Document:

Exhibit 10.10

 

AMENDMENT NO. 1 TO ASSET PURCHASE AGREEMENT

 

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

 

W I T N E S S E T H:

 

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

 

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

 

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

 

ARTICLE I

DEFINITIONS

 

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

 

ARTICLE II

AMENDMENTS

 

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

 

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

 

 

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

 

	
   

  	
  CELLDEX THERAPEUTICS, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Michael W. Fanger

  
	
   

  	
   

  	
  Title:

  	
  President and Chief Executive Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  ALTERIS THERAPEUTICS, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Dr. Albert J. Wong

  
	
   

  	
   

  	
  Title:

  	
  Interim President

  
	
   

  	
   

  

 

2

 

EXECUTION

COPY

 

 

 

ASSET PURCHASE AGREEMENT

 

 

by and between

 

 

CELLDEX THERAPEUTICS, INC.

(“Acquirer”)

 

and

 

ALTERIS THERAPEUTICS, INC.

(“Transferor”)

 

 

Dated as of January 31,
2005

 

 

 

 

TABLE OF
CONTENTS

 

 

	
  ARTICLE I

  	
  DEFINITIONS

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 1.1

  	
  Definitions

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE II

  	
  ACQUISITION AND TRANSFER OF ACQUIRED
  ASSETS; ASSUMPTION OF LIABILITIES

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 2.1

  	
  Acquisition and Transfer of Acquired Assets

  	
   

  
	
  Section 2.2

  	
  Assumption of Liabilities

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE III

  	
  ACQUISITION PRICE PAYMENT OF ACQUISITION
  PRICE

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 3.1

  	
  Acquisition Price; Payment of Acquisition
  Price

  	
   

  
	
  Section 3.2

  	
  Election Option Limitation

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE IV

  	
  CLOSING

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 4.1

  	
  Closing

  	
   

  
	
  Section 4.2

  	
  Deliveries by the Transferor at the Closing

  	
   

  
	
  Section 4.3

  	
  Deliveries by the Acquirer at the Closing

  	
   

  
	
  Section 4.4

  	
  Further Assurances and Agreements

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE V

  	
  RESERVED

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE VI

  	
  REPRESENTATIONS OF THE TRANSFEROR

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 6.1

  	
  Corporate Power and Authority

  	
   

  
	
  Section 6.2

  	
  Existence and Good Standing

  	
   

  
	
  Section 6.3

  	
  Authority; No Consents

  	
   

  
	
  Section 6.4

  	
  Title to Assets, Properties and Rights and
  Related Matters

  	
   

  
	
  Section 6.5

  	
  Licenses and Permits; Compliance with Law

  	
   

  
	
  Section 6.6

  	
  Assigned Contracts

  	
   

  
	
  Section 6.7

  	
  Real Property - Owned or Leased

  	
   

  
	
  Section 6.8

  	
  Litigation

  	
   

  
	
  Section 6.9

  	
  Intellectual Property

  	
   

  
	
  Section 6.10

  	
  Material In-Licensed IP

  	
   

  
	
  Section 6.11

  	
  Environmental Matters

  	
   

  
	
  Section 6.12

  	
  Employees; Employee Benefit Plans

  	
   

  
	
  Section 6.13

  	
  Broker’s or Finder’s Fees

  	
   

  
	
  Section 6.14

  	
  Insurance Coverage

  	
   

  
	
  Section 6.15

  	
  Accounts and Notes Receivable

  	
   

  

 

i

 

	
  Section 6.16

  	
  Preclinical Testing and Clinical Trials

  	
   

  
	
  Section 6.17

  	
  Financial Statements

  	
   

  
	
  Section 6.18

  	
  Taxes

  	
   

  
	
  Section 6.19

  	
  Absence of Certain Changes and Events

  	
   

  
	
  Section 6.20

  	
  No Undisclosed Liabilities

  	
   

  
	
  Section 6.21

  	
  Disclosure

  	
   

  
	
  Section 6.22

  	
  Affiliates

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE VII

  	
  REPRESENTATIONS OF THE ACQUIRER

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 7.1

  	
  Existence and Good Standing; Authorization
  and Validity of Agreement

  	
   

  
	
  Section 7.2

  	
  SEC Filings; Financial Statements;
  Compliance

  	
   

  
	
  Section 7.3

  	
  Shares

  	
   

  
	
  Section 7.4

  	
  Capitalization

  	
   

  
	
  Section 7.5

  	
  Broker’s or Finder’s Fees

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE VIII

  	
  ADDITIONAL AGREEMENTS

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 8.1

  	
  Operation of Business

  	
   

  
	
  Section 8.2

  	
  Review of the Transferor

  	
   

  
	
  Section 8.3

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

  	
   

  
	
  Section 8.4

  	
  Public
  Disclosure

  	
   

  
	
  Section 8.5

  	
  Apportionment

  	
   

  
	
  Section 8.6

  	
  Confidentiality

  	
   

  
	
  Section 8.7

  	
  No
  Right to Continued Employment or Benefits

  	
   

  
	
  Section 8.8

  	
  Cooperation

  	
   

  
	
  Section 8.9

  	
  Consents;
  Releases

  	
   

  
	
  Section 8.10

  	
  Possession
  of the Assets

  	
   

  
	
  Section 8.11

  	
  Non-Solicitation

  	
   

  
	
  Section 8.12

  	
  Ownership
  of Intellectual Property Developed by Transferor Employees

  	
   

  
	
  Section 8.13

  	
  Diligent
  Efforts

  	
   

  
	
  Section 8.14

  	
  No
  Issuance of Additional Shares

  	
   

  
	
  Section 8.15

  	
  SEC
  Rule 144 Reporting31

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE IX

  	
  CONDITIONS TO THE OBLIGATIONS OF THE
  ACQUIRER

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 9.1

  	
  Conditions
  to the Acquirer’s Obligations

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE X

  	
  CONDITIONS TO THE OBLIGATIONS OF THE
  TRANSFEROR

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 10.1

  	
  Conditions
  to the Transferor’s Obligations

  	
   

  

 

ii

 

	
  ARTICLE XI

  	
  TERMINATION

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 11.1

  	
  Events
  of Termination

  	
   

  
	
  Section 11.2

  	
  Effect
  of Termination

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE XII

  	
  MISCELLANEOUS

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 12.1

  	
  Expenses;
  Fees

  	
   

  
	
  Section 12.2

  	
  Applicable
  Law

  	
   

  
	
  Section 12.3

  	
  Jurisdiction;
  Waiver of Jury Trial

  	
   

  
	
  Section 12.4

  	
  Captions;
  Headings

  	
   

  
	
  Section 12.5

  	
  Notices

  	
   

  
	
  Section 12.6

  	
  Assignment;
  Parties in Interest

  	
   

  
	
  Section 12.7

  	
  Counterparts

  	
   

  
	
  Section 12.8

  	
  Entire
  Agreement

  	
   

  
	
  Section 12.9

  	
  Severability;
  Enforcement

  	
   

  
	
  Section 12.10

  	
  Amendments; Waiver

  	
   

  
	
  Section 12.11

  	
  No Strict Construction

  	
   

  
	
  Section 12.12

  	
  Pronouns

  	
   

  
	
  Section 12.13

  	
  No Third Party Beneficiaries

  	
   

  
	
  Section 12.14

  	
  No Joint Venture

  	
   

  
	
  Section 12.15

  	
  Specific Performance

  	
   

  

 

	
  Appendix
  A

  	
  Bill
  of Sale

  
	
   

  	
   

  
	
  Appendix
  B

  	
  Assignment
  and Assumption Agreement

  
	
   

  	
   

  
	
  Appendix
  C

  	
  Trademark
  Assignment Agreement

  
	
   

  	
   

  
	
  Appendix
  D

  	
  Assignment
  of Intangible Assets

  
	
   

  	
   

  
	
  Appendix
  E

  	
  Form of
  Opinion of Counsel to Transferor

  
	
   

  	
   

  
	
  Appendix
  F

  	
  Form of
  Consulting Agreement between Acquirer and Dr. Albert J. Wong

  
	
   

  	
   

  
	
  Appendix
  G

  	
  Form of
  Consulting Agreement between Acquirer and Dr. Donald M. O’Rourke

  
	
   

  	
   

  
	
  Appendix
  H

  	
  Form of
  Opinion of Counsel to Acquirer

  
	
   

  	
   

  
	
  Appendix
  I

  	
  Term
  Sheet for Sponsored Research Agreement

  
	
   

  	
   

  
	
  Appendix
  J

  	
  Balance
  Sheet of Transferor as at September 30, 2004

  
	
   

  	
   

  
	
  Appendix
  K

  	
  Transferor
  Affiliate Letter

  

 

iii

 

ASSET PURCHASE AGREEMENT

 

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

 

W I T N E S S E T H:

 

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

 

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

 

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

 

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

 

ARTICLE I

DEFINITIONS

 

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

 

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

 

“Acquirer” shall have the
meaning set forth in the Preamble.

 

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

 

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

 

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

 

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

 

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

“Charges” shall have the
meaning set forth in Section 13.2.

 

“Closing” shall have the
meaning set forth in Section 4.1.

 

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

 

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

 

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

 

“Consideration” shall have
the meaning set forth in Section 3.1.

 

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

 

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

 

2

 

“Data” means all data related to the
Programs.

 

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

 

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

 

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

 

“Execution Date” shall have the meaning
set forth in the Preamble.

 

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

 

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

 

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

 

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

 

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

 

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

 

“Exchange Act” means the
Securities Exchange Act of 1934, as amended.

 

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

 

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

 

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

 

“FDA” means the United States Food and
Drug Administration.

 

“GAAP” means United States generally
accepted accounting principles.

 

3

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

“Leases” shall have the
meaning set forth in Section 6.7.

 

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

 

“MAA” means a marketing authorization
application.

 

4

 

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

 

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

 

“Materials” means all on-hand materials.

 

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

 

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

 

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

 

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

 

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

 

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

 

5

 

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

 

“Permitted Encumbrances”
means: (a) statutory liens for Taxes that are not yet due and payable or
are being contested in good faith by appropriate proceedings or that are
otherwise not material; (b) statutory or common law liens to secure
obligations to landlords, lessors or renters under leases or rental agreements;
(c) deposits or pledges made in connection with, or to secure payment of,
workers’ compensation, unemployment insurance or similar programs mandated by
applicable Law; (d) statutory or common law liens in favor of carriers,
warehousemen, mechanics and materialmen, to secure claims for labor, materials
or supplies and other like liens; (e) Encumbrances that relate to, or are
created, arise or exist in connection with, any legal proceeding that is being
contested in good faith; and (f) Encumbrances that do not materially
impair the ownership or use of the assets to which they relate.

 

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

 

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

 

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

 

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

 

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

 

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

 

“Records” means all records, documents
and files.

 

6

 

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

 

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

 

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

 

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

 

“SEC” means the United
States Securities and Exchange Commission.

 

“Securities Act” means the
Securities Act of 1933, as amended.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

“Transferor” shall have
the meaning set forth in the Preamble.

 

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

 

7

 

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

 

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

 

ARTICLE II

ACQUISITION AND TRANSFER OF 

ACQUIRED ASSETS; ASSUMPTION OF LIABILITIES

 

Section 2.1             Acquisition and Transfer of Acquired Assets.

 

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

 

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

 

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

 

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

 

(iv)                              subject
to subsection (b)(ii) hereof, all rights of the Transferor under all
executory contracts set forth in Section 2.1(a)(iv) to the Transferor
Disclosure Letter (including, without limitation, license agreements 

 

8

 

pursuant to which Intellectual Property and Material In-Licensed IP is
licensed to Transferor), except as set forth in Section 2.1(b)(ii) of
the Transferor Disclosure Letter (collectively, the “Assigned Contracts”);

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

9

 

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

 

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

 

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

 

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

 

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

 

(ix)                                the
Excluded Receivables;

 

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

 

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

 

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

 

Section 2.2             Assumption of Liabilities.

 

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

 

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

 

10

 

ARTICLE III

ACQUISITION PRICE; 

PAYMENT OF ACQUISITION PRICE

 

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

 

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

 

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

 

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

 

(d)           Eisai Upfront Fees or Milestone
Payments.  The Acquirer shall pay to Transferor an
amount equal to twenty (20%) percent of any upfront fees or milestone payments
received by Acquirer from Eisai in the event the Acquirer shall enter into a
license agreement with Eisai for any EGFRvIII-related product that was
developed pursuant to any Intellectual Property assigned hereunder (the “Eisai License Agreement”) within twelve
(12) months from the Closing Date.  At
the election of the Acquirer, any such payment may be made in the form of cash
or shares of fully registered, freely tradable Common Stock of the Acquirer
having a Fair Market Value, on the date such milestone payment is received by
Acquirer from Eisai,  equal to

 

11

 

the amount of any such payment.  Such payment shall be made within thirty (30)
days of the date the Acquirer receives any such upfront fees or milestone
payments from Eisai.  In the event that
Transferor shall have been dissolved or shall otherwise no longer be in
existence at the time any such payments become due and payable by the Acquirer
under this Section 3.1(d), the Acquirer shall make such payments to the
Persons listed on Section 3.1(c) to the Transferor Disclosure Letter
in the respective percentages to be furnished to the Acquirer by the Transferee
in writing at the Closing.

 

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

 

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

 

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

 

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

 

12

 

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

 

ARTICLE IV 

CLOSING

 

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

 

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

 

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

 

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

 

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

 

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

 

13

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

(vi)                              the
Certificate representing the Shares;

 

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

 

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

 

Section 4.4             Further Assurances and
Agreements.

 

(a)           Each Party will from time to
time, at the reasonable request of any other Party, execute and deliver such
other instruments of conveyance and transfer and such other instruments,
documents and agreements and take such other actions as such other Party may
reasonably request or as may be reasonably requested by any applicable
Governmental

 

14

 

Authorities or third parties, in each case in
order to consummate and make Execution any of the transactions contemplated
hereby and to vest in the Acquirer the right, title and interest in, to and
under the Acquired Assets, to assist the Acquirer in the transfer, assignment,
collection and reduction to possession of the Acquired Assets (and the exercise
of rights with respect thereto); provided that the requesting Party will
prepare any additional documents and instruments and will handle any submittal,
applications, processing, recording and registrations and bear all expenses
related thereto.

 

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

 

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

 

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

 

ARTICLE V

RESERVED

 

ARTICLE VI

REPRESENTATIONS OF THE TRANSFEROR

 

The Transferor represents and warrants to the Acquirer as follows:

 

15

 

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

 

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

 

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

 

Section 6.4             Title
to Assets, Properties and Rights and Related Matters.  The Transferor has good and valid title in
and to the Acquired Assets. All of the Acquired Assets are owned by the
Transferor free and clear of all Encumbrances, except for Permitted
Encumbrances and as otherwise provided in the Assigned Contracts, and upon
consummation of the transactions contemplated hereby, the Acquirer will have
acquired all of the Transferor’s rights, title and interest in and to the
Acquired Assets, free and clear of all Encumbrances, except for Permitted
Encumbrances and Encumbrances created by or imposed on the Acquirer through no
act or fault of the Transferor. The Transferor has not made any sale or
assignment that would conflict with the sale and assignment of its rights in
and to the Acquired Assets to the Acquirer as

 

16

 

contemplated by this Agreement. The Acquired Assets constitute all of
the assets, rights products and services, both tangible and intangible,
wherever located and whether or not required to be reflected on a balance sheet
prepared in accordance with GAAP, used by Transferor in, and necessary to
operate, the Business and the Programs as currently conducted; provided,
however, that the Transferor makes no representation or warranty regarding the
probable scientific or commercial success or profitability of or resulting from
the ownership, use, operations, manufacturing, formulating, packaging,
marketing or distribution of the Product Candidates after the Closing.

