

 

1.78.     “Valid Claim” means any claim in any
(a) unexpired and issued patent that has not been disclaimed, revoked or
held invalid by a final nonappealable decision of a court or other governmental
agency of competent jurisdiction, or (b) patent application that has not
lapsed, in the case of a provisional patent application, or been cancelled,
withdrawn or abandoned without the possibility of revival, nor has been pending
for more than [***] ([***]) years from the earliest priority date claimed for
such application.

 

1.79.        Additional Definitions.  Each of the following definition is set forth
in the section of this Agreement indicated below:

 

	
  Definition:

  	
   

  	
  Section:

  
	
  AAA

  	
   

  	
  13.2.1

  
	
  Accounting Period

  	
   

  	
  7.7.1

  
	
  Actual Costs

  	
   

  	
  2.5.4

  
	
  Adjusted Gross Sales

  	
   

  	
  1.51

  
	
  Agent

  	
   

  	
  9.1

  
	
  Agreement

  	
   

  	
  Preamble

  
	
  Alliance Manager

  	
   

  	
  3.1.3

  
	
  Bankruptcy Code

  	
   

  	
  6.7

  
	
  Budget

  	
   

  	
  2.4.3

  
	
  Chugai

  	
   

  	
  1.1

  
	
  Combination Product

  	
   

  	
  1.50

  
	
  Commercialization Decision

  	
   

  	
  5.3

  
	
  Confidentiality Agreements

  	
   

  	
  1.9

  
	
  Co-promotion Option

  	
   

  	
  5.3

  
	
  Covered Excess Amount

  	
   

  	
  2.5.4

  
	
  CPI

  	
   

  	
  1.29

  
	
  Development Plan

  	
   

  	
  2.4.3

  
	
  Execution Date

  	
   

  	
  Preamble

  
	
  Genentech

  	
   

  	
  1.1

  
	
  Indemnified Party

  	
   

  	
  11.3

  
	
  Indemnifying Party

  	
   

  	
  11.3

  
	
  Infringement Claim

  	
   

  	
  8.3.1

  
	
  Joint Inventions

  	
   

  	
  8.1.1

  
	
  JRDC

  	
   

  	
  3.1.1

  
	
  JSC

  	
   

  	
  3.2.1

  
	
  Notice

  	
   

  	
  9.3.2

  
	
  Paragraph IV Certification

  	
   

  	
  8.6

  
	
  Patent Challenge

  	
   

  	
  12.5

  

 

Portions
of this Exhibit were omitted and have been filed separately with the Secretary
of the Commission pursuant to the Company’s application requesting confidential
treatment under Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

 

12

 

	
  Definition:

  	
   

  	
  Section:

  
	
  Publishing Party

  	
   

  	
  9.3.2

  
	
  Research Plan

  	
   

  	
  2.3.3

  
	
  Research Term

  	
   

  	
  2.3.1

  
	
  Royalty Term

  	
   

  	
  7.6.3(a)

  
	
  ROCHE

  	
   

  	
  Preamble

  
	
  ROCHE BASEL

  	
   

  	
  Preamble

  
	
  ROCHE Entity

  	
   

  	
  1.1

  
	
  ROCHE NUTLEY

  	
   

  	
  Preamble

  
	
  SYNTA

  	
   

  	
  Preamble

  
	
  Term

  	
   

  	
  12.1

  
	
  Terminated Commercial Product

  	
   

  	
  12.10.6

  
	
  Terminated Region

  	
   

  	
  12.3

  
	
  Uncovered Excess Amount

  	
   

  	
  2.5.4

  

 

ARTICLE II -COLLABORATION

 

2.1.          Overview.  The
primary objective of the collaboration between the Parties will be to identify
and select Collaboration Compounds under the Research Program that are suitable
for further Research and, subject to Section 2.4, to advance the
Development of such Collaboration Compounds as Licensed Compounds and the
Commercialization of related Licensed Products in the Field, as further
described below.

 

2.2.          Commercially Reasonable Efforts.  Each Party shall use Commercially Reasonable
Efforts to conduct the activities which are assigned to such Party under the
Research Plan or any Development Plan; provided, however, that
neither Party guarantees the success of the Research Program or any individual
Research, Development or Manufacturing activity undertaken under the Research
Plan or Development Plan.  Without
limiting ROCHE’s obligations pursuant to this Section 2.2, ROCHE shall use
Commercially Reasonable Efforts to (a) Develop, at any given time, at
least one Licensed Compound, and (b) seek Regulatory Approval for at least
one Licensed Compound and then Commercialize each such approved Licensed
Product for each approved Indication in the Field in the Territory.

 

2.3.          Research Program.

 

2.3.1.       Research Term.  The initial term of the Research Program
shall commence on January 1, 2009 and end on the second (2nd) anniversary thereof,
unless (a) earlier terminated hereunder, or (b) extended by mutual
agreement of the Parties for additional one (1) year term(s), in which
case the Parties shall agree upon appropriate FTE commitment levels, budget
adjustments and other necessary amendments to the Research Plan (such initial
two (2) year term, together with any extension, the “Research Term”).  The SYNTA FTE Rate for any such extension
shall be determined as set forth in Section 1.29.

 

2.3.2.       Collaboration Compounds.  The Research Program shall be conducted on
Collaboration Compounds; provided, however, that if, in the
course of the Research Program, it 

 

Portions
of this Exhibit were omitted and have been filed separately with the Secretary
of the Commission pursuant to the Company’s application requesting confidential
treatment under Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

 

13

 

is determined that any such
compound is not a CRAC Channel Inhibitor, such compound shall no longer be
considered a Collaboration Compound, and provided, further, that
any Collaboration Compound that is not a Licensed Compound as of the end of the
Research Term shall revert to the Controlling Party (including all rights thereto
and to any Confidential Information with respect to such Collaboration Compound
which had been disclosed by such Controlling Party) and shall no longer be
deemed a Collaboration Compound for purposes of this Agreement.  It is the intent of the Parties that the
initial Collaboration Compounds with respect to which Research will be
conducted under the Research Program will be the Collaboration Compounds
Controlled and identified by SYNTA hereunder. 
Compounds Controlled by ROCHE will be included as a Collaboration
Compound with respect to which Research will be conducted under the Research
Program and for other purposes of this Agreement only if mutually agreed by the
Parties.  The goal of the Research
Program is for one or more Licensed Compounds to be approved for advancement
into Development under Section 2.3.4.

 

2.3.3.       Research Plan.  The initial plan for the first two (2) Contract
Years of the Research Program is attached hereto as Exhibit B (as
may be amended from time to time upon mutual agreement of the Parties, the “Research
Plan”).  The Parties agree and
acknowledge that this Research Plan reflects, as of the Execution Date, SYNTA’s
good faith estimates of Research activities and the timing, internal costs, and
external costs associated with such activities, all of which could be subject
to change.  During the Research Term,
SYNTA and ROCHE shall prepare an updated Research Plan for the third and each
subsequent Contract Year, if applicable, at least [***] ([***]) days prior to
the start of each such Contract Year. 
The Research Plan shall be consistent with the terms and conditions of
this Agreement and shall be subject to review and approval by the JRDC and the
JSC.  The Research Plan shall specify,
among other things, (a) key objectives, (b) Research and related
Manufacturing activities to be performed up to nomination of a Licensed
Compound for Development, (c) the number and types of FTEs to be assigned
to specific activities and the Party supplying such FTEs, (d) costs and
expenses for services to be provided by Third Parties, (e) to the extent
known in advance, the academic collaborations and subcontractor arrangements
anticipated for the applicable Contract Year, and (f) the budget for the
applicable Contract Year.  With respect
to the first (2) Contract Years, all FTEs specified in the Research Plan
shall be supplied by SYNTA.  For the sake
of clarity, neither the initial Research Plan attached hereto, nor any
subsequent Research Plan once agreed by the Parties, may be amended except by
mutual agreement of the Parties.

 

2.3.4.       Licensed Compound
Nomination.

 

(a)                   Either
Party may nominate to the JDRC, for approval by the JSC, a Licensed Compound
for advancement into Development leading up to a GLP Toxicology Study.  Upon request by a Party, the other Party
shall provide relevant available information and study results to support such
nomination.  If no Licensed Compound is
approved for advancement into Development during the Research Term or within
[***] ([***])[***] after expiration of the Research Term, SYNTA shall have the
option, not the obligation, to perform the Development activities described in Section 2.4.1.

 

Portions
of this Exhibit were omitted and have been filed separately with the Secretary
of the Commission pursuant to the Company’s application requesting confidential
treatment under Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

 

14

 

(b)                   ROCHE
shall have no right to Develop or Commercialize any Licensed Compound (other
than any activities that may be assigned to ROCHE under the Research Plan)
unless and until such Licensed Compound has been nominated by the JRDC, and
approved by the JSC, for advancement into Development hereunder.

 

2.4.          Development. 
The Parties shall pursue the Development of at least one Licensed
Compound in accordance with a Development Plan and the remainder of this Article II,
including seeking to pursue the Initiation of a GLP Toxicology Study.  For clarity, for each Licensed Compound
approved by the JSC for advancement into Development under Section 2.3.4(a),
a set of Development activities will be conducted prior to the Initiation of a
GLP Toxicology Study, as exemplified in Exhibit C.  As of the Execution Date, the Parties agree
that [***] is anticipated to be the First Licensed Compound.

 

2.4.1.       First Licensed Compound.  For the relevant First Licensed Compound,
SYNTA (itself or through an Affiliate or a Third Party) shall, in accordance
with the Development Plans: conduct pre-IND Development, Phase 1 Clinical
Trials, and other nonclinical Development activities that are typically
performed during each of the foregoing Development stages, and shall have the
right, at SYNTA’s option, to conduct a Phase 2a Clinical Trial for an
Indication other than rheumatoid arthritis, provided, that such
Indication is part of the Development Plan.

 

2.4.2.       Other Licensed Compounds.  Except as mutually agreed by the Parties or
as set forth in Section 2.4.1, and subject to oversight by the JRDC and
the JSC, ROCHE shall be solely responsible for the Development of Licensed
Compounds and Licensed Products in the Field and in the Territory in accordance
with the Development Plan and the terms and conditions of this Agreement; provided,
however, that for Licensed Compounds other than the First Licensed
Compound, the JRDC shall decide which Party shall conduct Development for such
Licensed Compound; provided, further, that the JRDC and JSC
cannot require SYNTA to undertake such responsibility unless SYNTA agrees to do
so.  Prior to the initiation of each
stage of activity to be so conducted by SYNTA with respect to any Licensed
Compound, the Parties shall discuss and undertake to finalize the anticipated
scope, design, content, criteria, protocols, budget and other terms associated
with the conduct of Development for such Licensed Compound and shall update the
Development Plan to reflect such agreement.

 

2.4.3.       Development Plans.  For the First Licensed Compound, the initial
Development Plans through and including one Phase 2a Clinical Trial with
respect thereto are attached hereto as Exhibit C and Exhibit D
(as may be amended from time to time upon mutual agreement of the Parties, the “Development
Plans,” including the “Development Plan — Pre-IND” and “Development
Plan — Phase 1 and Phase 2a,” respectively).  The Parties agree and acknowledge that these
initial Development Plans reflect, as of the Execution Date, SYNTA’s good faith
estimates of Development activities and the timing, internal costs, and
external costs associated with such activities, all of which may be subject to
change.  With respect to the further
Development of the relevant First Licensed Compound or following the approval
for advancement into Development of any subsequent Licensed Compound, SYNTA and
ROCHE, under the guidance of the JRDC, shall prepare initial or updated
Development Plans directed to 

 

Portions
of this Exhibit were omitted and have been filed separately with the Secretary
of the Commission pursuant to the Company’s application requesting confidential
treatment under Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

 

15

 

Development activities in the Territory for
such Licensed Compound for the next twelve (12) month period.  An updated Development Plan for each
subsequent twelve (12) month period will be prepared by SYNTA and ROCHE at
least [***] ([***]) days prior to the beginning of each such subsequent twelve
(12) month period.  The Development Plan
shall be consistent with the terms and conditions of this Agreement, and shall
be subject to review and approval by the JRDC and the JSC.  The Development Plan shall specify, among
other things, (a) key objectives, (b) Development and related
Manufacturing activities to be performed with respect to a Licensed Compound,
including Initiation of Clinical Trials, (c) the Party responsible for
performance of an activity, (d) the number and types of FTEs to be
assigned to specific activities by SYNTA, (e) anticipated costs to be
incurred under the Development Plans (the “Budget”) for the applicable
twelve (12) month period, and (f) Development timelines.  For the sake of clarity, neither the initial
Development Plans attached hereto, nor any subsequent Development Plan once
agreed by the Parties, may be amended except by mutual agreement of the
Parties.

 

2.5.          Development Costs.

 

2.5.1.       General.  ROCHE shall pay its own Development expenses
in carrying out each Development Plan, and shall pay SYNTA for all Development
Costs incurred pursuant to each Development Plan and the applicable Budget as
set forth below.

 

2.5.2.       Audit Rights.  ROCHE shall have the right to audit SYNTA to
verify all of SYNTA’s Development Costs incurred pursuant to a Development Plan
and the Budget.

 

(a)                   SYNTA
shall keep, and shall require its Affiliates to keep, for [***] ([***]) years,
full, true and accurate books of account containing all particulars that may be
necessary for the purpose of calculating all Development Costs under this
Agreement. Such books of accounts shall be kept at SYNTA’s or the relevant
Affiliate’s principal place of business. At the expense of ROCHE, ROCHE has the
right to engage an independent, certified public accountant mutually acceptable
to both Parties to perform, on behalf of ROCHE, an audit of such books and
records of SYNTA and its Affiliates, that are deemed necessary by such
accountant to report on Development Costs for the period or periods requested
by ROCHE and the correctness of any report or payments made under this
Agreement.  Such accountant shall not
have the authority to interpret this Agreement.

 

(b)                   Upon
timely request and at least [***] ([***]) days prior written notice from ROCHE,
such audit shall be conducted, during regular business hours in such a manner
as to not unnecessarily interfere with SYNTA’s or its Affiliates’ normal
business activities, and shall be limited to results in the [***] ([***])
calendar years prior to audit notification.

 

(c)                   Such
audit shall not be performed more frequently than once per calendar year nor
more frequently than once with respect to records covering any specific period
of time.

 

Portions
of this Exhibit were omitted and have been filed separately with the Secretary
of the Commission pursuant to the Company’s application requesting confidential
treatment under Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

 

16

 

(d)                   All
information, data and documents herein referred to shall be used only for the
purpose of verifying Development Costs, shall be treated as SYNTA Confidential
Information subject to the obligations of this Agreement and need neither be
retained more than the longer of one (1) year after completion of an audit
hereof, if an audit has been requested; nor more than [***] ([***]) years from
the end of the calendar year to which each shall pertain; nor more than [***]
([***]) [***] after the date of termination of this Agreement.

 

(e)                   The
final audit report shall be shared by ROCHE and SYNTA.

 

(f)                    If
the audit reveals an underpayment, ROCHE shall reimburse SYNTA for the amount
of the underpayment within [***] ([***]) days with interest as set forth in Section 7.7.2.  If the audit reveals an overpayment, ROCHE
shall have the right to credit the amount of such overpayment against the next
payment payable to SYNTA hereunder. 
SYNTA shall pay for the audit costs if the audit reveals that an
overpayment of ROCHE exceeds [***] percent ([***]%).

 

(g)                   The
failure of ROCHE to request verification of any Actual Costs within the period during
which the corresponding records must be maintained under Section 2.5.2(d) will
be deemed acceptance of the Actual Cost payments and reports with respect
thereto.

 

2.5.3.       Budget.  It is agreed between the Parties that for the
calendar year 2009, the Budget for payment to SYNTA of its Development Costs
under the Development Plan as of the Execution Date is [***] dollars
($[***]).  On or before October 1,
2009 and not later than October 1 of each subsequent calendar year during
the Term, the JSC shall approve annual Budgets for Development Costs scheduled
for the following year; such annual Budgets to be consistent with the
Development Plan(s).  Upon approval, the
annual Budget shall be the Budget then in effect.

 

2.5.4.       Payments to SYNTA; Reconciliation.  ROCHE shall pay to SYNTA the amount set forth
as SYNTA’s Development Costs under the Budget for each Calendar Quarter on or
before the later of (a) the first day of such Calendar Quarter or (b) [***]
([***]) days after receipt of an invoice from SYNTA with respect to such
Development Costs.  Within [***] ([***])
days following the end of each such Calendar Quarter, SYNTA shall provide an
accounting to ROCHE of the actually incurred Development Costs during such Calendar
Quarter (the “Actual Costs”).  Following
the reporting by SYNTA of Actual Costs for each Calendar Quarter, the Parties
shall reconcile any difference between the amounts paid by ROCHE to SYNTA for
Development Costs and SYNTA’s Actual Costs for such Calendar Quarter.  If the amounts paid by ROCHE to SYNTA for
Development Costs exceed SYNTA’s Actual Costs during such Calendar Quarter,
then the amount of such excess shall be credited to ROCHE against the next
payment payable to SYNTA hereunder.  If
SYNTA’s Actual Costs during the Calendar Quarter exceeds by less than [***]
percent ([***]%) the amount paid by ROCHE for Development Costs during such
Calendar Quarter (the amount of such excess, the “Covered Excess Amount”),
then ROCHE shall pay the Covered Excess Amount to SYNTA as a supplemental payment.  If SYNTA’s Actual Costs during the Calendar
Quarter exceeds by [***] 

 

Portions
of this Exhibit were omitted and have been filed separately with the Secretary
of the Commission pursuant to the Company’s application requesting confidential
treatment under Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

 

17

 

percent ([***]%) or more the
amount paid by ROCHE for Development Costs during such Calendar Quarter, then (y) ROCHE
shall pay the Covered Excess Amount to SYNTA as a supplemental payment and (z) with
respect to the amount of such excess over and above the Covered Excess Amount
(the “Uncovered Excess Amount”), ROCHE shall pay the Uncovered Excess
Amount but only if the JSC approves such Uncovered Excess Amount.  ROCHE shall pay SYNTA any Covered Excess
Amount and, to the extent payable by ROCHE hereunder, any Uncovered Excess
Amount within [***] ([***]) days after receipt of an invoice from SYNTA
therefor, subject to the cap of $[***] for calendar year 2009.  For purposes of clarity, ROCHE’s obligation
under this Section 2.5.4 to pay SYNTA for Development Costs shall be
separate from, and in addition to, ROCHE’s obligation under Section 7.2 to
pay SYNTA for internal and external Research costs incurred by SYNTA under the
Research Plan.

 

2.6.          Manufacturing. 
Each Party shall be responsible for the Manufacture and supply of all
preclinical and clinical quantities of Collaboration Compounds Controlled by
such Party in accordance with the Research Plan and Development Plan until such
time as the Parties decide to transfer Manufacturing responsibility to ROCHE
pursuant to Section 2.7.

 

2.7.          Transfer of Responsibility to ROCHE.

 

2.7.1.       Development; Regulatory.  Subject to Section 2.4,  SYNTA shall transfer to ROCHE all Development
responsibility with respect to a Licensed Compound, on a Licensed
Compound-by-Licensed Compound basis, once the relevant Collaboration Compound
is designated a Licensed Compound or, if SYNTA is undertaking any Development
activities with respect to such Licensed Compound in accordance with Section 2.4,
once SYNTA’s activities with respect to a GLP Toxicology Study or Phase 1
Clinical Trials for such Licensed Compound are complete, in accordance with a
transition plan to be established by the Parties, including the transfer to
ROCHE of any IND or other regulatory filings with respect to such Licensed
Compound that are held by SYNTA in SYNTA’s name.  Notwithstanding the foregoing, for the First
Licensed Compound, such transition shall occur promptly following completion of
the first Phase 2a Clinical Trial, if such Clinical Trial is conducted by
SYNTA, or promptly following completion of Phase 1 Clinical Trials, if SYNTA
does not conduct the first Phase 2a Clinical Trial.  Each Party shall continue to use Commercially
Reasonable Efforts to perform critical Development activities which may be
assigned to such Party under the relevant Development Plan, in a manner
consistent with the transition plan, until the completion of such transfer of
Development responsibility to ROCHE.

 

2.7.2.       Manufacturing.  Unless otherwise agreed by the Parties,
concurrently with the transfer of all Development responsibility to ROCHE with
respect to a Licensed Compound pursuant to Section 2.7.1 above, (a) SYNTA
shall transfer to ROCHE, and ROCHE shall assume sole responsibility for, the
Manufacture of non-clinical, clinical and commercial quantities of such
Licensed Compound necessary for the Development and Commercialization of
Licensed Products in the Field in the Territory, at ROCHE’s sole cost and
expense, and (b) SYNTA shall provide to ROCHE reasonable technical
assistance, manufacturing and analytical Know-how, and material specifications
Controlled by SYNTA that are necessary for ROCHE, its Affiliate or a Third
Party manufacturer identified by ROCHE to Manufacture such Licensed Compound.

