Document:

Exhibit 10.2

Execution Copy

OPTION AND LICENSE AGREEMENT

This
Option and License Agreement (this “Agreement”) is made effective as of
December 21, 2006 (the “Effective Date”) by and between ImmunoGen, Inc., a
Massachusetts corporation with a principal place of business at 128 Sidney
Street, Cambridge, Massachusetts 02139 (“ImmunoGen”), and sanofi-aventis U.S. LLC, a limited liability
company organized and existing under the laws of Delaware with offices at 1041
Rt. 202-206, Bridgewater, NJ 08807 (“sanofi-aventis”).  Each of sanofi-aventis and ImmunoGen is
sometimes referred to individually herein as a “Party” and collectively as the “Parties.”

WHEREAS,
sanofi-aventis is the owner of or otherwise Controls certain Patent Rights and
Technology relating to certain proprietary Antibodies; and

WHEREAS,
ImmunoGen is the owner of or otherwise Controls certain proprietary Patent
Rights and Technology relating to or otherwise useful in the conjugation of
certain maytansine compounds to Antibodies; and

WHEREAS, ImmunoGen has
entered into agreements based on the so-called “Revolving-Door” structure with
a number of Third Parties whereby such Third Parties are obligated to grant
back to ImmunoGen the right to such Third Parties’ improvements to Technology
and Patent Rights, and pursuant to which ImmunoGen has the right to grant
access to such Third Party Improvements to sanofi-aventis; and

WHEREAS,
sanofi-aventis desires to have access to such Technology, Patent Rights and
Improvements for research, discovery and development of Ab-MAY Products (as
defined below); and

WHEREAS,
in connection therewith, sanofi-aventis desires to receive, and ImmunoGen
desires to grant, Options to obtain one or more licenses to Licensed Technology
having the terms set forth in one or more License Agreements to be executed by
the Parties.

NOW,
THEREFORE, in consideration of the mutual covenants contained herein, and for
other good and valuable consideration, the receipt and adequacy of which are
hereby acknowledged, the Parties hereby agree as follows:

1.             DEFINITIONS

Whenever
used in this Agreement with an initial capital letter, the terms defined in
this Section 1 shall have the meanings specified below.

1.1           “Ab-MAY Product”
means any product containing a conjugate of a Sanofi-aventis Antibody with a
MAY Compound in which the Sanofi-aventis Antibody is directed against a Target
that is not an Excluded Target.

1.2           “Affiliate” means, with respect to any Party, any Person that,
directly or through one or more Affiliates, controls, or is controlled by, or
is under common control with, such Party.  For purposes of this definition, “control”
means (a) ownership of more than fifty percent (50%)

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

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of the shares of stock
entitled to vote for the election of directors in the case of a corporation, or
more than fifty percent (50%) of the equity interests in the case of any other
type of legal entity, (b) status as a general partner in any partnership, or
(c) any other arrangement whereby a Person controls or has the right to control
the board of directors of a corporation or equivalent governing body of an
entity other than a corporation.

1.3           “Antibody” means a
polyclonal or monoclonal antibody, whether multiple or single chain,
recombinant or naturally occurring, whole or fragment, and any variants,
derivatives or constructs thereof, including but not limited to, antigen
binding portions including Fab, Fab’, F(ab’)2, Fv, dAb and CDR fragments,
single chain antibodies (scFv), chimeric antibodies, diabodies and polypeptides
(including any humanized versions thereof) that contain at least a portion of
an immunoglobulin that is sufficient to confer specific antigen binding to the
polypeptide.

1.4           “Antibody-MAY Compound Conjugate”
means any compound containing a conjugate of an Antibody with a MAY Compound.

1.5           “Applicable
Laws” means Federal, state, local, national and supra-national
laws, statutes, rules and regulations, including any rules, regulations,
guidance, guidelines or requirements of Regulatory Authorities, national
securities exchanges or securities listing organizations, that may be in effect
from time to time during the Term and applicable to a particular activity
hereunder.

1.6           “Business Day” means a day on which
banking institutions in New York, New York are open for business.

1.7           “Confidential
Information” means (a) with respect to ImmunoGen, all tangible
embodiments of Licensed Technology and Licensed Patent Rights; (b) with respect
to sanofi-aventis, the identification by sanofi-aventis of a Proposed Target
and the exercise by sanofi-aventis of any Option with respect to an Optioned
Target; and (c) with respect to each Party, all information and Technology
disclosed or provided by or on behalf of such Party (the “disclosing Party”) to
the other Party (the “receiving Party”) or to any of the receiving Party’s
employees, consultants, Affiliates or sublicensees, provided, that, none of the
foregoing shall be Confidential Information if: (i) as of the date of
disclosure, it is known to the receiving Party or its Affiliates as
demonstrated by credible contemporaneous written documentation, other than by
virtue of a prior confidential disclosure to such receiving Party; (ii) as of
the date of disclosure it is in the public domain, or it subsequently enters
the public domain through no fault of the receiving Party; (iii) it is obtained
by the receiving Party from a Third Party having a lawful right to make such
disclosure free from any obligation of confidentiality to the disclosing Party;
or (iv) it is independently developed by or for the receiving Party without
reference to or use of any Confidential Information of the disclosing Party as
demonstrated by credible contemporaneous written documentation.  For purposes of clarity, the terms of this
Agreement shall constitute Confidential Information of each Party.

1.8           “Control” or “Controlled” means (a) with respect
to Technology or Patent Rights, the possession by a Party of the right to grant
a license or sublicense to such Technology or Patent Rights as provided herein
without the payment of additional consideration to, and without violating the
terms of any agreement or arrangement with, any Third Party and (b) with

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respect to any Antibody, the possession by a
Party of the right to supply such Antibody to the other Party as provided
herein without the payment of additional consideration to, and without
violating the terms of any agreement or arrangement with, any Third Party.

1.9           “Designated Senior Officer” means,
with respect to a Party, the senior officer of such Party or an Affiliate
designated by such Party to have final decision making authority over disputed
matters.

1.10         “Field” means all
human therapeutic, prophylactic and diagnostic uses.

1.11         “ImmunoGen Antibody”
means any Antibody Controlled, owned or made available by ImmunoGen.

1.12         “Improvement” means any enhancement,
improvement or modification to the Licensed Technology or the Licensed Patent
Rights.

1.13         “License Agreement”
means a written license agreement executed by the Parties upon exercise of any
Option pursuant to Section 2.2.2 in substantially the form set forth in Appendix A
attached hereto.

1.14         “Licensed Patent Rights” means any of the patents and patent applications
described in Schedule 1 attached hereto, and any divisionals,
continuations, continuations-in-part (to the extent that any
continuations-in-part are entitled to the priority date of an initial patent or
patent application which is the subject of this Agreement), reissues,
reexaminations, confirmations, revalidations, registrations, patents of
addition, renewals, extensions or substitutes thereof, or any patents issuing
therefrom or any supplementary protection certificates related thereto,
including any Improvement related thereto that is conceived or reduced to
practice by ImmunoGen or its Third Party collaborators, that are Controlled by
ImmunoGen and that include one
or more claims that cover Licensed Technology.

1.15         “Licensed Target”
means an Optioned Target following exercise of an Option as set forth in
Section 2.2.2 and which is the subject of a License Agreement between the
Parties.

1.16         “Licensed Technology” means any Technology Controlled by
ImmunoGen as of the Effective Dateorthat is Controlled by ImmunoGen at any
time during the Term including, without limitation, any Improvement related
thereto that is conceived or reduced to practice by ImmunoGen or its Third
Party collaborators and that is, in any case, necessary or useful for sanofi-aventis to practice the research
licenses set forth in Section 2.3.

1.17         “Manufacturing Cost” means,
with respect to any Preclinical Materials manufactured by ImmunoGen, ImmunoGen’s
fully-burdened costs (including the costs associated with product testing and
release activities) of producing and packaging such Preclinical Materials,
including the sum of the following components: (a) direct costs, including (1)
materials directly used in producing and packaging such Preclinical Materials
and (2) with respect to any Preclinical Materials obtained by ImmunoGen from a
Third Party and supplied to sanofi-aventis without modification, the amount
paid by ImmunoGen to such Third Party for the same; (b) manufacturing overhead
costs attributable to the cost of goods under the foregoing clause(a)(1),
including manufacturing and quality labor and manufacturing and quality

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supervisory
services, operating and administrative costs of the manufacturing and quality
departments and occupancy costs which are allocable to company departments
based on space occupied or headcount or another reasonable activity-based
method; for the purpose of clarity, any cost allocation shall be (i) in any
case, applied in accordance with GAAP, and (ii) applied consistently by
ImmunoGen in relation to all other Third Parties for which ImmunoGen
manufactures comparable materials; (c) any other reasonable and customary
out-of-pocket costs borne by ImmunoGen for the testing, transport, customs
clearance, duty, insurance and/or storage of such Preclinical Materials; and
(d) ImmunoGen’s general and administrative costs, including purchasing, human
resources, payroll, information system and accounting, which are directly
attributable or reasonably allocable to company departments based on space
occupied or headcount.

1.18         “MAY Compound”
means any and all maytansinoid compounds (including, without limitation,
maytansinol, ansamitocins, DM1 and DM4), whether produced by a botanical
source, natural fermentation, chemical synthesis or otherwise, and shall
include, without limitation, all variants, fragments or derivatives of any of
the foregoing, in each case Controlled by ImmunoGen.

1.19         “Option Agreement” means the Option
Agreement between the Parties dated as of August 31, 2006.

1.20         “Option Grant Date” means, with
respect to a Proposed Target that is not an Excluded Target, the date of the
Option Response provided by ImmunoGen.

1.21         “Optioned Target” means any Proposed
Target that is not an Excluded Target and becomes the subject of an Option
granted by ImmunoGen pursuant to Section 2.2.1.

1.22         “Patent
Rights” means the rights and interests in and to issued patents
and pending patent applications (including inventor’s certificates and utility
models) in any country or jurisdiction within the Territory, including all
provisionals, substitutions, continuations, continuations-in-part, divisionals,
supplementary protection certificates, renewals, all letters patent granted
thereon, and all reissues, reexaminations, extensions, confirmations,
revalidations, registrations, patents of addition thereof, PCTs and foreign
counterparts.

1.23         “Preclinical Materials” means any
materials (including without limitation any supplies of MAY Compound or Ab-MAY
Product) manufactured by ImmunoGen for sanofi-aventis
pursuant to this Agreement and in accordance with Applicable Laws and all
applicable specifications for use in preclinical testing.

1.24         “Sanofi-aventis Antibody”
means any Antibody and other binding proteins Controlled by, owned by or
made available to sanofi-aventis.

1.25           “Sanofi-aventis Improvement” means any Improvement that is
conceived or first reduced to practice by sanofi-aventis in connection with the
exercise by sanofi-aventis of the licenses set forth in Section 2.3.

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1.26         “Target” means
any particular antigen (whether a protein, carbohydrate, etc.) that is bound by
a particular Antibody used to create an Ab-MAY Product, and all epitopes of
such particular antigen.

1.27         “Technology” means, collectively,
all inventions, discoveries, improvements, trade secrets and proprietary methods, whether or not patentable,
including without limitation, macromolecular sequences, data, formulations,
processes, techniques, know-how and results (including any negative results).

1.28         “Territory” means
all countries of the world.

1.29         “Third Party” means
any person or entity other than ImmunoGen, sanofi-aventis and their respective
Affiliates.

Additional
Definitions.  In addition, each of the following
definitions shall have the respective meanings set forth in the section of this
Agreement indicated below:

	
  Definition

  	
   

  	
  Section

  
	
   

  	
   

  	
   

  
	
  Agreement

  	
   

  	
  Recitals

  
	
  Covered Results

  	
   

  	
  4.3

  
	
  Disputed Matter

  	
   

  	
  8.14.1

  
	
  Excluded Target

  	
   

  	
  2.2.1

  
	
  Expired Option

  	
   

  	
  2.2.3

  
	
  Expired Option Tail Period

  	
   

  	
  2.2.3

  
	
  ImmunoGen

  	
   

  	
  Recitals

  
	
  ImmunoGen Indemnitees

  	
   

  	
  8.17.1

  
	
  Indemnifying Party

  	
   

  	
  8.18

  
	
  License Response

  	
   

  	
  2.2.5

  
	
  License Request

  	
   

  	
  2.2.5

  
	
  Option

  	
   

  	
  2.2.1

  
	
  Option Period

  	
   

  	
  2.2.2

  
	
  Option Request

  	
   

  	
  2.2.1

  
	
  Option Response

  	
   

  	
  2.2.1

  
	
  Party/Parties

  	
   

  	
  Recitals

  
	
  Proposed Target

  	
   

  	
  2.2.1

  
	
  Research Term

  	
   

  	
  2.3.5

  
	
  Research Term Exercise Fee

  	
   

  	
  3.2

  
	
  sanofi-aventis

  	
   

  	
  Recitals

  
	
  sanofi-aventis Indemnitees

  	
   

  	
  8.17.2

  
	
  Terminated Option

  	
   

  	
  2.2.4

  
	
  Term

  	
   

  	
  7.1

  
	
  Third Party Right

  	
   

  	
  2.2.1

  

 

2.             GRANT OF RIGHTS

2.1           Option to Initiate Research
Term.  ImmunoGen hereby grants sanofi-aventis an
option (the “Research Term Option”), at sanofi-aventis’ sole discretion, to
initiate the Research

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Term by providing written notice of election to
ImmunoGen and paying the Research Term Exercise Fee on, or prior to, August 31,
2008 (the date of such election, the “Research Term Exercise Date”).

2.2           Exclusive Target Options.

2.2.1        Option Request and Grant.  Sanofi-aventis may from time to time during
the Research Term provide written notice to ImmunoGen requesting the grant by
ImmunoGen of an exclusive option (each such option, an “Option”) (the “Option
Request”) to obtain an exclusive license in the Territory under the Licensed
Technology and Licensed Patent Rights, with respect to any Target specified in
the Option Request (each, a “Proposed Target”), for the sole purpose of
researching, making and having made, Ab-MAY Products directed to such Proposed
Target, for any and all uses within the Field. 
ImmunoGen shall provide a written response (the “Option Response”) to
sanofi-aventis within [***] ([***]) Business Days of any Option Request
specifying whether or not the Proposed Target is available to be the subject of
an Option and, if unavailable, the reasons for such unavailability as set forth
in this Section 2.2.1 (it being understood that the foregoing disclosure shall
be subject to any confidentiality obligations ImmunoGen may have with any Third
Party), provided, that, ImmunoGen hereby acknowledges and agrees that it may
only treat a Proposed Target that is identified in an Option Request as
unavailable (each, an “Excluded Target”) if, on the date of the Option Request, (a) ImmunoGen is pursuing an internal
development or commercialization program with a MAY Compoundconjugated with an ImmunoGen Antibody that
is directed against such Proposed Target; (b) ImmunoGen has, with respect to the
Proposed Target, granted an exclusive option or license to a Third Party under
any Patent Rights Controlled by ImmunoGen that are necessary or useful for the
development, manufacture, use or sale of Antibody-MAY Compound Conjugates (a “Third
Party Right”); or (c) ImmunoGen is in discussions with a Third Party relating
to a potential grant of a Third Party Right.  Upon the grant of an Option to a Proposed
Target to sanofi-aventis as provided in this Section 2.2.1, the Proposed
Target shall be deemed to be an Optioned Target for purposes of this Agreement
and, for the duration of the Option Period, (i) sanofi-aventis shall have the
rights granted in Section 2.3.2 and (ii) ImmunoGen shall not initiate or engage
in discussions with any Third Party concerning a Third Party Right with respect
to the Optioned Target, or pursue internally any development or
commercialization program concerning an
Antibody-MAY Compound Conjugate directed against the Optioned
Target.  Notwithstanding anything to the
contrary set forth in this Agreement, the Parties hereby agree that
sanofi-aventis shall have the right to select and maintain no more than [***] ([***]) Optioned Targets at any
given time during the Term, provided, that, Expired Options and Terminated
Options shall not count as Optioned Targets for purposes of this limitation.

2.2.2        Exercise of Options.  Sanofi-aventis shall have the right to
exercise any Option at any time during
the period commencing on the Option Grant Date and continuing for a period of [***]
([***]) months thereafter (as such period may be extended as provided in
Section 2.2.5 below, the “Option Period”), by (a) delivering written
notice of exercise thereof, which notice shall specify the Optioned Target and
(b) executing a License Agreement in the form of Appendix A attached
hereto.  Upon exercise of an Option
covering an Optioned Target as provided in this Section 2.2.2, such Optioned
Target shall become a Licensed Target and the Licensed Patent Rights and
Licensed Technology (as defined in the License Agreement) shall be

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exclusively licensed with respect to such
Licensed Target to sanofi-aventis on the terms and subject to the conditions
set forth in the relevant License Agreement.

2.2.3        Option Expiration.  In
the event that sanofi-aventis fails to exercise any Option during the
applicable Option Period (each, an “Expired Option”), all rights granted
by ImmunoGen to sanofi-aventis pursuant to Section 2.2.1 applicable to such
Expired Option shall terminate as of such expiration date; provided, that, if
the Option becomes an Expired Option prior to expiration of the Research Term,
the non-exclusive research license granted pursuant to Section 2.3.1 below for
the Optioned Target that is the subject of such Expired Option shall again be
in effect and shall survive, and such non-exclusive license will continue until
the date on which ImmunoGen provides written notice to sanofi-aventis that such
Target has become an Excluded Target. 
Notwithstanding the foregoing, following the expiration of any Option
Period with respect to an Optioned Target, (a) ImmunoGen shall have the right
to initiate or engage in discussions with any Third Party concerning a Third
Party Right or pursue internally any project concerning, any rights regarding an Antibody-MAY Compound Conjugate directed to the
Target covered by such Expired Option; (b) during the period commencing on the
date of expiration of the Option Period and continuing for a period of [***] ([***])
months (the “Expired Option Tail Period”), sanofi-aventis may not provide an
Option Request to ImmunoGen with respect to the Target that is the subject of
the Expired Option; and (c) on and after the Expired Option Tail Period but
prior to the expiration of the Research Term, and subject to notice,
availability and limitations pursuant to this Section 2.2, sanofi-aventis shall
have the right, upon written request, to provide an Option Request to ImmunoGen
with respect to the Target covered by such Expired Option.

2.2.4        Termination of Options.  Sanofi-aventis may terminate any Option
that is not an Expired Option at any time on and after [***] ([***]) months
from the Option Grant Date by providing written notice of termination to
ImmunoGen, which notice shall identify the Optioned Target to be terminated
(each, a “Terminated Option”).  Upon termination of an Option as provided in
this Section 2.2.4, sanofi-aventis shall have the rights set forth in
Section 2.2.3 above, as if the Terminated Option were an Expired Option (subject to notice, availability and
other limitations set forth in this Section 2.2), and at such time or
thereafter sanofi-aventis may select and be granted another Option to replace
the Terminated Option, subject to limitations on the number of Options set
forth in Section 2.2.1.

2.2.5        Non-Optioned Target: Request
for Exclusive License.  Notwithstanding anything to the contrary in
this Agreement, sanofi-aventis may at any time during the Research Term request
the grant by ImmunoGen of an exclusive license to any Target that is not an
Optioned Target by giving written notice to ImmunoGen (the “License Request”),
which License Request shall specify in reasonable detail the Target.  ImmunoGen shall provide a written response
(the “License Response”) to sanofi-aventis within [***] ([***]) Business Days
of any License Request specifying whether or not the Target specified in the
License Request is available to be the subject of an exclusive license and, if
unavailable, the reasons for such unavailability as set forth in Section
2.2.1.  As promptly as possible following
the issuance by ImmunoGen of a License Response indicating that the Target is
available to be the subject of an exclusive license (a) the Parties
shall execute a License Agreement in the form of Appendix A attached
hereto.  Upon execution of such License
Agreement, such Target shall become a Licensed Target and the Licensed Patent
Rights and Licensed Technology (as defined in the

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License Agreement) shall be exclusively
licensed with respect to such Licensed Target to sanofi-aventis on the terms
and subject to the conditions set forth in the relevant License Agreement.

2.2.6        Discussions Regarding Targets.  ImmunoGen agrees, upon the request of
sanofi-aventis, to confer with sanofi-aventis on whether ImmunoGen reasonably
expects any Target identified by sanofi-aventis will remain available to become
an Optioned Target and/or Licensed Target, provided, that under no circumstances
shall any such discussions be deemed by sanofi-aventis to be a commitment by
ImmunoGen with respect to any such Target.

2.3           Non-Exclusive Research
License; Option for Exclusive Research License.

2.3.1        Non-Exclusive Research
License.  ImmunoGen hereby grants sanofi-aventis a
non-exclusive, royalty-free license during the Research Term, without the right
to grant sublicenses, under the Licensed Technology and Licensed Patent Rights
with respect to any Target that is not an Optioned Target or a Licensed Target
(including any Optioned Target that is the subject of an Expired Option and/or
Terminated Option), to (a) conduct safety and other preclinical studies in vitro and toxicity studies in vivo
in any non-human species with any Ab-MAY Product directed at such Target, (b)
to manufacture Ab-MAY Product solely for use in such studies and (c) to
manufacture and conjugate MAY Compounds that do not comprise an Ab-MAY Product
solely for use as a control for any Ab-MAY Product that is directed at an
Optioned Target.  For purposes of
clarity, sanofi-aventis shall have no right under the license described in this
Section 2.3.1 to conduct in vivo
efficacy studies of any Ab-MAY Product to any Target that is not an Optioned
Target or Licensed Target.

2.3.2        Exclusive Research License.  ImmunoGen hereby grants sanofi-aventis an exclusive, royalty-free
license during the Research Term, without the right to grant sublicenses, with
respect to any Optioned Target, to (a) conduct any and all preclinical studies
(including without limitation in vivo
efficacy studies) on any Ab-MAY Product directed at such Optioned Target; and
(b) manufacture Ab-MAY Product solely for use in such studies.

2.3.3        Use of Subcontractors; bona fide Collaborators.  Sanofi-aventis shall have the right to engage one or more Third Party
subcontractors to perform designated functions, or participate in bona fide collaborations, related to the
conduct of the activities described in Section 2.3.1 and 2.3.2, provided, that (i) sanofi-aventis shall remain responsible for the satisfactory
accomplishment of such activities in accordance with the terms and conditions
of this Agreement; and (ii) each such Third Party subcontractor or bona fide collaborator shall be bound to
the same extent that sanofi-aventis is obligated to ImmunoGen under this
Agreement.

2.3.4        Research Records. 
Sanofi-aventis shall maintain records of access to and use of the
Licensed Technology and Licensed Patent Rights. 
Such records shall be made available to ImmunoGen upon reasonable
request during business hours and provided that ImmunoGen shall make such
request no more than once per Calendar Year.

2.3.5        Research Term.  Subject to the payment of the Research Term
Exercise Fee as provided in Section 3.2 below and to the extension as provided
in Section 2.3.6 below, the research term shall commence on the Research Term
Exercise Date and continue until August 31, 2011 (the “Research Term”), unless
this Agreement is earlier terminated by either Party

 8
 

pursuant to the provisions of
Section 8.  Unless otherwise provided in a License
Agreement or otherwise set forth in this Agreement, upon termination or
expiration of the Research Term, sanofi-aventis shall discontinue use of the
Licensed Technology and Licensed Patent Rights and destroy all portions and
copies of the Licensed Technology and Licensed Patent Rights, provided,
however, that sanofi-aventis shall have the right to retain one (1) copy for
its legal files.

2.3.6        Extension of Research Term.  Sanofi-aventis
may extend the Research Term for one additional three (3) year period (ending
on August 31, 2014) by providing written notice and by paying ImmunoGen a
non-refundable, non-creditable fee in the amount of [***] [***] dollars (US $[***])
by wire transfer of immediately available funds at any time prior to the
expiration of the Research Term.

2.4           Grant of Improvement License
to ImmunoGen.  Sanofi-aventis hereby grants ImmunoGen
a non-exclusive, worldwide, fully-paid, irrevocable, royalty-free license of
perpetual duration, with the right to grant sublicenses as described below,
under sanofi-aventis’ interest in any Sanofi-aventis Improvements (a) to
manufacture Preclinical Materials pursuant to the terms of this Agreement; (b)
to develop, make, have made, use, sell, have sold, offer for sale, import, have
imported, export and have exported any product that is not otherwise restricted
by an agreement by and between sanofi-aventis and ImmunoGen; and (c) to
otherwise exploit such Sanofi-aventis Improvements for all uses within the
Field that are not otherwise restricted by an agreement by and between
sanofi-aventis and ImmunoGen, provided, that, (i) any grant by ImmunoGen of a
sublicense is only made in connection with the grant of a license to Technology
and/or Patent Rights Controlled by ImmunoGen and used in the conjugation of MAY
Compounds to binding proteins; and (ii) the right of ImmunoGen to grant any
such sublicense is subject to sanofi-aventis obtaining a grant back of a
non-exclusive, fully paid, irrevocable, royalty-free license, under that sublicensee’s
improvements, enhancements or modifications to Technology Controlled by
ImmunoGen to conduct research in the Field and in the Territory in accordance
with Sections 2.3.1 and/or 2.3.2 of this Agreement.

2.5           Notice of Improvements.  Sanofi-aventis shall promptly notify ImmunoGen
of the conception or reduction to practice of any such Sanofi-aventis
Improvement. ImmunoGen shall promptly notify sanofi-aventis of (a) the
conception or reduction to practice by ImmunoGen of any Improvement or (b) its
receipt of written notice from any of its Third Party collaborators of its
conception or reduction to practice of any Improvement.

2.6           Manufacture of Research and/or Preclinical Materials. 
Subject to this Section 2.6, Sanofi-aventis shall have the sole
right, at its sole cost and discretion, for the manufacture of all materials
(including without limitation any Ab-MAY Products and/or MAY Compounds)
necessary for sanofi-aventis to
practice the licenses granted to it under Sections 2.3.1 and/or 2.3.2.  In
the event that, during the Term, sanofi-aventis desires ImmunoGen to supply
sanofi-aventis with quantities of Preclinical Materials, sanofi-aventis shall
provide ImmunoGen with written notice of same. 
ImmunoGen shall manufacture all ordered amounts of Preclinical Materials
at ImmunoGen’s Cambridge, Massachusetts facility or its Norwood, Massachusetts
facility and deliver such ordered amounts in accordance with forecasting
parameters, advance ordering timeframes and delivery timeframes to be agreed
upon by the Parties.  Sanofi-aventis may [***],
at its sole discretion, the [***] [***] [***] ImmunoGen will supply the
requested

 9
 

Preclinical Materials.  In connection with any ordering of
Preclinical Materials by sanofi-aventis, (a) ImmunoGen shall provide sanofi-aventis
with ImmunoGen’s good faith estimate of the Manufacturing Cost for manufacture
and supply of such Preclinical Materials; (b) ImmunoGen’s price to supply
Preclinical Materials to sanofi-aventis manufactured at ImmunoGen’s Cambridge,
Massachusetts facility shall equal [***]% of ImmunoGen’s Manufacturing Cost for
such Preclinical Materials; and (c) ImmunoGen’s price to supply Preclinical
Materials manufactured at ImmunoGen’s Norwood, Massachusetts facility shall
equal [***]% of ImmunoGen’s Manufacturing Cost for such Preclinical Materials;
provided, that, nothing in this Section 2.6 shall preclude sanofi-aventis from
making its own arrangements for manufacture and supply of Preclinical Materials
on its own or with Third Parties, subject to the licenses granted hereunder.

3.             FINANCIAL TERMS

3.1           Up-Front Fee.  In consideration of the rights granted to
sanofi-aventis under this Agreement, sanofi-aventis agrees to pay ImmunoGen a
non-refundable, non-creditable up-front fee in the amount of five hundred
thousand dollars ($500,000), payable in immediately available funds within [***]
([***]) days of the Effective Date.

3.2           Research Term Exercise Fee In consideration of the rights granted to
sanofi-aventis under this Agreement, sanofi-aventis agrees to pay ImmunoGen a
non-refundable, non-creditable exercise fee in the amount of [***] [***] [***] [***]
[***] dollars ($[***]) (the “Research Term Exercise Fee”), payable in
immediately available funds within [***] ([***]) Business Days of the Research
Term Exercise Date.

4.             TREATMENT OF CONFIDENTIAL
INFORMATION

4.1           Confidentiality.

4.1.1        Confidentiality
Obligations.  ImmunoGen and sanofi-aventis each recognizes
that the other Party’s Confidential Information constitutes highly valuable
assets of such other Party.  ImmunoGen
and sanofi-aventis each agrees that, subject to Section 4.1.2, (a) during the
Term and for an additional [***] ([***]) years thereafter it will not disclose,
and will cause its Affiliates and Sublicensees not to disclose, any
Confidential Information of the other Party and (b) during and after the Term,
it will not use, and will cause its Affiliates not to use, any Confidential
Information of the other Party, in either case, except as expressly permitted
hereunder.  Without limiting the
generality of the foregoing, each Party shall take such action, and shall cause
its Affiliates and sublicensees to take such action, to preserve the
confidentiality of the other Party’s Confidential Information as such Party
would customarily take to preserve the confidentiality of its own Confidential
Information and shall, in any event, use at least reasonable care to preserve
the confidentiality of the other Party’s Confidential Information.

4.1.2        Limited Disclosure.  ImmunoGen and sanofi-aventis each agrees that
disclosure of its Confidential Information may be made by the other Party to
any employee, consultant or Affiliate of such other Party to enable such other
Party to exercise its rights or to carry out its responsibilities under this
Agreement, provided that any such disclosure or transfer shall only be made to
Persons who are bound by written obligations as described in Section 4.1.3.

 10
 

In addition, ImmunoGen and sanofi-aventis
each agrees that the other Party may disclose its Confidential Information (a)
on a need-to-know basis to such other Party’s legal and financial advisors and
(b) as reasonably necessary in connection with an actual or potential (i)
permitted sublicense of such other Party’s rights hereunder, (ii) debt or
equity financing of such other Party or (iii) purchase by any Third Party of
all of the capital stock or all or substantially all of the assets of such
other Party or any merger or consolidation involving such other Party; if, in
each case, the Person receiving such Confidential Information of the other
Party agrees in writing to maintain the confidentiality of such Confidential
Information of the other Party with terms at least as restrictive as those
contained in Section 4.1.1.  In addition,
each Party agrees that the other Party may disclose such Party’s Confidential
Information (A) as reasonably necessary to file, prosecute or maintain patents
or patent applications, or to file, prosecute or defend litigation related to
patents or patent applications, in accordance with this Agreement; or (B) as
required by Applicable Laws, provided that, in the case of any disclosure under
this clause (B), the disclosing Party shall (1) if practicable, provide
the other Party with reasonable advance notice of and an opportunity to comment
on any such required disclosure, (2) if requested by the other Party,
cooperate in all reasonable respects with the other Party’s efforts to obtain
confidential treatment or a protective order with respect to any such
disclosure, at the other Party’s expense and (3) use good faith efforts to
incorporate the comments of such other Party in any such disclosure or request
for confidential treatment or a protective order.

