Document:

Exhibit
10.1

 

 

ASSIGNMENT
AND LICENSE AGREEMENT

 

THIS ASSIGNMENT AND LICENSE AGREEMENT (the “Agreement”) is made and
entered into effective as of April 6, 2004 (the “Effective Date”), by and
between CELLDEX THERAPEUTICS, INC., having principal offices at 519 Route 173
W, Bloomsbury, New Jersey 08804 (“Celldex”), MEDAREX, INC., having principal
offices at 707 State Road, Princeton, New Jersey 08540-1437 (“MI”),
and GENPHARM INTERNATIONAL, INC., a wholly-owned subsidiary of MI having
principal offices at 521 Cottonwood Drive, Milpitas, California 95035 (“GPI”
and together with MI, “Medarex”). 
Celldex and Medarex each may be referred to herein individually as a “Party,”
or collectively as the “Parties.”

WHEREAS, Medarex owns or otherwise controls certain technology, including
certain patents and know-how, relating to the use of antibodies in connection
with the research and development of vaccines;

WHEREAS, Medarex has determined that this technology and the
associated business opportunities are outside of Medarex’s core business and,
accordingly, can best be exploited through a separate corporate entity;

WHEREAS, Medarex has caused Celldex to be incorporated for this purpose;

WHEREAS, Medarex wishes to assign certain of the above-mentioned technology
and certain agreements and materials to Celldex and to grant certain licenses
to Celldex under certain other of the above-mentioned technology on the terms
and conditions set forth herein; and

WHEREAS, Celldex wishes to have such technology, agreements and materials
assigned to it and to have the licenses granted to it by Medarex under such
other technology on the terms and conditions set forth herein;

NOW, THEREFORE, in consideration of the foregoing premises and the
mutual promises and covenants contained herein and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged,
the Parties, intending to be legally bound, do hereby agree as follows:

ARTICLE
1

DEFINITIONS

1.1          “Additional Mice” shall mean (a) the mice
developed by Kirin Brewery Company, Ltd. (“Kirin”) using certain transchromosomal
technology and licensed to Medarex pursuant to the Collaboration and License
Agreement between Medarex and Kirin, dated September 4, 2002 (the “Kirin
Agreement”), and (b) the mice developed through the crossbreeding of
the HuMAb Mice with the mice described in clause (a) of this Section 1.1 and
licensed to Medarex pursuant to the Kirin Agreement.

1.2          “Affiliate” shall mean any Person that,
directly or indirectly, through one or more intermediaries, controls, is
controlled by, or is under common control with another Person.  For purposes of this definition only, “control”
and, with correlative meanings, the terms “controlled  by” and “under common control with”
shall mean (a) the possession, directly or indirectly, of the power to direct
the management or policies of a Person, whether through the ownership of

 

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voting securities
or by contract relating to voting rights or corporate governance, or (b) the
ownership, directly or indirectly, of at least fifty percent (50%) of the
voting securities or other ownership interest of a Person.  For purposes of this Agreement, neither
Medarex, Celldex, nor Genmab A/S shall be deemed to be an Affiliate of the
other(s); but for avoidance of doubt, MI and GPI shall be deemed to be
Affiliates of each other.

1.3          “Antibody Material” shall mean, with respect
to a particular Licensed Antibody or Anti-Mannose Receptor HuMAb Antibody, (a)
the nucleic acids (including DNA, RNA, and complementary and reverse
complementary nucleic acids thereto, whether intact or a fragment) that code
specifically for such Licensed Antibody or Anti-Mannose Receptor HuMAb Antibody
(or active fragments thereof) and do not code for multiple antibodies, or (b) a
host cell (other than a host cell obtained directly from the HuMAb Mice, or
parts of such mice) into which the nucleic acids described in clause (a) of
this Section 1.3 are introduced or are otherwise present, which cell is capable
of expressing such Licensed Antibody or Anti-Mannose Receptor HuMAb Antibody.

1.4          “Antibody Targeting Technology” shall mean
(a) those Patents set forth on Appendix B attached hereto (the “Antibody
Targeting Patents”), together with any Patents arising during the
Term covering Antibody Targeting Know-How, and (b) all Know-How Controlled by
Medarex as of the Effective Date related primarily to the Antibody Targeting
Technology Field or necessary or reasonably useful to utilize the Antibody
Targeting Patents existing as of the Effective Date (the “Antibody Targeting Know-How”).

1.5          “Antibody Targeting Technology Field” shall
mean the use of an antibody, or fragment thereof, whereby the antibody or
fragment serves as a targeting means with respect to an Antigen-Presenting Cell
for the purpose of modulating an immune response in any of the following
manners: (a) an antibody or fragment chemically attached or genetically fused
to an antigen (including an antigen that is an antibody, or fragment thereof,
that encodes an idiotype antigen), whereby the antibody, or fragment thereof,
serves as a targeting means for delivering such antigen to an
Antigen-Presenting Cell for the purpose of eliciting an immune response, (b) an
antibody or fragment chemically attached or genetically fused to a toxin or
radionuclide, whereby the antibody, or fragment thereof, serves as a targeting
means for delivering such toxin or radionuclide to an Antigen-Presenting Cell
for the purpose of decreasing, down-regulating or eliminating the activity of
such Antigen-Presenting Cell, (c) an antibody or fragment chemically attached
or genetically fused to a cytokine, adjuvant, or other immuno-modulatory
compound, whereby the antibody, or fragment thereof, serves as a targeting
means for delivering such compound to an Antigen-Presenting Cell for the
purpose of modulating the activity of such Antigen-Presenting Cell, and (d) an
antibody, or fragment thereof, alone, whereby the antibody or fragment binds to
a particular antigen on the surface of an Antigen-Presenting Cell and through
such binding modulates the activity of such Antigen-Presenting Cell.  For the avoidance of doubt, “Antibody
Targeting Technology Field” shall not include the use of a first
antibody, or fragment thereof, chemically attached or genetically fused to a
second antibody, or fragment thereof (except for a second antibody, or fragment
thereof, that encodes an idiotype antigen), whereby the first antibody, or
fragment thereof, serves as a targeting antibody to an Antigen-Presenting Cell
and the second antibody, or fragment thereof, attaches to an antigen, for the
purpose of eliciting an immune response. 
Further, with respect to Licensed Products comprising the Murine
Anti-CD64 Antibody(ies), “Antibody Targeting Technology Field” shall
not

 

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include Licensed Products
for diagnostic use, unless so agreed by the Parties in writing following
request by Celldex to obtain such rights and Medarex’s confirmation that no
Third Party retains blocking rights pursuant to an agreement with Medarex in
effect as of the time of such request.

1.6          “Antigen-Presenting Cell” shall mean
professional antigen-presenting cells that (i) present antigens in the groove
of major histocompatibility complex molecules to T cells and (ii) have
necessary co-stimulatory molecules to induce T cell activation; provided,
however, that for the purpose of clauses (b) and (d) of Section 1.5, Antigen
Presenting Cells shall in no event include B lymphocytes.  For the avoidance of doubt, Celldex may not
engage in the uses of an antibody, or fragment thereto, described in such
clauses (b) and (d) with respect to B lymphocytes.

1.7          “Anti-Mannose Product” shall mean any
pharmaceutical composition or formulation incorporating an Anti-Mannose
Receptor HuMAb Antibody.

1.8          “Anti-Mannose Receptor HuMAb Antibody” shall
mean (a) the fully human antibody known as B11, (b) any fully human
antibody(ies) raised in those HuMAb Mice set forth under the heading
“Anti-Mannose Receptor Immunized Mice” on Appendix D and that are
subsequently identified by amino acid sequence by Celldex and included herein
pursuant to Section 2.2.2, (c) any Research Antibody that is [*****] and
included herein pursuant to Section 3.3.1.2, and (d) any Improvements to any of
the foregoing.

1.9          “Assigned Contracts” shall have the meaning
set forth in Section 2.1.7.

1.10        “Assumed Liabilities” shall have the meaning
set forth in Section 2.3.1.

1.11        “Biological Materials” shall mean those
tissues, cells, cell lines, organisms, blood samples, genetic material, and
other biological substances and materials (a) set forth in Appendix C
attached hereto, with respect to the Licensed Antibodies, the Anti-Mannose
Receptor HuMAb Antibody and the Research Antibodies, including the Antibody
Materials with respect thereto, in each case that are within Medarex’s
possession or control as of the Effective Date or (b) identified by Celldex and
notified to Medarex pursuant to Section 2.7 and mutually agreed by the Parties,
pursuant to such Section 2.7, for inclusion in Biological Materials.  For the avoidance of doubt, to the extent
that any Biological Materials constitute Mice Materials for which the transfer
by Medarex is prohibited by the Cross License Agreement, usage thereof by
Celldex shall be as provided in Section 2.4.

1.12        “Calendar Quarter” shall mean each
three-month period commencing January 1, April 1, July 1 or October 1 during
the Term.

1.13        “Confidential Information” shall mean,
subject to the provisions of Article 5 hereof, any information, whether in
oral, written, graphic, electronic or tangible form, disclosed by one Party to
the other Party hereunder.

[*****] REPRESENTS CONFIDENTIAL PORTION WHICH HAS BEEN OMITTED AND
FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION. CONFIDENTIAL
TREATMENT HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS.

 

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1.14        “Control” shall mean, with respect to any
Know-How, Patent or other intellectual property right, possession of the right,
and whether by ownership, license or otherwise, to assign, or grant a license,
sublicense or other right to or under, such Know-How, Patent or right as
provided for herein without violating the terms of any agreement or other
arrangement with any Third Party.

1.15        “Cross License Agreement” shall mean that
certain Cross License Agreement dated March 26, 1997 by and between, on the one
hand, GPI and, on the other hand, Cell Genesys, Inc., Abgenix, Inc., Xenotech,
L.P. and Japan Tobacco Inc.

1.16        “First Commercial Sale” shall mean, with
respect to each Royalty-Bearing Product in each country, the first bona fide
commercial sale by Celldex, its Affiliates or Sublicensees of such
Royalty-Bearing Product following marketing approval in such country; provided,
that where such first commercial sale has occurred in a country for which
government pricing or government reimbursement approval is needed for
widespread commercial sale (for clarification, the Parties acknowledge that no
such approval is currently required in the United States), then such sales
shall not be deemed a First Commercial Sale until such pricing or reimbursement
approval has been obtained.

1.17        “GAAP” shall mean U.S. generally accepted
accounting principles, consistently applied.

1.18        “HuMAb Mouse®” shall mean any of Medarex’s
immunizable transgenic mice containing unrearranged human immunoglobulin heavy
and light chain transgenes, each inserted into mouse chromosomes, but excluding
the Additional Mice.  “HuMAb Mice®”
shall mean more than one HuMAb Mouse.

1.19        “HuMAb Technology” shall mean (a) all
Patents Controlled by Medarex, whether existing as of the Effective Date or
arising during the Term, that claim an invention which is necessary or
reasonably useful for the use of the HuMAb Mice to create antibodies in order
to develop, make, have made, import, have imported, use, offer for sale and
sell a Licensed Antibody or Anti-Mannose Receptor HuMAb Antibody or Licensed
Product or Anti-Mannose Product, including any Patents constituting any patented
HuMAb Know-How (the “HuMAb Patents”), and (b) any Know-How
Controlled by Medarex necessary or reasonably useful to use the HuMAb Mice or
for the exercise of the HuMAb Patents existing as of the Effective Date (the “HuMAb
Know-How”).  For the avoidance
of doubt, “HuMAb Technology” does not include:  (w) any claims within Patents of Medarex that claim processes,
compositions or technology to facilitate the manufacturing, purification,
evaluation, characterization, stability assessment, vialing and distribution,
and release of an antibody product; (x) any claims within Patents of Medarex
that claim (i) a specific composition of matter of a specific antigen, (ii) an
amino acid sequence of a specific antigen or (iii) a polynucleotide sequence of
a specific antigen; (y) any claims within Patents of Medarex that claim (i) a
specific composition of matter of a specific antibody other than a Licensed
Antibody or Anti-Mannose Receptor HuMAb Antibody, (ii) an amino acid sequence
of a specific antibody other than a Licensed Antibody or Anti-Mannose Receptor
HuMAb Antibody or (iii) a polynucleotide sequence encoding a specific antibody
other than a Licensed Antibody or Anti-Mannose Receptor HuMAb Antibody; and (z)
any Exploitation of (x) or (y).  For
purposes of this Section 1.19, “Exploitation” shall mean to make,

 

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have made, import,
use, sell, offer for sale, or otherwise dispose of, including all discovery
research, development, registration, modification, enhancement, improvement,
manufacture, storage, formulation, exportation, transportation, distribution,
promotion and marketing activities related thereto.

1.20        “Humanized Anti-CD64 Antibody” shall mean
that certain humanized antibody currently covered by Medarex Patent
No. US 6,500,931 and US Patent Publication No. 20030144483 and
identified as H22 and any Improvements thereto made by or on behalf of Celldex
or its Affiliates or Sublicensees.

1.21        “Hybridoma Cell Lines” shall mean (a) those
cell lines set forth on Appendix D attached hereto, (b) each other cell
line related to any Anti-Mannose Receptor HuMAb Antibody assigned to Celldex
hereunder and (c) each other cell line related to any Research Antibody
licensed to Celldex hereunder.

1.22        “Improvement” shall mean any modification to
an antibody, compound, product or technology, including any antibody, antibody
fragment, peptide mimetic or other composition of matter that is derived from
an antibody or information relating to such antibody (including its sequence,
structure or antigen interaction), or any discovery, device, process or
formulation related to such antibody, compound, product or technology, whether
or not patented or patentable, including any enhancement in the efficiency,
operation, manufacture, ingredients, preparation, presentation, formulation,
means of delivery, packaging or dosage of an antibody, compound, product or
technology, any discovery or development of any new or expanded indications or
applications for an antibody, compound, product or technology, or any discovery
or development that improves the stability, safety or efficacy of an antibody,
compound, product or technology.

1.23        “Know-How” shall mean all confidential,
proprietary and unpatented technical, biological, chemical, pharmacological,
toxicological, clinical, assay, scientific and other know-how and information,
trade secrets, knowledge, technology, means, methods, processes, practices,
formulae, instructions, skills, techniques, procedures, experiences, ideas,
technical assistance, designs, drawings, assembly procedures, computer
programs, apparatuses, specifications, data, results and other materials,
including high-throughput screening, gene expression, genomics, proteomics and
other drug discovery and development technology, pre-clinical and clinical
trial results, manufacturing procedures, test procedures and purification and
isolation techniques, whether to the foregoing or otherwise, and other
discoveries, developments, inventions and other intellectual property, in each
case whether in written, electronic or any other form now known or hereafter
developed, and including any Improvements to the foregoing.

1.24        “Liabilities” shall mean any and all
liabilities of any nature, whether known or unknown, asserted or unasserted, absolute
or contingent, accrued or unaccrued, liquidated or unliquidated, or due or to
become due.

[*****] REPRESENTS CONFIDENTIAL PORTION WHICH HAS BEEN
OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.
CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS.

 

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1.25        “Licensed Antibody” shall mean a Licensed
Royalty-Bearing Antibody or a Licensed Royalty-Free Antibody.  A “Licensed Royalty-Bearing Antibody” shall
mean any Research Antibody (other than any Research Antibody directed against a
mannose receptor target) determined to be available pursuant to Section
3.3.1.3.  A “Licensed Royalty-Free Antibody”
shall mean any Murine Anti-CD64 Antibody and any Humanized Anti-CD64 Antibody.

1.26        “Licensed Product” shall mean a Licensed
Royalty-Bearing Product or a Licensed Royalty-Free Product. “Licensed
Royalty-Bearing Product” shall mean any pharmaceutical composition
or formulation incorporating one or more Licensed Royalty-Bearing Antibodies. “Licensed
Royalty-Free Product” shall mean any pharmaceutical composition or
formulation incorporating one or more Licensed Royalty-Free Antibodies.

1.27        “MDX-1307” shall mean the
antibody-antigen fusion
protein comprised of the Anti-Mannose Receptor HuMAb Antibody (B11) coupled by
recombinant DNA technology via its heavy chain to hCG-β for which Medarex
has filed an Investigational New Drug Application.

1.28        “Medarex Technology” shall mean (a) those
Patents set forth on Appendix A attached hereto, together with any
Patents arising during the Term covering Medarex Know-How (“Medarex
Patents”), and (b) any Know-How Controlled by Medarex as of the
Effective Date that is  necessary or
reasonably useful to utilize the Medarex Patents or to produce the Licensed
Products (“Medarex Know-How”).

1.29        “Mice Materials” shall mean the HuMAb Mice
and the Additional Mice, any parts or derivatives of such mice, including
Hybridoma Cell Lines, hybridomas, cells, genetic material, including nucleotide
sequences (e.g., DNA, RNA, and complementary and reverse complementary
nucleotide sequences thereto, whether coding or non-coding) with respect to the
expression of an antibody or fragment thereof, and any replicates or
modifications thereof or Improvements thereto (e.g., additions, deletions or
substitutions of nucleotides therein), or other biological materials derived
directly or indirectly from the HuMAb Mice or the Additional Mice, but
excluding any Licensed Antibodies and Anti-Mannose Receptor HuMAb Antibodies,
and Antibody Materials related thereto.

1.30        “Murine Anti-CD64 Antibody” shall mean those
certain mouse antibodies currently covered by Medarex Patent No. 4, 954,
617 and identified as M22, M32.2 and 197, and any Improvements thereto made by
or on behalf of Celldex or its Affiliates or Sublicensees.

1.31        “Net Sales” shall mean the following,
calculated in accordance with GAAP:  the
amount invoiced by Celldex and its Affiliates and Sublicensees for the
worldwide sale of Royalty-Bearing Product(s) to Third Parties, less deductions
for:

1.31.1     normal and customary trade, prompt payment, quantity,
volume and cash discounts, sales returns and allowances and price reductions,
including (a) those granted on

[*****] REPRESENTS CONFIDENTIAL PORTION WHICH HAS BEEN
OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.
CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS.

 

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account of price
adjustments, billing errors, rejected goods, damaged goods, returns and
rebates, (b) administrative and other fees and reimbursements and similar
payments directly related to the sale or delivery of Royalty-Bearing Product(s)
paid to wholesalers and other distributors, buying groups, pharmacy benefit
management organizations, health care insurance carriers and other
institutions, (c) allowances, rebates and fees directly related to the sale or
delivery of Royalty-Bearing Product(s) paid to distributors and (d) chargebacks;

1.31.2     freight, postage, shipping, insurance and other
transportation costs to the extent that such items are included in the amount
invoiced;

1.31.3     customs and excise duties and other duties related to
the sales to the extent that such items are included in the amount invoiced;

1.31.4     rebates and similar payments made with respect to
sales paid for or reimbursed by any governmental or regulatory authority such
as, by way of illustration and not in limitation of the Parties’ rights
hereunder, federal or state Medicaid, Medicare or similar state program, local
program,  or equivalent foreign
governmental program;

1.31.5     sales and other taxes and duties directly related to
the sale or delivery of Royalty-Bearing Product(s) (but not including taxes
assessed against the income derived from such sale) to the extent that such
items are included in the amount invoiced;

1.31.6     amounts written off for bad debt, in each case
determined in accordance with normal internal accounting practices and GAAP,
consistently applied;

1.31.7     distribution costs and expenses to the extent that
such items are included in the amount invoiced;

provided, that with respect to the deductions specified in
subsections 1.31.1 through 1.31.7 above, an amount shall be deducted only once
regardless of how many categories may apply to it.

 

Any of the deductions listed above that involves a payment by Celldex
or its Affiliates or Sublicensees shall be taken as a deduction in the Calendar
Quarter in which the payment is accrued by such entity.  For purposes of determining Net Sales, the
Licensed Product(s) shall be deemed to be sold when invoiced and a “sale” shall
not include transfers or dispositions for charitable, promotional,
pre-clinical, clinical, regulatory or governmental purposes.

 

For purposes of calculating Net Sales of Licensed Products, sales
between or among Celldex or its Affiliates or Sublicensees shall be excluded
from the computation of Net Sales, but sales by Celldex or its Affiliates or
its Sublicensees to Third Parties shall be included in the computation of Net
Sales.

 

In the event a Royalty-Bearing Product is sold as part of a combination
product, the Net Sales from the combination product, for the purposes of
determining royalty payments, shall be determined by multiplying the Net Sales
of the combination product, during the applicable royalty reporting period, by
the fraction, A/A+B, where A is the average per unit sale price of

 

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active ingredient contained in the Royalty-Bearing Product, when sold
separately in finished form in the country in which the combination product is
sold and B is the average per unit sale price of active ingredient contained in
the other product(s) included in the combination product when sold separately
in finished form in the country in which the combination product is sold, in
each case during the applicable royalty reporting period or, if sales of the
Royalty-Bearing Product alone did not occur in such period, then in the most
recent royalty reporting period in which arms length fair market sales of such
Royalty-Bearing Product occurred.  In
the event that such average sale price cannot be determined for the
Royalty-Bearing Product, on the one hand, and all other product(s) included in
the combination product, on the other, Net Sales for the purposes of
determining royalty payments shall be mutually agreed upon by the Parties based
on the relative value contributed by each component, such agreement to be
negotiated in good faith. 
Notwithstanding the foregoing, if the application of the foregoing
computation results in a reduction of royalties that would have been payable to
Medarex hereunder but for such application, such reduction shall not exceed
[*****] of the royalties that would have been payable to Medarex hereunder but
for such application.

 

1.32        “Patent” shall mean all United States and
foreign patents and patent applications, including any continuations,
continuations-in-part, divisions, provisionals, substitutions or the like, any
patent issued with respect to any such patent applications, any reissue,
reexamination, renewal, extension or the like (including any supplementary
protection certificate) of any such patent, and any confirmation patent or
registration patent or patent of addition based on any such patent, including,
as applicable, portions thereof or individual claims therein.

1.33        “Person” shall mean an individual, sole
proprietorship, partnership, limited partnership, limited liability
partnership, corporation, limited liability company, business trust, joint
stock company, trust, unincorporated association, joint venture or other
similar entity or organization, including a government or political
subdivision, department or agency of a government.

1.34        “Research Antibodies” shall mean (a) fully
human antibody(ies) raised in the HuMAb Mice [*****] and (b) fully human
antibody(ies) raised in those HuMAb Mice set forth [*****] on Appendix D
and that are [*****] and included herein pursuant to Section 3.3.1.3 and (c)
any Improvements to any of the foregoing.

1.35        “Research Patent” shall mean that certain
Patent set forth on Appendix A [*****].

1.36        “Royalty-Bearing Product” shall mean a
Licensed Royalty-Bearing Product or an Anti-Mannose Product.

1.37        “Sublicensee” shall mean a Third Party to
whom Celldex or its Affiliate has granted a sublicense to develop, make, have
made, import, use, sell, offer for sale or otherwise exploit Licensed Products.

[*****] REPRESENTS CONFIDENTIAL PORTION WHICH HAS BEEN
OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.
CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS.

 

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1.38        “Third Party” shall mean any Person other
than Medarex, Celldex or their respective Affiliates.

1.39        “Valid Claim” shall mean any claim of an
issued patent included in a granted and unexpired Medarex Patent, Antibody
Targeting Patent or HuMAb Patent that (a) has not been revoked or held
unenforceable or invalid by a decision of a court or other governmental agency
of competent jurisdiction, which decision is unappealable or unappealed within
the time allowed for appeal, and (b) has not been abandoned, disclaimed, denied
or admitted to be invalid or unenforceable through reissue or disclaimer or
otherwise.

ARTICLE 2

ASSIGNMENT

2.1          Medarex Assignment. 
Medarex hereby irrevocably, perpetually and forever assigns and conveys
to Celldex, and Celldex hereby accepts and assumes, Medarex’s (and its
Affiliates’) entire right, title and interest in and to each of the following
(subject to additions or deletions pursuant to Section 2.7, the “Assigned
Assets”):

2.1.1       Antibody Targeting Patents;

2.1.2       Antibody Targeting Know-How;

2.1.3       Anti-Mannose Receptor HuMAb Antibodies;

2.1.4       subject to Section 2.2.3, the Investigational New Drug
Application # 11,508  and related
governmental filings, and the right to make any future or foreign related
filing on MDX-1307 (the “MDX-1307 IND”);

2.1.5       all quantities of Biological Materials, including
those in the possession or control of counterparties to Assigned Contracts;

2.1.6       all clinical inventories of MDX-1307 in the possession
or control of Medarex as of the Effective Date; and

2.1.7       the agreements set forth on Schedule 2.1.7
(collectively, the “Assigned Contracts”), true and correct
copies of which have previously been provided to Celldex.