 

Portions
of this Exhibit were omitted and have been filed separately with the Secretary
of the Commission pursuant to the Company’s application requesting confidential
treatment under Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

 

18

 

2.7.3.       Technology Transfer.  If ROCHE requests that SYNTA provide ROCHE
with technical assistance in transferring technology required for the
manufacture of a Licensed Compound at a manufacturing facility, then SYNTA
shall provide for each such Licensed Compound one (1) visit of up to [***]
([***]) [***] in duration of one full time SYNTA employee’s time to provide such
services.  If ROCHE desires additional
technical assistance, then SYNTA, at its option, shall provide such assistance
and ROCHE shall compensate SYNTA on a time and materials basis at the FTE Rate
per eight (8) hour day.  Subject to
the foregoing, SYNTA shall assist
ROCHE, as
reasonably requested by ROCHE, in (a) causing the assignment to ROCHE of
any and all applicable Third Party manufacturing and supply agreements for such
Licensed Product, to the extent assignable and related to such Licensed Products,
or (b) transferring the manufacturing process for such Licensed Product to
ROCHE or to a Third Party contract manufacturer engaged by ROCHE.  Such assistance shall include assisting ROCHE
by providing reasonable technical and regulatory assistance and documentation
relating to the manufacture, testing and supply of such Licensed Product as
necessary for ROCHE to be qualified or to qualify a Third Party for the
manufacturing of such Licensed Product.  Promptly
after the transfer of all Development responsibility to
ROCHE with respect to a Licensed Compound pursuant to Section 2.7.1 above, SYNTA shall
deliver to ROCHE:  (i) [***]
([***]) [***] of all intermediates pure enough to calibrate analytical instruments, (ii) analytical
methods, (iii) batch records of the whole chemical synthesis, to the
extent they exist, (iv) safety investigation (RC1, DSC, ARC) reports (if
any) for relevant chemical steps, and (v) a list of key suppliers
including agreements (if any) and all respective lead times.

 

2.8.          Exchange of Information.  For so long as a Party is conducting Research
activities with respect to any Collaboration Compound or Development activities
with respect to any Licensed Compound hereunder, each Party shall regularly
provide the other Party, through the JRDC (if the JRDC remains in place), with
all material information, data and results relating to such Research and
Development activities.

 

2.9.          Recordkeeping. 
All Research and Development work conducted by either Party under the
Research Plan or Development Plan shall be completely and accurately recorded
in separate laboratory notebooks, in sufficient detail and in good scientific
manner appropriate for patent and regulatory purposes.  Upon reasonable advance notice, and at
reasonable intervals, each Party shall have the right to inspect and copy such
records of the other Party reflecting on work done under the Research Plan or
Development Plan, to the extent reasonably required to carry out its respective
obligations and to exercise its respective rights hereunder.

 

2.10.        Academic Collaborations; Subcontractors.  Subject to the oversight of the JRDC and,
with respect to clause (a) below, the approval of the JSC, either Party
may enter into one or more agreements, solely in furtherance of conducting
activities assigned to such Party under the Research Plan or Development Plan,
with (a) academic, research or other non-commercial institutions; or (b) subcontractors
(e.g., a Third Party providing pharmacology or other services); in each case
under clause (a) or (b), provided  that (i) such Party
shall use Commercially Reasonable Efforts to obtain ownership of any inventions
relevant to the Research and Development activities contemplated under the
Research Plan or Development Plan, or an exclusive license, or option to secure
an exclusive license, with the right to grant sublicenses to 

 

Portions
of this Exhibit were omitted and have been filed separately with the Secretary
of the Commission pursuant to the Company’s application requesting confidential
treatment under Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

 

19

 

the other Party, (ii) none
of the rights of the other Party hereunder are diminished or otherwise
adversely affected as a result of such subcontracting, and (iii) such
Third Party shall be bound to protect both Parties’ Confidential Information at
least as stringently as the confidentiality provisions set forth in Article IX
(subject to reasonable variations to Section 9.3.2 as may be required by
academic, research or other non-commercial institutions).

 

2.11.        Biological Samples. 
Subject to applicable Law and any restrictions or conditions imposed by
informed consents, institutional review boards, ethical committees or other
obligations to Third Parties, (a) as between the Parties, all biological
samples (i.e., blood and tissue samples) generated in connection with the
clinical Development activities set forth in this Agreement shall be owned by
ROCHE, and (b) if the Parties reasonably agree that such samples will no
longer be used, either at such time or in the foreseeable future thereafter,
for the Development of Licensed Compounds hereunder, ROCHE shall have the right
to use such samples for any purpose whatsoever and shall indemnify SYNTA and
all its related Indemnified Parties with respect to any Third Party claims
arising out of such use.

 

ARTICLE III -GOVERNANCE; DECISION-MAKING

 

3.1.          Joint Research and Development Committee.

 

3.1.1.       Formation and Membership.  Within twenty (20) Business Days after the
Effective Date, ROCHE and SYNTA shall establish a joint research and
development committee (the “JRDC”) comprised of an approximately equal
number of representatives of ROCHE and SYNTA, which number is recommended to be
between three (3) and five (5) representatives of each Party, and
each of whom shall have experience and seniority sufficient to enable him or
her to make day-to-day operational decisions on behalf of the Party he
represents.  Each Party may change any
one or more of its representatives to the JRDC at any time upon written notice
to the other Party.  SYNTA’s
participation on the JRDC after the expiration of the Research Term shall be at
SYNTA’s election.  From time to time, the
JRDC may, in its discretion, establish one or more project teams, or identify
project leaders from each Party, to, upon mutual agreement of the Parties,
implement and coordinate various aspects of the Research Plan and the
Development Plans or other elements of the collaboration hereunder, such as Manufacturing
technology transfer or coordination of patent prosecution matters as set forth
in Section 8.2.

 

3.1.2.       Administrative Matters.  The JRDC shall appoint a chairperson from
among its members, who shall rotate annually during the Research Term between
the representatives from SYNTA and the representatives from ROCHE, with the
first chairperson to be a representative of SYNTA.  After the Research Term, the chairperson of
the JRDC shall be from ROCHE.  The
chairperson shall be responsible for calling meetings of the JRDC and for
leading the meetings.  A JRDC member of
the chairing Party shall serve as secretary of such meetings.  The secretary shall promptly prepare and
distribute to all members of the JRDC draft minutes of the meeting for review
and comment, including a list of any actions or decisions approved by the JRDC,
with the goal of distributing final approved minutes of each JRDC meeting
within thirty (30) days after the meeting.

 

Portions
of this Exhibit were omitted and have been filed separately with the Secretary
of the Commission pursuant to the Company’s application requesting confidential
treatment under Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

 

20

 

3.1.3.       Alliance Managers.  Each Party shall appoint one of its designees
to serve as an alliance manager (“Alliance Manager”) with responsibility
for overseeing that the Parties’ activities are conducted in accordance with
this Agreement and the Research Plan and any Development Plan, and for being
the primary point of contact between the Parties with respect to such
activities.  The Alliance Manager is
responsible to drive the alliance progress and issue resolution between the
Parties.  The Alliance Managers will also
be members of the JSC, attend JSC meetings and be responsible for communicating
with and reporting to the JSC on all relevant matters.

 

3.1.4.       Decision Making.  Each Party shall have one (1) vote on
the JRDC.  Both Parties must vote in the
affirmative to allow the JRDC to take any action that requires the vote of the
JRDC.  Action on any matter may be taken
at a meeting, by teleconference or videoconference or by written agreement.  If the JRDC is unable to reach unanimous
agreement on any matter within its jurisdiction, then the matter shall be
referred to the JSC for resolution under Section 3.2.4.

 

3.1.5.       Meetings.

 

(a)                   The JRDC
shall meet at least once during each Calendar Quarter during the Research Term
and thereafter at least once per calendar half year for so long as the JRDC is
in force.  The location of JRDC meetings
shall be as agreed by the Parties, and may be held in person, alternating
locations between the Parties, or by telephone conference call or by
videoconference.

 

(b)                   Each Party
shall use reasonable efforts to cause its representatives to attend the
meetings of the JRDC.  If a Party’s
representative is unable to attend a meeting, such Party may designate an
alternate representative to attend such meeting in place of the absent
representative.  In addition, each Party
may, at its discretion, invite a reasonable number of additional employees,
and, with the consent of the other Party, consultants or scientific advisors,
to attend the meetings of the JRDC or the relevant portion thereof, provided
that any such consultants or scientific advisors are bound by written
obligations of confidentiality that are at least as stringent as those set
forth in this Agreement.

 

(c)                   Either Party
may also request that a special meeting of the JRDC be convened for the purpose
of resolving disputes in connection with, or for the purpose of reviewing or
making a decision pertaining to, the implementation of the Research Plan or
Development Plan by providing written notice to the other Party.  Such meeting shall be convened at such time
as may be mutually agreed upon by the Parties, but in any event shall be held
within fifteen (15) days after the date of such notice.

 

3.1.6.       Responsibilities.  Without limiting any of the foregoing, the
JRDC shall be responsible for:

 

Portions of this Exhibit were omitted and
have been filed separately with the Secretary of the Commission pursuant to the
Company’s application requesting confidential treatment under Rule 24b-2 of the
Securities Exchange Act of 1934, as amended.

 

21

 

(a)                   managing the
development and execution of the Research Plan and any Development Plans,
including developing, and recommending to the JSC for JSC approval, any
associated Research Plan budgets and Budgets of Development Costs;

 

(b)                   developing,
and recommending to the JSC for JSC approval, amendments to the Research Plan
and any Development Plan, including amendments to any associated Research Plan
budgets and Budgets of Development Costs;

 

(c)                   actively
participating in the initial assessment of all Collaboration Compound(s) and
providing strategic direction with respect to non-clinical and clinical
activities for Licensed Compounds;

 

(d)                   overseeing
the Research and Development of all Collaboration Compounds, including the
preparation of Collaboration Compounds for advancement into Development;

 

(e)                   overseeing
and advising on the technical development and clinical Manufacture of
Collaboration Compounds;

 

(f)                    overseeing
the preclinical and clinical Manufacture of Collaboration Compounds;

 

(g)                   overseeing
the progress of the Research Program and monitoring the Parties’ compliance
with their respective obligations under the Research Plan or any Development
Plan, including the accomplishment of key objectives;

 

(h)                   determining
whether a Licensed Compound nominated pursuant to Section 2.3.4(a) is
appropriate to be so nominated for advancement into Development leading up to a
GLP Toxicology Study and, if so, recommending such nomination to the JSC for JSC
approval;

 

(i)                    monitoring
any reports submitted by the Parties pursuant to the Research Plan or any
Development Plan;

 

(j)                    overseeing
the transfer of Development and Manufacturing responsibility from SYNTA to
ROCHE under Section 2.7; and

 

(k)                   performing
such other tasks and undertaking such other responsibilities as may be set
forth in this Agreement.

 

3.2.          Joint Steering Committee.

 

3.2.1.       Formation and Membership.  Within twenty (20) Business Days after the
Effective Date, ROCHE and SYNTA shall establish a joint steering committee (the
“JSC”) to review, coordinate and provide overall strategic direction to
their activities pursuant to the Research Plan and any Development Plan and, if
SYNTA exercises the Co-promotion Option, 

 

Portions of this Exhibit were omitted and
have been filed separately with the Secretary of the Commission pursuant to the
Company’s application requesting confidential treatment under Rule 24b-2 of the
Securities Exchange Act of 1934, as amended.

 

22

 

the promotion of the Co-promoted
Product(s).  The JSC shall be comprised
of approximately three (3) senior executives of ROCHE and three (3) senior
executives of SYNTA with appropriate levels of decision making authority.  In addition, the Alliance Manager will be a
member of the JSC.  Each Party may change
any one or more of its representatives to the JSC at any time upon written
notice to the other Party.  SYNTA’s
participation on the JSC after the end of the Research Term shall be at SYNTA’s
election.  From time to time, the JSC
may, in its discretion, establish one or more subcommittees or project teams to
oversee particular projects or activities, as the JSC deems necessary or
advisable.  No Executive Officer shall
serve on the JSC.

 

3.2.2.       Responsibilities.  The JSC shall be responsible for:

 

(a)                   reviewing
the initial Research Plan and the initial Development Plan, including any
associated budgets for the Research Plan and Budgets for the Development Plan;

 

(b)                   periodically
reviewing the Research Plan and any Development Plan and suggesting or
approving such amendments to the Research Plan or Development Plan as the JSC
deems appropriate, including budget amendments;

 

(c)                   approving
the criteria for advancement of Licensed Compounds into each stage of
Development;

 

(d)                   providing
overall strategic direction with respect to Research or Development activities
conducted under the Research Plan or Development Plan;

 

(e)                   overseeing
the JRDC and the Parties’ progress in the conduct of the Research Program and
in Research and Development activities hereunder;

 

(f)                    approving
the nomination of Licensed Compounds which have been recommended by the JRDC
for advancement into Development;

 

(g)                   receiving
updates (in accordance with Section 5.2) on ROCHE’s progress in the
Commercialization of Licensed Products;

 

(h)                   reviewing
and approving the initial Detailing plan (which shall be in accordance with Schedule
5.3), if SYNTA exercises the Co-promotion Option;

 

(i)                    periodically
reviewing the Detailing plans and approving such amendments to the Detailing
plans (which shall be in accordance with Schedule 5.3) as the JSC deems
appropriate, if SYNTA exercises the Co-promotion Option;

 

(j)                    serving as
a forum for communication between the Parties regarding other aspects of
Development or Commercialization matters relating to the Co-promoted
Product(s);

 

(k)                   attempting
to resolve disputes arising under this Agreement that are referred to the JSC
by the JRDC or either of the Parties;

 

Portions of this Exhibit were omitted and
have been filed separately with the Secretary of the Commission pursuant to the
Company’s application requesting confidential treatment under Rule 24b-2 of the
Securities Exchange Act of 1934, as amended.

 

23

 

(l)                    reviewing
Uncovered Excess Amounts and determining whether such Uncovered Excess Amounts
will be approved; and

 

(m)                  performing
such other tasks and undertaking such other responsibilities as may be set
forth in this Agreement.

 

3.2.3.       Administrative Matters.  The JSC shall appoint a chairperson from
among its members, who shall be from ROCHE. 
The Alliance Manager from ROCHE will work with the Chair, and may act as
the Chair, and work together with SYNTA’s Alliance Manager to develop JSC meeting
agendas.  The chairperson shall be
responsible for calling meetings of the JSC and for leading the meetings.  A JSC member of the chairing Party shall
serve as secretary of such meetings.  The
secretary shall promptly prepare and distribute to all members of the JSC draft
minutes of the meeting for review and comment, including a list of any actions
or decisions approved by the JSC, with the goal of distributing final approved
minutes of each JSC meeting within thirty (30) days after the meeting.

 

3.2.4.       Decision Making.  Each Party shall have one (1) vote on
the JSC.  Both Parties must vote in the
affirmative to allow the JSC to take any action that requires the vote of the
JSC.  Action on any matter may be taken
at a meeting, by teleconference, videoconference or by written agreement.  Either Party may convene a special meeting of
the JSC in accordance with Section 3.2.5(c) for the purpose of
resolving any disagreement at the JRDC level or other disputes within its
jurisdiction.  If the JSC is unable to
resolve any dispute, or unanimously agree on any other matter before it, such
dispute or other matter shall be referred to the Executive Officers pursuant to
Section 13.1.  If the Executive
Officers are unable to resolve the matter under Section 13.1, then [***], provided
that such activities are conducted in compliance with the terms and
conditions of this Agreement and with the Research Plan and Development Plans,
as applicable; provided,  further, that [***]; and provided,
further, that, certain decisions must be decided unanimously (or,
if not able to be decided unanimously, pursuant to Section 13.2
(Alternative Dispute Resolution)), in that [***]:

 

(a)                   Increase [***]
obligations or reduce [***] rights under this Agreement, including any
obligation to devote additional personnel or financial resources to a specific
activity or project,

 

(b)                   make any
amendments to any Research Plan or Development Plan which includes activities
by [***],

 

(c)                   determine
that the events required for the payment of development event payments have not
occurred,

 

(d)                   determine
that it has fulfilled any obligations under this Agreement or that [***] has
breached any obligation under this Agreement,

 

(e)                   unilaterally
make a decision that is expressly stated to require the mutual agreement of the
Parties, or

 

Portions of this Exhibit were omitted and
have been filed separately with the Secretary of the Commission pursuant to the
Company’s application requesting confidential treatment under Rule 24b-2 of the
Securities Exchange Act of 1934, as amended.

 

24

 

(f)                    otherwise
expand [***] rights or reduce [***] obligations under this Agreement.

 

3.2.5.       Meetings.

 

(a)                   The JSC
shall meet at least twice annually.  The
location of JSC meetings shall be as agreed by the Parties, and may be held in
person, alternating locations between the Parties, or by telephone conference
call or by videoconference.

 

(b)                   Each Party
shall use reasonable efforts to cause its representatives to attend the
meetings of the JSC.  In addition, each
Party may, at its discretion, invite a reasonable number of non-voting
employees, and, with the consent of the other Party, consultants or scientific
advisors, to attend meetings of the JSC or the relevant portion thereof; provided
that any such consultants or scientific advisors are bound by written
obligations of confidentiality that are at least as stringent as those set
forth in this Agreement.

 

(c)                   Either Party
may also request that a special meeting of the JSC be convened for the purpose
of resolving disputes in connection with, or for the purpose of reviewing or
making a decision pertaining to, any matter within the purview of the JSC by
providing written notice to the other Party. 
Such meeting shall be convened at such time as may be mutually agreed
upon by the Parties, but in any event shall be held within fifteen (15) days
after the date of such notice.

 

(d)                   At its
initial meeting, the JSC shall, among other things, (i) review the initial
Research Plan and the initial Development Plan, including any associated
budgets for the Research Plan and Budgets for the Development Plan, and (ii) discuss
the criteria for advancement of Licensed Compounds into the GLP Toxicology
Study stage of Development.

 

ARTICLE
IV -REGULATORY MATTERS

 

4.1.          Regulatory Filings.

 

4.1.1.       For any given Licensed Compound, subject
to Section 2.4.3, until such time as Development responsibility is
transferred to ROCHE pursuant to Section 2.7.1, (i) SYNTA shall be
responsible for preparing, filing and maintaining (a) the IND in its own
name with respect to such Licensed Compound and (b) any other regulatory
filings in its own name that are required in connection with the clinical
Development of such Licensed Compound; (ii) ROCHE shall provide SYNTA with
all reasonable assistance with respect to such filings and the conduct of
preclinical or clinical Development activities leading up to such filings in
accordance with the relevant Development Plan; (iii) SYNTA shall own and
maintain all such regulatory filings for such Licensed Compounds; and (iv) ROCHE
shall have a Right of Reference or Use to such regulatory filings to the extent
necessary for the conduct of ROCHE’s Development activities under this
Agreement.

 

4.1.2.       Except as provided in Section 4.1.1,
ROCHE shall own, and be responsible for preparing, filing, obtaining or
maintaining, all regulatory filings and Regulatory 

 

Portions of this Exhibit were omitted and
have been filed separately with the Secretary of the Commission pursuant to the
Company’s application requesting confidential treatment under Rule 24b-2 of the
Securities Exchange Act of 1934, as amended.

 

25

 

Approvals relating to Licensed Compounds and
Licensed Products in the Field in the Territory.  SYNTA shall have a Right of Reference or Use
to such regulatory filings to the extent necessary for the conduct of SYNTA’s
Development activities under this Agreement.

 

4.2.          Communications
with Regulatory Authorities.

 

4.2.1.       ROCHE shall keep SYNTA  informed on an ongoing basis through the JRDC
or JSC regarding its (or its Affiliate’s or Sublicensee’s) regulatory strategy,
planned regulatory submissions and material communications with Regulatory
Authorities in Major Markets with respect to all Licensed Compounds and
Licensed Products.  If, and to the extent
SYNTA is responsible for the filing of the IND and other regulatory filings
with respect to a Licensed Compound pursuant to Section 4.1.1, then the
obligations of ROCHE set forth in Sections 4.2.1 above shall apply to SYNTA, mutatis mutandis until such time as Development responsibility is transferred to ROCHE
pursuant to Section 2.7.1, except that such obligations shall apply with
regard to all countries of the Territory as opposed to just the Major Markets.

 

4.2.2.       In addition, ROCHE shall provide SYNTA
with reasonable advance notice of any material meeting or substantive telephone
conference with the FDA, MHLW or EMEA relating to any Licensed Compound or
Licensed Product.  SYNTA shall have the
right to attend and observe (but not participate actively in) any such material
meeting or material conference call with the FDA regarding any Licensed
Compound or Licensed Product under Development by ROCHE (or by its Affiliates
or Sublicensees).  In addition, ROCHE
shall promptly provide SYNTA with a copy of all material correspondence that
ROCHE (or its Affiliate or Sublicensee) receives from, or submits to, any
Regulatory Authority in the Major Markets (including contact reports concerning
conversations or substantive meetings, contact reports of all Regulatory
Authority interactions concerning conversations or substantive meetings, all
IND annual reports (including any equivalent filings outside the US), and cover
letters of all agency submissions, it being understood that SYNTA may request,
and shall then receive, copies of all attachments to any such cover letters)
relating to any Licensed Compound or Licensed Product.  ROCHE shall also provide SYNTA with any meeting
minutes that reflect material communications with any Regulatory Authority in
the Major Markets regarding a Licensed Compound or Licensed Product.