 

Section 6.5             Licenses and Permits; Compliance
with Law.

 

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

 

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

 

Section 6.6             Assigned Contracts.

 

(a)           Section 2.1 to the
Transferor Disclosure Letter sets forth a list of all of the contracts related
to the Acquired Assets, including the Product Candidates and the Programs, that
are to be assigned to the Acquirer at the Closing (the “Assigned Contracts”). All the Assigned

 

17

 

Contracts are valid, binding and enforceable
in accordance with their terms by and against the Transferor and, to the
knowledge of the Transferor, each other party thereto, and are in full force
and effect. Except as set forth in Section 6.6 of the Transferor
Disclosure Letter, the Transferor has performed in all material respects all
obligations imposed on it thereunder. To the knowledge of the Transferor, and
except as set forth in Section 6.6 of the Transferor Disclosure Letter,
would not reasonably be expected to have a Material Adverse Effect, no event
has occurred, and no circumstance or condition exists, that would (with or
without notice or lapse of time) (i) constitute a default by the
Transferor or, to the knowledge of the Transferor , any other party thereto,
under the Assigned Contracts; (ii) result in a violation or breach of any
of the provisions of the Assigned Contracts; (iii) give any Person the
right to declare a default or exercise any remedy for default under the
Assigned Contracts; or (iv) give any Third Party the right to cancel,
terminate or modify any of the Assigned Contracts (except to the extent any
such Assigned Contract is by its terms terminable, cancelable or modifiable by
such Third Party upon prior notice or after the expiration of a specified
term).  Since April 18, 2002, the
Transferor has not received any written notice of any actual or alleged
violation, breach or default by Transferor under any of the Assigned Contracts
that has not been cured as of the Execution Date. As of the date of this
Agreement, the Transferor is not directly and actively engaged in any
renegotiation of any amounts paid or payable to the Transferor under any of the
Assigned Contracts or any other material term or material provision of any of
the Assigned Contracts. True and complete copies of each Assigned Contract have
been delivered to the Acquirer by the Transferor, and there is no legally
enforceable agreement (written or oral) between any Transferor and the other
party to any Assigned Contract that amends or modifies the terms of any
Assigned Contract (except for the Required Consents that have not been
delivered to Acquirer). Section 6.6 to the Transferor Disclosure Letter
sets forth a list of all Assigned Contracts that require the consent or waiver
of any party to such Assigned Contract as a result of the transactions
contemplated hereby, except where the failure to obtain such consent or waiver
would not have a Material Adverse Effect (the “Required Consents”).

 

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

 

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

 

Section 6.8             Litigation.  Except as set forth on Section 6.8 of
the Transferor Disclosure Letter, there are no Proceedings against the
Transferor relating to any of the Acquired Assets that are currently pending
or, to the knowledge of the Transferor, threatened at law or in equity before
or by any Governmental Authority, or that challenge or seek to prevent, make
illegal, enjoin, alter, delay or otherwise interfere with any of the
transactions contemplated by this Agreement or by the Ancillary Agreements. The
Transferor is not in default under or with respect to any Order of any court or
any Governmental Authority that could reasonably be expected to have a Program
Material Adverse Effect.  Except as set
forth in Section 6.6 of the Transferor Disclosure Letter, and to the
knowledge of the Transferor, no even has occurred and no claim, dispute or
other condition or circumstance exists, that might directly or indirectly give

 

18

 

rise to or serve as basis for the commencement of any such
Proceeding.  There is no Order material
to the Business to which any of the Acquired Assets is subject.  The Transferor is not in default under or
with respect to any Order of any court or any Governmental Authority that could
reasonably be expected to have a Material Adverse Effect.  To the knowledge of the Transferor, there is
no proposed Order that, if issued or otherwise put into effect, (a) would
have a Material Adverse Effect on the ability of the Transferor to perform any
covenant or obligation under this Agreement or the Ancillary Agreements, or (b) would
have the effect of preventing, delaying, making illegal or otherwise
interfering with the transactions contemplated by this Agreement and the
Ancillary Agreements.

 

Section 6.9             Intellectual Property.

 

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

 

(b)           To the knowledge of the
Transferor , there are no royalties, honoraria, fees or other payments payable
by the Transferor to any person by reason of the Transferor’s ownership, use,
license, transmission, broadcast, delivery (electronically or otherwise), sale,
or disposition of the Assigned Intellectual Property, except for any such
payments arising from the purchase or license of “off the shelf” or standard
software products for which the acquisition price or license fee is less than
$5,000.

 

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

 

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

 

19

 

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

 

Section 6.10           Material In-Licensed IP.

 

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

 

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

 

Section 6.11           Environmental
Matters.  The property, assets
and operations of the Transferor are in compliance in all material respects
with all applicable federal, state, local or foreign laws, rules, orders,
decrees, judgments, injunctions, licenses, permits or regulations relating to
environmental matters (collectively, the “Environmental
Laws”), except to the extent that failure to comply with such
Environmental Laws would not have a Material Adverse Effect.  To the knowledge of the Transferor, none of
the Acquired Assets are the subject of any federal, state, local or foreign
investigation evaluating whether any remedial action is needed to respond to a
release or threatened release into the environment, of any substance regulated
by, or which would form the basis of liability, under any Environmental Laws (a
“Hazardous

 

20

 

Substance”) or are
in contravention of any federal, state, local or foreign law, order or
regulation that would have a Material Adverse Effect.  The Transferor has not received any written
notice or claim, nor are there pending, threatened or reasonably anticipated
lawsuits against it with respect to material violations of an Environmental Law
or in connection with the release of threatened release of any Hazardous
Substance into the environment.  To the
knowledge of the Transferor, the Transferor has no material contingent
liability in connection with any release or threatened release of any Hazardous
Substance into the environment.

 

Section 6.12           Employees; Employee Benefit Plans.

 

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

 

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

 

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

 

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

 

21

 

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

 

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

 

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

 

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

 

Section 6.18           Taxes.  Except as set forth in Section 6.18 of
the Transferor Disclosure Letter, there are no security interests of any type
on the Acquired Assets that have arisen in connection with any failure (or
alleged failure) by the Transferor to pay any Tax and there are no judgments
against Transferor for or with respect to any Taxes arising out of the
operation of the Business.  The
Transferor has filed or will file or cause to be filed, within the

 

22

 

applicable period prescribed by law, all federal, provincial, local
foreign or other tax returns, required by such law to be filed by Transferor
with respect to the Business for all taxable periods ending on or prior to the
Closing Date, or the Transferor has filed valid extensions of time for filing
such tax returns.  Transferor has paid
within the time and manner prescribed by law, all Taxes shown as due on all
such tax returns, and (i) Transferor is not delinquent in the payment of
any Taxes relating to the Business, (ii) no deficiencies for any Taxes
have been asserted in writing against Transferor, and (iii) no such
deficiencies have been threatened in writing. 
There are no actions, suits, proceedings, investigations or claims
pending or, to the knowledge of the Transferor , threatened against, Transferor
is respect of Taxes relating to the Business, nor are there any material
matters under discussion with any governmental authority relating to Taxes
relating to the Business.

 

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

 

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

 

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

 

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

 

ARTICLE VII

REPRESENTATIONS OF THE ACQUIRER

 

The Acquirer represents and warrants to the Transferor as follows:

 

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

 

(a)           The Acquirer is a corporation
duly incorporated, validly existing and in good standing under the laws of the
State of Delaware.  The Acquirer is duly qualified as a foreign
corporation and is in good standing in each jurisdiction in which such
qualification is required by law, except where the failure to be so qualified
or to be in good standing would not

 

23

 

prevent, interfere or delay the Acquirer from
performing its obligations under this Agreement or the consummation of the
transactions contemplated by this Agreement. The Acquirer has the corporate
power and authority to enter into this Agreement and the Ancillary Agreements
to which it is a party and to consummate the transactions contemplated hereby
and thereby.

 

(b)           The execution, delivery and
performance by the Acquirer of this Agreement and the Ancillary Agreements to
which it is a party and the consummation of the transactions contemplated
hereby and thereby have been duly and validly authorized by all necessary
corporate action on the part of the Acquirer and this Agreement has been, and
the Ancillary Agreements to which it is a party when executed and delivered by
the Acquirer will be, duly and validly executed and delivered and the valid and
binding obligations of the Acquirer, enforceable against it in accordance with
their respective terms, subject to (i) laws of general application
relating to bankruptcy, insolvency and the relief of debtors and
(ii) rules of law governing specific performance, injunctive relief
and other equitable remedies. Neither the execution, delivery and performance
by the Acquirer of this Agreement or the Ancillary Agreements to which the
Acquirer is a party, the consummation by the Acquirer of the transactions
contemplated hereby or thereby, nor compliance by the Acquirer with any
provision hereof or thereof will conflict with, result in any violation of,
cause a default under (with or without due notice, lapse of time or both), give
rise to any right of termination, amendment, cancellation or acceleration of
any obligation contained in or the loss of any benefit under or result in the
creation of any Encumbrance on or against any assets, rights or property of the
Acquirer under any term, condition or provision of (x) any instrument or
agreement to which the Acquirer is a party, or by which the Acquirer or any of
its properties, assets or rights may be bound or (y) any law, statute, rule,
regulation, order, writ, injunction, decree, permit, concession, license or
franchise of any Governmental Authority applicable to the Acquirer or any of
its properties, assets or rights, other than any such conflict, violation,
default, right, loss or Encumbrance that would not prevent, interfere or delay
the Acquirer from performing its obligations under this Agreement or the
consummation of the transactions contemplated by this Agreement, or conflict
with or result in any violation of the Acquirer’s Certificate of Incorporation
or Bylaws.  Other than the Order by the
SEC declaring the Registration Statement effective under the Securities Act, no
Permit, Order, authorization, consent or approval of or by, or any notification
of or filing with, any Governmental Authority is required to be made or
obtained by Acquirer in connection with the execution, delivery and performance
by the Acquirer of this Agreement or the Ancillary Agreements or the
consummation by the Acquirer of the transactions contemplated hereby or
thereby.  Acquirer is not and will not be required to obtain any consent
from any Person, in connection with the execution, delivery or performance of
this Agreement or any of the Ancillary Agreements or the consummation of any of
the transactions contemplated hereby or thereby.

 

Section 7.2             SEC Filings; Financial
Statements; Compliance.

 

(a)           All reports, statements and
other documents required to have been filed by the Acquirer with the SEC
pursuant to the Securities Act or the Exchange Act (the “Acquirer SEC Documents”) have been so filed
on a timely basis.  As of the time it was filed with the SEC (or, if
amended or superseded by a filing prior to the date of this Agreement, then on
the date of such filing):  (i) each of the Acquirer SEC Documents
complied in all material respects with the

 

24

 

applicable requirements of the Securities Act
or the Exchange Act (as the case may be); and (ii) none of the Acquirer
SEC Documents contained any untrue statement of a material fact or omitted to
state a material fact required to be stated therein or necessary in order to
make the statements therein, in the light of the circumstances under which they
were made, not misleading.

 

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

 

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

 

Section 7.3             Shares.

 

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

 

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

 

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

 

Section 7.5             Broker’s
or Finder’s Fees.  No agent,
broker, Person or firm is, or will be, entitled to any commission or broker’s
or finder’s fees from any Party, or from any Affiliate of any Party, in
connection with any of the transactions contemplated by this Agreement based
upon arrangements made by or on behalf of Acquirer.  Acquirer agrees to

 

25

 

indemnify Transferor for any claims, losses or expenses incurred by
Transferor as a result of the representation in this Section 7.5 being untrue.

 

ARTICLE VIII

ADDITIONAL AGREEMENTS

 

Section 8.1             Operation of Business.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

26

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

27

 

the transactions contemplated hereby and
thereby and (iii) causing the conditions set forth in Articles IX and X to
be satisfied.

 

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

 

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

 

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

 

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

 

(f)            To the extent that any Transferor
or the Acquirer identifies assets after the Closing that were not included as
part of the Acquired Assets, but the absence of which would

 

28

 

constitute a breach or inaccuracy of the
representation contained in this Agreement. 
The Transferor shall transfer all of its right, title and interest in
such assets to the Acquirer, with such transfer to be completed as promptly as
commercially reasonable after such identification.

 

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

 

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

 

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

 

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

 

Section 8.5             Apportionment.  All real property and personal property Taxes,
assessments and similar governmental charges levied with respect to the
Acquired Assets for a

 

29

 

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

 

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

 

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

 

Section 8.8             Cooperation.

 

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

 

(b)           The Acquirer covenants and
agrees that, during the period between the date hereof and the Closing, the Acquirer
shall promptly inform Transferor in writing of any

 

30

 

material breaches of the representations and
warranties contained in Article VII or any material breach of any covenant
of the Acquirer.

 

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

 

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

 

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

 

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

 

Section 8.13           Diligent
Efforts.

 

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

 

31

 

(b)           Acquirer further covenants and
agrees that it shall use commercially reasonable, diligent efforts to enter
into the Eisai License Agreement prior to the expiration of the 12-month
period referred to in Section 3.1(d) hereof, provided, however,
that nothing in this Section 8.13(b) shall require the Acquirer to enter
into the Eisai License Agreement if the Acquirer makes a good faith
determination that entering into said agreement would not be commercially
reasonable.

 

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

 

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

 

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

 

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

 

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

 

ARTICLE IX

CONDITIONS TO THE OBLIGATIONS OF THE ACQUIRER

 

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

 

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

 

(b)           Representations and Warranties.  The representations and
warranties of Transferor contained in Article VI (and any representations
and warranties of Transferor set forth in the Ancillary Agreements) qualified
by materiality shall be true and correct in all respects, except for such exceptions
as are permitted by this Agreement, without further qualification as of the
date hereof and the Closing Date, as if made on such date (except for such
representations and warranties that relate to a specific date, which shall be
true and correct in all respects as of

 

32

 

such date), and all representations and
warranties of the Transferor contained in Article VI (and any
representations and warranties of the Transferor set forth in the Ancillary Agreements)
that are not so qualified shall be true and correct in all material respects as
of the Closing Date, as if made on such date (except for such representations
and warranties that relate to a specific date, which shall be true and correct
in all material respects as of such date); provided, however,
that, for purposes of this Section 9.1(b), any inaccuracies in the
representations and warranties of the Transferor will be disregarded unless all
such inaccuracies, considered collectively, would have a Material Adverse
Effect.  Transferor shall have delivered to the Acquirer a certificate,
dated as of the Closing Date and signed by Transferor’s President (the “Transferor Closing Certificate”),
confirming that the conditions set forth in this Section 9.1(b) have
been satisfied.

 

(c)           Performance of Agreements.  Each and all of the
agreements of the Transferor to be performed on or prior to the Closing
pursuant to the terms hereof shall have been duly performed in all material
respects, and the Transferor Closing Certificate shall confirm that the
conditions set forth in this Section 9.1(c) have been satisfied.