2.2          Cooperation.

2.2.1       Consents. 
Notwithstanding anything to the contrary contained in this Agreement, if
the assignment and conveyance or attempted assignment and conveyance to Celldex
of any of the Assigned Assets requires any authorizations, approvals, consents
or waivers from a Third Party or governmental or regulatory authority and such
authorizations, approvals, consents or waivers shall not have been obtained prior
to the Effective Date, then Medarex shall take such reasonable actions as are
reasonably necessary to obtain such authorizations, approvals, consents or
waivers as promptly as practicable following the Effective Date and to provide
to Celldex, pending the receipt thereof, the benefit of such Assigned Assets,

 

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as the case may
be; provided, that Celldex shall cooperate with Medarex as reasonably
requested by Medarex to assist in such efforts to obtain such authorizations,
approvals, consents or waivers.  With
respect to any Assigned Contracts, Medarex shall not be required to pay any
consideration not provided for in such Assigned Contract to obtain such
authorization, approval, consent or waiver, and the Parties agree that
Medarex’s obligation pursuant to this Section 2.2.1 to take “such reasonable
actions as are reasonably necessary” shall not otherwise be deemed to require
any payment of money or other consideration by Medarex to any Third Party.  To the extent that Celldex is provided the
benefits pursuant to this Section 2.2.1 of any Assigned Contract, Celldex shall
(x) perform for the benefit of the Third Parties thereto the obligations of
Medarex or any Affiliate of Medarex thereunder, including any payments to be
made thereunder and (y) shall satisfy any related obligations and Liabilities
with respect to such Assigned Contract that, but for the lack of an
authorization, approval, consent or waiver to assign such obligations or
Liabilities to Celldex, would be Assumed Liabilities (as defined in Section
2.3.1 below).  If authorization,
approval, consent or waiver for the assignment or conveyance of any such asset
not assigned or conveyed at the Effective Date is subsequently obtained,
Medarex shall assign and convey such asset to Celldex at no additional cost to
Celldex.

2.2.2       Identification of Anti-Mannose Receptor
HuMAb Antibodies (other than B11).  The Parties
further acknowledge that work is ongoing as of the date hereof in respect of
the Anti-Mannose Receptor HuMAb Antibodies. 
As such, the Parties agree that, in respect of any fully human
antibody(ies) raised in the HuMAb Mice against the mannose receptor antigen
that have been produced [*****], Celldex may, following the Effective Date,
[*****].  Upon such [*****], each such
antibody shall be deemed an Anti-Mannose Receptor HuMAb Antibody.

2.2.3       Transfer of IND. 
Medarex and Celldex shall cooperate to make all required regulatory
filings to transfer the MDX-1307 IND to Celldex.  Such cooperation shall include agreement in respect of the timing
of such transfer, it being acknowledged that, as of the Effective Date, Celldex
may not be in a position to assume the management of the MDX-1307 IND.  Until such time as the MDX-1307 IND is
transferred to Celldex, Medarex shall hold the MDX-1307 IND in trust for
Celldex, and Celldex and Medarex may agree that Medarex perform certain
regulatory responsibilities relating to the MDX-1307 IND under that certain
Master Services Agreement being executed by the Parties contemporaneously
herewith.

2.3          Assumed Liabilities, Retained
Liabilities and Taxes.

2.3.1       Assumed Liabilities; Retained Liabilities. 
Celldex shall, and does hereby agree to, assume, satisfy, perform, pay
and discharge (a) all Liabilities and obligations that Celldex has expressly
assumed or agreed to assume or perform under this Agreement, (b) all
Liabilities and obligations under or pursuant to the Assigned Contracts
attributable to the exercise of rights thereunder by Celldex after the
Effective Date, and (c) all Liabilities and obligations that arise out of or
are related to the use or ownership of Biological Materials by Celldex after
the Effective Date (collectively, the “Assumed Liabilities”).  All Liabilities and

[*****] REPRESENTS CONFIDENTIAL PORTION WHICH HAS BEEN
OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.
CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS.

 

10

 

obligations (x)
under or pursuant to the Assigned Contracts relating to periods prior to the
Effective Date or (y) relating to the use or ownership of Biological Materials
by Medarex prior to the Effective Date shall be retained by Medarex
(collectively, the “Retained Liabilities”).

2.3.2       Taxes.  Celldex
shall be solely responsible for all sales, use, transfer, value added, gross
receipts and other similar taxes, if any, arising out of the Assumed
Liabilities.  Medarex shall be solely
responsible for all sales, use, transfer, value added, gross receipts and other
similar taxes, if any, arising out of the Retained Liabilities.  The Parties shall share equally all sales,
use, transfer, value added, gross receipts and other similar taxes, if any, arising
out of the assignment and conveyance by Medarex and its Affiliates of the
Assigned Assets to Celldex pursuant to this Agreement; it being acknowledged
and specifically agreed, however, that Celldex shall have no responsibility
for, and Medarex shall be solely responsible for, any tax payable on any income
or gain of Medarex or its Affiliates arising from the assignment and conveyance
of the Assigned Assets.

2.4          Transfer of Existing Quantities of
Biological Materials.  Within ten (10) business days after written
notice by Celldex to Medarex that Celldex has obtained appropriate facilities
and can take possession of the Biological Materials (such written notice to be
provided by Celldex to Medarex not more than one hundred eighty (180) days
after the Effective Date, with consent to any request by Celldex for an
extension of such 180-day time period not to be unreasonably withheld by
Medarex, provided that Celldex shall not request any extensions for a total of
longer than two (2) years after the Effective Date), Medarex shall provide to
Celldex all quantities of Biological Materials identified as of the Effective
Date; provided, that physical possession of those quantities of the
Humanized Anti-CD64 Antibody that have been provided to Third Parties pursuant
to certain of the Assigned Contracts shall remain with such Third Parties;  To the extent that any Biological Materials
constitute Mice Materials for which the transfer of title by Medarex is
prohibited by the Cross License Agreement, Medarex shall retain ownership but
provide to Celldex full and complete access thereto and usage thereof.

2.5          Information Disclosure and Document
Transfer.

2.5.1       Within ten (10) business days after the Effective
Date, Celldex shall provide to Medarex a schedule, to be attached hereto as Schedule
2.5.1, of the laboratory notebooks, reports and other written materials
relating solely to any of the Antibody Targeting Technology, the Anti-Mannose
Receptor HuMAb Antibodies, the Biological Materials and/or the Licensed
Antibodies that Celldex wishes to obtain complete copies of from Medarex.  Medarex shall consider the contents of such Schedule
2.5.1 in good faith and if Medarex agrees that the contents of such
schedule do relate solely to the aforementioned materials, Medarex shall,
without additional compensation and at Medarex’s sole expense, deliver to
Celldex copies of such materials.  In
the event that Medarex does not agree with respect to any of the items on such Schedule
2.5.1, Medarex shall so notify Celldex and the Parties shall discuss in
good faith an appropriate resolution to such disagreement.  Notwithstanding the foregoing, Medarex
agrees that where a dispute is as to whether a requested item relates “solely”
to the aforementioned materials, Medarex shall be entitled to withhold during
such good faith negotiations only those materials the relationship of which are
in dispute.  Where the Parties are not
able to agree, the provisions of Section 10.4 shall apply.

 

11

 

2.5.2        Within ten (10) business days after the Effective
Date, Celldex shall provide to Medarex a schedule, to be attached hereto as Schedule
2.5.2, of the laboratory notebooks, reports and other written materials
relating to both (x) any of the Antibody Targeting Technology, the Anti-Mannose
Receptor HuMAb Antibodies, the Biological Materials and/or the Licensed
Antibodies, and (y) any other Medarex projects.  Medarex shall consider the contents of such Schedule 2.5.2
in good faith and if Medarex agrees that the contents of such schedule do relate
to any of the Antibody Targeting Technology, the Anti-Mannose Receptor HuMAb
Antibodies, the Biological Materials and/or the Licensed Antibodies, Medarex
shall, without additional compensation and at Medarex’s sole expense, deliver
to Celldex copies of such materials in redacted form.  In the event that Medarex does not agree with respect to any of
the items on such Schedule 2.5.2, Medarex shall so notify Celldex and
the Parties shall discuss in good faith an appropriate resolution to such
disagreement. Where the Parties are not able to agree, the provisions of
Section 10.4 shall apply.

2.5.3       Medarex shall provide Celldex with access, during
normal business hours, on each day of the ten (10)-day periods described in
Sections 2.5.1 and 2.5.2, to such of the offices and records of Medarex and its
Affiliates as may be reasonably necessary to permit Celldex to prepare Schedule
2.5.1 and Schedule 2.5.2.

2.5.4       Medarex shall maintain the original unredacted
versions of all of the laboratory notebooks and other written materials set
forth on Schedule 2.5.1 and Schedule 2.5.2 in secure storage
either at the Medarex facility or another secure site until the third
anniversary of the Effective Date; provided, that, in the case of the
foregoing Sections 2.5.1 and 2.5.2, if after the third anniversary Medarex does
not wish to maintain secure storage of such original laboratory notebooks or
other written materials, then it shall so notify Celldex, and Celldex may (but
shall not be obligated to) request that Medarex, at Medarex’s choice and at
Celldex’s cost, either (x) maintain such original laboratory notebooks or other
written materials in such secure storage facilities or (y) transfer such
original laboratory notebooks or other written materials to Celldex.  In the event that Celldex provides Medarex
with written notice that it requires copies of any redacted portion of any
original laboratory notebooks or other written materials held by Medarex for
purposes of Patent-related activities, including, Patent prosecution, maintenance,
enforcement, conduct of interferences or defense with respect to the Antibody
Targeting Patents, or other legal activities, Medarex will make such redacted
portion available for inspection for the sole purpose for which such materials
are requested; provided, that (A) the inspection is an in camera
inspection by a judge, government official or independent Third Party, or is
pursuant to an appropriate protective order or confidentiality agreement
governing the confidentiality of such materials, in each case which, in
Medarex’s sole opinion and discretion, would not impair Medarex’s rights in the
confidential information contained therein that is unrelated to the any of the
Antibody Targeting Technology, the Anti-Mannose Receptor HuMAb Antibodies, the
Biological Materials and/or the Licensed Antibodies, and (B) such inspection be
on such other terms so as not to violate the terms of any agreement between
Medarex and a Third Party.

2.5.5       The Parties acknowledge and agree that the materials
provided to Celldex pursuant to this Section 2.5 are provided by Medarex “as
is” and that Medarex makes no representations or warranties of any kind, either
express  or implied, with respect to
such materials including warranties of merchantability or fitness for a particular
purpose, or that the use of such materials will not infringe any Patent,
copyright, trademark or other proprietary

 

12

 

rights; provided,
that the foregoing shall in no way limit Medarex’s representations and
warranties set forth in Section 9.3.

2.6          Technical Assistance. 
Medarex shall cooperate with any and all reasonable requests for
assistance from Celldex regarding the materials, information and documents
transferred to Celldex pursuant to Sections 2.2.3, 2.4 and 2.5 for two (2)
years following the Effective Date. 
Celldex shall pay Medarex for such cooperation and activities with
respect thereto at the hourly rate (including a reasonable allocation for payroll
taxes, health insurance, and other standard fringe benefits) of the Medarex
employee performing such activities plus an additional ten percent (10%)
surcharge with respect to such hourly rate. 
Such cooperation shall include making Medarex’s employees available upon
reasonable notice during normal business hours at Medarex’s place of business
or other mutually agreed location to consult with Celldex on issues arising
with respect to such materials, information and documents.  Medarex will use its reasonable efforts to
arrange for consultants and other scientific staff to be available to consult
with Celldex at such consultants’ then current hourly rates, to be paid by
Celldex.

2.7          Further Assurances with Respect to the
Celldex Focus Area.  The Parties agree that, as of the Effective
Date, Celldex is focused on the research, development and commercialization of
(i) therapeutic vaccines that modulate a patient’s natural immune response to
tumor or disease related proteins, by delivering such proteins directly to
dendritic cells or macrophages and (ii) immunomodulatory products that modulate
the activities of dendritic cells and macrophages for the treatment of
autoimmune diseases, infectious diseases or cancer (the “Celldex Focus Area”).
 The Parties acknowledge that this Agreement, including the list and
details of the Assigned Assets and the Schedules hereto, is a good faith effort
by the Parties under the circumstances to identify, as of the Effective Date,
all items and rights to be assigned or licensed to Celldex by Medarex hereunder
with respect to the Celldex Focus Area, but that such effort may be incomplete
or may be over-inclusive or under-inclusive with respect to such assignments
and licenses.  In the event that, at any time and from time to time during
the twenty-four (24) month period after the Effective Date, (a) Celldex in good
faith identifies additional items (including Biological Materials) or rights
within the Celldex Focus Area that were owned or controlled by Medarex as of
the Effective Date and that Celldex believes should have been assigned,
licensed or physically transferred to Celldex by Medarex pursuant to this
Agreement but which were not so assigned, licensed or physically transferred,
or (b) Medarex determines in good faith that it requires items or rights
outside the Celldex Focus Area, which items or rights were assigned,
exclusively licensed or physically transferred (and, in the case of physical
transfer, no original or copy remains with Medarex from which Medarex can
produce duplicates) to Celldex pursuant to this Agreement, then, in the case of
either (a) or (b), the applicable Party shall notify the other Party in writing
with respect to the relevant items or rights, providing in such notice a
detailed explanation and the requested resolution with respect to such items or
rights.  Thereafter, the Parties shall
negotiate in good faith an appropriate outcome with respect to the identified
items or rights; provided, that in any event any return or grant back to
Medarex by Celldex must first be approved by Celldex’s Conflict of Interest
Committee (or such other committee as is comprised solely of independent
directors); and provided, further, that in the event that the Parties are
unable to agree upon such appropriate outcome, then the non-requesting Party
shall have the right to make the final determination with respect to the
resolution of such request.  For
avoidance of doubt, the definition and use of the term “Celldex Focus Area” is

 

13

 

strictly for
purposes of this Section 2.7 and shall not be deemed to limit in any way any
grant hereunder or any ability of Celldex to engage in its business after the
Effective Date.

ARTICLE
3

LICENSES TO CELLDEX; RETAINED RIGHTS.

3.1          Licensed Products.

3.1.1       Subject to the terms and conditions of this Agreement,
Medarex hereby grants to Celldex an exclusive, worldwide, royalty-free (with
respect to Medarex) license, with the right to sublicense as provided in
Section 3.8.1, under the Medarex Technology to research, develop, make, have made,
use, sell, offer for sale and import Licensed Royalty-Free Products solely in
the Antibody Targeting Technology Field. 
The Parties acknowledge and agree that (i) the license granted pursuant
to this Section 3.1.1 is granted solely under the Medarex Technology and (ii)
Celldex has sole responsibility to obtain from Third Parties any rights that it
may require with respect to the Patents and other intellectual property that
covers the Licensed Royalty-Free Antibodies and the process by which such Licensed
Royalty-Free Antibodies were created.

3.1.2       Subject to the terms and conditions of this Agreement,
Medarex hereby grants to Celldex an exclusive, worldwide, royalty-bearing (as
set forth in Article 4) license, with the right to sublicense as provided in Section
3.8.1, under the HuMAb Technology and the Medarex Technology to research,
develop, make, have made, use, sell, offer for sale and import (a) Licensed
Royalty-Bearing Products solely in the Antibody Targeting Technology Field and
(b) Anti-Mannose Products.

3.2          Hybridoma Cell Lines; Research License.

3.2.1       Medarex hereby grants to Celldex an exclusive,
worldwide, royalty-free license, with the right to sublicense as provided in
Section 3.8.1, under the HuMAb Technology to research, make, have made, transfer
physical possession of (but not to sell, lease, offer to sell or lease, or
otherwise transfer title to) the Hybridoma Cell Lines.

3.2.2       Medarex hereby grants to Celldex a non-exclusive,
worldwide, royalty-free license, with the right to sublicense as provided in
Section 3.8.1, under the Research Patent to conduct research.

3.3          Research Antibodies.

3.3.1.1          License.  Subject to
the terms and conditions of this Agreement, Medarex hereby grants to Celldex an
exclusive, worldwide, royalty-free license, without the right to sublicense,
under the HuMAb Technology and the Medarex Technology to use the Research
Antibodies for the sole purpose of determining the antigen with respect to
which each Research Antibody was raised. 
The process by which Celldex will make such determination shall be as
set forth on Appendix E.

 

14

 

3.3.1.2          Mannose Antigen Determination. 
In the event that Celldex determines pursuant to the process set forth
on Appendix E that the antigen against which a Research Antibody was
raised is the mannose receptor antigen, such antibody shall no longer be deemed
a Research Antibody, but, subject to Section 3.4, shall be deemed an
Anti-Mannose Receptor Antibody.

3.3.1.3          Other Antigen Determination. 
In the event that Celldex determines pursuant to the process set forth
on Appendix E the antigen against which a Research Antibody was raised
(each, a “Research
Antibody Target”) and such Research Antibody Target is not the
mannose receptor antigen, Celldex shall have the right to request that Medarex
determine availability of an antibody-exclusive commercial license pursuant to
Section 3.4.  In the event that (i) such
license is available with respect to such Research Antibody and (ii) the right
to use the applicable Research Antibody Target with the HuMAb Technology does
not conflict with any right previously granted by Medarex, then Medarex does
hereby grant to Celldex, subject to the terms and conditions of this Agreement,
an antibody-exclusive, antigen-nonexclusive, worldwide, royalty-bearing (as set
forth in Article 4) license, with the right to sublicense as provided in
Section 3.8, under HuMAb Technology and the Medarex Technology to make, have
made, use, sell, offer for sale and import Licensed Products comprising such
Research Antibody in the Antibody Targeting Technology Field.

3.4          HuMAb Technology License Availability. 
In the event Celldex desires to obtain an assignment of a given
Anti-Mannose Receptor HuMAb Antibody pursuant to Section 2.2.2 or 3.3.1.2 or a
license to a given Research Antibody pursuant to Section 3.3.1.3, Celldex shall
provide Medarex with a detailed written description of [*****] and such other
information as Medarex may reasonably request. 
Within thirty (30) days of receipt of all such information, Medarex
shall determine whether or not it can effect such assignment or license.  Medarex shall not be obligated to effect a
requested assignment or license only if, at the time the assignment or license
is requested by Celldex, Medarex is (i) already conducting an internal program
with respect to such antigen or antibody (either alone or with a collaborator),
(ii) in discussions with a Third Party in good faith to obtain or grant
exclusive rights to such antigen or antibody, or (iii) legally prohibited from
granting such assignment or license, whether pursuant to a Third Party
agreement or otherwise.

3.5          Covenant Not to License or Use;
Medarex Option.

3.5.1       Notwithstanding anything to the contrary in this
Agreement and notwithstanding any rights Medarex may have to do so, [*****]
Medarex has granted a license to Celldex with respect to such Research Antibody
pursuant to Section 3.3.1.3, Medarex agrees that it will not thereafter license
to any Third Party, use or permit any of its Affiliates to use such Research
Antibody outside the Antibody Targeting Technology Field (it being understood
that Celldex has exclusive rights thereto in the Antibody Targeting Technology
Field).

[*****] REPRESENTS CONFIDENTIAL PORTION WHICH HAS BEEN
OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.
CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS.

 

15

 

3.5.2       In the event that a claim issues in [*****], including
any divisionals, continuations, continuation-in-parts, reissues and/or
reexaminations of the foregoing, and/or any foreign counterpart applications of
the foregoing, (the “Option Patents”), then Celldex shall
promptly thereafter notify Medarex of such claim issuance, including a copy of
the issued claim and any file history relating thereto.  Any claim issuing from the Option Patents,
whether composition or method, which is not specifically and solely directed to
(i) the mannose receptor, including claims reciting mannose receptor
antibody(ies), fragments and sequences, or (ii) an antibody, or fragment
thereof, whereby the antibody or fragment serves as a targeting means with
respect to an Antigen-Presenting Cell for the purpose of modulating an immune
response in the manner described in clause (a) or (c) of Section 1.5, shall be
deemed to be an “Option Claim”.  Celldex
hereby grants to Medarex an option to obtain a worldwide, non-exclusive,
royalty-free, fully paid up license, with the right to sublicense, under the
Option Patents to research, develop, make, use, sell, offer for sale, and
import any product falling under an Option Claim, other than a product
described by clause (i) or (ii) above. 
If Medarex elects, in its sole discretion, to exercise such option,
Medarex shall notify Celldex of such election and upon the providing of such
notice, Celldex shall automatically be deemed to grant such license to
Medarex.  Notwithstanding the foregoing,
Medarex may not exercise an option, and shall not be entitled to a license
hereunder, with respect to a claim in the Option Patents to the extent such
claim is a composition of matter claim that specifically and solely claims the
amino acid sequence of a single specific antibody.

3.6          Future Medarex Antigens. 
In the event that, before the third anniversary of the Effective Date,
Medarex in-licenses rights with respect to antigens, which in-license expressly
states and includes “vaccine rights”, then within thirty (30) days of
in-licensing such rights, Medarex shall provide written notice to Celldex of
such event unless Medarex is prohibited from providing such notice and, unless
Medarex is prohibited from doing so, and, if mutually agreed to by the Parties
in accordance with the provisions of this Section 3.6, Medarex shall grant
rights within the Antibody Targeting Technology Field to Celldex with respect
to such antigens, pursuant to the terms of any Third Party agreement under
which Medarex has licensed such rights. 
Within fifteen (15) days of receiving such notice, Celldex shall provide
written notice to Medarex whether it desires to negotiate with respect to such
rights within the Antibody Targeting Technology Field.  In the event that Celldex does so desire,
the Parties thereafter shall negotiate in good faith the terms pursuant to
which Medarex may grant an exclusive or non-exclusive, royalty-bearing license
to Celldex with respect to the applicable antigen in the Antibody Targeting
Technology Field.

3.7          Existing Grants; No Other Rights.

3.7.1       Celldex acknowledges and agrees that, pursuant to the
terms of the Cross License Agreement, Medarex has granted a non-exclusive
license under certain Medarex patents to develop and commercialize antibody
products with respect to antigens, which antibody product(s) could comprise the
same antibody(ies) as a Licensed Antibody(ies) hereunder.

[*****] REPRESENTS CONFIDENTIAL PORTION WHICH HAS BEEN
OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.
CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS.

 

16

 

3.7.2       Other than the rights expressly granted under this
Agreement, Celldex and its Affiliates shall have no other right, express or
implied, under the HuMAb Technology, the Medarex Patents, or any other
technology Controlled by Medarex, and Medarex shall retain for itself all such
rights.

3.8          Sublicenses.

3.8.1       Subject to Section 3.8.2, Celldex may grant
sublicenses under the licenses granted to Celldex in Sections 3.1, 3.2 and 3.3
to the extent necessary to research, develop, make, have made, use, sell, offer
for sale or import Licensed Royalty-Free Products and Royalty-Bearing Products;
provided, that within ten (10) days of the date any such sublicense is
executed, Celldex shall provide Medarex with at least the following information
with respect to each such Sublicensee: (a) the identity of the Sublicensee, (b)
a description of the Licensed Royalty-Free Products and Royalty-Bearing Product
and the rights being granted to the Sublicensee, and (c) the territory in which
the Licensed Royalty-Free Products and Royalty-Bearing Product will be
sold.  Each sublicense granted by
Celldex shall be consistent with and subject to all the terms and conditions of
this Agreement.  Celldex shall remain
responsible to Medarex for the compliance of each such Sublicensee with the
applicable financial, confidentiality and other obligations due under this
Agreement; provided, that with respect to obligations of confidentiality
and indemnification, Celldex shall use commercially reasonable efforts to have
such Sublicensee and Medarex enter into a direct mutual obligation.

3.8.2       The Parties recognize that, pursuant to the Cross
License Agreement, Medarex may not grant Celldex the right to directly grant
sublicenses under certain HuMAb Technology that is covered by the Cross License
Agreement to sell, lease, and offer for sale or lease Royalty-Bearing
Products.  So long as such provisions
are in effect, if Celldex grants or desires to grant a sublicense to a
particular Sublicensee under the HuMAb Technology pursuant to Sections 3.1, 3.2
or 3.3  to
sell, lease, and offer for sale or lease a particular Royalty-Bearing Product,
then Medarex shall enter into an agreement with such Sublicensee which grants a
direct license to such Sublicensee under such of the HuMAb Technology that is
covered by the Cross License Agreement to sell, lease, and offer for sale or
lease such Royalty-Bearing Product on the same terms and conditions as the
sublicense granted by or desired to be granted by Celldex to such Sublicensee
(“Direct
Sublicense Agreement”); provided, that each such Direct
Sublicense Agreement granted by Medarex shall: (a) be consistent with all the
terms and conditions of this Agreement, (b) provide that all performance
obligations of such Sublicensee, including with respect to development and
commercialization of Royalty-Bearing Products and payment of amounts owing
under the sublicense granted to such Sublicensee by Celldex, shall be owed to
Celldex and not to Medarex, (c) not conflict with any of the rights granted
under this Agreement, (d) provide that Celldex is a third party beneficiary
under such Direct Sublicense Agreement, with the right, at Celldex’s expense,
to enforce the terms and conditions of such Direct Sublicense Agreement against
such Sublicensee, including the right to collect all monies due to Celldex from
such Sublicensee under such Direct Sublicense Agreement, and (e) be subject to
Celldex’s approval, such approval not to be unreasonably withheld.  Further, it is understood and agreed by
Celldex that, in such sublicense granted by Celldex to such Sublicensee,
Celldex shall make the rights related to such certain HuMAb Technology granted
by Medarex to Celldex subject to such direct license granted by Medarex to such
Sublicensee, to the extent necessary

 

17

 

such that the
rights granted by Medarex to Celldex hereunder shall not be in conflict with
the rights granted to such Sublicensee by Medarex under this Section 3.8.2.