 

4.2.3.       Notwithstanding the foregoing, if, and to
the extent SYNTA is responsible for the filing of the IND and other regulatory
filings with respect to a Licensed Compound pursuant to Section 4.1.1, the
rights and obligations of ROCHE set forth in Sections 4.2.2 above shall apply
to SYNTA, mutatis mutandis until such time as Development
responsibility is transferred to ROCHE pursuant to Section 2.7.1.

 

Portions of this Exhibit were omitted and
have been filed separately with the Secretary of the Commission pursuant to the
Company’s application requesting confidential treatment under Rule 24b-2 of the
Securities Exchange Act of 1934, as amended.

 

26

 

4.3.          Pharmacovigilance.  The Parties agree that they will execute a
separate pharmacovigilance agreement, if legally required, specifying the
procedures and timeframes for compliance with the applicable Laws pertaining to
safety reporting of any Licensed Compound or Licensed Product and its related
activities.  Should the Parties determine
that it is appropriate to execute such a pharmacovigilance agreement, they
shall do so within a reasonable period of time following the Effective Date,
but no later than initiation of clinical activities by ROCHE.

 

ARTICLE
V - COMMERCIALIZATION; CO-PROMOTION

 

5.1.          General. 
Subject to SYNTA’s Co-promotion Option and the other terms and
conditions of this Agreement, ROCHE will have sole responsibility for the
Commercialization of Licensed Products in the Field in the Territory, including
all costs and expenses relating thereto.

 

5.2.          Commercialization Summary.  With respect to each Licensed Product
Developed pursuant to this Agreement, commencing with the calendar year in
which an application for Regulatory Approval is first filed with respect to
each such Licensed Product, and for each subsequent calendar year during next
[***] ([***]) years, ROCHE shall provide SYNTA, through the JSC (if the JSC
remains in place), for its review and comment, a written summary of the
Commercialization activities conducted in the Major Markets other than Japan
during the prior year and planned to be conducted in such upcoming year by or
on behalf of ROCHE and its Affiliates and Sublicensees with respect to such
Licensed Product in such countries. 
ROCHE shall consider in good faith the reasonable suggestions and
comments of SYNTA with respect to such summary.

 

5.3.          Co-promotion. 
Upon ROCHE’s decision to file an application for Regulatory Approval in
the United States of a Licensed Product for any Indication other than
rheumatoid arthritis (which decision is expected to occur at least [***]
([***]) [***] prior to filing any such application) (such decision, the “Commercialization
Decision”), ROCHE shall notify SYNTA in writing within twenty (20) Business
Days thereof.  For clarity, such
obligation of ROCHE to notify SYNTA of any Commercialization Decision shall
apply to all Licensed Products with respect to which the Commercialization
Decision is made.  On a Licensed
Product-by-Licensed Product basis, SYNTA shall have the right to participate in
the Co-promotion of any Licensed Product in the United States for the
applicable Indication (the “Co-promotion Option”).  SYNTA may exercise its Co-promotion Option by
providing written notice to ROCHE within [***] ([***]) [***] after receipt of
ROCHE’s Commercialization Decision notice, in which event the minimum terms set
forth on Schedule 5.3 shall apply.  If SYNTA does not exercise its Co-promotion
Option within such [***] ([***]) [***] period, then SYNTA shall have no further
right to elect to participate in the Co-promotion of such Licensed Product in
the United States for the applicable Indication; provided, however,
that the Co-promotion Option shall continue to apply to any and all subsequent
Licensed Products, and the failure of SYNTA to exercise its Co-promotion Option
with respect to any Licensed Product for any Indication shall not prevent or
waive SYNTA’s right to exercise its Co-promotion Option with respect to such
Licensed Product for any other Indication or with respect to any other Licensed
Product.

 

Portions of this Exhibit were omitted and
have been filed separately with the Secretary of the Commission pursuant to the
Company’s application requesting confidential treatment under Rule 24b-2 of the
Securities Exchange Act of 1934, as amended.

 

27

 

5.4.          Labeling.  In
the event of SYNTA’s Co-promotion of any Licensed Product in accordance with Section 5.3,
ROCHE shall include on all secondary packaging, literature, labels and other
printed matter for Licensed Products used in clinical Development or in
Commercialization, to the extent permitted by applicable Law, the SYNTA name
and logo so as to acknowledge that the Licensed Products were developed under
license from and together with SYNTA.

 

ARTICLE
VI — LICENSE GRANTS; EXCLUSIVITY

 

6.1.          Research Licenses.

 

6.1.1.       SYNTA hereby grants to ROCHE a co-exclusive
(with SYNTA to enable SYNTA to perform its obligations under the Research
Program during the Research Term), worldwide, paid-up right and license,
without the right to grant sublicenses (except in accordance with Section 6.4),
under the SYNTA Intellectual Property solely to enable ROCHE to perform ROCHE’s
obligations under the Research Program during the Research Term.

 

6.1.2.       ROCHE hereby grants to SYNTA a
co-exclusive (with ROCHE to enable ROCHE to perform its obligations under the
Research Program during the Research Term), worldwide, paid-up right and
license, without the right to grant sublicenses, other than to its Affiliates
(except in accordance with Section 6.4), under the ROCHE Intellectual
Property solely to enable SYNTA to perform its obligations under the Research
Program during the Research Term.

 

6.2.          Development and Commercialization License to ROCHE.  SYNTA hereby grants to ROCHE an exclusive
(even as to SYNTA), worldwide, royalty-bearing right and license, with the
right to grant sublicenses (solely in accordance with Section 6.4), under
the SYNTA Intellectual Property  to Develop,
Manufacture, have Manufactured, use, Commercialize and import Licensed
Compounds and Licensed Products in the Field in the Territory, provided  that
SYNTA shall retain rights sufficient to enable SYNTA to perform its Development
and Manufacturing obligations with respect to Licensed Compounds and Licensed
Products hereunder, and to participate in the Co-promotion of Co-promoted
Products pursuant to Section 5.3.

 

6.3.          Development and Commercialization License to SYNTA.  ROCHE hereby grants to SYNTA a co-exclusive
(with ROCHE), worldwide, royalty-free right and license, without the right to
grant sublicenses (except in accordance with Section 6.4), under the ROCHE
Intellectual Property  to Develop,
Manufacture, have Manufactured, use, Commercialize and import Licensed
Compounds and Licensed Products in the Field in the Territory, solely to the
extent necessary to enable SYNTA to perform its Development and Manufacturing
obligations with respect to Licensed Compounds and Licensed Products hereunder,
and to participate in the Co-promotion of Co-promoted Products pursuant to Section 5.3.

 

Portions of this Exhibit were omitted and
have been filed separately with the Secretary of the Commission pursuant to the
Company’s application requesting confidential treatment under Rule 24b-2 of the
Securities Exchange Act of 1934, as amended.

 

28

 

6.4.          Sublicensing Rights.

 

6.4.1.       ROCHE shall have the right to grant
sublicenses under the rights granted to it under Section 6.2 to its
Affiliates (with the right to sublicense) and to Third Parties (with no further
right to sublicense); provided, that in the Major Markets ROCHE shall
have the right to grant sublicenses under the rights granted to it under Section 6.2
to Third Parties only upon prior written consent of SYNTA, such consent not the
unreasonably withheld.  ROCHE shall
provide to SYNTA a fully-executed copy of any agreement (redacted as necessary
to protect confidential or commercially sensitive information) reflecting such
sublicense (a) promptly after the execution thereof if such sublicense
impacts upon one or more of the Major Markets, and (b) upon request by
SYNTA if such sublicense impacts upon any country other than a Major
Market.  If ROCHE grants a sublicense,
all of the terms and conditions of this Agreement shall apply to the
sublicensee to the same extent as they apply to ROCHE for all purposes of this
Agreement.  ROCHE assumes full
responsibility for the performance of all obligations so imposed on such
sublicensee and will itself pay and account to SYNTA for all payments due under
this Agreement by reason of operation of any such sublicense.

 

6.4.2.       SYNTA may not grant sublicenses under the
rights granted to it in Section 6.3 without the prior written consent of
ROCHE, except (a) to SYNTA’s Affiliates, and (b) to Third Parties
solely to the extent necessary to carry out SYNTA’s Research, Development or
Manufacturing obligations.  SYNTA shall
guarantee the performance of its Affiliates and Sublicensees with respect to
any sublicense granted pursuant to this Section 6.4.2.

 

6.5.          Rights Retained by the Parties.  Any rights of SYNTA or ROCHE, as the case may
be, not expressly granted to the other Party pursuant to this Agreement shall
be retained by such Party.  Without
limiting the generality of the foregoing, no right or license is granted to
ROCHE under the SYNTA Intellectual Property to Develop or Commercialize any
composition that is not a Licensed Compound or Licensed Product.

 

6.6.          Exclusivity. 
Each Party agrees that, during the Research Term this Agreement shall
serve as the exclusive means through which such Party and its Affiliates may, (i) either
alone or in collaboration with a Third Party, engage in the Research,
Development, Manufacture, or Commercialization of any compound which such Party
or its Affiliates knows or believes to be a CRAC Channel Inhibitor, or any
product containing such a compound in the Field in the Territory, or (ii) grant
a license to, or otherwise assist or contract with, any Third Party, to
Research, Develop, Manufacture, or Commercialize any compound which such Party
or its Affiliates knows or believes to be a CRAC Channel Inhibitor, or any
product containing such a compound in the Field in the Territory.

 

6.7.          Section 365(n) of the Bankruptcy Code.  All rights and licenses granted pursuant to
any section of this Agreement, including pursuant to Sections 6.1, 6.2 and 6.3,
are rights and licenses to “intellectual property” (as defined in Section 101(35A)
of title 11 of the United States  Code
(the “Bankruptcy Code”)).  Each
Party shall retain and may fully exercise all of its rights and elections under
the Bankruptcy Code.

 

Portions of this Exhibit were omitted and
have been filed separately with the Secretary of the Commission pursuant to the
Company’s application requesting confidential treatment under Rule 24b-2 of the
Securities Exchange Act of 1934, as amended.

 

29

 

ARTICLE VII -FINANCIAL
PROVISION; AUDIT RIGHTS

 

7.1.                              Initial License
Payment.  ROCHE will make a
non-refundable, non-creditable payment to SYNTA of sixteen million dollars
($16,000,000) within ten (10) Business Days after the Effective Date and
receipt of invoice from SYNTA.

 

7.2.                              Research
Funding.

 

7.2.1.                     FTE Funding.  In order to fund SYNTA’s Research activities
hereunder performed by SYNTA FTEs, ROCHE shall pay to SYNTA a total of nine
million dollars ($9,000,000), to be paid in eight (8) payments, each in
the amount of one million one hundred twenty-five thousand dollars
($1,125,000), each such payment due and payable [***] ([***]) days after the
later of (a) the first day of each Calendar Quarter, starting January 1,
2009, and (b) receipt by ROCHE of an invoice for such sum.

 

7.2.2.                     Third Party
Costs.  For the calendar year 2009,
ROCHE will reimburse SYNTA for the Third Party costs incurred by SYNTA under
the Research Plan, for which the budget is [***] dollars ($[***]).  For the calendar year 2010, ROCHE will
reimburse SYNTA for SYNTA’s Third Party costs incurred under the Research Plan,
for which the budget is [***] dollars ($[***]). 
Within thirty (30) days following the end of each Calendar Quarter
during the Research Term, SYNTA shall provide an accounting to ROCHE of the
Third Party costs SYNTA actually incurred under the Research Plan during such
Calendar Quarter.  Roche shall reimburse
SYNTA such amount up to the limits set forth in this paragraph 7.2.2, within
[***] ([***]) days after receipt of such accounting and an invoice for such
amount.  Any amounts in excess of the
limits in a given year shall be the responsibility of SYNTA.

 

7.3.                              Co-promotion
Activities.  If SYNTA
exercises its right to participate in the Co-promotion of one or more Licensed
Products in the United States pursuant to Section 5.3, then ROCHE shall
reimburse SYNTA for costs of such Co-promotion, as set forth on Schedule 5.3.

 

7.4.                              Development
Event Payments.  ROCHE shall
make the following non-refundable, non-creditable payments to SYNTA upon
achievement of any of the events set forth below with respect to any Licensed
Product:

 

Portions
of this Exhibit were omitted and have been filed separately with the Secretary
of the Commission pursuant to the Company’s application requesting confidential
treatment under Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

 

30

 

	
   

  	
   

  	
  Payment

  	
   

  
	
   

  	
   

  	
  (US$ millions)

  	
   

  
	
  Development Event

  	
   

  	
  First
  Indication

  to Achieve the

  Relevant

  Development

  Event

  	
   

  	
  Second

  Indication to

  Achieve the

  Relevant

  Development

  Event

  	
   

  	
  Third
  Indication

  to Achieve the

  Relevant

  Development

  Event

  	
   

  
	
  (a) 

  	
  Initiation of GLP Toxicology Study

  	
   

  	
  $

  	
  [***]

  	
   

  	
  n/a

  	
   

  	
  n/a

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (b)

  	
  Filing of an IND anywhere in the world

  	
   

  	
  $

  	
  [***]

  	
   

  	
  n/a

  	
   

  	
  n/a

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (c)

  	
  Initiation of a Phase 2a Clinical Trial

  	
   

  	
  $

  	
  [***]

  	
   

  	
  $

  	
  [***]

  	
   

  	
  $

  	
  [***]

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (d)

  	
  Initiation of a Phase 2b Clinical Trial

  	
   

  	
  $

  	
  [***]

  	
   

  	
  $

  	
  [***]

  	
   

  	
  $

  	
  [***]

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (e)

  	
  Initiation of a Phase 3 Clinical Trial

  	
   

  	
  $

  	
  [***]

  	
   

  	
  $

  	
  [***]

  	
   

  	
  $

  	
  [***]

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (f)

  	
  Filing of an NDA in the United States

  	
   

  	
  $

  	
  [***]

  	
   

  	
  $

  	
  [***]

  	
   

  	
  $

  	
  [***]

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (g)

  	
  Filing of an NDA in any Major EU Country (or with
  the EMEA)

  	
   

  	
  $

  	
  [***]

  	
   

  	
  $

  	
  [***]

  	
   

  	
  $

  	
  [***]

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (h)

  	
  Filing of an NDA in Japan

  	
   

  	
  $

  	
  [***]

  	
   

  	
  $

  	
  [***]

  	
   

  	
  $

  	
  [***]

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (i)

  	
  Regulatory Approval in the United States

  	
   

  	
  $

  	
  [***]

  	
   

  	
  $

  	
  [***]

  	
   

  	
  $

  	
  [***]

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (j)

  	
  Regulatory Approval in a Major EU Country (or by
  the EMEA)

  	
   

  	
  $

  	
  [***]

  	
   

  	
  $

  	
  [***]

  	
   

  	
  $

  	
  [***]

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (k)

  	
  Regulatory Approval in Japan

  	
   

  	
  $

  	
  [***]

  	
   

  	
  $

  	
  [***]

  	
   

  	
  $

  	
  [***]

  	
   

  

 

Each of the event payment amounts set forth
in the table above shall be paid (i) as set forth above upon the first
occurrence of such event, and (ii) at fifty percent (50%) of the amount 

 

Portions of this Exhibit
were omitted and have been filed separately with the Secretary of the
Commission pursuant to the Company’s application requesting confidential
treatment under Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

 

31

 

set forth above with respect
to each of the second and third occurrences of such event by another Licensed
Product.

 

For the sake of clarity (A) the same
Indication need not achieve each development event in a column (Example 1
below); (B) the same Licensed Product need not achieve each development
event in a row (Example 2 below); and (C) no payment shall be made with
respect to the occurrence of an event for which a payment had been made with
respect to the prior occurrence of the same event with the same Licensed
Product for the same Indication (Example 3 below).  By way of example,

 

·                  Example 1: 
If the first Initiation of a Phase 2a Clinical Trial is for Licensed
Product A in Indication rheumatoid arthritis, $[***] will be due (row (c),
first column times 100%).  If the second
Initiation of a Phase 2a Clinical Trial is for Licensed Product A in Indication
asthma, $[***] will be due (row (c), second column times 100%).  If the third Initiation of a Phase 2a
Clinical Trial is for Licensed Product B in Indication asthma, $[***] will be
due (row (c), first column times 50%).

 

·                  Example 2: 
If the first Initiation of a Phase 2a Clinical Trial is for Licensed
Product A in Indication rheumatoid arthritis, $[***] will be due (row (c),
first column times 100%).  If the second
Initiation of a Phase 2a Clinical Trial is for Licensed Product B in Indication
rheumatoid arthritis, $[***] will be due (row (c), first column times
50%).  If the third Initiation of a Phase
2a Clinical Trial is for Licensed Product B in Indication asthma, $[***] will
be due (row (c), second column times 100%).

 

·                  Example 3: 
If the first Initiation of a Phase 2a Clinical Trial is for Licensed
Product A in Indication rheumatoid arthritis, $[***] will be due (row (c),
first column times 100%).  If the second
(or subsequent) Initiation of a Phase 2a Clinical Trial is for Licensed Product
A in Indication rheumatoid arthritis, no milestone payment shall be due with
respect to such Initiation.

 

On a Licensed Product-by-Licensed Product
basis, the achievement of a development event in any of rows (f) through (k) shall
result in a simultaneous obligation to pay all payments in rows (a) through
(e) that had not been previously paid and which are in the same column as
the payment then to be made.  On a
Licensed Product-by-Licensed Product basis, and a country-by-country or regional
basis, the achievement of a development event in any of rows (i) through (k) shall
result in a simultaneous obligation to pay the relevant earlier milestone in
rows (f) through (h), as applicable, that had not previously been paid and
which are in the same column as the payment then to be made.

 

Upon achievement by or on behalf of ROCHE,
its Affiliates or Sublicensees of any of the foregoing development events,
ROCHE shall promptly (but in no event more than ten (10) Business Days
following achievement thereof) notify SYNTA and shall pay to SYNTA all 

 

Portions of this Exhibit
were omitted and have been filed separately with the Secretary of the
Commission pursuant to the Company’s application requesting confidential
treatment under Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

 

32

 

corresponding development
event payments within [***] ([***]) days after occurrence of the applicable
event and receipt of an invoice from SYNTA.

 

If SYNTA is the Party that achieves any of
the development events set forth above, SYNTA shall provide notice to ROCHE
promptly upon achievement of each such development event and shall deliver to
ROCHE an invoice for such event.  ROCHE
shall pay the applicable development event payment within [***] ([***]) days of
receipt of invoice therefor.

 

7.5.                              Sales Event
Payments.  In addition
to all other amounts payable under this Agreement, ROCHE shall make the
following non-refundable, non-creditable payments to SYNTA based on aggregate
worldwide annual (on a calendar year basis) Net Sales, on a Licensed
Product-by-Licensed Product basis for up to three (3) Licensed Products,
upon the first achievement of the events set forth below by each of such
Licensed Products:

 

	
  Sales Event

  	
   

  	
  Payments

  (in US$ millions)

  	
   

  
	
  (a)

  	
  Aggregate worldwide annual Net Sales of such
  Licensed Product reaches or exceeds $[***] (≥ $[***])

  	
   

  	
  $

  	
  [***]

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (b)

  	
  Aggregate worldwide annual Net Sales of such
  Licensed Product reaches or exceeds $[***] (≥ $[***])

  	
   

  	
  $

  	
  [***]

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (c)

  	
  Aggregate worldwide annual Net Sales of such
  Licensed Product reaches or exceeds $[***] (≥ $[***])

  	
   

  	
  $

  	
  [***]

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (d)

  	
  Aggregate worldwide annual Net Sales of such
  Licensed Product reaches or exceeds $[***] (≥ $[***])

  	
   

  	
  $

  	
  [***]

  	
   

  

 

For purposes of clarity, the sales event payments
set forth in this Section 7.5 shall be paid only once for each Licensed
Product, upon the first achievement of the applicable sales event.

 

Upon achievement by ROCHE, its Affiliates,
Sublicensees or ROCHE Entities of any of the foregoing sales events, ROCHE
shall promptly (but in no event more than thirty (30) days following
achievement thereof) notify SYNTA and shall pay to SYNTA the corresponding
sales event payment within [***] ([***])days after occurrence of the applicable
event and receipt of an invoice from SYNTA.

 

7.6.                              Licensed
Product Royalties.

 

7.6.1.                     ROCHE shall pay to SYNTA
royalties on the aggregate worldwide annual (on a calendar year basis) Net
Sales of each Licensed Product in the Territory, on a Licensed
Product-by-Licensed Product basis, as follows:

 

Portions of this Exhibit
were omitted and have been filed separately with the Secretary of the
Commission pursuant to the Company’s application requesting confidential
treatment under Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

 

33

 

	
  Aggregate Worldwide Annual Net
  Sales of Licensed Product

  	
   

  	
  Royalty Rate

  	
   

  
	
  (i)

  	
  First $[***]

  	
   

  	
  [***]

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (ii)

  	
  Portion above $[***] and up to and including
  $[***]

  	
   

  	
  [***]

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (iii)

  	
  Portion above $[***] and up to and including
  $[***]

  	
   

  	
  [***]

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (iv)

  	
  Portion above $[***]

  	
   

  	
  [***]

  	
  %

  

 

7.6.2.                     Applicability
of Royalty Rates to Net Sales in the Territory.  Royalties payable pursuant to this Section 7.6
shall be paid at the rate applicable to the portion of Net Sales within each of
the Net Sales levels during the applicable calendar year for such Licensed
Product.  For example, if, during a
calendar year, aggregate worldwide annual Net Sales of a particular Licensed
Product were equal to $[***], then the royalties payable by ROCHE would be
calculated by adding (i) the royalties with respect to the first $[***] at
the first-level percentage of [***] percent ([***]%) ($[***]), and (ii) the
royalties with respect to the next $[***] at the second-level percentage of
[***] percent ([***]%) ($[***]), for a total royalty of $[***].