 

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

 

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

 

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

 

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

 

ARTICLE X

CONDITIONS TO THE OBLIGATIONS OF THE TRANSFEROR

 

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

 

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

 

33

 

further registration or qualification of the
resale thereof by the Transferor or any of it Affiliates except as contained in
Rule 145 of the Securities Act and any other applicable provision of the
Securities Act, the Exchange Act or applicable Law.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

34

 

ARTICLE XI

TERMINATION

 

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

 

(a)           by mutual written consent of the
Parties;

 

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

 

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

 

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

 

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

 

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

 

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

 

35

 

Section 11.2           Effect
of Termination.

 

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

 

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

 

ARTICLE XII

 

MISCELLANEOUS

 

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

 

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

 

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

 

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

 

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

 

36

 

or mailed, certified or
registered mail with postage prepaid, or sent by telex, telegram or telecopy
and a confirmation of transmission is obtained, as follows:

 

(a)           if to the Transferor, to:

 

Alteris Therapeutics, Inc.

416 South 10th Street

Philadelphia, PA  19147

Facsimile:  (215) 923-0567

Attention:  Dr. Albert J. Wong, Interim
President

 

with a copy to:

 

Duane Morris LLP

One Liberty Place

Philadelphia, PA  19103-7396

Facsimile:  (215) 979-1020

Attention:  Kathleen M. Shay, Esq.

 

(b)           if to the Acquirer, to:

 

Celldex Therapeutics, Inc.

519 Route 173 West

Bloomsbury, NJ  08804

Facsimile:  (908) 713-6002

Attention:  Anthony S. Marucci, Vice President

 

with a copy to:

 

Satterlee Stephens Burke & Burke LLP

230 Park Avenue

New York, NY  10169

Facsimile:  (212) 818-9607

Attention:  Dwight A. Kinsey, Esq.

 

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

 

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

 

37

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

38

 

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

 

[Signature Page Follows.]

 

39

 

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

 

	
    

  	
  CELLDEX THERAPEUTICS, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: 

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Michael W. Fanger

  
	
   

  	
   

  	
  Title:

  	
  President and Chief Executive Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  ALTERIS THERAPEUTICS, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: 

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Dr. Albert J. Wong

  
	
   

  	
   

  	
  Title:

  	
  Interim President 

  

 

40

 

APPENDIX A

 

Bill of Sale

 

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

 

RECITAL

 

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

 

AGREEMENT

 

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

 

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

2

 

Section 3.       Further Actions.  Transferor, for itself and its successors and
assigns, hereby covenants and agrees that, at any time and from time to time
forthwith upon the written request of Acquirer, Transferor will do, execute,
acknowledge, and deliver or cause to be done, executed, acknowledged, or
delivered, all and every such further acts, instruments, deeds, assignments,
transfers, conveyances, powers of attorney, and assurances as may be reasonably
requested by Acquirer in order to more effectively sell, assign, transfer, and
convey to, and vest in, Acquirer and its successors and assigns, or to aid and
assist Acquirer in reducing to possession and use, any or all of the Acquired
Assets, all at the sole cost and expense of Transferor.

 

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

 

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

 

 

3

 

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

 

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

 

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

 

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

 

	
   

  	
  ALTERIS THERAPEUTICS, INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Dr. Albert J. Wong

  
	
   

  	
   

  	
  Title:

  	
  Interim President

  
					

 

ACKNOWLEDGED AND AGREED TO:

CELLDEX THERAPEUTICS, INC.

 

	
  By:

  	
   

  	
   

  
	
   

  	
  Dr. Michael W. Fanger

  
	
   

  	
  President

  

 

4

 

APPENDIX B

 

ASSIGNMENT
AND ASSUMPTION AGREEMENT

 

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

 

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

 

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

 

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

 

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

 

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

 

 

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

 

 

ASSIGNOR:

 

ALTERIS THERAPEUTICS, INC.

 

 

	
  By:

  	
   

  	
   

  
	
  Name: Dr. Albert J. Wong

  
	
  Title: Interim President

  

 

 

ASSIGNEE:

 

CELLDEX THERAPEUTICS, INC.

 

 

	
  By:

  	
   

  	
   

  
	
  Name:Dr. Michael W. Fanger

  
	
  Title:President and Chief Executive Officer

  

 

 

SCHEDULE I

 

Assumed
Contracts

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

 

	
  State of

  	
  )

  
	
   

  	
  )

  	
  ss.:

  
	
  County of

  	
  )

  

 

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

 

Witness my hand and official seal.

 

	
   

  	
   

  
	
  Notary Public

  
	
   

  
	
   

  
	
  State of

  	
  )

  
	
   

  	
  )

  	
  ss.:

  
	
  County of

  	
  )

  
				

 

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

 

 

Witness my hand and official seal.

 

	
   

  	
   

  
	
  Notary Public

  

 

 

APPENDIX C

 

Trademark
Assignment Agreement

 

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

 

RECITAL

 

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

 

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

 

AGREEMENT

 

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

 

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

 

3.                                       Terms of the
Purchase Agreement.  The terms of the
Purchase Agreement, including but not limited to Assignor’s representations,
warranties, covenants, agreements and indemnities relating to the Trademarks,
are incorporated herein by this reference. Assignor acknowledges and agrees
that the representations, warranties, covenants, agreements and

 

 

indemnities contained in the Purchase Agreement shall not be superseded
hereby but shall remain in full force and effect to the full extent provided
therein.  In the event of any conflict or
inconsistency between the terms of the Purchase Agreement and the terms hereof,
the terms of the Purchase Agreement shall govern.

 

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

 

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

 

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

 

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

 

2

 

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

 

 

ASSIGNOR:

ALTERIS THERAPEUTICS, INC.

 

 

	
  By:

  	
   

  	
   

  
	
  Name:
  Dr. Albert J. Wong

  
	
  Title:
  Interim President

  

 

 

ASSIGNEE:

CELLDEX THERAPEUTICS, INC.

 

 

	
  By:

  	
   

  	
   

  
	
  Name:
  Dr. Michael W. Fanger

  
	
  Title:
  President 

  

 

3

 

	
  State of

  	
  )

  
	
   

  	
  )

  	
  ss.:

  
	
  County of

  	
  )

  

 

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

 

Witness my hand and official seal.

 

	
   

  	
   

  
	
  Notary Public

  
	
   

  
	
   

  
	
  State of

  	
  )

  
	
   

  	
  )

  	
  ss.:

  
	
  County of

  	
  )

  
				

 

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

 

Witness my
hand and official seal.

 

 

	
   

  	
   

  
	
  Notary Public

  

 

4

 

SCHEDULE A

 

Registered Servicemarks and Trademarks

 

	
  Servicemark or Trademark

  	
   

  	
  U.S. or Canadian Registration No.

  	
   

  	
  Registration Date

  
	
   

  	
   

  	
   

  	
   

  	
   

  

 

Unregistered Servicemarks and Trademarks

 

	
   

  

 

Pending Servicemark or Trademark Applications

 

	
  Servicemark or Trademark

  	
   

  	
  Application No.

  	
   

  	
  Application Date

  
	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

Trade Names

 

	
   

  

 

 

URLs or Internet Domain Names

 

	
   

  

 

Pending URL or Internet Domain Name
Applications

 

	
   

  

 

General Intangibles

 

	
   

  

 

5

 

APPENDIX D

 

Assignment
of Intangible Assets

 

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

 

RECITAL

 

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

 

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

 

AGREEMENT

 

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

 

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

 

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

 

 

inconsistency between the terms of the Purchase Agreement and the terms
hereof, the terms of the Purchase Agreement shall govern.

 

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

 

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

 

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

 

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

 

2

 

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

 

ASSIGNOR:

ALTERIS THERAPEUTICS, INC.

 

 

	
  By:

  	
   

  	
   

  
	
  Name:
  Dr. Albert J. Wong

  
	
  Title:
  Interim President

  

 

 

ASSIGNEE:

CELLDEX THERAPEUTICS, INC.

 

 

	
  By:

  	
   

  	
   

  
	
  Name:
  Dr. Michael W. Fanger

  
	
  Title:
  President

  

 

3

 

	
  State of

  	
  )

  
	
   

  	
  )

  	
  ss.:

  
	
  County of

  	
  )

  

 

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

 

Witness my hand and official seal.

 

 

	
   

  	
   

  
	
  Notary Public

  
	
   

  
	
   

  
	
  State of

  	
  )

  
	
   

  	
  )

  	
  ss.:

  
	
  County of

  	
  )

  
				

 

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

 

Witness my hand and official seal.

 

 

	
   

  	
   

  
	
  Notary Public

  

 

4

 

 

 

APPENDIX E

 

	
   

  	
  

  	
  FIRM and
  AFFILIATE OFFICES

  
	
   

  	
   

  
	
   

  	
  NEW YORK

  
	
  www.duanemorris.com

  	
  LONDON

  
	
   

  	
  CHICAGO

  
	
   

  	
  HOUSTON

  
	
   

  	
  PHILADELPHIA

  
	
   

  	
  SAN DIEGO

  
	
  DRAFT 1/31/05

  	
                      ,
  2005

  	
  SAN
  FRANCISCO

  
	
   

  	
  BOSTON

  
	
   

  	
  WASHINGTON,
  DC

  
	
   

  	
  ATLANTA

  
	
   

  	
  MIAMI

  
	
   

  	
  PITTSBURGH

  
	
   

  	
  NEWARK

  
	
   

  	
  ALLENTOWN

  
	
   

  	
  WILMINGTON

  
	
  Celldex Therapeutics, Inc.

  	
  HARRISBURG

  
	
  519 Route 173 West

  	
  PRINCETON

  
	
  Bloomsbury,
  NJ 08804

  	
  WESTCHESTER

  
				

 

	
  Re:

  	
   

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

  Celldex Therapeutics, Inc. and Alteris Therapeutics, Inc.

  

 

Ladies and Gentlemen:

 

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

 

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

 

(i)                                     the
Purchase Agreement;

 

(ii)                                  the Bill of
Sale;

 

(iii)                               the
Assignment and Assumption Agreement;

 

(iv)                              the
Assignment of Intangible Assets;

 

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

 

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

 

	
  DUANE MORRIS
  LLP

  
	
  ONE LIBERTY
  PLACE PHILADELPHIA, PA 19103-7396

  	
   

  	
  PHONE:
  215.979.1000

  	
  FAX:
  215.979.1020

  
	
  PH1\1402974.3

  	
   

  	
   

  	
   

  

 

 

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

 

(viii)                        the
Transferor Closing Certificate;

 

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

 

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

 

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

 

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

 

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

 

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

 

2

 

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

 

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

 

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

 

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

 

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

 

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

 

3

 

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

 

The foregoing
opinions are subject to the following qualifications:

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

4

 

attention
or to revise or supplement such opinions should the present laws of any
jurisdiction be changed by legislative action, judicial decision, or otherwise.

 

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

 

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

 

Sincerely,

 

5

 

APPENDIX F

 

CONSULTING AGREEMENT

 

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

 

1.                                       Services.

 

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

 

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

 

 

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

 

2.                                       Compensation.

 

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

 

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

 

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

 

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

 

2

 

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

 

3.                                       Competition.

 

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

 

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

 

4.                                       Confidentiality.

 

(a)                                  The
Consultant may disclose to the Company any information that the Consultant
would normally freely disclose to other members of the scientific community at
large, whether by publication, by presentation at seminars, or in informal
scientific discussions.  However, the

 

3

 

Consultant shall not disclose to the Company
information that is proprietary to the Institution and is not generally
available to the public other than through formal technology transfer
procedures.

 

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

 

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

 

4

 

5.                                       Return
of Materials.

 

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

 

6.                                       Intellectual
Property.

 

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

 

5

 

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

 

7.                                       Term
and Termination.

 

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

 

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

 

6

 

effective upon the date not earlier than 30
days following the date of such notice as shall be specified in said notice.

 

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

 

8.                                       Miscellaneous.

 

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

 

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

 

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

 

7

 

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

 

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

 

	
   

  	
  Celldex Therapeutics, Inc.

  
	
   

  	
  519 Route 173 West

  
	
   

  	
  Bloomsbury, New Jersey 08809

  
	
   

  	
  Attn: Dr. Michael W. Fanger –
  President

  
	
   

  	
  Tel. No.: 908-475-2700

  
	
   

  	
  Fax No.: 908-713-6002

  
	
   

  	
   

  
	
   

  	
  Dr. Albert J. Wong

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Tel. No.:

  
	
   

  	
  Fax No.:

  

 

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

 

(f)                                    If
any provision of this Agreement affecting the rights or property of the
Institution is adjudicated to be invalid, unenforceable, contrary to, or
prohibited under applicable laws or regulations of any jurisdiction, then such
provision of this Agreement shall terminate as

 

8

 

of the date such adjudication is effective
and the remaining provisions shall continue in full force and effect.  If any other provision of this Agreement is adjudicated
to be invalid, unenforceable, contrary to, or prohibited under applicable laws
or regulations of any jurisdiction, such provision shall be severed and the
remaining provisions shall continue in full force and effect.

 

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

 

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

 

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

 

	
   

  	
  CELLDEX
  THERAPEUTICS, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
  Dr. Michael W. Fanger

  
	
   

  	
  Title:

  	
  President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Dr. Albert
  J. Wong

  	
   

  
						

 

9

 

APPENDIX G

 

CONSULTING
AGREEMENT

 

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

 

1.                                       Services.

 

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

 

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

 

 

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

 

2.                                       Compensation.

 

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

 

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

 

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

 

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

 

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

 

3.                                       Competition.

 

(a)                                  The
Consultant represents to the Company that the Consultant does not have any
written agreement to provide consulting services to any other party, firm, or
company in the

 

2

 

biotechnology and pharmaceutical industries
on matters relating to the Field.  During
the term of this Agreement, the Consultant shall not consult for any entity in
the biotechnology or pharmaceutical industry other than the Company on matters
relating to the research, development and commercialization of therapeutic
vaccines and antibodies that target epidermal growth factor receptor variant
III, or EGFRvIII, for the treatment of glioblastoma and other brain cancers.

 

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

 

4.                                       Confidentiality.

 

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

 

(b)                                 In
providing consulting services to the Company pursuant to this Agreement, the
Consultant may acquire information that pertains to the Company’s inventions,
products, processes, patents, patent applications, methods, formulae,
equipment, programs, developments, or plans and that is both (i) disclosed
or made known by the Company to the Consultant and (ii) identified as “proprietary”
by the Company at any time (“Proprietary Information”).  The

 

3

 

Consultant agrees not to disclose any
Proprietary Information to anyone or to use any Proprietary Information for any
purpose other than performance of consulting services pursuant to this Agreement,
without the prior written consent of the Company.

 

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

 

5.                                       Return
of Materials.

 

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

 

6.                                       Intellectual
Property.

 

(a)                                  Subject
to the terms of paragraph 6(b) below, the Consultant hereby assigns to the
Company any right, title, and interest he may have in any invention, discovery,
improvement,

 

4

 

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

 

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

 

5

 

7.                                       Term
and Termination.

 

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

 

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

 

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

 

6

 

8.                                       Miscellaneous.

 

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

 

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

 

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

 

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

 

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

 

Celldex Therapeutics, Inc.