4.1.3        Employees
and Consultants.  ImmunoGen and sanofi-aventis each hereby
represents that all of its employees and consultants, and all of the employees
and consultants of its Affiliates, who participate in the activities
contemplated by this Agreement or have access to Confidential Information of
the other Party are or will, prior to their participation or access, be bound
by written obligations to maintain such Confidential Information in confidence
and not to use such information except as expressly permitted hereunder.  Each Party agrees to use, and to cause its
Affiliates to use, reasonable efforts to enforce such obligations.

4.2           Publicity. 
The Parties acknowledge that the terms of this Agreement constitute
Confidential Information of each Party and may not be disclosed except as
permitted by Section 4.1.2.  Notwithstanding
anything to the contrary in Section 4.1, the Parties, upon the execution of
this Agreement, shall mutually agree to a press release with respect to this
Agreement and either Party may make subsequent public disclosure of the
contents of such press release without further approval of the other
Party.  After issuance of such press
release, except as required by Applicable Laws, neither Party shall issue a
press or news release or make any similar public announcement (other than
publication in scientific journals, in advertising materials and brochures, or
presentation at scientific conferences and meetings and the like that are
intended to be covered by, and are issued in compliance with, Section 4.3)
related to events arising under this Agreement without the prior written
consent of the other Party, provided that notwithstanding the foregoing,
ImmunoGen shall be expressly permitted to publicly announce the exercise
of an Option under Section 2.1.3, provided, however, that the text of such
announcement shall be mutually agreed to by the Parties.

4.3           Publications and Presentations.  The Parties acknowledge that
scientific publications and presentations must be strictly monitored to prevent
any adverse effect from premature publication or dissemination of results of
the activities hereunder.  Each Party
agrees that, except as required by Applicable Laws, it shall not publish or
present, or permit to be

 11
 

published or presented, the results of the
research conducted by sanofi-aventis under or pursuant to this Agreement to the
extent such results refer to or otherwise relate to the Licensed Technology or
Licensed Patent Rights (the “Covered Results”) without the prior review by and
approval of the other Party.  Each Party
shall provide to the other Party the opportunity to review each of the submitting
Party’s proposed abstracts, manuscripts or presentations (including, without
limitation, information to be presented verbally) that relate to the Covered
Results at least [***] ([***]) days prior to its intended presentation or
submission for publication, and such submitting Party agrees, upon written
request from the other Party given within such [***]-[***] period, not to
submit such abstract or manuscript for publication or to make such presentation
until the other Party is given up to [***] ([***]) days from the date of such
written request to seek appropriate patent protection for any Covered Rights in
such publication or presentation that it reasonably believes may be
patentable.  Once such abstracts,
manuscripts or presentations have been reviewed and approved by each Party, the
same abstracts, manuscripts or presentations do not have to be provided again
to the other Party for review for a later submission for publication.  Each Party also shall have the right to
require that any of its Confidential Information that is disclosed in any such
proposed publication or presentation be deleted prior to such publication or
presentation.  In any permitted
publication or presentation by a Party, the other Party’s contribution shall be
duly recognized, and co-authorship shall be determined in accordance with
customary industry standards.

5.             INTELLECTUAL PROPERTY
RIGHTS

Except as otherwise expressly provided herein, all
inventions and discoveries governed by this Agreement shall be owned based on
inventorship, as inventorship is determined in accordance with United States
patent law.  Notwithstanding anything to
the contrary in this Agreement, Sanofi-aventis Improvements shall be solely
owned by sanofi-aventis, and Licensed Technology and Licensed Patent Rights shall
be solely owned by ImmunoGen.

6.             PROVISIONS CONCERNING THE FILING,
PROSECUTION AND MAINTENANCE OF PATENT RIGHTS

6.1           Applicability.  The
provisions of this Section 6 shall be applicable to all patents covering
Licensed Technology and Licensed Patent Rights unless and until they become
subject to a License Agreement, whereupon the License Agreement will govern the
rights of the Parties with respect to the subject matter thereof.

6.2           Patent Filing.

6.2.1        Licensed Technology.  ImmunoGen,
acting through patent counsel or agents of its choice, shall be responsible, at
its sole cost and expense, for the preparation, filing, prosecution and
maintenance of all Licensed Patent Rights. 
All costs and expenses incurred by ImmunoGen in connection with the
preparation, filing, prosecution and maintenance of Licensed Patent Rights
shall be the sole responsibility of ImmunoGen. 
At ImmunoGen’s request, sanofi-aventis shall cooperate with ImmunoGen in
all reasonable respects in connection with such preparation, filing, prosecution
and maintenance of Licensed Patent Rights.

 12
 

6.2.2        Sanofi-aventis Improvements. Sanofi-aventis, acting through patent
counsel or agents of its choice, shall be responsible, at its sole cost and
expense, for the preparation, filing, prosecution and maintenance of patent applications and patents constituting
Patent Rights claiming Sanofi-aventis Improvements.  Sanofi-aventis (i) will provide
ImmunoGen with a copy of any such proposed patent application for review and
comment reasonably in advance of filing, and (ii) will keep ImmunoGen
reasonably informed of the status of such filing, prosecution and maintenance,
including, without limitation, (A) by providing ImmunoGen with copies of
all communications received from or filed in patent office(s) with respect to
such filing, and (B) by providing ImmunoGen a reasonable time prior to
taking or failing to take any action that would affect the scope or validity of
any such filing (including the substantially narrowing, cancellation or
abandonment of any claim(s) without retaining the right to pursue such subject
matter in a separate application, or the failure to file or perfect the filing
of any claim(s) in any country), with prior written notice of such proposed
action or inaction so that ImmunoGen has a reasonable opportunity to review and
comment.  If sanofi-aventis fails to
undertake the filing(s) of any such patent application with respect to any such
invention within [***] ([***]) days after receipt of written notice from
ImmunoGen that ImmunoGen believes filing(s) of such an application by
sanofi-aventis is appropriate, ImmunoGen may undertake such filing(s) at its
own expense, in which case sanofi-aventis will assign all of its rights to such
Improvements to ImmunoGen and any subsequently issued patent thereon will be
owned solely by ImmunoGen.

6.2.3        Cooperation.  Each
Party agrees to cooperate reasonably with the other Party in the preparation,
filing, and prosecution of any patent applications pursuant to this
Section 6.2.  Such cooperation
includes, but is not limited to, executing all papers and instruments, or
requiring its employees or agents to execute such papers and instruments, so as
to effectuate the ownership of such patent applications and any patents thereon
and to enable the filing and prosecution of applications in any country.

6.3           Infringement.

6.3.1        Sanofi-aventis Improvements. 
Sanofi-aventis shall have all rights, at its own expense, to bring suit
(or other appropriate legal action) against any actual or suspected
infringement of Patent Rights claiming Sanofi-aventis Improvements.

6.3.2        ImmunoGen Technology. 
ImmunoGen shall have all rights, at its own expense, to bring suit (or
other appropriate legal action) against any actual or suspected infringement of
the Licensed Patent Rights.

6.4           Cooperation.  Each
Party shall give notice to the other Party of any potential infringement or
actual infringement by a Third Party of any Patents Rights covering Licensed
Technology and shall execute all papers and perform such other acts (other than
monetary) as may be reasonably required to maintain any infringement suit
brought in accordance with Section 6.3 above (including giving legal
consent for bringing such suit, and agreeing to be named as a plaintiff or
otherwise joined in such suit), and at its option and expense, may be
represented in such suit by counsel of its choice.  In addition, the Parties shall reasonably
cooperate with each other in obtaining patent term restoration or supplemental
protection

 13
 

certificates or their equivalents in any country in
the Territory where applicable to Licensed Patent Rights.

6.5           No Obligation.  No
Party shall have any obligation to the other Party under this Agreement to pay
any fees or costs: (i) for that Party’s bringing a lawsuit or other action
to enforce any Licensed Patent Rights, or any other patent owned by a Party
against an actual or suspected infringement or (ii) for any other Party to
obtain for its own benefit independent business or legal advice concerning any
of the patent rights set forth in clause (i) hereof.

7.             TERM AND TERMINATION

7.1           Term. 
Unless earlier terminated as provided in this Section 7, the term
of this Agreement shall expire upon the later of the expiration of the Research
Term or the last to expire of the Option Periods (the “Term”).

7.2           Termination.  This
Agreement and the rights and options granted herein may be terminated by either
Party upon any material breach by the other Party of any material obligation or
condition, effective [***] ([***]) days after giving written notice to the
breaching Party of such termination in the case of a payment breach and [***] ([***])
days after giving written notice to the breaching Party of such termination in
the case of any other breach, which notice shall describe such breach in reasonable
detail.  The foregoing notwithstanding,
if such default or breach is cured or shown to be non-existent within the
aforesaid [***] ([***]) or [***] ([***]) day period, the notice shall be
automatically withdrawn and of no effect. 
However, prior to giving any notice for breach, the Parties shall first
attempt to resolve any disputes as to the existence of any breach as set forth
in Section 8.14.  Additionally,
until such time as sanofi-aventis has exercised the Research Term Option,
sanofi-aventis shall have the further right to terminate this Agreement upon
providing not less than [***] ([***]) days’ written notice to ImmunoGen of such
termination.

7.3           Remedies.  If
either Party shall fail to perform or observe or otherwise breaches any of its
material obligations under this Agreement, in addition to any right to
terminate this Agreement, the non-defaulting Party may elect to obtain other
relief and remedies available under law.

7.4           Surviving Provisions. 
Notwithstanding any provision herein to the contrary, the rights and
obligations set forth in Sections 2.3.6, 4, 5, 6.2, 7.4, 8.4, 8.5, 8.6, 8.16
and 8.17 hereof shall survive the expiration of the Term or the termination of
this Agreement.  All other rights and licenses
of the Parties set forth in this Agreement shall terminate.

8.             REPRESENTATIONS, WARRANTIES AND
COVENANTS

8.1           Mutual Representations and Warranties.  ImmunoGen and sanofi-aventis each
represents and warrants to the other, as of the Effective Date, as follows:

8.1.1        Organization.  It is a corporation duly organized, validly
existing and in good standing under the laws of the jurisdiction of its organization, and has all requisite
power and authority, corporate or otherwise, to execute, deliver and perform
this Agreement.

 14
 

8.1.2        Authorization.  The execution and delivery of this Agreement
and the performance by it of the transactionscontemplated hereby
have been duly authorized by all necessary corporate action and will not
violate (a) such Party’s certificate of incorporation or bylaws, (b) any
agreement, instrument or contractual obligation to which such Party is bound in
any material respect, (c) any requirement of any Applicable Law, or (d) any
order, writ, judgment, injunction, decree, determination or award of any court
or governmental agency presently in effect applicable to such Party.

8.1.3        Binding Agreement.  This Agreement is a legal, valid and binding
obligation of such Party enforceable against it in accordance with its terms
and conditions.

8.1.4        No Inconsistent Obligation.  It
is not under any obligation, contractual or otherwise, to any Person that
conflicts with or is inconsistent in any respect with the terms of this
Agreement or that would impede the diligent and complete fulfillment of its
obligations hereunder.

8.2           Additional
Representations of ImmunoGen. 
ImmunoGen further represents and warrants to sanofi-aventis, as of
the Effective Date, as follows:

8.2.1        Licensed Patent Rights.  All
Licensed Patent Rights existing as of the Effective Date are existing and, to
ImmunoGen’s knowledge, no such Licensed Patent Rights are invalid or
unenforceable.

8.2.2        Claims or Judgments.  There are no claims, judgment or
settlements against ImmunoGen pending, or to ImmunoGen’s knowledge, threatened,
that invalidate or seek to invalidate the Licensed Patent Rights existing as of
the Effective Date.

8.2.3        Right to Technology.  ImmunoGen has
the right to (a) use the Licensed Technology and Licensed Patent Rights
existing as of the Effective Date as is necessary to fulfill its obligations under this Agreement; and (b) grant the licenses under the
Licensed Patent Rights granted pursuant to this Agreement.

8.2.4        No Infringement.  To ImmunoGen’s knowledge, no Third Party is
infringing, or threatening to infringe, the Licensed Patent Rights.

8.2.5        No Litigation.  To ImmunoGen’s knowledge, there is no pending
or threatened litigation that alleges
that ImmunoGen’s proposed activities under this Agreement would infringe or
misappropriate any intellectual property rights of any Third Party.

8.3           Covenant.  ImmunoGen agrees to use commercially
reasonable efforts to maintain the right, to
(a) use the Licensed Technology and Licensed Patent Rights existing as of the
Effective Date as is necessary to fulfill its obligations under this Agreement;
and (b) grant the licenses under the Licensed Patent Rights granted pursuant to
this Agreement.

9.             INDEMNIFICATION

9.1           Indemnification
of sanofi-aventis by ImmunoGen. 
ImmunoGen shall indemnify, defend and hold harmless sanofi-aventis, its
Affiliates, their respective directors,

 15
 

officers, employees and agents, and their
respective successors, heirs and assigns (collectively, the “sanofi-aventis
Indemnitees”), against all liabilities, damages, losses and expenses
(including, without limitation, reasonable attorneys’ fees and expenses of
litigation) (collectively, “Losses”) incurred by or imposed upon the
sanofi-aventis Indemnitees, or any one of them, as a direct result of claims,
suits, actions, demands or judgments of Third Parties, including without
limitation personal injury and product liability claims and claims of suppliers
and ImmunoGen employees (collectively, “Claims”), arising out of the material
breach by ImmunoGen of this Agreement, except with respect to any Claim or
Losses that result from a material breach of this Agreement by, or the gross
negligence or willful misconduct of, sanofi-aventis, provided that, with
respect to any Claim for which ImmunoGen has an obligation to any
sanofi-aventis Indemnitee pursuant to this Section 9.1 and sanofi-aventis has
an obligation to any ImmunoGen Indemnitee pursuant to Section 9.2, each Party
shall indemnify each of the other Party’s Indemnitees for its Losses to the
extent of its responsibility, relative to the other Party, for the facts
underlying the Claim.

9.2           Indemnification
of ImmunoGen by sanofi-aventis. 
Sanofi-aventis shall indemnify, defend and hold harmless ImmunoGen, its
Affiliates, their respective directors, officers, employees and agents, and
their respective successors, heirs and assigns (the “ImmunoGen Indemnitees”),
against any Losses incurred by or imposed upon the ImmunoGen Indemnitees, or
any one of them, as a direct result of Claims arising out of (a) the material
breach by sanofi-aventis of this Agreement; (b) the development or
commercialization (including, without limitation, the production, manufacture,
promotion, import, sale or use by any Person) of any MAY Compound or Ab-MAY
Product by sanofi-aventis or any of its Affiliates, Sublicensees, distributors
or agents, except with respect to any Claim or Losses that result from a breach
of this Agreement by, or the gross negligence or willful misconduct of,
ImmunoGen, provided that with respect to any Claim for which ImmunoGen has an
obligation to any sanofi-aventis Indemnitee pursuant to Section 9.1 and sanofi-aventis
has an obligation to any ImmunoGen Indemnitee pursuant to this Section 9.2,
each Party shall indemnify each of the other Party’s Indemnitees for its Losses
to the extent of its responsibility, relative to the other Party, for the facts
underlying the Claim.

9.3           Conditions
to Indemnification.  A
Person seeking recovery under Sections 9.1 or 9.2(the
“Indemnified Party”) in respect of a Claim shall give prompt notice of such
Claim to the Party from which recovery is sought (the “Indemnifying Party”)
and, provided that the Indemnifying Party is not contesting its obligation
under Sections 9.1 or 9.2, shall permit the Indemnifying Party to control any
litigation relating to such Claim and the disposition of such Claim, provided
that the Indemnifying Party shall (a) act reasonably and in good faith with
respect to all matters relating to the settlement or disposition of such Claim
as the settlement or disposition relates to such Indemnified Party and (b) not
settle or otherwise resolve such claim without the prior written consent of
such Indemnified Party (which consent shall not be unreasonably withheld,
conditioned or delayed).  Each
Indemnified Party shall cooperate with the Indemnifying Party in its defense of
any such Claim in all reasonable respectsand shall have
the right to be present in person or through counsel at all legal proceedings
with respect to such Claim.

9.4           Warranty Disclaimer.  EXCEPT AS OTHERWISE EXPRESSLY PROVIDED IN
THIS AGREEMENT, NEITHER PARTY MAKES ANY WARRANTY WITH RESPECT

 16
 

TO ANY TECHNOLOGY, GOODS, SERVICES, RIGHTS OR OTHER
SUBJECT MATTER OF THIS AGREEMENT AND EACH PARTY HEREBY DISCLAIMS ALL
WARRANTIES, EXPRESS OR IMPLIED, INCLUDING WITHOUT LIMITATION WARRANTIES OF
MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE AND NONINFRINGEMENT.

9.5           Limited Liability.  NOTWITHSTANDING ANYTHING TO THE CONTRARY IN
THIS AGREEMENT, NEITHER PARTY SHALL BE LIABLE TO THE OTHER PARTY OR ANY OF ITS
AFFILIATES FOR (I) ANY SPECIAL, PUNITIVE, INDIRECT, INCIDENTAL OR CONSEQUENTIAL
DAMAGES, INCLUDING WITHOUT LIMITATION LOST PROFITS OR LOST REVENUES, OR (II)
COST OF PROCUREMENT OF SUBSTITUTE GOODS, TECHNOLOGY OR SERVICES, WHETHER UNDER
ANY CONTRACT, WARRANTY, NEGLIGENCE, STRICT LIABILITY OR OTHER LEGAL OR
EQUITABLE THEORY.

10.          MISCELLANEOUS

10.1         Notices.  Any
notices, requests, deliveries, approvals or consents required or permitted to
be given under this Agreement to sanofi-aventis or ImmunoGen shall be in
writing and shall be effective on receipt when delivered to the applicable
address specified below (or to such other address as may be specified in
writing to the other Party hereto):

	
  If to ImmunoGen:

  	
  ImmunoGen, Inc.

  
	
   

  	
  128 Sidney
  Street

  
	
   

  	
  Cambridge, MA
  02139

  
	
   

  	
  Attn: Chief
  Executive Officer

  
	
   

  	
   

  
	
  With a copy to:

  	
  Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C.

  
	
   

  	
  One Financial
  Center

  
	
   

  	
  Boston, MA 02111

  
	
   

  	
  Attn: [***]
  [***] [***], Esq

  
	
   

  	
  Telecopy:
  617-542-2241

  
	
   

  	
   

  
	
  If to
  sanofi-aventis:

  	
  sanofi-aventis U.S. Inc.

  
	
   

  	
  1041 Rt.202-206

  
	
   

  	
  Bridgewater, NJ
  08807

  
	
   

  	
  Attn: Head, US
  Alliance & Partnerships

  
	
   

  	
   

  
	
  With a copy to:

  	
   

  
	
   

  	
  Attn: Head, US
  R&D Legal

  

 

Except as otherwise expressly provided in this
Agreement or mutually agreed in writing, any notice, communication or document
(excluding payment) required to be given or made shall be deemed given or made
and effective upon actual receipt or, if earlier, (a) three (3) business days
after deposit with an internationally-recognized overnight express courier with
changes prepaid, or (b) five (5) business days after mailed by certified,
registered or regular mail, postage prepaid, in each case addressed to a
Parties at its address stated above or to such other address as such Party may
designate by written notice given in accordance with this Section 10.1.

 17
 

10.2         Governing Law.  This
Agreement will be construed, interpreted and applied in accordance with the
laws of the State of Delaware (excluding its body of law controlling conflicts
of law).

10.3         Limitations. 
Except as set forth elsewhere in this Agreement, neither Party grants to
the other Party any right or license to any of its intellectual property.

10.4         Entire Agreement.  This
is the entire Agreement between the Parties with respect to the subject matter
hereof and supersedes all prior representations, understandings and agreements
between the Parties with respect to the subject matter hereof, including
without limitation the Option Agreement. 
No modification shall be effective unless in writing with specific
reference to this Agreement and signed by the Parties.

10.5         Waiver.  The
terms or conditions of this Agreement may be waived only by a written
instrument executed by the Party waiving compliance.  The failure of either Party at any time or
times to require performance of any provision hereof shall in no manner affect
its rights at a later time to enforce the same. 
No waiver by either Party of any condition or term shall be deemed as a
continuing waiver of such condition or term or of another condition or term.

10.6         Headings. 
Section and subsection headings are inserted for convenience of
reference only and do not form part of this Agreement.

10.7         Assignment.  Neither this Agreement nor any obligation of
a Party hereunder may be assigned by either Party without the consent of the
other which shall not be unreasonably withheld, except that each Party may
assign this Agreement and the rights, obligations and interests of such Party,
in whole or in part, to any of its Affiliates, and to any Third Party purchaser
of all of the capital stock of such Party or all or substantially all of its
assets in the line of business to which this Agreement pertains or to any
successor corporation resulting from any merger or consolidation of such Party
with or into such corporation.

10.8         Force Majeure. 
Neither Party shall be liable for failure of or delay in performing
obligations set forth in this Agreement, and neither shall be deemed in breach
of its obligations, if such failure or delay is due to natural disasters or any
causes beyond the reasonable control of such Party.  In the event of such force majeure, the Party
affected thereby shall use reasonable efforts to cure or overcome the same and
resume performance of its obligations hereunder.

10.9         Construction.  The
Parties hereto acknowledge and agree that each Party and its counsel
reviewed and negotiated the terms and provisions of this Agreement and have
contributed to its revision.

10.10       Severability.  If
any provision(s) of this Agreement are or become invalid, are ruled illegal by
any court of competent jurisdiction or are deemed unenforceable under then
current applicable law from time to time in effect during the Term hereof, it
is the intention of the Parties that the remainder of this Agreement shall not
be affected thereby provided that a Party’s rights under this Agreement are not
materially affected.  The Parties hereto
covenant and agree to renegotiate any such term, covenant or application
thereof in good faith in order to provide a reasonably acceptable alternative
to the term, covenant or condition of this Agreement

 18
 

or the application thereof that is invalid, illegal
or unenforceable, it being the intent of the Parties that the basic purposes of
this Agreement are to be effectuated.

10.11       Status. 
Nothing in this Agreement is intended or shall be deemed to constitute a
partner, agency, employer-employee, or joint venture relationship between the
Parties.

10.12       Section 365(n).  All licenses granted under this Agreement are
deemed to be, for purposes of Section 365(n) of the U.S. Bankruptcy Code,
licenses of right to “intellectual property” as defined in Section 101 of
such Code.  The Parties agree that the
licensee may fully exercise all of its rights and elections under the U.S.
Bankruptcy Code, regardless of whether either Party files for bankruptcy in the
United States or other jurisdiction.  The
Parties further agree that, in the event a licensee elects to retain its rights
as a licensee under such Code, the licensee shall be entitled to complete
access to any technology licensed to it hereunder and all embodiments of such
technology.  Such embodiments of the
technology shall be delivered to the licensee not later than (a) the
commencement of bankruptcy proceedings against the licensor, upon written
request, unless the licensor elects to perform its obligations under the
Agreement, or (b) if not delivered
under Section 10.12(a) above, upon the rejection of this Agreement by or
on behalf of the licensor, upon written request.

10.13       Further Assurances.  Each
Party agrees to execute, acknowledge and deliver such further instructions, and
to do all such other acts, as may be necessary or appropriate in order to carry
out the purposes and intent of this Agreement.

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

[Remainder of page intentionally
left blank.]

 19
 

IN
WITNESS WHEREOF, the Parties have caused this Agreement to be executed by their
duly authorized representative in two (2) originals.

	
   

  	
  IMMUNOGEN, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  SANOFI-AVENTIS
  U.S. LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
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  SANOFI-AVENTIS
  U.S. LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
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 20

APPENDIX
A

FORM OF
EXCLUSIVE LICENSE AGREEMENT

This EXCLUSIVE LICENSE AGREEMENT (this “Agreement”)
is entered into as of             
    ,         , by
and between ImmunoGen, Inc., a Massachusetts corporation having a principal
place of business at 128 Sidney Street, Cambridge, Massachusetts 02139 (“ImmunoGen”),
and sanofi-aventis U.S. LLC, a limited liability company organized and existing
under the laws of Delaware with offices at 1041 Rt.202-206, Bridgewater, NJ
08807 (“sanofi-aventis”).  Each of sanofi-aventis
and ImmunoGen is sometimes referred to individually herein as a “Party” and
collectively as the “Parties.”

WHEREAS, the Parties
executed an Option and License Agreement (as hereinafter defined) pursuant to
which ImmunoGen granted sanofi-aventis certain options to license certain
Technology Controlled by ImmunoGen; and

WHEREAS, ImmunoGen has
entered into agreements based on the so-called “Revolving-Door” structure with
a number of Third Parties whereby such Third Parties are obligated to grant
back to ImmunoGen the right to such Third Parties’ improvements to Technology
and Patent Rights, and pursuant to which ImmunoGen has the right to grant
access to such Third Party Improvements to sanofi-aventis; and

WHEREAS, sanofi-aventis
exercised an Option (as hereinafter defined) pursuant to the Option and License
Agreement, pursuant to which the Parties have agreed to enter into this
Agreement in accordance with the terms thereof.

NOW, THEREFORE, in consideration of the mutual
covenants contained herein, and for other good and valuable consideration, the
Parties hereto, intending to be legally bound, hereby agree as follows:

1.             DEFINITIONS

Whenever used in this Agreement with an initial capital letter, the
terms defined in this Section 1 shall have the meanings specified.

1.1           “Ab-MAY Product”
means any product containing a
conjugate of a Sanofi-aventis Antibody with a MAY Compound.

1.2           “Affiliate”
means, with respect to any Party, any Person that, directly or through one or
more Affiliates, controls, or is controlled by, or is under common control
with, such Party.  For purposes of this definition, “control”
means (a) ownership of more than fifty percent (50%) of the shares of stock
entitled to vote for the election of directors in the case of a corporation, or
more than fifty percent (50%) of the equity interests in the case of any other
type of legal entity, (b) status as a general partner in any partnership, or
(c) any other arrangement whereby a Person controls or has the right to control
the board of directors of a corporation or equivalent governing body of an
entity other than a corporation.

1.3           “Annual
Net Sales” means the
aggregate Net Sales during a particular Calendar Year.

 A-1
 

1.4           “Antibody” means a polyclonal or monoclonal antibody,
whether multiple or single chain, recombinant or naturally occurring, whole or
fragment, and any variants, derivatives or constructs thereof, including but
not limited to, antigen binding portions including Fab, Fab’, F(ab’)2, Fv, dAb
and CDR fragments, single chain antibodies (scFv), chimeric antibodies,
diabodies and polypeptides (including any humanized versions thereof) that
contain at least a portion of an immunoglobulin that is sufficient to confer
specific antigen binding to the polypeptide.

1.5           “Antibody-MAY Compound Conjugate”
means any compound containing a conjugate of an Antibody with a MAY Compound.

1.6           “Applicable
Laws” means Federal, state, local, national and supra-national
laws, statutes, rules and regulations, including any rules, regulations,
guidance, guidelines or requirements of Regulatory Authorities, national
securities exchanges or securities listing organizations, that may be in effect
from time to time during the Term and applicable to a particular activity
hereunder.

1.7           “Business Day” means a day on which
banking institutions in New York, New York are open for business.

1.8           “Calendar Quarter” means the period beginning on the Effective Date and ending on the
last day of the calendar quarter in which the Effective Date falls, and
thereafter each successive period of three (3) consecutive calendar months
ending on March 31, June 30, September 30 or December 31.

1.9           “Calendar Year”
means each successive period of twelve (12) months commencing on January 1 and
ending on December 31.

1.10         “Clinical Materials”
means any supplies of MAY Compound or Licensed Product manufactured by
ImmunoGen in accordance with all Applicable Laws (including GMP) and applicable
Specifications for use in human
clinical testing up to and including non-pivotal Phase IIB Studies.

1.11         “Collaboration Agreement” means that
certain Collaboration and License Agreement dated as of July 30, 2003, as
amended, by and between ImmunoGen and Aventis Pharmaceuticals, Inc., the
predecessor in interest to sanofi-aventis.

1.12         “Commercialization” or “Commercialize”
means any and all activities directed to the commercialization of a Licensed
Product, including pre-launch and launch activities, marketing, manufacturing
for commercial sale, promoting, detailing, distributing, offering to sell and
selling a Licensed Product, importing a Licensed Product for sale, conducting
additional human clinical trials and interacting with Regulatory Authorities
regarding the foregoing.  When used as a
verb, “Commercializing” means to engage in Commercialization and “Commercialized”
has a corresponding meaning.

1.13         “Commercially Reasonable Efforts”
means, with respect to sanofi-aventis, the efforts at least equal to those
customarily used by sanofi-aventis with respect to a product or potential
product of similar nature at a similar stage in its development or product life
and of

 A-2
 

similar market potential, in
view of conditions prevailing at the time, and evaluated taking into account
all relevant factors, including without limitation, the mechanism of action,
efficacy, safety, the anticipated regulatory authority approved labeling, the
competitiveness of alternative products that are in the marketplace or under
development, the patent and other proprietary position of the product, the
likelihood of Regulatory Approval, the profitability of the product and other
technical, scientific, legal, medical, marketing and competitive factors.

1.14       “Commercialization Regulatory Approval” means, with respect to any Licensed Product,
the granting of approval by a Regulatory Authority of (a) an NDA in the United
States, or (b) the equivalent of an NDA required by Applicable Laws in any
country or region in the Territory outside of the United States to sell such
Licensed Product for use in the Field in such country or region.

1.15       “Comparable Product” means a product, other than any
product being marketed and/or sold as of the Effective Date, that (a)
incorporates or is comprised of an Antibody-drug conjugate, (b) is directed
against the same Target as a Licensed Product and (c) is marketed and sold by a
Third Party for use in the Field.

1.16       “Confidential Information” means (a) with respect to ImmunoGen, all tangible embodiments of
Licensed Technology and Licensed Patent; (b) with respect to sanofi-aventis,
all information and Technology related to the sanofi-aventis Antibody and
otherwise included in any Regulatory Filings made, and Regulatory Approvals
received, by sanofi-aventis with respect to Licensed Products; and (c) with
respect to each Party, all information and Technology disclosed or provided by
or on behalf of such Party (the “disclosing Party”) to the other Party (the “receiving
Party”) or to any of the receiving Party’s employees, consultants, Affiliates
or sublicensees, provided, that, none of the foregoing shall be Confidential
Information if: (i) as of the date of disclosure, it is known to the receiving
Party or its Affiliates as demonstrated by credible contemporaneous written
documentation, other than by virtue of a prior confidential disclosure to such
receiving Party; (ii) as of the date of disclosure it is in the public domain,
or it subsequently enters the public domain through no fault of the receiving
Party; (iii) it is obtained by the receiving Party from a Third Party having a
lawful right to make such disclosure free from any obligation of
confidentiality to the disclosing Party; or (iv) it is independently developed
by or for the receiving Party without reference to or use of any Confidential
Information of the disclosing Party as demonstrated by credible contemporaneous
written documentation.  For purposes of
clarity, the terms of this Agreement shall constitute Confidential Information
of each Party.