 

7.6.3.                     Royalty Term
and Adjustments.

 

(a)                                                          ROCHE’s royalty
obligations to SYNTA pursuant to this Section 7.6 shall commence on a
country-by-country and Licensed Product-by-Licensed Product basis on the First
Commercial Sale in such country of such Licensed Product and shall expire on a
country-by-country basis and Licensed Product-by-Licensed Product basis on the
later of: (A) the expiration of the last Valid Claim of the SYNTA Patent
Rights, ROCHE Patent Rights and Joint Patent Rights Covering such Licensed
Product in such country, or (B) the [***] ([***]) anniversary of the date
of the First Commercial Sale of such Licensed Product in such country by or on
behalf of ROCHE or any of its Affiliates or Sublicensees to a Third Party who
is not a Sublicensee (the “Royalty Term”).  Thereafter, the licenses granted to ROCHE
shall be fully paid-up, royalty-free and non-exclusive with respect to such
Licensed Product in such country, on a Licensed Product-by-Licensed Product and
country-by-country basis.

 

(b)                                                         Notwithstanding
the foregoing, the royalty rate applicable to such Licensed Product sold in any
country in the Territory shall be reduced to [***] percent ([***]%) of the rate
otherwise payable pursuant to Section 7.6.1 above during any portion of
the Royalty Term when there is no Valid Claim of the SYNTA Patent Rights, ROCHE
Patent Rights or Joint Patent Rights Covering such Licensed Product in such
country; provided  that such reduction shall not apply if the
Licensed Product is entitled to Marketing Exclusivity  in such country and there is no Generic
Product on the market in such country.

 

7.6.4.                     Royalty
Adjustment in Case of Generic Competition.  If, during a given Calendar Quarter there is
Generic Competition with respect to a particular Licensed Product in a country
of the Territory, then the royalties on Net Sales of the affected Licensed
Product payable 

 

Portions of this Exhibit
were omitted and have been filed separately with the Secretary of the
Commission pursuant to the Company’s application requesting confidential
treatment under Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

 

34

 

pursuant to this Section 7.6 in such
country for such Calendar Quarter shall be reduced by [***] percent ([***]%) of
the amounts otherwise payable pursuant to Section 7.6.1.  For clarity, the determination of whether
there is Generic Competition with respect to a particular Licensed Product in a
country and, if so, the market share of such Generic Product(s) in such
country, shall be made on a Calendar Quarter-by-Calendar Quarter basis.  For example, if with respect to a particular
Licensed Product in a country there is Generic Competition with respect to such
Licensed Product in a Calendar Quarter then the applicable royalty reductions
set forth in this Section 7.6.4 shall apply for such Calendar Quarter, and
if, with respect to the same Licensed Product in the same country there is no
Generic Competition during any subsequent Calendar Quarter, then the royalty
reductions set forth in this Section 7.6.4 shall not be applicable in any
such subsequent Calendar Quarter. 
Notwithstanding any of the foregoing, if both deductions under Section 7.6.3
and this Section 7.6.4 apply for a Licensed Product in a given country,
then ROCHE may apply only one of the two deductions for such Licensed Product
in such country.

 

7.6.5.                     Third Party
Payments.  ROCHE shall
be responsible for obtaining, and paying or having paid any consideration owed
to any Third Party to license or otherwise secure and maintain, Third Party
Patent Rights necessary to manufacture or sell Licensed Products in the Field
in the Territory.  ROCHE shall have the
right to deduct a maximum of [***] percent ([***]%) of such royalties actually
paid to such Third Party with respect to such license to permit the manufacture
or sale of Licensed Product(s) in the Field in a country(ies), from
royalty payments otherwise due and payable by ROCHE to SYNTA under this
Agreement with respect to such Licensed Product(s) in such country(ies),
on a Licensed Product-by-Licensed Product and country-by-country basis; provided,
however, that (i) in no event shall the deduction permitted
by this Section 7.6.5 reduce the royalties payable to SYNTA with respect
to any such Licensed Product(s) in such country(ies) to less than [***]
percent ([***]%) of the royalties otherwise due after any deduction pursuant to
Section 7.6.3 or 7.6.4.

 

7.6.6.                     Limitation on
Aggregate Deduction.  In no event
shall the deductions permitted by Sections 7.6.3, 7.6.4 and this 7.6.5, in the
aggregate, reduce the royalties payable to SYNTA with respect to any such
Licensed Product(s) in such country(ies) to less than [***] percent ([***]%)
of the royalties otherwise due for such Licensed Product(s) in such
country(ies) pursuant to Section 7.6.1, on a Licensed Product-by-Licensed
Product and country-by-country basis.

 

7.7.                              Accounting and
Reporting.

 

7.7.1.                     Timing of
Payments.  ROCHE shall
calculate royalties on Net Sales quarterly as of March 31, June 30, September 30
and December 31 (each being the last day of an “Accounting Period”)
and shall pay royalties on Net Sales within [***] ([***]) days after the end of
each Accounting Period in which such Net Sales occur.

 

7.7.2.                     Late Payment.  Any payment under this Agreement that is not
paid on or before the date such payment is due shall bear interest, to the
extent permitted by applicable Law, at [***] above the average one-month London
Interbank Offered Rate (LIBOR), as reported by Reuters for time to time,
calculated on the number of days such payment is overdue.  In addition, 

 

Portions of this Exhibit
were omitted and have been filed separately with the Secretary of the
Commission pursuant to the Company’s application requesting confidential
treatment under Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

 

35

 

ROCHE shall reimburse SYNTA for all costs and
expenses, including attorneys’ fees and legal expenses, incurred in the
collection of late payments, provided  that the foregoing shall
not apply with respect to payments disputed in good faith by ROCHE unless SYNTA
is successful in such dispute or ROCHE ceases to dispute such payments.

 

7.7.3.                     Method of
Payment.  Royalties on Net Sales and all
other amounts payable by ROCHE hereunder shall be paid by or on behalf of ROCHE
in U.S. Dollars.  All payments due to
SYNTA hereunder shall be made directly from an account located in either (at
ROCHE’s option) the United States or Switzerland to account(s) designated
by SYNTA.

 

7.7.4.                     Currency
Conversion.  Whenever
calculating royalties requires conversion from any currency, ROCHE shall make
such conversion as follows:

 

(a)                                                          When
calculating the Net Sales for countries other than the United States, ROCHE
shall convert the amount of such sales in currencies other than Swiss Francs
into Swiss Francs using ROCHE’s then current standard practices actually used
on a consistent basis in preparing its audited financial statements.

 

(b)                                                         Upon converting
the amount of Adjusted Gross Sales into Swiss Francs, ROCHE shall convert into
US Dollars (or other currency), using the quarterly average rate (currently Reuters) at the last
working day for the applicable period.

 

7.7.5.                     Reporting.  With each payment ROCHE shall provide SYNTA
in writing for the relevant Calendar Quarter on a Licensed Product-by-Licensed
Product basis the following information with respect to each of the following
territories:  (1) the United States,
(2) the Major Markets (other than the United States) and Canada, and (3) all
territories other than those set forth in the foregoing clause (1) and
(2):

 

(a)                                                          Net Sales and
Adjusted Gross Sales;

 

(b)                                                         Adjustments
made pursuant to Section 7.6; and

 

(c)                                                          Total royalty
payable to SYNTA.

 

The report for the fourth Calendar Quarter shall
include a list of all countries in which a Licensed Product is sold in the
Territory for the applicable calendar year.

 

7.7.6.                     United States
Dollars.  All dollar ($) amounts
specified in this Agreement are United States dollar amounts.

 

7.7.7.                     Nonrefundable.  All payments made by ROCHE to SYNTA under
this Agreement shall be non-refundable and non-creditable, except as expressly
set forth in Sections 2.5.2(f), 2.5.4 and 7.9.2.

 

7.8.                              Taxes.  Any tax required to be withheld by ROCHE
under the Laws of any country for the account of SYNTA shall be promptly paid
by ROCHE for and on behalf of 

 

Portions of this Exhibit
were omitted and have been filed separately with the Secretary of the
Commission pursuant to the Company’s application requesting confidential
treatment under Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

 

36

 

SYNTA to the appropriate government authority,
and ROCHE shall furnish SYNTA with proof of payment of such tax.  Any such tax actually paid on SYNTA’s behalf
shall be deducted from royalty payments due to SYNTA hereunder.  ROCHE shall assist SYNTA in minimizing the
withholding taxes applicable to any payment made by ROCHE and in claiming tax
refunds at SYNTA’s request.

 

7.9.                              Auditing.

 

7.9.1.                     Audit Rights.

 

(a)                                                          ROCHE shall
keep, and shall require its Affiliates and Sublicensees to keep, for [***]
([***]) years, full, true and accurate books of account containing all
particulars that may be necessary for the purpose of calculating all royalties
and all other amounts payable under this Agreement.  Such books of accounts shall be kept at ROCHE’s
or the relevant Affiliate’s or Sublicensee’s principal place of business. At
the expense of SYNTA, SYNTA has the right to engage an independent, certified
public accountant reasonably acceptable to both Parties to perform, on behalf
of SYNTA, an audit of such books and records of ROCHE and its Affiliates and Sublicensees,
that are deemed necessary by such accountant to report on Net Sales of Licensed
Products for the period or periods requested by SYNTA and the correctness of
any report or payments made under this Agreement.  Such accountant shall not have the authority
to interpret this Agreement.

 

(b)                                                         Upon timely
request and at least [***] ([***]) days prior written notice from SYNTA, such
audit shall be conducted in the countries specifically requested by SYNTA,
during regular business hours in such a manner as to not unnecessarily
interfere with ROCHE’s normal business activities, and shall be limited to
results in the [***] ([***]) calendar years prior to audit notification.

 

(c)                                                          Such audit
shall not be performed more frequently than once per calendar year nor more
frequently than once with respect to records covering any specific period of
time.

 

(d)                                                         All
information, data and documents herein referred to shall be used only for the
purpose of verifying royalty statements, shall be treated as ROCHE Confidential
Information subject to the obligations of this Agreement and need neither be
retained more than the longer of one (1) year after completion of an audit
hereof, if an audit has been requested; nor more than [***] ([***]) years from
the end of the calendar year to which each shall pertain; nor more than [***]
([***])[***] after the date of termination of this Agreement.

 

(e)                                                          The final audit
report shall be shared by ROCHE and SYNTA.

 

7.9.2.                     Over- or
Underpayment.  If the
audit reveals an underpayment, ROCHE shall reimburse SYNTA for the amount of
the underpayment within [***] ([***]) days with interest as set forth in Section 7.7.2.  If the audit reveals an overpayment, ROCHE
shall have the right to credit the amount of such overpayment against the next
royalty payment payable to 

 

Portions of this Exhibit
were omitted and have been filed separately with the Secretary of the
Commission pursuant to the Company’s application requesting confidential
treatment under Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

 

37

 

SYNTA hereunder.  ROCHE shall pay for the audit costs if the
audit reveals that an underpayment of ROCHE exceeds [***] percent ([***]%).

 

7.9.3.                     Duration of
Audit Rights.  The failure
of SYNTA to request verification of any royalty calculation within the period
during which the corresponding records must be maintained under Section 7.9.1
will be deemed acceptance of the royalty payments and reports.

 

ARTICLE VIII -INTELLECTUAL
PROPERTY MATTERS

 

8.1.                              Know-How.

 

8.1.1.                  Ownership.  Each Party shall exclusively own all
inventions conceived or reduced to practice solely by employees, agents and
consultants of such Party or its Affiliates. 
The Parties shall jointly own all Joint Know-how, including all
inventions conceived or reduced to practice by one or more employees, agents or
consultants of SYNTA or any of its Affiliates, on the one hand, and one or more
employees, agents or consultants of ROCHE or any of its Affiliates, on the
other hand (“Joint Inventions”). 
Only following the end of the Research Term, each Party shall have the
right to use and license Joint Know-how and Joint Patent Rights to its
Affiliates or any Third Party, without the consent of or accounting to the
other Party, so long as such use or license is subject to the licenses granted
pursuant to this Agreement and is otherwise consistent with this Agreement.

 

8.1.2.                     Inventorship.  The determination of inventorship shall be
made in accordance with United States patent laws.

 

8.2.                              Prosecution and
Maintenance of Patent Rights.

 

8.2.1.                     Prosecution of
SYNTA Patent Rights.  SYNTA shall
have the first right to prepare, file, prosecute and maintain SYNTA Patent
Rights, [***].  ROCHE shall be given
access to all documentation, filings and communications to or from the
respective patent offices in connection with the prosecution and maintenance of
the SYNTA Patent Rights, at reasonable times and upon reasonable written
notice, which access shall only include review of said documents but not
receipt of copies thereof.  SYNTA shall
keep ROCHE informed of the status of all pending patent applications included
in the SYNTA Patent Rights, and ROCHE shall have the right to comment on the
prosecution of such pending patent applications and SYNTA, its agents and
attorneys will consider in good faith timely suggestions and comments of ROCHE
regarding any such activities.  SYNTA
shall not discontinue prosecution or maintenance of any SYNTA Patent Rights
(including selection of countries for foreign filing or entry into the PCT
National Stage) without at least [***] ([***]) prior written notice to
ROCHE.  If SYNTA decides to discontinue
prosecution or maintenance of any SYNTA Patent Rights, ROCHE shall have the
option to assume responsibility for prosecuting and maintaining such SYNTA
Patent Rights, at ROCHE’s sole expense, and in such case, except for a change
in responsibility for prosecuting and maintaining SYNTA Patent Rights under
this Section 8.2.1, no changes in ownership or licensing terms pertaining
to any SYNTA Patent Rights shall occur.

 

Portions of this Exhibit
were omitted and have been filed separately with the Secretary of the
Commission pursuant to the Company’s application requesting confidential
treatment under Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

 

38

 

8.2.2.       Prosecution of ROCHE Patent Rights.  ROCHE shall have the first right to prepare,
file, prosecute and maintain ROCHE Patent Rights, [***].  SYNTA shall have access to all documentation,
filings and communications to or from the respective patent offices in
connection with the prosecution and maintenance of the ROCHE Patent Rights, at
reasonable times and upon reasonable written notice, which access shall only
include review of said documents but not receipt of copies thereof.  ROCHE shall keep SYNTA informed of the status
of all pending patent applications included in the ROCHE Patent Rights that
pertain to any Collaboration Compound or Licensed Product, and SYNTA shall have
the right to comment on the prosecution of such pending patent applications and
ROCHE, its agents, and attorneys will consider in good faith timely suggestions
and comments of SYNTA regarding any such activities.  ROCHE shall not discontinue prosecution or
maintenance of any ROCHE Patent Rights (including selection of countries for
foreign filing or entry into the PCT National Stage) without at least [***]
([***]) prior written notice to SYNTA. 
If ROCHE decides to discontinue prosecution or maintenance of any ROCHE
Patent Rights that pertain to any Collaboration Compound, Licensed Compound or
Licensed Product, SYNTA shall have the option to continue to prosecute and
maintain such ROCHE Patent Rights, at SYNTA’s sole expense, and in such case,
except for a change in responsibility for prosecuting and maintaining the ROCHE
Patent Rights under this Section 8.2.2, no changes in ownership or
licensing terms pertaining to any ROCHE Patent Rights shall occur.

 

8.2.3.       Prosecution of Joint Patent Rights.  SYNTA shall be responsible for preparing,
filing, prosecuting, or maintaining Joint Patent Rights in appropriate
countries in the Territory.  The
out-of-pocket costs and expenses incurred to obtain, prosecute and maintain
Joint Patent Rights shall be [***]; provided  that [***] may
elect, at its sole discretion, on a country-by-country basis, to discontinue
paying such out-of-pocket expenses with respect to any Joint Patent Right and
in such case all licenses granted hereunder to [***] under any such Joint
Patent Right shall immediately terminate. 
SYNTA shall keep ROCHE informed of the status of all pending
applications disclosing Joint Inventions, and shall consider in good faith all
of ROCHE’s comments regarding any aspect of such patent prosecution.  SYNTA shall not discontinue prosecution or
maintenance of any Joint Patent Right without at least [***] ([***]) prior
written notice to ROCHE.  If SYNTA
decides to discontinue prosecution or maintenance of any Joint Patent Rights,
ROCHE shall have the option to continue to prosecute and maintain such Joint
Patent Rights, at ROCHE’s sole expense, and in such case, except for the change
in responsibility for prosecuting and maintaining Joint Patent Rights under
this Section 8.2.3, no changes in ownership or licensing terms pertaining
to any such Joint Patent Rights shall occur.

 

8.2.4.       Procedures.  If the Parties deem it appropriate, the
Parties may form a patent committee or elect to have the JRDC serve as a forum
for the communication between the Parties regarding the handling of such patent
prosecution matters as set forth in this Section 8.2.

 

8.2.5.       Payments.  Following the end of each Calendar Quarter,
the Party entitled to reimbursement pursuant to this Section 8.2 shall
provide to the other Party a reasonable accounting of the reimburseable
expenses incurred during such Calendar Quarter. 
Within sixty (60) days after receipt of an invoice therefor, the other
Party shall pay such reimburseable 

 

Portions of this Exhibit were omitted and
have been filed separately with the Secretary of the Commission pursuant to the
Company’s application requesting confidential treatment under Rule 24b-2 of the
Securities Exchange Act of 1934, as amended.

 

39

 

expenses.  The provisions of Section 2.5.2 shall
apply mutatis mutandis to each Party and such reimburseable
expenses.

 

8.2.6.       Patent Term Extensions.

 

(a)                      SYNTA and ROCHE shall
determine together whether to seek patent term extensions or supplemental
patent protection, including supplementary protection certificates, in any
country in the Territory in relation to the Licensed Products Covered by SYNTA
Patent Rights and Joint Patent Rights. 
SYNTA and ROCHE shall cooperate in connection with all such activities.

 

(b)                      Subject to Section 8.2.6(a),
ROCHE shall have the exclusive right to seek patent term extensions or
supplemental patent protection, including supplementary protection
certificates, in any country in the Territory in relation to the Licensed
Products Covered by ROCHE Patent Rights. 
SYNTA and ROCHE shall cooperate in connection with all such activities,
and ROCHE, its agents and attorneys will consider in good faith timely
suggestions and comments of SYNTA regarding any such activities, provided
that all final decisions under this Section 8.2.6(b) shall be
made by ROCHE.

 

8.3.          Third Party Infringement.

 

8.3.1.       Notice.  Each Party shall promptly report in writing
to the other Party during the Term any known or suspected (a) infringement
of any of the SYNTA Patent Rights, ROCHE Patent Rights or Joint Patent Rights,
or (b) unauthorized use or misappropriation of any of the SYNTA Know-how,
ROCHE Know-how, or Joint Know-how (each of (a) and (b), an “Infringement
Claim”) of which such Party becomes aware, and shall provide the other
Party with all available evidence supporting such known or suspected infringement
or unauthorized use or misappropriation.

 

8.3.2.       Right to Enforce the SYNTA
Intellectual Property.

 

(a)                      SYNTA shall have the first
right, but not the obligation, to initiate a suit or take other appropriate
action that it believes is reasonably required to protect (i.e., prevent or
abate actual or threatened infringement or misappropriation of) or otherwise
enforce the SYNTA Intellectual Property (other than Joint Intellectual
Property).  Any suit by SYNTA shall be
either in the name of SYNTA or its Affiliate, the name of ROCHE or its
Affiliate, or jointly by ROCHE, SYNTA and their respective Affiliates, as may
be required by applicable Law if the relevant court would otherwise lack
jurisdiction if such Party or its Affiliate were absent from such suit.  For this purpose, ROCHE agrees to be joined
as a party to the suit if so required and shall execute such legal papers and
cooperate in the prosecution of such suit as may be reasonably requested by
SYNTA, provided  that SYNTA shall promptly reimburse all
out-of-pocket expenses (including reasonable attorneys’ fees and expenses)
actually incurred by ROCHE in connection with such cooperation.

 

(b)                      If SYNTA does not initiate
a suit or take other appropriate action that it has the initial right to
initiate or take pursuant to Section 8.3.2(a), then ROCHE may, in its 

 

Portions of this Exhibit were omitted and
have been filed separately with the Secretary of the Commission pursuant to the
Company’s application requesting confidential treatment under Rule 24b-2 of the
Securities Exchange Act of 1934, as amended.