519 Route 173 West

Bloomsbury, New Jersey 08809

Attn:  Dr. Michael
W. Fanger – President

Tel. No.: 
908-475-2700

Fax No.: 
908-713-6002

 

7

 

Donald M. O’Rourke, M.D.

Associate Professor

Department of Neurosurgery

Silverstein 3

The Hospital of the University of
Pennsylvania

3400 Spruce Street

Philadelphia, Pennsylvania  19104

Tel. No.: 
215-662-3490

Fax No.: 
215-349-5534

 

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

 

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

 

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

 

8

 

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

 

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

 

 

	
   

  	
  CELLDEX
  THERAPEUTICS, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
  Dr. Michael
  W. Fanger

  
	
   

  	
  Title:

  	
  President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Dr. Donald
  M. O’Rourke

  	
   

  
					

 

9

 

APPENDIX H

 

                    ,
2005

 

Alteris Therapeutics, Inc.

416 South 10th Street

Philadelphia, PA 19147

 

Re:                               Celldex
Therapeutics, Inc.

 

Gentlemen:

 

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

 

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

 

(i)                                     the
Purchase Agreement;

 

(ii)                                  the Bill of
Sale;

 

(iii)                               the
Assignment of Intangible Assets;

 

(iv)                              the
Trademark Assignment Agreement;

 

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

 

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

 

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

 

(viii)                        the
Acquirer Closing Certificate;

 

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

 

 

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

 

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

 

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

 

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

 

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

 

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

 

(i)                                     The Company
is a corporation duly incorporated, validly existing and in good standing under
the laws of the State of Delaware, has all requisite corporate power and

 

2

 

authority to
carry on its business as now being conducted, and is qualified to do business
and is in good standing in all jurisdictions in which the conduct of its
business requires such qualification.

 

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

 

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

 

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

 

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

 

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

 

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

 

3

 

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

 

The foregoing opinions are subject to the
following qualifications:

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

4

 

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

 

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

 

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

 

Very truly yours,

 

5

 

APPENDIX I

 

TERM SHEET
FOR SPONSORED RESEARCH AGREEMENT

 

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

 

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

 

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

 

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

 

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

 

5.               Additional
Agreements.  The funding of the SRA
will be in accordance with the prevailing policies governing sponsored research
of the Institution (contingent on the establishment of a reasonably
satisfactory relationship between the Acquirer and the Institution) where the
work is to be performed, particularly with regard to the ownership of
intellectual property rights and terms for licensing of any inventions,
materials, intellectual property and know-how resulting from work conducted under
the SRA.  In the event that a reasonably
satisfactory relationship between Acquirer and the Institution is not
established as set forth above, Acquirer shall negotiate in good faith with Dr. Wong
regarding a substitute arrangement to provide funding for the research,
development and advancement of the SRA Technology. In addition, in the event
that, in the reasonable opinion of Acquirer’s patent counsel, the SRA

 

 

Technology is
deemed to infringe the patent or other proprietary rights of a third party or
third parties, Acquirer’s obligations under the SRA, including but not limited
to, its obligation  to provide funding
under Section 3 above, shall be suspended immediately and the SRA shall
terminate by its terms upon the expiration of [90] days from such date, which
such period shall be subject to extension upon mutual agreement of the parties.
Notwithstanding the foregoing, if, within such [90] day period, or any
extension thereof, Dr. Wong provides evidence to Acquirer, including any
evidence relating to the modification of the SRA Technology, that, in the
reasonable opinion of Acquirer’s patent counsel, indicates that the SRA
Technology does not infringe the patent and/or other proprietary rights of any
third party, then the Acquirer’s obligations under the SRA including, without
limitation, its obligation  to provide
the funding for the SRA Technology set forth in Section 3 above, shall be
immediately reinstated and the SRA shall remain in full force and effect. The
parties acknowledge that any such suspension of Acquirer’s obligations under
the SRA and any subsequent termination of the SRA, will be subject to the
notice and dispute resolution provisions to be set forth in the SRA.

 

 

APPENDIX J

 

ALTERIS THERAPEUTICS, INC

(A Development Stage
Company)

 

BALANCE
SHEETS ET

(in actual dollars)

 

	
   

  	
   

  	
  September

  30, 2004

  	
   

  
	
  Current
  Assets:

  	
   

  	
   

  	
   

  
	
  Cash and
  cash equivalents

  	
   

  	
  $

  	
  4,278

  	
   

  
	
  Other
  current assets

  	
   

  	
  $

  	
  6,688

  	
   

  
	
  Total current assets

  	
   

  	
  $

  	
  10,966

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Property and
  equipment:

  	
   

  	
  $

  	
  9,000

  	
   

  
	
  Machinery
  and equipment

  	
   

  	
  $

  	
  (1,425

  	
  )

  
	
  Less:
  accumulated depreciation and amortization

  	
   

  	
  $

  	
  7,575

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Total Assets

  	
   

  	
  $

  	
  18,541

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  LIABILITIES
  AND STOCKHOLDER’S EQUITY

  	
   

  	
   

  	
   

  
	
  Current
  liabilities:

  	
   

  	
   

  	
   

  
	
  Accounts payable

  	
   

  	
  $

  	
  4,140

  	
   

  
	
  Accrued interest payable

  	
   

  	
  $

  	
  64,740

  	
   

  
	
  Accrued liabilities

  	
   

  	
  $

  	
  34,630

  	
   

  
	
  Total current liabilities

  	
   

  	
  $

  	
  103,510

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Commitments
  and Contingencies

  	
   

  	
   

  	
   

  
	
  Notes Payable: Ben Franklin Technology
  Partner

  	
   

  	
  $

  	
  500,000

  	
   

  
	
  Notes Payable: BioAdvance

  	
   

  	
  $

  	
  313,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Stockholder’s
  equity:

  	
   

  	
   

  	
   

  
	
  Common Stock

  	
   

  	
  $

  	
  104

  	
   

  
	
  Additional
  paid in capital at September 30, 2004

  	
   

  	
  $

  	
  14,163

  	
   

  
	
  Accumulated
  Deficit

  	
   

  	
  $

  	
  (532,035

  	
  )

  
	
  Net Income

  	
   

  	
  $

  	
  (380,200

  	
  )

  
	
  Total Equity

  	
   

  	
  $

  	
  (897,969

  	
  )

  
	
  Total
  Liabilities and Stockholders’ Equity

  	
   

  	
  $

  	
  18,541

  	
   

  

 

 

APPENDIX K

 

 

Form of Transferor
Affiliate Letter

 

 

Gentlemen:

 

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

 

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

 

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

 

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

 

 

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

 

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

 

Very truly yours,

 

2

 

ANNEX I

TO APPENDIX K

 

	
  [Name]

  	
   

  	
  [Date]

  

 

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

 

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

 

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

 

	
  Very truly
  yours,

  	
   

  
	
   

  
	
  [Space to be
  provided for description of securities]

  	
   

  
			

 

3Exhibit 10.11

 

CELLDEX THERAPEUTICS,
INC.

2005
EQUITY INCENTIVE PLAN

 

Section 1.                                            Purpose of the Plan.
The purpose of the Plan is to aid Celldex
Therapeutics, Inc. and any Participating Company in securing and retaining
Directors, Officers, Consultants, and other Employees and to motivate such
persons to exert their best efforts on behalf of the Participating Company
Group.

 

Section 2.                                            Definitions and Construction. Whenever used herein, the following terms
shall have their respective meanings set forth below:

 

(a)                                  “Affiliate” means (i) an
entity, other than a Parent Company, that directly, or indirectly through one
or more intermediary entities, controls the Company or (ii) an entity,
other than a Subsidiary Company, that is controlled by the Company directly, or
indirectly through one or more intermediary entities. For this purpose, the
term “control” (including the term “controlled by”) means the possession,
direct or indirect, of the power to direct or cause the direction of the
management and policies of the relevant entity, whether through the ownership
of voting securities, by contract or otherwise; or shall have such other
meaning assigned such term for the purposes of registration on Form S-8
under the Securities Act.

 

(b)                                 “Award” means any Option, Stock
Appreciation Right, Restricted Stock, Restricted Stock Unit, Performance Share,
Performance Unit, Deferred Stock Award, Other Stock-based Award or Deferred
Compensation Award granted under the Plan.

 

(c)                                  “Award Agreement” means a written agreement
between the Company and a Participant setting forth the terms, conditions and
restrictions of the Award granted to the Participant. An Award Agreement may be
an “Option Agreement,” a “Stock Appreciation Right Agreement,” a “Restricted
Stock Agreement,” a “Restricted Stock Unit Agreement,” a “Performance Share
Agreement,” a “Performance Unit Agreement,” a “Deferred Stock Award Agreement,”
a “Deferred Compensation Award Agreement” and such other cash agreement or “Stock-based
Award Agreement” containing such terms and conditions as shall be determined by
the Committee from time to time.

 

(d)                                 “Board” means the Board of Directors of the
Company.

 

(e)                                  “Cashless Exercise” shall have the meaning
set forth in Section 6(d).

 

(f)                                    “Cause” shall have the meaning set forth in
Section 6(h).

 

(g)                                 “Change in Control” means, unless otherwise
defined by the Participant’s Award Agreement or contract of employment or
service, the occurrence of any of the following:

 

(i)                                     An
acquisition (other than directly from the Company) of any voting securities of
the Company (the “Voting Securities”) by any “Person” (as the term “person” is
used for purposes of Section 13(d) or 14(d) of the Exchange Act)
immediately after which such Person has “Beneficial Ownership” (within the

 

 

meaning of Rule 13d-3 promulgated
under the Exchange Act) of 20% or more of the combined voting power of the
Company’s then outstanding Voting Securities; provided, however, that in
determining whether a Change of Control has occurred, voting securities which
are acquired in a “Non-Control Acquisition” (as hereinafter defined) shall not
constitute an acquisition which would cause a Change of Control.

 

A “Non-Control Acquisition” shall mean an
acquisition of Voting Securities by (1) an employee benefit plan (or a
trust forming a part thereof) maintained by (x) the Company or (y) any company
or other Person of which a majority of its voting power or its equity
securities or equity interest is owned directly or indirectly by the Company (a
“Subsidiary”), (2) any Parent Company, the Company or any Subsidiary, or (3) any
Person in connection with a Non-Control Transaction (as defined below);

 

(ii)                                  The individuals who,
as of the Effective Date, are members of the Board (the “Incumbent Board”),
cease for any reason to constitute at least 66 2/3% of the Board; provided,
however, that if the election, or nomination for election by the Company’s
shareholders, of any new director was approved by a vote of at least 66 2/3% of
the Incumbent Board, such new director shall be considered as a member of the
Incumbent Board; provided, further, however, that no individual shall be
considered a member of the Incumbent Board if such individual initially assumed
office as a result of either an actual or threatened “Election Contest” (as
described in Rule 14a-11 promulgated under the Exchange Act) or
other actual or threatened solicitation of proxies or consents by or on behalf
of a Person other than the Board (a “Proxy Contest”) including by reason of any
agreement intended to avoid or settle any Election Contest or Proxy Contest; or

 

(iii)                               Approval
of the Company’s shareholders of: (1) a merger, consolidation or
reorganization involving the Company, unless (i) the
shareholders of the Company, immediately before such merger, consolidation or
reorganization, own, directly or indirectly immediately following such merger,
consolidation or reorganization, at least 66 2/3% of the combined voting power
of the outstanding Voting Securities of the company resulting from such merger,
consolidation or reorganization (the “Surviving Company”) in substantially the
same proportion as their ownership of the Voting Securities immediately before
such merger, consolidation or reorganization, (ii) the individuals who
were members of the Incumbent Board immediately prior to the execution of the
agreement providing for such merger, consolidation or reorganization constitute
at least 66 2/3% of the members of the board of directors of the Surviving
Company, and (iii) no Person, other than the Company, any Subsidiary, any
employee benefit plan (or any trust forming a part thereof) maintained by the
Company, the Surviving Company or any subsidiary thereof, or any Person who,
immediately prior to such merger, consolidation or reorganization had
Beneficial Ownership of 20% or more of the then outstanding Voting Securities
of the Company, has Beneficial Ownership of 20% or more of the combined voting
power of the

 

2

 

Surviving Company’s then outstanding voting
securities (a transaction described in clause (i) through
(iii) shall herein be referred to as a “Non-Control Transaction”); (2) a
complete liquidation or dissolution of the Company; or (3) an agreement
for the sale or other disposition of all or substantially all of the assets of
the Company to any Person (other than a transfer to a Subsidiary).

 

Notwithstanding the foregoing, a Change of Control shall not be deemed
to occur solely because any Person (the “Subject Person”) acquired Beneficial
Ownership of more than the permitted amount of the outstanding Voting
Securities as a result of the acquisition of Voting Securities by the Company
which, by reducing the number of Voting Securities outstanding, increases the
proportional number of shares Beneficially Owned by the Subject Person,
provided that if a Change of Control would occur (but for the operation of this
sentence) as a result of the acquisition of Voting Securities by the Company,
and after such share acquisition, the Subject Person becomes the Beneficial
Owner of any additional Voting Securities which increases the percentage of the
then outstanding Voting Securities Beneficially Owned by the Subject Person,
then a Change of Control shall occur.

 

(h)                                 “Code” means the Internal Revenue Code of
1986, as amended, and any applicable regulations promulgated thereunder.

 

(i)                                     “Committee” means the Company’s
Compensation Committee and such other committee or subcommittee of the Board,
if any, duly appointed to administer the Plan and having such powers in each
instance as shall be specified by the Board. The Committee shall have at least
two members, each of whom shall be a “non-employee director” as defined in Rule 16b-3
under the Exchange Act and an “outside director” as defined in Section 162(m)
of the Code and the regulations thereunder, and, if
applicable, meet the independence requirements of the United States Securities
and Exchange Commission and any applicable stock exchange, quotation system or
other self-regulatory organization on which the Stock is traded. If, at any time,
there is no committee of the Board then authorized or properly constituted to
administer the Plan, the Board shall exercise all of the powers of the
Committee granted herein.

 

(j)                                     “Company” means Celldex
Therapeutics, Inc., a Delaware corporation, or any successor company
thereto.

 

(k)                                  “Consultant” means a person engaged to
provide consulting or advisory services (other than as an Employee or a member
of the Board) to a Participating Company, provided that the identity of such
person, the nature of such services or the entity to which such services are
provided would not preclude the Company from offering or selling securities to
such person pursuant to the Plan in reliance on registration on a Form S-8
Registration Statement under the Securities Act.

 

(l)                                     “Covered Employee” shall have the meaning
given to such term in Section 162(m) of the Code.

 

(m)                               “Deferral Period” shall have the meaning
set forth in Section 11(a).

 

(n)                                 “Deferred Compensation Award” means an
award granted to a Participant pursuant to Section 13 of the Plan.

 

3

 

(o)                                 “Deferred Stock Award” means an award of
Stock granted to a Participant pursuant to Section 11 of the Plan.

 

(p)                                 “Director” means a member of the Board.

 

(q)                                 “Disability” means a condition causing a
Participant to be disabled within the meaning of Section 409A(a)(2)(C) of the Code.

 

(r)                                    “Dividend Equivalent” means a credit, made
at the discretion of the Committee or as otherwise provided by the Plan, to the
account of a Participant in an amount equal to the cash dividends paid on one
share of Stock for each share of Stock represented by an Award held by such
Participant.