ARTICLE
4

FINANCIAL PROVISIONS

4.1          Payments to Medarex.

4.1.1       Royalty Obligation. 
Subject to Section 4.2, with respect to each Royalty-Bearing Product,
Celldex shall pay to Medarex a royalty on annual (based on a calendar year)
aggregate worldwide Net Sales of Royalty-Bearing Products on a Royalty-Bearing
Product-by-Royalty-Bearing Product basis as follows:

	
   

  	
   

  	
  Annual
  Net Sales per 

  Royalty-Bearing
  Product

  	
   

  	
  Royalty
  Rate

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Portion
  of Annual Net Sales

  	
   

  	
  [*****]

  	
   

  	
  [*****]

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Portion
  of Annual Net Sales

  	
   

  	
  [*****]

  	
   

  	
  [*****]

  

 

4.1.2       Third Party Payments. 
Celldex shall be responsible for the payment of any royalties, license
fees and milestone and other payments due to (i) upstream licensors of Medarex,
to the extent such obligation is disclosed to Celldex in a Third Party
agreement provided by Medarex to Celldex on or before or within thirty (30)
days after the Effective Date, and (ii) Third Parties under license agreements
for intellectual property licensed to Celldex by a Third Party, in the case of
either clause (i) or clause (ii) under a sublicense or license that is required
to make, have made, use, sell, offer for sale and import Licensed Products or
Anti-Mannose Products; provided, however, that Medarex shall be solely
responsible for any payments and royalties owed to the Medical Research
Council, with respect to Royalty-Bearing Products, pursuant to that certain
License Agreement dated as of October 1, 1993, as amended on August 12, 1994
and on April 19, 2002, by and among the Medical Research Council Institute of
Animal Physiology and Genetics Research of Babraham Hall, Marianne Bruggemann
and GPI (the “MRC Agreement”).

4.2          Royalty Rates and Term.

4.2.1       Royalty Term for Licensed Royalty-Bearing
Products.  With respect to the royalty rates for
Licensed Royalty-Bearing Products, the Parties acknowledge and agree that the
Patent rights and Know-How licensed pursuant to this Agreement justify royalty
rates of differing amounts with respect to sales of such Licensed Royalty-Bearing
Products, which rates could be applied separately to Licensed Royalty-Bearing
Products involving the exercise of such Patent rights and/or the incorporation
of such Know-How, and that if such royalties were calculated separately,
royalties relating to Patent rights and royalties relating to Know-How

[*****] REPRESENTS CONFIDENTIAL PORTION WHICH HAS BEEN
OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.
CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS.

 

18

 

would last for
different terms.  The Parties have
determined in light of such considerations and for reasons of convenience that
blended royalty rates for the Patent rights and the Know-How licensed hereunder
will apply during a single royalty term (which blended royalty rates would be
advantageous to both Parties). 
Consequently, the Parties have agreed to adopt the royalty rates set
forth in Section 4.1.1 hereof with respect to such products.  The royalties due pursuant to Section 4.1.1
shall be payable on a country-by-country and Licensed Royalty-Bearing
Product-by-Licensed Royalty-Bearing Product basis until the date which is the
later of: (a) the expiration of the last to expire of the Valid Claims under
the HuMAb Patents and the Medarex Patents, as applicable, covering the Licensed
Royalty-Bearing Product in each country of sale of such Licensed
Royalty-Bearing Product (such expiration to occur only after expiration of
extensions of any nature to such Patents which may be obtained under applicable
statutes or regulations in the respective countries, such as the Drug Price
Competition and Patent Term Restoration Act of 1984 in the U.S.A. and similar
Patent extension laws in other countries) to the extent that the sale of such
Licensed Royalty-Bearing Product would, but for such license, infringe such
Valid Claim, and (b) the tenth anniversary of the First Commercial Sale of such
Licensed Royalty-Bearing Product in such country.  Upon expiration of the royalty term with respect to a Licensed
Royalty-Bearing Product in a country (other than as a result of the early
termination of this Agreement), and payment to Medarex of all amounts due under
this Agreement with respect to such Licensed Royalty-Bearing Product in such
country, the applicable grants under Article 3 with respect to such Licensed
Royalty-Bearing Product in such country shall become non-exclusive and fully
paid-up.

4.2.2       Royalty
Term for Anti-Mannose Products. In consideration for the transfer of the Anti-Mannose
Receptor HuMAb Antibodies to Celldex by Medarex as part of the Assigned Assets,
the Parties have agreed to adopt the royalty rates set forth in Section 4.1.1
hereof with respect to the Anti-Mannose Products. The royalties due pursuant to
Section 4.1.1 shall be payable on a country-by-country and Anti-Mannose
Product-by-Anti-Mannose Product basis until the date which is the later of: (a)
the expiration of the last to expire of the Valid Claims under the HuMAb
Patents and the Antibody Targeting Patents, as applicable, covering the
Anti-Mannose Product in each country of sale of such Anti-Mannose Product (such
expiration to occur only after expiration of extensions of any nature to such
Patents which may be obtained under applicable statutes or regulations in the
respective countries, such as the Drug Price Competition and Patent Term
Restoration Act of 1984 in the U.S.A. and similar Patent extension laws in
other countries) to the extent that the sale of such Anti-Mannose Product would,
but for such license, infringe such Valid Claim, and (b) the tenth anniversary
of the First Commercial Sale of such Anti-Mannose Product in such country.  Upon expiration of the royalty term with
respect to an Anti-Mannose Product in a country (other than as a result of the
early termination of this Agreement), and payment to Medarex of all amounts due
under this Agreement with respect to such Anti-Mannose Product in such country,
no further royalties or payments of any kind with respect to such Anti-Mannose
Product shall be due hereunder.

4.2.3       Pending Patent Applications. 
The Parties acknowledge that Medarex has filed, and during the Term
might file additional, applications for patents that, upon issuance, would
constitute a Medarex Patent, Antibody Targeting Patent or HuMAb Patent.  In respect of any such application that was
prosecuted in good faith and for which a patent issues during the Term, the
claims included in such issued patent (a “Subject Patent”) shall, to the extent
otherwise meeting the criteria set forth in the definition of Valid Claim, be
deemed “Valid

 

19

 

Claims” for purposes of computing royalties hereunder,
commencing on the date of issuance of the Subject Patent.  In addition, where Celldex would have owed
additional royalties to Medarex hereunder for the period commencing on the
filing date to which the application for a Subject Patent was entitled and
ending on the date of issuance of the Subject Patent had the claims included in
such Subject Patent been deemed Valid Claims from such filing date, then any
such additional royalties shall be due retroactively from Celldex to Medarex in
respect of such claims.  Medarex shall
promptly notify Celldex of the issuance of any Subject Patent, and Celldex
shall calculate and pay within ninety (90) days following such notice any
retroactive royalties payable under this Section 4.2.3 in respect of such
Subject Patent, such payment to include interest at the then-current rate for a
one-year U.S. Treasury Bill.

4.3          Royalty Payments. 
Running royalties due pursuant to Section 4.1.1 shall be payable on
a quarterly basis, within forty-five (45) days after the end of each Calendar
Quarter, based upon the Net Sales during such Calendar Quarter, commencing with
the Calendar Quarter in which the first sale of a Royalty-Bearing Product is
made.  Royalties shall be calculated in
accordance with GAAP and with the terms of this Article 4.  Only one royalty payment will be due on Net
Sales of a given Royalty-Bearing Product even though the manufacture, sale or
use of such Royalty-Bearing Product may be covered by more than one
intellectual property right in a country or more than one Valid Claim, or may
use both Patents and Know-How.

4.4          Royalty Statements. 
Celldex shall deliver to Medarex within forty-five (45) days after the
end of each Calendar Quarter in which Royalty-Bearing Products, for which
Celldex owes a royalty hereunder, are sold, a detailed statement showing (a)
Net Sales of each such Royalty-Bearing Product on a country-by-country basis
during the applicable Calendar Quarter, and (b) the amount and calculation of
royalties due on such Net Sales.

4.5          Payment Method. 
All amounts due by Celldex hereunder shall be paid in U.S. dollars by
wire transfer in immediately available funds to an account designated by
Medarex.  Any payments or portions
thereof due hereunder which are not paid on the date such payments are due
under this Agreement and not subject to good faith dispute, shall bear interest
at a rate equal to the lesser of the prime rate as published in The Wall Street
Journal, Eastern Edition, on the first day of each calendar quarter in which
such payments are overdue, plus one and one half (1.5) percentage points, or
the maximum rate permitted by law, calculated on the number of days such
payment is delinquent.

4.6          Currency; Foreign Payments. 
If any currency conversion shall be required in connection with any
payment hereunder, such conversion shall be made by using the exchange rate for
the purchase of U.S. dollars as published in The Wall Street Journal, Eastern
Edition, on the last business day of the calendar quarter to which such royalty
payments relate.

4.7          Taxes.  All royalty
amounts required to be paid to Medarex pursuant to this Agreement may be paid
with deduction for withholding for or on account of any taxes (other than taxes
imposed on or measured by net income) or similar governmental charge imposed by
a jurisdiction other than the United States (“Withholding Taxes”).  At Medarex’s request, Celldex shall provide
Medarex a certificate evidencing payment of any Withholding Taxes hereunder and
shall reasonably assist Medarex to obtain the benefit of any applicable tax
treaty.

 

20

 

4.8          Records Retention; Audit.

4.8.1       Record Retention. 
Celldex shall maintain (and shall ensure that its Affiliates and
Sublicensees shall maintain) complete and accurate books, records and accounts
that fairly reflect their respective Net Sales of Licensed Products in
sufficient detail to confirm the accuracy of any payments required hereunder
and in accordance with GAAP, which books, records and accounts shall be
retained by Celldex (and such Affiliates and Sublicensees) until the later of
(a) three (3) years after the end of the period to which such books, records
and accounts pertain, and (b) the expiration of the applicable tax statute of
limitations (or any extensions thereof), or for such longer period as may be
required by applicable law.

4.8.2       Audit.  Medarex
shall have the right to have an independent certified public accounting firm,
reasonably acceptable to Celldex, have access during normal business hours, and
upon reasonable prior written notice, to such of the records of Celldex (and
its Affiliates and Sublicensees) as may be reasonably necessary to verify the
accuracy of such Net Sales for any Calendar Quarter ending not more than
thirty-six (36) months prior to the date of such request; provided, that
Medarex shall not have the right to conduct more than one such audit in any
twelve (12)-month period nor to audit any particular Calendar Quarter more than
one time.  The accounting firm shall
disclose to each Party whether such Net Sales are correct or incorrect and the
specific details concerning any discrepancies. 
No other information shall be provided to Medarex.  Medarex shall bear the cost of such audit
unless the audit reveals a variance of more than five percent (5%) from the
reported results for the entire period audited, in which case Celldex shall
bear the cost of the audit.  The results
of such accounting firm shall be final, absent manifest error.

4.8.3       Payment of Additional Royalties; Credit. 
If, based on the results of such audit, additional payments are owed by
Celldex under this Agreement, Celldex shall make such additional payments
within forty-five (45) days after the date on which such accounting firm’s
written report is delivered to Celldex. 
If such audit shows that Celldex has overpaid royalties to Medarex, then
Celldex shall have the right to credit such amounts from Medarex.

4.9          Confidentiality. 
Medarex shall treat all information subject to review under
Section 4.8, but not the reported results of such review, as Celldex’s
Confidential Information protected in accordance with the confidentiality
provisions of Article 5.  Medarex shall
cause its accounting firm to enter into with Celldex a confidentiality
agreement reasonably acceptable to Celldex obligating such firm to maintain all
such financial information in confidence pursuant to such confidentiality
agreement.

4.10        Reports to Medarex. 
During the Term, Celldex shall keep Medarex informed of its development
and commercialization activities subject to this Agreement with respect to
Royalty-Bearing Products, including the filing of an IND or the initiation of a
clinical trial, and on January 31 of each year shall provide Medarex with a
reasonably detailed written summary of such events and activities in the
preceding year.

 

21

 

4.11        Royalty Reduction. 
All royalties [*****] during the period in which [*****].

ARTICLE 5

CONFIDENTIALITY

5.1          Confidential Information. 
Except as expressly provided herein, the Parties agree that for the Term
and for five (5) years thereafter, the receiving Party shall keep completely
confidential and shall not publish or otherwise disclose and shall not use for
any purpose except as expressly provided in Section 5.2 any Confidential
Information of the other Party, except to the extent that it can be established
by the receiving Party by competent proof that such Confidential Information:

5.1.1       was already known to the receiving Party, other than
under an obligation of confidentiality, at the time of disclosure;

5.1.2       was generally available to the public or otherwise
part of the public domain at the time of its disclosure to the receiving Party;

5.1.3       became generally available to the public or otherwise
part of the public domain after its disclosure and other than through any act
or omission of the receiving Party in breach of this Agreement;

5.1.4       was independently developed by the receiving Party as
demonstrated by documented evidence prepared contemporaneously with such
independent development; or

5.1.5       was subsequently lawfully disclosed, other than under
an obligation of confidentiality, to the receiving Party by a Person other than
a Party hereto.

5.2          Permitted Use and Disclosures. 
Each Party hereto may use or disclose information disclosed to it by the
other Party to the extent such use or disclosure is reasonably necessary in
complying with applicable governmental regulations or otherwise submitting
information to tax or other governmental authorities, conducting clinical
trials, or making a permitted sublicense or otherwise exercising its rights hereunder;
provided, that if a Party is required to make any such disclosure of the
other Party’s Confidential Information, other than pursuant to a
confidentiality agreement, it shall (a) give reasonable advance notice to the
latter Party of such disclosure, (b) if such advance notice is not possible,
provide notice of such disclosure immediately thereafter, (c) to the extent
possible, minimize the extent of such disclosure, and (d) save to the extent
inappropriate in the case of patent applications, use all reasonable efforts to
secure confidential treatment of such information prior to its disclosure
(whether through protective orders or otherwise), it being understood that any
information so disclosed shall otherwise remain subject to the limitations on
use and disclosure hereunder.

[*****] REPRESENTS CONFIDENTIAL PORTION WHICH HAS BEEN
OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.
CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS.

 

22

 

5.3          Public Disclosure. 
Except as otherwise required by law, rule or regulation, neither Party
shall issue a press release or make any other public disclosure of this
Agreement or the terms hereof without the prior written approval of the other
Party of such press release or public disclosure and the content thereof; provided,
that the Parties agree that disclosures of information for which consent has
been previously obtained and of information of a similar nature to that which
has been previously disclosed publicly with respect to this Agreement, each
shall not require advance approval; and provided, further, that,
with prior notice to Celldex, Medarex may make a public disclosure with respect
to the specific stage of development of each Licensed Product as stated in the
contents of the report provided to Medarex by Celldex pursuant to Section
4.10.  Each Party shall submit any press
release or public disclosure requiring the other Party’s approval to the other
Party, and the receiving Party shall have three (3) business days to review and
approve any such press release or public disclosure, which approval shall not
be unreasonably withheld.  If the
receiving Party does not respond in writing within such three (3) business day
period, the press release or public disclosure shall be deemed approved.  In addition, if a public disclosure is
required by law, rule or regulation, including in a filing with the Securities
and Exchange Commission, other than a filing on Form 10K or Form 10Q, the
disclosing Party shall provide copies of the disclosure reasonably in advance
of such filing or other disclosure for the nondisclosing Party’s prior review
and comment and the Parties shall thereafter mutually agree upon the extent and
nature of any such disclosures, such agreement not to be unreasonably withheld.

5.4          Use of Name. 
Each Party may use the name, insignia, symbol, trademark, trade name or
logotype of the other Party only (a) in connection with announcements and other
permitted disclosures relating to this Agreement and the activities
contemplated hereby, including public disclosures by Medarex pursuant to
Section 5.3, (b) in public disclosures regarding the equity interest that
Medarex has in Celldex, (c) as required by applicable law, and (d) otherwise as
agreed in writing by such other Party.

5.5          Confidential Terms. 
Except as expressly provided herein, each Party agrees not to disclose
this Agreement or any terms hereof to any Third Party without the consent of
the other Party; except that such consent shall not be required for disclosure
to actual or prospective investors or to a Party’s accountants, attorneys and
other professional advisors.  In
addition, the terms of this Agreement may be disclosed pursuant to
confidentiality obligations at least as strict as are set forth herein, to
actual or potential Sublicensees and actual or potential acquirors or
acquirees.

5.6          Publications. Subject to any Third Party rights
existing as of the Effective Date, Medarex shall submit to Celldex for review
and approval all proposed academic, scientific and medical publications and
public presentations relating to any Licensed Product or Anti-Mannose Product
containing HuMAb Technology or Medarex Technology for review in connection with
preservation of Patent rights and trade secrets and/or to determine whether
Confidential Information should be modified or deleted from the proposed
publication or public presentation. 
Written copies of such proposed publications and presentations shall be
submitted to Celldex no later than sixty (60) days before submission for
publication or presentation and Celldex shall provide its comments with respect
to such publications and presentations within thirty (30) days of its receipt
of such written copy.  The review period
may be extended for an additional thirty (30) days if Celldex can demonstrate a
reasonable need for such extension including the

 

23

 

preparation and
filing of patent applications.  By
written agreement, this period may be further extended.  Medarex will comply with standard academic
practice regarding authorship of scientific publications and recognition of
contribution of other Persons in any publications relating to any Licensed
Product or Anti-Mannose Product.

ARTICLE 6

INTELLECTUAL PROPERTY; REGULATORY

6.1          Intellectual Property Ownership.

6.1.1       Ownership of Technology. 
Subject to this Section 6.1, each Party shall own and retain all right,
title and interest in and to any and all intellectual property generated by or
on behalf of such Party in the exercise of a right granted to such Party
hereunder.

6.1.2       Ownership of Medarex Patents and Antibody
Targeting Patents.  As between the Parties, Medarex shall own
and retain all right, title and interest in and to all Medarex Patents, and
Celldex shall own and retain all right, title and interest in and to all
Antibody Targeting Patents, in each case together with the Know-How disclosed
or claimed therein.

6.1.3       Ownership of HuMAb Technology.

6.1.3.1    As between the Parties,
Medarex shall own and retain all right, title and interest in and to all HuMAb
Technology, including the HuMAb Mice.

6.1.3.2    Celldex acknowledges and
agrees that (a) except as set forth in Sections 3.1.2, 3.2.1, 3.3.1.1 and
3.3.1.3,, there are no licenses granted to Celldex under this Agreement with
respect to the HuMAb Technology, (b) Celldex has no right under this Agreement
to use for any purpose any Mice Materials other than (i) the Antibody Materials
included in the Biological Materials and (ii) any Improvements thereto made by
or on behalf of Celldex or its Affiliates or Sublicensees, in each case ((i)
and (ii)) solely in accordance the license grants set forth in Sections 3.1.2,
3.2.1, 3.3.1.1 and 3.3.1.3, and (c) except as expressly provided in clause (b),
Celldex has no right to discover, develop or otherwise make Improvements with
respect to HuMAb Mice or the HuMAb Technology. 
Accordingly, neither Celldex nor any of its Affiliates, successors, or
permitted assignees, or their licensees or Sublicensees, will engage, directly
or indirectly, in activities designed to, or otherwise undertake or attempt,
either on behalf of itself or another, to discover, develop or make any
Improvements that relate to the HuMAb Mice or HuMAb Technology.

6.1.3.3    In light of the foregoing,
Medarex shall own and retain all right, title and interest in and to all HuMAb
Technology, including any and all Improvements with respect to HuMAb Technology
that are conceived, discovered, developed or otherwise made, as necessary to
establish authorship, inventorship or ownership under applicable law, by or on
behalf of Celldex, its Affiliates, its successors or permitted assignees, or
their licensees or Sublicensees, whether or not patented or patentable, and any
and all Patent and other intellectual property rights with respect
thereto.  Accordingly, Celldex shall
promptly disclose to Medarex in writing, the conception or reduction to
practice, or the discovery, development or making of any

 

24

 

HuMAb Technology
and shall, and does hereby, assign, and shall cause its Affiliates, successors,
and permitted assignees, and their licensees and Sublicensees, to so assign, to
Medarex, without additional compensation, all of their respective rights, title
and interests in and to any such Improvements.

6.2          Medarex Patents and HuMAb Technology
Patents.  Medarex shall have the first right, at its
expense, to prepare, file, prosecute and maintain the Medarex Patents and the sole
right, at its expense, to prepare, file, prosecute and maintain the HuMAb
Patents, and in each case to conduct any interferences, reexaminations,
reissues, oppositions, or request for Patent term extensions relating thereto.  Medarex shall consult with Celldex, and
consider in good faith Celldex’s comments, regarding all such activities with
respect to the preparation, filing, prosecution and maintenance of the Medarex
Patents and shall share with Celldex any correspondence and communications with
the Patent authorities relating to such Patents.  In the event that (a) Medarex declines to file or, having filed,
declines to further prosecute and maintain any Medarex Patent, and (b) (i) no
Third Party having rights to file, prosecute or maintain such Medarex Patent
pursuant to an agreement between such Person and Medarex elects to so file,
prosecute or maintain such Medarex Patent or (ii) any Third Party having rights
to file, prosecute or maintain such Medarex Patent pursuant to an agreement
between such Person and Medarex, having elected to so file, prosecute or
maintain such Medarex Patent, fails to actively and diligently pursue the same,
then Medarex shall provide Celldex notice thereof prior to the expiration of
any deadline relating to such activities, but in any event at least thirty (30)
days prior notice, Celldex shall have the right, but not the obligation, to
file, prosecute and maintain such Medarex Patent and to conduct any
interferences, reexaminations, reissues, oppositions, or request for Patent
term extension relating thereto, in each case at Celldex’s expense, using
counsel of its choice.

6.3          Antibody Targeting Patents. 
Celldex shall have the sole right, at its expense, to prepare, file,
prosecute and maintain the Antibody Targeting Patents, and to conduct any
interferences, reexaminations, reissues, oppositions, or request for patent
term extension relating thereto. 
Celldex shall own and retain all right, title and interest in and to all
Antibody Targeting Technology, including any and all Improvements with respect
thereto, that are conceived, discovered, developed or otherwise made by or on
behalf of Medarex, its Affiliates, its successors or permitted assignees, or
their licensees or Sublicensees, whether or not patented or patentable, and any
and all Patent and other intellectual property rights with respect
thereto.  Accordingly, Medarex shall
promptly disclose to Celldex in writing, the conception or reduction to
practice, or the discovery, development or making of any Antibody Targeting
Technology and shall, and does hereby, assign, and shall cause its Affiliates,
successors, and permitted assignees, and their licensees and Sublicensees, to
so assign, to Celldex, without additional compensation, all of their respective
rights, title and interests in and to any such Improvements.

6.4          Third Party Litigation. 
In the event that a Third Party institutes a Patent infringement suit
(including any suit alleging the invalidity or unenforceability of the Patents)
against either Party or its respective Affiliates, licensees or permitted
Sublicensees during the Term, alleging that any activities hereunder, infringes
one or more Patents, or other intellectual property rights held by such Third
Party (an “Infringement Suit”), the Parties shall cooperate with one
another in defending such suit; provided, that the Party responsible for
directing and controlling the Infringement Suit (as provided hereinafter) shall
reimburse the other Party for all

 

25

 

reasonable costs
and expenses incurred in rendering such cooperation, including reasonable
attorneys’ fees.  Medarex shall direct
and control, at its sole cost and expense, any Infringement Suit with respect
to the HuMAb Technology and the Medarex Patents (including with respect to any
inventions claimed or described therein). 
Celldex shall direct and control, at its sole cost and expense, any
Infringement Suit with respect to the Antibody Targeting Patents (including with
respect to any inventions claimed or described therein).