 

40

 

discretion, provide SYNTA
with notice of ROCHE’s intent to initiate a suit or take other appropriate
action.  If ROCHE provides such notice
and SYNTA does not initiate a suit or take such other appropriate action within
[***] ([***]) ([***] ([***]) in the case of a Paragraph IV Certification) after
receipt of such notice from ROCHE, then ROCHE shall have the right to initiate
a suit or take other appropriate action that it believes is reasonably required
to protect the SYNTA Intellectual Property solely owned by SYNTA; provided,
however,  that ROCHE shall not initiate a lawsuit or take other
enforcement action without first consulting with SYNTA.  Any suit by ROCHE shall be either in the name
of ROCHE or its Affiliate, the name of SYNTA or its Affiliate, or jointly by
ROCHE, SYNTA and their respective Affiliates, as may be required by applicable
Law if the relevant court would otherwise lack jurisdiction if such Party or
its Affiliate were absent from such suit. 
For this purpose, SYNTA agrees to be joined as a party to the suit if so
required and shall execute such legal papers and cooperate in the prosecution
of such suit as may be reasonably requested by ROCHE, provided that ROCHE shall promptly reimburse all out-of-pocket
expenses (including reasonable attorneys’ fees and expenses) actually incurred
by SYNTA in connection with such cooperation.

 

8.3.3.       Right to Enforce the ROCHE
Intellectual Property.

 

(a)                      ROCHE shall have the first
right, but not the obligation, to initiate a suit or take other appropriate
action that it believes is reasonably required to protect (i.e., prevent or
abate actual or threatened infringement or misappropriation of) or otherwise
enforce the ROCHE Intellectual Property (other than Joint Intellectual
Property).  Any suit by ROCHE shall be
either in the name of ROCHE or its Affiliate, the name of SYNTA or its
Affiliate, or jointly by ROCHE, SYNTA and their respective Affiliates, as may
be required by applicable Law if the relevant court would otherwise lack
jurisdiction if such Party or its Affiliate were absent from such suit.  For this purpose, SYNTA agrees to be joined
as a party to the suit if so required and shall execute such legal papers and
cooperate in the prosecution of such suit as may be reasonably requested by
ROCHE, provided  that ROCHE shall promptly reimburse all
out-of-pocket expenses (including reasonable attorneys’ fees and expenses)
actually incurred by SYNTA in connection with such cooperation.

 

(b)                      If ROCHE does not initiate
a suit or take other appropriate action that it has the initial right to
initiate or take pursuant to Section 8.3.3(a), then SYNTA may, in its
discretion, provide ROCHE with notice of SYNTA’s intent to initiate a suit or
take other appropriate action.  If SYNTA
provides such notice and ROCHE does not initiate a suit or take such other
appropriate action within [***] ([***]) ([***] ([***]) in the case of a
Paragraph IV Certification) after receipt of such notice from SYNTA, then SYNTA
shall have the right to initiate a suit or take other appropriate action that
it believes is reasonably required to protect the ROCHE Intellectual Property
solely owned by ROCHE; provided, however, that SYNTA shall
not initiate a lawsuit or take other enforcement action without first
consulting with ROCHE.  Any suit by SYNTA
shall be either in the name of SYNTA or its Affiliate, the name of ROCHE or its
Affiliate, or jointly by ROCHE, SYNTA and their respective Affiliates, as may
be required by applicable Law if the relevant court would otherwise lack
jurisdiction if such Party or its Affiliate were absent from such suit.  For this purpose, ROCHE agrees to be joined
as a party to the suit and shall execute such legal papers and cooperate in the
prosecution 

 

Portions of this Exhibit were omitted and
have been filed separately with the Secretary of the Commission pursuant to the
Company’s application requesting confidential treatment under Rule 24b-2 of the
Securities Exchange Act of 1934, as amended.

 

41

 

of such suit as may be
reasonably requested by SYNTA, provided that
SYNTA shall promptly reimburse all out-of-pocket expenses (including reasonable
attorneys’ fees and expenses) actually incurred by ROCHE in connection with
such cooperation.

 

8.3.4.       Right to Enforce the Joint Patent
Rights and Joint Know-how. 
Responsibility for protecting (i.e., preventing or abating actual or
threatened infringement or misappropriation of) or otherwise enforcing the
Joint Patent Rights and the Joint Know-how shall be determined in the same
manner as the SYNTA Patent Rights.  The
enforcing Party shall keep the other Party informed of the status of all
enforcement activities, and shall consider in good faith all comments of the
other Party regarding any aspect of such enforcement.  The enforcing Party shall not discontinue
enforcement of Joint Patent Right or Joint Know-how without providing prior written
notice to, and consultation with, the non-enforcing Party.

 

8.3.5.       Conduct of Certain Actions; Costs.  The Party initiating suit shall have the sole
and exclusive right to select counsel for any suit initiated by it pursuant to Section 8.3.2,
8.3.3 or 8.3.4.  The initiating Party
shall assume and pay all of its own out-of-pocket costs incurred in connection
with any litigation or proceedings initiated by it pursuant to Section 8.3.2,
8.3.3 or 8.3.4, including the fees and expenses of the legal counsel selected
by it.  The other Party shall have the
right to participate and be represented in any such suit by the initiating
Party’s counsel, or by its own legal counsel at its own expense.

 

8.3.6.       Recoveries.  If ROCHE assumes control over any suit in
response to any Infringement Claim, SYNTA shall be entitled, at its option, to (a) treat
as Net Sales or (b) receive  [***] percent
([***]%) of, any damages, settlements, accounts of profits, or other financial
compensation recovered by ROCHE from a Third Party based upon any suit
initiated by ROCHE in response to such Infringement Claim after deducting ROCHE’s
actual out-of-pocket expenses (including reasonable attorneys’ fees and
expenses) incurred in pursuing such Infringement Claim, and ROCHE may retain
the balance.  If SYNTA assumes control
over any suit in response to any Infringement Claim, ROCHE shall be entitled to
receive [***] percent ([***]%) of any damages, settlements, accounts of
profits, or other financial compensation recovered from a Third Party based
upon such suit in response to any such Infringement Claim after deducting SYNTA’s
actual out-of-pocket expenses (including reasonable attorneys’ fees and
expenses) incurred in pursuing such suit in response to such Infringement
Claim, and SYNTA may retain the balance.

 

8.4.          Patent Invalidity Claim.  Each of the Parties shall promptly notify the
other in the event of any legal or administrative action by any Third Party
against a ROCHE Patent Right, SYNTA Patent Right or Joint Patent Right, of
which it becomes aware, including any nullity, revocation, reexamination or
compulsory license proceeding or, in accordance with Section 8.6, any
Paragraph IV Certification.  ROCHE shall
have the first right, but not the obligation, to defend against any such action
or Paragraph IV Certification involving a ROCHE Patent Right, in its own name,
and the costs of any such defense shall be at ROCHE’s expense.  SYNTA shall have the first right, but not the
obligation, to defend against any such action or Paragraph IV Certification
involving a SYNTA Patent Right or Joint Patent Right, in its own name, and the
costs of any such defense shall be at SYNTA’s expense.  The non-initiating Party, upon request 

 

Portions of this Exhibit were omitted and
have been filed separately with the Secretary of the Commission pursuant to the
Company’s application requesting confidential treatment under Rule 24b-2 of the
Securities Exchange Act of 1934, as amended.

 

42

 

of the initiating Party,
agrees to join in any such action and to cooperate reasonably with the
initiating Party, provided  that the initiating Party shall
promptly reimburse all out-of-pocket expenses (including reasonable counsel
fees and expenses) actually incurred by the non-initiating Party in connection
with such cooperation.  If the initiating
Party does not defend against any such action, then the non-initiating Party
shall have the right, but not the obligation, to defend such action and any
such defense shall be at the non-initiating Party’s expense.

 

8.5.          Patent Marking. 
ROCHE shall comply with the patent marking statutes in each country in
which the Licensed Product is sold by ROCHE, its Affiliates, or its
Sublicensees.

 

8.6.          Certification Under Drug Price Competition and Patent
Restoration Act.  If a Party becomes
aware of any certification filed pursuant to 21 U.S.C. §355(b)(2)(A)(iv) or
355(j)(2)(A)(vii)(IV), or any notice under any future analogous provisions of
United States Law relating to regulation or approval of pharmaceutical products
(or any amendment or successor statute thereto), or any comparable Law under
any other jurisdiction, claiming that any SYNTA Patent Right, ROCHE Patent
Right or Joint Patent Right, in each case Covering a Licensed Product in the
Field, is invalid or otherwise unenforceable, or that infringement will not
arise from the manufacture, use, import or sale or offer of sale of a product
by a Third Party (a “Paragraph IV Certification”), such Party shall
promptly notify the other Party in writing within three (3) Business Days
after its receipt thereof.

 

8.7.          Cooperation. 
SYNTA and ROCHE shall reasonably cooperate in the prosecution,
procurement, maintenance and enforcement of all SYNTA Patent Rights, ROCHE
Patent Rights and Joint Patent Rights. 
Such cooperation may include assistance by either Party and its
respective Affiliates, employees, agents, consultants and designees in
formulating responses to official actions received from the United States
Patent and Trademark Office and foreign patent offices, signing documents in connection
with the prosecution, maintenance and enforcement of such Patent Rights and
taking steps to perfect title in such Patent Rights.  No Party may, without obtaining the prior
written consent of such other Party, settle or compromise any claim or proceeding
relating to the Joint Know-how, Joint Patent Rights or the other Party’s
solely-owned Patent Rights or Know-how.

 

ARTICLE IX -CONFIDENTIAL INFORMATION

 

9.1.          Treatment of Confidential Information.  During the Term and for [***] ([***]) [***]
thereafter, each Party shall maintain Confidential Information of the other
Party in confidence, and shall not disclose, divulge, or otherwise communicate
such Confidential Information to others or use it for any purpose other than in
performance of its obligations or exercise of its rights pursuant to this
Agreement, except that each Party may disclose such Confidential Information to
its agents, directors, officers, employees, consultants, subcontractors,
Affiliates and advisors (collectively, “Agents”) under written
obligations of confidentiality at least as stringent as the confidentiality
provisions set forth in this Article IX and with a need to know such
information to perform such obligations or exercise such rights on behalf of
the disclosing Party.  Each Party shall
exercise efforts that are at least as diligent as those generally used by such
Party in protecting its own confidential and proprietary information (but no
less 

 

Portions of this Exhibit were omitted and
have been filed separately with the Secretary of the Commission pursuant to the
Company’s application requesting confidential treatment under Rule 24b-2 of the
Securities Exchange Act of 1934, as amended.

 

43

 

than reasonable efforts), to
prevent and restrain the unauthorized disclosure or use of such Confidential
Information by any of its Agents.  Each
Party will be responsible for a breach of this Article IX by its
Agents.  For clarity, either Party may
disclose Confidential Information of the other Party (a) to Regulatory
Authorities, to the extent necessary to obtain or maintain INDs or Regulatory
Approvals for any Licensed Product as permitted under this Agreement; (b) to
outside consultants, scientific advisory boards, managed care organizations,
and non-clinical and clinical investigators (in each case, other than ROCHE
Entities which are not then Affiliates hereunder) to the extent necessary to
Research, Develop or Commercialize any Collaboration Compound or Licensed
Product, provided  that such Party shall obtain confidentiality
obligations from such Third Parties at least as stringent as the
confidentiality provisions set forth in this ARTICLE IX; and (c) to the
extent necessary to prosecute and enforce ROCHE Patent Rights, SYNTA Patent
Rights or Joint Patent Rights; in each of the foregoing cases, solely to the
extent applicable to such Party’s activities under this Agreement.  For clarity, ROCHE may disclose Confidential
Information of SYNTA to Chugai, solely to the extent necessary for Chugai to be
able to determine whether to Develop or Commercialize any Licensed Compound or
Licensed Product on ROCHE’s behalf hereunder, provided that ROCHE shall
obtain confidentiality obligations from Chugai at least as stringent as the
confidentiality provisions set forth in this ARTICLE IX.

 

9.2.          Exceptions. 
Notwithstanding the foregoing, the receiving Party’s obligations under Section 9.1
shall not apply to any Confidential Information that, as shown by competent
evidence:

 

9.2.1.       either before or after the date of the
disclosure to the receiving Party is lawfully disclosed to the receiving Party
by Third Parties without any violation of any obligation to the other Party; or

 

9.2.2.       either before or after the date of the
disclosure to the receiving Party, becomes published or generally known to the
public through no fault or omission on the part of the receiving Party or its
Agents; or

 

9.2.3.       is independently developed by or for the
receiving Party without reference to or reliance upon the other Party’s Confidential
Information as demonstrated by contemporaneous written records of the receiving
Party; or

 

9.2.4.       is required to be disclosed by the
receiving Party to comply with applicable Laws or legal process, including the rules or
regulations of the U.S. Securities and Exchange Commission, or similar
regulatory agency in any country other than the United States, or of any stock
exchange, including Nasdaq, or to defend or prosecute litigation, provided
that the receiving Party promptly provides prior notice to the extent
practicable of such disclosure to the other Party and uses reasonable efforts
to avoid or minimize the degree of such disclosure.

 

9.3.          Publication Rights.  During the Term of this Agreement,
the following restrictions shall apply with respect to disclosure by any Party
of the other Party’s Confidential Information 

 

Portions of this Exhibit were omitted and
have been filed separately with the Secretary of the Commission pursuant to the
Company’s application requesting confidential treatment under Rule 24b-2 of the
Securities Exchange Act of 1934, as amended.

 

44

 

relating to Collaboration
Compounds, Licensed Compounds or the Licensed Product in any publication or
presentation:

 

9.3.1.       Clinical Trial Registries.  Both Parties acknowledge that it is their
policy for the Clinical Trials with respect to the Licensed Products and
results thereof to be registered and published in accordance with their
internal guidelines.  ROCHE, in
accordance with its internal policies and procedures, shall have the right to
publish all Clinical Trials with respect to the Licensed Products and results
thereof on the clinical trial registries which are maintained by or on behalf
of ROCHE.  SYNTA shall not publish any Clinical
Trials with respect to the Licensed Products or results thereof on its clinical
trial registry; provided, however, that ROCHE’s clinical trial
registry can be accessed via a link from SYNTA’s clinical trial registry; and provided,
further, that SYNTA shall be permitted, in accordance with applicable
Law, to post Clinical Trial information with respect to the Licensed Products
on clinicaltrials.gov or any other mandated registry.

 

9.3.2.       Publication.  A Party (the “Publishing Party”) shall
provide the other Party with a copy of any proposed publication or presentation
at least [***] ([***]) [***] (or at least [***] ([***]) [***] in the case of
abstracts or oral presentations) prior to submission for publication by the
Publishing Party or its Affiliates so as to provide such other Party with an
opportunity to recommend any changes it reasonably believes are necessary to
continue to maintain the Confidential Information disclosed by the other Party
to the Publishing Party in accordance with the requirements of this
Agreement.  The incorporation of such
recommended changes shall not be unreasonably refused; and if such other Party
notifies (“Notice”) the Publishing Party in writing, within [***]
([***]) [***] after receipt of the copy of the proposed publication or
presentation (or at least [***] ([***]) [***] in the case of oral
presentations), that such publication or presentation in its reasonable
judgment (a) contains an invention, solely or jointly conceived or reduced
to practice by the other Party, for which the other Party reasonably desires to
obtain patent protection or (b) could be expected to have a material
adverse effect on the commercial value of any Confidential Information
disclosed by the other Party to the Publishing Party, the Publishing Party
shall prevent such publication or delay such publication for a mutually
agreeable period of time.  In the case of
inventions, a delay shall be for a period reasonably sufficient to permit the
timely preparation and filing of a patent application(s) on such
invention, and in no event less than [***] ([***]) [***] from the date of the
Notice.  In the case of Confidential
Information, any of the non-publishing Party’s Confidential Information shall
be deleted as requested.

 

9.3.3.       Confidential Information in Patents.  Nothing in this Agreement shall prevent
either Party from filing or prosecuting a patent application or its resulting
patents related to a Licensed Product; provided, that such Party is in
compliance with Sections 8.2 and 9.1(c).

 

9.3.4.       Return of Confidential Information.  Upon the expiration or termination of this
Agreement, the receiving Party shall return to the disclosing Party or, at the
disclosing Party’s request, destroy all Confidential Information received from
the disclosing Party and all copies and reproductions thereof.  Notwithstanding the foregoing, (a) the
receiving Party’s legal counsel may retain one copy of the disclosing Party’s
Confidential Information for archival 

 

Portions of this Exhibit were omitted and
have been filed separately with the Secretary of the Commission pursuant to the
Company’s application requesting confidential treatment under Rule 24b-2 of the
Securities Exchange Act of 1934, as amended.

 

45

 

purposes, and (b) the
receiving Party may retain one copy of the disclosing Party’s Confidential
Information solely to the extent necessary to exercise the rights and licenses
of the receiving Party expressly surviving expiration or termination of this
Agreement. Notwithstanding the return or destruction of the disclosing Party’s
Confidential Information, the receiving Party shall continue to be bound by its
obligations of confidentiality and other obligations under this Article IX.

 

ARTICLE X -REPRESENTATIONS, WARRANTIES AND COVENANTS

 

10.1.        Mutual Representations.  Each Party hereby represents and warrants to
the other Party as of the Execution Date as follows:

 

10.1.1.     It is duly organized and validly existing
under the Laws of its jurisdiction of incorporation and has the corporate power
and authority to execute and deliver this Agreement and to perform its
obligations hereunder.

 

10.1.2.     The execution, delivery and performance of
this Agreement by such Party has been duly and validly authorized and approved
by proper corporate action on the part of such Party.  It has taken all other action required by
applicable Law, its certificate of incorporation or by-laws or any agreement to
which it is a party or by which it or its assets are bound, to authorize such
execution, delivery and performance. 
Assuming due authorization, execution and delivery on the part of the
other Party, this Agreement constitutes a legal, valid and binding obligation
of such Party.

 

10.1.3.     The execution and delivery of this
Agreement, and the performance of this as contemplated hereunder, by such Party
will not violate any applicable Law.

 

10.1.4.     Neither the execution and delivery of this
Agreement nor the performance hereof by such Party requires such Party to
obtain any permit, authorization or consent from any governmental authority or
from any other Person, and such execution, delivery and performance by such
Party will not result in the breach of or give rise to any conflict,
termination of, rescission, renegotiation or acceleration under or trigger any
other rights under any agreement or contract to which such Party may be a party
existing as of the Execution Date, except any that would not, individually or
in the aggregate, reasonably be expected to adversely affect the other Party’s
rights under this Agreement or the ability of such Party to perform its
obligations under this Agreement.

 

10.2.        SYNTA’s Representations.  SYNTA hereby represents and warrants to ROCHE
as of the Execution Date as follows:

 

10.2.1.     To SYNTA’s knowledge, SYNTA has not, up
through and including the Execution Date, intentionally withheld any material
information requested by ROCHE in connection with ROCHE’s due diligence
relating to the subject matter of this Agreement and the underlying
transaction, and, when provided, the information related to Collaboration
Compounds that SYNTA provided to ROCHE prior to the Execution Date was
up-to-date, timely and accurate in all material respects.

 

Portions of this Exhibit were omitted and
have been filed separately with the Secretary of the Commission pursuant to the
Company’s application requesting confidential treatment under Rule 24b-2 of the
Securities Exchange Act of 1934, as amended.

 

46

 

10.2.2.     SYNTA has the right to grant to ROCHE the
rights and licenses described hereunder.

 

10.2.3.     To SYNTA’s knowledge, Exhibit A
is a complete and correct list of all SYNTA Patent Rights in the Territory that
Cover the Collaboration Compounds Controlled by SYNTA as of the Execution Date.

 

10.2.4.     To SYNTA’s knowledge, no Third Party is
infringing any of the SYNTA Patent Rights identified on Exhibit A.

 

10.2.5.     To SYNTA’s knowledge, the making, using or
selling of [***] as contemplated under this Agreement will not infringe any
Third Party patent rights that exist as of the Execution Date.

 

10.3.        ROCHE’s Representations.  ROCHE hereby represents and warrants to SYNTA
as of the Execution Date as follows:

 

10.3.1.     ROCHE has the right to grant to SYNTA the
rights and licenses described hereunder.

 

10.3.2.     To ROCHE’s knowledge, there are no ROCHE
Patent Rights in the Territory that Cover the Collaboration Compounds
Controlled by ROCHE as of the Execution Date.

 

10.4.        Covenants of the Parties.

 

10.4.1.     Each of ROCHE and SYNTA shall require by
written agreement that all of its personnel, employees, and agents involved in
the Research, Development, Manufacture or Commercialization of Collaboration
Compounds or Licensed Products have entered into confidentiality and invention
assignment agreements that are consistent with the terms of this Agreement and
shall be obligated to assign any rights they may have in any inventions made
during such work to ROCHE or SYNTA, respectively.

 

10.4.2.     Each Party and its Affiliates shall
conduct, and shall use Commercially Reasonable Efforts to cause its
Sublicensees, contractors, and consultants to conduct, all of its activities
contemplated under this Agreement in accordance with all applicable Laws of the
country in which such activities are conducted.