 

(s)                                  “Effective Date” means May     ,
2005, the date that the Plan is approved by the holders of a majority of shares
of the outstanding Stock of the Company.

 

(t)                                    “Elective Deferred Period” shall have the
meaning set forth in Section 11(b)(v).

 

(u)                                 “Employee” means any person treated as an
employee (including an Officer or a member of the Board who is also treated as
an employee) in the records of a Participating Company and, with respect to any
Incentive Stock Option granted to such person, who is an employee for purposes
of Section 422 of the Code; provided, however, that neither service as a
member of the Board nor payment of a director’s fee shall be sufficient to
constitute employment for purposes of the Plan. For purposes of the Plan, the
Committee shall determine in good faith and in the exercise of its discretion
whether an individual has become or has ceased to be an Employee and the
effective date of such individual’s employment or termination of employment, as
the case may be. For purposes of an individual’s rights, if any, under the Plan
as of the time of the Committee’s determination, all such determinations by the
Committee shall be final, binding and conclusive, notwithstanding that the
Committee or any court of law or governmental agency subsequently makes a
contrary determination.

 

(v)                                 “Exchange Act” means the Securities
Exchange Act of 1934, as amended.

 

(w)                               “Fair Market Value” means, as of any date,
the value of a share of Stock or other property as determined by the Committee,
in its discretion, or by the Company, in its discretion, if such determination
is expressly allocated to the Company herein, subject to the following:

 

(i)                                     Except
as otherwise determined by the Committee, if, on such date, the Stock is listed
on a national or regional securities exchange or market system, the Fair Market
Value of a share of Stock shall be the closing price of a share of Stock (or
the mean of the closing bid and asked prices of a share of Stock if the Stock
is so quoted instead) as quoted on the Nasdaq
National Market, the Nasdaq  SmallCap
Market or such other national or regional securities exchange or market system
constituting the primary market for the Stock, as reported in The Wall Street
Journal or such other source as the Company deems reliable.  If the

 

4

 

relevant date does not fall on a day on which
the Stock has traded on such securities exchange or market system, the date on
which the Fair Market Value shall be established shall be the last day on which
the Stock was so traded prior to the relevant date, or such other appropriate
day as shall be determined by the Committee, in its discretion.

 

(ii)                                  Notwithstanding the
foregoing, the Committee may, in its discretion, determine the Fair Market
Value on the basis of the opening, closing, high, low or average sale price of
a share of Stock or the actual sale price of a share of Stock received by a
Participant, on such date, the preceding trading day or the next succeeding
trading day. The Committee may vary its method of determination of the Fair
Market Value as provided in this Section for different purposes under the
Plan.

 

(iii)                               If, on such date, the
Stock is not listed on a national or regional securities exchange or market
system, the Fair Market Value of a share of Stock shall be as determined by the
Committee in good faith without regard to any restriction other than a
restriction which, by its terms, will never lapse.

 

(x)                                   “Full Value Award” means any of the
following types of Awards to the extent such Awards are settled in shares of
Stock:  Restricted Stock; Restricted
Stock Units; Performance Shares; Performance Units; Deferred Stock Awards; and
Other Stock-based Awards.

 

(y)                                 “Incentive Stock Option” means an Option
intended to be (as set forth in the Award Agreement) and which qualifies as an
incentive stock option within the meaning of Section 422(b) of the
Code.

 

(z)                                   “Insider” means an Officer, a Director or
any other person whose transactions in Stock are subject to Section 16 of
the Exchange Act.

 

(aa)                            “Nonqualified Stock Option” means an Option
not intended to be (as set forth in the Award Agreement) or not qualifying as
an incentive stock option within the meaning of Section 422(b) of the
Code.

 

(bb)                          “Officer” means any person designated by
the Board as an officer of the Company.

 

(cc)                            “Option” means the right to purchase Stock at a stated price
for a specified period of time granted to a Participant pursuant to Section 6
of the Plan. An Option may be either an Incentive Stock Option or a
Nonqualified Stock Option.

 

(dd)                          “Option Expiration Date” shall have the
meaning set forth in Section 6(f).

 

(ee)                            “Other Stock-based Awards” means awards
that are valued in whole or in part by reference to or are otherwise based on
the Stock, including without limitation, convertible debentures, but excluding
Options, Restricted Stock Awards, Restricted Stock Units,

 

5

 

Performance Awards, Stock Appreciation Rights, Deferred Stock Awards
and Deferred Compensation Awards.

 

(ff)                                “Parent Company” means any present or
future “parent company” of the Company, as defined in Section 424(e) of
the Code.

 

(gg)                          “Participant” means any eligible person
under the Plan who has been granted one or more Awards.

 

(hh)                          “Participating Company” means the Company
or any Subsidiary Company or Affiliate.

 

(ii)                                  “Participating Company Group” means, at any
point in time, all entities collectively which are then Participating
Companies.

 

(jj)                                  “Performance Award” means an Award of
Performance Shares or Performance Units.

 

(kk)                            “Performance Award Formula” means, for any
Performance Award, a formula or table established by the Committee pursuant to Section 10
of the Plan which provides the basis for computing the value of a Performance
Award at one or more threshold levels of attainment of the applicable
Performance Goal(s) measured as of the end of the applicable Performance
Period.

 

(ll)                                  “Performance Goal” means a performance goal
established by the Committee pursuant to Section 10 of the Plan.

 

(mm)                      “Performance Measure” shall have the
meaning set forth in Section 10(d).

 

(nn)                          “Performance Period” means a period
established by the Committee pursuant to Section 10(c) of the Plan at
the end of which one or more Performance Goals are to be measured.

 

(oo)                          “Performance Share” means a bookkeeping
entry representing a right granted to a Participant pursuant to Section 10
of the Plan to receive a payment equal to the Fair Market Value of a share of
Stock, based upon a Performance Award Formula.

 

(pp)                          “Performance Targets” shall have the meaning set forth in Section 10(d).

 

(qq)                          “Performance Unit” means a bookkeeping
entry representing a right granted to a Participant pursuant to Section 10
of the Plan to receive a payment of up to $100, as determined by the Committee,
based upon a Performance Award Formula.

 

(rr)                                “Plan” means the Company’s 2005 Equity
Incentive Plan.

 

6

 

(ss)                            “Predecessor Plan” means each of the
Company’s 2003 Long-Term Incentive Stock Plan.

 

(tt)                                “Restricted Stock Award” means an Award of
Restricted Stock.

 

(uu)                          “Restricted Stock” means Stock granted to a
Participant pursuant to Section 8 of the Plan.

 

(vv)                          “Restricted Stock Unit” or “Stock
Unit” means a bookkeeping entry representing a right granted to a
Participant pursuant to Section 9 of the Plan, to receive a share of Stock
on a date determined in accordance with the provisions of Section 9 and
the Participant’s Award Agreement.

 

(ww)                      “Restriction Period” means the period
established in accordance with Section 8 of the Plan during which shares
subject to a Restricted Stock Award are subject to Vesting Conditions.

 

(xx)                              “Rule 16b-3” means Rule 16b-3
under the Exchange Act, as amended from time to time, or any successor rule or
regulation.

 

(yy)                          “SAR” or “Stock
Appreciation Right” means a bookkeeping entry representing, for each
share of Stock subject to such SAR, a right granted to a Participant pursuant
to Section 7 of the Plan to receive payment of an amount equal to the
excess, if any, of the Fair Market Value of a share of Stock on the date of
exercise of the SAR over the exercise price.

 

(zz)                              “Section 162(m)” means Section 162(m)
of the Code.

 

(aaa)                      “Securities Act” means the Securities Act
of 1933, as amended.

 

(bbb)                   “Service” means a Participant’s employment
or service with the Participating Company Group, whether in the capacity of an
Employee, Officer, Director or Consultant. Unless otherwise provided by the
Committee, a Participant’s Service shall not be deemed to have terminated
merely because of a change in the capacity in which the Participant renders
such Service or a change in the Participating Company for which the Participant
renders such Service, provided that there is no interruption or termination of
the Participant’s Service. Furthermore, a Participant’s Service shall not be
deemed to have terminated if the Participant takes any military leave, sick
leave, or other bona fide leave of absence that is approved by the Company and
otherwise complies with the provisions of Section 14 of the Plan. A
Participant’s Service shall be deemed to have terminated either upon an actual
termination of employment or service with the Participating Company Group or
upon the entity for which the Participant performs Service ceasing to be a
Participating Company. Subject to the foregoing, the Company, in its
discretion, shall determine whether the Participant’s Service has terminated
and the effective date of such termination.

 

(ccc)                      “Spread” shall have the meaning set forth
in Section 21(a)(3).

 

7

 

(ddd)                   “Stock” means the common stock of the
Company, as adjusted from time to time in accordance with Section 4(c) of
the Plan.

 

(eee)                      “Stock Unit” means a bookkeeping entry
representing a right granted to a Participant pursuant to Section 13 of
the Plan to receive a share of Stock on a date determined in accordance with
the provisions of Section 13 and the Participant’s Award Agreement, if
any.

 

(fff)                            “Subsidiary Company” means any present or
future “subsidiary company” of the Company, as defined in Section 424(f) of
the Code.

 

(ggg)                   “Ten Percent Owner” or “10% Owner” means a
Participant who, at the time an Option is granted to the Participant, owns
stock possessing more than ten percent (10%) of the total combined voting power
of all classes of stock of a Participating Company (other than an Affiliate)
within the meaning of Section 422(b)(6) of the Code.

 

(hhh)                   “Vesting Conditions” mean those conditions
established in accordance with Section 8 or Section 9 of the Plan
prior to the satisfaction of which shares subject to a Restricted Stock Award
or Restricted Stock Unit Award, respectively, remain subject to forfeiture or a
repurchase option in favor of the Company upon the Participant’s termination of
Service.

 

Captions and titles contained herein are for convenience only and shall
not affect the meaning or interpretation of any provision of the Plan. Except
when otherwise indicated by the context, the singular shall include the plural
and the plural shall include the singular. Use of the term “or” is not intended
to be exclusive, unless the context clearly requires otherwise.

 

Section 3.                                            Administration.

 

(a)                                  The Plan shall be
administered by the Committee. All questions of interpretation of the Plan or
of any Award shall be determined by the Committee, and such determinations
shall be final and binding upon all persons having an interest in the Plan or
such Award. A majority of the whole Committee present at a meeting at which a
quorum is present, or an act approved in writing by all members of the
Committee, shall be an act of the Committee. The Committee shall have full
power and authority, subject to such resolutions not inconsistent with the
provisions of the Plan as may from time to time be issued or adopted by the
Board, to grant Awards to Participants, pursuant to the provisions of the Plan.
The Committee shall also interpret the provisions of the Plan and any Award
issued under the Plan (and any agreements relating thereto) and supervise the
administration of the Plan.

 

(b)                                 The Committee shall: (i) select the Participants to whom Awards may from
time to time be granted hereunder; (ii) determine whether Incentive Stock
Options, Nonqualified Stock Options, Stock Appreciation Rights, Restricted
Stock, Deferred Stock Awards, Restricted Stock Units, Performance Shares,
Performance Units, Other Stock-based Awards, or Deferred Compensation Awards,
or a combination of the foregoing, are to be granted hereunder; (iii) determine
the number of shares of Stock to be covered by each Award granted hereunder; (iv) determine
the terms, conditions and restrictions applicable to each Award (which need not
be identical) and any shares acquired pursuant thereto, including, without
limitation, (A) the exercise or purchase price of Stock purchased pursuant
to any Award, (B) the method of

 

8

 

payment for Stock purchased pursuant to any Award, (C) the method
for satisfaction of any tax withholding obligation arising in connection with
any Award, including by the withholding or delivery of shares of Stock, (D) the
timing, terms and conditions of the exercisability or
vesting of any Award or any shares acquired pursuant thereto, (E) the
Performance Award Formula and Performance Goals applicable to any Award and the
extent to which such Performance Goals have been attained, (F) the time of
the expiration of any Award, (G) the effect of the Participant’s
termination of Service on any of the foregoing, and (H) all other terms,
conditions and restrictions applicable to any Award or Stock acquired pursuant
thereto not inconsistent with the terms of the Plan; (v) determine
whether, to what extent and under what circumstances Awards may be settled in
cash; (vi) determine whether, to what extent, and under what circumstances
Stock and other amounts payable with respect to an Award under this Plan shall
be deferred either automatically or at the election of the Participant; and (vii) determine
whether, to what extent, and under what circumstances Option grants and/or
other Awards under the Plan are to be made, and operate, on a tandem basis.

 

(c)                                  The Chief Executive
Officer and the Chief Financial Officer or any other Officer designated by the
Committee shall have the authority to act on behalf of the Company with respect
to any matter, right, obligation, determination or election which is the
responsibility of or which is allocated to the Company herein. The Board or the
Committee may, in its discretion, delegate to a committee comprised of one or
more Officers the authority to grant one or more Awards, without further
approval of the Board or the Committee, to any Employee, other than a person
who, at the time of such grant, is an Insider; provided, however, that (i) such Awards shall not be granted for shares of
Stock in excess of the maximum aggregate number of shares of Stock authorized
for issuance pursuant to Section 4, (ii) the exercise price per share
of each such Award which is an Option or Stock Appreciation Right shall be not
less than the Fair Market Value per share of the Stock on the effective date of
grant (or, if the Stock has not traded on such date, on the last day preceding
the effective date of grant on which the Stock was traded), and (iii) each
such Award shall be subject to the terms and conditions of the appropriate
standard form of Award Agreement approved by the Board or the Committee and
shall conform to the provisions of the Plan and such other guidelines as shall
be established from time to time by the Board or the Committee.

 

(d)                                 With respect to
participation by Insiders in the Plan, at any time that any class of equity
security of the Company is registered pursuant to Section 12 of the
Exchange Act, the Plan shall be administered in compliance with the
requirements, if any, of Rule 16b-3.

 

(e)                                  No member of the
Committee shall be liable for any action or determination made in good faith
with respect to the Plan or any Award thereunder.

 

Notwithstanding the foregoing, without the affirmative vote of holders
of a majority of the shares of Stock cast in person or by proxy at a meeting of
the shareholders of the Company at which a quorum representing a majority of
all outstanding shares of Stock is present or represented by proxy, the Board
shall not approve a program providing for either (i) the
cancellation of outstanding Options or SARs and the
grant in substitution therefore of new Options or SARs
having a lower exercise price or (ii) the amendment of outstanding Options
or SARs to reduce the exercise price thereof. This
paragraph shall not be construed to apply to “issuing or assuming

 

9

 

a stock option in
a transaction to which section 424(a) applies,” within the meaning of
Section 424 of the Code.

 

Section 4.                                            Stock Subject to the Plan;
Individual Limitations on Awards.

 

(a)                                  Subject to adjustment
as provided in subsections (b) and (c) below, the maximum aggregate
number of shares of Stock that may be issued under the Plan shall be 1,500,000
shares and shall consist of (i) authorized but unissued shares, (ii) or reacquired shares (treasury)
of Stock, or (iii) any combination thereof. Notwithstanding the foregoing,
no more than ten percent (10%) of the maximum aggregate number of shares of
Stock that may be issued under the Plan, shall be issued pursuant to the exercise  or
settlement of  Full Value Awards.