6.5          Enforcement.

6.5.1       Rights and Procedures. 
If Medarex or Celldex determines that any of the HuMAb Technology, the
Medarex Patents or the Antibody Targeting Patents are being infringed by a
Third Party’s activities and that such infringement could affect the exercise
by the Parties of their respective rights and obligations under this Agreement,
it shall promptly notify the other Party in writing and provide such other
Party with any evidence of such infringement that is reasonably available.  Promptly after the receipt of such written
notice, the Parties shall meet and discuss in good faith the removal of such
infringement.  Medarex shall have the
sole right, but not the obligation, to pursue such Third Party with respect to
infringement of the HuMAb Technology and the Medarex Patents.  Celldex shall have the sole right, but not
the obligation, to pursue such Third Party with respect to the Antibody
Targeting Patents.  In either case, the
pursuing Party shall consider in good faith any comments from the other Party
and shall keep the other Party reasonably informed of any steps taken to remove
such infringement.

6.5.2       Cooperation. 
The Party not enforcing the applicable technology or Patents pursuant to
Section 6.5.1 shall provide reasonable assistance to the other Party, at such
other Party’s expense, including providing access to relevant documents and
other evidence, making its employees available at reasonable business hours,
and joining the action to the extent necessary to allow the enforcing Party to
maintain the action.

6.5.3       Recovery.  Any amounts
recovered by a Party pursuant to Section 6.5.1, whether by settlement or
judgment, shall be used to reimburse the Parties for their reasonable costs and
expenses in making such recovery (which amounts shall be allocated pro rata if
insufficient to cover the totality of such expenses), with any remainder being
retained by the Party that has exercised its right to bring the enforcement
action or, if such enforcement action is jointly funded, such remainder shall
be shared by the Parties based on their economic interests in the recovery.

6.6          Regulatory Issues. 
Celldex shall have sole control over all regulatory matters, including
interfacing, corresponding and meeting with any regulatory authority, relating
to the development and commercialization of Anti-Mannose Products and Licensed
Products.  In connection with such
products, at Celldex’s reasonable request, (a) Medarex will provide appropriate
rights of reference to Medarex filings with respect to regulatory submissions,
and (b) at Medarex’s sole discretion and at Celldex’s expense, Medarex will
assist with regulatory submissions, review and approvals.

 

26

 

ARTICLE 7

TERM AND TERMINATION

7.1          Term.  The term of
this Agreement (the “Term”) shall commence upon the Effective
Date and shall continue in effect until the expiration of Celldex’s obligation
to make any royalty payments under this Agreement, at which time the licenses
granted to Celldex hereunder shall (if they have not theretofore become so
under Section 4.2) become fully paid-up and irrevocable.

7.2          Breach.  Any failure
by a Party to comply with any of its obligations contained herein shall entitle
the Party not in breach to give to the Party in breach notice specifying the
nature of the breach, requiring the breaching Party to make good or otherwise
cure such breach.  If such breach is not
cured within thirty (30) days after the receipt of such notice (or, if such
breach cannot be cured within such thirty (30)-day period, if the Party in
breach does not commence actions to cure such breach within such period and
thereafter diligently continue such actions or if such breach is not otherwise
cured within ninety (90) days after the receipt of such notice), the Party not
in breach shall then be entitled to pursue the rights and remedies available to
it by law or in equity.

7.3          Accrued Rights; Surviving Obligations.

7.3.1       Accrued Rights. 
Expiration of this Agreement shall be without prejudice to any rights
that shall have accrued to the benefit of a Party prior to such
expiration.  Such expiration shall not
relieve a Party from obligations that are expressly indicated to survive the
expiration of this Agreement.

7.3.2       Survival.  Articles 2,
4 (with respect to the last sentence of 4.2.1 and to obligations arising prior
to expiration or termination), 5 (in accordance with its terms), 6, 7, 8, 9 and
10, and Sections 3.3.1.2, 3.5.2 and 3.6 (in accordance with its terms) shall
survive the expiration or earlier termination of this Agreement.

ARTICLE
8

INDEMNIFICATION

8.1          Indemnification of Medarex. 
Celldex shall indemnify Medarex, its Affiliates and their respective
directors, officers, employees and agents, and defend and save each of them harmless,
from and against any and all losses, damages, liabilities, costs and expenses
(including reasonable attorneys’ fees and expenses) in connection with any and
all liability, suits, investigations, claims or demands (collectively, “Losses”)
arising from or occurring as a result of 
(a) any breach by Celldex of its representations, warranties, covenants
or obligations under this Agreement, (b) the failure of Celldex to assume, pay,
perform and discharge any Assumed Liabilities, including any breach after the
Effective Date of the Assigned Contracts, or (c) the exercise of rights granted
by or on behalf of Medarex under this Agreement, including any infringement or
Third Party personal injury or damage to tangible personal property resulting,
in the case of each clause (a), (b) and (c) by or on behalf of Celldex or its
Affiliates or

 

27

 

Sublicensees.  The foregoing obligation to indemnify,
defend and save harmless shall not apply to the extent of any Losses for which
Medarex has an obligation to indemnify Celldex pursuant to Section 8.2.  For any such Losses as to which each Party
has an indemnification obligation pursuant to the first sentences of Sections
8.1 and 8.2, each Party shall indemnify the other to the extent of the
indemnifying Party’s respective fault (a Party’s fault being defined by those
categories for which it must indemnify the other Party pursuant to the first
sentence of Section 8.1 or 8.2) for the Losses.

8.2          Indemnification of Celldex. 
Medarex shall indemnify Celldex and its Affiliates, directors, officers,
employees and agents, and defend and save each of them harmless, from and
against any and all Losses arising from or occurring as a result of (a) any
breach by Medarex of its representations, warranties, covenants and obligations
under this Agreement, (b) the failure of Medarex to assume, pay, perform and
discharge any Retained Liabilities, including any breach prior to the Effective
Date of the Assigned Contracts, or (c) the exercise of rights retained by or on
behalf of Medarex under this Agreement in respect of any Humanized Anti-CD64
Antibody or Murine Anti-CD64 Antibody, or granted to Medarex pursuant to
Section 3.5.2, including any infringement or Third Party personal injury or damage
to tangible personal property resulting, in the case of each clause (a), (b)
and (c) by or on behalf of Medarex or its Affiliates or licensees.  The foregoing obligation to indemnify,
defend and save harmless shall not apply to the extent of any Losses for which
Celldex has an obligation to indemnify Medarex pursuant to Section 8.1.  For any such Losses as to which each Party
has an indemnification obligation pursuant to the first sentences of Sections
8.1 and 8.2, each Party shall indemnify the other to the extent of the
indemnifying Party’s respective fault (a Party’s fault being defined by those
categories for which it must indemnify the other Party pursuant to the first
sentence of Section 8.1 or 8.2) for the Losses.

8.3          Indemnification Procedure.

8.3.1       Notice of Claim. 
The indemnified Party shall give the indemnifying Party prompt written
notice (an “Indemnification Claim Notice”) of any Losses or discovery of
fact upon which such indemnified Party intends to base a request for
indemnification under Section 8.1 or Section 8.2, but in no event shall the
indemnifying Party be liable for any Losses that result from any delay in
providing such notice.  Each
Indemnification Claim Notice must contain a description of the claim and the
nature and amount of such Loss (to the extent that the nature and amount of
such Loss are known at such time).  The
indemnified Party shall furnish promptly to the indemnifying Party copies of
all papers and official documents received in respect of any Losses.  All indemnification claims in respect of a
Party, its Affiliates or their respective directors, officers, employees and
agents (collectively, the “Indemnitees” and each an “Indemnitee”)
shall be made solely by such Party to this Agreement (the “Indemnified Party”).

8.3.2       Third Party Claims. 
Subject to Section 6.4, the obligations of an indemnifying Party under
this Article 8 with respect to Losses arising from claims of any Third Party
that are subject to indemnification as provided for in Section 8.1 or 8.2 (a “Third Party
Claim”) shall be governed by and be contingent upon the following
additional terms and conditions:

 

28

 

8.3.2.1          Control of Defense. 
At its option, the indemnifying Party may assume the defense of any Third
Party Claim by giving written notice to the Indemnified Party within thirty
(30) days after the indemnifying Party’s receipt of an Indemnification Claim
Notice.  The assumption of the defense
of a Third Party Claim by the indemnifying Party shall not be construed as an
acknowledgment that the indemnifying Party is liable to indemnify any
Indemnitee in respect of the Third Party Claim, nor shall it constitute a
waiver by the indemnifying Party of any defenses it may assert against any
Indemnitee’s claim for indemnification. 
Upon assuming the defense of a Third Party Claim, the indemnifying Party
may appoint as lead counsel in the defense of the Third Party Claim any legal
counsel selected by the indemnifying Party. 
In the event the indemnifying Party assumes the defense of a Third Party
Claim, the Indemnified Party shall immediately deliver to the indemnifying
Party all original notices and documents (including court papers) received by
any Indemnitee in connection with the Third Party Claim.  Should the indemnifying Party assume the
defense of a Third Party Claim, the indemnifying Party shall not be liable to
the Indemnified Party or any other Indemnitee for any legal expenses
subsequently incurred by such Indemnified Party or other Indemnitee in connection
with the analysis, defense or settlement of the Third Party Claim.  In the event that it is ultimately
determined that the indemnifying Party is not obligated to indemnify, defend or
hold harmless an Indemnitee from and against the Third Party Claim, the
Indemnified Party shall reimburse the indemnifying Party for any and all costs
and expenses (including attorneys’ fees and costs of suit) and any Losses
incurred by the indemnifying Party in its defense of the Third Party Claim with
respect to such Indemnitee.

8.3.2.2          Right to Participate in Defense. 
Without limiting Section 8.3.2.1, any Indemnitee shall be entitled to
participate in, but not control, the defense of such Third Party Claim and to
employ counsel of its choice for such purpose; provided, that such
employment shall be at the Indemnitee’s own expense unless (a) the employment
thereof has been specifically authorized by the indemnifying Party in writing,
or (b) the indemnifying Party has failed to assume the defense and employ
counsel in accordance with Section 8.3.2.1 (in which case the Indemnified Party
shall control the defense).

8.3.2.3          Settlement. 
With respect to any Losses relating solely to the payment of money
damages in connection with a Third Party Claim and that will not result in the
Indemnitee’s becoming subject to injunctive or other relief or otherwise
adversely affect the business of the Indemnitee in any manner, and as to which
the indemnifying Party shall have acknowledged in writing the obligation to
indemnify the Indemnitee hereunder, the indemnifying Party shall have the sole
right to consent to the entry of any judgment, enter into any settlement or
otherwise dispose of such Loss, on such terms as the indemnifying Party, in its
sole discretion, shall deem appropriate. 
With respect to all other Losses in connection with Third Party Claims,
where the indemnifying Party has assumed the defense of the Third Party Claim
in accordance with Section 8.3.2.1, the indemnifying Party shall have authority
to consent to the entry of any judgment, enter into any settlement or otherwise
dispose of such Loss provided it obtains the prior written consent of the
Indemnified Party (which consent shall not be unreasonably withheld or
delayed).  The indemnifying Party shall
not be liable for any settlement or other disposition of a Loss by an
Indemnitee that is reached without the written consent of the indemnifying
Party.  Regardless of whether the
indemnifying Party chooses to defend or prosecute any Third Party Claim, no
Indemnitee shall admit any liability with respect to, or settle, compromise or
discharge, any Third Party Claim without the prior written consent of the
indemnifying Party.

 

29

 

8.3.2.4          Cooperation. 
Regardless of whether the indemnifying Party chooses to defend or
prosecute any Third Party Claim, the Indemnified Party shall, and shall cause
each other Indemnitee to, cooperate in the defense or prosecution thereof and
shall furnish such records, information and testimony, provide such witnesses
and attend such conferences, discovery proceedings, hearings, trials and
appeals as may be reasonably requested in connection therewith.  Such cooperation shall include access during
normal business hours afforded to indemnifying Party to, and reasonable
retention by the Indemnified Party of, records and information that are
reasonably relevant to such Third Party Claim, and making Indemnitees and other
employees and agents available on a mutually convenient basis to provide
additional information and explanation of any material provided hereunder, and
the indemnifying Party shall reimburse the Indemnified Party for all its
reasonable out-of-pocket expenses in connection therewith.

8.3.2.5          Expenses. 
Except as provided above, the costs and expenses, including fees and
disbursements of counsel, incurred by the Indemnified Party in connection with
any claim shall be reimbursed on a calendar quarter basis by the indemnifying
Party, without prejudice to the indemnifying Party’s right to contest the
Indemnified Party’s right to indemnification and subject to refund in the event
the indemnifying Party is ultimately held not to be obligated to indemnify the
Indemnified Party.

ARTICLE
9

REPRESENTATIONS, WARRANTIES AND COVENANTS

9.1          Mutual Representations, Warranties and
Covenants.  Each Party (“Representing Party”) hereby
represents and warrants to the other Party: (a) the Representing Party is duly
organized and validly existing under the laws of its jurisdiction of
incorporation; (b) that this Agreement has been duly authorized by all
requisite corporate action of the Representing Party; (c) the Representing
Party has the full legal right and authority to enter into this Agreement and
this Agreement is legally binding on the Representing Party; and (d) this
Agreement does not conflict with any other agreement to which the Representing
Party is a party, or the Representing Party’s obligations to any Third Party.

9.2          Biological Materials. 
With respect to the transfer of Biological Materials by Medarex to
Celldex pursuant to Section 2.4, Celldex acknowledges and agrees as follows:

9.2.1       The Biological Materials are experimental in nature
and may have hazardous properties.  The
Biological Materials are bring provided by Medarex “as is” and Medarex makes no
representations or warranties of any kind, either express or implied, including
warranties of merchantability or fitness for a particular purpose, or that the
use of the Biological Materials will not infringe any Patent, copyright,
trademark or other proprietary rights.

9.2.2       Celldex assumes all liability for claims for damages
against it or Medarex by Third Parties which may arise from any use, handling,
storage or disposal of the Biological Materials by Celldex, its Affiliates and
Sublicensees and further Celldex hereby forever generally and completely
releases and discharges Medarex, its Affiliates and their respective directors,
officers, employees and agents of and from any and all claims, obligations,
liabilities

 

30

 

and demands of
every kind and nature, in law, equity, statute or otherwise, known and unknown,
suspected and unsuspected, disclosed and undisclosed, anticipated and
unanticipated, liquidated or unliquidated, for damages actual and consequential,
past, present and future, arising out of or in any way related to the
Biological Materials or the use thereof.

9.3          Additional Medarex Representations,
Warranties and Covenants.

9.3.1       Representations, Warranties and Covenants. 
Medarex represents, warrants and covenants to Celldex that, as of the
Effective Date:

9.3.1.1          each item constituting Assigned Assets is assigned,
transferred and otherwise conveyed free and clear of all liens and
encumbrances.

9.3.1.2          except as provided in Schedule 9.3.1, the Antibody
Targeting Patents are existing and, to the knowledge of the officers of
Medarex, the Antibody Targeting Patents have not been held by a court of
competent jurisdiction to be invalid or unenforceable, in whole or in part;

9.3.1.3          to the knowledge of the officers of Medarex, there are
no existing or threatened legal actions, legal suits or legal claims pending
with respect to the right of Medarex to enter into and perform its obligations
under this Agreement;

9.3.1.4          except as provided in Schedule 9.3.1, to the knowledge
of the officers of Medarex, there are no existing or threatened legal actions,
legal suits or legal claims pending that challenge the validity or
enforceability of the Antibody Targeting Patents;

9.3.1.5          to the knowledge of the officers of Medarex, Medarex
has not received any notice that has led Medarex to believe that MDX-1307 IND
is not currently in good standing with the FDA;

9.3.1.6          to the knowledge of the officers of Medarex, each
Assigned Contract is in full force and effect, and Medarex has provided, to the
extent contractually permitted, a true and complete copy of each such Assigned
Contract to Celldex; and

9.3.1.7          Medarex has made available to Celldex, to the extent
material and in Medarex’s possession: (a) preclinical study results and
protocols for the Licensed Antibodies and the Anti-Mannose Receptor HuMAb
Antibodies, (b) written communications to and from the FDA with respect to the
Antibody Targeting Technology, (c) written communications to and from the FDA
with respect to the MDX-1307 IND, and (d) written FDA requests for data and
studies with respect to the MDX-1307 IND.

9.3.2       Certain Definitions. 
For purposes of this Section 9.3, it is understood and agreed that:

9.3.2.1          all materials referred to in Section 9.3.1.7, a written
copy of which was provided to and permitted to be kept by Tibor Keler on or
before the Effective Date, shall be deemed to have been “made available to Celldex”;

 

31

 

9.3.2.2           “knowledge of” a Person shall mean, with
respect to a representation or warranty, such Person’s good faith understanding
of the facts and information in his or her possession without any duty to
conduct any investigation with respect to such facts and information or such
representation or warranty; and

9.3.2.3          “officers” shall mean Persons in the
positions of chief patent counsel, senior vice president, president and chief
executive officer.

9.4          DISCLAIMER OF WARRANTY. 
EXCEPT FOR THE EXPRESS WARRANTIES SET FORTH ABOVE IN THIS ARTICLE 9,
MEDAREX AND CELLDEX MAKE NO REPRESENTATIONS AND GRANT NO WARRANTIES, EXPRESS OR
IMPLIED, EITHER IN FACT OR BY OPERATION OF LAW, BY STATUTE OR OTHERWISE.  MEDAREX AND CELLDEX EACH SPECIFICALLY
DISCLAIM ANY OTHER WARRANTIES, WHETHER WRITTEN OR ORAL, OR EXPRESS OR IMPLIED,
INCLUDING ANY WARRANTY OF QUALITY, MERCHANTABILITY OR FITNESS FOR A PARTICULAR
USE OR PURPOSE OR ANY WARRANTY AS TO THE VALIDITY OR ENFORCEABILITY OF ANY
PATENTS OR THE NON-INFRINGEMENT OF ANY INTELLECTUAL PROPERTY RIGHTS OF THIRD PARTIES.

ARTICLE
10

MISCELLANEOUS

10.1        Force Majeure. 
Neither Party shall be held liable or responsible to the other Party or
be deemed to have defaulted under or breached this Agreement for failure or
delay in fulfilling or performing any term of this Agreement when such failure
or delay is caused by or results from events beyond the reasonable control of
the non-performing Party, including fires, floods, embargoes, shortages,
epidemics, quarantines, war, acts of war (whether war be declared or not),
insurrections, riots, civil commotion, strikes, lockouts or other labor
disturbances, acts of God or acts, omissions or delays in acting by any
governmental authority.  The
non-performing Party shall notify the other Party of such force majeure within
ten (10) days after such occurrence by giving written notice to the other Party
stating the nature of the event, its anticipated duration, and any action being
taken to avoid or minimize its effect. 
The suspension of performance shall be of no greater scope and no longer
duration than is necessary and the non-performing Party shall use commercially
reasonable efforts to remedy its inability to perform; provided, that in
the event the suspension of performance continues for one-hundred and eighty
(180) days after the date of the occurrence, the Parties shall meet to discuss
in good faith how to proceed in such event.

10.2        Assignment. 
The Parties’ rights and obligations under this Agreement will bind and
inure to the benefit of their respective successors, heirs, executors and
administrators and permitted assigns. 
Neither Party shall assign or delegate its obligations under this
Agreement either in whole or in part without the prior written consent of the
other Party; provided, that either Party may assign this Agreement,
without the other Party’s consent (a) to its Affiliate(s) (provided,
that the assigning Party shall remain jointly and severally liable with such
Affiliate(s) under this Agreement), and (b) to an entity that acquires all or
substantially all of the business or assets of the assigning Party, whether by
merger, reorganization, acquisition, sale or otherwise.

 

32

 

10.3        Severability. 
If any provision of this Agreement is held to be illegal, invalid or
unenforceable under any present or future law, and if the rights or obligations
of either Party under this Agreement will not be materially and adversely
affected thereby, (a) such provision shall be fully severable, (b) this
Agreement shall be construed and enforced as if such illegal, invalid or
unenforceable provision had never comprised a part hereof, (c) the remaining
provisions of this Agreement shall remain in full force and effect and shall
not be affected by the illegal, invalid or unenforceable provision or by its
severance herefrom, and (d) in lieu of such illegal, invalid or unenforceable
provision, there shall be added automatically as a part of this Agreement a
legal, valid and enforceable provision as similar in terms to such illegal,
invalid or unenforceable provision as may be possible and reasonably acceptable
to the Parties herein.  To the fullest
extent permitted by applicable law, each Party hereby waives any provision of
law that would render any provision prohibited or unenforceable in any respect.

10.4        Disputes.  Any dispute
that may arise relating to this Agreement shall be referred to the Chief
Executive Officers of each of the Parties (or their respective designees) who
shall use their good faith efforts to mutually agree upon the proper course of
action to resolve the dispute.  If any
dispute is not resolved by the Chief Executive Officers of the Parties (or
their designees) within ten (10) business days after such dispute is referred
to them, then either Party shall have the right to litigate such dispute in
accordance with Section 10.5 or to pursue such other dispute resolution
mechanism as the Parties may agree.

10.5        Governing Law, Jurisdiction, Venue and
Service.  This Agreement shall be governed by and
construed in accordance with the laws of the State of New Jersey, applicable to
contracts made and wholly performed within such jurisdiction by residents of
such jurisdiction.  The Parties hereby
irrevocably and unconditionally consent to the exclusive jurisdiction of the
courts of the State of New Jersey for any action, suit or proceeding (other
than appeals therefrom) arising out of or relating to this Agreement, and agree
not to commence any action, suit or proceeding (other than appeals therefrom)
related thereto except in such courts. 
The Parties further hereby irrevocably and unconditionally waive any
objection to the laying of venue of any action, suit or proceeding (other than
appeals therefrom) arising out of or relating to this Agreement in the courts
of the State of New Jersey, and hereby further irrevocably and unconditionally
waive and agree not to plead or claim in any such court that any such action,
suit or proceeding brought in any such court has been brought in an
inconvenient forum.

10.6        Notices.  All notices
or other communications that are required or permitted hereunder shall be in
writing and delivered personally, sent by facsimile (and promptly confirmed by
personal delivery, registered or certified mail or overnight courier as
provided herein), sent by nationally-recognized overnight courier or sent by
registered or certified mail, postage prepaid, return receipt requested,
addressed as follows:

	
  If to Celldex, to:

  
	
   

  	
  Celldex Therapeutics, Inc.

  
	
   

  	
  519 Route 173W

  
	
   

  	
  Bloomsbury, New Jersey 08804

  
	
   

  	
  Attention: 
  Chief Executive Officer

  
	
   

  	
  Facsimile:  (908) 713-6002

  

 

 

33

 

	
  with a copy to:

  
	
   

  	
  Morgan, Lewis & Bockius LLP

  
	
   

  	
  502 Carnegie Center

  
	
   

  	
  Princeton, New Jersey  08540

  
	
   

  	
  Attention: 
  Randall B. Sunberg, Esq.

  
	
   

  	
  Facsimile:  (877) 432-9652

  
	
   

  	
   

  
	
  If to Medarex, to:

  
	
   

  	
  Medarex, Inc.

  
	
   

  	
  707 State Road

  
	
   

  	
  Princeton, New Jersey 08540-1437

  
	
   

  	
  Attention: President

  
	
   

  	
  Facsimile: (609)
  430-2850

  
	
  with copies to:

  
	
   

  	
  Medarex, Inc.

  
	
   

  	
  707 State Road

  
	
   

  	
  Princeton, New Jersey 08540-1437

  
	
   

  	
  Attention: General Counsel

  
	
   

  	
  Facsimile: (609)
  430-4215

  
	
   

  	
   

  
	
   

  	
  Medarex, Inc.

  
	
   

  	
  707 State Road

  
	
   

  	
  Princeton, New Jersey 08540-1437

  
	
   

  	
  Attention: 
  Contracts Administrator

  
	
   

  	
  Facsimile: (609)
  430-4215

  

 

or to such other address as the Party to whom notice
is to be given may have furnished to the other Party in writing in accordance
herewith.  Any such communication shall
be deemed to have been given (a) when delivered, if personally delivered or
sent by facsimile on a business day, (b) on the business day after dispatch, if
sent by nationally-recognized overnight courier, and (c) on the third business
day following the date of mailing, if sent by mail.  It is understood and agreed that this Section 10.6 is not
intended to govern the day-to-day business communications necessary between the
Parties in performing their duties, in due course, under the terms of this
Agreement.