1.17       “Control” or “Controlled” means with respect to Technology or Patent
Rights, the possession by a Party of the right to grant a license or sublicense
to such Technology or Patent Rights as provided herein without the payment of
additional consideration to, and without violating the terms of any agreement
or arrangement with, any Third Party.

1.18       “Derived” means
obtained, developed, created, synthesized, designed, derived or resulting or
generated from, based upon, or otherwise containing (whether directly or
indirectly, or in whole or in part).

 A-3
 

1.19       “Designated Senior Officer” means, with respect to a
Party, the senior officer of such Party or its Affiliate designated by such
Party to have final decision making authority over Disputed Matters.

1.20       “Development”
or “Develop” means, with respect to each Licensed Product,
all non-clinical and clinical activities required to obtain Regulatory Approval
of such Licensed Product.  For purposes
of clarity, these activities include, without limitation, test method
development and stability testing, regulatory toxicology studies, formulation,
process development, manufacturing, manufacturing scale-up, development-stage
manufacturing, quality assurance/quality control development, statistical
analysis and report writing, clinical trial design and operations, preparing
and filing Drug Approval Applications, and all regulatory affairs related to
the foregoing.  When used as a verb, “Developing”
means to engage in Development and “Developed” has a corresponding meaning.

1.21       “Drug Approval Application” means, with respect to a Licensed Product in a particular country or
region, an application for Commercialization Regulatory Approval for such
Licensed Product in such country or region, including without limitation: (a)
an NDA or sNDA; (b) a counterpart of an NDA or sNDA, including any MAA, in any
country or region in the Territory; and (c) all supplements and amendments to
any of the foregoing.

1.22       “Effective Date” means the date first set forth above in the introductory paragraph to
this Agreement.

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

1.24       “FDCA” means the United States Federal Food, Drug,
and Cosmetic Act, as amended.

1.25       “Field” means all human therapeutic, prophylactic and diagnostic uses.

1.26       “First Commercial Sale” means, with respect to a Licensed Product in
any country in the Territory, the first sale, transfer or disposition for value
or for end use or consumption of such Licensed Product in such country,
provided, that, any sale to an Affiliate or Sublicensee will not constitute a
First Commercial Sale unless the Affiliate or Sublicensee is the last entity in
the distribution chain of the Licensed Product.

1.27       “Force Majeure Event” means any occurrence beyond the reasonable control of a Party that (a)
prevents or substantially interferes with the performance by such Party of any
of its obligations hereunder and (b) occurs by reason of any act of God, flood,
fire, explosion, earthquake, strike, lockout, labor dispute, casualty or
accident, or war, revolution, civil commotion, act of terrorism, blockage or
embargo, or any injunction, law, order, proclamation, regulation, ordinance,
demand or requirement of any government or of any subdivision, authority or
representative of any such government.

1.28       “Generic Product”
means a pharmaceutical product that (a) contains the same active
ingredient as a Licensed Product; (b) is bioequivalent to such Licensed
Product; and (c) is directed against the same Target as a Licensed Product.

 A-4
 

1.29       “GLP” means the then current Good Laboratory Practice Standards promulgated
or endorsed by the FDA or in the case of foreign jurisdictions, comparable
regulatory standards promulgated or endorsed by the applicable Regulatory
Authority, including those procedures expressed or implied in the Regulatory
Filings.

1.30       “GMP” means all good manufacturing practices under Title 21 of the
United States Code of Federal Regulations, as amended from time to time.

1.31       “Hatch-Waxman Act” means the Drug Price Competition
and Patent Term Restoration Act of 1984, as amended.

1.32       “Improvement” means any enhancement, improvement or
modification to the Licensed Technology or the Licensed Patent Rights.

1.33       “IND” means:
(a) an Investigational New Drug Application (as defined in the FDCA and
regulations promulgated thereunder) or any successor application or procedure
required to initiate clinical testing of a Licensed Product in humans in the
United States; (b) a counterpart of an Investigational New Drug Application
that is required in any other country or region in the Territory before beginning
clinical testing of a Licensed Product in humans in such country or region; and
(c) all supplements and amendments to any of the foregoing.

1.34       “Initiation”
means, with respect to any clinical trial, the first date that a
human subject is dosed in such clinical trial.

1.35       “Licensed Patent Rights” means any of the patents and patent applications described in Schedule 1
attached hereto, and any divisionals, continuations, continuations-in-part (to
the extent that any continuations-in-part are entitled to the priority date of
an initial patent or patent application which is the subject of this
Agreement), reissues, reexaminations, confirmations, revalidations,
registrations, patents of addition, renewals, extensions or substitutes
thereof, or any patents issuing therefrom or any supplementary protection
certificates related thereto, including any Improvement related thereto that is
conceived or reduced to practice by ImmunoGen or its Third Party collaborators,
that are Controlled by ImmunoGen and that include one or more claims that cover Licensed Technology.

1.36       “Licensed Product” means any product directed against
the Licensed Target (a) that is comprised of, incorporates or is Derived from
an Ab-MAY Product, or (b) the manufacture, use or sale of which would, absent
the license granted to sanofi-aventis hereunder, infringe any Valid Claim
included in the Licensed Patent Rights.

1.37       “Licensed Target”
means the Target set forth on Exhibit A attached hereto and incorporated
herein by reference.

1.38       “Licensed
Technology” means any Technology Controlled by ImmunoGen as of
the Effective Dateorthat is Controlled by ImmunoGen at any
time during the Term including, without limitation, any Improvement related
thereto that is conceived or reduced to practice by ImmunoGen or its Third
Party collaborators and that is, in any case, necessary or useful for sanofi-aventis to exercise the licenses
granted to it pursuant to Section 2.1.1.

 A-5
 

1.39       “MAA” means any application filed with the relevant
Regulatory Authority seeking Regulatory Approval to market and sell a Licensed
Product outside the United States for a particular indication in the Field.

1.40          “Manufacturing Cost” means, with respect to any Preclinical Materials or
Clinical Materials manufactured by ImmunoGen, ImmunoGen’s fully-burdened costs (including the costs associated with
product testing and release activities) of producing and packaging such
Preclinical Materials or Clinical Materials, including the sum of the following
components: (a) direct costs, including (1) materials directly used in
producing and packaging such Preclinical Materials or Clinical Materials and
(2) with respect to any Preclinical Materials or Clinical Materials obtained by
ImmunoGen from a Third Party and supplied to sanofi-aventis without
modification, the amount paid by ImmunoGen to such Third Party for the same;
(b) manufacturing overhead costs attributable to the cost of goods under the
foregoing clause (a) (1), including manufacturing and quality labor and
manufacturing and quality supervisory services, operating and administrative
costs of the manufacturing and quality departments and occupancy costs which
are allocable to company departments based on space
occupied or headcount or another reasonable activity-based
method; for the purpose of clarity, any cost allocation shall be (i) in any
case, applied in accordance with GAAP, and (ii) applied consistently by
ImmunoGen in relation to all other Third Parties for which ImmunoGen
manufactures comparable materials; (c) any other reasonable and customary
out-of-pocket costs borne by ImmunoGen for the testing, transport, customs
clearance, duty, insurance and/or storage of such Preclinical Materials or
Clinical Materials; and (d) ImmunoGen’s general and administrative costs,
including purchasing, human resources, payroll, information system and
accounting, which are directly attributable or reasonably allocable to company
departments based on space occupied or headcount.

1.41       “MAY Compound” means any and all maytansinoid compounds
(including, without limitation, maytansinol, ansamitocins DM1 and DM4), whether
produced by a botanical source, natural fermentation, chemical synthesis or
otherwise, and shall include, without limitation, all variants, fragments or
derivatives of any of the foregoing, in each case controlled by ImmunoGen.

1.42       “NDA” means a
New Drug Application, as defined in the FDCA and regulations promulgated
thereunder, or any successor application or procedure required to sell a Licensed Product in the United States for a particular
indication in the Field.

1.43       “Net Sales” means the gross amount invoiced by sanofi-aventis or its
Affiliates or Sublicensees to Third
Parties in each country in the Territory for sales of each Licensed Product in such country
during the period in which royalties are payable hereunder with respect to
sales of such Licensed Product
in such country, less the following deductions from such gross amounts absorbed
or accrued with respect to such gross amounts: (a) trade, cash and/or quantity
discounts allowed and taken directly with respect to such sales, or reflected
in the invoiced amount; (b) excise, sales and other consumption taxes
(including VAT on the sale of Licensed Products and excluding taxes based on
income) and custom duties imposed upon and paid directly by sanofi-aventis with
respect to the Licensed Products, to the extent included in the invoice price;
(c) freight, insurance and other transportation charges, to the extent included
in the invoice price; (d) amounts repaid or credited by reason of returns,
rejections, defects or recalls, chargebacks, retroactive price reductions,
refunds and billing errors; and (e) compulsory

 A-6
 

payments and rebates directly
related to the sale of Licensed Products, accrued, paid or deducted, pursuant
to agreements (including, but not limited to, managed care agreements) or
governmental regulations.

Use of Licensed Products for
promotional or sampling purposes and for use in clinical trials contemplated
under this Agreement shall not be considered in determining Net Sales.  In
the case of any sale of a Licensed Products between or among sanofi-aventis and
its Affiliates or Sublicensees for resale, Net Sales shall be calculated as
above only on the first arm’s length sale thereafter to a Third Party.

In the event a Licensed Product
is sold as a component of a combination or bundled product that consists of a
Licensed Product together with another therapeutically active product for the
same indication (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 (as defined in the
standard Net Sales definition above), during the applicable royalty reporting
period, by the fraction, A/A+B, where A is the average per unit sale price of
the Licensed Product when sold separately in finished form in the country in
which the Combination Product is sold during the same royalty reporting period
in similar volumes and of the same class, purity and potency and B is the
average per unit sale price of the other product(s) included in the Combination
Product when sold separately in finished form in the country during the same
royalty reporting period in similar volumes and of the same class, purity and
potency in which the Combination Product is sold, in each case during the
applicable royalty reporting period or, if sales of the Licensed 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 Licensed Product occurred. 
In the event that such average sale price cannot be determined for the Licensed
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.

1.44       “Option” shall have the meaning set
forth in the Option and License Agreement.

1.45       “Option and License Agreement” means
that certain Option and License Agreement dated as of December 21, 2006, by and
between ImmunoGen and sanofi-aventis.

1.46       “Patent Rights” means the rights and interests in and
to issued patents and pending patent applications (including inventor’s
certificates and utility models) in any country or jurisdiction within the
Territory, including all provisionals, substitutions, continuations,
continuations-in-part, divisionals, supplementary protection certificates,
renewals, all letters patent granted thereon, and all reissues, reexaminations,
extensions, confirmations, revalidations, registrations, patents of addition
thereof, PCTs and foreign counterparts.

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

 A-7
 

1.48       “Phase I Study” means a clinical study in subjects to
evaluate the pharmacokinetic and pharmacodynamic properties, maximum tolerated
dose, dosing interval, and absorption, distribution, metabolism and excretion
(ADME) of a Licensed Product.

1.49       “Phase IIB Study”means
a controlled dose ranging clinical trial to evaluate further the efficacy and
safety of a Licensed Product in the targeted patient population and to define
the optimal dosing regimen.

1.50       “Phase III Study” means, as to a particular Licensed
Product for a particular indication, a controlled and lawful study in humans of
the safety and efficacy of such product for such indication, which is
prospectively designed to demonstrate statistically whether such Licensed
Product is safe and effective for use in such indication in a manner sufficient
to file a Drug Approval Application to obtain Regulatory Approval to market and
sell that Licensed Product for the indication under investigation in such
study.

1.51       “Preclinical Materials” means any supplies of MAY
Compound or Licensed Product manufactured by ImmunoGen in accordance with
Applicable Laws and all applicable Specifications for use in preclinical
testing.

1.52       “Regulatory Approval” means, with respect to any country or region in the Territory, any
approval, product and establishment license, registration or authorization of
any Regulatory Authority required for the manufacture, use, storage,
importation, exportation, transport or sale of a Licensed Product for use in
the Field in such country or region.

1.53       “Regulatory Authority” means the FDA or any counterpart of the FDA outside the United States,
or other national, supra-national, regional, state or local regulatory agency,
department, bureau, commission, council or other governmental entity with
authority over the distribution, importation, exportation, manufacture,
production, use, storage, transport, clinical testing or sale of a Licensed
Product.

1.54       “Regulatory Filings” means, collectively: (a) all INDs, NDAs, establishment license
applications, drug master files, applications for designation as an “Orphan
Product” under the Orphan Drug Act, for “Fast Track” status under Section 506
of the FDCA (21 U.S.C. § 356) or for a Special Protocol Assessment under
Section 505(b)(4)(B) and (C) of the FDCA (21 U.S.C. § 355(b)(4)(B)) or all
other similar filings (including MAAs and, counterparts of any of the foregoing
in any country or region in the Territory) as may be required by any Regulatory
Authority for the Development or Commercialization of a Licensed Product in the
Territory; (b) all supplements and amendments to any of the foregoing; and (c)
all data and other information contained in, and correspondence relating to, any
of the foregoing.

1.55       “Reportable Event” means any serious adverse event or
medical occurrence in a patient or subject who is administered a Licensed
Product, whether or not considered related to the Licensed Product, including,
without limitation, any undesirable sign (including abnormal laboratory
findings of clinical concern), symptom or disease temporally associated with
the use of such Licensed Product.

1.56       “Royalty Term” means, with respect to each Licensed Product in each country in
the Territory, the period beginning on the date of First Commercial Sale of
such Licensed

 A-8
 

Product in such country and
continuing until the later of (a) the expiration of the last to expire Valid
Claim of the Licensed Patent Rights in such country that covers such Licensed
Product or its use, method of delivery or manufacture or (b) [***] ([***])
years from the date of the First Commercial Sale of such Licensed Product in
such country.  For purposes of clarity,
to the extent a Licensed Product is covered in a given country solely
by a Valid Claim that relates to an ImmunoGen or Third Party Improvement, the
Royalty Term applicable to such Licensed Product in such country will only be
extended until the expiration of such Valid Claim if  the ImmunoGen
or Third Party Improvement covers a use, method of delivery or manufacture of
such Licensed Product that is being exploited in such country.

1.57       “Sanofi-aventis Antibody” means any
Antibody Controlled by sanofi-aventis.

1.58       “Sanofi-aventis Improvement” means any Improvement that is
conceived or first reduced to practice by sanofi-aventis in connection with the
Development or Commercialization of any Licensed Product.

1.59       “sNDA” means
a Supplemental New Drug Application, as defined in the FDCA and applicable
regulations promulgated thereunder.

1.60       “Specifications” means any specifications prepared by
sanofi-aventis and agreed to by the Parties in writing relating to the
manufacture and supply of any Preclinical Materials or Clinical Materials
hereunder.

1.61       “Sublicensee” means
any Third Party (other than an Affiliate) to which sanofi-aventis grants a
license or sublicense pursuant to Section 2.1.2.

1.62       “Technology” means, collectively, all inventions,
discoveries, improvements, trade secrets and proprietary methods, whether or
not patentable, including without limitation, macromolecular sequences, data,
formulations, processes, techniques, know-how and results (including any
negative results).

1.63       “Territory” meansall countries
of the world.

1.64       “Third Party” means
any Person other than sanofi-aventis and ImmunoGen and their respective
Affiliates.

1.65       “Valid Claim” means
any claim of a pending patent application or an issued unexpired patent within
the Licensed Patent Rights that (a) has not been finally cancelled, withdrawn,
abandoned or rejected by any administrative agency or other body of competent
jurisdiction, (b) has not been permanently revoked, held invalid, or declared
unpatentable or unenforceable in a decision of a court or other body of
competent jurisdiction that is unappealable or unappealed within the time
allowed for appeal, (c) has not been rendered unenforceable through disclaimer
or otherwise, and (d) is not lost through an interference proceeding.

Additional Definitions. 
In addition, each of the following definitions shall have the
respective meanings set forth in the section of this Agreement indicated below:

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  Definition

  	
   

  	
  Section

  
	
   

  	
   

  	
   

  
	
  Agreement

  	
   

  	
  Recitals

  
	
  Claims

  	
   

  	
  9.1

  
	
  Covered Results

  	
   

  	
  5.3

  
	
  Disputed Matters

  	
   

  	
  10.3.1

  
	
  ImmunoGen

  	
   

  	
  Recitals

  
	
  ImmunoGen
  Indemnitees

  	
   

  	
  9.2

  
	
  Indemnified
  Party

  	
   

  	
  9.3

  
	
  Indemnifying
  Party

  	
   

  	
  9.3

  
	
  Infringement

  	
   

  	
  6.3.1(a)

  
	
  Infringement
  Notice

  	
   

  	
  6.3.1(a)

  
	
  Losses

  	
   

  	
  9.1

  
	
  sanofi-aventis

  	
   

  	
  Recitals

  
	
  sanofi-aventis
  Indemnitees

  	
   

  	
  9.1

  
	
  Party/Parties

  	
   

  	
  Recitals

  
	
  Supply Agreement

  	
   

  	
  2.7.2

  
	
  Term

  	
   

  	
  7.1

  
	
  Third Party
  Payments

  	
   

  	
  4.3.3

  
	
  Threshold Market
  Share

  	
   

  	
  4.3.4

  
	
  Withholding
  Taxes

  	
   

  	
  4.3.8

  

 

2.             LICENSE GRANTS; TECHNOLOGY TRANSFER

2.1           License Grants.

2.1.1        License to sanofi-aventis.  Subject to the other terms of this
Agreement, ImmunoGen hereby grants to sanofi-aventis and its Affiliates an
exclusive (even as to ImmunoGen) license within the Territory, including the
right to grant sublicenses as described in Section 2.1.2 below, under the
Licensed Patent Rights and Licensed Technology to research, Develop, have
Developed, Commercialize and have Commercialized Licensed Products, for any and
all uses within the Field.

2.1.2        Right to
Sublicense. 
Sanofi-aventis and its Affiliates shall have the right to grant
sublicenses under the license granted to it under Section 2.1.1with respect to any Licensed Product to any Third Party, provided,
that: (a) it shall be a condition of any such sublicense that such Sublicensee
agrees to be bound by all terms of this Agreement applicable to the Development
and Commercialization of Licensed Products in the Field in the Territory
(including, without limitation, Sections 3.2, 3.3 and 3.4); (b) sanofi-aventis
shall provide written notice to ImmunoGen of any such proposed sublicense at
least [***] ([***]) days prior to such execution and provide redacted copies to
ImmunoGen of each such sublicense within [***] ([***]) days of such execution;
(c) sanofi-aventis shall be deemed to have guaranteed that each such
Sublicensee will fulfill all of sanofi-aventis’ obligations under this
Agreement applicable to the subject matter of such sublicense; and (d)
sanofi-aventis shall not be relieved of its obligations pursuant to this
Agreement as a result of any such sublicense.

2.2           Retained Rights of ImmunoGen; Restricted Activities.  Subject to the other terms of this Agreement,
ImmunoGen retains the right to use the Licensed Technology and

 A-10
 

practice the
Licensed Patent Rights (a) to perform its obligations under this Agreement, (b)
to develop, have developed, make, have made, use, have used, sell, have sold,
offer for sale, import, have imported, export and have exported any product
that is not a Licensed Product, and (c) for any and all uses outside of the
Field.  Notwithstanding the foregoing,
during the Term, ImmunoGen shall not, and shall cause each of its Affiliates to
not, develop or commercialize, or grant any license or right to any Third Party
to utilize, any Technology or Patent Rights Controlled by ImmunoGen or any of
its Affiliates at any time during the Term for the development or
commercialization of an Antibody-MAY
Compound conjugate that is directed against the Licensed Target.

2.3           License to ImmunoGen.  Sanofi-aventis hereby grants ImmunoGen a
non-exclusive, worldwide, fully-paid, irrevocable, royalty-free license of
perpetual duration under sanofi-aventis’ interest in any Sanofi-aventis
Improvements (a) to manufacture Clinical Materials and/or Preclinical
Materials pursuant to the terms of this Agreement and/or each applicable Supply
Agreement; (b) to develop, make, have made, use, sell, have sold, offer for
sale, import, have imported, export and have exported any product that is not a
Licensed Product; and (c) to otherwise exploit such Improvements for all uses
within the Field that are not otherwise restricted by an agreement by and
between sanofi-aventis and ImmunoGen, provided, that, (i) any grant by
ImmunoGen of a sublicense is only made in connection with the grant of a
license to Technology Controlled by ImmunoGen and used in the conjugation of
MAY Compounds to binding proteins; and (ii) the right of ImmunoGen to grant any
such sublicense is subject to sanofi-aventis obtaining a grant back of a
non-exclusive, fully paid, irrevocable, royalty-free license, including the
right to grant sublicenses, under that sublicensee’s improvements, enhancements
or modifications to Technology Controlled by ImmunoGen, to Develop and
Commercialize Licensed Products in the Field and in the Territory in accordance
with Section 2.1.1 of this Agreement.

2.4           Notice of Improvements.  Sanofi-aventis shall promptly notify ImmunoGen
of the conception or reduction to practice of any such Sanofi-aventis
Improvement. ImmunoGen shall promptly notify sanofi-aventis of (a) the
conception or reduction to practice by ImmunoGen of any Improvement or (b) its
receipt of written notice from any of its Third Party collaborators of its
conception or reduction to practice of any Improvement.

2.5           No
Other Rights.  Sanofi-aventis shall have no rights to use or
otherwise exploit any Technology Controlled by ImmunoGen except as expressly
set forth herein.

2.6           Use of Licensed Technology.  In connection with any Licensed Technology
transferred to sanofi-aventis pursuant to this Agreement, sanofi-aventis hereby
agrees that (a) it shall not use such Licensed Technology for any purpose other than exercising its
rights or performing its obligations
hereunder; (b) it shall use such Licensed Technology only in compliance with
all Applicable Laws; (c) it shall not transfer any such Licensed Technology to
any Third Party without the prior written consent of ImmunoGen, except as
expressly permitted hereby; and (d) except for the rights expressly set forth
herein, sanofi-aventis shall not acquire any other rights, title or interest in
or to such Licensed Technology as a result of such transfer by ImmunoGen.

 A-11
 

2.7           Compliance.  Sanofi-aventis shall perform its obligations
to Develop Licensed Products in good scientific manner and in compliance in all
material respects with all Applicable Laws, provided, that, with respect to
each activity so performed that will or would reasonably be expected to be
submitted to a Regulatory Authority in support of a Regulatory Filing or Drug
Approval Application, sanofi-aventis shall comply in all material respects with
the regulations and guidance of the FDA that constitute GLP or GMP (or, if and
as appropriate under the circumstances, or other comparable regulation and
guidance of any applicable Regulatory Authority in any country or region in the
Territory).

2.8           Manufacture of Materials for Development.  As between the Parties, sanofi-aventis shall
have the sole right, at its sole cost and discretion, to manufacture all
materials (including without limitation any Licensed Products) to enable it to Develop or Commercialize
Licensed Products (including as required for any pre-clinical, clinical and
commercial use of Licensed Products, including process development and
scale-up). In the event that,
during the Term, sanofi-aventis desires ImmunoGen to supply to sanofi-aventis
with quantities of Preclinical Materials or Clinical Materials to enable it to
Develop or Commercialize Licensed Products, sanofi-aventis shall provide
ImmunoGen with written notice of same and the following provision shall apply,
as applicable:

2.8.1        Preclinical Materials.  To the extent the sanofi-aventis notice is
with respect to Preclinical Materials, (a) ImmunoGen shall deliver all ordered
amounts of Preclinical Materials in accordance with forecasting parameters,
advance ordering timeframes and delivery timeframes to be agreed upon by the
Parties; (b) in connection with any ordering of Preclinical Materials by
sanofi-aventis, ImmunoGen shall provide sanofi-aventis with ImmunoGen’s good
faith estimate of the Manufacturing Cost for manufacture and supply of such
Preclinical Materials; (c) ImmunoGen’s price to supply Preclinical Materials to
sanofi-aventis manufactured at ImmunoGen’s Cambridge, Massachusetts facility
shall equal [***] of ImmunoGen’s Manufacturing Cost for such Preclinical
Materials; (d) ImmunoGen’s price to supply Preclinical Materials manufactured
at ImmunoGen’s Norwood, Massachusetts facility shall equal [***] of ImmunoGen’s
Manufacturing Cost for such Preclinical Materials; and (e) subject to (a)
above, sanofi-aventis may [***]%, at its sole discretion, the [***] [***] [***]
ImmunoGen will supply the requested Preclinical Materials, provided, that,
nothing in this Section 2.7.1 shall preclude sanofi-aventis from making its own
arrangements for manufacture and supply of Preclinical Materials on its own or
with Third Parties, subject to the licenses granted hereunder.  Subject to the foregoing, as between the
Parties, sanofi-aventis shall have the sole right, at its sole cost and
discretion, to manufacture all Licensed Products required for the conduct of
Development activities under this Agreement.

2.8.2        Clinical Materials.  To the extent the sanofi-aventis notice
is with respect to Clinical Materials, the Parties shall negotiate in good
faith and execute a supply agreement providing for such supply (each, a “Supply
Agreement”).  The Supply Agreement shall
provide, inter alia, that (a) ImmunoGen shall
deliver all ordered amounts of Clinical Materials in accordance with
forecasting parameters, advance ordering timeframes and delivery timeframes to
be agreed upon by the Parties in such Supply Agreement; (b) in connection with
any ordering of Clinical Materials by sanofi-aventis, ImmunoGen shall provide
sanofi-aventis with ImmunoGen’s good faith estimate of the Manufacturing Cost
for manufacture and supply of such Clinical Materials; (c) ImmunoGen’s price to
supply Clinical Materials to sanofi-aventis shall

 A-12
 

equal [***] of ImmunoGen’s
Manufacturing Cost for such Clinical Materials; and (d) sanofi-aventis shall
use such Clinical Materials solely for human clinical testing up to and
including the conduct of non-pivotal Phase IIB Studies, provided, that, nothing
herein shall preclude sanofi-aventis from making its own arrangements for
manufacture and supply of Clinical Materials on its own or with Third Parties,
subject to the licenses granted hereunder. 
  The Supply Agreement may take the form of a
master supply agreement, together with a work order specifically related to the
supply of Clinical Materials.  Further,
the Parties shall execute such additional agreements related to GMP, quality
and technical terms as are necessary for regulatory purposes.

3.             DEVELOPMENT AND COMMERCIALIZATION OF LICENSED
PRODUCTS

3.1           Responsibility for
Development and Commercialization.  On and after the Effective Date, sanofi-aventis
shall have the sole right, at its sole expense, for all aspects of the
Development and Commercialization of Licensed
Products in the Field in the Territory, including, without limitation, the
conduct of: (a) all IND-enabling non-clinical studies; (b) all activities
related to human clinical trials; (c) all activities relating to the
manufacture and supply of Licensed
Products (including all required process development and scale up work with
respect thereto); and (d) all pre-marketing, marketing, promotion, sales,
distribution, import and export activities (including securing reimbursement,
sales and marketing and conducting any post-marketing trials or databases and
post-marketing safety surveillance). 
Without limiting the generality of the foregoing, sanofi-aventis shall
have the sole right, at its sole expense, for (i) making all Regulatory Filings
for Licensed Products and filing
all Drug Approval Applications and otherwise seeking all Regulatory Approvals
for Licensed Products, as well
as all correspondence and communications with Regulatory Authorities regarding
such matters, and (ii) reporting of all adverse events to Regulatory
Authorities if and to the extent required by Applicable Laws.  The Parties hereby agree that subject to
Section 2.3, [***] shall [***]all data, results and all other information
arising from any such activities under this Agreement specifically relating to
Licensed Products, including, without limitation, all [***] [***] and
[***] [***] relating to Licensed Products, and all of the foregoing
information, documentation and materials shall be considered Confidential
Information of [***].

3.2           Diligence.  Sanofi-aventis shall use Commercially
Reasonable Efforts during the Term to Develop and Commercialize Licensed
Products in the Field in the Territory.

3.3           Updates and Reports.  Sanofi-aventis shall provide ImmunoGen with
brief written reports no less frequently than annually during the Term
(commencing with the first anniversary of the Effective Date) summarizing
sanoti-aventis’ efforts to Develop and Commercialize Licensed Products
hereunder.  In addition, sanofi-aventis
shall provide ImmunoGen with prompt written notice of the occurrence of the
First Commercial Sale of any Licensed Product in any country.

3.4           Reportable Events.  Sanofi-aventis shall promptly provide
ImmunoGen with notice of any Reportable Event within time frames consistent
with any reporting obligations under Applicable Laws.

3.5           Manufacture of Licensed Products for Commercial Sale.  Unless otherwise agreed to by the Parties in
the Supply Agreement, sanofi-aventis shall have the sole obligation

 A-13
 

and responsibility, at its sole cost and
expense, for the manufacture of all Licensed Products (including without
limitation the active pharmaceutical ingredients in any Licensed Product) for
commercial sale.

3.6           Product Recalls.  In the event that any Regulatory Authority
issues or requests a recall or takes similar action in connection with a Licensed Product that sanofi-aventis
reasonably believes is attributable to or otherwise relates to the Licensed
Technology or Licensed Patent Rights, or in the event a Party reasonably
believes that an event, incident or circumstance has occurred that may result
in the need for such a recall, such Party shall promptly advise the other Party
thereof by telephone or facsimile. 
Following such notification, sanofi-aventis shall decide and have
control of whether to conduct a recall or market withdrawal (except in the
event of a recall or market withdrawal mandated by a Regulatory Authority, in
which case it shall be required) or to take other corrective action in any
country and the manner in which any such recall, market withdrawal or
corrective action shall be conducted, provided that sanofi-aventis shall keep
ImmunoGen regularly informed regarding any such recall, market withdrawal or
corrective action.  Sanofi-aventis shall
bear all expenses of any such recall, market withdrawal or corrective action
(including, without limitation, expenses for notification, destruction and
return of the affected Licensed
Product and any refund to customers of amounts paid for such Licensed Product).

4.             PAYMENTS

4.1           License Fee.  Sanofi-aventis shall pay ImmunoGen a license
fee in the amount of [***] [***] dollars (US $[***]), which amount shall be
non-refundable and non-creditable, payable in immediately available funds within [***] ([***]) Business Days of
the Effective Date.