 

If an outstanding Award for any reason expires or is terminated or
canceled without having been exercised or settled in full, or if shares of
Stock acquired pursuant to an Award subject to forfeiture or repurchase are
forfeited or repurchased by the Company at the Participant’s purchase price,
the shares of Stock allocable to the terminated portion of such Award or such
forfeited or repurchased shares of Stock shall again be available for issuance
under the Plan. Shares of Stock shall not be deemed to have been issued
pursuant to the Plan (i) with respect to any
portion of an Award that is settled in cash or (ii) to the extent such
shares are withheld or reacquired by the Company in satisfaction of tax
withholding obligations pursuant to Section 19. Upon payment in shares of
Stock pursuant to the exercise of a SAR, the number of shares available for
issuance under the Plan shall be reduced only by the number of shares actually
issued in such payment. If the exercise price of an Option is paid by tender to
the Company, or attestation to the ownership, of shares of Stock owned by the
Participant, the number of shares available for issuance under the Plan shall
be reduced by the net number of shares for which the Option is exercised. The
maximum number of shares available for issuance under the Plan shall not be
reduced to reflect any dividends or dividend equivalents that are reinvested
into additional shares of Stock or credited as additional Performance Shares.
The maximum number of shares of Stock shall not be reduced by the issuance of
shares of Stock hereunder due to the assumption, conversion or substitution of
Awards made by an entity acquired by the Company. For the purposes of computing
the total number of shares of Stock granted under the Plan, where one or more
types of Awards, both of which are payable in shares of Stock, are granted in
tandem with each other, such that the exercise of one type of Award with
respect to a number of shares cancels an equal number of shares of the other,
the number of shares granted under both Awards shall be deemed to be equivalent
to the number of shares under one of the Awards.

 

(b)                                 The maximum aggregate
number of shares of Stock that may be issued under the Plan as set forth in subsection (a) above
shall be cumulatively increased from time to time by:

 

(i)                                     the number of shares of Stock authorized and remaining
available for the future grant of options under the Predecessor Plan as of the
Effective Date;

 

(ii)                                  the number of shares
of Stock subject to that portion of any option outstanding under a Predecessor
Plan as of the Effective Date which, on or after the Effective Date, expires or
is terminated or canceled for any reason without having been exercised; and

 

10

 

(iii)                               the number of shares
Stock that are withheld or reacquired by the Company on or after the Effective
Date in satisfaction of tax withholding obligations pursuant to a Predecessor
Plan.

 

Notwithstanding the foregoing, the aggregate
number of shares of Stock authorized for issuance under the Predecessor Plan
that may become authorized for issuance under the Plan pursuant to this subsection (b) shall
not exceed 2,000,000 shares. As a result, the maximum aggregate number of
shares of Stock that may be issued under the Plan, inclusive of the shares
previously issuable under the Predecessor Plan, is
3,500,000 shares.

 

The Plan shall serve as the successor to the
Predecessor Plan, and no further option grants shall be made under the
Predecessor Plan. All options outstanding under the Predecessor Plan as of the
Effective Date shall, immediately upon the Effective Date, be incorporated into
the Plan and treated as outstanding Options under the Plan. However, each
outstanding option so incorporated shall continue to be governed solely by the
terms of the documents evidencing such option. No provision of the Plan shall
be deemed to adversely affect or otherwise diminish the rights or obligations
of the holders of such incorporated options with respect to their acquisition
of shares of Stock which may exist under the terms of the Predecessor Plan
under which such incorporated option was issued. Subject to the rights of the
Participant under the incorporated option documents and Predecessor Plan, the
discretion delegated to the Committee hereunder may be exercisable with respect
to incorporated options to the same extent as it is exercisable with respect to
options originally granted under this Plan.

 

(c)                                  Subject to any
required action by the shareholders of the Company, in the event of any change
in the Stock effected without receipt of consideration by the Company, whether
through merger, consolidation, reorganization, reincorporation,
recapitalization, reclassification, stock dividend, stock split, reverse stock
split, split-up, split-off, spin-off, combination of shares, exchange of
shares, or similar change in the capital structure of the Company, or in the
event of payment of a dividend or distribution to the shareholders of the
Company in a form other than Stock (excepting normal cash dividends) that has a
material effect on the Fair Market Value of shares of Stock, appropriate
adjustments shall be made in the number and kind of shares subject to the Plan
and to any outstanding Awards and in the exercise or purchase price per share
under any outstanding Award in order to prevent dilution or enlargement of
Participants’ rights under the Plan. For purposes of the foregoing, conversion
of any convertible securities of the Company shall not be treated as “effected
without receipt of consideration by the Company.” Any fractional share
resulting from an adjustment pursuant to this subsection (c) shall be
rounded down to the nearest whole number, and in no event may the exercise or
purchase price under any Award be decreased to an amount less than the par
value, if any, of the stock subject to such Award. The Committee in its sole
discretion, may also make such adjustments in the terms of any Award to
reflect, or related to, such changes in the capital structure of the Company or
distributions as it deems appropriate, including modification of Performance
Goals, Performance Award Formulas and Performance Periods. The adjustments
determined by the Committee pursuant to this Section 4(c) shall be
final, binding and conclusive.

 

(d)                                 The maximum number of
shares of Stock with respect to which Options and/or SARs
may be granted to any Participant in any fiscal year of the Company shall be
500,000 shares.  The maximum number of
shares with respect to which Full Value Awards, in

 

11

 

the aggregate,
may be granted to any Participant in any fiscal year of the Company shall be
100,000 shares.  In connection with a
Participant’s (i) commencement of Service or (ii) promotion,
a Participant may be granted Options and/or SARs for
up to an additional 50,000 shares or may be granted Full Value Awards, in the
aggregate, for up to an additional 25,000 shares none of which shall count
against the limit set forth in the preceding sentence.  The foregoing limitations shall be adjusted
proportionately in connection with any change in the Company’s capitalization
pursuant to subsection (c) above. 
To the extent required by Section 162(m) of the Code or the
regulations thereunder, in applying the foregoing
limitations with respect to a Participant, if any Awards are canceled, the
canceled Awards shall continue to count against the maximum number of shares of
Stock with respect to which Awards may be granted to the Participant.  For this purpose, the repricing
of an Option (or in the case of a SAR, if the base amount on which the stock
appreciation is calculated is reduced to reflect a reduction in the Fair Market
Value of the Stock), if such repricing or reduction
(in the case of a SAR) is approved by the shareholders of the Company, shall be
treated as the cancellation of the existing Option or SAR and the grant of a
new Option or SAR.

 

Section 5.                                            Eligibility.

 

(a)                                  Awards may, at the
Committee’s sole discretion, be granted in the form of Options pursuant to Section 6,
SARs pursuant to Section 7, Restricted Stock
Awards pursuant to Section 8, Restricted Stock Unit Awards pursuant to Section 9,
Performance Awards pursuant to Section 10, Deferred Stock Awards pursuant
to Section 11, Other Stock-based Awards pursuant to Section 12,
Deferred Compensation Awards pursuant to Section 13, or any combination
thereof. All Awards shall be subject to the terms, conditions, restrictions and
limitations of the Plan. The Committee may, in its sole judgment, subject an
Award at any time to such other terms, conditions, restrictions and/or
limitations, (including, but not limited to, the time and conditions of
exercise and restrictions on transferability and vesting), provided they are
not inconsistent with the terms of the Plan. Awards under a particular Section of
the Plan need not be uniform and Awards under two or more Sections may be
combined into a single Award Agreement. Any combination of Awards may be
granted at one time and on more than one occasion to the same Participant.

 

(b)                                 In order to facilitate
the making of any Award to Participants who are employed or retained by the
Company outside the United States as Employees, Directors or Consultants (or
who are foreign nationals temporarily within the United States), the Committee
may provide for such modifications and additional terms and conditions (“special
terms”) in Awards as the Committee may consider necessary or appropriate to
accommodate differences in local law, policy or custom or to facilitate
administration of the Plan. The special terms may provide that the grant of an
Award is subject to (1) applicable governmental or regulatory approval or
other compliance with local legal requirements and/or (2) the execution by
the Participant of a written instrument in the form specified by the Committee,
and that in the event such conditions are not satisfied, the grant shall be
void.  The Committee may adopt or approve
sub-plans, appendices or supplements to, or amendments, restatements, or
alternative versions of, the Plan as it may consider necessary or appropriate
for purposes of implementing any special terms, without thereby affecting the
terms of the Plan as in effect for any other purpose; provided, however, no
such sub-plans, appendices or supplements to, or amendments, restatements, or
alternative versions of, the Plan shall: (i) increase
the number of available shares

 

12

 

under Section 4; (ii) cause the Plan to cease to satisfy any
conditions of Rule 16b-3 under the Exchange Act or, with respect to
Covered Employees, Section 162(m) of the Code; or (iii) revoke,
remove or reduce any vested right of a Participant without the prior written
consent of such Participant.

 

(c)                                  Unless otherwise
specifically determined by the Committee, all Awards and payments pursuant to
such Awards shall be determined in U.S. currency. The Committee shall
determine, in its discretion, whether and to the extent any payments made
pursuant to an Award shall be made in local currency, as opposed to U.S.
dollars. In the event payments are made in local currency, the Committee may
determine, in its discretion and without liability to any Participant, the
method and rate of converting the payment into local currency.

 

(d)                                 The Committee shall
have the right at any time and from time to time and without prior notice to
modify outstanding Awards to comply with or satisfy local laws and regulations
or to avoid costly governmental filings. By means of illustration, but not
limitation, the Committee may restrict the method of exercise of an Award to
facilitate compliance with applicable securities laws or exchange control
filings, laws or regulations.

 

(e)                                  No Employee in any
country shall have any right to receive an Award, except as expressly provided
for under the Plan. All Awards made at any time are subject to the prior
approval of the Committee.

 

(f)                                    Awards may be
granted only to Employees, Consultants and Directors. Notwithstanding the
foregoing, no Awards may be granted under the Plan to a director or executive
officer of a Parent Company. For purposes of the foregoing sentence, “Employees,”
“Consultants” and “Directors” shall include prospective Employees, prospective
Consultants and prospective Directors to whom Awards are granted in connection
with written offers of an employment or other service relationship with the
Participating Company Group; provided, however, that no Stock subject to any
such Award shall vest, become exercisable or be issued prior to the date on
which such person commences Service.

 

(g)                                 Awards are granted
solely at the discretion of the Committee. Eligible persons may be granted more
than one Award. However, eligibility in accordance with this Section shall
not entitle any person to be granted an Award, or, having been granted an
Award, to be granted an additional Award.

 

Section 6.                                            Options. Any
Option granted under the Plan shall be in such form as the Committee may from
time to time approve. Any such Option shall be subject to the following terms
and conditions and shall contain such additional terms and conditions, not
inconsistent with the provisions of the Plan, as the Committee shall deem
desirable.

 

(a)                                  Option Price. The purchase price per share
of the Stock purchasable under an Option shall be determined by the Committee,
but will be not less than 100% of the Fair Market Value of the Stock on the
date of the grant of the Option, as determined in accordance with procedures
established by the Committee. Notwithstanding the foregoing, the purchase price
per share of the Stock purchasable under any Incentive Stock Option granted to
any 10% Owner shall not be less then 110% of the Fair Market Value of the Stock
on the date of

 

13

 

the grant of the
Option, as determined in accordance with procedures established by the Committee.

 

(b)                                 Option Period. The term of each Option
shall be fixed by the Committee, but no Incentive Stock Option shall be
exercisable after the expiration of 10 years from the date the Option is
granted. Notwithstanding the foregoing, no Incentive Stock Option granted to a
10% Owner shall be exercisable after the expiration of five years from the date
the Option is granted.

 

(c)                                  Exercisability.

 

(i)                                     Options
shall be exercisable at such time or times as determined by the Committee at or
subsequent to the date of grant. Unless otherwise determined by the Committee
at or subsequent to the date of grant, no Option shall be exercisable until the
first anniversary date of the granting of the Option, except as provided in
subsections (f), (g), (h) or (i) of this Section 6
and subsection (a) of Section 21.

 

(ii)                                  Solely for Federal
income tax purposes, to the extent that the aggregate Fair Market Value of
Stock with respect to which Incentive Stock Options are exercisable for the
first time by a Participant during any calendar year exceeds $100,000.00 (as of
the date of grant), such Options shall be treated as Nonqualified Stock
Options. For purposes of this rule, Options shall be taken into account in the
order in which they were granted.

 

(d)                                 Method of Exercise. Options may be
exercised, in whole or in part, by giving written notice of exercise to the
Company specifying the number of shares to be purchased. Except as otherwise
provided below, payment of the exercise price for the number of shares of Stock
being purchased pursuant to any Option shall be made (i) in
cash, by check or in cash equivalent, (ii) by tender to the Company, or
attestation to the ownership, of shares of Stock owned by the Participant
having a Fair Market Value not less than the exercise price, (iii) by
delivery of a properly executed notice of exercise together with irrevocable
instructions to a broker providing for the assignment to the Company of the
proceeds of a sale or loan with respect to some or all of the shares being
acquired upon the exercise of the Option (including, without limitation,
through an exercise complying with the provisions of Regulation T as
promulgated from time to time by the Board of Governors of the Federal Reserve
System) (a “Cashless Exercise”), (iv) by such other consideration as may
be approved by the Committee from time to time to the extent permitted by
applicable law, or (v) by any combination thereof. The Committee may at
any time or from time to time grant Options which do not permit all of the
foregoing forms of consideration to be used in payment of the exercise price or
which otherwise restrict one or more forms of consideration.

 

Notwithstanding the foregoing, an Option may
not be exercised by tender to the Company, or attestation to the ownership, of
shares of Stock to the extent such tender or attestation would constitute a
violation of the provisions of any law, regulation or agreement restricting the
redemption of the Company’s stock. Unless otherwise provided by the Committee,
an Option may not be exercised by tender to the Company, or attestation to the
ownership, of

 

14

 

shares of Stock
unless such shares either have been owned by the Participant for more than six (6) months
(and not used for another Option exercise by attestation during such period) or
were not acquired, directly or indirectly, from the Company.

 

The Company reserves, at any and all times,
the right, in the Company’s sole and absolute discretion, to establish, decline
to approve or terminate any program or procedures for the exercise of Options
by means of a Cashless Exercise, including with respect to one or more
Participants specified by the Company, notwithstanding that such program or
procedures may be available to other Participants.

 

(e)                                  Restrictions on Transferability. During the
lifetime of the Participant, an Option shall be exercisable only by the
Participant or the Participant’s guardian or legal representative. Prior to the
issuance of shares of Stock upon the exercise of an Option, the Option shall
not be subject in any manner to anticipation, alienation, sale, exchange,
transfer, assignment, pledge, encumbrance, or garnishment by creditors of the
Participant or the Participant’s beneficiary, except transfer by will or by the
laws of descent and distribution. Notwithstanding the foregoing, to the extent
permitted by the Committee, in its discretion, and set forth in the Award
Agreement evidencing such Option, a Nonqualified Stock Option shall be
assignable or transferable to a “family member” of the Participant as such term
is defined in and subject to the applicable limitations, if any, described in
the General Instructions to Form S-8 Registration Statement under
the Securities Act.

 

(f)                                    Termination by Death. Except to the extent
otherwise provided by the Committee at or after the time of grant, if a
Participant’s Service terminates by reason of death, the Option may thereafter
be immediately exercised in full by the legal representative of the estate or
by the legatee of the Participant under the will of the Participant until the
expiration of the stated period of the Option (the “Option Expiration Date”).