10.7        Entire Agreement; Modifications. 
This Agreement, together with all Appendices and Schedules attached
hereto, sets forth and constitutes the entire agreement and understanding
between the Parties with respect to the subject matter hereof and thereof and
all prior agreements, understanding, promises and representations, whether
written or oral, with respect thereto are superseded hereby and thereby.  Each Party confirms that it is not relying
on any representations or warranties of the other Party except as specifically
set forth herein or therein.  No
amendment, modification, release or discharge shall be binding upon the Parties
unless in writing and duly executed by authorized representatives of both
Parties.

10.8        Relationship of the Parties. 
It is expressly agreed that the Parties shall be independent contractors
of one another and that the relationship between the Parties shall not
constitute a partnership, joint venture or agency.  Neither Party shall have the authority to make

 

34

 

any statements,
representations or commitments of any kind, or to take any action, which shall
be binding on the other, without the prior written consent of the other to do
so.  All Persons employed by a Party
shall be employees of such Party and not of the other Party and all costs and
obligations incurred by reason of any such employment shall be for the account
and expense of such Party.

10.9        Waiver.  Any term or
condition of this Agreement may be waived at any time by the Party that is
entitled to the benefit thereof, but no such waiver shall be effective unless
set forth in a written instrument duly executed by or on behalf of the Party
waiving such term or condition.  The
waiver by either Party hereto of any right hereunder or of the failure to
perform or of a breach by the other Party shall not be deemed a waiver of any
other right hereunder or of any other breach or failure by said other Party
whether of a similar nature or otherwise.

10.10      Construction. 
Except where the context otherwise requires, wherever used, the singular
shall include the plural, the plural the singular, the use of any gender shall
be applicable to all genders, the term “or” has the inclusive meaning
represented by the phrase “and/or”, and the terms “including” and “includes”
mean “including without limitation” and “includes without limitation,”
respectively.  The captions of this
Agreement are for convenience of reference only and in no way define, describe,
extend or limit the scope or intent of this Agreement or the intent of any
provision contained in this Agreement. 
The language of this Agreement shall be deemed to be the language
mutually chosen by the Parties and no rule of strict construction shall be
applied against either Party hereto.

10.11      No Benefit to Third Parties. 
The representations, warranties, covenants and agreements set forth in
this Agreement are for the sole benefit of the Parties and their successors and
permitted assigns, and they shall not be construed as conferring any rights on
any other Person.

10.12      Further Assurance.

10.12.1                  On
and after the Effective date, Medarex shall from time to time, at the request
of Celldex, execute and deliver, or cause to be executed and delivered, such
other instruments of conveyance and transfer and take such other actions as
Celldex may reasonably request, in order to implement or give effect to the
transactions contemplated hereby and to vest in Celldex good and marketable
title to the Biological Materials.

10.12.2                  On
and after the Effective Date, Celldex shall from time to time, at the request
of Medarex, take such actions as Medarex may reasonably request, in order to
implement or give effect to the transactions contemplated hereby, including
Celldex’s assumption of the Assumed Liabilities.

10.13      English Language. 
This Agreement has been written and executed in the English
language.  Any translation into any
other language shall not be an official version thereof, and in the event of
any conflict in interpretation between the English version and such
translation, the English version shall control.

10.14      References.  Unless
otherwise specified, (a) references in this Agreement to any Article, Section,
Schedule or Appendix shall mean references to such Article, Section, Schedule

 

35

 

or Appendix of
this Agreement, (b) references in any section to any clause are references to
such clause of such section, and (c) references to any agreement, instrument or
other document in this Agreement refer to such agreement, instrument or other
document as originally executed or, if subsequently varied, replaced or
supplemented from time to time, as so varied, replaced or supplemented and in
effect at the relevant time of reference thereto.

10.15      Counterparts. 
This Agreement may be executed in two (2) or more counterparts, each of
which shall be deemed an original, but all of which together shall constitute
one and the same instrument.

[Signature page follows]

 

36

 

IN WITNESS WHEREOF, the Parties hereto have caused this
Agreement to be executed by their duly authorized representatives as of the
date first above written.

	
  Medarex, Inc.

  	
  Celldex Therapeutics, Inc.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
  By:

  	
   

  
	
  Name:

  	
   

  	
   

  	
  Name:

  	
   

  
	
  Title:

  	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Genpharm
  International, Inc.

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
  Name:

  	
   

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  	
   

  

 

37

 

APPENDIX A

Medarex
Patents

[*****]

 

[*****] REPRESENTS CONFIDENTIAL PORTION WHICH HAS BEEN
OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.
CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS.

 

 

A-1

 

APPENDIX B

Antibody
Targeting Patents

[*****]

 

 

[*****] REPRESENTS CONFIDENTIAL PORTION WHICH HAS BEEN
OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.
CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS.

 

B-1

 

APPENDIX C

Biological
Materials

[*****]

[*****] REPRESENTS CONFIDENTIAL PORTION WHICH HAS BEEN
OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.
CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS.

 

C-1

 

APPENDIX D

Hybridoma
Cell Lines and Immunized Mice

(as of the Effective
Date)

[*****]

 

[*****] REPRESENTS CONFIDENTIAL PORTION WHICH HAS BEEN
OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.
CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS.

 

 

D-1

 

APPENDIX
E

 

PROCESS FOR DETERMINING
[*****] RESEARCH ANTIBODIES

 

[*****] REPRESENTS CONFIDENTIAL PORTION WHICH HAS BEEN
OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.
CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS.

 

E-1

 

SCHEDULE 2.1.7

 

Assigned Contracts*

 

 

1.               Option Agreement between MI and Yale University, dated
February 4, 2002 and effective as of March 25, 2002; together with the related
and appended Research Agreement between MI and Yale University, effective as of
April 4, 2002.

2.               Material Transfer Agreement between, on the one hand,
MI, and, on the other hand, Inger Sandlie, Professor Dr. Scient, and University
of Oslo, dated January 15, 2003.

3.               Material Transfer Agreement between, on the one hand,
MI, and, on the other hand, Stephen Dewhurst, Ph.D., and University of
Rochester, dated May 14, 2001, as amended on April 30, 2003.

4.               Material Transfer and Research Agreement between John
Connolly, Ph.D. and Dartmouth College, on the one hand, and MI, on the other
hand, dated June 6, 2001, as amended on May 30, 2003.

 

 

 

 

 

 

 

 

*The parties
acknowledge that an agreement between MI and Duke University relating to MI’s
retention of Duke University to assist in Phase I clinical trials of MDX-1307
has been signed by MI and sent for Duke University signature; but, as of the
date hereof, an executed copy thereof has not been returned to MI from Duke
University.  Promptly following the date
hereof, the parties shall cooperate to communicate with Duke University and to
cause the contract sent for Duke University signature to be retracted and a
contract between Celldex and Duke University substituted therefor. However, in
the event an copy of the original MI/Duke agreement is returned to MI after the
date hereof executed by Duke University, then such agreement shall be an
Assigned Contract hereunder.

 

SCHEDULE 2.5.1

 

Information and Materials Relating
Solely

 

 

[*****]

 

 

[*****] REPRESENTS CONFIDENTIAL PORTION WHICH HAS BEEN
OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.
CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS.

 

SCHEDULE 2.5.2

 

Information and Materials Relating
in Part

 

[*****]

 

 

[*****] REPRESENTS CONFIDENTIAL PORTION WHICH HAS BEEN OMITTED AND
FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION. CONFIDENTIAL
TREATMENT HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS.

 

SCHEDULE 9.3.1

 

Exceptions to Medarex
Representations and Warranties

 

Opposition in the European Patent Office against EP 553244 (European
application number 91919595.8) filed by Pasteur Merieux on September 30, 1999.Exhibit 10.2

CONFIDENTIAL

RESEARCH AND COMMERCIALIZATION AGREEMENT

 

This Research and Commercialization
Agreement (the “Agreement”), effective as of April 6, 2004
(the “Effective Date”), is entered by and between Medarex, Inc., a New Jersey corporation,
with a principal place of business at 707 State Road, Princeton, New Jersey
08540, GenPharm
International, Inc., a wholly owned subsidiary of Medarex, Inc.,
(collectively, “Medarex”), and Celldex Therapeutics, Inc., a Delaware
corporation, with a principal place of business at 519 Route 173 W, Bloomsbury,
New Jersey 08804 (“Celldex”).

WHEREAS, Medarex owns or otherwise controls certain
technology, including certain patents and know-how, relating to the use of
antibodies in connection with the research and development of vaccines;

WHEREAS, Medarex has determined that
this technology and the associated business opportunities are outside of
Medarex’s core business and, accordingly, can best be exploited through a
separate corporate entity;

WHEREAS, Medarex has caused Celldex to be
incorporated for this purpose; and

WHEREAS, Celldex
wishes to acquire from Medarex an option to obtain exclusive commercial
licenses under the Medarex Technology (as defined below) for the use of the
Medarex Mice (as defined below) to prepare fully human antibodies, and subject
to the availability of such license rights with regard to such antibodies,
Medarex is willing to grant such licenses, on the terms and conditions herein.

NOW,
THEREFORE, in consideration of the foregoing premises and the
mutual promises and covenants contained herein and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged,
the Parties, intending to be legally bound, do hereby agree as follows:

1.                                      DEFINITIONS

1.1   “Additional
Mice” shall mean (a) the mice developed by Kirin Brewery Company,
Ltd. (“Kirin”) using certain
transchromosomal technology and licensed to Medarex pursuant to the
Collaboration and License Agreement between Medarex and Kirin, dated September
4, 2002 (the “Kirin Agreement”),
and (b) the mice developed through the crossbreeding of the Medarex Mice with
the mice described in clause (a) of this Section 1.1 and licensed to Medarex
pursuant to the Kirin Agreement.

1.2   “Affiliate”
shall mean any Person that, directly or indirectly, through one or more
intermediaries, controls, is controlled by, or is under common control with
another Person.  For purposes of this
definition only, “control” and, with correlative meanings, the terms
“controlled by” and “under common control with” shall mean (a) the possession,
directly or indirectly, of the power to direct the management or policies of a
Person, whether through the ownership of voting securities or by contract
relating to voting rights or corporate governance, or (b) the ownership,

 

1

 

directly or indirectly, of
at least fifty percent (50%) of the voting securities or other ownership
interest of a Person; provided that, if local law restricts foreign ownership, control
will be established by direct or indirect ownership of the maximum ownership
percentage that may, under such local law, be owned by foreign interests.  For purposes of this Section 1.2, (i)
“Person” shall mean an individual, sole proprietorship, partnership, limited
partnership, limited liability partnership, corporation, limited liability
company, business trust, joint stock company, trust, unincorporated
association, joint venture or other similar entity or organization, including a
government or political subdivision, department or agency of a government , and
(ii) neither Medarex, Celldex nor Genmab A/S shall be deemed to be an
“Affiliate” of the other(s).

1.3   “Antibody”
shall mean any fully human antibody, or fragment thereof, with a unique amino
acid sequence that has been raised against a Research Antigen.   By way of clarification, (i) Antibodies with
different amino acid sequences shall be deemed to be different Antibodies,
irrespective of whether they bind to the same Research Antigen, and (ii) any
single chain antibody that is derived from an Antibody shall be deemed to be
the same Antibody as the Antibody from which it is derived.

1.4   “Antibody
Materials” shall mean any and all genes and DNA sequences, including
vectors containing same, that code for an Antibody and any hybridoma that
produces an Antibody.  References in the
Agreement to a “Antibody Materials” shall include (a) cells expressing or
secreting such Antibody or containing nucleotide sequences (whether coding or
non-coding) with respect to the expression of such Antibody, and (b) nucleotide
sequences (whether coding or non-coding) with respect to the expression of such
Antibody (or a fragment of such entire Antibody containing that portion of such
Antibody conferring binding specificity for a Research Antigen).

1.5   “Antigen”
shall mean any protein (including any glyco- or lipo-protein), carbohydrate,
compound or other composition, and any fragment, peptide or epitope thereof,
that stimulates the production of antibodies.

1.6   “Approval”
shall mean all approvals, licenses, registrations and authorizations of all
governmental agencies in a country necessary for the manufacture, use or sale
of a Product in the applicable country.

1.7   “Backup
Antibody” shall have the meaning set forth in Section 4.2.1.

1.8   “Biological
License Application” or “BLA”
shall mean a Biological License Application as defined in the U.S. Food, Drug
and Cosmetics Act and the regulations promulgated thereunder, and any
corresponding or equivalent foreign application, registration or certification.

1.9   “Calendar
Quarter” shall mean each three-month period commencing January 1,
April 1, July 1 or October 1 of each year during the term of this Agreement.

1.10 “Commercially
Reasonable Efforts” shall mean, with respect to a Product, efforts
and resources similar to those employed by Celldex to develop, manufacture or
market a product of similar market potential at a similar stage in its product
life, taking into account for example the establishment of the Product in the marketplace,
the competitiveness of alternative

 

2

 

products, the likely
proprietary position of the Product, the likelihood of regulatory approval for
the Product, the potential profitability of the Product and Celldex’s resources
available.  Commercially Reasonable
Efforts shall be determined on a market-by-market basis for each Product.

1.11 “Confidential
Information” shall mean, subject to the provisions of Article 9
hereof, any information, whether in oral, written, graphic, electronic or
tangible form, disclosed by one party to the other hereunder or under any
agreement governing the use and disclosure of confidential information entered
into by the parties prior to the Effective Date.

1.12 “Control”
or “Controlled” shall mean, with
respect to a particular item of information or intellectual property right, (i)
that the party owns and has the ability to grant to the other party the
licenses to such item provided for herein, without violating the terms of any
agreement or other arrangement with any third party, and/or (ii) that the party
has a license to such item and has the ability to grant to the other party the
licenses to such item provided for herein, without violating the terms of any
agreement or other arrangement with any third party.

1.13 “Cross
License Agreement” shall mean that certain Cross License Agreement
between and among Medarex, Cell Genesys, Inc., Abgenix, Inc., Xenotech, L.P.
and Japan Tobacco Inc., dated March 26, 1997.

1.14 “Exclusive Commercial
License” shall have the meaning set forth in Section 4.3.

1.15 “FDA”
shall mean the U.S. Food and Drug Administration and any successor agency
thereto.

1.16 “First
Commercial Sale” shall mean, with respect to each Product in each
country, the first bona fide commercial sale by Celldex, its Affiliates or
Sublicensees of such Product following Marketing Approval in such country;
provided, however, that where such first commercial sale has occurred in a
country for which government pricing or government reimbursement approval is
needed for widespread commercial sale (for clarification, the parties
acknowledge that no such approval is currently required in the United States),
then such sales shall not be deemed a First Commercial Sale until such pricing
or reimbursement approval has been obtained.

1.17 “IND”
shall mean an Investigational New Drug application, as defined in the U.S.
Food, Drug and Cosmetics Act and the regulations promulgated thereunder, or any
corresponding or equivalent foreign application, registration or certification.

1.18 “Licensed
Antibody” shall mean an Antibody to which Celldex obtains an
Exclusive Commercial License pursuant to Section 4.3.

1.19 “Marketing
Approval” shall mean, with respect to each country of the Territory
for a particular Product, approval of the applicable MAA filed in such country
by the health regulatory authority in such country that is the counterpart of
the FDA.  It is understood that
Marketing Approval does not necessarily include pricing or reimbursement
approval.

 

 

3

 

1.20 “Marketing
Approval Application” or “MAA”
shall mean, on a Product-by-Product basis, a New Drug Application or Biologics
License Application as required under the U.S. Food, Drug and Cosmetics Act and
the regulations promulgated thereunder, or a comparable filing in a foreign
country.

1.21 “Medarex
Mice” shall mean any of Medarex’s immunizable transgenic mice
containing unrearranged human immunoglobulin heavy and light chain transgenes, each
inserted into mouse chromosomes, but excluding the Additional Mice.

1.22 “Medarex
Technology” shall mean the Medarex Patent Rights and Medarex Know
How.

1.22.1      “Medarex Patent Rights” shall mean all United
States and foreign patents (including all reissues, extensions, substitutions,
re-examinations, supplementary protection certificates and the like, and
patents of addition) and patent applications (including, without limitation,
all continuations, continuations-in-part and divisions thereof) Controlled by
Medarex during the term of this Agreement that claim an invention which is
necessary or reasonably useful for the use of the Medarex Mice to create
Antibodies or to develop, produce, make, have made, import, have imported, use,
offer for sale and sell a Licensed Antibody or Product.

1.22.2      “Medarex Know How” shall mean the
Confidential Information Controlled by Medarex during the term of this
Agreement that is necessary or reasonably useful to use of the Medarex Mice
and/or for the exercise of the Medarex Patent Rights, including without
limitation, technical data, protocols and methods.  For the avoidance of doubt, the Medarex Know How does not include
any Medarex Patent Rights.

1.23 “Mice
Materials” shall mean any parts or derivatives of the Medarex Mice,
including without limitation, hybridomas, cells or other biological materials
derived directly or indirectly from the Medarex Mice, but excluding all
Antibodies and Antibody Materials.

1.24 “MRC
Agreement” shall mean that certain License Agreement among the
Medical Research Council, Agricultural and Food Research Council Institute of
Animal Physiology and Genetics Research of Babraham Hall, Marianne Bruggëmann
and GenPharm International, Inc., effective October 1, 1993, and any amendments
thereto.

1.25 “Net Sales”
shall mean, for any period, the gross amount invoiced by the Celldex and its
Affiliates and Sublicensees for the sale of Product(s) to third parties, less
deductions for:

(a) normal and customary trade, quantity and
cash discounts and sales returns and allowances (other than allowances for
doubtful accounts), including (i) those granted on account of price
adjustments, billing errors, rejected goods, damaged goods, returns and
rebates, (ii) administrative and other fees and reimbursements and similar
payments directly related to the sale or delivery of Product(s) paid to
wholesalers and other distributors, buying groups, pharmacy benefit management
organizations, health care insurance carriers and other institutions, (iii)
allowances, rebates and fees directly related to the sale or delivery of
Product(s) paid to distributors and (iv) chargebacks;

 

 

4

 

(b) freight, postage, shipping and insurance
costs to the extent that such items are included in the gross amount invoiced;

(c) customs and excise duties and other
duties related to the sales to the extent that such items are included in the
gross amount invoiced;

(d) rebates and similar payments made with
respect to sales paid for or reimbursed by any governmental or regulatory
authority such as, by way of illustration and not in limitation of the parties’
rights hereunder, federal or state Medicaid, Medicare or similar state program
or equivalent foreign governmental program;

(e) sales and other taxes and duties directly
related to the sale or delivery of Product(s) (but not including taxes assessed
against the income derived from such sale) to the extent that such items are
included in the gross amount invoiced;

(f) distribution costs and expenses to the
extent that such items are included in the gross amount invoiced; and

(g) any such invoiced amounts that are not
collected by the parties or their Affiliates or Sublicensees;

provided, however, that with respect to the
deductions specified in subsections (a) through (g) above, an amount shall be
deducted only once regardless of how many categories may apply to it.

Any of the deductions listed
above that involves a payment by Celldex or its Affiliates or Sublicensees
shall be taken as a deduction in the Calendar Quarter in which the payment is
accrued by such entity.  Deductions
pursuant to subsection (g) above shall be taken in the Calendar Quarter in
which such sales are no longer recorded as a receivable.  For purposes of determining Net Sales, the Product(s)
shall be deemed to be sold when invoiced and a “sale” shall not include
transfers or dispositions for charitable, promotional, pre-clinical, clinical,
regulatory or governmental purposes.

For
purposes of calculating Net Sales of Products, sales between or among Celldex
or its Affiliates or Sublicensees shall be excluded from the computation of Net
Sales, but sales by Celldex or its Affiliates or its Sublicensees to third
parties shall be included in the computation of Net Sales.

1.26  “Phase I Clinical
Trial” shall mean a human clinical trial, the principal purpose of
which is a preliminary determination of safety in healthy individuals or
patients as required in 21 C.F.R. §312, or a similar clinical study prescribed
by the regulatory authorities in a country other than the United States.  A Phase I Clinical Trial shall be deemed to
have commenced when the first subject in the study has been enrolled.

1.27 “Phase II
Clinical Trial” shall mean a human clinical trial for which a
primary endpoint is a preliminary determination of efficacy or dose ranges in
patients with the disease being studied as required in 21 C.F.R. §312, or a
similar clinical study prescribed by the regulatory authorities in a country
other than the United States.  Any
well-controlled study

 

5

 

intended to provide the
substantial evidence of efficacy necessary to support the filing of an
approvable MAA (such as a combined Phase II Clinical Trial/ Phase III Clinical
Trial, or any Phase III Clinical Trial in lieu of a Phase II Clinical Trial) (a
“Pivotal Study”) shall automatically be deemed to have reached Phase II
status.  A Phase II Clinical Trial shall
be deemed to have commenced when the first subject in the study has been
enrolled.

1.28 “Phase III
Clinical Trial” shall mean a human clinical trial, the principal
purpose of which is to establish safety and efficacy in patients with the
disease being studied as required in 21 C.F.R. §312, or similar clinical study
prescribed by the regulatory authorities in a country other than the United
States.  A Phase III Clinical Trial
shall also include any other human clinical trial intended as a Pivotal Study,
whether or not such study is a traditional Phase III Clinical Trial.  A Phase III Clinical Trial shall be deemed
to have commenced when the first patient has been enrolled in a Pivotal Study.

1.29 “Product”
shall mean any composition or formulation incorporating one or more Licensed
Antibodies.

1.30 “Research
Antigen” shall mean a protein, peptide, carbohydrate, chemical
entity, compound or other composition, and/or any fragment, peptide or epitope
thereof, used by Celldex, or by Medarex on behalf of Celldex, to immunize the
Medarex Mice in connection with the Research Program and with respect to which
Celldex obtains a Research License pursuant to Section 3.1 and which is
thereafter listed in Exhibit A hereto, which Exhibit may be amended from time
to time by the mutual agreement of the parties; provided, however, that the
antigen, [*****] shall in no event be a Research Antigen.

1.31 “Research
License” shall mean the nonexclusive research license with regard to
a particular Research Antigen granted by Medarex to Celldex pursuant to Section
3.1.

1.32 “Research
License Period” shall mean, on a Research Antigen-by-Research
Antigen basis, the period commencing on the date that Medarex notifies Celldex
of the availability of an antigen pursuant to Section 3.2 (the “Notification
Date”), and ending on the earlier of (i) twelve (12) months after the Notification
Date, or if extended pursuant to Section 3.4.2, the expiration of any such
extension(s), or (ii) when Celldex has taken an Exclusive Commercial License
with respect to the particular Research Antigen pursuant to Section 4.3, or
(iii) the termination of the Agreement.

1.33 “Research
Program” shall mean (i) the immunization of Mice conducted by
Celldex or, as applicable, by Medarex on behalf of Celldex pursuant to Section
2.2, during the Research License Period, and (ii) the evaluation of Antibodies
conducted by Celldex with respect to specific Research Antigens during the
applicable Research License Periods, each in connection with Celldex’s
assessment of the usefulness of the Medarex Mice to produce Antibodies and the
evaluation of the Antibodies themselves as potential Licensed Antibodies, for

[*****]
REPRESENTS CONFIDENTIAL PORTION WHICH HAS BEEN OMITTED AND FILED SEPARATELY
WITH THE SECURITIES AND EXCHANGE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED WITH RESPECT TO THE OMITTED PORTIONS.

 

 

6

 

the purpose of determining
whether Celldex wishes to obtain Exclusive Commercial Licenses to such
Antibodies.

1.34 “Sublicensee”
shall mean a third party to whom Celldex has granted a license or sublicense,
as the case may be, pursuant to Section 4.3.2, to develop, make, have made,
import, use, sell, offer for sale or otherwise exploit Products.

1.35 “Territory”
shall mean all countries of the world.

2.                                      RESEARCH PROGRAM

2.1   Research
Program.  Medarex shall
provide, as reasonably requested by Celldex and pursuant to the terms of this
Agreement, Medarex Mice to Celldex to allow Celldex to immunize Medarex Mice
against Research Antigens during the applicable Research License Period(s), for
the purpose of determining whether Celldex wishes to obtain an Exclusive
Commercial License with regard to one or more specific Antibodies pursuant to
Section 4.3.  Celldex agrees that during
any applicable Research License Period(s), the Medarex Mice will be used solely
for the purpose of conducting research under the Research Program and for no
other purpose.  Ownership of Medarex
Mice and Mice Materials shall be as set forth in Article 11.

2.2   Immunization.  For purposes of the Research Program,
Celldex has the option, as to each Research Antigen, either to perform
immunizations, derive hybridomas and characterize Antibodies with respect to
such Research Antigen, or to request that Medarex perform the immunizations,
derive hybridomas and perform characterizations of Antibodies with respect to
such Research Antigen.  In the event
Celldex requests that Medarex perform the immunization for a given Research
Antigen, Celldex shall supply all Research Antigen needed by Medarex for such
purpose and shall pay Medarex the amounts set forth in Section 5.1.  Medarex’s obligation to perform such
immunizations is conditioned upon the receipt by Medarex from Celldex of
Research Antigen of sufficient quantity and quality for such purpose.  Medarex shall not use Research Antigen provided
by Celldex for any purpose other than immunization of Medarex Mice for the
benefit of Celldex.