4.2           Milestone Payments.

4.2.1        Milestones.
 Sanofi-aventis shall make the following
nonrefundable, non-creditable milestone payments to ImmunoGen within [***] ([***])
days after the achievement by sanofi-aventis and/or sanofi-aventis’ Affiliates
and Sublicensees of each event for each Licensed Product as set forth below:  

	
  Milestone Event

  	
   

  	
  Milestone Payment

  	
   

  
	
  [***] of [***]
  [***] [***] [***] for a [***] [***]

  	
   

  	
  $

  	
  [***

  	
  ]

  
	
   

  	
   

  	
   

  	
   

  
	
  [***] of [***]
  [***] [***] [***] for a [***] [***]

  	
   

  	
  $

  	
  [***

  	
  ]

  
	
   

  	
   

  	
   

  	
   

  
	
  [***] of [***]
  [***] [***] [***] for a [***] [***]

  	
   

  	
  $

  	
  [***

  	
  ]

  
	
   

  	
   

  	
   

  	
   

  
	
  [***] of [***]
  in the [***] [***] for a [***] [***]

  	
   

  	
  $

  	
  [***

  	
  ]

  
	
   

  	
   

  	
   

  	
   

  
	
  [***] of [***]
  [***] [***] in the [***] [***] for a [***] [***]

  	
   

  	
  $

  	
  [***

  	
  ]

  
	
   

  	
   

  	
   

  	
   

  
	
  [***] of [***]
  [***] [***] in [***] [***] for a [***] [***]

  	
   

  	
  $

  	
  [***

  	
  ]

  
	
   

  	
   

  	
   

  	
   

  
	
  [***] of [***] [***]
  [***] in [***] for a [***] [***]

  	
   

  	
  $

  	
  [***

  	
  ]

  

 

 A-14

For purposes
of clarity, (a) any milestone payment shall be made only once, with respect to
the first achievement of the relevant milestone for the first Licensed Product,
regardless of how many times such milestones are achieved by Licensed Products
and regardless of how many times a particular Licensed Product achieves such
milestones and (b) if a milestone payment is made for any milestone event with
respect to any Licensed Product and any milestone payments for any
preceding milestone events have not been made with respect to
such Licensed Product, then such earlier milestone payments shall be made
concurrently with such later milestone payment (for example, if the
milestone payment with respect to an [***] [***] in the [***] is due and
payable, but the milestone payment with respect to the [***] of
a [***] [***] [***] was not previously paid (because a [***] [***] [***] was
not conducted with respect to such Licensed Product), then milestone payments
for both milestone events shall both be made on the basis of the
achievement of the milestone event with respect to the [***]
of the [***] for that Licensed Product).  Notwithstandingthe
foregoing, after the last to expire of the Licensed Patent Rights covering a
Licensed Product, any milestone event achieved by such Licensed Product after
such expiration shall result in a milestone payment to ImmunoGen in an amount
equal to [***] percent ([***]%) of the corresponding milestone payment amounts
listed in Section 4.2.1 above.

4.2.2        Milestone Notices.  Sanofi-aventis shall provide ImmunoGen with
prompt written notice upon each occurrence of a milestone event set forth in
Section 4.2.1.  In the event that,
notwithstanding the fact that sanofi-aventis has not given such a notice,
ImmunoGen believes any such milestone event has occurred, it shall so notify
sanofi-aventis in writing and shall provide to sanofi-aventis data,
documentation or other information that supports its belief.

4.3           Payment of Royalties; Royalty Rates; Accounting and Records.

4.3.1        Payment of Royalties.

(a)           Patent Coverage.  For each Licensed Product covered by a Valid Claim of the Licensed Patent
Rights in any country in the Territory in which it is sold, sanofi-aventis
shall pay ImmunoGen a royalty based on Annual Net Sales of such Licensed Product in each Calendar Year
(or partial Calendar Year) commencing with the First Commercial Sale of such Licensed Product in such country and
ending upon the expiration of the Royalty Term for such Licensed Product, at the following rates:

	
  Annual Net Sales

  	
   

  	
  Royalty Rate (%)

  	
   

  
	
  Up to and
  including $[***] [***]

  	
   

  	
  [***

  	
  ]%

  
	
   

  	
   

  	
   

  	
   

  
	
  Above $[***]
  [***] and up to and including $[***] [***]

  	
   

  	
  [***

  	
  ]%

  
	
   

  	
   

  	
   

  	
   

  
	
  Above $[***] [***]

  	
   

  	
  [***

  	
  ]%

  

 

 A-15
 

(b)           No Patent Coverage.  For each Licensed Product that is not covered
by a Valid Claim of the Licensed Patent Rights in any country in the Territory
in which it is sold or that is [***] [***] by a [***][***] [***] under a [***] [***]
[***] to [***] under Section [***], sanofi-aventis shall pay ImmunoGen a
royalty based on Annual Net Sales of such Licensed Product in each Calendar
Year (or partial Calendar Year) commencing with the First Commercial Sale of
such Licensed Product in such country (including without
limitation the First Commercial Sale following the termination or expiration of
any Valid Claim in such country covering such Licensed Product)and ending on the expiration of the Royalty Term for such
Licensed Product, at the following rates:

	
  Annual Net Sales

  	
   

  	
  Royalty Rate (%)

  	
   

  
	
  Up to and
  including $[***] [***]

  	
   

  	
  [***

  	
  ]%

  
	
  Above $[***]
  [***] and up to and including $[***] [***]

  	
   

  	
  [***

  	
  ]%

  
	
  Above $[***] [***]

  	
   

  	
  [***

  	
  ]%

  

 

The Parties hereby acknowledge and agree that royalties may be payable
hereunder for a Licensed Product for which no issued patents within Licensed
Patent Rights exist and under such circumstances, such royalties shall be in
consideration of the commercial advantage, know-how and background information
gained from the Licensed Technology.

(c)           Applicability of
Royalty Rates. For purposes of clarity, (i) if a Licensed Product is
covered by a Valid Claim in a country within the Territory such that royalties
are paid by sanofi-aventis pursuant to Section 4.3.1(a) and, prior to the [***]
([***]) anniversary of the date of First Commercial Sale of such Licensed
Product in such country, the Licensed Product is no longer covered by a Valid
Claim in such country, sanofi-aventis shall pay ImmunoGen a royalty at the
rates set forth in Section 4.3.1(b) for that portion of the Royalty Term during
which no such Valid Claim exists in such country; and (ii) if a Licensed
Product is not covered by a Valid Claim in a country within the Territory such
that royalties are paid by sanofi-aventis pursuant to Section 4.3.1(b) and,
prior to the [***] ([***]) anniversary of the date of First Commercial Sale of
such Licensed Product, the Licensed Product becomes covered by a Valid Claim in
such country, sanofi-aventis shall pay ImmunoGen a royalty at the rates set
forth in Section 4.3.1(a) for that portion of the Royalty Term during which
such Valid Claim exists in such country.

4.3.2        Royalty Term.  Sanofi-aventis shall pay the royalties set
forth in Section 4.3.1 with respect to each Licensed Product on a
country-by-country and product-by-product basis until expiration of the Royalty
Term with respect thereto.  Upon the
expiration of the Royalty Term for each Licensed Product in each country in the
Territory, sanofi-aventis shall have a worldwide, perpetual, fully paid-up
license, with the right to sublicense, under any and all Licensed Patents
covering such Licensed Product to develop, make, have made, use, import, offer
for sale, distribute and sell such Licensed Product in the Field and in such
country.

4.3.3        Payments to
Third Parties. 
If,
during any Calendar Quarter, sanofi-aventis actually makes any royalty payments
to one or more Third Parties in consideration for a license, in the absence of
which sanofi-aventis could not practice the Licensed Patent Rights necessary to
make, use or sell the MAY Compound portion of any Licensed Product without

 A-16
 

infringing an issued patent or patents owned by such Third Party in any
country (collectively, “Third Party Payments”), then sanofi-aventis shall have
the right to reduce the royalties otherwise due to ImmunoGen pursuant to
Section 4.3.1 hereof with respect to sales in such country of such Licensed
Product in such Calendar Quarter or any subsequent Calendar Quarter by an
amount equal to up to [***] percent ([***]%) of the amount of such Third Party
Payments.  Notwithstanding the foregoing,
such reductions shall in no event reduce the royalty rates otherwise due to
ImmunoGen pursuant to Section 4.3.1 hereof with respect to the sales of such
Licensed Product in such country to a royalty rate that is less than the respective
rates set forth in Section 4.3.1(b) above.

4.3.4        Competitive Products.  Notwithstanding anything to the contrary
contained in this Agreement, if during any Calendar Quarter, sanofi-aventis
sells Licensed Products in a country in which a Third Party is selling (a) a
Generic Product or (b) a Comparable Product and such Third Party has sales of
such Comparable Product in such country that is greater than [***] percent ([***]%)
of sanofi-aventis’ revenue-based or unit-based market share of such Licensed Product
in such country (the “Threshold Market Share”), then, subject to the final
sentence of this Section 4.3.4, on and after the date of first commercial sale
of such Generic Product or date of achievement of the Threshold Market Share,
as the case may be, all applicable royalties in effect with respect to such
Licensed Product in such country as specified in Section 4.5.1 shall be reduced
to [***] percent ([***]%). 
Notwithstanding the foregoing, sanofi-aventis’ obligation to pay the
full royalty rate shall be reinstated on the first day of the Calendar Quarter
immediately following the Calendar Quarter in which (a) sales of such Generic
Product cease or (b) sales of such Comparable Product account for less than the
Threshold Market Share in such country.

4.3.5        Payment Dates and Reports.  Royalty payments shall be made by
sanofi-aventis within [***] ([***]) days after the end of each Calendar Quarter
commencing with the Calendar Quarter in which the First Commercial Sale of a Licensed Product occurs.  All payments shall be made by wire transfer
in accordance with instructions given in writing from time to time by
ImmunoGen.  Sanofi-aventis shall also
provide, at the same time each such payment is made, a report showing: (a) the Net Sales of each Licensed Product by country in the
Territory;(b) the basis for any
deductions from gross amounts billed or invoiced to determine Net Sales; (c)
the applicable royalty rates for such Licensed
Product; (d) the exchange rates used in calculating any of the foregoing; and
(e) a calculation of the amount of royalty due to ImmunoGen.

4.3.6        Records; Audit Rights.  For a period of [***] ([***]) years,
sanofi-aventis shall keep and maintain, and shall require its respective
Affiliates and Sublicensees to keep and maintain, such accurate and complete
books and records in connection with the sale of Licensed Products hereunder,
as are necessary to allow the accurate calculation consistent with generally
accepted accounting principles of the royalties due to ImmunoGen, including any
records required to calculate any royalty adjustments hereunder.   Once per Calendar Year, ImmunoGen shall have
the right to engage an independent certified public accounting firm of
nationally recognized standing and reasonably acceptable to sanofi-aventis,
which shall have the right to examine in confidence the relevant books and
records of sanofi-aventis and its respective Affiliates and Sublicensees as may
be reasonably necessary to determine and/or verify the amount of royalty
payments due hereunder.  Such examination shall be conducted, and
sanofi-aventis

 A-17
 

shall make its
records available, during normal business hours, after at least [***] ([***])
days prior written notice to sanofi-aventis, as applicable, and shall take
place at the facility(ies) where such records are maintained.  Each such
examination shall be limited to pertinent books and records for any year ending
not more than [***] ([***]) months prior to the date of request, provided,
that, ImmunoGen shall not be permitted to audit the same period of time more
than once.  Before permitting such independent accounting firm to have
access to such books and records, sanofi-aventis may require such independent
accounting firm and its personnel involved in such audit, to sign a confidentiality
agreement (in form and substance reasonably acceptable to each of the Parties)
as to any Confidential Information which is to be provided to such accounting
firm or to which such accounting firm will have access, while conducting the
audit under this paragraph.  The ImmunoGen independent accounting firm
will prepare and provide to each Party a written report stating whether the
royalty reports submitted and royalties paid are correct or incorrect and the
specific details concerning any discrepancies.  Such accounting firm may
not reveal to ImmunoGen any information learned in the course of such audit
other than the amount of any such discrepancies.  ImmunoGen agrees to hold
in strict confidence all information disclosed to it, except to the extent necessary
for ImmunoGen to enforce its rights under this Agreement or if disclosure is
required by law.  In the event there was an underpayment by sanofi-aventis
hereunder, sanofi-aventis shall promptly (but in no event later than [***] ([***])
days after such Party’s receipt of the independent auditor’s report so
correctly concluding) make payment to ImmunoGen of any shortfall.  In the
event that there was an overpayment by sanofi-aventis hereunder, ImmunoGen
shall promptly (but in no event later than [***] ([***]) days after ImmunoGen’s
receipt of the independent auditor’s report so correctly concluding) refund to
sanofi-aventis the excess amount.  ImmunoGen shall bear the full cost of
such audit unless such audit discloses an underreporting by sanofi-aventis of
more than [***] percent ([***]%) of the aggregate amount of royalties in any
twelve (12) month period, in which case, sanofi-aventis shall reimburse
ImmunoGen for all costs incurred by ImmunoGen in connection with such
examination and audit.

4.3.7        Overdue Payments.  All royalty payments not made within the time
period set forth in Section 4.3.1, and all milestone payments not made within
the time period specified in Section 4.2.1, shall bear interest at a rate of
one percent (1%) per month from the due date until paid in full or, if less,
the maximum interest rate permitted by Applicable Laws.  Any such overdue royalty or milestone payment
shall, when made, be accompanied by, and credited first to, all interest so
accrued.

4.3.8        Withholding Taxes.  Any payments made by sanofi-aventis to
ImmunoGen under this Agreement shall be free and clear of any taxes, duties,
levies, fees or charges, and such amounts shall be reduced by the amount
required to be paid or withheld pursuant to any applicable law, including, but
not limited to, United States federal, state or local tax law (“Withholding
Taxes”).  Any such Withholding Taxes required by law to be paid or
withheld shall be an expense of, and borne solely by, ImmunoGen.  Sanofi-aventis, as applicable, shall submit
to ImmunoGen reasonable proof of payment of the Withholding Taxes, together
with an accounting of the calculations of such taxes, within [***] ([***]) days
after such Withholding Taxes are remitted to the proper authority.  The
Parties will cooperate reasonably in completing and filing documents required
under the provisions of any applicable tax laws or under any other applicable
law in connection with the making of any required tax payment or withholding
payment, or in connection with any claim to a refund of or credit for any such
payment.

 A-18
 

4.3.9        Foreign Currency Exchange.  With
respect to Net Sales invoiced or expenses incurred in U.S. dollars, the Net
Sales or expense amounts and the amounts due to ImmunoGen hereunder shall be
expressed in U.S. dollars.  With respect to Net Sales invoiced or expenses
incurred in a currency other than U.S. dollars, the Net Sales or expense shall
be expressed in the domestic currency of the entity making the sale or
incurring the expense, together with the U.S. dollar equivalent, calculated
using the arithmetic average of the spot rates on the last Business Day of each
month of the Calendar Quarter in which the Net Sales were made or the expense
was incurred.  The “closing mid-point
rates” found in the “Exchange Rates” table published by The Wall Street Journal, or any other
publication as agreed to by the Parties, shall be used as the source of spot
rates to calculate the average as defined in the preceding sentence.  All
payments shall be made by wire transfer in U.S. dollars to the credit of such
bank account as shall be designated at least [***] ([***]) business days in
advance by ImmunoGen in writing to sanofi-aventis.

5.             TREATMENT OF CONFIDENTIAL INFORMATION;

PUBLICITY.

5.1           Confidentiality

5.1.1        Confidentiality Obligations.  ImmunoGen and sanofi-aventis each recognizes
that the other Party’s Confidential Information constitutes highly valuable
assets of such other Party.  ImmunoGen
and sanofi-aventis each agrees that, subject to Section 5.1.2, (a) during the
Term and for an additional [***] ([***]) years thereafter it will not disclose,
and will cause its Affiliates and Sublicensees not to disclose, any
Confidential Information of the other Party and (b) during and after the Term,
it will not use, and will cause its Affiliates not to use, any Confidential
Information of the other Party, in either case, except as expressly permitted
hereunder.  Without limiting the
generality of the foregoing, each Party shall take such action, and shall cause
its Affiliates and sublicensees to take such action, to preserve the
confidentiality of the other Party’s Confidential Information as such Party
would customarily take to preserve the confidentiality of its own Confidential
Information and shall, in any event, use at least reasonable care to preserve
the confidentiality of the other Party’s Confidential Information.

5.1.2        Limited Disclosure.  ImmunoGen and sanofi-aventis each agrees that
disclosure of its Confidential Information may be made by the other Party to
any employee, consultant or Affiliate of such other Party to enable such other
Party to exercise its rights or to carry out its responsibilities under this
Agreement, provided that any such disclosure or transfer shall only be made to
Persons who are bound by written obligations as described in Section
5.1.3.  In addition, ImmunoGen and
sanofi-aventis each agrees that the other Party may disclose its Confidential
Information (a) on a need-to-know basis to such other Party’s legal and
financial advisors and (b) as reasonably necessary in connection with an
actual or potential (i) permitted sublicense of such other Party’s rights
hereunder, (ii) debt or equity financing of such other Party or (iii) purchase
by any Third Party of all of the capital stock or all or substantially all of
the assets of such other Party or any merger or consolidation involving such
other Party; if, in each case, the Person receiving such Confidential
Information of the other Party agrees in writing to maintain the
confidentiality of such Confidential Information of the other Party with terms
at least as restrictive as those contained in Section 5.1.1.  In addition, each Party agrees that the other
Party may disclose such Party’s Confidential Information (A) as reasonably
necessary to file, prosecute or maintain patents or patent applications, or to
file, prosecute or defend litigation

 A-19
 

related to
patents or patent applications, in accordance with this Agreement; or
(B) as required by Applicable Laws, provided that, in the case of any
disclosure under this clause (B), the disclosing Party shall (1) if
practicable, provide the other Party with reasonable advance notice of and an
opportunity to comment on any such required disclosure, (2) if requested
by the other Party, cooperate in all reasonable respects with the other Party’s
efforts to obtain confidential treatment or a protective order with respect to
any such disclosure, at the other Party’s expense and (3) use good faith
efforts to incorporate the comments of such other Party in any such disclosure
or request for confidential treatment or a protective order.

5.1.3        Employees and Consultants.  ImmunoGen and sanofi-aventis each hereby
represents that all of its employees and consultants, and all of the employees
and consultants of its Affiliates, who participate in the activities
contemplated by this Agreement or have access to Confidential Information of
the other Party are or will, prior to their participation or access, be bound
by written obligations to maintain such Confidential Information in confidence
and not to use such information except as expressly permitted hereunder.  Each Party agrees to use, and to cause its
Affiliates to use, reasonable efforts to enforce such obligations.

5.2           Publicity.  The Parties acknowledge that the terms of
this Agreement constitute Confidential Information of each Party and may not be
disclosed except as permitted by Section 5.1.2. 
Notwithstanding anything to the contrary in Section 5.1, the Parties,
upon the execution of this Agreement, may mutually agree to a press release
with respect to this Agreement and either Party may make subsequent public
disclosure of the contents of such press release without further approval of
the other Party.  After issuance of such
press release, except as required by Applicable Laws, neither Party
shall issue a press or news release or make any similar public announcement
(other than publication in scientific journals, in advertising materials and
brochures, or presentation at scientific conferences and meetings and the like
that are intended to be covered by, and are issued in compliance with, Section
5.3) related to the Development or Commercialization of a Licensed Product
without the prior written consent of the other Party, provided that
notwithstanding the foregoing, ImmunoGen shall be expressly permitted to
publicly announce the occurrence of any milestone event under Section 4.2.1,
provided, however, that the text of such announcement shall be mutually agreed
to by the Parties.

5.3           Publications and Presentations.  The Parties acknowledge that
scientific publications and presentations must be strictly monitored to prevent
any adverse effect from premature publication or dissemination of results of
the activities hereunder.  Each Party
agrees that, except as required by Applicable Laws, it shall not publish or
present, or permit to be published or presented, the results of the Development
or Commercialization of a Licensed Product to the extent such results refer to
or otherwise relate to the Licensed Technology or Licensed Patent Rights (the “Covered
Results”) without the prior review by and approval of the other Party.  Each Party shall provide to the other Party
the opportunity to review each of the submitting Party’s proposed abstracts,
manuscripts or presentations (including, without limitation, information to be
presented verbally) that relate to the Covered Results at least [***] ([***])
days prior to its intended presentation or submission for publication, and such
submitting Party agrees, upon written request from the other Party given within
such [***] period, not to submit such abstract or manuscript for publication or
to make such presentation until the other Party is given up to [***] ([***])
days from the date of such written request to seek appropriate patent
protection for any Covered Rights in such publication or presentation that it
reasonably

 A-20
 

believes may be patentable.  Once such abstracts, manuscripts or
presentations have been reviewed and approved by each Party, the same
abstracts, manuscripts or presentations do not have to be provided again to the
other Party for review for a later submission for publication.  Each Party also shall have the right to
require that any of its Confidential Information that is disclosed in any such
proposed publication or presentation be deleted prior to such publication or
presentation.  In any permitted
publication or presentation by a Party, the other Party’s contribution shall be
duly recognized, and co-authorship shall be determined in accordance with
customary industry standards.

6.             FILING, PROSECUTION AND MAINTENANCE OF PATENT
RIGHTS

6.1           Patent Filing, Prosecution
and Maintenance.

6.1.1        Licensed Patent Rights.  ImmunoGen, acting through patent counsel or
agents of its choice, shall be responsible, at its sole cost and expense, for
the preparation, filing, prosecution and maintenance of all Licensed Patent
Rights.  All costs and expenses incurred
by ImmunoGen in connection with the preparation, filing, prosecution and
maintenance of Licensed Patent Rights shall be the sole responsibility of
ImmunoGen.  At ImmunoGen’s request,
sanofi-aventis shall cooperate with ImmunoGen in all reasonable respects in
connection with such preparation, filing, prosecution and maintenance of
Licensed Patent Rights.

6.1.2        Sanofi-aventis Improvements.  Sanofi-aventis, acting through patent
counsel or agents of its choice, shall be responsible, at its sole cost and
expense, for the preparation, filing, prosecution and maintenance of Patent Rights claiming Sanofi-aventis
Improvements.  Sanofi-aventis
(i) will provide ImmunoGen with a copy of any such proposed patent
application for review and comment reasonably in advance of filing, and
(ii) will keep ImmunoGen reasonably informed of the status of such filing,
prosecution and maintenance, including, without limitation, (A) by
providing ImmunoGen with copies of all communications received from or filed in
patent office(s) with respect to such filing, and (B) by providing
ImmunoGen a reasonable time prior to taking or failing to take any action that
would affect the scope or validity of any such filing (including the
substantially narrowing, cancellation or abandonment of any claim(s) without
retaining the right to pursue such subject matter in a separate application, or
the failure to file or perfect the filing of any claim(s) in any country), with
prior written notice of such proposed action or inaction so that ImmunoGen has
a reasonable opportunity to review and comment. 
If sanofi-aventis fails to undertake the filing(s) of any such patent
application with respect to any such invention within [***] ([***]) days after
receipt of written notice from ImmunoGen that ImmunoGen believes filing(s) of
such an application by sanofi-aventis is appropriate, ImmunoGen may undertake
such filing(s) at its own expense, in which case sanofi-aventis will assign all
of its rights to such Sanofi-aventis Improvements to ImmunoGen and any
subsequently issued patent thereon will be owned solely by ImmunoGen.

6.1.3        Cooperation.  Each Party agrees to cooperate reasonably
with the other Party in the preparation, filing, and prosecution of any patent
applications pursuant to this Section 6.1. 
Such cooperation includes, but is not limited to, executing all papers
and instruments, or requiring its employees or agents to execute such papers
and instruments, so as

 A-21
 

to effectuate the ownership of such patent
applications and any patents thereon and to enable the filing and prosecution
of applications in any country.

6.2           Abandonment.

6.2.1     Licensed Patent Rights. 
If ImmunoGen decides to abandon or to allow to lapse any of the Licensed
Patent Rights that cover any Licensed Product in any country or region in the
Territory, ImmunoGen shall inform sanofi-aventis of such decision promptly and,
in any event, so as to provide sanofi-aventis a reasonable amount of time to
meet any applicable deadline to establish or preserve such Licensed Patent
Rights in such country or region. 
Sanofi-aventis shall have the right to assume responsibility for
continuing the prosecution of such Licensed Patent Rights in such country or
region and paying any required fees to maintain such Licensed Patent Rights in
such country or region or defending such Licensed Patent Rights, in each case
at sanofi-aventis’ sole expense and through patent counsel or agents of its
choice.  Sanofi-aventis shall not become
an assignee of such Licensed Patent Rights as a result of its assumption of any
such responsibility.  Upon transfer of
ImmunoGen’s responsibility for prosecuting, maintaining and defending any of
the Licensed Patent Rights to sanofi-aventis under this Section 6.2.1,
ImmunoGen shall promptly deliver to sanofi-aventis copies of all necessary
files related to the Licensed Patent Rights with respect to which
responsibility has been transferred and shall take all actions and execute all
documents reasonably necessary for sanofi-aventis to assume such prosecution,
maintenance and defense.

6.2.2     Sanofi-aventis Improvements.  If sanofi-aventis decides to abandon or to
allow to lapse any of the Patent Rights that cover Sanofi-aventis Improvements
in any country or region in the Territory, sanofi-aventis shall inform
ImmunoGen of such decision promptly and, in any event, so as to provide
ImmunoGen a reasonable amount of time to meet any applicable deadline to
establish or preserve such Patent Rights in such country or region.  ImmunoGen shall have the right to assume
responsibility for continuing the prosecution of such Patent Rights in such
country or region and paying any required fees to maintain such Patent Rights
in such country or region or defending such Patent Rights, in each case at
ImmunoGen’s sole expense and through patent counsel or agents of its
choice.  ImmunoGen shall not become an
assignee of such Patent Rights as a result of its assumption of any such
responsibility.  Upon transfer of
sanofi-aventis’ responsibility for prosecuting, maintaining and defending any
such Patent Rights to ImmunoGen under this Section 6.2.2, sanofi-aventis shall
promptly deliver to ImmunoGen copies of all necessary files related to such
Patent Rights with respect to which responsibility has been transferred and
shall take all actions and execute all documents reasonably necessary for
ImmunoGen to assume such prosecution, maintenance and defense.

6.3           Legal Actions.

6.3.1        Third Party Infringement.

(a)           In the event either Party becomes aware of any possible infringement
of, or the submission by any Third Party of an abbreviated new drug application
under the Hatch-Waxman Act that is covered by, any Licensed Patent Rights that
cover a Licensed Product or any Sanofi-aventis Improvement (an “Infringement”),
that Party shall promptly notify the other Party and provide it with all
details of such Infringement of which it is aware (each, an “Infringement
Notice”).

 A-22
 

(b)           ImmunoGenshall have the
first right and option to eliminate such Infringement with respect to
Licensed Patent Rights that cover Licensed Products by reasonable steps, which
may include the institution of legal
proceedings or other action.  All costs,
including without limitation attorneys’ fees, relating to such legal
proceedings or other action shall be borne by ImmunoGen.  If ImmunoGen does not take commercially reasonable steps to eliminate
the Infringement within [***] [***] [***] ([***]) days from any Infringement
Notice (or [***] ([***]) days in the case of an Infringement under the
Hatch-Waxman Act), then sanofi-aventis shall have the right and option to do so
at its expense, provided that if ImmunoGen has commenced negotiations
with an alleged infringer for elimination of such Infringement within such [***]-day
(or, if applicable [***]-day) period, ImmunoGen shall have an additional [***]
([***]) days (or in the case of an Infringement under the Hatch-Waxman Act, [***]
([***]) days) to conclude its negotiations before sanofi-aventis may take steps
to eliminate such Infringement.

(c)           Sanofi-aventis shall have the first right and option to
eliminate such Infringement with respect to Sanofi-aventis Improvements by
reasonable steps, which may include the
institution of legal proceedings or other action.  All costs, including without limitation
attorneys’ fees, relating to such legal proceedings or other action shall be
borne by sanofi-aventis.  If sanofi-aventis does not take commercially reasonable steps to
eliminate the Infringement within [***] [***] [***] ([***]) days from any
Infringement Notice (or [***] ([***]) days in the case of an Infringement under
the Hatch-Waxman Act), then ImmunoGen shall have the right and option to do so
at its expense, provided that if sanofi-aventis has commenced negotiations
with an alleged infringer for elimination of such Infringement within such [***]-day
(or, if applicable [***]-day) period, sanofi-aventis shall have an additional [***]
([***]) days (or in the case of an Infringement under the Hatch-Waxman Act, [***]
([***]) days) to conclude its negotiations before ImmunoGen may take steps to
eliminate such Infringement.

(d)           Neither
Party shall settle any Infringement claim or proceeding under this Section
6.3.1 without the prior written consent of the other Party, which consent shall
not be unreasonably withheld, conditioned or delayed.

(e)           Each Party shall have the right to participate, and be represented by
counsel that it selects, in any legal proceedings or other action instituted
under this Section 6.3.1 by the other Party. 
If a Party with the right to initiate legal proceedings under Section
6.3.1 to eliminate an Infringement lacks standing to do so and the other Party
has standing to initiate such legal proceedings, then the Party with standing
shall initiate such legal proceedings at the request and expense of the other
Party.

(f)            In any action, suit or proceeding instituted
under this Section 6.3.1, the Parties shall cooperate with and assist each other in all reasonable
respects.  Upon the reasonable request of
the Party instituting such action, suit or legal proceeding, the other Party
shall join such action, suit or legal proceeding and shall be represented using
counsel of its own choice, at the requesting Party’s expense.

(g)           Any
amounts recovered by either Party pursuant to Section 6.3.1(b), whether by
settlement or judgment, shall be
allocated in the following order: (i) first, to reimburse ImmunoGen and
sanofi-aventis for their reasonable
out-of-pocket expenses in making such recovery (which amounts shall be allocated pro rata according to
such expenses if insufficient to cover the totality of such expenses); (ii) to
sanofi-aventis in reimbursement for lost sales (net of royalties) associated
with Licensed Products and to ImmunoGen in reimbursement

 A-23
 

for lost
royalties owing hereunder based on such lost sales; and (iii) any amounts
remaining shall be allocated as follows: (A) if ImmunoGen is the Party bringing
such suit or proceeding or taking such other legal action, one hundred percent
(100%) to ImmunoGen, (B) if sanofi-aventis is the Party bringing such suit or
proceeding or taking such other legal action, seventy-five percent (75%) to
sanofi-aventis and twenty-five percent (25%) to ImmunoGen, and (C) if the suit
is brought jointly, fifty percent (50%) to each Party.  Any amounts recovered by either Party
pursuant to Section 6.3.1(c) whether by settlement or judgment, shall be
allocated in the following order: (A) if ImmunoGen is the Party bringing such
suit or proceeding or taking such other legal action, one hundred percent
(100%) to ImmunoGen, and (B) if sanofi-aventis is the Party bringing such suit
or proceeding or taking such other legal action, one hundred percent (100%) to
sanofi-aventis.