 

(g)                                 Termination by Reason of Disability. Except
to the extent otherwise provided by the Committee at or after the time of
grant, if a Participant’s Service terminates by reason of Disability, any
Option held by such Participant may thereafter be exercised in full at any time
prior to three (3) years from the date of such termination, but in no
event later than the Option Expiration Date. Notwithstanding the foregoing, if
the Option is an Incentive Stock Option and is not exercised within 12 months
of the date the Participant’s Service is terminated by reason of the
Participant being permanently and totally disabled within the meaning of Section 22(e)(3) of the Code, the Option shall thereafter be
treated as a Nonqualified Stock Option and not an Incentive Stock Option. If
the Participant dies during the 12-month period commencing on the date
his/her Service terminates by reason of such permanent and total disability,
however, then the Option will continue to be an Incentive Stock Option until
the Option Expiration Date.

 

(h)                                 Termination for Cause. If a Participant’s
Service is terminated by reason of “Cause,” the Option to the extent unexercised
and exercisable by the Participant on the date on
which the Participant’s Service terminated, shall immediately terminate and
shall be forfeited in its entirety. For the purposes of the Plan, “Cause” shall
mean, unless otherwise provided in an Award Agreement: (i) any
gross failure by the Participant (other than by reason of Disability) to
faithfully and professionally carry out his or her duties or to comply with any
other material

 

15

 

provision of his or her employment agreement, if any, which continues
for thirty (30) days after written notice by the Participating Company for
which the Participant is performing services (the “Employer”); provided, that
the Employer does not have to provide notice in the event that the failure is
not susceptible to remedy or relates to the same type of acts or omissions as
to which notice has been given on a prior occasion; (ii) the Participant’s
dishonesty or other willful misconduct; (iii) the Participant’s conviction
of any felony or of any other crime involving moral turpitude, whether or not
relating to his or her employment; (iv) the Participant’s insobriety or
use of drugs, chemicals or controlled substances either in the course of
performing his or her duties and responsibilities for a Participating Company
or otherwise affecting the ability of Participant to perform those duties and
responsibilities; (v) the Participant’s failure to comply with a lawful
written direction of the Employer; (vi) any wanton or willful dereliction
of duties by the Participant; or (vii) breach of the Employer’s code of
conduct or insider trading policies. Notwithstanding the foregoing, in the
event that a Participant is a party to an employment agreement with the Company
or any other Participating Company that defines a termination on account of “Cause”
(or a term having similar meaning), such definition shall apply as the
definition of a termination of account of “Cause” for purposes hereof, but only
to the extent that such definition provides the Participant with greater
rights. A termination on account of Cause shall be communicated by written
notice to the Participant, and shall be deemed to occur on the date such notice
is sent to the Participant.

 

(i)                                     Other Termination. Unless otherwise
determined by the Committee at or after grant, if the Participant’s Service
terminates for any reason except Disability, death or Cause, the Option, to the
extent unexercised and exercisable by the Participant on the date on which the
Participant’s Service terminated, may be exercised by the Participant at any
time prior to the expiration of three (3) months after the date on which
the Participant’s Service terminated, but in any event no later than the Option
Expiration Date. Notwithstanding the foregoing, if such termination is by
action of the Company within 18 months following a Change of Control (other
than discharge for Cause), any unexercised portion of the Option may be
exercised by the Participant until the earlier of (x) six (6) months and
one day after such termination or (y) the Option Expiration Date.
Notwithstanding the foregoing, if the Option is not exercised within three (3) months
of the date Participant’s Service is terminated, the Option shall be treated as
a Nonqualified Option and not an Incentive Stock Option.

 

(j)                                     Extension if Exercise Prevented by Law. Notwithstanding
the foregoing, if the exercise of an Option within the applicable time periods
set forth above is prevented by the provisions of Section 22 below, the
Option shall remain exercisable until three (3) months (or such longer
period of time as determined by the Committee, in its discretion) after the
date the Participant is notified in writing by the Company that the Option is
exercisable, but in any event no later than the Option Expiration Date.

 

(k)                                  Extension if Participant Subject to Section 16(b).
Notwithstanding the foregoing, if a sale within the applicable time
periods set forth above of shares acquired upon the exercise of the Option
would subject the Participant to suit under Section 16(b) of the
Exchange Act, the Option shall remain exercisable until the earliest to occur
of (i) the tenth (10th) day following the date
on which a sale of such shares by the Participant would no longer be subject to
such suit, (ii) the one hundred and ninetieth (190th) day after the
Participant’s termination of Service, or (iii) the Option Expiration Date.

 

16

 

Section 7.                                            Stock Appreciation Rights.

 

(a)                                  Types of SARs Authorized. SARs shall be granted independently of and not in tandem
with any Option.

 

(b)                                 Exercise Price. The exercise price for each
SAR shall be established in the discretion of the Committee; provided, however,
that the exercise price per share subject to a SAR shall be not less than the
Fair Market Value of a share of Stock on the effective date of grant of the
SAR.

 

(c)                                  Exercisability and Term of SARs. SARs shall be exercisable at such time or times, or upon
such event or events, and subject to such terms, conditions, performance
criteria and restrictions as shall be determined by the Committee and set forth
in the Award Agreement evidencing such SAR; provided, however, that no SAR
shall be exercisable after the expiration of ten (10) years after the
effective date of grant of such SAR.

 

(d)                                 Exercise of SARs. Upon
the exercise (or deemed exercise pursuant to subsection (e) below) of
a SAR, the Participant (or the Participant’s legal representative or other
person who acquired the right to exercise the SAR by reason of the Participant’s
death) shall be entitled to receive payment of an amount for each share with
respect to which the SAR is exercised equal to the excess, if any, of the Fair
Market Value of a share of Stock on the date of exercise of the SAR over the exercise
price. Subject to Section 409A of the Code, payment of such amount shall
be made in cash, shares of Stock, or any combination thereof as determined by
the Committee. Unless otherwise provided in the Award Agreement evidencing such
SAR, payment shall be made in a lump sum as soon as practicable following the
date of exercise of the SAR. Subject to Section 409A of the Code, the
Award Agreement evidencing any SAR may provide for deferred payment in a lump
sum or in installments. When payment is to be made in shares of Stock, the
number of shares to be issued shall be determined on the basis of the Fair
Market Value of a share of Stock on the date of exercise of the SAR. For
purposes of Section 7, a SAR shall be deemed exercised on the date on
which the Company receives notice of exercise from the Participant or as
otherwise provided in Section 7(e).

 

(e)                                  Deemed Exercise of SARs. If,
on the date on which a SAR would otherwise terminate or expire, the SAR by its
terms remains exercisable immediately prior to such termination or expiration
and, if so exercised, would result in a payment to the holder of such SAR, then
any portion of such SAR which has not previously been exercised shall
automatically be deemed to be exercised as of such date with respect to such
portion.

 

(f)                                    Effect of Termination of Service. Subject
to earlier termination of the SAR as otherwise provided herein and unless
otherwise provided by the Committee in the grant of a SAR and set forth in the
Award Agreement, a SAR shall be exercisable after a Participant’s termination
of Service only during the applicable time period determined in accordance with
Section 6(f) through (k) (treating the SAR as if it were an Option)
and thereafter shall terminate.

 

(g)                                 Nontransferability of SARs. During
the lifetime of the Participant, a SAR shall be exercisable only by the
Participant or the Participant’s guardian or legal representative. Prior to the
exercise of a SAR, the SAR shall not be subject in any manner to

 

17

 

anticipation,
alienation, sale, exchange, transfer, assignment, pledge, encumbrance, or
garnishment by creditors of the Participant or the Participant’s beneficiary,
except transfer by will or by the laws of descent and distribution.

 

Section 8.                                            Restricted Stock Awards.

 

(a)                                  Stock and Administration. Shares of
Restricted Stock may be issued either alone or in addition to Options, Deferred
Stock Awards or other Awards granted under the Plan. The Committee shall
determine the Directors, Consultants, and Employees of the Participating
Company Group to whom, and the time or times at which, grants of Restricted
Stock will be made, the number of shares to be awarded, the time or times
within which such Restricted Stock Awards may be subject to forfeiture, and all
other conditions of the Awards. The provisions of Restricted Stock Awards need
not be the same with respect to each recipient.

 

(b)                                 Awards and Certificates. The prospective
recipient of an Award of shares of Restricted Stock shall not, with respect to
such Award, be deemed to have become a Participant, or to have any rights with
respect to such Award, until and unless such recipient shall have executed an
agreement or other instrument evidencing the Award and delivered a fully
executed copy thereof to the Company and otherwise complied with the then
applicable terms and conditions.

 

(i)                                     Each
Participant shall be issued a stock certificate in respect of shares of
Restricted Stock awarded under the Plan. Such certificate shall be registered
in the name of the Participant, and shall bear an appropriate legend referring
to the terms, conditions, and restrictions applicable to such Award,
substantially in the following form:

 

“The transferability of this certificate and
the shares of stock represented hereby are subject to the terms and conditions
(including forfeiture) of the Celldex Therapeutics, Inc.
2005 Equity Incentive Plan and an Agreement entered into between the registered
owner and Celldex Therapeutics, Inc. Copies of
such Plan and Agreement are on file in the offices of Celldex
Therapeutics, Inc”

 

The Committee shall require that the stock
certificates evidencing such shares be held in custody by the Company until the
restrictions thereon shall have lapsed, and shall require, as a condition of
any Restricted Stock Award, that the Participant shall have delivered a stock
power, endorsed in blank, relating to the Stock covered by such Award.

 

(c)                                  Restrictions and Conditions. The shares of
Restricted Stock awarded pursuant to the Plan shall be subject to the following
restrictions and conditions:

 

(i)                                     subject to the provisions of this Plan, during a period set
by the Committee commencing with the date of such Award (the “restriction
period”), the Participant shall not be permitted to sell, transfer, pledge, or
assign shares of Restricted Stock awarded under the Plan. Within these limits
the Committee may provide for the lapse of such restrictions in installments
where deemed appropriate. Notwithstanding the foregoing, or any other provision
of the Plan,

 

18

 

any Awards of Restricted Stock which vest on
the basis of the Participant’s continuous Service with the Company or any
Participating Company shall not provide for vesting which is any more rapid than
annual pro rata vesting over a three-year period and any Awards of Restricted
Stock which provide for vesting upon the attainment of Performance Goals shall
provide for a Performance Period of at least 12 months.

 

(ii)                                  Except as provided in
subsection (c)(i) of
this Section 8, the Participant shall have, with respect to the shares of
Restricted Stock, all of the rights of a Shareholder of the Company, including
the right to vote the Restricted Stock and the right to receive any cash
dividends. The Committee, in its sole discretion, may permit or require the
payment of cash dividends to be deferred and, if the Committee so determines,
reinvested in additional Restricted Stock or otherwise reinvested. Certificates
for shares of unrestricted Stock shall be delivered to the Participant promptly
after, and only after, the period of forfeiture shall expire without forfeiture
in respect of such shares of Restricted Stock.

 

(iii)                               Subject to the
provisions of subsection (d) of this Section 8, upon termination
of Service of any reason during the restriction period, all shares still
subject to restriction shall be forfeited by the Participant and reacquired by
the Company.

 

(d)                                 Effect of Termination of Service. Unless
otherwise provided by the Committee in the grant of a Restricted Stock Award
and set forth in the Award Agreement or determined by the Committee in its sole
discretion after the date of grant, if a Participant’s Service terminates for
any reason, whether voluntary or involuntary (including the Participant’s death
or Disability), then the Participant shall forfeit to the Company any
Restricted Stock pursuant to the Award which remain subject to Vesting
Conditions as of the date of the Participant’s termination of Service.

 

(e)                                  Section 83(b) Election. If a Participant
makes an election pursuant to Section 83(b) of the Code with respect
to a Restricted Stock Award, the Participant shall file, within 30 days
following the date of grant of a Restricted Stock Award, a copy of such
election with the Company and with the Internal Revenue Service, in accordance
with the regulations under Section 83 of the Code. The Committee may
provide in an Award Agreement that the Restricted Stock Award is conditioned
upon the Participant’s making or refraining from making an election with
respect to the Award under Section 83(b) of the Code.

 

Section 9.                                            Terms and Conditions of
Restricted Stock Unit Awards.

 

(a)                                  Grant of Restricted Stock Unit Awards. Restricted
Stock Unit Awards may be granted upon such conditions as the Committee shall
determine, including, without limitation, upon the attainment of one or more
Performance Goals described in Section 10(d). If either the grant of a
Restricted Stock Unit Award or the Vesting Conditions with respect to such
Award is to be contingent upon the attainment of one or more Performance Goals,
the Committee shall follow procedures substantially equivalent to those set
forth in Sections 10(c) through 10(e)(i).

 

19

 

(b)                                 Purchase Price. No monetary payment (other
than applicable tax withholding, if any) shall be required as a condition of
receiving a Restricted Stock Unit Award, the consideration for which shall be
services actually rendered to a Participating Company or for its benefit.

 

(c)                                  Vesting. Notwithstanding any other
provision of the Plan, any Awards of Restricted Stock Units which vest on the
basis of the Participant’s continuous Service with the Company or any
Participating Company shall not provide for vesting which is any more rapid
than annual pro rata vesting over a three-year period and any Awards of
Restricted Stock Units which provide for vesting upon the attainment of
Performance Goals shall provide for a Performance Period of at least 12 months.

 

(d)                                 Voting Rights, Dividend Equivalent Rights and
Distributions. Participants shall have no voting rights with respect
to shares of Stock represented by Restricted Stock Units until the date of the
issuance of such shares (as evidenced by the appropriate entry on the books of
the Company or of a duly authorized transfer agent of the Company). However,
the Committee, in its discretion, may provide in the Award Agreement evidencing
any Restricted Stock Unit Award that the Participant shall be entitled to
receive Dividend Equivalents with respect to the payment of cash dividends on
Stock having a record date prior to date on which Restricted Stock Units held
by such Participant are settled. Such Dividend Equivalents, if any, shall be
paid by crediting the Participant with additional whole Restricted Stock Units
as of the date of payment of such cash dividends on Stock. The number of
additional Restricted Stock Units (rounded to the nearest whole number) to be
so credited shall be determined by dividing (x) the amount of cash dividends
paid on such date with respect to the number of shares of Stock represented by
the Restricted Stock Units previously credited to the Participant by (y) the
Fair Market Value per share of Stock on such date. Such additional Restricted
Stock Units shall be subject to the same terms and conditions and shall be
settled in the same manner and at the same time (or as soon thereafter as
practicable) as the Restricted Stock Units originally subject to the Restricted
Stock Unit Award. In the event of a dividend or distribution paid in shares of
Stock or any other adjustment made upon a change in the capital structure of
the Company as described in Section 4(c), appropriate adjustments shall be
made in the Participant’s Restricted Stock Unit Award so that it represents the
right to receive upon settlement any and all new, substituted or additional
securities or other property (other than normal cash dividends) to which the
Participant would be entitled by reason of the shares of Stock issuable upon settlement of the Award, and all such new,
substituted or additional securities or other property shall be immediately
subject to the same Vesting Conditions as are applicable to the Award.