2.3   Reasonable
Efforts.  In the event that
Celldex requests Medarex to perform immunizations pursuant to Section 2.2,
Medarex shall use reasonable efforts to conduct requested immunizations and
characterizations of Antibodies and agrees to use reasonable efforts to commit
the personnel, facilities and other resources reasonably necessary to perform
the immunizations; provided, however, Medarex does not warrant that the
immunizations shall result in the identification of any Antibody suitable for
development as a Product.

2.4   Limited
Use.

2.4.1        Celldex shall only grant access to the
Medarex Mice to those of its employees who require such access for the
performance of this Agreement.  Celldex
shall not breed the Medarex Mice, use them for any purpose other than the
conduct of the Research Program, or transfer them to any other person or entity
or to any place other than Celldex facilities without the prior written
approval of Medarex.  Celldex shall not
make any effort, directly or indirectly, to clone or otherwise reproduce the
Mice by any means, sexual or asexual.

 

 

7

 

2.4.2        (a) In the event that Celldex uses the Medarex
Mice for any purpose not permitted under this Agreement, in addition to any
other remedies Medarex may have, Medarex may cause Celldex to (i) assign to
Medarex all right, title, and interest to all intellectual property arising
from such use, (ii) in a reasonably timely manner execute those documents, as
requested by Medarex, necessary to document and/or perfect the assignment of
such intellectual property, and (iii) transfer ownership and possession to
Medarex of any and all Antibodies and Antibody Materials produced, generated or
derived by Celldex in the course of such non-permitted use.

(b) In the event that
Medarex uses Research Antigen provided by Celldex for any purpose not permitted
under this Agreement, in addition to any other remedies Celldex may have,
Celldex may cause Medarex to (i) assign to Celldex all right, title, and
interest to all intellectual property arising from such use, (ii) in a
reasonably timely manner execute those documents, as requested by Celldex,
necessary to document and/or perfect the assignment of such intellectual
property, and (iii) transfer ownership and possession to Celldex of any and all
Antibodies and Antibody Materials produced, generated or derived by Medarex in
the course of such non-permitted use.

2.5   Care in Use
of Medarex Mice.  It is
understood and agreed that the Medarex Mice are experimental in nature and may
have unknown characteristics, and Celldex therefore agrees to use prudence and
reasonable care in the use, handling, storage, transportation, disposition and
containment of the Medarex Mice, and to maintain the Medarex Mice under
suitable containment conditions in compliance with all applicable national,
state and local laws, regulations, rules and ordinances.

2.6   Records.  Celldex shall prepare and maintain complete
and accurate written records of all uses made of the Medarex Mice and the Mice
Materials, and copies of such records will be furnished to Medarex, upon
Medarex’s written request; provided, however, that Medarex shall maintain such
records and the information contained therein in strict confidence in
accordance with Article 9 hereof, and shall not use such records or information
except to the extent permitted by this Agreement.  In the event that Medarex performs immunizations of the Medarex
Mice on behalf of Celldex pursuant to Section 2.2, Medarex shall prepare and
maintain complete and accurate written records with respect to such
immunizations and copies of such records will be furnished to Celldex, upon
Celldex’s written request; provided, however, that Celldex shall maintain such
records and the information contained therein in strict confidence in
accordance with Article 9 hereof, and shall not use such records or information
except to the extent permitted by this Agreement

2.7   Termination
of Research Program.

2.7.1        Termination
by Celldex.  Should Celldex
elect to terminate the Research Program for all Research Antigens without
obtaining an Exclusive Commercial License pursuant to Section 4.3, this
Agreement shall immediately terminate, in accordance with the terms of Section
13.4, upon thirty (30) days from the date of Medarex’s receipt of written
notice from Celldex of such election.

2.7.2        Expiration
of the Research Program.  In
the event that Celldex has not obtained at least one (1) Research License by
the second anniversary of the Effective Date, or

 

 

8

 

thereafter does not have a
Research License or Exclusive Commercial License in effect for any six (6)
month period, the Research Program shall expire, and, unless the parties
mutually agree otherwise, this Agreement shall automatically terminate as of
such date in accordance with the terms of Section 13.4.  In the event that Celldex has obtained at
least one (1) Research License by the second anniversary of the Effective Date
but has not exercised its option to take an Exclusive Commercial License by the
end of the last Research License Period, this Agreement shall automatically
terminate, in accordance with the terms of Section 13.4, as of the end of the
last Research License Period.

3.                                      RESEARCH LICENSES

3.1   Research
Licenses for Each Research Antigen. 
At any time commencing upon the Effective Date and ending on the fifth
anniversary of the Effective Date, on a Research Antigen-by-Research Antigen
basis, commencing on the date that Medarex has notified Celldex that a
particular Antigen is available for licensing to Celldex pursuant to Section
3.2 below, Medarex shall grant, and does hereby grant, to Celldex a
non-exclusive, non-sublicenseable, non-transferable license under the Medarex
Technology and Medarex’s rights in the Medarex Mice, during the Research
License Period applicable to such Research Antigen, to immunize the Medarex
Mice to raise Antibodies against such Antigen, which Antigen shall be deemed a
Research Antigen subsequent to such grant, and to further evaluate whether
Celldex wishes to acquire an Exclusive Commercial License(s) with respect to
any such Antibody(ies).  The parties
shall thereupon amend Exhibit A to add such Research Antigen thereto.  Upon expiration of the Research License
Period for a given Research Antigen, the applicable Research License shall
terminate.  Celldex shall be entitled to
obtain five (5) Research Licenses during the term of Agreement.  Medarex hereby grants to Celldex a
non-exclusive, non-sublicenseable, non-transferable license under the Medarex
Technology and Medarex’s rights in the Medarex Mice, to immunize the Medarex
Mice to raise Antibodies against the [*****], during the Research License Period
applicable to such Research Antigen, which Research Antigen is included on
Exhibit A hereto.  For the avoidance of
doubt, the Research License granted hereunder with respect to the [*****] is
deemed to be one of the five (5) such Research Licenses available to Celldex
under this Agreement.

3.2   Antigen
Availability for Research Use. 
For each Antigen for which Celldex desires to obtain a Research License
pursuant to Section 3.1, Celldex shall provide Medarex with a written
description of such Antigen.  Each such
Antigen shall be a specific molecular target or biochemical entity, such as
defined proteins or polypeptides (including glyco- or lipo-proteins or
carbohydrates) and the parties shall agree on a written description of such
Antigen, which description shall include, where possible, a GenBank accession
number.  Within thirty (30) business
days following receipt of notice from Celldex regarding its desire to obtain a
Research License with regard to a particular Antigen hereunder, Medarex will
notify Celldex whether the rights requested by Celldex are available for
licensing to Celldex.  It is understood
and agreed that an Antigen may not be available for Celldex for a Research
License if: (i) Medarex is

[*****]
REPRESENTS CONFIDENTIAL PORTION WHICH HAS BEEN OMITTED AND FILED SEPARATELY
WITH THE SECURITIES AND EXCHANGE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED WITH RESPECT TO THE OMITTED PORTIONS.

 

9

 

actively engaged in
discussions with a third party with regard to exclusive rights with respect to
such Antigen and antibodies thereto, or (ii) Medarex has previously
granted a third party rights with respect to such Antigen and/or antibodies
relating thereto that would preclude Medarex from granting the rights contained
herein to Celldex, or (iii) Medarex has initiated an active program of
research, development or commercialization with respect to such Antigen or
antibodies thereto or has an intent to initiate an active program with regard
to such Antigen or antibodies thereto as shown by written records that predate
Celldex’s written request.  If Medarex
notifies Celldex that a particular Antigen requested by Celldex pursuant to
this Section 3.2 is (i) available for use in the Research Program, such Antigen
shall be a Research Antigen as set forth in Section 3.1, shall thereupon be
added to Exhibit A and shall count against the total of five (5) such Research
Licenses available to Celldex pursuant to Section 3.1; and (ii) not available
for use in the Research Program, such Antigen shall not be a Research Antigen
and shall not be counted against the total of five (5) such Research Licenses
available to Celldex pursuant to Section 3.1.

3.3   Research
License Fee.  The parties
acknowledge and agree that Celldex shall not owe any payment for the initial
twelve (12) months of a Research License Period with respect to each Research
Antigen.  For each extension of
such  Research License Period hereunder,
within thirty (30) days of providing written notice to Medarex of Celldex’s
desire to extend the Research License Period with respect to a Research
Antigen, Celldex shall pay the amount set forth in Section 5.2

3.4   Research
License Period.

3.4.1        Initial
Period.  The initial Research
License Period for a particular Research Antigen shall commence on the date
that Medarex notifies Celldex that a particular Research Antigen is available
for licensing by Celldex pursuant to Section 3.2 and shall expire twelve (12)
months later.

3.4.2        Extension
of Research License Period.  On
a Research Antigen-by-Research Antigen basis, Celldex will have the option to
extend the term of the Research License Period and the corresponding Research
License, for up to two (2) additional twelve (12) month periods for a total
Research License Period of thirty-six (36) months, by providing Medarex written
notice at least sixty (60) days before the end of the applicable Research
License Period and paying to Medarex the Research License Period extension fee
as described in Sections 3.3 and 5.2. 
Upon receipt of the other party’s written permission, such permission
not to be unreasonably withheld, a party shall be entitled to make a press
release announcing each such extension of the Research License Period following
receipt of Celldex’s notice of its wish to extend the Research License Period.

3.5   Destruction
of Medarex Mice, Mice Materials, Antibodies and Antibody Materials; Covenant.  If Celldex does not enter into an Exclusive
Commercial License for an Antibody against a given Research Antigen under
Section 4.3 by the end of the applicable Research License Period:

3.5.1        Within fifteen (15) days of the end of
the applicable Research License Period, Celldex shall destroy all Medarex Mice
immunized with such Research Antigen and all

 

10

 

Mice Materials derived from
such Medarex Mice, and all Antibodies and Antibody Materials obtained through
use of such Medarex Mice with respect to such Research Antigen, and promptly
after such destruction an officer of Celldex shall provide Medarex with written
certification thereof; and

3.5.2        In the event Celldex has filed patent
applications disclosing or claiming inventions comprising Antibodies or
Antibody Materials or making or using thereof, obtained through the use of
Medarex Mice and/or Mice Materials, with respect to such Research Antigen,
Celldex covenants that it shall, at its election, either abandon, or assign to
Medarex, such patents or patent applications. 
Notwithstanding the foregoing, if Celldex intends to abandon such
patents or patent applications and such patents or patent applications, or any
scientific articles relating thereto, have been or will be, published, then in
lieu of such abandonment, Celldex shall assign to Medarex such patents or patent
applications.  In the event Celldex is
to assign such patents or patent applications to Medarex, Celldex shall execute
those documents, as requested by Medarex, necessary to document and/or perfect
the assignment of such patents and/or patent applications, and upon the
completion of such assignment, Celldex shall provide to Medarex a detailed
invoice showing all costs incurred by Celldex in prosecuting and maintaining
such patent applications and patents prior to the date of such assignment.  Within sixty (60) days of receiving such
detailed invoice, Medarex shall reimburse Celldex for such costs.  Notwithstanding the foregoing, Celldex shall
retain an irrevocable, royalty-free, worldwide, nonexclusive license, without a
right to sublicense, assign or otherwise transfer such license, from Medarex
under such patents and patent applications, and any foreign equivalents,
divisionals, continuations, CIPs, reissues and reexaminations thereof, and
patents issuing therefrom, to discover, develop and commercialize any and all
antibodies against such Research Antigen, which antibodies are identified using
technology other than Medarex Technology and/or Medarex Mice, Mice Materials,
Antibodies or Antibody Materials.  It is
understood and agreed that Celldex shall not be obligated to assign to Medarex
patent rights in any inventions that consist solely of the compositions of such
Research Antigen itself.

3.6   Termination
of Specific Research License.  Celldex may terminate the Research License for any Research Antigen
at any time by giving written notice to Medarex.  Upon expiration of the Research License Period for a Research
Antigen, the corresponding Research License granted hereunder shall expire.  Following the termination or expiration of
the applicable Research License, Celldex shall have no further license rights
under the Medarex Technology with respect to the Research Antigen and any
Antibodies against such Research Antigen, and the terms of Section 3.5 shall
apply.

4.                                      OPTIONS; COMMERCIAL LICENSES

4.1   Option for
Exclusive Commercial Licenses.

4.1.1        Subject to the availability of a
particular Antibody(ies) to a Research Antigen for exclusive licensing by
Celldex pursuant to Section 4.2, during the term of the applicable Research
License Period, Celldex shall have a non-exclusive option to obtain an
Exclusive Commercial License as set forth in Section 4.3.  The option granted under this Section 4.1.1
shall terminate at the end of the Research License Period for the applicable
Research Antigen.

 

11

 

4.1.2        In no event will Celldex initiate any
human clinical trials with respect to, nor file an IND on, a Product containing
an Antibody without first obtaining an Exclusive Commercial License with
respect to such Antibody pursuant to the procedures set forth in Sections 4.1,
4.2 and 4.3.

4.1.3        Celldex covenants that it shall not
commercialize any Antibody and/or Antibody Materials obtained through the
Research Program with respect to a Research Antigen without obtaining an
Exclusive Commercial License with respect to such Antibody or Antibody
Materials under Section 4.3.

4.2   Antibody Availability for Commercial Use.

4.2.1        Antibody,
Backup Antibody and Antigen Identification.  At any time during the Research License
Period with respect to a particular Research Antigen, Celldex may provide
written notice to Medarex that it wishes to acquire an Exclusive Commercial
License to an Antibody raised against such Research Antigen and to Products
containing such Antibody.  In such written
notice, Celldex shall provide the amino acid sequence for the Antibody and the
genetic sequence for the Research Antigen that it was raised against.  In such written notice, Celldex shall have
the right to identify up to two (2) additional Antibodies raised against such
Antigen to be named as “Backup Antibodies” with respect to the individual
Antibody, if any, to which Celldex obtains an Exclusive Commercial License
hereunder.  In such notice, Celldex
shall provide the amino acid sequence for such Backup Antibody(ies).

4.2.2        Notice
of Availability.  Within
thirty (30) business days following receipt of notice provided pursuant to
Section 4.2.1 with respect to an Antibody (or Backup Antibody(ies)), subject to
Section 4.2.4, Medarex will notify Celldex whether the rights requested by
Celldex with respect to such Antibody(ies) (or Backup Antibody(ies)) are
available for licensing to Celldex.

4.2.3        License
Fee.  If Medarex notifies
Celldex, pursuant to Section 4.2.2, that an Exclusive Commercial License is available
with respect to a given Antibody (or Backup Antibody(ies)) as requested by
Celldex under Section 4.2.1, within fifteen (15) business days of Medarex’s
notice of such availability, Celldex shall pay to Medarex the Exclusive
Commercial License fee due pursuant to Section 5.3 with respect to such
Exclusive Commercial License.

4.2.4        Unavailability.  It is understood and agreed that Celldex may
be unable to receive an Exclusive Commercial License to an Antibody (or Backup
Antibody(ies)) if, prior to Celldex’s request for an Exclusive Commercial
License pursuant to Section 4.2.1, Medarex has granted rights to a third party
to an antibody with the same amino acid sequence as the Antibody (or the Backup
Antibody(ies)).  It is further
understood and agreed that any Exclusive Commercial License granted to Celldex
shall be subject to any rights then in effect granted by Medarex to one or more
third parties with respect to the applicable Research Antigen and any
antibodies related thereto.

4.3   Exclusive
Commercial License.

4.3.1        Grant.  If Celldex elects to exercise its
option to acquire an Exclusive Commercial License with respect to a particular
Antibody pursuant to Section 4.1, and Medarex

 

12

 

informs Celldex that such
Antibody is available for licensing pursuant to Section 4.2, and Celldex pays
the Exclusive Commercial License fee pursuant to Section 5.3, then subject to
the terms and conditions of this Agreement, and commencing as of the date
Medarex has both (i) so informed Celldex and (ii) received from Celldex such
fee, Medarex is automatically deemed to grant, and in such event hereby grants,
to Celldex, on an Antibody-by-Antibody basis, a worldwide, exclusive (even as
to Medarex), non-transferable, royalty-bearing license under the Medarex
Technology and Medarex’s rights in the Medarex Mice, with the right to
sublicense as permitted in Section 4.3.2, to use the Medarex Mice to develop,
make, have made, import, have imported, use, offer for sale and sell such
Antibody, which license is non-exclusive with respect to a Research Antigen and
exclusive with respect to the specific Antibody (which Antibody shall be deemed
a Licensed Antibody for all purposes hereunder) (an “Exclusive Commercial License”).

Medarex
covenants that, upon informing Celldex that an Antibody (or Backup
Antibody(ies)) is available for exclusive commercial licensing pursuant to
Section 4.2.2, Medarex shall not license to any third party any rights to make,
have made, import, have imported, use, offer for sale or sell Products
containing such Antibody (or Backup Antibody(ies)) against such Research
Antigen raised using the Medarex Mice; provided however, if Celldex fails to
pay the commercial license fee due pursuant to Section 5.3 with respect to such
Antibody, such covenant shall thereafter immediately terminate.  The parties acknowledge and agree that any
Exclusive Commercial Licenses granted hereunder shall be subject to the terms
and conditions of the Cross License Agreement.

 

In
the event that the development of a Licensed Antibody is terminated by Celldex
for any reason, but Celldex does not wish to terminate the Exclusive Commercial
License with respect to such Licensed Antibody pursuant to Section 4.3.3, then
Celldex may, at its sole discretion and without payment of any additional
license fee, designate as the Licensed Antibody one (1) of the two (2) Backup
Antibodies previously determined to be available pursuant to Section 4.2.  Thereafter, the remaining Backup Antibody
shall continue to be a Backup Antibody. 
Further, with respect to the development of the newly designated
Licensed Antibody (that had previously been a Backup Antibody), Celldex shall
not be obligated to make any milestones payments to Medarex with respect to
such newly designated Licensed Antibody that Celldex had previously paid to
Medarex pursuant to Section 5.4 with respect to the replaced Licensed Antibody.

 

4.3.2        Sublicenses.

(a)   Subject to Section 4.3.2(b),
Celldex may grant sublicenses under the Medarex Technology to the extent
necessary to develop, make, have made, import, use, offer for sale and sell
Products; provided, however, within ten (10) days of the date any such
sublicense is executed, Celldex shall provide Medarex with at least the
following information with respect to each such Sublicensee: (i) the identity
of the Sublicensee; (ii) a description of the Product and the rights being
granted to the Sublicensee; and (iii) the territory in which the Product will
be sold.  Each sublicense granted by
Celldex shall be consistent with all the terms and conditions of this
Agreement, and subordinate thereto, and Celldex shall remain responsible to
Medarex for the compliance of each such Sublicensee with the financial and
other obligations due under this Agreement.

 

13

 

(b)   The parties recognize that
according to the provisions of the Cross License Agreement relating to the
Medarex Technology, Medarex may not grant Celldex the right to directly grant
sublicenses under certain Medarex Technology that is covered by the Cross
License Agreement to sell, lease, and offer for sale or lease Products.  So long as such provisions are in effect, if
Celldex grants or desires to grant a sublicense to a particular Sublicensee
under the Medarex Technology pursuant to Section 4.3.2(a) to sell, lease, and
offer for sale or lease a particular Product, then Medarex shall enter into an
agreement with such Sublicensee which grants a direct license to such
Sublicensee under such of the Medarex Technology that is covered by the Cross
License Agreement to sell, lease, and offer for sale or lease such Product on
the same terms and conditions as the sublicense granted by or desired to be
granted by Celldex to such Sublicensee (“Direct Sublicense Agreement”);
provided, each such Direct Sublicense Agreement granted by Medarex shall: (i)
be consistent with all the terms and conditions of this Agreement; (ii) provide
that all performance obligations of such Sublicensee, including without
limitation, with respect to development and commercialization of Products and
payment of amounts owing under the sublicense granted to such Sublicensee by
Celldex, shall be owed to Celldex and not to Medarex; (iii) not conflict with
any of the rights granted under this Agreement; (iv) provide that Celldex is a
third party beneficiary under such Direct Sublicense Agreement, with the right,
at Celldex’s expense, to enforce the terms and conditions of such Direct
Sublicense Agreement against such Sublicensee, including the right to collect
all monies due to Celldex from such Sublicensee under such Direct Sublicense
Agreement; and (v) be subject to Celldex’s approval, such approval not to be
unreasonably withheld.  Further, it is
understood and agreed by Celldex that, in such sublicense granted by Celldex to
such Sublicensee, Celldex shall make the rights related to such certain Medarex
Technology granted by Medarex to Celldex under Section 4.3 subordinate to such
direct license granted by Medarex to such Sublicensee, such that the rights
granted by Medarex to Celldex under Section 4.3.1 shall not be in conflict with
the rights granted to such Sublicensee by Medarex under this Section 4.3.2(b).

4.3.3        Termination
of Exclusive Commercial License.

(a)   Termination.  Celldex
may terminate the Exclusive Commercial License with respect to any particular
Licensed Antibody at any time with immediate effect by giving written notice to
Medarex.  Following the termination of
the applicable Exclusive Commercial License, Celldex shall have no further
license rights under the Medarex Technology with respect to the Antibody that
was the subject of such Exclusive Commercial License.  Within thirty (30) days after termination of the Exclusive
Commercial License with respect to a specific Licensed Antibody, Celldex shall
destroy any and all Medarex Mice immunized with the given Research Antigen,
Mice Materials derived from such Medarex Mice, and any and all Antibodies,
Antibody Materials and Products obtained through the use of such Medarex Mice, with
respect to such Research Antigen.

(b) Covenants. 
Upon termination of an Exclusive Commercial License with respect to a
particular Licensed Antibody to a given Research Antigen, in the event that
Celldex has filed any patent applications disclosing or claiming Antibodies and
Antibody Materials, or the making or using thereof, obtained through the use of
Medarex Mice and/or Mice Materials with respect to such Research Antigen,
Celldex covenants that it shall, at its election, either abandon, or assign to
Medarex, such patents or patent applications. 
In addition,

 

14

 

Celldex covenants it shall
not commercialize any Antibody and/or Antibody Materials obtained through the
use of such Medarex Mice and/or Mice Materials with respect to such Research
Antigen.  Notwithstanding the foregoing,
if Celldex intends to abandon any such patents or patent applications and such
patents or patent applications, or any scientific articles relating thereto,
have been or will be published, then in lieu of such abandonment, Celldex shall
assign to Medarex such patents or patent applications.  In the event Celldex is to assign such
patents or patent applications to Medarex, Celldex shall execute those
documents, as requested by Medarex, necessary to document and/or perfect the
assignment of such patents and/or patent applications, and upon the completion
of such assignment, Celldex shall provide to Medarex a detailed invoice showing
all costs incurred by Celldex in prosecuting and maintaining such patent
applications and patents prior to the date of such assignment.  Within sixty (60) days of receiving such
detailed invoice, Medarex shall reimburse Celldex for such costs.  It is understood and agreed that Celldex
shall not be obligated to assign to Medarex patent rights in any inventions
that consist solely of the compositions of such Research Antigen itself.  Notwithstanding the foregoing, Celldex shall
retain an irrevocable, royalty-free, worldwide, nonexclusive license, without a
right to sublicense, assign or otherwise transfer such license, from Medarex
under such patents and patent applications, and any foreign equivalents,
divisionals, continuations, CIPs, reissues and reexaminations thereof, and
patents issuing therefrom, to discover, develop and commercialize any and all
antibodies against such Research Antigen, which antibodies are identified using
technology other than Medarex Technology and/or Medarex Mice, Mice Materials,
Antibodies or Antibody Materials.

4.3.4        Existing
Grants.   Celldex
acknowledges and agrees that:  (a)
pursuant to the Cross License Agreement, Medarex has granted a non-exclusive
license under certain Medarex Patent Rights to develop and commercialize
antibody products with respect to antigens, including Research Antigens, in the
Territory; and (b) pursuant to certain existing agreements with third parties,
Medarex has granted exclusive rights under the Medarex Technology to develop
antibody product(s) with respect to antigens other than Research Antigens,
which antibody product(s) could comprise the same antibody(ies) as a Licensed
Antibody(ies).

4.4   Use of
Medarex Mice.  Any use of the
Medarex Mice by Celldex or its Affiliates pursuant to a license granted
pursuant to Section 4.3 shall be subject to the provisions of Sections 2.4,
2.5, 2.6, 11.1 and 11.2.