6.3.2        Defense of Claims.  In the event that any action, suit or
proceeding is brought against either Party or any Affiliate or Sublicensee of
either Party alleging the infringement of the Technology or Patent Rights of a
Third Party by reason of the use by sanofi-aventis of the Licensed Technology
or Licensed Patent Rights to Develop or Commercialize any Licensed Product: (a)ImmunoGen shall have the obligation to
defend such action, suit or proceeding at its sole expense; (b) sanofi-aventis
shall have the right to separate counsel at its own expense in any such action,
suit or proceeding; and (c) the Parties shall cooperate with each other in all
reasonable respects in any such action, suit or proceeding.  In the event that any action, suit or
proceeding is brought against either Party or any Affiliate or Sublicensee of
either Party alleging the infringement of the Technology or Patent Rights of a
Third Party by reason of the use by ImmunoGen of the Sanofi-aventis
Improvements (a)sanofi-aventisshall have the obligation to defend such
action, suit or proceeding at its sole expense; (b) ImmunoGen shall have the
right to separate counsel at its own expense in any such action, suit or
proceeding; and (c) the Parties shall cooperate with each other in all
reasonable respects in any such action, suit or proceeding.  Each Party shall provide the other Party with
prompt written notice of the commencement of any such suit, action or
proceeding, or of any allegation of infringement of which such Party becomes
aware, and shall promptly furnish the other Party with a copy of each
communication relating to the alleged infringement that is received by such
Party.  For purposes of clarity, nothing
in this Section 6.3.2 shall affect the right of either Party to defend itself
in any action suit or proceeding.

7.             TERM AND TERMINATION

7.1           Term.  This Agreement shall
commence on the Effective Date and shall continue in full force and effect
until such time as all Royalty Terms for the Licensed Product have ended,
unless earlier terminated in accordance with the provisions of this Article 7(the “Term”).

7.2           Termination.  This Agreement may be terminated at any time
by either Party as follows:

7.2.1        Termination for Breach.  Except as set forth herein, either Party may
terminate this Agreement, effective immediately upon written notice to the
other Party, for a breach by the other Party of any material term of this Agreement that remains uncured [***]
([***]) days ([***] ([***]) days in the event that the breach is a failure of
sanofi-aventis to make any payment required hereunder) after the non-breaching
Party first gives written notice of such

 A-24
 

breach to the other
Party.  Notwithstanding anything to the
contrary set forth herein, (a) if the asserted breach is cured or shown to be
non-existent within the applicable cure period, the notice of breach hereunder
shall be deemed automatically withdrawn; and (b) a material breach by a party
shall not give rise to the termination right under this Section 7.2.1 to the
extent such material breach arises from a Force Majeure event as described in
Section 10.11, provided, that the Party breaching this Agreement shall have the
burden of demonstrating the occurrence of a Force Majeure.  Notwithstanding the foregoing, a Party may
not terminate this Agreement pursuant to this Section 7.2.1 at a time when such
Party has committed a breach of a material term of this Agreement which remains
uncured.

7.2.2        Termination for Insolvency.  In
the event that either Party files for protection under bankruptcy laws, makes
an assignment for the benefit of creditors, appoints or suffers appointment of
a receiver or trustee over its property, files a petition under any bankruptcy
or insolvency act or has any such petition filed against it which is not
discharged within [***] ([***]) days of the filing thereof, then the other
Party may terminate this Agreement effective immediately upon written notice to
such Party.  In connection therewith, all
rights and licenses granted under this Agreement are, and shall be deemed to
be, for purposes of Section 365(n) of the United States Bankruptcy Code,
licenses of rights to “intellectual property” as defined under
Section 101(56) of the United States Bankruptcy Code.  In the event that either Party undergoes a
voluntary dissolution or winding-up of its affairs, then the other Party may
terminate this Agreement effective immediately upon written notice to such
Party.

7.2.3        Sanofi-aventis Termination Without Cause.  Sanofi-aventis shall have the right, in its
sole discretion, to terminate this Agreement upon [***] ([***]) month’s written
notice to ImmunoGen.

7.3           Consequences
of Termination of Agreement.  In the event of the termination of this
Agreement pursuant to Section 7.2, the following provisions shall apply, as
applicable.

7.3.1        Termination by ImmunoGen under Section 7.2.1 or by
sanofi-aventis under Section 7.2.3. 
If this Agreement is terminated by ImmunoGen pursuant to Section
7.2.1 or by sanofi-aventis under Section 7.2.3:

(a)           all
of the licenses granted by
ImmunoGen to sanofi-aventis pursuant to Section 2.1.1 shall immediately
terminate; and

(b)           each
Party shall promptly return or destroy all Confidential Information of the
other Party that are not subject
to a continuing license hereunder, provided that each Party may retain one copy
of the Confidential Information of the
other Party in its archives solely for the purpose of establishing the contents
thereof and ensuring compliance with its obligations hereunder.

7.3.2        Termination by sanofi-aventis Pursuant to Section 7.2.1.  If this Agreement is terminated by
sanofi-aventis pursuant to Section 7.2.1:

(a)           the
license granted by ImmunoGen to sanofi-aventis pursuant to Section 2.1.1 shall
survive solely as applied to the Licensed
Product being Developed or

 A-25
 

Commercialized
by sanofi-aventis as of the effective date of termination, subject to sanofi-aventis’
continued payment of all milestone, royalty and other payments under and in
accordance with this Agreement with respect thereto;

(b)           all other licenses
granted by ImmunoGen to sanofi-aventis pursuant to Section 2.1.1 shall immediately
terminate; and

(c)           each
Party shall promptly return or destroy all Confidential Information of the
other Party that are not subject to a continuing license hereunder, provided
that each Party may retain one copy of the Confidential Information of the other Party in its archives solely for
the purpose of establishing the
contents thereof and ensuring compliance with its obligations hereunder.

7.3.3        Termination Pursuant to Section 7.2.2.  If this Agreement is terminated by
sanofi-aventis or ImmunoGen pursuant
to Section 7.2.2, unless prohibited by Applicable Laws:

(a)           the
license set forth in Section 2.1.1 shall survive solely as applied to Licensed Product being Developed or
Commercialized by sanofi-aventis as of the effective date of termination, subject
to sanofi-aventis’ continued
payment of all milestone, royalty and other payments under and in accordance
with this Agreement with respect thereto;

(b)           all other licenses
granted by ImmunoGen to sanofi-aventis pursuant to Section 2.1.1 shall
immediately terminate; and

(c)           each
Party shall promptly return all Confidential Information of the other Party
that are not subject to a continuing license hereunder, provided that each
Party may retain one copy of the Confidential
Information of the other Party in its archives solely for the purpose of
establishing the contents thereof and ensuring compliance with its obligations
hereunder.

7.4           Surviving Provisions.  Termination or expiration of this Agreement
for any reason shall be without prejudice to:

(a)           the rights and obligations of the Parties provided in Sections 7.4,
9.2, 9.3, 9.4 and 9.5 and Articles 5 and 10 (including all other Sections or Articles referenced in any such Section or Article
and including Article 1), all of which shall survive such termination;

(b)           ImmunoGen’s rights to receive royalties and milestone payments for the
duration of any applicable Royalty Term, if any; and

(c)           any other rights or
remedies provided at law or equity which either Party may otherwise have.

8.             REPRESENTATIONS, WARRANTIES AND COVENANTS

8.1           Mutual Representations and Warranties.  ImmunoGen and sanofi-aventis each
represents and warrants to the other, as of the Effective Date, as follows:

8.1.1        Organization.  It is a corporation duly organized, validly
existing and in

 A-26
 

good standing
under the laws of
the jurisdiction of its organization, and has all requisite power and
authority, corporate or otherwise, to execute, deliver and perform this
Agreement.

8.1.2        Authorization.  The execution and delivery of this Agreement
and the performance by it of the transactions contemplated hereby have been duly authorized by all necessary
corporate action and will not violate (a) such Party’s certificate of
incorporation or bylaws, (b) any agreement, instrument or contractual
obligation to which such Party is bound in any material respect, (c) any
requirement of any Applicable Law, or (d) any order, writ, judgment,
injunction, decree, determination or award of any court or governmental agency
presently in effect applicable to such Party.

8.1.3        Binding Agreement.  This Agreement is a legal, valid and binding
obligation of such Party enforceable against it in accordance with its terms
and conditions.

8.1.4        No Inconsistent Obligation.  It
is not under any obligation, contractual or otherwise, to any Person that conflicts with or is inconsistent in
any respect with the terms of this Agreement or that would impede the diligent
and complete fulfillment of its obligations hereunder.

8.2           Additional
Representations of ImmunoGen. 
ImmunoGen further represents and warrants to sanofi-aventis, as of
the Effective Date, as follows:

8.2.1        Licensed Patent Rights.  All
Licensed Patent Rights existing as of the Effective Date are existing and, to
ImmunoGen’s knowledge, no such Licensed Patent Rights are invalid or
unenforceable.

8.2.2        Claims or Judgments.  There are no claims, judgment or
settlements against ImmunoGen pending, or to ImmunoGen’s knowledge, threatened,
that invalidate or seek to invalidate the Licensed Patent Rights existing as of
the Effective Date.

8.2.3        Right to Technology.  ImmunoGen has
the right to (a) use the Licensed Technology and Licensed Patent Rights
existing as of the Effective Date as is necessary to fulfill its obligations
under this Agreement; and (b) grant the licenses under the Licensed Patent
Rights granted pursuant to this Agreement.

8.2.4        No Infringement.  To ImmunoGen’s knowledge, no Third Party is
infringing, or threatening to infringe, the Licensed Patent Rights.  To ImmunoGen’s knowledge, the use of
Licensed Patent Rights under this
Agreement for the Development, manufacture, use or Commercialization of
Licensed Products does not infringe the Patent Rights of any Third Party, nor
has ImmunoGen received any written notice alleging such infringement.

8.2.5        No Litigation.  To ImmunoGen’s knowledge, there is no pending
or threatened litigation that alleges
that ImmunoGen’s proposed activities under this Agreement would infringe or
misappropriate any intellectual property rights of any Third Party.

8.3           Covenant of ImmunoGen.  ImmunoGen agrees to use commercially
reasonable efforts to maintain the right, to
(a) use the Licensed Technology and Licensed Patent Rights existing as of the
Effective Date as is necessary to fulfill its obligations under this Agreement;
and (b) grant the licenses under the Licensed Patent Rights granted pursuant to
this Agreement.

 A-27
 

9.             INDEMNIFICATION

9.1           Indemnification of sanofi-aventis by ImmunoGen. 
ImmunoGen shall indemnify, defend and hold harmless sanofi-aventis, its
Affiliates, their respective directors, officers, employees and agents, and
their respective successors, heirs and assigns (collectively, the “sanofi-aventis
Indemnitees”), against all liabilities, damages, losses and expenses
(including, without limitation, reasonable attorneys’ fees and expenses of
litigation) (collectively, “Losses”) incurred by or imposed upon the
sanofi-aventis Indemnitees, or any one of them, as a direct result of claims,
suits, actions, demands or judgments of Third Parties, including without
limitation personal injury and product liability claims and claims of suppliers
and ImmunoGen employees (collectively, “Claims”), arising out of the material
breach by ImmunoGen of this Agreement, except with respect to any Claim
or Losses that result from a material
breach of this Agreement by, or the gross negligence or willful misconduct of,
sanofi-aventis, provided that, with
respect to any Claim for which ImmunoGen has an obligation to any
sanofi-aventis Indemnitee pursuant to this Section 9.1 and sanofi-aventis has
an obligation to any ImmunoGen Indemnitee pursuant to Section 9.2, each
Party shall indemnify each of the other Party’s Indemnitees for its Losses to
the extent of its responsibility, relative to the other Party, for the facts
underlying the Claim.

9.2           Indemnification of ImmunoGen by sanofi-aventis. 
Sanofi-aventis shall indemnify, defend and hold harmless ImmunoGen, its
Affiliates, their respective directors, officers, employees and agents, and
their respective successors, heirs and assigns (the “ImmunoGen Indemnitees”),
against any Losses incurred by or imposed upon the ImmunoGen Indemnitees, or
any one of them, as a direct result of Claims arising out of (a) the material
breach by sanofi-aventis of this Agreement; (b) the Development or
Commercialization (including, without limitation, the production, manufacture,
promotion, import, sale or use by any Person) of any Licensed Product by
sanofi-aventis or any of its Affiliates, Sublicensees, distributors or agents,
except with respect to any Claim or Losses that result from a breach of this Agreement by, or the gross
negligence or willful misconduct of, ImmunoGen, provided that with respect to any Claim for which ImmunoGen
has an obligation to any sanofi-aventis Indemnitee pursuant to Section 9.1 and
sanofi-aventis has an obligation to any ImmunoGen Indemnitee pursuant to this
Section 9.2, each Party shall indemnify each of the other Party’s
Indemnitees for its Losses to the extent of its responsibility, relative to the
other Party, for the facts underlying the Claim.

9.3           Conditions to Indemnification.  A Person seeking recovery
under this Article 9(the “Indemnified Party”) in
respect of a Claim shall give prompt notice of such Claim to the Party from
which recovery is sought (the “Indemnifying Party”) and, provided that the
Indemnifying Party is not contesting its obligation under this Article 9, shall
permit the Indemnifying Party to control any litigation relating to such Claim
and the disposition of such Claim, provided that the Indemnifying Party shall
(a) act reasonably and in good faith with respect to all matters relating to
the settlement or disposition of such Claim as the settlement or disposition
relates to such Indemnified Party and (b) not settle or otherwise resolve such
claim without the prior written consent of such Indemnified Party (which
consent shall not be unreasonably withheld, conditioned or delayed).  Each Indemnified Party shall cooperate with
the Indemnifying Party in its defense of any such Claim in all reasonable
respectsand shall have the right to be present in
person or through counsel at all legal proceedings with respect to such Claim.

 A-28
 

9.4           Warranty Disclaimer.  EXCEPT AS OTHERWISE EXPRESSLY PROVIDED IN
THIS AGREEMENT, NEITHER PARTY MAKES ANY WARRANTY WITH RESPECT TO ANY
TECHNOLOGY, GOODS, SERVICES, RIGHTS OR OTHER SUBJECT MATTER OF THIS AGREEMENT
AND EACH PARTY HEREBY DISCLAIMS ALL WARRANTIES, EXPRESS OR IMPLIED, INCLUDING
WITHOUT LIMITATION WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR
PURPOSE AND NONINFRINGEMENT.

9.5           Limited Liability.  NOTWITHSTANDING ANYTHING TO THE CONTRARY IN
THIS AGREEMENT, NEITHER PARTY SHALL BE LIABLE TO THE OTHER PARTY OR ANY OF ITS
AFFILIATES FOR (I) ANY SPECIAL, PUNITIVE, INDIRECT, INCIDENTAL OR CONSEQUENTIAL
DAMAGES, INCLUDING WITHOUT LIMITATION LOST PROFITS OR LOST REVENUES, OR (II)
COST OF PROCUREMENT OF SUBSTITUTE GOODS, TECHNOLOGY OR SERVICES, WHETHER UNDER
ANY CONTRACT, WARRANTY, NEGLIGENCE, STRICT LIABILITY OR OTHER LEGAL OR
EQUITABLE THEORY.

10.          MISCELLANEOUS

10.1         Notices.  All notices and communications shall be in
writing and delivered personally or by courier or mailed via certified mail,
return receipt requested, addressed as follows, or to such other address as may
be designated from time to time:

	
  If to sanofi-aventis:

  	
  If to ImmunoGen:

  
	
   

  	
   

  
	
  sanofi-aventis
  U.S. Inc.

  	
  ImmunoGen, Inc.

  
	
  1041 Rt. 202-206

  	
  128 Sidney Street

  
	
  Bridgewater, NJ
  08807

  	
  Cambridge, Massachusetts 02139

  
	
  Attn: Head, US
  Alliances & Partnerships

  	
  Attn: Chief Executive Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
  With a copy to:

  	
  With a copy to:

  
	
   

  	
   

  
	
  Attn: Head, US
  R&D Legal

  	
  Mintz, Levin,
  Cohn, Ferris, Glovsky and Popeo, PC

  
	
   

  	
  One Financial
  Center

  
	
   

  	
  Boston,
  Massachusetts 02111

  
	
   

  	
  Attention: [***]
  [***], Esq.

  
	
   

  	
  Tel: (617)
  542-6000

  
	
   

  	
  Fax: (617)
  542-2241

  

 

Except as otherwise expressly provided in this
Agreement or mutually agreed in writing, any notice, communication or document
(excluding payment) required to be given or made shall be deemed given or made
and effective upon actual receipt or, if earlier, (a) three (3) business days
after deposit with an internationally-recognized overnight express courier with
changes prepaid, or (b) five (5) business days after mailed by certified,
registered or regular mail, postage prepaid, in each case addressed to a
Parties at its address stated above or to such other address as such Party may
designate by written notice given in accordance with this Section 10.2.

 A-29
 

10.2         Governing Law.  This Agreement shall be governed by and
construed in accordance with the laws of the state of Delaware (USA), without
regard to the application of principles of conflicts of law.

10.3         Binding Effect.  This Agreement shall be binding upon and
inure to the benefit of the Parties and their respective legal representatives,
successors and permitted assigns.

10.4         Headings.  Section and subsection headings are inserted
for convenience of reference only and do not form a part of this Agreement.

10.5         Counterparts.  This Agreement may be executed simultaneously
in two or more counterparts, each of which shall be deemed an original and both
of which, together, shall constitute a single agreement.

10.6         Amendment; Waiver.  This Agreement may be amended, modified,
superseded or canceled, and any of the terms of this Agreement may be waived,
only by a written instrument executed by each Party or, in the case of waiver,
by the Party or Parties waiving compliance. The delay or failure of either
Party at any time or times to require performance of any provisions shall in no
manner affect the rights at a later time to enforce the same. No waiver by
either Party of any condition or of the breach of any term contained in this
Agreement, whether by conduct, or otherwise, in any one or more instances,
shall be deemed to be, or considered as, a further or continuing waiver of any
such condition or of the breach of such term or any other term of this
Agreement.

10.7         No Third Party Beneficiaries.  Except as set forth in
Sections 9.1 and 9.2, no Third Party (including, without limitation, employees
of either Party) shall have or acquire any rights by reason of this Agreement.

10.8         Purposes and Scope.  The Parties hereto understand and agree that
this License Agreement is limited to the activities, rights and obligations as
set forth in this Agreement. Nothing in this Agreement shall be construed (a)
to create or imply a general partnership between the Parties, (b) to make
either Party the agent of the other for any purpose, (c) to alter, amend,
supersede or vitiate any other arrangements between the Parties with respect to
any subject matters not covered hereunder, (d) to give either Party the right
to bind the other, (e) to create any duties or obligations between the Parties
except as expressly set forth herein, or (f) to grant any direct or implied
licenses or any other right other than as expressly set forth herein.

10.9         Assignment and Successors.  Neither this Agreement nor any
obligation of a Party hereunder may be assigned by either Party without the
consent of the other which shall not be unreasonably withheld, except that each
Party may assign this Agreement and the rights, obligations and interests of
such Party, in whole or in part, to any of its Affiliates, and to any Third
Party purchaser of all of the capital stock of such Party or all or
substantially all of its assets in the line of business to which this Agreement
pertains or to any successor corporation resulting from any merger or
consolidation of such Party with or into such corporation.

10.10       Force Majeure Event.  Neither sanofi-aventis nor ImmunoGen shall be
liable for failure of or delay in performing obligations set forth in this
Agreement, and neither shall be deemed in breach of its obligations, if such
failure or delay is due to a Force Majeure Event.  In

 A-30
 

event of such Force Majeure Event, the Party
affected shall use reasonable efforts to cure or overcome the same and resume
performance of its obligations hereunder.

10.11       Interpretation.  The Parties hereto acknowledge and agree that
each Party and its counsel reviewed and negotiated the terms and provisions of this
Agreement and have contributed to its revision. 
In addition, unless a 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 and the word “or” is used in the
inclusive sense (and/or).

10.12       Integration; Severability.  This Agreement, the
Collaboration Agreement and the Option and License Agreement are the entire
agreements with respect to the subject matter hereof and supersede all other
agreements and understandings between the Parties with respect to such subject
matter.  If any provision of this
Agreement is or becomes invalid or is ruled invalid by any court of competent
jurisdiction or is deemed unenforceable, it is the intention of the Parties
that the remainder of this Agreement shall not be affected.

10.13       Further Assurances.  Each of ImmunoGen and sanofi-aventis agrees
to duly execute and deliver, or cause to be duly executed and delivered, such
further instruments and do and cause to be done such further acts and things,
including, without limitation, the filing of such additional assignments,
agreements, documents and instruments, as the other Party may at any time and
from time to time reasonably request in connection with this Agreement or to
carry out more effectively the provisions and purposes of, or to better assure
and confirm unto such other Party its rights and remedies under, this
Agreement.

[Remainder
of page intentionally left blank.]

 A-31
 

IN WITNESS WHEREOF, the Parties have caused this Agreement to be
executed by their duly authorized representatives.

	
   

  	
  IMMUNOGEN, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: 

  	
   

  	
   

  
	
   

  	
  Name: 

  	
   

  	
   

  
	
   

  	
  Title: 

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  SANOFI-AVENTIS
  U.S. LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: 

  	
   

  	
   

  
	
   

  	
  Name: 

  	
   

  	
   

  
	
   

  	
  Title: 

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  SANOFI-AVENTIS
  U.S. LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: 

  	
   

  	
   

  
	
   

  	
  Name: 

  	
   

  	
   

  
	
   

  	
  Title: 

  	
   

  	
   

  
						

 

 A-32

Exhibit A

Licensed
Target

 A-1

Schedule
1

Licensed Patent Rights

[***]

[***]

 

	
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 A-6
 

Schedule
1

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Patent Rights

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 A-7
 

 

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 A-12Exhibit 10.3

EXECUTION COPY

LICENSE AGREEMENT

This
License Agreement (the “Agreement”) is made effective as of July 22, 2005 (the “Effective
Date”) by and between GENENTECH, INC., a Delaware corporation having its
principal business office at 1 DNA Way, South San Francisco, California 94080 (“GENENTECH”),
and IMMUNOGEN, INC., a Massachusetts corporation with its principal place of
business at 128 Sidney Street, Cambridge, Massachusetts 02139 (“IMMUNOGEN”).  GENENTECH and IMMUNOGEN are each hereafter
referred to individually as a “Party” and together as the “Parties”.

WHEREAS,
the Parties entered into the Heads of Agreement (defined below) pursuant to
which IMMUNOGEN granted GENENTECH the right to obtain up to [***] exclusive
options at any given time to obtain an exclusive license to use IMMUNOGEN’s
proprietary maytansinoid conjugation technology with certain proprietary
antibodies of GENENTECH and other binding proteins relating thereto that bind
to any antigen target selected by GENENTECH and determined by IMMUNOGEN to be
available for licensing as described more fully in the Heads of Agreement; and

WHEREAS,
pursuant to the Heads of Agreement, GENENTECH was granted an Exclusive Target
Option (as defined in the Heads of Agreement) with respect to [***] and has
exercised such Exclusive Target Option pursuant to the terms set forth in the
Heads of Agreement, resulting in the grant of an exclusive license from
IMMUNOGEN to GENENTECH on the terms set forth in the Heads of Agreement; and

WHEREAS,
pursuant to the Heads of Agreement, the Parties have agreed to enter into an
agreement setting forth the detailed terms of the exclusive license from
IMMUNOGEN to GENENTECH.

NOW,
THEREFORE, in consideration of the mutual covenants contained herein, and for
other good and valuable consideration, the receipt and adequacy of which are
hereby acknowledged, the Parties hereby agree as follows:

1. 
DEFINITIONS

Whenever used in the Agreement with an initial capital
letter, the terms defined in this Section 1 shall have the meanings specified.

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

1.1.          “Adverse Event” shall mean any untoward medical occurrence in a patient or
subject who is administered a Licensed Product, whether or not considered
related to the Licensed Product, including, without limitation, any undesirable
sign (including abnormal laboratory findings of clinical concern), symptom or
disease temporally associated with the use of such Licensed Product.

1.2.          “Affiliate”
shall mean any corporation, firm, limited liability company, partnership or
other entity which directly or indirectly controls or is controlled by or is
under common control with a Party to this Agreement.  For purposes of this Section 1.2, “control”
means ownership, directly or indirectly through one or more Affiliates, of
fifty percent (50%) or more of the shares of stock entitled to vote for the
election of directors, in the case of a corporation, or fifty percent (50%) or
more of the equity interests in the case of any other type of legal entity, or
status as a general partner in the case of any partnership, or any other arrangement
whereby a Party controls or has the right to control the Board of Directors or
equivalent governing body or management of a corporation or other entity.

1.3.          “Agreement”
shall mean this Agreement between the Parties, dated as of the Effective Date,
including any exhibits, schedules or other attachments hereto and incorporated
herein, as any of the foregoing may be validly amended from time to time.  In the event of any inconsistency between the
terms of this Agreement and the terms of any exhibits, schedules or other
attachments incorporated herein, the terms of this Agreement shall govern
unless the Parties expressly agree otherwise in writing.

1.4.          “Allocable
Overhead” shall mean overhead costs incurred by IMMUNOGEN
attributable to IMMUNOGEN’s supervisory services, occupancy costs, and its
payroll, information systems, human relations, purchasing, accounts receivable
or accounts payable functions which are allocated to company departments based
on space occupied or headcount or another activity-based method, and shall
include the “General Administrative Fee” as defined hereinbelow.  For purposes of any given calculation of “Allocable
Overhead” hereunder, the “General and Administrative Fee” shall equal [***]
percent ([***]%) of the total amount of Allocable Overhead (as calculated
before the inclusion of any such fee). 
However, “Allocable Overhead” shall not include any costs attributable
to general corporate activities, executive management, investor relations,
corporate communications, business development, legal affairs or finance.

 2
 

1.5.          “[***]” shall mean a protein that
corresponds to GenPept Accession Number [***], or any variant or fragments
thereof.

1.6.          “[***] Antibody”
shall mean any monoclonal antibodies Controlled by GENENTECH that bind to [***]
and any other proteins binding to [***], and shall include, without limitation,
any variants (including, without limitation, humanized versions), fragments
(including, without limitation, single-chain versions) or derivatives of any of
the foregoing.

1.7.          “[***]
Product” shall mean any product containing an anti-[***]
monoclonal antibody conjugated to a MAY Compound.

1.8.          “Clinical
Materials” shall mean (a) supplies of ansamitocin P-3, and/or
any other MAY Compound as manufactured in accordance with all applicable GMPs
and other legal requirements and all applicable Specifications for such MAY
Compound for use in human clinical testing, and (b) supplies of any Licensed
Product as manufactured in accordance with all applicable GMPs and other legal requirements
and all applicable Specifications for such Licensed Product for use in human
clinical testing of any Licensed Product.

1.9.          “Collaboration Committee” shall mean
the committee with representatives of each Party established as set forth in
Section 3.4.

1.10.        “Combination
Product” shall mean any Licensed Product that contains, in
addition to any conjugate of a [***] Antibody with any MAY Compound, one or
more other ingredients that has biologic activity as a therapeutic agent when
present alone.

1.11.        “Confidential
Information” shall have the meaning set forth in Section 5.1.

1.12.        “Control”
or “Controlled” shall mean, with
respect to any Patent Rights or Technology (including, without limitation, any
MAY Compound, [***] Antibody or other proprietary biologic material covered
under this Agreement), the possession by a Party of the ability to grant a
license or sublicense of such patent rights, know-how or other intellectual
property and the rights thereto or to supply such compounds or materials as provided
for in this Agreement without violating the terms of any arrangement or
agreement between such Party and any Third Party.

1.13.        “Development”
and “Develop” shall mean, with respect
to any Licensed Product, all activities with respect to such Licensed Product
relating to research and development in connection with seeking, obtaining
and/or maintaining any Regulatory Approval for such Licensed Product in the
Field in the Territory, including without limitation, all pre-clinical 

 3
 

research and
development activities, all human clinical studies, all activities relating to
developing the ability to manufacture any Licensed Product or any component
thereof (including, without limitation, process development work), and all
other activities relating to seeking, obtaining and/or maintaining any
Regulatory Approvals from the FDA and/or any Foreign Regulatory Authority.

1.14.        “Drug
Approval Application” shall mean any application for Regulatory
Approval (including pricing and reimbursement approvals) required prior to any
commercial sale or use of a Licensed Product in any country or jurisdiction in
the Territory, including, without limitation, (a) any NDA or MAA filed with the
FDA or any Foreign Regulatory Authority, and (b) any equivalent application
filed with any Foreign Regulatory Authority for Regulatory Approval (including
pricing and reimbursement approvals) required prior to any commercial sale or
use of a Licensed Product in any country or jurisdiction in the Territory.

1.15.        “Effective
Date” shall mean the date first written above in the
introductory paragraph to this Agreement.

1.16.        “FDA”
shall mean the United States Food and Drug Administration and any successor
agency or authority thereto.

1.17.        “Field”
shall mean any and all human uses.

1.18.        “First Commercial
Sale” shall mean the date of the first commercial sale (other
than for purposes of obtaining Regulatory Approval) of a Licensed Product by or
on behalf of GENENTECH or any Sublicensee.

1.19.        “[***] Indication” shall mean the [***] use permitted by
the FDA or any Foreign Regulatory Authority in any Regulatory Approval of a
given Licensed Product.

1.20.        “Foreign
Regulatory Authority” shall mean any applicable supranational,
national, federal, state or local regulatory agency, department, bureau or other
governmental entity of any country or jurisdiction in the Territory (other than
the FDA in the United States), having responsibility in such country or
jurisdiction for any Regulatory Approvals of any kind in such country or
jurisdiction, and any successor agency or authority thereto.

1.21.        “Fully
Burdened Manufacturing Cost” shall mean, with respect to any
Preclinical Materials or Clinical Materials produced by IMMUNOGEN for GENENTECH
under this Agreement, the sum of the following components: (a) the costs of
goods produced, as determined by IMMUNOGEN in accordance with generally
accepted accounting principles in 

 4
 

the United States,
consistently applied, including, without limitation, direct labor, material and
product testing costs of such Preclinical Materials or Clinical Materials; (b)
any Third Party royalty costs directly allocable to the manufacture or use of
such Preclinical Materials or Clinical Materials; (c) all Allocable Overhead on
the cost of goods under clause (a) above; and (d) any other costs borne by
IMMUNOGEN, for the transport, customs clearance, duty, insurance and/or storage
of such Preclinical Materials or Clinical Materials.