 

10.5.        No Warranty. 
EXCEPT AS OTHERWISE EXPRESSLY SET FORTH IN THIS AGREEMENT, NEITHER PARTY
HERETO MAKES ANY REPRESENTATION AND EXTENDS NO WARRANTY OF ANY KIND, EITHER
EXPRESS, IMPLIED, STATUTORY OR OTHERWISE, WITH RESPECT TO THE SUBJECT MATTER OF
THIS AGREEMENT (INCLUDING ANY COLLABORATION COMPOUND OR LICENSED PRODUCT),
INCLUDING ANY WARRANTY OF MERCHANTABILITY, NONINFRINGEMENT, OR FITNESS FOR A
PARTICULAR PURPOSE.

 

Portions of this Exhibit were omitted and
have been filed separately with the Secretary of the Commission pursuant to the
Company’s application requesting confidential treatment under Rule 24b-2 of the
Securities Exchange Act of 1934, as amended.

 

47

 

ARTICLE XI -INDEMNIFICATION

 

11.1.                     Indemnification
by ROCHE.  ROCHE shall
indemnify, hold harmless and defend SYNTA, its Affiliates and their respective
directors, officers, employees and agents from and against any and all losses,
expenses, cost of defense (including reasonable attorneys’ fees, witness fees,
damages, judgments, fines and amounts paid in settlement) and any amounts SYNTA
becomes legally obligated to pay because of any claim or claims against it, to
the extent that such claim or claims arise out of (a) the Research,
Development, Manufacture, Commercialization, use or importation of Licensed
Compounds or Licensed Products by or on behalf of ROCHE, its Affiliates or
Sublicensees (including product liability claims), (b) the breach of any
of ROCHE’s representations or warranties hereunder, or (c) any
infringement of any Third Party Patent Rights or misappropriation of any Third
Party Know-How in connection with the Development, Manufacture,
Commercialization, use or import of any Licensed Compounds or Licensed
Products, in all cases except to the extent such losses, expenses, costs and
amounts are due to the gross negligence or willful misconduct of SYNTA or
breach of any of SYNTA’s representations and warranties hereunder.

 

11.2.                     Indemnification
by SYNTA.  SYNTA shall
indemnify, hold harmless and defend ROCHE, its Affiliates and their respective
directors, officers, employees and agents from and against any and all losses,
expenses, cost of defense (including reasonable attorneys’ fees, witness fees,
damages, judgments, fines and amounts paid in settlement) and any amounts ROCHE
becomes legally obligated to pay because of any claim or claims against it, to
the extent that such claim or claims arise out of the breach of any of SYNTA’s
representations or warranties hereunder, in all cases except to the extent such
losses, expenses, costs and amounts are due to the gross negligence or willful
misconduct of ROCHE or breach of any of ROCHE’s representations and warranties
hereunder.

 

11.3.                     Procedure.  In the event of a claim by a Third Party
against any Person entitled to indemnification under this Agreement (in such
capacity, the “Indemnified Party”), the Indemnified Party shall promptly
notify the other Party (in such capacity, the “Indemnifying Party”) in
writing of the claim (it being understood that the failure by the Indemnified
Party to give prompt notice of a Third Party claim as provided in this Section 11.3
shall not relieve the Indemnifying Party of its indemnification obligation
under this Agreement except and only to the extent that such Indemnifying Party
is actually prejudiced as a result of such failure to give prompt notice).
Within [***] ([***]) days after delivery of such notification, the Indemnifying
Party may, upon written notice thereof to the Indemnified Party, undertake and
solely manage and control, at its sole expense and with counsel reasonably
satisfactory to the Indemnified Party, the defense of the claim. If the
Indemnifying Party does not undertake such defense, the Indemnified Party shall
control such defense.  The Party not
controlling such defense shall cooperate with the other Party and may, at its
option and expense, participate in such defense, provided  that if
the Indemnifying Party assumes control of such defense and the Indemnified
Party in good faith concludes, based on advice from counsel, that the
Indemnifying Party and the Indemnified Party have conflicting interests with
respect to such action, suit, proceeding or claim, the Indemnifying Party shall
be responsible for the reasonable fees and expenses of counsel to the
Indemnified Party solely in connection therewith.  The Party controlling such defense shall 

 

Portions of this Exhibit were omitted and
have been filed separately with the Secretary of the Commission pursuant to the
Company’s application requesting confidential treatment under Rule 24b-2 of the
Securities Exchange Act of 1934, as amended.

 

48

 

keep the other Party advised of the status of
such action, suit, proceeding or claim and the defense thereof and shall
consider recommendations made by the other Party with respect thereto.  The Indemnifying Party shall not be liable
for any litigation costs or expenses incurred by the Indemnified Party without
the Indemnifying Party’s written consent. The Indemnified Party shall not
settle any such action, suit, proceeding or claim without the prior written
consent of the Indemnifying Party, which shall not be unreasonably withheld,
delayed or conditioned.  Without the
prior written consent of the Indemnified Party, the Indemnifying Party shall
not settle any such action, suit, proceeding or claim, or consent to any
judgment in respect thereof, that does not include a complete and unconditional
release of the Indemnified Party from all liability with respect thereto, that
imposes any liability or obligation on the Indemnified Party or that
acknowledges fault by the Indemnified Party.

 

11.4.                     Insurance.  Each Party shall maintain appropriate product
liability insurance (or self-insurance) with respect to its Research,
Development, Manufacture and Commercialization activities hereunder in such
amount as such Party customarily maintains with respect to its other products
for similar patient populations and commercial markets.  Each Party shall maintain such insurance for
so long as it continues to conduct such activities hereunder, and for so long
as such Party customarily maintains insurance with respect to sales of its
other products for similar patient populations and commercial markets.

 

11.5.                     No
Consequential Damages.  IN
NO EVENT SHALL EITHER SYNTA OR ROCHE BE LIABLE FOR SPECIAL, INDIRECT,
INCIDENTAL, EXEMPLARY, MULTIPLE OR CONSEQUENTIAL DAMAGES ARISING OUT OF THIS
AGREEMENT BASED ON CONTRACT, TORT OR ANY OTHER LEGAL THEORY.  NOTHING IN THIS SECTION 11.5 IS INTENDED
TO LIMIT OR RESTRICT (A) THE INDEMNIFICATION RIGHTS OR OBLIGATIONS OF
EITHER PARTY UNDER THIS ARTICLE XI, (B) REMEDIES AVAILABLE TO EITHER PARTY
WITH RESPECT TO A BREACH OF ARTICLE IX OR (C) REMEDIES AVAILABLE TO EITHER
PARTY WITH RESPECT TO A BREACH OF SECTION 6.6.

 

ARTICLE XII -TERM AND TERMINATION

 

12.1.                     Term.  The term of this Agreement shall commence on
the Effective Date and, unless earlier terminated as provided in this Article XII,
shall continue in full force and effect until the expiration of the Royalty
Term for all Licensed Products (the “Term”).

 

12.2.                     Termination for
No Activity.  SYNTA may
terminate this Agreement in its entirety, effective immediately upon giving of
written notice thereof to ROCHE, in the event that, during any twelve (12)
month period after the Research Term and prior to First Commercial Sale of any
Licensed Product anywhere in the Territory, no Development has been conducted
by or on behalf of ROCHE with respect to any Licensed Compound, unless such
absence of Development occurs as a result of an action by a Regulatory
Authority prohibiting clinical development of all Licensed Products, in which
case the twelve (12) month time period will be reset to begin as of the date of
such action.

 

Portions of this Exhibit were omitted and
have been filed separately with the Secretary of the Commission pursuant to the
Company’s application requesting confidential treatment under Rule 24b-2 of the
Securities Exchange Act of 1934, as amended.

 

49

 

12.3.                     Termination for
Convenience.  At any time
after December 31, 2010 during the Term, ROCHE shall have the right to
terminate this Agreement in its entirety for any reason upon three (3) months
prior written notice to SYNTA, such notice to be provided no earlier than September 30,
2010.  At any time during the Term, ROCHE
shall have the right to terminate this Agreement on a Licensed
Compound-by-Licensed Compound basis in one or more Regions (each, a “Terminated
Region”), for any reason upon three (3) months prior written notice to
SYNTA; provided, that ROCHE cannot terminate this Agreement with respect
to all Licensed Compounds except as provided in the first sentence of this Section 12.3.

 

12.4.                     Termination for
Cause.  In the event of a material
breach of this Agreement by a Party, the other Party may give the Party in
default notice of such material breach. 
If such material breach is not cured within sixty (60) days after
receipt of such notice (or within thirty (30) days in the case of a payment
breach), the notifying Party shall be entitled (without prejudice to any of its
other rights conferred on it by this Agreement or under applicable Law) to
terminate this Agreement by giving written notice to the defaulting Party, with
such termination to take effect immediately.

 

12.5.                     Termination if
ROCHE Challenges SYNTA Patent Rights.  If ROCHE or any of ROCHE’s Affiliates or
Sublicensees challenges the validity, enforceability, patentability or scope of
an claim included in any SYNTA Patent Rights or supports, directly or
indirectly, any such challenge (any of the foregoing, a “Patent Challenge”),
SYNTA shall have the right to terminate this Agreement upon thirty (30) days’
written notice to ROCHE with respect to the SYNTA Patent Right so challenged by
ROCHE or any of its Affiliates or Sublicensees; provided, however,
that if such Patent Challenge is terminated during such thirty (30) day period,
then SYNTA shall not have the right to terminate this Agreement in respect of
such Patent Challenge; provided, however, that (a) at SYNTA’s
request, ROCHE shall issue a joint press release with SYNTA promptly after the
termination of such Patent Challenge, which press release shall publicize that
the relationship between ROCHE and SYNTA with respect to this Agreement is
strong, and (b) if ROCHE or any of its Affiliates or Sublicensees was the
first Person to initiate any such Patent Challenge, then ROCHE shall reimburse
SYNTA for all costs and expenses, including attorneys’ fees, incurred by SYNTA
in defending such Patent Challenge and any similar Patent Challenge made by any
Third Party within one (1) year after the initial Patent Challenge, and
shall pay all such reimbursement amounts within thirty (30) days after receipt
of an invoice from SYNTA therefor.

 

12.6.                     Consequences of
Termination by ROCHE for Convenience in its Entirety; Termination by SYNTA for
ROCHE Breach or Patent Challenge.  If this Agreement is terminated by SYNTA in
its entirety pursuant to Section 12.2 (Termination for No Activity), by
ROCHE in its entirety pursuant to Section 12.3 (Termination for
Convenience), or by SYNTA pursuant to Section 12.4 (Termination for Cause)
or 12.5 (Termination if ROCHE Challenges SYNTA Patent Rights), then:

 

12.6.1.           Termination of
Licenses.  The
licenses granted by SYNTA to ROCHE pursuant to Sections 6.1 (Research Licenses)
and 6.2 (Development and Commercialization License to ROCHE) shall terminate;

 

Portions of this Exhibit were omitted and
have been filed separately with the Secretary of the Commission pursuant to the
Company’s application requesting confidential treatment under Rule 24b-2 of the
Securities Exchange Act of 1934, as amended.

 

50

 

12.6.2.           Regulatory Matters.  ROCHE shall transfer to SYNTA ownership of
all regulatory filings and Regulatory Approvals in ROCHE’s or its Affiliates’
possession or control relating to all Collaboration Compounds that are not
Licensed Compounds  (other than ROCHE solely Controlled
Collaboration Compounds), Licensed Compounds and Licensed Products;

 

12.6.3.           Preclinical and
Clinical Matters.  ROCHE shall
assign to SYNTA its entire right, title, and interest in and to all preclinical
and clinical data, including pharmacology and biology data, in ROCHE’s or its
Affiliates’ possession or control relating to and to the extent necessary for
SYNTA to continue the Research, Development or Commercialization of
Collaboration Compounds that are not Licensed Compounds (other than ROCHE solely
Controlled Collaboration Compounds), Licensed Compounds and Licensed Products;

 

12.6.4.           Manufacturing
Matters.  At SYNTA’s option, ROCHE
shall:

 

(a)                                                    To the extent
assignable and related to Licensed Compounds or Licensed Products, assign to
SYNTA each manufacturing agreement then in effect with respect to the
Manufacture of such Licensed Compounds and Licensed Products;

 

(b)                                                    transfer
Manufacturing documents and materials which are used (at the time of the
termination) by or on behalf of ROCHE, its Affiliates or Sublicensees in the
Manufacture of such Licensed Compounds and Licensed Products; and

 

(c)                                                     upon SYNTA’s
request, sell to SYNTA (or its designee) ROCHE’s then-existing inventory of
such Licensed Compounds and Licensed Products, at ROCHE’s FBMC;

 

12.6.5.           Manufacturing Obligations after Termination.  To the extent ROCHE (or an Affiliate of
ROCHE) is Manufacturing (on its own or through any Third Party contract
manufacturer) any Licensed Product, ROCHE (or its Affiliate) shall, at SYNTA’s
request, continue, for a period up to [***] ([***]) [***], to Manufacture (or
have Manufactured) such Licensed Product and supply such Licensed Product to
SYNTA.  ROCHE shall be obligated to
supply quantities of such Licensed Product sufficient to satisfy SYNTA’s
requirements under a manufacturing transfer and transition plan to be
negotiated by the Parties in good faith so that SYNTA can assume all
Development and Commercialization activities with regard to such Licensed
Product.  ROCHE will supply such
quantities of Licensed Product at ROCHE’s FBMC (as such term is consistently
applied by ROCHE at the time of supply) plus [***] percent ([***]%).  In addition, for a period of time to be
agreed upon in good faith by the Parties up to [***] ([***]) [***], ROCHE shall
assist SYNTA as reasonably requested in (a) causing the assignment to
SYNTA of any and all applicable Third Party Manufacturing and supply agreements
for such Licensed Product, to the extent possible, or (b) transferring the
Manufacturing process for such Licensed Product to SYNTA or a Third Party
contract manufacturer engaged by SYNTA. 
Such assistance shall include assisting SYNTA in developing and
executing a reasonable transfer and providing reasonable technical and regulatory
assistance and documentation relating to the manufacture, testing and supply of
such Licensed Product as necessary for SYNTA to be qualified or to qualify a
Third Party for the 

 

Portions of this Exhibit were omitted and
have been filed separately with the Secretary of the Commission pursuant to the
Company’s application requesting confidential treatment under Rule 24b-2 of the
Securities Exchange Act of 1934, as amended.

 

51

 

Manufacturing of such Licensed Product.  Notwithstanding the above, if at the time of
termination of this Agreement, the transfer of Development responsibility per Section 2.7.1
for such Licensed Product has not yet occurred, then the transfer activities
regarding Manufacture and testing of such Licensed Product shall be limited to
the transfer of documents and shipment of such Licensed Product, including
reference materials and stability samples, at no cost to SYNTA.

 

12.6.6.           License Grants
to SYNTA.  ROCHE
hereby grants to SYNTA an exclusive, royalty-bearing (as set forth in Section 12.6.8
below), irrevocable, perpetual license, with the right to grant sublicenses,
under the ROCHE Patent Rights, ROCHE Know-how, and ROCHE’s interest in any
Joint Patent Rights or Joint Know-how, in each case Covering Collaboration
Compounds, Licensed Compounds or Licensed Products, to Research, Develop,
Manufacture, have Manufactured, use, Commercialize and import such
Collaboration Compounds and Licensed Compounds (or products containing any such
Collaboration Compound or Licensed Compound as an active ingredient) or
Licensed Products; provided, that SYNTA shall not exercise such license
unless and until this Agreement is terminated by ROCHE pursuant to Section 12.3
(Termination for Convenience), or by SYNTA pursuant to Section 12.2
(Termination for No Activity), 12.4 (Termination for Cause) or 12.5
(Termination if ROCHE Challenges SYNTA Patent Rights);

 

12.6.7.           Prosecution and
Enforcement.  The
provisions of Sections 8.2 (Prosecution and Maintenance of Patent Rights), 8.3
(Third Party Infringement), 8.4 (Patent Invalidity Claim), 8.6 (Certification
Under Drug Price Competition and Patent Restoration Act) and 8.7 (Cooperation)
shall remain in effect with respect to the ROCHE Patent Rights, ROCHE Know-how,
Joint Patent Rights and Joint Know-how licensed to SYNTA under Section 12.6.6
above, provided, that SYNTA shall have the first right, at its
expense, to prosecute, maintain, enforce or defend, or initiate litigation with
respect to, the ROCHE Patent Rights or ROCHE Know-how under such provisions,
with ROCHE having the step-in rights of the non-initiating Party as set forth
therein;

 

12.6.8.           Royalties
Payable to ROCHE.  In the
event that this Agreement is terminated after the expiration of the Research
Term, SYNTA shall pay ROCHE, on a country-by-country and Licensed
Product-by-Licensed Product basis, royalties on the net sales (with the
definition of Net Sales set forth in Section 1.51 applied to such Licensed
Product) by SYNTA, its Affiliates and Sublicensees of Licensed Products, at the
rate of [***] percent ([***]%) with respect to Licensed Products containing a
Licensed Compound that is Covered by SYNTA Patent Rights or Joint Patent
Rights; provided, however, that if such Licensed Product is
instead or also Covered by ROCHE Patent Rights, then such royalty rate shall be
[***] percent ([***]%).  Any royalties
payable by SYNTA pursuant to this Section 12.6.8 shall be payable
commencing on the first commercial sale (with the definition of First
Commercial Sale set forth in Section 1.26 applied to such Licensed
Product) of such Licensed Product by SYNTA, its Affiliates or Sublicensees, and
shall expire on a country-by-country basis and Licensed Product-by-Licensed
Product basis on the expiration of the last Valid Claim of the ROCHE Patent
Rights, SYNTA Patent Rights or Joint Patent Rights, as applicable, Covering the
Licensed Compound contained 

 

Portions of this Exhibit were omitted and
have been filed separately with the Secretary of the Commission pursuant to the
Company’s application requesting confidential treatment under Rule 24b-2 of the
Securities Exchange Act of 1934, as amended.

 

52

 

in such Licensed Product in such country, and
subject to royalty deductions and adjustments corresponding to those set forth
under Section 7.6; and

 

12.6.9.           Assignment of
Trademark.  ROCHE shall
assign to SYNTA ROCHE’s and its Affiliates’ entire right, title and interest
in, to and under any trademark used by ROCHE, its Affiliates or Sublicensees
exclusively in connection with the Commercialization of a Licensed Product, it
being understood that such assignment shall not include the ROCHE name or
trademark for the ROCHE company itself.

 

12.7.                     Consequences of
Termination by ROCHE for SYNTA Breach.  If ROCHE terminates this Agreement pursuant
to Section 12.4 (Termination for Cause), then, at ROCHE’s election, (a) the
Research licenses granted to ROCHE pursuant to Section 6.1 (Research
Licenses) shall continue solely if the termination occurs during the Research
Term and solely to enable ROCHE to perform the Research activities with respect
to any Collaboration Compound which were not completed by SYNTA under the
Research Plan, and (b) the Development and Commercialization licenses
granted to ROCHE pursuant to Section 6.2 (Development and
Commercialization License to ROCHE) shall continue solely with respect to
Licensed Compounds and Licensed Products; in each case subject to ROCHE’s
continued compliance with ROCHE’s payment and other obligations under Article VII
with respect to such Collaboration Compounds, Licensed Compounds or Licensed
Products.

 

12.8.                     Effect of
Termination and Expiration; Accrued Rights and Obligations.  Upon termination or expiration of this
Agreement for any reason, all rights and obligations of the Parties, including
the licenses granted hereunder, shall end, unless otherwise set forth in this Article XII.  Termination of this Agreement for any reason
shall not release either Party from any liability that, at the time of such
termination, has already accrued or that is attributable to a period prior to
such termination (including payments for Research and Development work
performed, and other payment obligations under Article VII accrued, prior
to the effective date of termination) nor preclude either Party from pursuing
any right or remedy it may have hereunder or at Law or in equity with respect
to any breach of this Agreement. 
Notwithstanding the preceding sentence, (a) if this Agreement is
terminated by ROCHE pursuant to Section 12.4 (Termination for Cause), then
ROCHE need not make any payments pursuant to Section 7.4 (Development
Event Payments) that first accrue during the applicable cure period set forth
in Section 12.4 with respect to the breach for which ROCHE so terminated
this Agreement, and (b) if this Agreement is terminated in its entirety by
ROCHE pursuant to Section 12.3 (Termination for Convenience), then ROCHE
need not make any payments pursuant to rows (a) through (d) in the
table in Section 7.4 (Development Event Payments) that first accrue during
the three (3) month notice period set forth in Section 12.3 with
respect to such termination.  In
addition, if this Agreement is terminated, by ROCHE pursuant to Section 12.3
(Termination for Convenience), or by SYNTA pursuant to Section 12.2
(Termination for No Activity), 12.4 (Termination for Cause) or 12.5
(Termination if ROCHE Challenges SYNTA Patent Rights), then ROCHE shall
continue to be responsible for all non-cancellable costs committed to by SYNTA
which would otherwise have been reimbursed by ROCHE hereunder and all costs
committed to by SYNTA for Development activities which cannot be cancelled for
ethical reasons; provided, that SYNTA shall use Commercially Reasonable
Efforts to mitigate such costs.  It is
understood and agreed 

 

Portions of this Exhibit were omitted and
have been filed separately with the Secretary of the Commission pursuant to the
Company’s application requesting confidential treatment under Rule 24b-2 of the
Securities Exchange Act of 1934, as amended.