5.                                      CONSIDERATION

5.1   Immunization
Fees.  If Celldex elects to
have Medarex perform immunizations and characterizations of the Antibodies for
the Research Program pursuant to Section 2.2, Celldex shall pay to Medarex a
non-refundable, non-creditable immunization fee at the then standard rates
charged by Medarex for the performance of such activities per calendar quarter
per Research Antigen.  Any payments
hereunder shall be due concurrently with Celldex’s notice to Medarex that
Celldex wishes Medarex to perform such immunization.

5.2   Research
License Fee; Research License Period Extension Fee.  If Celldex elects to obtain a Research
License from Medarex pursuant to Section 3.1 with respect to a particular Antigen,
there shall be no license fee for the initial Research License Period for such
Antigen. 
If Celldex elects to extend the Research License Period for a
particular Research Antigen pursuant

 

15

 

to Section 3.4.2, then
concurrently with its notice that Celldex wishes to extend the Research License
Period for such Research Antigen, Celldex shall pay to Medarex a
non-refundable, non-creditable license fee of [*****] for each twelve (12)
month extension.

5.3   Exclusive
Commercial License Fees.  If
Medarex notifies Celldex pursuant to Section 4.2.2 that an Exclusive Commercial
License is available with respect to an Antibody (or Backup Antibody(ies)), and
Celldex wishes to exercise its option for an Exclusive Commercial License
pursuant to Section 4.1.1 with respect to such Antibody (or Backup
Antibody(ies)), then Celldex shall pay to Medarex a non-refundable,
non-creditable  license fee of [*****]
for such Exclusive Commercial License within five (5) business days of such
notification or exercise.  Each time
Celldex obtains a new Exclusive Commercial License pursuant to Section 4.3, a
new non-refundable, non-creditable license fee of [*****] shall be due pursuant
to this Section.  For avoidance of
doubt, [*****] shall be due under this Section 5.3 for, collectively, any one
Antibody and the two Backup Antibodies relating thereto identified pursuant to
Section 4.2.1, and [*****]  will be payable hereunder in the event Celldex exercises its rights to
substitute a Backup Antibody for an Antibody, or a second Backup Antibody for
the first Backup Antibody as permitted under Section 4.3.1.

5.4   Milestone
Payments.

5.4.1        Milestones.  Within thirty (30) days following the
occurrence of the relevant events specified below, on a Product-by-Product
basis, with respect to each Product subject to an Exclusive Commercial License,
Celldex shall pay to Medarex the following amounts:

	
  Milestone

  	
   

  	
  1st Product

  	
   

  	
  2nd Product

  	
   

  	
  3rd and Subsequent Products

  	
   

  
	
  1.

  	
   

  	
  Upon
  filing of IND or equivalent

  	
   

  	
  [*****]

  	
   

  	
  [*****]

  	
   

  	
  [*****]

  	
   

  
	
  2.

  	
   

  	
  Upon enrollment of the
  first patient in

  Phase II Clinical Trial

  	
   

  	
  [*****]

  	
   

  	
  [*****]

  	
   

  	
  [*****]

  	
   

  
	
  3.

  	
   

  	
  Upon enrollment of the
  first patient in Phase III Clinical Trial

  	
   

  	
  [*****]

  	
   

  	
  [*****]

  	
   

  	
  [*****]

  	
   

  
	
  4.

  	
   

  	
  Upon filing of the first
  BLA, or

  equivalent

  	
   

  	
  [*****]

  	
   

  	
  [*****]

  	
   

  	
  [*****]

  	
   

  

 

[*****]
REPRESENTS CONFIDENTIAL PORTION WHICH HAS BEEN OMITTED AND FILED SEPARATELY
WITH THE SECURITIES AND EXCHANGE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED WITH RESPECT TO THE OMITTED PORTIONS.

 

16

 

	
  5.

  	
   

  	
  Upon approval of the first BLA, or
  equivalent

  	
   

  	
  [*****]

  	
   

  	
  [*****]

  	
   

  	
  [*****]

  	
   

  
	
  6.

  	
   

  	
  Upon
  approval of the first BLA, or equivalent, in a second jurisdiction

  	
   

  	
  [*****]

  	
   

  	
  [*****]

  	
   

  	
  [*****]

  	
   

  
	
  Totals

  	
   

  	
   

  	
   

  	
  $8,500,000

  	
   

  	
  $7,500,000

  	
   

  	
  $6,500,000

  	
   

  

In the event a Product
achieves Milestone #3, but has not, based on the definitions set forth in
Article 1, achieved Milestone #2, the payment associated with Milestone #2 for
such Product shall nevertheless be due at the same time the payment is due for
such Product with respect to Milestone #3.

In the event a Product
achieves Milestone #4, but has not, based on the definitions set forth in
Article 1, achieved Milestone #2 and/or Milestone #3, the payment(s) associated
with Milestone #2 and/or Milestone #3 for such Product, as applicable, shall
nevertheless be due at the same time the payment is due for such Product with
respect to Milestone #4.

5.4.2        Backup
Products.  The payments set
forth in Section 5.4.1 above shall be made with respect to each Product;
provided, however, if Celldex ceases all clinical development of a particular
Product prior to receiving Approval for such Product but after having made one
or more milestone payments with respect to such Product under Section 5.4.1 (a
“Discontinued Product”), there shall be no payment due upon the accomplishment
of that same milestone, or those same milestones, with respect to the next
Product with specificity for the same Research Antigen as the Discontinued
Product (the “Backup Product”).  When
milestones are achieved with respect to any Backup Product that were not
previously paid with respect to a corresponding Discontinued Product, such
milestone payments shall be paid pursuant to Section 5.4.1 above.

5.4.3        Subsequent
Products.  References under
Section 5.4.1 to milestones with regard to the “first Product,” “second
Product,” and “third and subsequent Products” indicate the order in which the
milestones are reached by the Products being developed by Celldex and do not
necessarily indicate that the initial Product developed by Celldex will meet
all of the “first Product” milestones. 
The milestones payable under Section 5.4.1 shall be paid with respect to
the first Product that reaches the applicable milestone, whether or not such
Product was the first Product to meet the previous milestones, and the
milestones payable for the second Product under Section 5.4.1 shall be paid
with respect to the second Product that reaches the applicable milestone,
whether or not such Product was the second Product to meet the previous
milestones.  For example, if a second
Product receives approval of a BLA or equivalent before the first Product
reaches that milestone, then a $2 million milestone would be payable to Medarex
with

[*****]
REPRESENTS CONFIDENTIAL PORTION WHICH HAS BEEN OMITTED AND FILED SEPARATELY
WITH THE SECURITIES AND EXCHANGE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED WITH RESPECT TO THE OMITTED PORTIONS.

 

17

 

respect to such approval of
the second Product even if the first Product reached the milestone for the
Phase III Clinical Trial first.

5.4.4        Multiple Products to the Same Research Antigen.  If, following Approval of a first Product
against a given Research Antigen, a second or subsequent Product against such
Research Antigen is developed and/or commercialized, further full sets of
milestone payments as set forth in Section 5.4.1 will become due (except as
provided in Section 5.4.2), and will be payable at the time(s) of achievement
of such milestones by each such Product. 
However, it is understood and agreed that such milestones will not be
due for a particular Product for Approval(s) for additional indications with
regard to such Product for which the milestones in Section 5.4.1 were
previously paid.

5.4.5        Reports.  Except as set forth in Section 8.4, within
fifteen (15) days of the occurrence of any event which would trigger a
milestone payment according to this Section 5.4, Celldex shall provide notice
to Medarex of such occurrence.

5.5   Royalties.

5.5.1        Royalty
on Net Sales.  In partial
consideration for any Exclusive Commercial License granted by Medarex, Celldex
shall pay to Medarex a royalty on annual (based on a calendar year) aggregate worldwide
Net Sales of Products on a Product-by-Product basis as follows:  

	
   

  	
   

  	
  Annual Net
  Sales per Product

  	
   

  	
  Royalty
  Rate

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Portion of Annual Net Sales

  	
   

  	
  [*****]

  	
   

  	
  [*****]

  	
   

  
	
  Portion of Annual Net Sales

  	
   

  	
  [*****]

  	
   

  	
  [*****]

  	
   

  
	
  Portion of Annual Net Sales

  	
   

  	
  [*****]

  	
   

  	
  [*****]

  	
   

  

 

5.5.2        Royalty
Rates and Term.  With respect
to the royalty rates for Products, the parties acknowledge and agree that the
patent rights and know-how licensed pursuant to this Agreement justify royalty
rates of differing amounts with respect to sales of such Products, which rates
could be applied separately to Products involving the exercise of such patent
rights and/or the incorporation of such know-how, and that if such royalties
were calculated separately, royalties relating to patent rights and royalties
relating to know-how would last for different terms.  The parties have determined in light of such considerations and
for reasons of convenience that blended royalty rates for the patent rights and
the know-how licensed hereunder will apply during a single royalty term (which
blended royalty rates would be advantageous to

[*****] REPRESENTS CONFIDENTIAL PORTION WHICH
HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT TO THE
OMITTED PORTIONS.

 

18

 

both parties).  Consequently, the parties have agreed to
adopt the royalty rates set forth in Section 5.5.1 hereof.  The royalties due pursuant to Section 5.5.1
shall be payable on a country-by-country
and Product-by-Product basis until the date which is the later of: (i) the
expiration of the last to expire of the patents within the Medarex Patent
Rights covering the Product in each country of manufacture or sale of such
Product (such expiration to occur only after expiration of extensions of any
nature to such patents which may be obtained under applicable statutes or
regulations in the respective countries, such as the Drug Price Competition and
Patent Term Restoration Act of 1984 in the U.S.A. and similar patent extension
laws in other countries), and (ii) the tenth anniversary of the First
Commercial Sale of such Product in such country.  Upon expiration of the royalty term with respect to a Product in
a country (other than as a result of the early termination of this Agreement),
and payment to Medarex of all amounts due under this Agreement with respect to
such Product in such country, the applicable grants under Article 4 with
respect to such Product in such country shall become non-exclusive and fully
paid-up.

5.5.3        Third
Party Royalties.

(a)   Celldex shall be responsible
for the payment of any royalties, license fees and milestone and other payments
due to third parties under license agreements for intellectual property
licensed to Celldex by a third party that is required to make, have made, use,
sell, offer for sale and import Products using the licensed Medarex Technology,
including without limitation, the payment to the Medical Research Council (“MRC”)
of any royalties due the MRC pursuant to the MRC Agreement; provided, however,
that Celldex’s responsibility with respect to the royalties due to MRC shall be
limited to such royalty rate in effect as of the Effective Date or any
reduction in such royalty rate thereafter.

(b)   In the event Medarex
acquires rights to additional intellectual property relating to the Medarex
Mice controlled by a third party pursuant to an agreement that requires no
payments to such third party and that permits Medarex to include such
intellectual property in this Agreement, such intellectual property shall be
included in this Agreement at no additional charge to Celldex.  In the event Medarex acquires rights to
additional intellectual property relating to the Medarex Mice controlled by a
third party pursuant to an agreement that requires payments to such third party
and that permits Medarex to include such intellectual property in this
Agreement, Celldex and Medarex shall negotiate in good faith the terms under
which such intellectual property shall be included in this Agreement, including
without limitation, additional payments to be made by Celldex for the right to
use such intellectual property.  In the
event Celldex and Medarex are unable to agree on such terms, then the subject
matter of such intellectual property shall not be included within the
definition of Medarex Technology, and Celldex shall have no license or rights
with respect to such intellectual property.

6.                                      PAYMENTS

6.1   Timing of
Royalty Payments.  All
royalties due to Medarex shall be paid within thirty (30) days after the last
day of the Calendar Quarter in which they accrue.

6.2   Payment
Method.  All cash amounts due
Medarex hereunder shall be paid in U.S. dollars by wire transfer in immediately
available funds to an account designated by Medarex.

 

19

 

6.3   Currency;
Foreign Payments.  If any
currency conversion shall be required in connection with the payment of any
royalties hereunder, such conversion shall be made by using the exchange rate
for the purchase of U.S. dollars reported by the Chase Manhattan Bank on the
last business day of the Calendar Quarter to which such royalty payments
relate.  If at any time legal restrictions
prevent the prompt remittance of any royalties owed on Net Sales in any
jurisdiction, Celldex may notify Medarex and make such payments by depositing
the amount thereof in local currency in a bank account or other depository in
such country in the name of Medarex, and Celldex shall have no further
obligations under this Agreement with respect thereto.

6.4   Taxes.  All royalty amounts required to be paid to
Medarex pursuant to this Agreement may be paid with deduction for withholding
for or on account of any taxes (other than taxes imposed on or measured by net
income) or similar governmental charge imposed by a jurisdiction other than the
United States (“Withholding Taxes”).  At
Medarex’s request, Celldex shall provide Medarex a certificate evidencing
payment of any Withholding Taxes hereunder and shall reasonably assist Medarex
to obtain the benefit of any applicable tax treaty.

7.                                      REPORTS AND RECORDS

7.1   Royalty
Reports.  Celldex shall
deliver to Medarex within thirty (30) days after the last day of each Calendar
Quarter in which Products are sold a report setting forth in reasonable detail
the calculation of the royalties payable to Medarex for such Calendar Quarter
identifying, by country and Product, the Products sold by Celldex and its
Affiliates and Sublicensees, and the calculation of Net Sales and royalties due
to Medarex.

7.2   Inspection
of Books and Records. 
Celldex and its Affiliates and Sublicensees shall maintain accurate
books and records, which enable the calculation of milestone payments and
royalties payable hereunder to be verified. 
Celldex and its Affiliates and Sublicensees shall retain the books and
records for each quarterly period for three (3) years after the submission of
the corresponding report under Section 7.1 hereof.  Upon thirty (30) days prior notice to Celldex, independent
accountants selected by Medarex and reasonably acceptable to Celldex, may have
access to the books and records of Celldex and its Affiliates and Sublicensees
during normal business hours to conduct a review or audit, solely, however, to the
extent necessary for the purpose of verifying the accuracy of Celldex’s
payments and compliance with this Agreement. 
Celldex shall promptly pay to Medarex any underpayment with interest
from the date such amount(s) were due, at the prime rate reported by the Chase
Manhattan Bank, New York, New York, plus two percent (2%).  Any such inspection or audit shall be at
Medarex’s expense; provided, however, in the event an inspection reveals
underpayment of five percent (5%) or more in any audit period, in addition to
any underpayment Celldex also shall pay the costs of the inspection.

8.                                      DILIGENCE

8.1   Reasonable
Efforts.  Celldex shall use
Commercially Reasonable Efforts to (i) achieve regulatory approvals for the
sale of Products throughout the Territory by submitting registration packages
requesting approval for commercial sale of the Product as soon as reasonably
practicable and (ii) actively pursue commercial sales of each Product in each
country

 

20

 

in which all necessary
regulatory approvals are obtained. 
Commencing as of the Effective Date, Celldex shall use Commercially
Reasonable Efforts to develop, clinically test, manufacture and commercialize
Products.  All costs of development,
clinical testing, manufacturing and commercialization shall be borne by
Celldex, its Affiliates or Sublicensees.

8.2   Lack of
Diligence.  Medarex may
terminate the Exclusive Commercial License granted herein to Celldex with
respect to a particular Licensed Antibody, on a Product-by-Product and Major
Market-by-Major Market (as defined below) basis, effective upon written notice
to Celldex, if Celldex:

8.2.1        abandons development and/or
commercialization of the applicable Product in that particular Major Market and
(i) decides not to engage in commercially reasonable efforts to sublicense such
Product or (ii) discontinues reasonable sublicensing efforts for more than six
(6) months, or

8.2.2        suspends the development and/or
commercialization of the applicable Product in a particular Major Market for
more than nine (9) consecutive months, except for suspensions (i) that have
been requested by official regulatory and safety bodies, or (ii) that Medarex
agrees are necessary for investigating and clarifying untoward pharmacological,
pharmacokinetic, toxicological, or human-clinical observations of the
applicable Product.

For purposes of this Section 8.2, “Major
Market” shall mean each of the United States of America, the European Union,
Canada and Japan.

8.3   Diligence
Obligations.  The parties
agree that the following diligence obligations shall apply to Celldex’s
development and commercialization efforts with regard to a Product
incorporating a Licensed Antibody for which it obtains an Exclusive Commercial
License:

8.3.1        If upon the [*****] anniversary of the
date that Celldex obtains an Exclusive Commercial License with respect to a
Product, Celldex has not filed an IND for such Product in any country, Celldex
shall pay Medarex a nonrefundable, noncreditable fee of [*****] per year to maintain
such Exclusive Commercial License with respect to such Product until the
earlier of (i) the date that Celldex files an IND for such Product in any
country, (ii) the date Celldex terminates the Exclusive Commercial License with
respect to such Product pursuant to Section 4.3.3, or (iii) the [*****]
anniversary of the date that Celldex obtains an Exclusive Commercial License
with respect to such Product.

8.3.2        If upon the [*****]  anniversary of the date that
Celldex obtains an Exclusive Commercial License with respect to a Product,
Celldex has not filed an IND for such Product in any country, all rights
granted to Celldex hereunder with respect to such Product (and corresponding
Antibodies) shall revert to Medarex and the terms of Section 4.3.3 shall apply
with respect to the applicable Exclusive Commercial License.

[*****] REPRESENTS CONFIDENTIAL PORTION WHICH
HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT TO THE
OMITTED PORTIONS.

 

21

 

8.3.3        If upon the [*****] anniversary of the
date that Celldex files an IND, if any, for such Product in any country,
Celldex has not initiated a Phase II Clinical Trial with regard to such
Product, Celldex shall pay a nonrefundable, noncreditable fee equal to fifty
percent (50%) of the milestone payment relating to Phase II clinical trials set
forth in Section 5.4.1 with regard to such Product each year until such time as
Celldex initiates a Phase II Clinical Trials with regard to such Product,
unless Celldex terminates the Exclusive Commercial License with respect to such
Product pursuant to Section 4.3.3.

8.3.4        If upon the [*****] anniversary of the
date that Celldex initiates Phase II Clinical Trials for such Product, Celldex
has not initiated a Phase III Clinical Trial with regard to such Product,
Celldex shall pay a nonrefundable, noncreditable fee equal to fifty percent
(50%) of the milestone payments relating to Phase III Clinical Trials set forth
in Section 5.4.1 with regard to such Product each year until such time as
Celldex initiates Phase III Clinical Trials with regard to such Product, unless
Celldex terminates the Exclusive Commercial License with respect to such Product
pursuant to Section 4.3.3.

8.4   Reports to
Medarex.  During the term of
this Agreement, Celldex shall keep Medarex informed of its development and
commercialization activities subject to this Agreement, and on January 31 of
each year shall provide Medarex with a reasonably detailed written summary of
such events and activities in the preceding year.  When the registration package requesting Approval for commercial
sale of any Product receives Approval [*****], Celldex will notify
Medarex in writing within ten (10) business days thereof.

8.5   Regulatory
Filings.  Celldex (or its
designee) shall file and hold title to all regulatory applications, Approvals
and supplements thereto relating to Products; provided, in the event that the
Exclusive Commercial License rights of Celldex terminate with regard to any
Product and/or country due to Celldex’s decision to terminate its license
pursuant to Section 4.3.3(a) or pursuant to Sections 8.2, 8.3, 8.6 or 13.3,
Medarex (or its designee) shall have access to and the right to use and
reference, without charge, all such regulatory applications, Approvals and
supplements with regard to the applicable Product and/or country, and Celldex
shall cooperate with Medarex to enable Medarex (or its designee) to practice
the foregoing rights.  Medarex shall
reimburse Celldex for any reasonable fees actually incurred by Celldex and that
are charged by a governmental authority that are necessary to effect Medarex’s
right to use and reference all such regulatory applications, Approvals and
supplements with regard to the applicable Product and/or country pursuant to
this Section 8.5.

8.6   Abandoned
Products.  Celldex shall
promptly notify Medarex should it elect to abandon its rights to pursue
commercialization of any Product in any country.  In such event, the terms of Section 4.3.3 shall apply with
respect to such Product in such country and the Exclusive Commercial License
therefor.

[*****] REPRESENTS CONFIDENTIAL PORTION WHICH
HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT TO THE
OMITTED PORTIONS.

 

22

9.                                      CONFIDENTIALITY

9.1   Confidential
Information.  Except as
expressly provided herein, the parties agree that for the term of the Agreement
and for five (5) years thereafter, the receiving party shall keep completely
confidential and shall not publish or otherwise disclose and shall not use for
any purpose except for the purposes contemplated by this Agreement any
Confidential Information of the other party, except to the extent that it can
be established by the receiving party by competent proof that such Confidential
Information:

9.1.1        was already known to the receiving
party, other than under an obligation of confidentiality, at the time of
disclosure;

9.1.2        was generally available to the public or
otherwise part of the public domain at the time of its disclosure to the
receiving party;

9.1.3        became generally available to the public
or otherwise part of the public domain after its disclosure and other than
through any act or omission of the receiving party in breach of this Agreement;

9.1.4        was independently developed by the
receiving party as demonstrated by documented evidence prepared
contemporaneously with such independent development; or

9.1.5        was subsequently lawfully disclosed to
the receiving party by a person other than a party hereto.

9.2   Permitted
Use and Disclosures.  Each
party hereto may use or disclose information disclosed to it by the other party
to the extent such use or disclosure is reasonably necessary in complying with
applicable governmental regulations or otherwise submitting information to tax
or other governmental authorities, conducting clinical trials, or making a
permitted sublicense or otherwise exercising its rights hereunder, provided
that if a party is required to make any such disclosure of another party’s
confidential information, other than pursuant to a confidentiality agreement,
it shall (i) give reasonable advance notice to the latter party of such
disclosure, (ii) if such advance notice is not possible, provide notice of such
disclosure immediately thereafter, (iii) to the extent possible, minimize the
extend of such disclosure, and (iv) save to the extent inappropriate in the
case of patent applications, use its best efforts to secure confidential
treatment of such information prior to its disclosure (whether through protective
orders or otherwise), it being understood that any information so disclosed
shall otherwise remain subject to the limitations on use and disclosure
hereunder.

9.3   Public
Disclosure.  Except as
otherwise required by law, rule or regulation, neither Party shall issue a
press release or make any other public disclosure of this Agreement or the
terms hereof without the prior written approval of the other Party of such
press release or public disclosure and the content thereof; provided, however,
the Parties agree that disclosures of information for which consent has been
previously obtained and of information of a similar nature to that which has
been previously disclosed publicly with respect to this Agreement, each shall
not require advance approval; and provided, further, that, with prior notice to
Celldex, Medarex may make a public disclosure with respect to the specific
stage of development of each Licensed Product as stated in the contents of the
report provided to Medarex by Celldex pursuant

 

23

 

to Section 8.4.  Each Party shall submit any press release or
public disclosure requiring the other Party’s approval to the other Party, and
the receiving Party shall have three (3) business days to review and approve
any such press release or public disclosure, which approval shall not be
unreasonably withheld.  If the receiving
Party does not respond in writing within such three (3) business day period,
the press release or public disclosure shall be deemed approved.  In addition, if a public disclosure is
required by law, rule or regulation, including in a filing with the Securities
and Exchange Commission, other than a filing on Form 10K or Form 10Q, the
disclosing Party shall provide copies of the disclosure reasonably in advance
of such filing or other disclosure for the nondisclosing Party’s prior review
and comment and the Parties shall thereafter mutually agree upon the extent and
nature of any such disclosures, such agreement not to be unreasonably withheld.

9.4   Confidential
Terms.  Except as expressly
provided herein, each party agrees not to disclose any terms of this Agreement
to any third party without the consent of the other party; except that such
consent shall not be required for disclosure to actual or prospective investors
or to a party’s accountants, attorneys and other professional advisors.  In addition, the terms of this Agreement may
be disclosed pursuant to confidentiality obligations at least as strict as is
set forth herein, to sublicensees and actual or potential acquirors or
acquirees.

10.                               REPRESENTATIONS AND WARRANTIES

10.1         Medarex.  Medarex represents and warrants that: (i) it
is a corporation duly organized, validly existing and in good standing under
the laws of the State of New Jersey; (ii) the execution, delivery and
performance of this Agreement have been duly authorized by all necessary
corporate action on the part of Medarex; and (iii) it will not enter into an
agreement that is inconsistent with the rights and licenses granted to Celldex
in this Agreement.

10.2         Celldex.  Celldex represents and warrants that: (i) it
is a company duly organized, validly existing and in good standing under the
laws of the State of Delaware; (ii) the execution, delivery and performance of
this Agreement have been duly authorized by all necessary corporate action on
the part of Celldex; and (iii) it will not enter into an agreement that is
inconsistent with the performance of its obligations hereunder.