1.22.        “GENENTECH”
shall mean Genentech, Inc., a Delaware corporation, and its successors and
permitted assigns under this Agreement.

1.23.        “GLPs”
shall mean all good laboratory practices under Title 21 of the United States
Code of Federal Regulations, as amended from time to time.

1.24.        “GMPs”
shall mean all good manufacturing practices under Title 21 of the United States
Code of Federal Regulations, as amended from time to time.

1.25.        “Heads of Agreement” shall mean the Heads of Agreement,
dated May 2, 2000, as amended, whereunder the Parties agreed upon the terms and
conditions for a broader arrangement relating to the conjugation of a larger
array of antibodies and binding proteins to maytansine derivatives such as DM1.

1.26.        “HER2 License Agreement” shall mean that certain
License Agreement dated as of May 2, 2000, as amended May 3, 2006, by and
between the Parties with respect to the use of IMMUNOGEN’s proprietary
maytansinoid conjugation technology with GENENTECH’s Anti-HER2 antibodies and
other HER-2 binding proteins.

1.27.        “IMMUNOGEN”
shall mean ImmunoGen, Inc., a Massachusetts corporation, and its successors and
permitted assigns under this Agreement.

1.28.        “IMMUNOGEN
Field” shall mean any and all uses other than any
use that involves an antibody that binds to an antigen that is subject to an
exclusive license from IMMUNOGEN under, or arising from, the Heads of Agreement
or an antigen that is subject to an Exclusive Target Option under the Heads of
Agreement, during the period that such exclusive license or Exclusive Target
Option remains in effect.

1.29.        “Improvement”
shall mean: (a) improvements to any MAY Compound, (b) improvements to
methods of making any MAY Compound, and (c) improvements to the
conjugation process for making antibody-drug conjugates that include any MAY
Compound (including, for example, reaction conditions or changes in process
that create improvements in 

 5
 

the yield of such
conjugate).  “Improvement” excludes any
and all of the following items (“GNE Exclusions”): (w) any improvement
that is specific to any antibody-drug conjugates that bind to an antigen that
is subject to an exclusive license from IMMUNOGEN under, or arising from, the
Heads of Agreement or is subject to an Exclusive Target Option under the Heads
of Agreement during the period that such exclusive license or Exclusive Target
Option remains in effect; (x) improvements to [***] [***] [***] or [***]
[***], or the [***] of [***] or [***] [***] of the foregoing;
(y) improvements arising out of GENENTECH [***] or [***] activities
(whether or not the associated [***] is the subject of a license or option to
GENENTECH by IMMUNOGEN); or (z) the [***] or [***] of [***] [***] [***] (i.e.,the [***] or
[***] of such [***] [***] (e.g.,the [***] of [***] or the [***] of [***] to [***]) and
[***] the manner of [***] such [***] [***]) that binds to an antigen that is
subject to an exclusive license from IMMUNOGEN under, or arising from, the
Heads of Agreement or an antigen that is subject to an Exclusive Target Option
under the Heads of Agreement, during the period that such exclusive license or
Exclusive Target Option remains in effect.

1.30.        “IND”
shall mean an investigational new drug application (as defined in Title 21 of
the United States Code of Federal Regulations, as amended from time to time)
filed or to be filed with the FDA with regard to any Licensed Product.

1.31.        “Indemnitees”
and “Indemnifying Party” shall have the
meanings set forth in Section 9.

1.32.        “Licensed
Patent Rights” shall mean any and all Patent Rights in the Field
in the Territory which are Controlled by IMMUNOGEN as of the Effective Date or
become Controlled by IMMUNOGEN during the Term, to the extent that any of the
foregoing is necessary or useful for the Development, manufacture, use, import,
export or sale of any Licensed Product (or any component thereof) in the Field
in the Territory.  The Licensed Patent Rights
as of the Effective Date include, without limitation, the patents and patent
applications set forth in the Existing License Agreement, as updated from time
to time.

1.33.        “Licensed
Product” shall mean any product containing any conjugate of a
[***] Antibody with any MAY Compound, and shall include, without limitation,
any formulation thereof (including, without limitation, any lyophilized,
liquid, sustained release or aerosolized formulation).  “Licensed Product” shall also include any and
all Combination Products (if any).

 6
 

1.34.        “Licensed
Technology” shall mean any and all Technology which relates to
the use of any Licensed Product in the Field in the Territory which is
Controlled by IMMUNOGEN as of the Effective Date or becomes Controlled by
IMMUNOGEN during the Term, to the extent that any of the foregoing relates to
any Licensed Patent Rights or is necessary or useful for the Development,
manufacture, use, import, export or sale of any Licensed Product in the Field
in the Territory.

1.35.        “MAA”
shall mean an application filed with the relevant Foreign Regulatory Authority
in Europe seeking Regulatory Approval to market and sell any Licensed Product
in Europe or any country or territory therein for a particular indication
within the Field.

1.36.        “MAY
Compound” shall mean any and all maytansinoid compounds
(including, without limitation, maytansine, ansamitocin P-3 and DM1), whether
produced by a botanical source, natural fermentation or chemical synthesis, and
shall include, without limitation, all variants, fragments or derivatives of
any of the foregoing, in each case owned or otherwise Controlled by
IMMUNOGEN.  MAY shall include, without
limitation, that certain maytansine derivative known as “DM1” whose more
specific chemical name is N2’-deacetyl-N2’-(3-mercapto-1-oxopropyl)-maytansine.

1.37.        “NDA”
shall mean a new drug application (as defined in Title 21 of the United States
Code of Federal Regulations, as amended from time to time) filed with the FDA
seeking Regulatory Approval to market and sell any Licensed Product in the
United States for a particular indication within the Field.

1.38.        “Net Sales”
shall mean, as to each calendar quarter during the Term, the gross invoiced
sales prices charged for all Licensed Products sold by GENENTECH or its Sublicensees
to Third Parties throughout the Territory during such calendar quarter, less
the following amounts incurred or paid by GENENTECH or its Sublicensees during
such calendar quarter with respect to sales of Licensed Products regardless of
the calendar quarter in which such sales were made:

(a)           trade,
cash and quantity discounts or rebates actually allowed or taken, including
discounts or rebates to governmental or managed care organizations;

(b)           credits
or allowances actually given or made for rejection of or return of, and for
uncollectible amounts on, previously sold Licensed Products or for retroactive
price reductions (including Medicare and similar types of rebates);

 7
 

(c)           any
charges for insurance, freight, and other transportation costs directly related
to the delivery of Licensed Product to the extent included in the gross
invoiced sales price;

(d)           any
tax, tariff, duty or governmental charge levied on the sales, transfer,
transportation or delivery of a Licensed Product (including any tax such as a
value added or similar tax or government charge) borne by the seller thereof,
other than franchise or income tax of any kind whatsoever; and

(e)           any
import or export duties or their equivalent borne by the seller.  “Net Sales” shall not include sales or
transfers between GENENTECH and its Sublicensees, unless the Licensed Product
is consumed by the Sublicensee.

1.39.        “Patent
Rights” shall mean the rights and interests in and to any and
all issued patents and pending patent applications (including inventor’s
certificates and utility models) in any country or jurisdiction in the
Territory, including any and all provisionals, non-provisionals, substitutions,
continuations, continuations-in-part, divisionals and other continuing
applications, supplementary protection certificates, renewals, and all letters
patent on any of the foregoing, and any and all reissues, reexaminations,
extensions, confirmations, registrations and patents of addition on any of the
foregoing.

1.40.        “Phase II
Clinical Study” shall mean, as to a particular Licensed Product
for a particular indication, a controlled and lawful study in humans of the
safety, dose ranging and efficacy of such Licensed Product for such indication,
which is prospectively designed to generate sufficient data (if successful) to
commence a Phase III Clinical Trial of such Licensed Product for such
indication.

1.41.        “Phase
III Clinical Trial” shall mean, as to a particular Licensed
Product for a particular indication, a controlled and lawful study in humans of
the safety and efficacy of such Licensed Product for such indication, which is
prospectively designed to demonstrate statistically whether such Licensed
Product is safe and effective for use in such indication in a manner sufficient
to file an NDA to obtain Regulatory Approval to market and sell that Licensed
Product in the United States for the indication under investigation in such
study.

1.42.        “Phase
III Equivalent Decision” shall mean the date (if any) on which
GENENTECH (or its Sublicensee) decides, based on notification and input from
the FDA, that the data and results generated from the Phase II Clinical Studies
of a Licensed Product for a 

 8
 

particular
indication are sufficient, without any Phase III Clinical Trial of such
Licensed Product for such indication, to support the filing of an NDA to obtain
Regulatory Approval to market and sell that Licensed Product in the United
States for the indication under investigation.

1.43.        “Preclinical
Materials” shall mean (a) supplies of ansamitocin P-3, DM1
and/or any other MAY Compound as manufactured in accordance with all applicable
legal requirements and all applicable Specifications for such MAY Compound for
use in preclinical testing, and (b) supplies of any Licensed Product as
manufactured in accordance with all applicable legal requirements and all
applicable Specifications for such Licensed Product for use in preclinical
testing of any Licensed Product.

1.44.        “Regulatory
Approval” shall mean any and all approvals (including pricing
and reimbursement approvals), product and establishment licenses, registrations
or authorizations of any kind of the FDA or any Foreign Regulatory Authority
necessary for the development, pre-clinical and/or human clinical testing,
manufacture, quality testing, supply, use, storage, importation, export,
transport, marketing and sale of a Licensed Product (or any component thereof)
for use in the Field in any country or other jurisdiction in the
Territory.  “Regulatory Approval” shall
include, without limitation, any NDA, MAA or other Drug Approval Application.

1.45.        “[***] Indication” shall mean the [***] use permitted
by the FDA or any Foreign Regulatory Authority in any Regulatory Approval of a
given Licensed Product and with respect to which GENENTECH has made a [***]
[***] [***] based on [***] [***] that such indication will [***] at least a
$[***] [***] in [***] ([***]) [***] [***] [***] in the [***] [***].

1.46.        “Specifications”
shall mean any specifications agreed upon in writing by the Parties relating to
the manufacturing and supply of any MAY Compound and/or Licensed Product
hereunder.

1.47.        “Sublicensee”
shall have the meaning set forth in Section 2.2, and “Material
Sublicensee” shall have the meaning set forth in Section 3.3.

1.48.        “Technology”
shall mean and include any and all unpatented proprietary ideas, inventions,
discoveries, Confidential Information, biologic materials, data, results,
formulae, designs, specifications, methods, processes, formulations,
techniques, ideas, know-how, technical information (including, without
limitation, structural and functional information), process information,
pre-clinical information, clinical information, and any and all proprietary

 9
 

biological, chemical, pharmacological, toxicological, pre-clinical,
clinical, assay, control and manufacturing data and materials.

 

1.49.        “Term”
shall mean the period commencing on the Effective Date and continuing until the
expiration or termination of this Agreement in accordance with the terms hereof
(including Section 7).

1.50.        “Territory”
shall mean all countries and jurisdictions of the world.

1.51.        “[***] Indication” shall mean the [***] use permitted
by the FDA or any Foreign Regulatory Authority in any Regulatory Approval of a
given Licensed Product and with respect to which GENENTECH has made a [***]
[***] [***] based on [***] [***] that such indication will [***] at least [***]
[***] in [***] ([***]) [***] [***] [***] in the [***] [***].

1.52.        “Third
Party” shall mean any entity other than GENENTECH, IMMUNOGEN and
their respective Affiliates.

1.53.        “Third
Party Payments” shall have the meaning set forth in Section
4.2.2.

1.54.        “Valid
Claim” shall mean a claim in an issued, unexpired patent within
the Licensed Patent Rights that (i) has not been finally cancelled, withdrawn,
abandoned or rejected by any administrative agency or other body of competent
jurisdiction, and (ii) has not been revoked, held invalid, or declared
unpatentable or unenforceable in a decision of a court or other body of
competent jurisdiction that is unappealable or unappealed within the time
allowed for appeal, and (iii) has not been rendered unenforceable through
disclaimer or otherwise, and (iv) is not lost through an interference
proceeding.

2.  GRANT OF
RIGHTS

2.1.          License
Grants.

(a)           License to GENENTECH.  IMMUNOGEN hereby grants to GENENTECH an
exclusive (even as to IMMUNOGEN) royalty-bearing license within the Territory,
including the right to grant sublicenses as described in Section 2.2 below,
under the Licensed Patent Rights and Licensed Technology, to Develop, have Developed,
make, have made, use, have used, sell, have sold, offer for sale, import, have
imported, export and have exported Licensed Products in the Field in the
Territory, subject to the other terms and conditions of this Agreement.

 10
 

(b)           License to IMMUNOGEN.  GENENTECH hereby grants to IMMUNOGEN a
non-exclusive, royalty-free license (i) under GENENTECH’s intellectual
property interest in Improvements, to develop, make, use, sell, offer for sale,
import, and export any product that is not a Licensed Product or a [***]
Product, only within the IMMUNOGEN Field and subject to Section 2.3(b) below
and the remaining terms of this Section 2.1(b); and (ii) also under GENENTECH’s
intellectual property interest in Improvements, to otherwise exploit
Improvements for all uses within the IMMUNOGEN Field, subject to Section 2.3(b)
below and the remaining terms of this Section 2.1(b).  The foregoing license includes the right to
sublicense the rights granted under this Section 2.1(b) only if all of the
following three conditions (i), (ii) and (iii) are met:

(i)            the
sublicense is limited to the IMMUNOGEN Field;

(ii)           the
sublicense is granted only in connection with a license to IMMUNOGEN MAY
Technology (where “IMMUNOGEN MAY Technology”
means Technology Controlled by IMMUNOGEN and used in the conjugation of MAY
Compounds to binding proteins), and the rights granted for IMMUNOGEN MAY
Technology are of the same scope (e.g., for the
same product or technology and within the same field and the same territory) as
the rights granted for GENENTECH’s Improvements; and

(iii)          GENENTECH
obtains Substantially Similar Grant Back Rights without incurring an obligation
to pay any additional consideration (either to IMMUNOGEN or to IMMUNOGEN’s
sublicensee).  “Substantially
Similar Grant Back Rights” means non-exclusive rights in and to
that sublicensee’s “improvements” (improvements to MAY Compounds, methods of
making MAY Compounds, and methods of making antibody-drug conjugates) that are
of substantially the same scope (e.g., within
the same field and the same territory) as the rights granted in and to
Improvements under this Agreement. 
(GENENTECH may obtain such rights directly from IMMUNOGEN’s sublicensee
or indirectly through IMMUNOGEN; if GENENTECH obtains such rights from
IMMUNOGEN, IMMUNOGEN may have obtained such rights under license or by transfer
of ownership).

Nothing
in this Agreement or the course of dealings between the Parties or usage or
custom in the industry or trade shall be construed to confer any other rights
or licenses to any other intellectual property Controlled by either Party or
its Affiliates by implication, estoppel or 

 11
 

otherwise.  GENENTECH has no obligation to [***] in any
[***] [***] or [***] of [***] [***] to [***] or a [***] of [***] with respect
to [***].

2.2           Sublicenses.
 GENENTECH
shall have the right freely to grant sublicenses to all or any portion of its
rights under the license rights granted pursuant to Section 2.1(a) hereof to
any Affiliate or Third Party (in any case, a “Sublicensee”);
provided, however, that (a) each such sublicense shall be
consistent with the terms and conditions of this Agreement, and
(b) GENENTECH shall remain obligated to ensure payment of all of its
milestone and royalty obligations as set forth in Section 4 hereof.

2.3           IMMUNOGEN
Retained Rights and Covenants; GENENTECH Technology or Patent Rights.

(a)           Retained Rights.  Subject to the other terms of this Agreement,
including, without limitation, Section 2.3(b) hereof, IMMUNOGEN retains the
right to use the Licensed Technology and practice the Licensed Patent Rights
(i) to perform its work under Sections 3.3, 3.4, 3.5 and 3.6 hereof relating to
the Collaboration Committee and to manufacture and supply Preclinical Materials
and Clinical Materials for GENENTECH (and its Sublicensees), and (ii) to
develop, have developed, make, have made, use, have used, sell have sold, offer
for sale, import, have imported, export and have exported any product that is
not a Licensed Product or a [***] Product, subject to Section 2.3(b) below.

(b)           Covenants.  It is hereby further agreed that (i) during
the Term of this Agreement, IMMUNOGEN shall not Develop, have Developed, make,
have made, use, have used, sell, have sold, offer for sale, import, have
imported, export and have exported any [***] Product, which restriction shall
be [***] for [***] [***] [***] [***] [***] of this Agreement if, during a [***]
[***] [***] [***] prior to expiration or termination of this Agreement, [***]
is [***] or [***] with a [***] [***], if [***] is subject to a [***] of [***],
or if this Agreement is [***] pursuant to [***] [***], and (ii) during the Term
of this Agreement, and for [***] [***] [***] [***] (which [***] [***] [***]
[***] shall not apply in connection with expiration of this Agreement under
[***] [***] below or in connection with [***] [***] of this Agreement by [***]
under [***] [***] below, but which shall apply in connection with any other
[***] [***] of this Agreement, including by [***] under [***] [***] below),
IMMUNOGEN shall not grant to 

 12
 

any Third Party any
license or other right under any Patent Rights or Technology owned or
Controlled by IMMUNOGEN to Develop, have Developed, make, have made, use, have
used, sell, have sold, offer for sale, import, have imported, export and have
exported, any [***] Product.

(c)           No Rights to
GENENTECH Technology or Patent Rights. 
Except for the license granted to
IMMUNOGEN by GENENTECH in Section 2.1(b) above, nothing in this Section 2.3 or
any other provision of this Agreement shall be construed as a grant to IMMUNOGEN
of any license or other rights with respect to any Technology (including,
without limitation, any Confidential Information) or Patent Rights owned or
Controlled (in whole or in part) by GENENTECH.

3.  DEVELOPMENT AND
COMMERCIALIZATION

OF LICENSED PRODUCTS.

3.1           Development and Commercialization.

(a)           Responsibility.  On and after the Effective Date,
except as otherwise agreed in writing with respect to certain process
development and manufacturing activities, GENENTECH shall have full control and
authority over, and sole responsibility for, all Development and
commercialization of Licensed Products in the Field in the Territory,
including, without limitation, (i) all pre-clinical Development activities
(including any pharmaceutical development work on formulations or process
development relating to any Licensed Product), (ii) all activities related to
human clinical trials (including any phase I clinical studies, any Phase II
Clinical Studies or any Phase III Clinical Trials), (iii) all activities
relating to manufacture and supply of [***] Antibodies, all MAY Compounds
(including ansamitocin P-3 and DM1) and all Licensed Products, solely to the
extent such activities relate to the development and commercialization of
Licensed Products (including all required process development and scale up work
with respect thereto), (iv) all marketing, promotion, sales, distribution,
import and export activities relating to any Licensed Product (including any
post-marketing trials or databases and post-marketing safety surveillance), and
(v) all activities relating to any regulatory filings, registrations,
applications and Regulatory Approvals relating to any of the foregoing
(including any INDs or foreign equivalents, any manufacturing facility 

 13
 

validation and/or licensure, any Drug Approval
Applications and any other Regulatory Approvals).  Except as described in the next sentence,
GENENTECH shall own all data, results and all other information arising from
any such activities under this Agreement, including, without limitation, all
regulatory filings, registrations, applications and Regulatory Approvals
relating to Licensed Products (including any INDs or foreign equivalents, any
Drug Approval Applications and any other Regulatory Approvals), and all of the
foregoing information, documentation and materials shall be considered
Confidential Information and Technology solely owned by GENENTECH.  IMMUNOGEN shall own all data, results and all
other information arising from IMMUNOGEN’s activities relating to the
manufacture and supply of MAY Compounds (including ansamitocin P-3 and DM1) to
GENENTECH, and all of the foregoing information, documentation and materials
shall be considered Confidential Information and Technology solely owned by
IMMUNOGEN.  All activities relating to Development
and commercialization under this Agreement shall be undertaken at GENENTECH’s
sole cost and expense, except as otherwise expressly provided in this
Agreement.

(b)           Due
Diligence.  GENENTECH will exercise its commercially
reasonable efforts and diligence in Developing and commercializing Licensed
Products in accordance with its business, legal, medical and scientific
judgment, and in undertaking investigations and actions required to obtain
appropriate Regulatory Approvals necessary to market Licensed Products in the
Field in the Territory, such reasonable efforts and diligence to be in
accordance with the efforts and resources GENENTECH would use for a compound
owned by it or to which it has rights, which is of similar market potential at
a similar stage in development as the applicable Licensed Product, taking into
account the competitiveness of the marketplace, the proprietary position of the
Licensed Product, the relative potential safety and efficacy of the Licensed
Product, the regulatory requirements involved in its Development,
commercialization and Regulatory Approval,the cost of goods and availability of capacity to
manufacture and supply the Licensed Product at commercial scale, the
profitability of the applicable Licensed Product, and other relevant factors
including, without limitation, technical, legal, scientific or medical
factors.  In the event that GENENTECH
fails to use due diligence as required hereunder, then on a Licensed
Product-by-Licensed Product and country-by-country basis as to the Licensed
Product in the country in which GENENTECH has failed to use due diligence as
required 

 14
 

hereunder, IMMUNOGEN’s exclusive remedy shall be, in its sole discretion
(i) to terminate the licenses granted under Section 2.1 this Agreement for breach
under Section 7.2(a) below (including the notice and cure provisions therein)
or (ii) to convert the licenses granted under Section 2.1 of this Agreement
from exclusive licenses to non-exclusive licenses, in either case only as such
licenses apply to such Licensed Product in such country, which termination or
conversion, as the case may be, shall be effective upon expiration of the cure
period specified in 7.2(a) below provided that such failure remains uncured
upon such expiration.

3.2           Updates
and Reports; Exchanges of Adverse Event Information.

(a)           Updates
and Reports.  GENENTECH shall keep IMMUNOGEN informed of
the progress of GENENTECH’s efforts to Develop and commercialize Licensed
Products in the Field in the Territory as provided in this Section 3.2(a).  GENENTECH (or its Sublicensee) shall provide
IMMUNOGEN with brief written reports as provided herein no less frequently than
on each anniversary of the Effective Date during the Term (commencing with the
first anniversary of the Effective Date).  Such reports shall summarize GENENTECH’s
material efforts to Develop and commercialize all Licensed Products hereunder,
identify the Drug Approval Applications with respect to any Licensed Product
that GENENTECH and its Sublicensees have filed, sought or obtained in the prior
twelve (12)-month period, and any they reasonably expect to make, seek or
attempt to obtain in the following twelve (12)-month period.  In addition, GENENTECH (or its Sublicensee)
shall provide IMMUNOGEN with prompt written notice of the occurrence of any
event giving rise to an obligation to make a milestone payment to IMMUNOGEN
under Section 4.1, and shall provide IMMUNOGEN with prompt written notice of
the occurrence of the First Commercial Sale of any particular Licensed Product.
All such reports and notices shall be sent to the attention of IMMUNOGEN’s
designated representative, who shall be its Chief Executive Officer unless
IMMUNOGEN otherwise notifies GENENTECH.

(b)           Adverse
Events.  In addition to such reports, GENENTECH agrees
to provide IMMUNOGEN with Adverse Event information and product complaint
information relating to Licensed Products (but not relating to any other
products of GENENTECH, including any antibody that may be included in a
Licensed Product, to the extent that antibody is used in its “naked” form or in
connection with a different effector molecule) as compiled and prepared by
GENENTECH in the normal course of business in connection with the Development, 

 15
 

commercialization or sale of any Licensed Product, within time frames
consistent with reporting obligations under applicable laws and
regulations.  To the extent it could
reasonably apply or could reasonably be relevant to a Licensed Product,
IMMUNOGEN agrees to provide GENENTECH with Adverse Event and product complaint
information relating to any product containing any MAY Compound that is
compiled and prepared by IMMUNOGEN or any Third Party in the normal course of
business in connection with the development, commercialization or sale of any
such product, within time frames consistent with reporting obligations under
applicable laws and regulations; provided, however, that the
foregoing shall not require IMMUNOGEN to violate any agreements with or
confidentiality obligations owed to any Third Party.  GENENTECH shall provide its Adverse Event and
product complaint information hereunder to IMMUNOGEN’s designated
representative, who shall be its Chief Regulatory Officer unless IMMUNOGEN
otherwise notifies GENENTECH. IMMUNOGEN shall provide its Adverse Event and
product complaint information hereunder to GENENTECH’s designated
representative, who shall be the head of its Drug Safety group in GENENTECH’S
Medical Affairs Department unless GENENTECH otherwise notifies IMMUNOGEN.

(c)           Confidential
Information.  All reports, updates, Adverse Event, product
complaint and other information provided by one Party to the other Party under
this Agreement (including under this Section 3), shall be considered
Confidential Information of the disclosing Party, subject to the terms of Section
5.

3.3           Reasonable
Assistance by IMMUNOGEN.  In connection with the exclusive grant of
rights to GENENTECH under Section 2.1 above, and subject to the other terms of
this Agreement, IMMUNOGEN shall provide GENENTECH (and any Sublicensee of
GENENTECH with respect to all of GENENTECH’s license rights hereunder to make
or have made all Licensed Products or any particular Licensed Product(s)
throughout the Territory or in a particular geographic region of the Territory,
and/or all of GENENTECH’s license rights hereunder to Develop or commercialize
all Licensed Products or any particular Licensed Product(s) throughout the
Territory or in a particular geographic region of the Territory (in any case, a
“Material Sublicensee”)) such
information and materials comprising the Licensed Technology and/or Licensed
Patent Rights as GENENTECH (or its Material Sublicensee) may reasonably
request.  Without limiting the generality
of the foregoing, IMMUNOGEN shall 

 16
 

provide all of such technical assistance within IMMUNOGEN’s area of
expertise (or its subcontractors) concerning the Development and
commercialization of Licensed Products as may be reasonably requested by
GENENTECH (or its Material Sublicensee) from time to time during the Term,
provided that such technical assistance and expertise is within the scope of
the Licensed Technology and/or Licensed Patent Rights covered under this
Agreement.  Such technical assistance and
expertise shall include, but not be limited to, visits by IMMUNOGEN personnel
to GENENTECH and visits by GENENTECH to IMMUNOGEN (or its subcontractors), at
GENENTECH’s expense, at such times and for such periods of time as may be
reasonably acceptable to the Parties.  
Without limiting the generality of the foregoing, within [***] ([***])
days after GENENTECH’s reasonable written request, IMMUNOGEN shall deliver to
GENENTECH a list or description of the documents and information that embody
the Licensed Technology.  GENENTECH will
inform IMMUNOGEN which of those identified documents and information GENENTECH
believes are reasonably related to its exercise of the license rights under
this Agreement and, within [***] ([***]) days after that identification,
IMMUNOGEN shall deliver to GENENTECH a copy of those documents and other
information.

3.4           Collaboration Committee.

(a)            Mandate of Committee.  Promptly
after the Effective Date, the Parties shall form a “Collaboration Committee” to serve as a forum for
coordination and communication between the Parties with respect to activities
related to Licensed Products for which the Parties agree there is a need for
coordination and communication (including, without limitation, all process
science and process development work, formulation work, and quality control/
assurance work hereunder), and to assist GENENTECH in its exercise of its
rights to make or have made Licensed Products under this Agreement.  Within [***] ([***]) days after the Effective
Date, the Parties shall each nominate an equal number of representatives (which
shall be no less than two (2) each) for membership on the Collaboration
Committee.  Each Party may change its
representative(s) as it deems appropriate by notice to the other Party.  The input of the IMMUNOGEN representatives on
the Collaboration Committee shall be fully considered by the Collaboration
Committee; provided, however, that all decisions of the
Collaboration Committee shall be subject to final approval by GENENTECH.

(b)            Chair of Committee; Meetings.  The
Parties hereby agree that (i) the chair of the Collaboration Committee shall be
one of the GENENTECH representatives on the 

 17
 

Collaboration Committee, as designated by GENENTECH; provided, however,
that [***] the [***] [***] [***] [***] after the Effective Date, the
Collaboration Committee shall be [***] by a [***] [***] on the Collaboration
Committee (as designated by [***]) and an [***] [***] on the Collaboration
Committee (as designated by [***]); (ii) all decisions of the Collaboration
Committee shall be subject to the approval of the GENENTECH chair (including
[***] the [***] [***] there is a [***] [***] [***]); (iii) the Collaboration
Committee shall meet on a semi-annual basis or other schedule agreed upon by
the Parties, unless at least thirty (30) days in advance of any meeting the
chair (or co-chairs during the first twelve (12) months) of the Collaboration
Committee determine that there is no need for a meeting (in which instance, the
next Collaboration Committee meeting shall also be scheduled as agreed upon by
the Parties); (iv) the location of meetings of the Collaboration Committee
shall alternate between IMMUNOGEN’s offices in Massachusetts and GENENTECH’s
offices in California, unless otherwise agreed by the Parties and, as agreed
upon by the Parties, Collaboration Committee meetings may be face-to-face or
may be conducted through teleconferences and/or videoconferences.  In addition to its Collaboration Committee
representatives, each Party shall be entitled to have other employees attend
such meetings to present and participate, though not in a decision-making
capacity.  Each Party shall bear all
costs and expenses, including travel and lodging expense, that may be incurred
by its Collaboration Committee representatives or other of its attendees at
Collaboration Committee meetings, as a result of such meetings hereunder.  Minutes of each Collaboration Committee
meeting will be transcribed and issued to members of the Collaboration
Committee by the chair (or the GENENTECH co-chair, as the case may be) within
thirty (30) days after each meeting, and such minutes shall be reviewed and
modified as mutually required to obtain approval of such minutes promptly
thereafter.