 

53

 

that monetary damages may not be a sufficient
remedy for any breach of this Agreement and that the non-breaching Party may be
entitled to seek injunctive relief as a remedy for any such breach.

 

12.9.                     Survival.  The rights and obligations set forth in this
Agreement shall extend beyond the termination or expiration of this Agreement
only to the extent expressly provided for in this Agreement or to the extent
required to give effect to a termination of this Agreement or the consequences
of a termination of this Agreement as expressly provided for in this
Agreement.  Without limiting the
generality of the foregoing, it is agreed that the provisions of Sections
2.5.2, 6.5, 6.7, 7.7.2, 7.7.6, 7.7.7, 7.9, 8.1, 9.1, 9.2, 9.3.4, 10.5, 11,
12.6, 12.7, 12.8, 12.9, 12.10, 13 and 14, except for Section 14.3, and,
solely with respect to Joint Intellectual Property, Sections 8.2.3, 8.2.5,
8.2.6, 8.3.1, 8.3.4, 8.3.5, 8.3.6, 8.4, 8.6 and 8.7 shall survive expiration or
termination of this Agreement for any reason.

 

12.10.              Consequences
Regarding Termination of Licensed Compounds in One or More Regions for
Convenience.  If ROCHE
terminates this Agreement pursuant to Section 12.3 (Termination for
Convenience) with respect to a Licensed Compound in one or more Regions, then:

 

12.10.1.                                 Termination of
Licenses.  The
licenses granted by SYNTA to ROCHE pursuant to Section 6.2 (Development
and Commercialization License to ROCHE) shall automatically terminate, in all
Terminated Regions, with respect to such Licensed Compound and all Licensed
Products containing such Licensed Compound;

 

12.10.2.                                 Regulatory
Matters.  ROCHE shall (a) transfer
to SYNTA ownership of all regulatory filings filed in, and Regulatory Approvals
received with respect to, any Terminated Region (or any country therein), which
filings or Regulatory Approvals are in ROCHE’s or its Affiliates’ possession or
control and relate to such Licensed Compound and Licensed Products containing
such Licensed Compound; and (b) grant SYNTA or its designees a Right of
Reference or Use to any and all regulatory filings filed in, and Regulatory
Approvals received with respect to, any Region (or country) other than a
Terminated Region (or any country therein), which filings or Regulatory Approvals
are in ROCHE’s or its Affiliates’ possession or control and relate to such
Licensed Compound and Licensed Products containing such Licensed Compound, and
ROCHE shall sign, and cause its Affiliates to sign, any instruments reasonably
requested by SYNTA in order to effect such grant.  For the sake of clarity, SYNTA may publish on
its clinical trial registry any Clinical Trials with respect to Licensed
Products containing such Licensed Compound or results thereof;

 

12.10.3.                                 Preclinical and
Clinical Matters.  (a) Once
such Licensed Compound is terminated in all Regions, ROCHE shall assign to
SYNTA its entire right, title, and interest in and to all preclinical and
clinical data, including pharmacology and biology data, in ROCHE’s or its
Affiliates’ possession or control, relating to, and to the extent necessary for
SYNTA to continue, the Development or Commercialization of such Licensed
Compound and Licensed Products containing such Licensed Compound; (b) If
such Licensed Compound is terminated in some, but not all, Regions, then ROCHE
shall provide to SYNTA a copy of all preclinical and clinical data, including
pharmacology and biology data, in ROCHE’s or its 

 

Portions of this Exhibit were omitted and
have been filed separately with the Secretary of the Commission pursuant to the
Company’s application requesting confidential treatment under Rule 24b-2 of the
Securities Exchange Act of 1934, as amended.

 

54

 

Affiliates’ possession or control, relating
to, and to the extent necessary for SYNTA to continue, the Development or
Commercialization of such Licensed Compound and Licensed Products containing
such Licensed Compound;

 

12.10.4.                                 Worldwide
Manufacturing Matters.  Once
such Licensed Compound is terminated in all Regions, then, at SYNTA’s option,
ROCHE shall (a) to the extent assignable at no cost to ROCHE, assign to
SYNTA each manufacturing agreement then in effect with respect to the
Manufacture of such Licensed Compound and Licensed Products containing such Licensed
Compound; (b) transfer to SYNTA Manufacturing documents and materials
which are used (at the time of the termination) by or on behalf of ROCHE, its
Affiliates or Sublicensees in the Manufacture of such Licensed Compound and
Licensed Products containing such Licensed Compound; and (c) upon SYNTA’s
request, sell to SYNTA (or its designee) ROCHE’s then-existing inventory of
such Licensed Compound and Licensed Products containing such Licensed Compound,
at FBMC;

 

12.10.5.                                 Regional
Manufacturing Matters.  If
such Licensed Compound is terminated in some, but not all, Regions, then, at
SYNTA’s option, ROCHE shall sell to SYNTA (or its designee) a proportionate
amount of ROCHE’s then-existing inventory of such Licensed Compound and
Licensed Products containing such Licensed Compound, at FBMC, which proportion
reflects (a) if such Licensed Products had been Commercialized in each
Region prior to such termination, the proportion of units of such Licensed
Products sold in the Terminated Regions during the [***] ([***]) [***] period
prior to such termination, compared to the number of units of such Licensed
Products sold worldwide during such [***] ([***]) [***] period, or (b) if
such Licensed Products had not been Commercialized in each Region prior to such
termination, an estimate, as mutually agreed by the Parties in good faith, of
the number of units of such Licensed Products anticipated to be sold in the
Terminated Regions during the [***] ([***]) [***] period immediately following
such termination, compared to the number of units of such Licensed Products
anticipated to be sold worldwide during such [***] ([***]) [***] period; provided,
however, that, if the then-existing inventory is not sufficient to
provide both SYNTA with such amounts and ROCHE with the amounts of such
Licensed Compound and Licensed Products containing such Licensed Compound it
reasonably requires to Commercialize such Licensed Products in the next [***]
([***]) [***] period, then ROCHE may retain as much of such then-existing
inventory as it reasonably requires to Commercialize such Licensed Products in
the next [***] ([***]) [***] period;

 

12.10.6.                                 ROCHE
Manufacturing.  To the
extent ROCHE (or an Affiliate of ROCHE) is Manufacturing (on its own or through
any Third Party contract manufacturer) any such Licensed Product that has
achieved First Commercial Sale in any country (a “Terminated Commercial
Product”), ROCHE (or its Affiliate) shall, at SYNTA’s request, continue,
for a period up to [***] ([***]) [***], to Manufacture (or have Manufactured)
such Terminated Commercial Product and supply such Terminated Commercial
Product to SYNTA, for SYNTA to Develop such Terminated Commercial Product for,
and Commercialize such Terminated Commercial Product in, the Terminated
Regions.  ROCHE shall be obligated to
supply, with the proviso that ROCHE need not increase its manufacturing
capacity, quantities of such Terminated Commercial Product sufficient to
satisfy SYNTA’s requirements under a manufacturing transfer 

 

Portions of this Exhibit were omitted and
have been filed separately with the Secretary of the Commission pursuant to the
Company’s application requesting confidential treatment under Rule 24b-2 of the
Securities Exchange Act of 1934, as amended.

 

55

 

and transition plan to be negotiated by the
Parties in good faith so that SYNTA can assume, with regard to such Terminated
Commercial Product, all Development activities for, and Commercialization
activities in, the Terminated Regions. 
ROCHE will supply such quantities of Terminated Commercial Product at
ROCHE’s FBMC (as such term is consistently applied by ROCHE at the time of
supply) plus [***] percent ([***]%).  In
addition, for a period of time to be agreed upon in good faith by the Parties
up to [***] ([***]) [***], ROCHE shall assist SYNTA as reasonably requested (a) in
causing the assignment to SYNTA of any and all applicable Third Party
Manufacturing and supply agreements for such Terminated Commercial Product, to
the extent possible without jeopardizing ROCHE’s manufacturing needs, and (b) in
transferring the Manufacturing process for such Terminated Commercial Product to
SYNTA or a Third Party contract manufacturer engaged by SYNTA.  Such assistance shall include assisting SYNTA
in developing and executing a reasonable transfer and providing reasonable
technical and regulatory assistance and documentation relating to the
manufacture, testing and supply of such Licensed Product as necessary for SYNTA
to be qualified or to qualify a Third Party for the Manufacturing of such
Licensed Product.  Prior to such Licensed
Product achieving First Commercial Sale in any country, the transfer activities
regarding Manufacture and testing of such Licensed Product shall be limited to
the transfer of documents and shipment of such Licensed Product, including
reference materials and stability samples, at no cost to SYNTA;

 

12.10.7.                                 License Grants
to SYNTA.  ROCHE
hereby grants SYNTA (a) an exclusive, royalty-bearing (as set forth in Section 12.10.9
below), irrevocable, perpetual license, with the right to grant sublicenses,
under the ROCHE Patent Rights, ROCHE Know-how, and ROCHE’s interest in any
Joint Patent Rights or Joint Know-how, in each case Covering such Licensed
Compound, to Develop, Manufacture, have Manufactured, use, Commercialize and
import such Licensed Compounds or Licensed Products containing such Licensed
Compound, in each case in the Terminated Regions, and (b) to the extent
that such Licensed Compound is not terminated in all Regions, a non-exclusive,
royalty-bearing (as set forth in Section 12.10.9 below), irrevocable,
perpetual license, with the right to grant sublicenses, under the ROCHE Patent
Rights, ROCHE Know-how, and ROCHE’s interest in any Joint Patent Rights or
Joint Know-how, in each case Covering such Licensed Compound, to Develop,
Manufacture and have Manufactured, and to use and import for purposes of
Development and Manufacturing, such Licensed Compounds or Licensed Products
containing such Licensed Compound, in each case in each Region not yet
terminated;

 

12.10.8.                                 Prosecution and
Enforcement.  The
provisions of Sections 8.2 (Prosecution and Maintenance of Patent Rights), 8.3
(Third Party Infringement), 8.4 (Patent Invalidity Claim), 8.6 (Certification
Under Drug Price Competition and Patent Restoration Act) and 8.7 (Cooperation)
shall remain in effect with respect to the ROCHE Patent Rights, ROCHE Know-how,
Joint Patent Rights and Joint Know-how licensed to SYNTA under Section 12.10.7;
provided, that SYNTA shall have the first right, at its expense,
to prosecute, maintain, enforce or defend, or initiate litigation with respect
to, the ROCHE Patent Rights or ROCHE Know-how under such provisions, with ROCHE
having the step-in rights of the non-initiating Party as set forth therein;

 

Portions of this Exhibit were omitted and
have been filed separately with the Secretary of the Commission pursuant to the
Company’s application requesting confidential treatment under Rule 24b-2 of the
Securities Exchange Act of 1934, as amended.

 

56

 

12.10.9.                 Royalties Payable to ROCHE.  In the event that ROCHE terminates this
Agreement pursuant to Section 12.3 (Termination for Convenience) with
respect to a Licensed Compound after the expiration of the Research Term, SYNTA
shall pay ROCHE, on a country-by-country and Licensed Product-by-Licensed
Product basis, royalties on the net sales (with the definition of Net Sales set
forth in Section 1.50 applied to such Licensed Product) by SYNTA, its
Affiliates and Sublicensees of Licensed Products containing such Licensed
Compound in the Terminated Regions, at the rate of [***] percent ([***]%) with
respect to Licensed Products containing a Licensed Compound that is Covered by
SYNTA Patent Rights or Joint Patent Rights; provided, however, that
if such Licensed Product is instead or also Covered by ROCHE Patent Rights,
then such royalty rate shall be [***] percent ([***]%).  Any royalties payable by SYNTA pursuant to
this Section 12.10.9 shall be payable commencing on the first commercial
sale (with the definition of First Commercial Sale set forth in Section 1.26
applied to such Licensed Product) of such Licensed Product by SYNTA, its
Affiliates or Sublicensees in the relevant country in the Terminated Region,
and shall expire on a country-by-country basis and Licensed Product-by-Licensed
Product basis on the expiration of the last Valid Claim of the ROCHE Patent
Rights, SYNTA Patent Rights or Joint Patent Rights, as applicable, Covering
such Licensed Compound in such country, and subject to royalty deductions and
adjustments corresponding to those set forth under Section 7.6; and

 

12.10.10.               Assignment of Trademark.  ROCHE shall assign to SYNTA ROCHE’s and its
Affiliates’ entire right, title and interest in, to and under any trademark
used by ROCHE, its Affiliates or Sublicensees in connection with the
Commercialization of such Licensed Compound (or Licensed Product containing
such Licensed Compound) in the Terminated Regions, it being understood that
such assignment shall not include the ROCHE name or trademark for the ROCHE
company itself.

 

ARTICLE XIII -DISPUTE
RESOLUTION

 

13.1.       Referral of Unresolved Matters to Executive Officers.  Subject to Section 3.2.4, and except for
matters that are subject to a Party’s final decision making authority pursuant
to Section 8.2.6(b) (Patent Term Extensions) or Section 2 of Schedule
5.3 (Co-Promotion Terms), if the JSC is unable to resolve any matter
considered by it, including matters referred to it by the JRDC, within [***]
([***]) [***] after the matter is first considered by it, the matter shall be
referred to the Executive Officers to be resolved by negotiation in good faith
as soon as is practicable but in no event later than ([***]) [***] after
referral.  Such resolution, if any, of a
referred issue by the Executive Officers shall be final and binding on the
Parties.

 

13.2.       Alternative Dispute Resolution.  Subject to Sections 3.2.4 (Decision-Making)
and 13.1, if a dispute referred to the Executive Officers has not been resolved
by the Executive Officers within [***] ([***]) days after referral, or if the
Executive Officers fail to meet within such [***] ([***]) days, a Party may
seek resolution of the dispute by initiating arbitration in accordance with the
following provisions.

 

13.2.1.    Location.  All disputes arising out of this Agreement
and referred to arbitration pursuant to this Section 13.2 shall be finally
resolved by arbitration conducted by a

 

Portions of this Exhibit were omitted and
have been filed separately with the Secretary of the Commission pursuant to the
Company’s application requesting confidential treatment under Rule 24b-2 of the
Securities Exchange Act of 1934, as amended.

 

57

 

single arbitrator (unless the Parties
mutually agree to three (3) arbitrators) in New York, New York in the
English language in accordance with the Commercial Arbitration Rules of
the American Arbitration Association (“AAA”).  Such arbitrator shall be appointed by the AAA
pursuant to its procedures.  The AAA
shall be the administrator of the arbitration proceedings.

 

13.2.2.  Ruling.  The arbitrator(s) may proceed to an
award notwithstanding the failure of the other Party to participate in the
proceedings.  The Parties shall use good
faith efforts to complete arbitration under this Section 13.2 within
ninety (90) days following the initiation of such arbitration.  The arbitrator(s) shall establish
reasonable additional procedures to facilitate and complete such arbitration
within such ninety (90) day period.  The
arbitrator(s) shall be authorized to grant interim relief, including to
prevent the destruction of goods or documents involved in the dispute, protect
trade secrets and provide for security for a prospective monetary award.  The arbitrator(s) shall issue a written
decision in order to explain the basis of the ruling, unless otherwise agreed
by the Parties.  The arbitrator(s) shall
not have the authority to award special, incidental, consequential, exemplary,
punitive, multiple or other indirect damages or loss of profits, loss of data
or loss of use damages, except as permitted under Section 11.5.

 

13.2.3.  Fees.  The arbitrator(s) shall be paid
reasonable fees plus expenses.  These
fees and expenses, along with the reasonable legal fees and expenses of the
prevailing Party (including all expert witness fees and expenses), the fees and
expenses of a court reporter, and any expenses for a hearing room, shall be
paid as follows:

 

(a)            If
the arbitrator(s) rule in favor of one Party on all disputed issues
in the arbitration, the losing Party shall pay all such fees and expenses.

 

(b)            If
the arbitrator(s) rule in favor of one Party on some issues and the
other Party on other issues, the arbitrator(s) shall issue with the ruling
a written determination as to how such fees and expenses shall be allocated
between the Parties.  The arbitrator(s) shall
allocate fees and expenses in a way that bears a reasonable relationship to the
outcome of the arbitration, with the Party prevailing on more issues, or on
issues of greater value or gravity, recovering a relatively larger share of its
legal fees and expenses.

 

13.2.4.  Decision.  Any decision or award of the arbitrator(s) shall
be final, conclusive, and binding on the Parties, and judgment may be entered
on any award in any court of competent jurisdiction, subject only to revocation
on grounds of fraud or clear bias on the part of the arbitrators.  To the extent lawful, the Parties otherwise
exclude any right of application or appeal to the courts in connection with any
matter arising in the arbitration or in connection with any award or decision
made by the arbitrators.

 

13.2.5.  No
Limitation.  Notwithstanding the
foregoing, (a) nothing in this Article XIII shall be construed as
limiting in any way the right of a Party to seek injunctive or other equitable
relief from a court of competent jurisdiction with respect to any actual or
threatened breach of this Agreement, and (b) each Party shall have the
right to institute judicial proceedings against the other Party (or anyone
acting by or through such other Party), in order to

 

Portions of this Exhibit were omitted and
have been filed separately with the Secretary of the Commission pursuant to the
Company’s application requesting confidential treatment under Rule 24b-2 of the
Securities Exchange Act of 1934, as amended.

 

58

 

enforce such Party’s rights under this
Agreement or under any decision or award of the arbitrator(s), through
reformation of contract, specific performance, injunction or similar equitable
relief.

 

13.2.6.  No
Arbitration of Patent Matters. 
Unless otherwise agreed by the Parties, a dispute between the Parties
relating to the validity, infringement or enforceability of patents shall not
be subject to arbitration and shall by submitted to a court of competent
jurisdiction.

 

ARTICLE XIV -MISCELLANEOUS

 

14.1.       Governing Law. 
This Agreement and any dispute arising from the performance or breach of
this Agreement shall be governed by, construed and enforced in accordance with
the laws of the State of Delaware, other than any principle of conflict or
choice of laws that would cause the application of the laws of any other
jurisdiction; provided  that with respect to matters involving
enforcement of intellectual property rights, the Laws of the applicable country
shall apply.  The provisions of the
United Nations Convention on Contracts for the International Sale of Goods
shall not apply to this Agreement or any subject matter hereof.

 

14.2.       Waiver.  Waiver
by a Party of a breach hereunder by the other Party shall not be construed as a
waiver of any succeeding breach of the same or any other provision.  No delay or omission by a Party to exercise
or avail itself of any right, power or privilege that it has or may have
hereunder shall operate as a waiver of any right, power or privilege by such
Party.  No waiver shall be effective
unless made in writing with specific reference to the relevant provision(s) of
this Agreement and signed by a duly authorized representative of the Party
granting the waiver.

 

14.3.       Change of Control. 
If SYNTA undergoes a Change of Control to or with a Third Party, then,
at ROCHE’s election, ROCHE may terminate either:  (i) the rights of such Third Party, as
assignee of SYNTA’s rights under this Agreement, to participate on the JRDC or
JSC, or (ii) the rights of such Third Party, as assignee of SYNTA’s rights
under this Agreement, to Co-promote Licensed Products under this Agreement, or
both (i) and (ii).

 

14.4.       Notices.  All
notices, instructions and other communications hereunder or in connection
herewith shall be in writing, shall be sent to the address specified in this Section 14.4
and shall be:  (a) delivered
personally; (b) sent by registered or certified mail, return receipt
requested, postage prepaid; (c) sent via a reputable nationwide overnight
courier service; or (d) sent by facsimile transmission.  Any such notice, instruction or communication
shall be deemed to have been delivered upon receipt if delivered by hand, three
(3) Business Days after it is sent by registered or certified mail, return
receipt requested, postage prepaid, one (1) Business Day after it is sent
via a reputable nationwide overnight courier service, or when transmitted with
electronic confirmation of receipt, if transmitted by facsimile (if such
transmission is on a Business Day; otherwise, on the next Business Day
following such transmission).

 

Portions of this Exhibit were omitted and
have been filed separately with the Secretary of the Commission pursuant to the
Company’s application requesting confidential treatment under Rule 24b-2 of the
Securities Exchange Act of 1934, as amended.

 

59

 

Notices to ROCHE shall be
addressed to:

 

F.
Hoffmann-La Roche Ltd

Grenzacherstrasse
124

4070 Basel

Switzerland

Attention:  Legal Department

Facsimile:  41
61 688 1396

 

And:

 

Hoffmann-La Roche Inc.

340 Kingsland Street

Nutley, New Jersey 07110

USA

Attention:  Corporate Secretary

Facsimile: 
1-(973) 235-3500

 

With a copy to:

 

F. Hoffmann-La Roche Ltd

Grenzacherstrasse
124

4070
Basel

Switzerland

Attention:  Pharma Partnering

Facsimile: 
41 61 688 7990

 

Notices to SYNTA shall be
addressed to:

 

Synta Pharmaceuticals Corp.

45 Hartwell Avenue

Lexington, MA 02421

USA

Attention:  Business Development

Facsimile:
1-(781) 274-8228

 

With
copies to:

 

Synta Pharmaceuticals Corp.