10.3         Disclaimer
of Warranties.  THE MEDAREX
MICE ARE PROVIDED “AS IS”, AND EXCEPT AS OTHERWISE EXPRESSLY SET FORTH IN THIS
AGREEMENT, MEDAREX MAKES NO REPRESENTATIONS AND EXTENDS NO WARRANTIES OR
CONDITIONS OF ANY KIND, EITHER EXPRESS OR IMPLIED, WITH RESPECT TO THE MEDAREX
MICE, MICE MATERIALS, ANTIBODIES, ANTIBODY MATERIALS, OR MEDAREX TECHNOLOGY,
INCLUDING, BUT NOT LIMITED TO, WARRANTIES OF MERCHANTABILITY, FITNESS FOR A
PARTICULAR PURPOSE, VALIDITY OF THE PATENT RIGHTS LICENSED HEREUNDER, OR
NONINFRINGEMENT OF THE INTELLECTUAL PROPERTY RIGHTS OF THIRD PARTIES.

10.4         Disclaimer.
EXCEPT AS OTHERWISE EXPLICITLY PROVIDED HEREIN, NOTHING IN THIS AGREEMENT IS OR
SHALL BE CONSTRUED AS:

 

24

 

10.4.1      A WARRANTY OR REPRESENTATION BY MEDAREX AS
TO THE VALIDITY OR SCOPE OF ANY CLAIM OR PATENT WITHIN THE MEDAREX PATENT
RIGHTS;

10.4.2      A WARRANTY OR REPRESENTATION THAT ANYTHING
MADE, USED, SOLD OR OTHERWISE DISPOSED OF UNDER ANY LICENSE GRANTED IN THIS
AGREEMENT IS OR WILL BE FREE FROM INFRINGEMENT OF ANY PATENT RIGHTS OR OTHER
INTELLECTUAL PROPERTY RIGHT OF ANY THIRD PARTY;

10.4.3      AN OBLIGATION TO BRING OR PROSECUTE
ACTIONS OR SUITS AGAINST THIRD PARTIES FOR INFRINGEMENT OF ANY OF THE MEDAREX
PATENT RIGHTS; OR

10.4.4      GRANTING BY IMPLICATION, ESTOPPEL, OR
OTHERWISE ANY LICENSES OR RIGHTS UNDER PATENTS OR OTHER RIGHTS OF MEDAREX OR
THIRD PARTIES, REGARDLESS OF WHETHER SUCH PATENTS OR OTHER RIGHTS ARE DOMINANT
OR SUBORDINATE TO ANY PATENT WITHIN THE MEDAREX PATENT RIGHTS.

10.5         Limitation
of Liability.  MEDAREX’S LIABILITY
ARISING OUT OF THIS AGREEMENT SHALL BE LIMITED TO THE AGGREGATE VALUE OF THE
CONSIDERATION RECEIVED BY MEDAREX FROM CELLDEX UNDER THIS AGREEMENT.

11.                               INTELLECTUAL PROPERTY; OWNERSHIP OF MATERIALS

11.1         Inventorship.  Subject to the terms of this Article 11,
inventorship of any inventions arising out of the Research Program shall be
determined according to U.S. law.

11.2         Ownership
of Biological Materials.  All
right, title and interest in and to the Medarex Mice, the Mice Materials and
Antibody Materials shall at all times remain with and be vested in
Medarex.  Subject to Sections 3.5.1 and
13.4.4, all right, title and interest in and to the Antibodies shall at all
times remain with and be vested in Celldex.

11.3         Ownership
of Inventions Related to Medarex Mice and Mice Materials.  All right, title and interest to any
inventions and intellectual property relating to the Medarex Mice and the Mice
Materials shall (subject to the Research License and any licenses explicitly
granted hereunder) at all times remain with and be vested in Medarex.  Any invention or other intellectual property
made, and data derived, by Celldex or its respective employees, consultants or
agents that relate to the Medarex Mice or Mice Materials shall be owned by
Medarex.  Celldex shall promptly notify
Medarex of any such invention or other intellectual property, and cooperate
with Medarex at Medarex’s request and expense, in the preparation, filing,
prosecution, and defense of patent applications and patents relating thereto.  Subject to the terms of this Article 11, and
except for inventions or other intellectual property that exclusively relate to
Antibodies and/or Antibody Materials and Research Antigens as noted in Section
11.4 below, Celldex shall assign, and hereby assigns, to Medarex, all right,
title and interest to any inventions or other intellectual property that relate
to the Medarex Mice or the Mice Materials, and shall in a

 

25

 

reasonably timely manner
execute those documents, as requested by Medarex, necessary to document and/or
perfect the assignment of such inventions and intellectual property.

11.4         Ownership
of Antibodies and Inventions Related Thereto.

11.4.1      Subject to Section 11.3 and further
subject to Sections 3.5 and 4.3.3, all right, title and interest to the
Antibodies and to results, technical information, inventions and intellectual
property and data resulting directly from the use of the Medarex Mice, Mice
Materials, Antibodies and the Antibody Materials by Celldex and/or Medarex
under the terms of this Agreement shall at all times remain with and be vested
in Celldex.  Medarex shall promptly
notify Celldex of any such invention or other intellectual property, and cooperate
with Celldex at Celldex’s request and expense, in the preparation, filing,
prosecution, and defense of patent applications and patents relating
thereto.  Further, inventions or other
intellectual property made and data derived by Celldex or its employees,
consultants or agents in connection with the Research Program that relate to
the Research Antigens used to immunize Medarex Mice shall be owned by Celldex.

11.4.2      Medarex agrees to assign and hereby
assigns to Celldex all right, title and interest in and to any invention or
other intellectual property made by Medarex or its respective employees,
consultants or agents in the course of activities in connection with the
Research Program that relates solely to the Research Antigens provided by
Celldex.  Notwithstanding the foregoing,
in the event that Celldex terminates a Research License and all Exclusive
Commercial Licenses with respect to a Research Antigen, Celldex hereby grants
to Medarex a worldwide, perpetual, royalty-free nonexclusive license, with the
right to sublicense, under Celldex’s rights in the inventions described under
this Section 11.4.2 to discover, develop and commercialize any and all
antibodies against such Research Antigen(s); provided, however, Celldex shall
not be obligated to grant to Medarex the license described in this Section
11.4.2 in the event that, at the time that Celldex terminates a Research
License and all Exclusive Commercial Licenses with respect to a Research
Antigen, Celldex has entered into an agreement with a third party with respect
to such Research Antigen, which agreement provides for Celldex and/or the third
party to pursue an antibody-development program with respect to such Research
Antigen and such program is actually underway at the time of such license
termination.

11.5         Patent
Filings.  Celldex hereby
covenants that neither Celldex nor its Affiliates nor their respective
employees, consultants or agents shall file any patent applications disclosing
or claiming inventions comprising any Medarex Mice or Mice Materials, or the
making or using thereof, without Medarex’s prior written consent.  In the event Celldex breaches this covenant,
in addition to any other remedies Medarex may have, Celldex shall (i) assign to
Medarex all right, title, and interest to all patent applications and patents
issuing thereon, and (ii) execute those documents, as requested by Medarex,
necessary to document and/or perfect the assignment of such patent applications
and patents issuing thereon.

11.6         Patent Prosecution.

11.6.1      Celldex
Patent Rights.  Celldex shall
be solely responsible, at its expense and in its sole discretion, for the
preparation, filing, prosecution and maintenance of the patent applications and
patents owned by or on behalf of Celldex claiming Antibodies and Antibody 

 

26

 

Materials in countries
selected by Celldex, and for conducting any interferences, reexaminations,
reissues, oppositions, or request for patent term extension relating thereto.

11.6.2      Medarex
Patent Rights.  Medarex shall
be responsible, at its expense and in its sole discretion, for the preparation,
filing, prosecution and maintenance of the Medarex Patent Rights and for
conducting any interferences, reexaminations, reissues, oppositions, or request
for patent term extensions relating thereto. 
In addition, Medarex shall have the sole right, but not the obligation,
at its expense, to prepare, file, prosecute and maintain the patent
applications and patents assigned to Medarex by Celldex pursuant to Sections
3.5.2, 4.3.3(b) and 11.3, and to conduct any interferences, reexaminations,
reissues, oppositions, or request for patent term extensions relating thereto.

11.6.3      Celldex’s
Failure to Prosecute.  In the
event that Celldex declines to file or, having filed, declines to further
prosecute and maintain any patent applications or patents subject to Section
11.6.1 above, Celldex shall provide Medarex notice thereof prior to the
expiration of any deadline relating to such activities, but in any event at
least thirty (30) days prior notice, and Medarex shall have the right to file,
prosecute and maintain such patent applications or patents in the name of
Celldex, at Medarex’s expense, using counsel of its choice, which patent
applications and patents shall be owned by Celldex.

11.6.4      Cooperation. Celldex shall keep Medarex reasonably
informed and shall respond to all reasonable requests for information made by
Medarex, with regard to Celldex’s activities pursuant to Section 11.6.1 above.  Likewise, Medarex shall keep Celldex
reasonably informed and shall respond to all reasonable requests for
information made by Celldex with regard to Medarex’s activities pursuant to
Section 11.6.2 above as they relate to the Licensed Antibody(ies) and
Product(s).

11.7         Infringement
Claims.  If the manufacture,
importation, sale or use of a Product pursuant to this Agreement results in any
claim, suit or proceeding alleging patent infringement against Medarex or
Celldex, such party shall promptly notify the other party hereto.  The defendant shall keep each other party
hereto reasonably informed of all material developments in connection with any
such claim, suit or proceeding.

12.                               INDEMNIFICATION

12.1         Medarex.  Medarex shall indemnify, defend and hold
harmless Celldex and its directors, officers and employees (each an “Celldex
Indemnitee”) from and against any and all liabilities, damages, losses, costs
or expenses (including attorneys’ and professional fees and other expenses of
litigation and/or arbitration) (“Liabilities”) resulting from a claim, suit or
proceeding made or brought by a third party against an Celldex Indemnitee
arising from or occurring as a result of any breach of the representations and
warranties set forth in Section 10.1, except to the extent caused by the
negligence or willful misconduct of Celldex.

12.2         Celldex.  Celldex shall indemnify, defend and hold
harmless Medarex and its directors, officers and employees (each a “Medarex
Indemnitee”) from and against any and all Liabilities resulting from a claim,
suit or proceeding made or brought by a third party against a Medarex
Indemnitee, arising from or occurring as a result of (i) any breach of the
representations 

 

27

 

and warranties set forth in
Section 10.2, (ii) the use of the Medarex Mice, conduct of the Research
Program, or the practice by Celldex of any right granted herein, except those
that arise from infringement or appropriation of intellectual property rights
with respect to Medarex Mice or Mice Materials, or (iii) any development, testing,
manufacture, importation, use, offer for sale, sale or other distribution of
any Research Antigen, Antibody or Product by Celldex or its Affiliates or
Sublicensees (including, without limitation, product liability claims), except
in each case, to the extent caused by the negligence or willful misconduct of
Medarex.

12.3         Procedure.  In the event that a party indemnified
hereunder (an “Indemnitee”) intends to claim indemnification under this Article
12, such Indemnitee shall promptly notify the other party (the “Indemnitor”) in
writing of such alleged Liability.  The
Indemnitor shall have the sole right to control the defense and settlement
thereof.  The Indemnitees shall cooperate
with the Indemnitor and its legal representatives in the investigation of any
action, claim or liability covered by this Article 12.  The Indemnitee shall not, except at its own
cost and risk, voluntarily make any payment or incur any expense with respect
to any claim or suit without the prior written consent of the Indemnitor, which
the Indemnitor shall not be required to give. 
The Indemnitor shall not be required to provide indemnification with
respect to a Liability the defense of which is prejudiced by the failure to
give notice by the Indemnitee or the failure of the Indemnitee to cooperate
with the Indemnitor or where the Indemnitee settles or compromises a Liability
without the written consent of the Indemnitor.

13.                               TERM AND TERMINATION

13.1         Term.  The term of this Agreement shall commence on
the Effective Date.  Unless earlier
terminated as provided in Sections 2.7.1, 2.7.2 and this Article 13, this
Agreement shall continue in full force and effect on a country-by-country and
Product-by-Product basis until there are no remaining royalty payment
obligations in a country, at which time the Agreement shall expire in its
entirety in such country.  Upon such
expiration and following the completion of the payment of all royalties due
with respect to a particular Product in such country, Celldex shall have a
fully paid, royalty-free, perpetual license under the Medarex Know How to
commercialize such Product in such country.

13.2         Breach.  Any failure by a party to comply with any of
its obligations contained herein shall entitle the party not in breach to give
to the party in breach notice specifying the nature of the breach, requiring
the breaching party to make good or otherwise cure such breach.  If such breach is not cured within thirty
(30) days after the receipt of such notice (or, if such breach cannot be cured
within such thirty (30)-day period, if the party in breach does not commence
actions to cure such breach within such period and thereafter diligently
continue such actions or if such breach is not otherwise cured within ninety
(90) days after the receipt of such notice), the party not in breach shall then
be entitled to pursue the rights and remedies available to it by law or in
equity.

13.3         Termination
for Insolvency.  If voluntary
or involuntary proceedings by or against a party are instituted in bankruptcy
under any insolvency law, or a receiver or custodian is appointed for such
party, or proceedings are instituted by or against such party for corporate
reorganization or the dissolution of such party, which proceedings, if
involuntary, shall not have been dismissed within sixty (60) days after the
date of filing, or if such party makes an 

 

28

 

assignment for the benefit
of creditors, or substantially all of the assets of such party are seized or
attached and not released within sixty (60) days thereafter, the other party
may immediately terminate this Agreement effective upon notice of such
termination.

13.4         Effect
of Termination or Expiration.

13.4.1      Accrued
Rights and Obligations. 
Termination or expiration of this Agreement for any reason shall not
release either party hereto from any liability which, at the time of such
termination or expiration, has already accrued to the other party or which is
attributable to a period prior to such termination or expiration or preclude
either party from pursuing any rights and remedies it may have hereunder or at
law or in equity with respect to any breach of, or default under, this
Agreement.  It is understood and agreed
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 injunctive relief
as a partial remedy for any such breach.

13.4.2      Return
of Confidential Information. 
Upon any termination or expiration of this Agreement, Celldex and Medarex
shall promptly return to the other party all Confidential Information of the
other; provided, however, that counsel of each party may retain one (1) copy of
such Confidential Information for archival purposes and for ensuring compliance
with Article 9.

13.4.3      Inventory
on Hand.  In the event this
Agreement is terminated for any reason, Celldex and its Sublicensees shall have
the right to sell or otherwise dispose of the inventory of any Product subject
to this Agreement then on hand until the first anniversary of the effective
date of such termination, any such sale or distribution to be subject to the
relevant terms of this Agreement, including without limitation Articles 5, 6
and 7.

13.4.4      Destruction
of Biological Materials. 
Pursuant to Sections 3.5 and 4.3.3 or upon any termination of this
Agreement, Celldex shall promptly destroy all Medarex Mice, and any Mice
Materials, as well as all Antibodies and Antibody Materials derived from the
Medarex Mice, and an officer of Celldex shall provide Medarex with written
certification thereof.  Upon any
expiration of this Agreement, Celldex shall promptly destroy all Medarex Mice
and any Mice Materials, and an officer of Celldex shall provide Medarex with
written certification thereof.

13.4.5      Licenses.  Except for expiration under Section 13.1,
the license(s) granted Celldex in this Agreement shall terminate upon any
termination of this Agreement and in such event Celldex shall cease, and cause
its Affiliates and Sublicensees to cease, all development and commercialization
of Products.  Any assignment to Medarex
pursuant to Sections 2.4, 3.5.2, 4.3.3(b) and 11.3 shall remain in effect
following any termination of this Agreement.

13.5         Survival.  Sections 2.4.2, 2.6, 3.5, 4.3.3, 7.2, 11.1,
11.2, 11.3, 11.4, 13.4, 13.5, 14.1, 14.5 and 14.7  and Articles 9, 10 and 12  of
this Agreement shall survive expiration or termination of this Agreement for
any reason, except that Article 12 shall survive only with respect to
liabilities that arise from acts or circumstances that occurred prior to
termination or expiration.  Section 13.1
of this Agreement shall survive expiration of this Agreement.

 

29

 

14.                               MISCELLANEOUS

14.1         Governing
Law.  This Agreement and any
dispute arising from the performance or breach hereof shall be governed by and
construed and enforced in accordance with the laws of the state of New Jersey,
without reference to conflicts of laws principles.  Any claim or controversy arising out of or related to this
Agreement or any breach hereof shall be submitted to a court of applicable
jurisdiction in the State of New Jersey, and each party hereby consents to the
jurisdiction and venue of such court.

14.2         Independent
Contractors.  The
relationship of the parties hereto is that of independent contractors.  The parties hereto are not deemed to be
agents, partners or joint venturers of the others for any purpose as a result
of this Agreement or the transactions contemplated thereby.

14.3         Assignment.  Neither party may assign this Agreement to
any third party without the written consent of the other party, which consent
shall not be unreasonably withheld; provided, however, that either party may
assign this Agreement, without the other party’s consent (a) to its Affiliates,
and (b) to an entity that acquires all or substantially all of the business or
assets of the assigning party to which this Agreement pertains, whether by
merger, reorganization, acquisition, sale or otherwise.

14.4         Binding
Effect.  This Agreement shall
be binding upon and inure to the benefit of the parties and their successors
and permitted assigns.

14.5         Notices.  All notices, requests and other
communications hereunder shall be in writing and shall be personally delivered
or sent by facsimile transmission or by registered or certified mail, return
receipt requested, postage prepaid, in each case to the respective address
specified below, or such other address as may be specified in writing to the
other parties hereto.  Any such notice
shall be deemed to have been given as of the day of personal delivery, one (1)
day after the date sent by facsimile transmission or five (5) days following
the date deposited with the United States Postal Service as registered or
certified mail, return receipt requested.

	
  If to Medarex:

  	
   

  	
  Medarex,
  Inc.

  
	
   

  	
   

  	
  707
  State Road, Suite 206

  
	
   

  	
   

  	
  Princeton,
  NJ  08540

  
	
   

  	
   

  	
  U.S.A.

  
	
   

  	
   

  	
  Attn:  President

  
	
   

  	
   

  	
  Fax No.: (609) 430-2850

  

 

	
  With a copy to:

  	
   

  	
  Medarex,
  Inc.

  
	
   

  	
   

  	
  707
  State Road, Suite 206

  
	
   

  	
   

  	
  Princeton,
  NJ  08540

  
	
   

  	
   

  	
  U.S.A.

  
	
   

  	
   

  	
  Attn:  General Counsel

  
	
   

  	
   

  	
  Fax No.: (609) 430-4215

  

 

30

 

	
  If to Celldex:

  	
   

  	
  Celldex
  Therapeutics, Inc.

  
	
   

  	
   

  	
  519
  Route 173W

  
	
   

  	
   

  	
  Bloomsbury,
  New Jersey 08804

  
	
   

  	
   

  	
  Attn:  Chief Executive Officer

  
	
   

  	
   

  	
  Fax No.: 
  (908) 713-6002

  

 

	
  With a copy to:

  	
   

  	
  Morgan,
  Lewis & Bockius LLP

  
	
   

  	
   

  	
  502
  Carnegie Center

  
	
   

  	
   

  	
  Princeton,
  New Jersey  08540

  
	
   

  	
   

  	
  Attn:  Randall B. Sunberg, Esq.

  
	
   

  	
   

  	
  Fax No.:  (877) 432-9652

  

 

14.6         Force
Majeure.  Neither party shall
lose any rights hereunder or be liable to the other party for damages or losses
(except for payment obligations) on account of failure by the nonperforming
party where the cause of such failure is (i) beyond the reasonable control of
such nonperforming party, such causes including without limitation war, act of
terrorism, strike, fire, act of god, earthquake, flood, lockout, embargo,
governmental acts or orders or restrictions, or failure of suppliers, (ii) not
caused by the negligence, intentional conduct or misconduct of such
nonperforming party, and (ii) such nonperforming party has exerted all
reasonable efforts to avoid or remedy such force majeure; provided, however,
that in no event shall a party be required to settle any labor dispute or
disturbance.

14.7         Injunctive
Relief.  Celldex acknowledges
that limitations and restrictions on its possession and use of Medarex Mice and
Mice Materials hereunder are necessary and reasonable to protect Medarex, and
expressly agrees that monetary damages would be inadequate to compensate
Medarex for any violation by Celldex of any such limitations or
restrictions.  The parties agree that
any such violation would cause irreparable injury to Medarex and agree that
without resorting to prior mediation, and, in addition to any other remedies that
may be available in law, in equity or otherwise, Medarex may be entitled to
seek temporary and permanent injunctive relief against any threatened violation
of such limitations or restrictions or the continuation of any such violation
in any court of competent jurisdiction, without the necessity of proving actual
damages.

14.8         Compliance
with Laws.  Subject to the
provisions of Article 9, each party shall use reasonable efforts to furnish to
the other party any information reasonably requested or required by that party
during the term of this Agreement or any extensions hereof to enable that party
to comply with the requirements of any U.S. or foreign federal, state and/or
government agency.

14.9         Further
Assurances.  At any time or
from time to time on and after the date of this Agreement, either party shall
at the request of the other party hereto (i) subject to the provisions of
Article 9, deliver to the requesting party any records, data or other documents
consistent with the provisions of this Agreement, and (ii) execute, and deliver
or cause to be delivered, any necessary consents, documents or further
instruments of transfer or license.

 

31

 

14.10       Retained
Rights; No Further Rights. 
Only the licenses granted pursuant to the express terms of this
Agreement shall be of any legal force or effect.  No other license rights shall be granted or created by
implication, estoppel or otherwise.  It
is understood and agreed that Medarex shall retain rights to make, have made,
import, use, offer for sale, sell and otherwise commercialize the Mice, itself
or with third parties, for any uses, other than those for which Celldex has
been granted licenses under this Agreement.

14.11       Export
Controls.  Celldex agrees
that it shall take all actions necessary to insure compliance with all U.S.
laws, regulations, orders or other restrictions on exports and further shall
not sell, license or reexport, directly, or indirectly, the Product(s) to any
person or entity for sale in any country or territory, if, to the knowledge of
Celldex based upon reasonable inquiry, such sale, would cause the parties to be
in violation of any such laws or regulations now or hereafter in effect.  Celldex agrees to secure from any recipient
of Product(s) adequate manually signed written assurances prior to shipment
from the United States as are required by the U.S. Export Regulations.

14.12       Severability.  In the event that any provision of this
Agreement is determined to be invalid or unenforceable by a court of competent
jurisdiction, the remainder of the Agreement shall remain in full force and
effect without said provision.  In such
event, the parties shall in good faith negotiate a substitute clause for any
provision declared invalid or unenforceable, which shall most nearly
approximate the intent of the parties in entering this Agreement.

14.13       Waiver.  It is agreed that no waiver by either party
hereto of any breach or default of any of the covenants or agreements herein
set forth shall be deemed a waiver as to any subsequent and/or similar breach
or default.

14.14       Complete
Agreement.  This Agreement
constitutes the entire agreement, both written and oral, between the parties
with respect to the subject matter hereof, and all prior agreements respecting
the subject matter hereof, either written or oral, expressed or implied, are
superseded hereby.  No amendment or
change hereof or addition hereto shall be effective or binding on either of the
parties hereto unless reduced to writing and duly executed on behalf of both
parties.

14.15       Use of
Name.  Except as required by
law, neither party shall use the name or trademarks of the other party without
the prior written consent of such other party.

14.16       Headings.  The captions to the several sections and
articles hereof are not a part of this Agreement, but are included merely for
convenience of reference only and shall not affect its meaning or
interpretation.

14.17       Counterparts.  This Agreement may be executed in two (2) counterparts, each of
which shall be deemed an original and which together shall constitute one
instrument.

 

32

 

IN WITNESS WHEREOF, Medarex and Celldex have
executed this Agreement by their respective duly authorized representatives.

	
  MEDAREX, INC.

  	
   

  	
   

  	
  CELLDEX THERAPEUTICS, INC.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Print
  Name:

  	
   

  	
   

  	
  Print
  Name:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  	
  Title:

  	
   

  

 

	
  GENPHARM INTERNATIONAL, INC.

  
	
   

  
	
  By:

  	
   

  
	
   

  	
   

  
	
  Print
  Name:

  	
   

  
	
   

  	
   

  
	
  Title:

  	
   

  

 

 

33

 

Exhibit A

 

 

RESEARCH ANTIGENS

 

[*****]

 

 

 

 

 

 

 

 

 

[*****] REPRESENTS CONFIDENTIAL PORTION WHICH HAS BEEN
OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.
CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00072-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00072-of-00352.parquet"}]]