3.5           Supply of
Preclinical Materials. 
During the Term of this Agreement, IMMUNOGEN shall supply to GENENTECH
(or its Material Sublicensee) with such quantities of Preclinical Materials as
may be reasonably requested by GENENTECH (or its Material Sublicensee) in order
to conduct all pre-clinical Development activities relating to Licensed
Products.  GENENTECH (or its Material
Sublicensee) shall order all amounts of Preclinical Materials, and IMMUNOGEN
shall deliver all such ordered amounts, in accordance with advance ordering
timeframes and delivery timeframes to be agreed upon by the Parties through the
Collaboration Committee.  IMMUNOGEN shall
use its commercially reasonable efforts to 

 18
 

deliver such
amounts of Preclinical Materials ordered in accordance with the foregoing
(including such agreed upon timeframes) in a timely manner.  In connection with any ordering of
Preclinical Materials by GENENTECH (or its Material Sublicensee), IMMUNOGEN
shall provide GENENTECH (or its Material Sublicensee) promptly with IMMUNOGEN’s
good faith estimate of the Fully Burdened Manufacturing Cost for manufacture
and supply of such Preclinical Materials. 
IMMUNOGEN’s price to supply Preclinical Materials to GENENTECH (or its
Material Sublicensee) shall equal [***]% of IMMUNOGEN’s Fully Burdened
Manufacturing Cost for such Preclinical Materials as approved by GENENTECH (or
its Material Sublicensee).  Nothing
herein shall preclude GENENTECH from making its own arrangements for
manufacture and supply of Preclinical Materials on its own or with Third
Parties, in exercise of its license rights under Section 2.1.  GENENTECH hereby agrees that (a) it shall not
use the Preclinical Materials in any human subject, (b) it shall use the
Preclinical Materials in compliance with all applicable federal, state and
local laws and regulations, and (c) it (as a matter of contract between itself
and IMMUNOGEN) shall assume all liability for damages that may arise from the
use, storage and disposal of any Preclinical Materials to the extent provided
pursuant to Section 9 below.  GENENTECH
shall be entitled to transfer Preclinical Materials to any Third Party under terms
obligating such Third Party not to transfer or use such Preclinical Materials
except in compliance with the foregoing clauses (a) and (b) of this Section
3.5.

3.6           Supply of
Clinical Materials. 
During the Term of this Agreement, IMMUNOGEN shall supply to GENENTECH
(or its Material Sublicensee) with such quantities of Clinical Materials as may
be reasonably requested by GENENTECH (or its Material Sublicensee) in order to
conduct all human clinical trials of Licensed Products through non-pivotal
Phase II Clinical Studies.  To the extent
GENENTECH requests IMMUNOGEN to manufacture Clinical Materials as provided in
the foregoing sentence, IMMUNOGEN and GENENTECH shall enter into separate
supply and quality agreements detailing the terms of supply for any Clinical
Materials that IMMUNOGEN is so requested to supply to GENENTECH for the purpose
of conducting clinical trials.  GENENTECH
(or its Material Sublicensee) shall order all amounts of Clinical Materials,
and IMMUNOGEN shall deliver all such ordered amounts, in accordance with
forecasting parameters, advance ordering timeframes and delivery timeframes to
be agreed upon by the Parties through the Collaboration Committee.  IMMUNOGEN shall use its commercially
reasonable efforts to deliver such amounts of Clinical 

 19
 

Materials ordered
in accordance with the foregoing (including such agreed upon timeframes) in a
timely manner.  In connection with any
ordering of Clinical Materials by GENENTECH (or its Material Sublicensee),
IMMUNOGEN shall provide GENENTECH (or its Material Sublicensee) promptly with
IMMUNOGEN’s good faith estimate of the Fully Burdened Manufacturing Cost for
manufacture and supply of such Clinical Materials.  IMMUNOGEN’s price to supply Clinical
Materials to GENENTECH (or its Material Sublicensee) shall equal [***]% of
IMMUNOGEN’S Fully Burdened Manufacturing Cost for such Clinical Materials as
approved by GENENTECH (or its Material Sublicensee).  Nothing herein shall preclude GENENTECH from
making its own arrangements for manufacture and supply of Clinical Materials on
its own or with Third Parties, in exercise of its license rights under Section
2.1. GENENTECH hereby agrees that (a) it shall use the Clinical Materials in
compliance with all applicable federal, state and local laws, and (b) it (as a
matter of contract between itself and IMMUNOGEN) shall [***] all [***] for
[***] that may arise from the [***] [***] and [***] of such Clinical Materials
to the extent provided pursuant to Section 9 below. GENENTECH shall be entitled
to transfer Clinical Materials to any Third Party under terms obligating such
Third Party not to transfer or use such Clinical Materials except in compliance
with the foregoing clause (a) of this Section 3.6.

3.7           Purchase
of Equipment.  If, during
the Term of this Agreement, IMMUNOGEN determines in good faith that it is
necessary or advisable to purchase equipment or instruments in order to perform
any of its obligations to manufacture Preclinical Materials and Clinical
Materials under Sections 3.5 or 3.6 of this Agreement, then IMMUNOGEN shall
provide the Collaboration Committee with written notice of such determination,
along with the estimated price for such purchase and quality parameters for the
equipment or instruments, for the Collaboration Committee’s approval of such
price and features.  Promptly after the
consummation of such purchase, assuming that the Collaboration Committee has
provided its approval hereunder, IMMUNOGEN shall provide GENENTECH with a copy
of the invoice or invoices reflecting such purchase, and GENENTECH shall
reimburse IMMUNOGEN for the purchase of all such approved equipment hereunder
within [***] ([***]) days of its receipt of such invoice from IMMUNOGEN; provided,
however, that no costs reimbursed by GENENTECH hereunder (or
depreciation of such purchased equipment or instruments) shall be includible or
included within the calculation of any Fully Burdened Manufacturing Costs under
this Agreement.

 20
 

4.  PAYMENTS
AND ROYALTIES

4.1           Milestone
Payments for Licensed Products.

4.1.1         Milestones.  In consideration of the grant of the license
by IMMUNOGEN hereunder, and subject to the other terms of this Agreement,
GENENTECH will make the following nonrefundable, noncreditable (except as
expressly provided in Section 4.1.2 below) payments to IMMUNOGEN, on the
payment terms in Section 4.5:

	
  [***] Milestones

  	
   

  	
  Milestone Payment

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Effective Date

  	
   

  	
  $

  	
  1 Million

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  [***] [***] for a [***] [***]

  	
   

  	
  $

  	
  [***] [***]

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  [***] of [***] [***]
 [***] [***] in [***] [***] for a

  [***] [***]

  	
   

  	
  $

  	
  [***] [***]

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  [***] of [***] of [***] [***]

  [***] [***] in [***] [***] for a [***]

  [***] or [***] [***] [***]

  [***] for a [***] [***]

  	
   

  	
  $

  	
  [***] [***]

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  [***] of [***] by the [***]

  for a [***] [***] for [***]

  [***]

  	
   

  	
  $

  	
  [***] [***]

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  [***] of an [***] or other [***] [***]

  [***] in the [***] [***] for a

  [***] [***] for [***] [***]

  	
   

  	
  $

  	
  [***] [***]

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  [***] of a [***] [***] [***] for a

  [***] [***] in [***] for [***]

  [***]

  	
   

  	
  $

  	
  [***] [***]

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  [***] of [***] by the [***] for a [***]

  [***] for [***] [***]

  	
   

  	
  $

  	
  [***] [***]

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  [***] of [***]
  by the [***] for a [***]

  [***] for a [***] [***]

  	
   

  	
  $

  	
  [***] [***]

  	
   

  

 

 21
 

 

	
  [***] Milestones

  	
   

  	
  Milestone Payment

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  [***] [***] [***] [***] of [***]

  [***] greater than $[***] [***]

  	
   

  	
  $

  	
  [***] [***]

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  [***] [***]
  [***] [***] of [***]

  [***] greater than $[***] [***]

  	
   

  	
  $

  	
  [***] [***]

  	
   

  

 

It is hereby
acknowledged and agreed that any milestone payment shall be made only once,
with respect to the first achievement of the relevant milestone for the first
Licensed Product, regardless of how many times such milestones are achieved by
Licensed Products and regardless of how many times a particular Licensed
Product achieves such milestones. GENENTECH shall notify IMMUNOGEN of the
achievement of milestones hereunder as provided in Section 3.2(a) above.

4.1.2        [***] of
[***] [***].  GENENTECH
shall be [***] to [***] its [***] [***] [***] (but not any [***] [***] [***])
[***] [***] [***] [***] to IMMUNOGEN only to the extent set forth in this
Section 4.1.2.  As to the Licensed
Product with respect to which [***] [***] [***] are owed to IMMUNOGEN under
this Section 4.1, GENENTECH shall be [***] to [***] [***] [***] ([***]%) of
each such [***] [***] made with respect to such Licensed Product hereunder
[***] [***] [***] to IMMUNOGEN hereunder with respect to such Licensed Product,
but (a) only if prior to the date of such [***] [***], GENENTECH (or its
Sublicensee) has modified such Licensed Product such that it would not (even in
the absence of the license under this Agreement) [***] a [***] [***] within the
Licensed Patent Rights in the United States (excluding any Patent Rights [***]
[***] by [***] and [***]), and (b) only if such modification was undertaken (i)
to address a [***] [***] or [***] with respect to such Licensed Product or its
Development, manufacture, use or sale, (ii) to obtain a [***] [***] in the
toxicity, safety or efficacy profile of such Licensed Product, or (iii) to
obtain a [***] [***] in the ability to make or have made such Licensed Product
(or any component thereof).

 22
 

4.2           Payment
of Royalties; Royalty Rates; Accounting for Royalties and Records.

4.2.1         Royalty Payments.  In consideration of the grant of the license
by IMMUNOGEN hereunder, and subject to the other terms of this Agreement
(including the remainder of this Section 4), commencing on the first date of
First Commercial Sale of Licensed Products in such country or jurisdiction in
the Territory, GENENTECH shall pay to IMMUNOGEN the following royalties based
on total Net Sales of all Licensed Products sold by GENENTECH and/or its
Sublicensees, on an incremental basis in each calendar year during the Term, at
the following rates in [***] of the [***] [***] [***] [***]:

For Net Sales of a Licensed Product

[***] [***] [***] in any Calendar Year

	
  During the Term:

  	
   

  	
  Royalty Rate (% of Net Sales)

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Above $[***] and
  up to $[***] [***]

  	
   

  	
  [***]

  	
  %

  
	
   

  	
   

  	
   

  	
   

  
	
  Above $[***] [***]

  	
   

  	
  [***]

  	
  %

  

 

For Net Sales of a
Licensed Product

[***] [***] [***] in any Calendar Year

	
  During the Term:

  	
   

  	
  Royalty Rate (% of Net Sales)

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Above $[***] and
  up to $[***] [***]

  	
   

  	
  [***]

  	
  %

  
	
   

  	
   

  	
   

  	
   

  
	
  Above $[***] [***]

  	
   

  	
  [***]

  	
  %

  

 

By way of example
only, if during the Term a Licensed Product achieved total Net Sales in a given
calendar of $[***] [***], the applicable royalty rate would be [***]% of Net
Sales for Net Sales up to $[***] [***], and [***]% of Net Sales for Net Sales
over $[***] [***].

4.2.2        Third
Party Royalty Offset.  Subject to the other terms of this
Agreement, on a country-by-country basis, the royalties otherwise due and
payable by GENENTECH under Section 4.2.1 above (but not the royalties otherwise
due and payable by GENENTECH under Section 4.2.3(a) or (b) below) shall be
reduced as provided in this Section 4.2.2:

(a)           GENENTECH Process
Development.  Consistent with
GENENTECH’S due diligence obligations under this Agreement, GENENTECH agrees to
exercise due diligence to attempt to Develop a commercially viable
manufacturing process relating to the manufacture and supply of Licensed
Products.  For purposes of this Agreement,
GENENTECH shall 

 23

determine in good
faith the commercial viability of any such manufacturing process that is
Developed hereunder, taking into account, without limitation, the following
factors relevant thereto:  the
consistency and reproducibility of the process itself; the consistency,
reproducibility, safety and efficacy of the resulting conjugated Licensed
Products; any regulatory issues; the availability of capacity; the cost of
goods and other components of Fully Burdened Manufacturing Cost as applied to
such process and to the overall manufacture and supply of Licensed Products;
the overall profitability of the Licensed Products; and the ability to produce
at commercial scale quantities.

(b)           Partial Offset.  If GENENTECH is not able to Develop such a
commercially viable manufacturing process after exercising due diligence as
required hereunder, GENENTECH may elect to license a manufacturing process from
a Third Party, and in that event GENENTECH shall be entitled to offset up to
[***] percent ([***]%) of any Third Party Payments it makes in connection with
any license providing rights to any such manufacturing process against the
royalties due to IMMUNOGEN pursuant to Section 4.2.1 above, subject to the
clause (d) of this Section 4.2.2. 
GENENTECH shall not be entitled to the offset under this clause (b) if
it fails to exercise due diligence as required hereunder.

(c)           Full Offset.  If GENENTECH determines in good faith that it
is necessary, in order to exploit the license granted to it under Section 2.1
of this Agreement in any country, to make royalty payments to any Third Party (“Third Party Payments”) under any
license agreement that GENENTECH determines, in good faith, is necessary in
connection with the Development, manufacture, use or sale of any MAY Compound,
the linker of any MAY Compound to a [***] Antibody, and/or the conjugation of a
[***] Antibody to any MAY Compound (including, without limitation, DM1) as part
of any Licensed Product, then in any such case the royalties due to IMMUNOGEN
pursuant to Section 4.2.1 above for such Licensed Product shall be reduced by
[***] [***] [***] of such Third Party Payments, subject to the limitations set
forth in clause (d) of this Section 4.2.2. 
If GENENTECH elects to take any such license agreement as described
herein without having first determined that it is necessary (as determined by
GENENTECH in good faith) in order to exploit the license granted to it under
Section 2.1 of this Agreement in any country, then GENENTECH shall not be
entitled to the offset under this clause (c). If IMMUNOGEN in good faith
disputes GENENTECH’s 

 24
 

determination
hereunder, the Parties shall submit the matter promptly to IMMUNOGEN’S Chief
Executive Officer and a designated officer of GENENTECH with settlement
authority.

(d)           Limitations on
Offsets.  The royalty offset in
Section 4.2.2(c) above is separate and cumulative to the royalty offset under
Section 4.2.2(b) above, but each is subject to the limitations set forth in
this Section 4.2.2(d) as follows.  No
royalty reductions under this Section 4.2.2, alone or in the aggregate, shall
reduce the royalty (if any) for any Licensed Product in any country payable
pursuant to Section 4.2.1 aboveby more than
[***] percent ([***]%) of the royalties otherwise owed to IMMUNOGEN thereunder,
nor reduce such royalty for such Licensed Product in any such country to less
than [***] percent ([***]%) of Net Sales of such Licensed Product in such
country.

4.2.3        [***]
[***] [***] and [***] [***].

(a)           Notwithstanding
anything set forth in [***] [***] above, the [***] [***] set forth therein
shall apply, on a [***] and [***] [***] [***] basis, to [***] [***] of [***]
[***] [***] [***] [***] [***] [***] or its [***], [***] or [***] in [***] [***]
would, [***] for the [***] under this Agreement, [***] a [***] [***] [***] the
[***] [***] [***] (excluding any [***] [***] [***] [***] by [***] and
[***]).  Subject to the other terms of
this Agreement (except for Section 4.2.2 above, which shall not apply), on a
[***] and [***] [***] [***] [***] where and as of when the [***] [***] under
Section 4.2.1 [***] [***] [***] as a [***] of this Section 4.2.3, GENENTECH
shall [***] to IMMUNOGEN a [***] [***] to [***] [***] ([***]%) of [***] [***]
[***] of [***] [***] [***] [***] by [***] and/or its [***] in [***] [***].

(b)           [***] [***].  Notwithstanding anything set forth in [***]
[***] above, the [***] [***] set forth in [***] [***] above shall no longer
apply, on a [***] basis, on and after the [***] on which any [***] [***] [***]
[***] [***] to [***] and [***] in a [***] any [***] [***].  Subject to the other terms of this Agreement
(except for [***] [***], which shall not apply), on a [***] basis where the
[***] [***] under [***] do not apply as a result of this [***],  [***] on the [***] of such [***] [***] of
[***] [***] [***] in such [***], [***] shall [***] and [***] to [***] a [***]
equal to [***] [***] ([***]%) of [***] [***] [***] of all [***] [***] [***] by
[***] and/or its [***] in [***] [***]; provided, however, that if the [***]
[***] is [***] from the [***] in [***] [***], then this [***] shall no longer
apply and [***] shall [***] [***] [***] the [***] [***] set forth in [***]
[***] on a [***] basis [***] on the [***] of [***] [***].

 25
 

4.2.4        Combination
Products.  In determining
Net Sales of any Combination Products under this Agreement, Net Sales shall
first be calculated in accordance with the definition of “Net Sales” above,
then multiplied by the percentage value of the Licensed Product contained in
the Combination Product, such percentage value being the quotient obtained by
dividing the current market price of the Licensed Product by the sum of the
separate current market price of the Licensed Product and other ingredients
which are therapeutically active contained in the Combination Product.  The current market price of each
therapeutically active ingredient and of the Licensed Product shall be for a
quantity comparable to that contained in the Combination Product and of the
same class, purity and potency.  When no
current market price is available for any therapeutically active ingredient or
for the Licensed Product, GENENTECH shall calculate in good faith a
hypothetical market price with respect to the Combination Product, allocating
the same proportions of costs, overhead and profit as are then allocated to all
similar substances then being made and marketed by GENENTECH and having an
ascertainable market price; provided, however, that if IMMUNOGEN
in good faith disputes GENENTECH’s calculation, the Parties shall submit the
matter promptly to IMMUNOGEN’S Chief Executive Officer and a designated officer
of GENENTECH with settlement authority.

4.3           One
Royalty.  Only one
royalty, calculated at the highest applicable royalty rate under this Section
4, shall be payable to IMMUNOGEN hereunder for each sale of a Licensed Product.

4.4           Royalty
Term. GENENTECH shall pay royalties with respect to each
Licensed Product on a country-by-country and Licensed Product-by-Licensed
Product basis until the later of (a) ten (10) years from the First Commercial
Sale of such Licensed Product in such country and (b) the expiration of the
last to expire Valid Claim of the Licensed Patent Rights covering the Licensed
Product in such country. Following such royalty term, GENENTECH shall
have a fully paid-up, irrevocable, freely transferable and sublicensable
license in such country under the relevant Licensed Patent Rights and Licensed
Technology, to Develop, have Developed, make, have made, use, have used, sell,
have sold, offer for sale, import and have imported such Licensed Product in
such country.

4.5           Payment
Terms.

(a)           Payment of
Milestones; Payment of Royalties; Royalty Reports.  All [***] Milestone payments shall be made
within [***] ([***]) days after the first achievement of each 

 26
 

of the [***]
Milestones described above.  All [***]
Milestones payments shall be paid no later than the [***] of the [***] [***]
[***] of the [***] [***] following the [***] [***] in which the applicable
[***] Milestone is achieved, including in any circumstance in which [***] [***]
Milestones are achieved in the [***] [***] [***].  Subject to the other terms of this Agreement
(including Section 4.1 above), GENENTECH shall make any milestone payments owed
to IMMUNOGEN hereunder in United States Dollars, using the wire transfer
provisions of this Section 4.4.  Subject
to the other terms of this Agreement (including Sections 4.2, 4.3 and 4.4
above), GENENTECH shall make any royalty payments owed to IMMUNOGEN in United
States Dollars, quarterly within [***] ([***]) days following the end of each
calendar quarter for which such royalties are deemed to occur (as provided in
the next sentence), using the wire transfer provisions of this Section
4.5.  For purposes of determining when a
sale of any Licensed Product occurs under this Agreement, the sale shall be
deemed to occur on the earlier of (i) the date the Licensed Product is [***] or
(ii) the date of the [***] [***] the [***] of the Licensed Product.  Each royalty payment shall be accompanied by
a report for each country in the Territory in which sales of Licensed Products
occurred in the calendar quarter covered by such statement, specifying:  the gross sales (if available) and Net Sales
in each country’s currency; the applicable royalty rate under this Agreement;
the royalties payable in each country’s currency, including an accounting of
deductions taken in the calculation of Net Sales; the applicable exchange rate
to convert from each country’s currency to United States Dollars under this
Section 4.5; and the royalties payable in United States Dollars.

(b)           Foreign Currency
Exchange.  All royalties shall be
payable in full in the United States in United States Dollars, regardless of
the countries in which sales are made. For the purpose of computing Net Sales
for Licensed Products sold in any currency other than United States Dollars,
the quarterly royalty payment will be calculated as follows:

(A/B) x C = United States Dollars royalty payment on
foreign current sales, where

A = foreign current “Net Sales” (as defined above) per
quarter;

B = foreign exchange conversion rate, expressed in
local currency per United States Dollar (using as the applicable foreign
exchange rate the average of the rate published in the [***] [***] of the [***]
[***] [***], [***] [***] [***] [***] [***] [***] [***], for the [***] [***]
[***] of the calendar quarter); and

C = the royalty
rate applicable to such Net Sales under this Agreement.

 27
 

(c)           Tax Withholding;
Restrictions on Payment.   All payments hereunder shall be made free and
clear of any taxes, duties, levies, fees or charges, except for withholding
taxes (to the extent applicable). 
GENENTECH shall make any applicable withholding payments due on behalf
of IMMUNOGEN and shall promptly provide IMMUNOGEN with written documentation of
any such payment sufficient to satisfy the requirements of the United States
Internal Revenue Service relating to an application by IMMUNOGEN for a foreign
tax credit for such payment.  If by law,
regulations or fiscal policy of a particular country in the Territory, remittance
of royalties in United States Dollars is restricted or forbidden, written
notice thereof shall promptly be given to IMMUNOGEN, and payment of the royalty
shall be made by the deposit thereof in local currency to the credit of
IMMUNOGEN in a recognized banking institution designated by IMMUNOGEN by
written notice to GENENTECH.  When in any
country in the Territory the law or regulations prohibit both the transmittal
and the deposit of royalties on sales in such country, royalty payments shall
be suspended for as long a such prohibition is in effect and as soon as such
prohibition ceases to be in effect, all royalties that GENENTECH would have
been under an obligation to transmit or deposit but for the prohibition shall
forthwith be deposited or transmitted, to the extent allowable.

(d)           Wire Transfers.  All payments hereunder shall be made to
IMMUNOGEN by bank wire transfer in immediately available funds to the account
designated by IMMUNOGEN by written notice to GENENTECH from time to time.

4.6           Overdue
Royalties.  Subject to the
other terms of this Agreement, royalties not paid within the time period set
forth in this Section 4 shall bear interest at a rate of [***] percent ([***]%)
per month from the due date until paid in full.

4.7           Records
Retention; Review.

(a)           Royalties.  Commencing as of the date of First Commercial
Sale of the first Licensed Product, GENENTECH and its Sublicensees shall keep
for at least [***] ([***]) years from the end of the calendar year to which
they pertain complete and accurate records of sales by GENENTECH or its
Sublicensees, as the case may be, of each Licensed Product, in sufficient
detail to allow the accuracy of the royalties to be confirmed.

(b)           Fully Burdened
Manufacturing Costs.  Commencing as
of the Effective Date, IMMUNOGEN shall keep for at least [***] ([***]) years
following the end of the calendar year to which they pertain complete and
accurate records of all of IMMUNOGEN’s Fully 

 28
 

Burdened Manufacturing
Costs for Preclinical Materials and Clinical Materials supplied to GENENTECH
(or its Sublicensee) hereunder, in sufficient detail to allow the accuracy of
the Fully Burdened Manufacturing Costs to be confirmed.

(c)           Review.  Subject to the other terms of this Section
4.7(c), at the request of either Party, upon at least [***] ([***]) business
days’ prior written notice from the requesting Party, and at the expense of the
requesting Party (except as otherwise provided herein), the other Party shall
permit an independent certified public accountant reasonably selected by the
requesting Party and reasonably acceptable to the other Party to inspect
(during regular business hours) the relevant records required to be maintained
by the other Party under this Section 4.7. 
At IMMUNOGEN’s request (which shall not be made more frequently than
once per year during the Term), the accountant shall be entitled to review the
then-preceding [***] ([***]) years of GENENTECH’s records under this Section
4.7 for purposes of verifying GENENTECH’s royalty calculations. At GENENTECH’s
request (which shall not be made more frequently than once per year during the
Term), the accountant shall be entitled to review the then-preceding [***]
([***]) years of IMMUNOGEN’s records under this Section 4.7 for purposes of
verifying IMMUNOGEN’s Fully Burdened Manufacturing Cost calculations. In every
case the accountant must have previously entered into a confidentiality
agreement with both Parties substantially similar to the provisions of Section
4 and limiting the disclosure and use of such information by such accountant to
authorized representatives of the Parties and the purposes germane to this
Section 4.7.  Results of any such review
shall be made available to both Parties and shall be binding on both
Parties.  Each Party agrees to treat the
results of any such accountant’s review of the other Party’s records under this
Section 4.7 as Confidential Information of the other Party subject to the terms
of Section 5.  If any review reveals a
deficiency in the calculation of royalties resulting from any underpayment by
GENENTECH, GENENTECH shall promptly pay IMMUNOGEN the amount remaining to be
paid (plus interest thereon at the rate provided in Section 4.6 above), and if
such underpayment is by [***] percent ([***]%) or more, GENENTECH shall pay all
costs and expenses of the review.  If any
review reveals a deficiency in the calculation of Fully Burdened Manufacturing
Costs resulting from any overpayment by GENENTECH, IMMUNOGEN shall promptly
refund GENENTECH the amount of any such overpayment (plus interest thereon at
the rate provided in Section 4.6 above), and if such 

 29
 

overpayment is by [***]
percent ([***]%) or more, IMMUNOGEN shall pay all costs and expenses of the
review.

5. 
TREATMENT OF CONFIDENTIAL INFORMATION

5.1           Confidential
Information.  During the
Term, in the course of performance of this Agreement, each Party may disclose
to the other Party proprietary technical and business information of the
disclosing Party, including techniques, data, inventions, practices, methods,
knowledge, know-how, test data and results (including from pre-clinical and/or
human clinical testing), analytical and quality control data, cost, sales,
manufacturing, patent data and any other information disclosed hereunder.  Such information of the disclosing Party
hereunder, if so identified in writing by the disclosing Party to the receiving
Party either pursuant to this Section 5.1 or otherwise upon disclosure to the
receiving Party, shall be considered “Confidential Information” of the
disclosing Party.  Each Party agrees that
it will take the same commercially reasonable steps to protect the
confidentiality of other Party’s Confidential Information as it takes to
protect its own proprietary and confidential information. For a period of [***]
([***]) years after the receipt of any such Confidential Information from the
disclosing Party hereunder, subject to the terms of this Section 5, the
receiving Party shall keep confidential and not disclose (by publication or
otherwise) such Confidential Information of the other Party, and shall not use,
publish or otherwise disclose Confidential Information of the other Party for
any purpose other than those contemplated by this Agreement (including as
reasonably necessary to exercise any rights or perform any obligations under
this Agreement). Notwithstanding the foregoing, it is understood and agreed
that the receiving Party’s obligations of confidentiality and non-use herein
shall not apply to the extent that it can be established by competent written
records that any such information:

(a)           is, at the time of
disclosure by the disclosing Party hereunder, or thereafter becomes, a part of
the public domain or publicly known or available, other than through any act or
omission of the receiving Party in breach of its obligations under this Section
5; or

(b)           was known to the receiving
Party at the time of disclosure to it by the disclosing Party; or

(c)           is, at the time of
disclosure by the disclosing Party hereunder, or thereafter becomes, known to
the receiving Party from a source that had a lawful right to disclose such
information to others; or

 30
 

(d)           was independently
developed by the receiving Party without use or reference to any Confidential
Information of the disclosing Party.

5.2           Permitted
Disclosures; Publications.

(a)           Permitted
Disclosures.  Each Party shall be
entitled to disclose Confidential Information of the other Party to employees
of the receiving Party, provided that such employees are already bound by
obligations of confidentiality to their employer, and also to Affiliates,
consultants, agents and Third Parties for any purpose provided for in this
Agreement, provided that any such Affiliate, consultant, agent or other Third
Party has first agreed in writing to confidentiality restrictions and
obligations at least as protective as this Section 5, in each case for any
purpose contemplated by this Agreement (including as reasonably necessary to
exercise any rights or perform any obligations under this Agreement).

(b)           Review of
Publications.  Each Party shall
consult with the other Party prior to the submission of any manuscript for
publication if the publication will contain any Confidential Information of the
other Party, unless the applicable laws and regulations prohibit such
consultation.  Such consultation shall
include providing a copy of the proposed manuscript to the other Party at least
[***] ([***]) days prior to the proposed date of submission to a publisher,
incorporating appropriate changes proposed by the other Party regarding its
Confidential Information into the manuscript submission and deleting all Confidential
Information of the other Party as it may request; provided, however,
that the other Party’s review hereunder shall be deemed completed at the end of
such [***] ([***])-day period.

(c)           Other Permitted
Disclosures.  Notwithstanding the
foregoing, Confidential Information of either Party may be disclosed by the
other Party to the extent such disclosure is reasonably necessary for filing or
prosecuting patent applications or maintaining patents, prosecuting or
defending litigation, enforcing rights and/or obligations under this Agreement,
complying with applicable laws, regulations or court order or conducting
pre-clinical or human clinical testing of Licensed Products; provided, that,
if a Party is required by applicable law, regulation or court order to make
such disclosure of the other Party’s Confidential Information, [***] of such
other Party’s Confidential Information required to be disclosed.

 31
 

5.3           Use of
Names; Press Releases.

(a)           Use of Names.  A Party may not use the name of the other
Party (or any trademarks or tradenames of the other Party) in any press release
or any other publicity or advertising without the prior written consent of the
other Party.

(b)           Press Releases.  Except as provided in Sections 5.1 and 5.2
above, a Party may not issue a press release or otherwise publicize or disclose
any information related to this Agreement or the terms or conditions hereof,
without the prior written consent of the other Party.  Once any written text is approved for
disclosure by both Parties as provided herein, either Party may make subsequent
or repeated public disclosures of the contents thereof [***] the [***] [***] of
the other Party, so long as such subsequent disclosures continue to be correct
and presented in appropriate context. 
Nothing in the foregoing, however, shall prohibit a Party from making
such disclosures regarding this Agreement or the terms thereof to the extent
deemed necessary under applicable federal or state securities laws or any rule
or regulation of any nationally recognized securities exchange, subject to the
terms of Section 5.2 above regarding disclosures required to comply with
applicable laws, regulations or court order.

5.4           Integration;
Survival.  As to the subject
matter of this Agreement, this Section 5 supersedes any confidential disclosure
agreements between the Parties.  Section
5 shall survive termination or expiration of this Agreement.

6. 
PROVISIONS CONCERNING THE FILING, PROSECUTION AND

MAINTENANCE OF PATENT RIGHTS

6.1           Ownership of Intellectual Property.

(a)           Sole
Inventions.  IMMUNOGEN shall own all
inventions (whether or not patentable) made during the course of and pursuant
to activities carried out under this Agreement solely by employees of or agents
or others obligated to assign inventions to IMMUNOGEN. GENENTECH shall own all
inventions (whether or not patentable) made during the course of and pursuant
to activities carried out under this Agreement solely by employees of or agents
or others obligated to assign inventions to GENENTECH.  The Party solely owning any inventions
hereunder shall be the sole owner of any inventorship certificate(s), patent
application(s) and patent(s) thereon. All determinations of inventive
contribution shall be as determined by United States laws of inventorship.  Subject to the terms of Section 6.2 below
relating to IMMUNOGEN sole inventions, the Party solely owning an invention
hereunder will be solely responsible, at its 

 32
 

own
cost and expense and in its sole discretion, for the filing, prosecution and
maintenance of any inventorship certificate(s), patent application(s) and
patent(s) thereon.