45 Hartwell Avenue

Lexington, MA 02421

USA

Attention:  General Counsel

Facsimile:
1-(781) 274-8228

 

Portions of this Exhibit were omitted and
have been filed separately with the Secretary of the Commission pursuant to the
Company’s application requesting confidential treatment under Rule 24b-2 of the
Securities Exchange Act of 1934, as amended.

 

60

 

And:

 

WilmerHale

60 State Street

Boston, MA USA 02109

Attention:  
Belinda M. Juran, Esq.

Facsimile:  1-(617) 526-5000

 

Either Party may change its address by giving notice
to the other Party in the manner provided above.

 

14.5.       Entire Agreement. 
This Agreement (including all attachments hereto) contains the complete
understanding of the Parties with respect to the subject matter hereof, sets
forth all the covenants, promises, agreements, warranties, representations,
conditions and understandings between the Parties and supersedes all prior
understandings and writings relating to such subject matter.  In particular, and without limitation, it
supersedes and replaces the Confidentiality Agreements and any and all term
sheets relating to the transactions contemplated by this Agreement and
exchanged between the Parties prior to the Effective Date.  For the sake of clarity, nothing herein shall
terminate or supersede the Confidential Disclosure Agreement between SYNTA and
ROCHE NUTLEY dated as of August 5, 2005. 
No amendment, change or addition to this Agreement will be effective or
binding on either Party unless reduced to writing and duly executed on behalf
of both Parties.

 

14.6.       Headings. 
Headings in this Agreement are for convenience of reference only and
shall not be considered in construing this Agreement.

 

14.7.       Severability.  If
any provision of this Agreement is held unenforceable by a court or tribunal of
competent jurisdiction because it is invalid or conflicts with any Law of any
relevant jurisdiction, the validity of the remaining provisions shall not be
affected.  In such event, the Parties
shall negotiate a substitute provision that, to the extent possible,
accomplishes the original business purpose.

 

14.8.       Assignment. 
Neither this Agreement nor any right or obligation hereunder may be
assigned or otherwise transferred by any Party without the written consent of
the other Party; provided, however that any Party may, without
such consent, assign this Agreement, in whole or in part:  (a) to any of its respective Affiliates,
provided  that such Party shall remain jointly and severally
liable with such Affiliate in respect of all obligations so assigned and such
Affiliate has acknowledged and confirmed in writing that, effective as of such
assignment or other transfer, such Affiliate shall be bound by this Agreement
as if it were a party to it as and to the identical extent applicable to the
transferor; or (b) to any successor in interest by way of merger or
acquisition or by sale of all or substantially all of its assets to which this
Agreement pertains (whether by merger, reorganization, acquisition, sale or
otherwise), provided, that such successor agrees in writing to be
bound by the terms of this Agreement as if it were the assigning party.  Any purported assignment in violation of this
Section 14.8 shall be void.  The
terms of this

 

Portions of this Exhibit were omitted and
have been filed separately with the Secretary of the Commission pursuant to the
Company’s application requesting confidential treatment under Rule 24b-2 of the
Securities Exchange Act of 1934, as amended.

 

61

 

Agreement shall be binding on and inure to
the benefit of the permitted successors and assigns of the Parties.

 

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

 

14.10.     Force Majeure.  No Party shall be liable for failure of or
delay in performing obligations set forth in this Agreement, and no Party shall
be deemed in breach of its obligations, if such failure or delay is due to a
natural disaster, explosion, fire, flood, tornadoes, thunderstorms, earthquake,
war, terrorism, riots, embargo, losses or shortages of power, labor stoppage,
substance or material shortages, damage to or loss of product in transit,
events caused by reason of Laws of any Regulatory Authority, events caused by
acts or omissions of a Third Party, or any other cause reasonably beyond the control
of such Party.  The Party affected by
such force majeure will provide the other Party with full particulars thereof
as soon as it becomes aware of the same (including its good faith estimate of
the likely extent and duration of the interference with its activities), and
will use Commercially Reasonable Efforts to overcome the difficulties created
thereby and to resume performance of its obligations as soon as
practicable.  If the performance of any
such obligation under this Agreement is delayed owing to such a force majeure
for any continuous period of more than one hundred eighty (180) days, the
Parties will consult with respect to an equitable solution, including the
possibility of the mutual termination of this Agreement.

 

14.11.     Press Releases and Other Disclosures.  The Parties will cooperate in the release of
a joint press release, substantially in the form set forth in Schedule
14.11, as soon as practicable after the Execution Date of this
Agreement.  The Parties also recognize
that each Party may from time to time desire to issue additional press releases
and make other public statements or disclosures regarding the subject matter of
this Agreement.  In such event, the Party
desiring to issue an additional press release or make a public statement or
disclosure shall provide the other Party with a copy of the proposed press
release, statement or disclosure for review, comment and approval at least
[***] ([***]) Business Days in advance (or such shorter period as would permit
the publicizing Party to comply with applicable Law), which advance approval
shall not be unreasonably withheld, conditioned or delayed (except that neither
Party shall have any obligation to disclose Confidential Information except to
the extent required or permitted pursuant to Article IX).  The reviewing Party shall notify the
publicizing Party within such [***] ([***]) Business Days period (or such
shorter period) of its comments and whether it approves such disclosure.  It is agreed that each such disclosure shall
only be done with such approval of the other Party and no other public
statement or disclosure concerning the existence or terms of this Agreement
shall be made, either directly or indirectly, by either Party, without first
obtaining the written approval of the other Party.  Notwithstanding the foregoing provisions of
this Section 14.11 or of Article IX, (a) a Party may make any
disclosure or public announcement if the contents of such disclosure or public
announcement have previously been made public other than through a breach of
this Agreement by the issuing Party; (b) if a Party reasonably determines
that a public disclosure shall be required by Law, including in a public filing
with the U.S. Securities and Exchange Commission, such Party may disclose the
existence and terms of this Agreement

 

Portions of this Exhibit were omitted and
have been filed separately with the Secretary of the Commission pursuant to the
Company’s application requesting confidential treatment under Rule 24b-2 of the
Securities Exchange Act of 1934, as amended.

 

62

 

and any material developments that occur
under this Agreement where so required, provided  that such Party
shall, to the extent practicable and permitted by applicable Law, notify the
other Party and allow the other Party to comment on the proposed disclosure,
which comments shall be considered by the disclosing Party in good faith; (c) a
Party may disclose the existence and terms of this Agreement under obligations
of confidentiality to bona fide potential or actual advisors, consultants,
investors, lenders, investment bankers or other potential financial partners in
connection with such Party’s proposed financing or business combination
activities; and (d) a Party may disclose the terms and existence of this
Agreement to bona fide potential or actual Sublicensees, as reasonably
necessary in connection with a permitted sublicense under the licenses granted
in this Agreement.

 

14.12.     Third Party Beneficiaries.  None of the provisions of this Agreement
shall be for the benefit of or enforceable by any Third Party other than an
indemnitee under Article XI.  No
such Third Party shall obtain any right under any provision of this Agreement
or shall by reason of any such provision make any claim in respect of any debt,
liability or obligation (or otherwise) against either Party.

 

14.13.     Relationship of the Parties.  Each Party shall bear its own costs incurred
in the performance of its obligations hereunder without charge or expense to
the other, except as expressly provided in this Agreement.  Neither Party shall have any responsibility
for the hiring, termination or compensation of the other Party’s employees or
for any employee compensation or benefits of the other Party’s employees.  No employee or representative of a Party
shall have any authority to bind or obligate the other Party for any sum or in
any manner whatsoever, or to create or impose any contractual or other
liability on the other Party without such other Party’s approval.  For all purposes, and notwithstanding any
other provision of this Agreement to the contrary, the legal relationship under
this Agreement of each Party to the other Party shall be that of independent
contractor.  Nothing in this Agreement
shall be construed to establish a relationship of partners or joint venturers
between the Parties.

 

14.14.     Performance by Affiliates.  Either Party may use one or more of its
Affiliates to perform its obligations and duties hereunder and Affiliates of a
Party are expressly granted certain rights herein; provided, that each
such Affiliate shall be bound by the corresponding obligations of such Party
and the relevant Party shall remain liable hereunder for the prompt payment and
performance of all their respective obligations hereunder.  ROCHE BASEL and ROCHE NUTLEY shall be jointly
and severally liable to SYNTA for any obligations owed hereunder by ROCHE
BASEL, ROCHE NUTLEY or ROCHE.  ROCHE
BASEL and ROCHE NUTLEY shall coordinate their exercise of ROCHE’s rights and
performance of ROCHE’s obligations to ensure that SYNTA does not receive
inconsistent notices or instruction with respect thereto.

 

14.15.     Construction.  Each Party acknowledges that it has been
advised by counsel during the course of negotiation of this Agreement, and,
therefore, that this Agreement shall be interpreted without regard to any
presumption or rule requiring construction against the Party causing this
Agreement to be drafted.  Any reference
in this Agreement to an Article, Section, subsection, paragraph, clause,
Schedule, or Exhibit shall be deemed to be a reference to any

 

Portions of this Exhibit were omitted and
have been filed separately with the Secretary of the Commission pursuant to the
Company’s application requesting confidential treatment under Rule 24b-2 of the
Securities Exchange Act of 1934, as amended.

 

63

 

Article, Section, subsection, paragraph,
clause, Schedule, or Exhibit, of or to, as the case may be, this
Agreement.  Except where the context otherwise
requires, (a) wherever used, the use of any gender will be applicable to
all genders, (b) the word “or” is used in the inclusive sense (and/or), (c) any
definition of or reference to any agreement, instrument or other document
refers to such agreement, instrument other document as from time to time
amended, supplemented or otherwise modified (subject to any restrictions on
such amendments, supplements or modifications set forth herein or therein), (d) any
reference to any Laws refers to such Laws as from time to time enacted,
repealed or amended, (e) the words “herein”, “hereof” and hereunder”, and
words of similar import, refer to this Agreement in its entirety and not to any
particular provision hereof, and (f) the words “include”, “includes” and “including”
shall be deemed to be followed by the phrase “but not limited to”, “without
limitation” or words of similar import.

 

 [Remainder of page intentionally left
blank.]

 

Portions of this Exhibit were omitted and
have been filed separately with the Secretary of the Commission pursuant to the
Company’s application requesting confidential treatment under Rule 24b-2 of the
Securities Exchange Act of 1934, as amended.

 

64

 

 

IN WITNESS WHEREOF, the Parties have entered
into this Collaboration and License Agreement as of the Execution Date.

 

SYNTA PHARMACEUTICALS CORP.

 

	
  By: 

  	
  /s/ Safi R. Bahcall

  	
   

  
	
   

  	
  Name:  Safi R. Bahcall

  
	
   

  	
  Title:  President &
  CEO

  

 

 

F. HOFFMANN-LA ROCHE LTD

 

	
  By:

  	
  /s/ Jorg Kazenwadel

  	
   

  	
  By:

  	
    /s/ Stefan Arnold

  
	
   

  	
  Name:  Jorg Kazenwadel

  	
   

  	
  Name: Stefan Arnold

  
	
   

  	
  Title:  GAO

  	
   

  	
  Title:  Legal Counsel

  

 

 

HOFFMANN-LA ROCHE INC.

 

	
  By:

  	
  /s/ George W. Johnston

  	
   

  
	
   

  	
  Name: George W. Johnston

  
	
   

  	
  Title: Vice President

  

 

[Execution
Page]

 

Portions of this Exhibit were omitted and
have been filed separately with the Secretary of the Commission pursuant to the
Company’s application requesting confidential treatment under Rule 24b-2 of the
Securities Exchange Act of 1934, as amended.

 

 

EXHIBIT A

 

SYNTA PATENT RIGHTS

 

	
  Country

  	
   

  	
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Portions of this Exhibit were omitted and
have been filed separately with the Secretary of the Commission pursuant to the
Company’s application requesting confidential treatment under Rule 24b-2 of the
Securities Exchange Act of 1934, as amended.

 

1

 

	
  Country

  	
   

  	
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Portions of this Exhibit were omitted and
have been filed separately with the Secretary of the Commission pursuant to the
Company’s application requesting confidential treatment under Rule 24b-2 of the
Securities Exchange Act of 1934, as amended.

 

2

 

	
  Country

  	
   

  	
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Portions of this Exhibit were omitted and
have been filed separately with the Secretary of the Commission pursuant to the
Company’s application requesting confidential treatment under Rule 24b-2 of the
Securities Exchange Act of 1934, as amended.

 

3

 

	
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Portions of this Exhibit were omitted and
have been filed separately with the Secretary of the Commission pursuant to the
Company’s application requesting confidential treatment under Rule 24b-2 of the
Securities Exchange Act of 1934, as amended.

 

4

 

EXHIBIT B

 

RESEARCH PLAN

 

[***]

 

Portions of this Exhibit were omitted and
have been filed separately with the Secretary of the Commission pursuant to the
Company’s application requesting confidential treatment under Rule 24b-2 of the
Securities Exchange Act of 1934, as amended.

 

1

 

EXHIBIT C

 

DEVELOPMENT PLAN — PRE-IND

 

[***]

 

Portions of this Exhibit were omitted and
have been filed separately with the Secretary of the Commission pursuant to the
Company’s application requesting confidential treatment under Rule 24b-2 of the
Securities Exchange Act of 1934, as amended.

 

1

 

[***]

 

Portions of this Exhibit were omitted and
have been filed separately with the Secretary of the Commission pursuant to the
Company’s application requesting confidential treatment under Rule 24b-2 of the
Securities Exchange Act of 1934, as amended.

 

2

 

EXHIBIT D

 

DEVELOPMENT PLAN — PHASE 1 AND
PHASE 2A

 

[***]

 

Portions of this Exhibit were omitted and
have been filed separately with the Secretary of the Commission pursuant to the
Company’s application requesting confidential treatment under Rule 24b-2 of the
Securities Exchange Act of 1934, as amended.

 

1

 

SCHEDULE 5.3

 

Co-Promotion Terms

 

1.                                       Certain
Definitions:

 

(a)                                  “Detail” means that
part of an in-person, face-to-face sales call during which a Sales
Representative makes a presentation, including core selling message and
features and benefits, of a Licensed Product to one or more member of the
Target Audience.  E-details and
presentations made at conventions and exhibit booths shall not constitute one
or more Details.

 

(b)                                 “Detail Percentage”
means (i) with respect to asthma, up to [***] percent ([***]%), as
determined by SYNTA, and (ii) with respect to any other Indication other
than asthma, up to [***] percent ([***]%), as determined by SYNTA.

 

(c)                                  “Sales Representative”
means a professional pharmaceutical sales representative engaged or employed by
either Party to conduct, among other sales responsibilities, Detailing and
other promotional efforts with respect to a Co-promoted Product and who has
been trained by either Party in accordance with Paragraph 4 below.  In the case of SYNTA, a Sales Representatives
shall be an employee of SYNTA.

 

(d)                                 “Sales Representative FTE
Rate” means the lower of (a) ROCHE’s fully burdened, average annual
cost for its Sales Representatives that are ROCHE employees or (b) SYNTA’s
fully burdened average annual cost for its Sales Representatives that are SYNTA
employees; in each case with respect to Sales Representatives promoting the
same Co-promoted Product.  For purposes
of this subsection (d), such costs shall be determined in a manner reasonably
consistent between the Parties.

 

(e)                                  “Target Audience”
means the physicians who meet the relevant criteria for promoting and Detailing
a Licensed Product for a particular Indication.

 

2.                                       Co-promotion
Guidelines.  With
respect to each Co-promoted Product, SYNTA shall have the right to assume
responsibility for the applicable Detail Percentage of the annual budgeted
Detailing effort for such Co-promoted Product in the United States for the
applicable Indication.  If SYNTA elects
to participate in the Co-promotion of a Licensed Product as set forth above,
then the Parties shall work in good faith to most effectively assign sales
territories and assign target physicians between their respective sales
forces.  Notwithstanding the foregoing, SYNTA
shall have final decision-making authority as to whether it will accept the
geographic location and size of its sales territories within the U.S.  If SYNTA does not accept a particular
geographic location or size of its sales territories within the U.S., then
ROCHE shall in good faith discuss with SYNTA a reasonably acceptable
alternative such that SYNTA has the ability to provide the Detail Percentage of
the annual budgeted Detailing effort for such Co-promoted Product in the United
States for the applicable Indication. 
Promptly following exercise by SYNTA of its right to participate in the
Co-promotion of a Product in the United States, ROCHE shall modify its relevant
Commercialization plans to provide for the Co-promotion of the Co-promoted
Product in the United States for the applicable Indication (the “Co-promotion

 

Portions of this Exhibit were omitted and
have been filed separately with the Secretary of the Commission pursuant to the
Company’s application requesting confidential treatment under Rule 24b-2 of the
Securities Exchange Act of 1934, as amended.

 

1

 

Guidelines”), which shall consider in good faith the
reasonable suggestions and comments of SYNTA. 
Notwithstanding the previous sentence, ROCHE shall have final decision
making authority with regard to (i) generating the Co-promotion Guidelines
(provided, that, such Co-Promotion Guidelines shall (A) comply with
applicable Law, (B) be generated in good faith and (C) not contain
provisions that disfavor SYNTA and its Sales Representatives or that cause an
undue burden on SYNTA or its Sales Representatives) and (ii) all
promotional materials and strategies. 
The Co-promotion Guidelines shall address the following matters:

 

(1)                                  the annual
budgeted total Detailing effort for the United States;

 

(2)                                  the allocation
of the total Detailing effort between the Parties, it being understood that,
SYNTA may elect to be responsible for the applicable Detailing Percentage of
the annual budgeted Detailing effort;

 

(3)                                  the number and
position of Details and categories of professionals or institutions to be
targeted, and the allocation of such professionals or institutions between the
Parties in accordance with the Detail Percentage elected by SYNTA; and

 

(4)                                  policies and
procedures relating to Co-promoted Product sampling.

 

3.                                       Co-promotion
Detail Records and Metrics.  Each Party shall manage in good faith its
annual Detailing on a basis consistent with the Co-promotion Guidelines.  Each Party shall keep track of the number and
position of Details performed by its Sales Representatives in accordance with
its normal internal reporting procedures. 
Within [***] ([***]) days after the last day of each Calendar Quarter,
each Party shall submit to the other Party a report with respect to the number
of Details performed by its Sales Representatives during such Calendar Quarter.

 

4.                                       Co-promotion
Training and Materials.

 

(a)                                  Except as set forth below,
each Party shall be responsible for staffing, training, supervising and
compensating (including incentives) its own sales personnel.  ROCHE shall be responsible for the
development of Co-promoted Product-specific training materials, and shall
provide such materials to SYNTA’s sales force, at ROCHE’s expense.  Each
Party shall use the same training materials for its respective sales
personnel.  ROCHE shall conduct
Co-promoted Product-specific training of SYNTA’s sales management, sales
training personnel, and sales representatives, at ROCHE’s expense.  Following such initial training, any
subsequent training of SYNTA’s training personnel shall be made available by
ROCHE at ROCHE’s expense only when ROCHE trains its own Sales Representatives
on the Co-promoted Product. All Co-promoted Product-specific training materials
prepared and supplied by ROCHE for use in the United States will comply with
all applicable Laws and the Co-promotion Guidelines.

 

(b)                                 SYNTA’s Sales
Representatives will utilize only the promotional materials provided to them by
ROCHE, and will not utilize any other promotional, advertising, communications
or other materials, relating to or referring to the Co-promoted Product.  SYNTA’s Sales Representatives will conduct
only those promotional activities relating to the Co-promoted Product that have
been approved in advance in accordance with the Co-promotion

 

Portions of this Exhibit were omitted and
have been filed separately with the Secretary of the Commission pursuant to the
Company’s application requesting confidential treatment under Rule 24b-2 of the
Securities Exchange Act of 1934, as amended.

 

2

 

Guidelines.  SYNTA’s Sales
Representatives shall not modify, change or alter the promotional materials in
any way whatsoever without the express prior written consent of ROCHE.  SYNTA’s Sales Representatives shall use the
promotional materials solely for the purpose of performing their obligations
under this Agreement.  SYNTA shall
require that its Sales Representatives perform Co-promotion activities in
compliance with all applicable Laws and the Co-promotion Guidelines.

 

5.                                       Co-promotion
Costs.  If SYNTA exercises its right
to participate in the Co-promotion of one or more Licensed Products in the
United States pursuant to Section 5.3 of this Agreement, then ROCHE shall
reimburse SYNTA for all Sales Representative costs incurred by or on behalf of
SYNTA or its Affiliates in connection with the Co-promotion of the Co-promoted
Product in the United States for the applicable Indication.  Costs of SYNTA’s Sales Representatives shall
be determined on a full-time equivalent cost basis using the Sales
Representative FTE Rate.  SYNTA shall
invoice, on a quarterly basis, ROCHE for the costs of its Sales Representatives
to be paid by ROCHE and such invoice shall be paid by ROCHE within [***]
([***]) days after receipt thereof.

 

Portions of this Exhibit were omitted and
have been filed separately with the Secretary of the Commission pursuant to the
Company’s application requesting confidential treatment under Rule 24b-2 of the
Securities Exchange Act of 1934, as amended.

 

3

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