(b)           Joint Inventions.  Inventions made during the course of and
pursuant to activities carried out under this Agreement jointly by employees of
or agents of or others obligated to assign inventions to IMMUNOGEN and
GENENTECH shall be jointly owned by IMMUNOGEN and GENENTECH. All determinations
of inventive contribution shall be as determined by United States laws of
inventorship.  The Parties shall also
jointly own any inventorship certificate(s), patent application(s) and
patent(s) on any joint inventions hereunder. The terms of Section 6.2 below
relating to joint inventions shall apply to any inventorship certificate(s),
patent application(s) and patent(s) thereon.

(c)           Disclosure.  As regards any IMMUNOGEN sole or joint
invention hereunder or any GENENTECH joint inventions hereunder, each Party
shall provide to the other Party any invention disclosure made during the
course of performance of this Agreement and relating to activities carried out
hereunder within [***] ([***]) days after such Party receives such disclosure
from its employees, agents or others obligated to assign inventions to such
Party.

(d)           Other Agreements.  An invention made during the course of and
pursuant to other agreements between the Parties, including agreements related
to process development or manufacturing, will be considered to be made under
that separate agreement and not under this Agreement.

6.2           Patent
Filing, Prosecution and Maintenance.

(a)           Sole IMMUNOGEN Inventions.
 Subject
to the other terms of this Section 6.2(a) and Section 6.2(b), IMMUNOGEN shall
have the right to prepare, file, prosecute, obtain and maintain, at its sole
cost and expense, all Licensed Patent Rights. IMMUNOGEN agrees that with
respect to such Licensed Patent Rights licensed exclusively to GENENTECH
hereunder, (i) any such preparation, filing, prosecution and maintenance shall
be conducted with commercially reasonable diligence by IMMUNOGEN, using patent
counsel selected by IMMUNOGEN and reasonably acceptable to GENENTECH. In any
case IMMUNOGEN (i) will provide GENENTECH with a copy of any proposed patent
application covering any such Licensed Patent Rights for review and comment
reasonably in advance of filing (which shall under no circumstances be in
excess of [***] ([***]) days), and (ii) will keep GENENTECH reasonably informed
of the status of such filing, prosecution and maintenance, including, without
limitation, 

 33
 

(A) by providing
GENENTECH with copies of all communications received from or filed in patent
office(s) with respect to such filing, and (B) by providing GENENTECH, a
reasonable time prior to taking or failing to take any action that would affect
the scope or validity of any such of any such filing (including the substantially
narrowing, cancellation or abandonment of any claim(s) without retaining the
right to pursue such subject matter in a separate application, or the failure
to file or perfect the filing of any claim(s) in any country), with prior
written notice of such proposed action or inaction so that GENENTECH has a
reasonable opportunity to review and comment. Any application for extension of
Licensed Patent Rights in the Territory due to delays in regulatory review with
respect to any Licensed Product shall be filed only upon mutual written
agreement of the Parties.  If IMMUNOGEN
fails to undertake the filing(s) of any patent application with respect to any
invention under such Licensed Patent Rights within [***] ([***]) days after
receipt of written notice from GENENTECH that GENENTECH believes filing of such
an application by IMMUNOGEN is appropriate, GENENTECH may undertake such
filing(s) at its own expense, in which case IMMUNOGEN will assign all of its
rights to such invention to GENENTECH and any subsequently issued patent
thereon will be owned solely by GENENTECH.

(b)           Joint Inventions.
As regards any joint invention by the Parties hereunder, the Party from whom
the majority of the data underlying any such joint invention arose (the “controlling
Party”) will have the first right, but not the obligation, to undertake
filing(s), prosecution and maintenance of inventorship certificate(s), patent
application(s) and patent(s) thereon.  In
connection with any such filing(s), the filing Party will use patent counsel
mutually acceptable to each Party (in its reasonable determination) and the
Parties will, prior to filing of the patent application, agree on mutually
acceptable sharing of the costs and expenses of such filing(s), prosecution and
maintenance.  In any case the filing
Party (i) will provide the non-controlling Party with a copy of any such
proposed patent application for review and comment reasonably in advance of
filing, and (ii) will keep the non-controlling Party reasonably informed of the
status of such filing, prosecution and maintenance, including, without
limitation, (A) by providing the non-controlling Party with copies of all
communications received from or filed in patent office(s) with respect to such
filing, and (B) by providing the non-controlling Party, a reasonable time prior
to taking or failing to take any action that would affect the scope or validity
of any such filing (including the substantially narrowing, cancellation or
abandonment of any 

 34
 

claim(s) without
retaining the right to pursue such subject matter in a separate application, or
the failure to file or perfect the filing of any claim(s) in any country), with
prior written notice of such proposed action or inaction so that the
non-controlling Party has a reasonable opportunity to review and comment. If
the Party from whom the majority of the data underlying any such joint
invention fails to undertake the filing(s) of any such patent application with
respect to any such invention within [***] ([***]) days after receipt of
written notice from the other Party that the other Party believes filing(s) of
such an application by such Party is appropriate, such other Party may
undertake such filing(s) at its own expense, in which case the non-filing Party
will assign all of its rights to such joint invention to the filing Party and
any subsequently issued patent thereon will be owned solely by the filing
Party.  Either Party may assign its
rights hereunder to any jointly owned invention, inventorship certificate,
patent application or patent to the other Party, who will then have the right,
in its discretion, to assume the filing, prosecution and/or maintenance thereof
as the sole owner thereof and at its sole cost and expense.

6.3           Notice of
Infringement.  If, during
the Term of this Agreement, either Party learns of any actual, alleged or
threatened infringement by a Third Party of any Licensed Patent Rights under
this Agreement, such Party shall promptly notify the other Party and shall
provide such other Party with available evidence of such infringement.

6.4           Infringement
of Patent Rights.

(a)           Sole IMMUNOGEN
Inventions.  IMMUNOGEN shall have the
first right (but not the obligation), at its own expense, to bring suit (or
take other appropriate legal action) against any actual, alleged or threatened
infringement of the Licensed Patent Rights solely owned by IMMUNOGEN under this
Agreement, with legal counsel of its own choice.  GENENTECH shall have the right, at its own
expense, to be represented in any such action by IMMUNOGEN by counsel of
GENENTECH’s own choice; provided, however, that under no
circumstances shall the foregoing affect the right of IMMUNOGEN to control the
suit as described in the first sentence of this Section 6.4(a).  If IMMUNOGEN does not file any action or
proceeding against such infringement within [***] [***] [***] ([***]) days
after the later of (i) IMMUNOGEN’s notice to GENENTECH under Section 6.3 above,
(ii) GENENTECH’s notice to IMMUNOGEN under Section 6.3 above, or (iii) a
written request from GENENTECH to take action with respect to such
infringement, then GENENTECH shall have the right (but not the obligation), at
its own expense, to bring suit (or take other appropriate legal action) against

 35
 

such actual,
alleged or threatened infringement, with legal counsel of its own choice.
IMMUNOGEN shall have the right, at its own expense, to be represented in any
such action by GENENTECH by counsel of IMMUNOGEN’s own choice.  Any damages, monetary awards or other amounts
recovered, whether by judgment or settlement, pursuant to any suit, proceeding
or other legal action taken under this Section 6.4(a), shall first be applied
to reimburse the costs and expenses (including attorneys’ fees) of the Party
bringing such suit or proceeding or taking such other legal action, then to the
costs and expenses (including attorneys’ fees), if any, of the other
Party.  Any amounts remaining shall be
allocated as follows: (A) if GENENTECH is the Party bringing such suit or
proceeding or taking such other legal action, [***] [***] percent ([***]%) to
GENENTECH and [***] [***] percent ([***]%) to IMMUNOGEN,  (B) if IMMUNOGEN is the Party bringing such
suit or proceeding or taking such other legal action, [***] [***] percent
([***]%) to IMMUNOGEN and (C) if the suit is brought jointly, [***] percent
([***]%) to each Party.  If a Party
brings any such action or proceeding hereunder, the other Party agrees to be
joined as party plaintiff if necessary to prosecute such action or proceeding,
and to give the Party bringing such action or proceeding reasonable assistance
and authority to file and prosecute the suit; provided, however,
that neither Party shall be required to transfer any right, title or interest
in or to any property to the other Party or any Third Party to confer standing
on a Party hereunder.

(b)           Infringement of Joint
Inventions.  As to the any actual,
alleged or threatened infringement of any Patent Rights jointly owned by
IMMUNOGEN and GENENTECH under this Agreement, including actions against any
alleged infringer, the Parties hereto will consult with each other in good
faith regarding the best manner in which to proceed.  The Parties agree as a basic principle that
in the case of such actions against infringers, the expenses incurred and
damages awarded shall be for the account of the Party or Parties who take such
actions to the extent of their financial participation therein.

6.5           Third
Party Patents.  If any
Third Party claims that a patent it owns or controls claims any aspect of a
Licensed Product or its manufacture, use or sale, the Party with notice of such
claim shall notify the other Party promptly, and the Parties shall as soon as
practicable thereafter discuss in good faith regarding the best response.

6.6           Trademarks.  All Licensed Products shall be sold under one
(1) or more trademarks and tradenames selected and owned by GENENTECH (or its
Sublicensee) in the 

 36
 

Territory.  GENENTECH (or its Sublicensee) shall control
the preparation, prosecution and maintenance of applications related to all
such trademarks and tradenames in the Territory, at its sole cost and expense
and at its sole discretion.  IMMUNOGEN
shall notify GENENTECH promptly upon learning of any actual, alleged or
threatened infringement of a trademark or tradename applicable to a Licensed
Product in the Territory, or of any unfair trade practices, trade dress
imitation, passing off of counterfeit goods, or like offenses in the
Territory.  All of the costs, expenses
and legal fees in bringing, maintaining and prosecuting any action to maintain,
protect or defend any owned by GENENTECH (or its Sublicensee) hereunder, and
any damages or other recovery, shall be GENENTECH’s (or its Sublicensee’s) sole
responsibility, and taken in its sole discretion.

6.7           Integration; Survival.  This Section 6 supersedes any provisions to
the contrary in the HER2 License Agreement and that certain [***] Process
Development Agreement by and between the Parties dated as of [***] [***],
[***].  This Section 6 shall survive
termination or expiration of this Agreement.

7.  TERM AND
TERMINATION

7.1           Term; Expiration. The term of this
Agreement (“Term”) shall expire upon the
expiration of the final royalty payment obligation under Section 4.4
above.  Upon such expiration of the Term
of this Agreement, GENENTECH shall have a fully paid-up, irrevocable, freely
transferable and sublicensable license in the Territory under the Licensed
Patent Rights and Licensed Technology, to Develop, have Developed, make, have
made, use, have used, sell, have sold, offer for sale, import and have imported
any and all Licensed Products in the Territory.

7.2.          Termination.  Subject to the other terms of this Agreement:

(a)           Breach. A Party
may terminate this Agreement and the licenses granted herein, effective upon
written notice to the other Party, upon any breach by the other Party of any
material obligation or condition of this Agreement, which material breach
remains uncured [***] ([***]) days after the non-breaching Party gives a first
written notice to the other Party describing such breach in reasonable detail; provided,
however, that in the event of a [***] [***] by [***] under this
Agreement, the [***] [***] [***] shall be [***] [***] [***] (in lieu of [***]
[***] [***]) but the other terms of this Section 7.2(a) shall apply to
termination in connection 

 37
 

with any such
payment breach.  Notwithstanding anything
set forth herein, if the asserted material breach is cured or shown to be non-existent
within the applicable cure period, the first notice of breach hereunder shall
be deemed automatically withdrawn and of no effect.

(b)           Bankruptcy. A
Party may terminate this Agreement, effective on written notice to the other
Party, in the event the other Party shall have become insolvent or bankrupt, or
shall have made an assignment for the benefit of its creditors, or there shall
have been appointed a trustee or receiver of the other Party or for all or a
substantial part of its property, or any case or proceeding shall have been
commenced or other action taken by or against the other Party in bankruptcy or
seeking reorganization, liquidation, dissolution, winding-up, arrangement,
composition or readjustment of its debts or any other relief under any
bankruptcy, insolvency, reorganization or other similar act or law of any
jurisdiction now or hereafter in effect, or there shall have been issued a
warrant of attachment, execution, distraint or similar process against any
substantial part of the property of the other Party, and any such foregoing
events shall have continued for [***] ([***]) days undismissed, unbonded and
undischarged.  Furthermore, all rights
and licenses granted under this Agreement are, and shall be deemed to be, for
purposes of Section 365(n) of the United States Bankruptcy Code, licenses of
rights to “intellectual property” as defined under Section 101(56) of the
United States Bankruptcy Code.  The
Parties agree that in the event of the commencement of a bankruptcy proceeding
by or against one Party hereunder under the United States Bankruptcy Code, the
other Party shall be entitled to complete access to any such intellectual
property, and all embodiments of such intellectual property, pertaining to the
rights granted in the licenses hereunder of the Party by or against whom a
bankruptcy proceeding has been commenced, subject, however, to payment of the
milestone amounts and royalties set forth in this Agreement through the
effective date of any termination hereunder.

(c)           Unilateral
Termination by GENENTECH.  GENENTECH, in its sole discretion, at any
time may terminate this Agreement, and the rights and obligations hereunder, or
may remove any Licensed Product and the licenses related thereto from operation
of this Agreement, in any case effective [***] ([***]) days after written
notice thereof to IMMUNOGEN.  In the
event of any termination under this Section 7.2(c) only as to a Licensed
Product, the consequences set forth in Section 7.3 below relating to
termination of the Agreement under this Section 7.2(c) shall apply only with
respect to such terminated Licensed 

 38
 

Product, and this
Agreement and the rights and obligations hereunder shall continue in full force
and effect as to any and all other Licensed Products.

7.3           Effects
of Termination.  Upon any
termination of this Agreement by IMMUNOGEN under Section 7.2(a) or by GENENTECH
under Section 7.2(c), as of the effective date of such termination, all
relevant licenses and sublicenses granted by IMMUNOGEN to GENENTECH hereunder
shall terminate automatically. 
Notwithstanding the foregoing, (a) no such termination of this Agreement
shall be construed as a termination of any valid sublicense of any Sublicensee
hereunder, and thereafter each such Sublicensee shall be considered a direct
licensee of IMMUNOGEN, provided that (i) such Sublicensee is then in
full compliance with all terms and conditions of its sublicense, (ii) all accrued
payments obligations to IMMUNOGEN have been paid, and (iii) such sublicensee
agrees at least ten (10) days prior to the effective date of such termination
to assume all obligations of GENENTECH under this Agreement, and (b) GENENTECH
and its Sublicensees shall have the right, for [***] ([***]) months or such
longer time period (if any) on which the Parties mutually agree in writing, to
sell or otherwise dispose of all Licensed Products then on hand, with royalties
to be paid to IMMUNOGEN on all Net Sales of such Licensed Products as provided
for in this Agreement.  Nothing set forth
in this Section 7 or any other provision of this Agreement shall entitle
IMMUNOGEN to any ownership interest in, or to any license under or other rights
with respect to (including any rights to use or request any transfer to
IMMUNOGEN or any Third Party), any Confidential Information of GENENTECH or any
Technology or Patent Rights solely owned by GENENTECH under this Agreement.

7.4           Effects of Termination For IMMUNOGEN Breach.  Upon any termination of this Agreement by
GENENTECH under Section 7.2(a), as of the effective date of such termination,
GENENTECH thereafter automatically shall have a fully sublicensable and
transferable, fully paid up (subject to the remainder of this Section 7.4),
exclusive license in the Territory under the Licensed Patent Rights and
Licensed Technology, to Develop, have Developed, make, have made, use, have
used, sell, have sold, offer for sale, import and have imported any and all
Licensed Products in the Territory, provided that GENENTECH shall pay,
for the remainder of the royalty term under Section 4.4 above, [***] [***] of
any payments including milestones or royalties it would [***] [***] to
IMMUNOGEN under this Agreement, a 

 39
 

[***]
equal to [***] [***] ([***]) of the [***] [***] that would [***] [***] with
respect to the Licensed Product under Sections 4.2.1, 4.2.2, 4.2.3 and 4.2.4 of
this Agreement.

7.5           Remedies.  Except as otherwise expressly set forth in
this Agreement, the termination provisions of this Section 7 are in addition to
any other relief and remedies available to either Party at law.

7.6           Surviving
Provisions. 
Notwithstanding any provision herein to the contrary, the rights and
obligations of the Parties set forth in Sections 4.7, 5, 6, 7.3, 7.4, 7.5, 8,
9, 10 and this Section 7.6, as well as any rights or obligations otherwise
accrued hereunder (including any accrued payment obligations), shall survive
the expiration or termination of the Term of this Agreement. Without limiting the
generality of the foregoing, GENENTECH shall have no obligation to make any
milestone or royalty payment to IMMUNOGEN that has not accrued prior to the
effective date of any termination of this Agreement, but shall remain liable
for all such payment obligations accruing prior to the effective date of such
termination.

8. 
REPRESENTATIONS AND WARRANTIES

8.1           IMMUNOGEN
Representations. 
IMMUNOGEN represents and warrants to GENENTECH that:  (a) the execution and delivery of this
Agreement and the performance of the transactions contemplated hereby have been
duly authorized by all appropriate IMMUNOGEN corporate action; (b) this
Agreement is a legal and valid obligation binding upon IMMUNOGEN and
enforceable in accordance with its terms, and the execution, delivery and
performance of this Agreement by the Parties does not conflict with any
agreement, instrument or understanding to which IMMUNOGEN is a party or by
which it is bound; (c) IMMUNOGEN has the full right and legal capacity to grant
the licenses and rights to GENENTECH pursuant to Section 2 above without
violating the rights of any Third Party; and (d) to IMMUNOGEN’s knowledge, no
Patent Rights within the Licensed Patent Rights are invalid or unenforceable or
would infringe Patent Rights of Third Parties, and as of the Effective Date no
patents within the Licensed Patent Rights are expired.

8.2           GENENTECH
Representations. 
GENENTECH represents and warrants to IMMUNOGEN that:  (a) the execution and delivery of this
Agreement and the performance of the transactions contemplated hereby have been
duly authorized by all appropriate GENENTECH corporate action; and (b) this
Agreement is a legal and valid obligation binding 

 40
 

upon GENENTECH and
enforceable in accordance with its terms, and the execution, delivery and
performance of this Agreement by the Parties does not conflict with any
agreement, instrument or understanding to which GENENTECH is a party or by
which it is bound.

8.3           No
Warranties.

(a)           Nothing in this
Agreement is or shall be construed as:

(i)            a warranty or
representation by IMMUNOGEN as to the validity or scope of any patent
application or patent within the Licensed Patent Rights;

(ii)           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
patents, copyrights, and other rights of third parties.

(b)           Except as expressly set
forth in this Agreement, NEITHER PARTY MAKES ANY REPRESENTATIONS OR EXTENDS ANY
WARRANTIES OF ANY KIND, EITHER EXPRESS OR IMPLIED.  THERE ARE NO EXPRESS OR IMPLIED WARRANTIES OF
MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE, THAT ANY LICENSED PRODUCT
WILL BE SUCCESSFULLY DEVELOPED OR MARKETED, OR THAT THE DEVELOPMENT, MANUFACTURE,
SALE, IMPORTATION OR USE OF THE LICENSED PRODUCT(S) WILL NOT INFRINGE ANY
PATENT, COPYRIGHT, TRADEMARK, OR OTHER RIGHTS, OR ANY OTHER EXPRESS OR IMPLIED
WARRANTIES.

8.4           Survival.
Section 8 shall survive termination or expiration of this Agreement.

9. 
INDEMNIFICATION; LIABILITY

9.1           Indemnification.

(a)           GENENTECH Indemnity.  Subject to Section 9.1(b) below and the
remainder of this Section 9, GENENTECH shall indemnify, defend and hold
harmless IMMUNOGEN, its Affiliates and their respective directors, officers,
employees, and agents and their respective successors, heirs and assigns (the “Indemnitees”), from and against any
liability, damage, loss or expense (including reasonable attorneys’ fees and
expenses of litigation) incurred by or imposed upon such Indemnitees, or any of
them, in connection with any Third Party claims, suits, actions, demands or
judgments, including, without limitation, personal injury and product liability
matters (but excluding any patent, trademark or tradename infringement 

 41
 

matters, which are
governed by Section 6 above), that arise out of or relate to (i) any actions or
omissions of GENENTECH or any Sublicensee in the development, testing,
production, manufacture, supply, promotion, import, sale or use by any person
of any Licensed Product (or any component thereof) manufactured or sold by
GENENTECH or any Sublicensee under this Agreement, (ii) any material breach of
this Agreement by GENENTECH, or (iii) negligence or willful misconduct on the
part of GENENTECH, in any such case under this Section 9.1(a) except to the
extent of IMMUNOGEN’s responsibility therefor under Section 9.1(b) below.

(b)           IMMUNOGEN Indemnity.  Subject to Section 9.1(a) above and the
remainder of this Section 9, IMMUNOGEN shall indemnify, defend and hold
harmless GENENTECH, its Affiliates and their respective directors, officers,
employees, and agents, and their respective successors, heirs and assigns (also
the “Indemnitees”), from and against any
liability, damage, loss or expense (including reasonable attorneys’ fees and
expenses of litigation) incurred by or imposed upon such Indemnitees, or any of
them, in connection with any Third Party claims, suits, actions, demands or
judgments, including, without limitation, personal injury and product liability
matters (but excluding any patent, trademark or tradename infringement matters,
which are governed by Section 6 above), that arise out of or relate to (i) any
actions or omissions of IMMUNOGEN or subcontractor of IMMUNOGEN in the
development, testing, production, manufacture or supply of any Licensed Product
(or any component thereof) manufactured and supplied by IMMUNOGEN or any
subcontractor of IMMUNOGEN under this Agreement, (ii) any material breach of
this Agreement by IMMUNOGEN, or (iii) negligence or willful misconduct on the
part of IMMUNOGEN, in any such case under this Section 9.1(b) except to the
extent of GENENTECH’s responsibility therefor under Section 9.1(a) above.

9.2           Indemnification
Procedures.  In the event
that any Indemnitee is seeking indemnification under Section 9.1 above from a
Party (the “Indemnifying Party”), the
other Party shall notify the Indemnifying Party of such claim with respect to
such Indemnitee as soon as reasonably practicable after the Indemnitee receives
notice of the claim, and the Party (on behalf of itself and such Indemnitee)
shall permit the Indemnifying Party to assume direction and control of the
defense of the claim (including the right to settle the claim solely for
monetary consideration) and shall cooperate as requested (at the expense of the
Indemnifying Party) in the defense of the claim.

 42
 

9.3           Liability.  NOTWITHSTANDING ANYTHING ELSE IN THIS
AGREEMENT OR OTHERWISE, NEITHER PARTY WILL BE LIABLE WITH RESPECT TO ANY
SUBJECT MATTER OF THIS AGREEMENT UNDER ANY CONTRACT, NEGLIGENCE, STRICT
LIABILITY OR OTHER LEGAL OR EQUITABLE THEORY FOR (a) ANY INDIRECT, INCIDENTAL,
CONSEQUENTIAL OR PUNITIVE DAMAGES OR LOST PROFITS OR (b) COST OF PROCUREMENT OF
SUBSTITUTE GOODS, TECHNOLOGY OR SERVICES.

9.4           Survival.
Section 9 shall survive termination or expiration of this Agreement.

10. MISCELLANEOUS

10.1         Entire
Agreement; Amendments. 
This is the entire Agreement between the Parties with respect to the
subject matter herein, and supersedes any prior agreements, understandings,
negotiations or correspondence between the Parties respecting the subject
matter hereof, whether written or verbal. 
No modification or other amendment of this Agreement shall be effective
unless in writing and signed by a fully authorized representative of each
Party.

10.2         Waiver.  The terms or conditions of this Agreement may
be waived only by a written instrument executed by a duly authorized
representative of the Party waiving compliance. 
The failure of either Party at any time or times to require performance
of any provision hereof shall in no manner affect its rights at a later time to
enforce the same.  No waiver by either
Party of any condition or term shall be deemed as a continuing waiver of such
condition or term or of another condition or term.

10.3         Governing
Law.  This Agreement will
be construed, interpreted and applied in accordance with the laws of the State
of California applicable to contracts entered into and to be performed entirely
within the State of California.

10.4         Notices.  Any notices, requests, deliveries, approvals
or consents required or permitted to be given under this Agreement to GENENTECH
or IMMUNOGEN shall be in writing and shall be personally delivered or sent by
telecopy (with machine confirmation of transmission) or by overnight courier
providing evidence of receipt or certified mail, return receipt requested,
postage prepaid, in each case to the respective address specified below (or to
such address as may be specified in writing to the other Party hereto):

 43
 

 

	
  If to IMMUNOGEN:

  	
   

  	
  ImmunoGen, Inc.

  
	
   

  	
   

  	
  128 Sidney
  Street

  
	
   

  	
   

  	
  Cambridge, MA
  02139-4239

  
	
   

  	
   

  	
  Attn:  Chief Executive Officer

  
	
   

  	
   

  	
  Fax: (617) 995-2510

  
	
   

  	
   

  	
   

  
	
  with a copy to

  	
   

  	
  Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C.

  
	
   

  	
   

  	
  One Financial
  Center

  
	
   

  	
   

  	
  Boston, MA 02111

  
	
   

  	
   

  	
  Attn: [***]
  [***] [***], Esq.

  
	
   

  	
   

  	
  (617) 542-2241

  
	
   

  	
   

  	
   

  
	
  If to GENENTECH:

  	
   

  	
  Genentech, Inc.

  
	
   

  	
   

  	
  1 DNA Way 94080

  
	
   

  	
   

  	
  South San
  Francisco, CA 94080

  
	
   

  	
   

  	
  Attn: Corporate
  Secretary

  
	
   

  	
   

  	
  Fax: (650)
  467-9146

  

 

Such
notices shall be deemed to have been sufficiently given on:  (a) the date sent if delivered in person or
transmitted by telecopy, (b) the next business day after dispatch in the case
of overnight courier or (c) five (5) business days after deposit in the U.S.
mail in the case of certified mail.

10.5         No
Implied Licenses.  Except
as expressly set forth elsewhere in this Agreement, neither Party grants to the
other Party any right or license to any of its intellectual property.

10.6         Headings.  Section and subsection headings are inserted
for convenience of reference only and do not form part of this Agreement.

10.7         Assignment.  This Agreement may not be assigned by either
Party without the consent of the other, except that each Party may, without
such consent, assign this Agreement and the rights, obligations and interests
of such Party, in whole or in part, to any of its Affiliates, to any purchaser
of all or substantially all of its assets in the line of business to which this
Agreement pertains or to any successor corporation resulting from any merger or
consolidation of such Party with or into such corporations.

10.8         Force
Majeure.  Neither Party
shall be liable for failure of or delay in performing obligations set forth in
this Agreement, and neither shall be deemed in breach of its obligations, if
such failure or delay is due to natural disasters or any causes beyond the
reasonable control of 

 44
 

such Party.  In event of such force majeure, the Party
affected thereby shall use reasonable efforts to cure or overcome the same and
resume performance of its obligations hereunder.

10.9         Construction.
 The Parties hereto acknowledge and agree
that:  (a) each Party and its
counsel reviewed and negotiated the terms and provisions of this Agreement and
have contributed to its revision; (b) the rule of construction to the
effect that any ambiguities are resolved against the drafting Party shall not
be employed in the interpretation of this Agreement; and (c) the terms and
provisions of this Agreement shall be construed fairly as to each Party hereto
and not in a favor of or against any Party, regardless of which Party was
generally responsible for the preparation of this Agreement.

10.10       Severability.  If any provision(s) of this Agreement are or
become invalid, are ruled illegal by any court of competent jurisdiction or are
deemed unenforceable under then current applicable law from time to time in
effect during the term hereof, it is the intention of the Parties that the
remainder of this Agreement shall not be affected thereby provided that a Party’s
rights under this Agreement are not materially affected.  The Parties hereto covenant and agree to
renegotiate any such term, covenant or application thereof in good faith in
order to provide a reasonably acceptable alternative to the term, covenant or
condition of this Agreement or the application thereof that is invalid, illegal
or unenforceable, it being the intent of the Parties that the basic purposes of
this Agreement are to be effectuated.

10.11       Status.    Nothing in this Agreement is
intended or shall be deemed to constitute a partner, agency, employer-employee,
or joint venture relationship between the Parties.

10.12       Dispute
Resolution.  The Parties
recognize that a bona fide dispute as to certain matters may from time to time
arise during the term of this Agreement relating to either Party’s rights
and/or obligations hereunder or otherwise relating to the validity,
enforceability or performance of this Agreement, including disputes relating to
alleged breach or termination of this Agreement but excluding any determination
of the validity of the Parties’ patents (hereinafter, a “Dispute”).  In the event of the occurrence of any such
Dispute, the Parties pledge to attempt to resolve it amicably.  Accordingly, if any Dispute should arise,
either Party may, by written notice to the other Party, have such dispute
referred to their respective senior officers designated below (and to any
designated officer of a GENENTECH Sublicensee, if such Dispute involves such
Sublicensee), for attempted resolution by good faith negotiations commencing
promptly after such notice is received; provided, however, that
if the subject matter of such 

 45
 

Dispute is within the
purview of the Collaboration Committee, the Parties’ representatives on the
Collaboration Committee shall first attempt to resolve such Dispute before
referring it to the Parties’ senior officers hereunder.  Said designated senior officials of the
Parties are as follows:

For GENENTECH:                Designated officer
with settlement authority; and

For IMMUNOGEN:              Chief Executive
Officer.

In the event the
designated senior officials are not able to resolve such Dispute, the Parties
may seek to mediate their Dispute, on terms and with a mediator mutually
agreeable to the Parties, or may seek to arbitrate their Dispute, on mutually
agreed upon terms and conditions, but neither Party shall be required or
obligated to mediate or arbitrate and the dispute resolution provisions of this
Section 10.12 are in addition to any other relief and remedies available to
either Party at law or in equity.

10.13       Further
Assurances.  Each Party
agrees to execute, acknowledge and deliver such further instruments, and to do
all other such acts, as may be necessary or appropriate in order to carry out
the purposes and intent of this Agreement.

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

[Remainder
of page intentionally left blank.]

 46
 

IN
WITNESS WHEREOF, the Parties have caused this Agreement to be executed by their
duly authorized representatives, effective as of the Effective Date set forth
on the first page hereof.

	
  GENENTECH, INC.

  	
   

  	
  IMMUNOGEN, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Date:

  	
   

  	
   

  	
  Date:

  	
   

  	
   

  
									

 

 47

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