 

(e)                                  Effect of Termination of Service. Unless
otherwise provided by the Committee in the grant of a Restricted Stock Unit
Award and set forth in the Award Agreement or determined by the Committee in
its sole discretion after the date of grant, if a Participant’s Service
terminates for any reason, whether voluntary or involuntary (including the
Participant’s death or disability), then the Participant shall forfeit to the
Company any Restricted Stock Units pursuant to the Award which remain subject
to Vesting Conditions as of the date of the Participant’s termination of
Service.

 

(f)                                    Settlement of Restricted Stock Unit Awards. The
Company shall issue to a Participant on the date on which Restricted Stock
Units subject to the Participant’s

 

20

 

Restricted Stock Unit Award vest or on such other date determined by
the Committee, in its discretion, and set forth in the Award Agreement one (1) share
of Stock (and/or any other new, substituted or additional securities or other
property pursuant to an adjustment described in Section 9(d)) for each
Restricted Stock Unit then becoming vested or otherwise to be settled on such
date, subject to the withholding of applicable taxes. Notwithstanding the
foregoing, if permitted by the Committee and set forth in the Award Agreement,
and subject to Section 409A of the Code, the Participant may elect in
accordance with terms specified in the Award Agreement to defer receipt of all
or any portion of the shares of Stock or other property otherwise issuable to the Participant pursuant to this Section.

 

(g)                                 Nontransferability of Restricted Stock Unit Awards. Prior to
the issuance of shares of Stock in settlement of a Restricted Stock Unit Award,
the Award shall not be subject in any manner to anticipation, alienation, sale,
exchange, transfer, assignment, pledge, encumbrance, or garnishment by
creditors of the Participant or the Participant’s beneficiary, except transfer
by will or by the laws of descent and distribution. All rights with respect to
a Restricted Stock Unit Award granted to a Participant hereunder shall be
exercisable during his or her lifetime only by such Participant or the
Participant’s guardian or legal representative.

 

Section 10.                                      Terms and Conditions of
Performance Awards.

 

(a)                                  Types of Performance Awards Authorized. Performance
Awards may be in the form of either Performance Shares or Performance Units.
Each Award Agreement evidencing a Performance Award shall specify the number of
Performance Shares or Performance Units subject thereto, the Performance Award
Formula, the Performance Goal(s) and Performance Period applicable to the
Award, and the other terms, conditions and restrictions of the Award.

 

(b)                                 Initial Value of Performance Shares and Performance
Units. Unless otherwise provided by the Committee in granting a
Performance Award, each Performance Share shall have an initial value equal to
the Fair Market Value of one (1) share of Stock, subject to adjustment as
provided in Section 4(c), on the effective date of grant of the
Performance Share, and each Performance Unit shall have an initial value of one
hundred dollars ($100). The final value payable to the Participant in
settlement of a Performance Award determined on the basis of the applicable
Performance Award Formula will depend on the extent to which Performance Goals
established by the Committee are attained within the applicable Performance
Period established by the Committee.  No
Participant shall be granted within any one fiscal year of the Company,
Performance Units which in the aggregate have a maximum initial value in excess
of $1,000,000.

 

(c)                                  Establishment of Performance Period, Performance Goals
and Performance Award Formula. In granting each Performance Award,
the Committee shall establish in writing the applicable Performance Period,
Performance Award Formula and one or more Performance Goals which, when
measured at the end of the Performance Period, shall determine on the basis of
the Performance Award Formula the final value of the Performance Award to be
paid to the Participant. Unless otherwise permitted in compliance with the
requirements under Section 162(m) with respect to “performance-based
compensation,” the Committee shall establish the Performance Goal(s) and
Performance Award Formula applicable

 

21

 

to each Performance Award no later than the earlier of (a) the
date ninety (90) days after the commencement of the applicable Performance
Period or (b) the date on which 25% of the Performance Period has elapsed,
and, in any event, at a time when the outcome of the Performance Goals remains
substantially uncertain. Once established, the Performance Goals and
Performance Award Formula shall not be changed during the Performance Period.
The Company shall notify each Participant granted a Performance Award of the
terms of such Award, including the Performance Period, Performance Goal(s) and
Performance Award Formula.

 

(d)                                 Measurement of Performance Goals. Performance
Goals shall be established by the Committee on the basis of targets to be
attained (“Performance Targets”) with respect to one or more measures of
business or financial performance (each, a “Performance Measure”), subject to
the following:

 

(i)                                     Performance Measures. Performance Measures
shall have the same meanings as used in the Company’s financial statements, or,
if such terms are not used in the Company’s financial statements, they shall
have the meanings used generally in the Company’s industry. Performance
Measures shall be calculated with respect to the Company and each Subsidiary
Company consolidated therewith for financial reporting purposes or such
division or other business unit as may be selected by the Committee. For
purposes of the Plan, any financial Performance Measures applicable to a
Performance Award shall be calculated in accordance with the Company’s past
accounting practices.  Adjustments, if
any, shall be made solely for the purpose of providing a consistent basis from
period to period for the calculation of Performance Measures in order to
prevent the dilution or enlargement of the Participant’s rights with respect to
a Performance Award. Performance Measures may be one or more of the following,
as determined by the Committee: (1) cost of sales, (2) earnings per
share, (3) cash flow (including but not limited to net operating cash
flow, free cash flow and cash flow return on capital), (4) marketing and
sales expenses, (5) net income or net earnings (before or after taxes), (6) operating
margin, (7) product approvals, (8) product sales, (9) projects
in clinical or preclinical development, (10) regulatory filings, (11) research
and development efforts, (12) working capital, (13) revenue, (14) achievement
of specified milestones in the discovery, development, commercialization, or
manufacturing of one or more of the Company’s products and/or services, (15)
expense targets, (16) personal management objectives, (17) share price
(including, but not limited to, growth measures and total shareholder return),
(18) operating efficiency, (19) gross margin, (20) return measures (including,
but not limited to, return on assets, capital, equity, or sales), (21)
productivity ratios, (22) operating income, (23) net operating profit, (24)
earnings before or after interest, taxes, depreciation, and/or amortization,
(25) economic value added, (26) market share, (27) customer satisfaction, (28)
joint ventures, corporate partnerships and strategic alliances, (29) spin-offs,
split ups and the like, (30) reorganizations, (31) strategic investments or
recapitalizations, restructurings, financings (issuance of debt or equity) or refinancings, (32) acquisitions or divestitures, (33)
organizational realignments, (34) infrastructure changes, and (35) assets. The
Performance Measures and Performance Goals may

 

22

 

differ from
Participant to Participant and from Award to Award. Any criteria used may be
measured, as applicable, (A) in absolute terms, (B) in relative terms
(including, but not limited to, passage of time and/or against another company
or companies), (C) on a per-share basis, (D) against the performance
of the Company as a whole or a segment of the Company and/or (E) on a
pre-tax or after-tax basis.  Partial
achievement of the specified criteria may result in a payment or vesting
corresponding to the degree of achievement as specified in the applicable Award
Agreement.

 

(ii)                                  Performance Targets. Performance Targets
may include a minimum, maximum, target level and intermediate levels of
performance, with the final value of a Performance Award determined under the
applicable Performance Award Formula by the level attained during the
applicable Performance Period. A Performance Target may be stated as an
absolute value or as a value determined relative to a standard selected by the
Committee.

 

(e)                                  Settlement of Performance Awards.

 

(i)                                     Determination of Final Value. As soon as
practicable following the completion of the Performance Period applicable to a
Performance Award, the Committee shall certify in writing the extent to which
the applicable Performance Goals have been attained and the resulting final
value of the Award earned by the Participant and to be paid upon its settlement
in accordance with the applicable Performance Award Formula.

 

(ii)                                  Discretionary Adjustment of Award Formula. In
its discretion, the Committee may, either at the time it grants a Performance
Award or at any time thereafter, provide for the positive or negative
adjustment of the Performance Award Formula applicable to a Performance Award
granted to any Participant who is not a Covered Employee to reflect such
Participant’s individual performance in his or her position with the Company or
such other factors as the Committee may determine. If permitted under a Covered
Employee’s Award Agreement, the Committee shall have the discretion, on the
basis of such criteria as may be established by the Committee, to reduce some
or all of the value of the Performance Award that would otherwise be paid to
the Covered Employee upon its settlement notwithstanding the attainment of any
Performance Goal and the resulting value of the Performance Award determined in
accordance with the Performance Award Formula. No such reduction may result in
an increase in the amount payable upon settlement of another Participant’s
Performance Award.

 

(iii)                               Effect of Leaves of Absence. Unless
otherwise required by law, payment of the final value, if any, of a Performance
Award held by a Participant who has taken in excess of thirty (30) days in
leaves of absence during a Performance Period shall be prorated on the basis of
the number of days of the Participant’s Service during the Performance Period
during which the Participant was not on a leave of absence.

 

23

 

(iv)                              Notice to Participants. As soon as practicable following the
Committee’s determination and certification in accordance with Sections 10(e)(i) and (ii), the Company
shall notify each Participant of the determination of the Committee.

 

(v)                                 Payment in Settlement of Performance Awards. As
soon as practicable following the Committee’s determination and certification
in accordance with Sections 10(e)(i) and (ii),
and in no event later than the date required by Section 409A of the Code
to avoid a payment of deferred compensation, payment shall be made to each
eligible Participant (or such Participant’s legal representative or other
person who acquired the right to receive such payment by reason of the
Participant’s death) of the final value of the Participant’s Performance Award.
Payment of such amount shall be made in cash, shares of Stock, or a combination
thereof as determined by the Committee. Unless otherwise provided in the Award
Agreement evidencing a Performance Award, payment shall be made in a lump sum.
Subject to Section 409A of the Code, an Award Agreement may provide for
deferred payment in a lump sum or in installments. If any payment is to be made
on a deferred basis, the Committee may, but shall not be obligated to, provide
for the payment during the deferral period of Dividend Equivalents or interest.

 

(vi)                              Provisions Applicable to Payment in Shares. If payment is to be made in
shares of Stock, the number of such shares shall be determined by dividing the
final value of the Performance Award by the value of a share of Stock
determined by the method specified in the Award Agreement. Such methods may include,
without limitation, the closing market price on a specified date (such as the
settlement date) or an average of market prices over a series of trading days.
Shares of Stock issued in payment of any Performance Award may be fully vested
and freely transferable shares or may be shares of Stock subject to Vesting
Conditions as provided in Section 9(c). Any shares subject to Vesting
Conditions shall be evidenced by an appropriate Award Agreement and shall be
subject to the provisions of Sections 9(c), (d), (e) and (g) above.

 

(f)                                    Voting Rights; Dividend Equivalent Rights and
Distributions. Participants shall have no voting rights with respect
to shares of Stock represented by Performance Share Awards until the date of
the issuance of such shares, if any (as evidenced by the appropriate entry on
the books of the Company or of a duly authorized transfer agent of the
Company). However, the Committee, in its discretion, may provide in the Award
Agreement evidencing any Performance Share Award that the Participant shall be
entitled to receive Dividend Equivalents with respect to the payment of cash
dividends on Stock having a record date prior to the date on which the
Performance Shares are settled or forfeited. Such Dividend Equivalents, if any,
shall be credited to the Participant in the form of additional whole
Performance Shares as of the date of payment of such cash dividends on Stock.
The number of additional Performance Shares (rounded to the nearest whole
number) to be so credited shall be determined by dividing (x) the amount of
cash dividends paid on such date with respect to the number of shares of Stock
represented by the Performance Shares previously credited to the Participant by
(y) the Fair Market Value per share of Stock on such date. Dividend Equivalents

 

24

 

may be paid
currently or may be accumulated and paid to the extent that Performance Shares
become non-forfeitable, as determined by the Committee. Settlement of Dividend
Equivalents may be made in cash, shares of Stock, or a combination thereof as
determined by the Committee, and may be paid on the same basis as settlement of
the related Performance Share as provided in Section 10(e). Dividend
Equivalents shall not be paid with respect to Performance Units. In the event
of a dividend or distribution paid in shares of Stock or any other adjustment
made upon a change in the capital structure of the Company as described in Section 4(c),
appropriate adjustments shall be made in the Participant’s Performance Share
Award so that it represents the right to receive upon settlement any and all
new, substituted or additional securities or other property (other than normal
cash dividends) to which the Participant would entitled by reason of the shares
of Stock issuable upon settlement of the Performance
Share Award, and all such new, substituted or additional securities or other
property shall be immediately subject to the same Performance Goals as are
applicable to the Award.

 

(g)                                 Effect of Termination of Service. Unless
otherwise provided by the Committee in the grant of a Performance Award and set
forth in the Award Agreement or determined by the Committee in its sole
discretion after the date of grant, the effect of a Participant’s termination
of Service on the Performance Award shall be as follows:

 

(i)                                     Termination for Cause and Voluntary Termination of
Service by Participant. If a Participant’s Service terminates for
reason of Cause or voluntary termination before the completion of the
Performance Period applicable to the Performance Award, such Award shall be
forfeited in its entirety.

 

(ii)                                  Other Termination of Service. If the
Participant’s Service terminates for any reason except for Cause or voluntary
termination before the completion of the Performance Period applicable to the
Performance Award, the final value of the Participant’s Performance Award shall
be determined by the extent to which the applicable Performance Goals have been
attained with respect to the entire Performance Period and shall be prorated
based on the number of months of the Participant’s Service during the
Performance Period. Payment shall be made following the end of the Performance
Period in any manner permitted by Section 10(e).

 

(h)                                 Nontransferability of Performance Awards. Prior to settlement
in accordance with the provisions of the Plan, no Performance Award shall be
subject in any manner to anticipation, alienation, sale, exchange, transfer,
assignment, pledge, encumbrance, or garnishment by creditors of the Participant
or the Participant’s beneficiary, except transfer by will or by the laws of
descent and distribution. All rights with respect to a Performance Award
granted to a Participant hereunder shall be exercisable during his or her
lifetime only by such Participant or the Participant’s guardian or legal
representative.

 

Section 11.                                      Deferred Stock Awards.

 

(a)                                  Stock and Administration. Subject to the
requirements of Section 409A of the Code, Deferred Stock Awards of the
right to receive Stock that is not to be distributed to the Participant until
after a specified deferral period may be made either alone or in addition to

 

25

 

Options, Restricted Stock, or other Awards granted under the Plan. The
Committee shall determine the Participants to whom, and the time or times at
which, Deferred Stock Awards shall be awarded, the number of shares of Stock to
be awarded to any Participant, the duration of the period (the “Deferral Period”) during which, and the conditions under
which, receipt of the Stock will be deferred, and the terms and conditions of
the Deferred Stock Award in addition to those contained in subsection (b) of
this Section 11. In its sole discretion, the Committee may provide for a
minimum payment at the end of the applicable Deferral Period based on a stated
percentage of the Fair Market Value on the date of grant of the number of
shares of Stock covered by a Deferred Stock Award. The Committee may also
provide for the grant of deferred Stock upon the completion of a specified
Performance Period. The provisions of Deferred Stock Awards need not be the
same with respect to each recipient.

 

(b)                                 Terms and Conditions. Deferred Stock Awards
made pursuant to this Section 11 shall be subject to the following terms
and conditions:

 

(i)                                     Subject
to the provisions of the Plan, the shares of stock to be issued pursuant to a
Deferred Stock Award may not be sold, assigned, transferred, pledged or
otherwise encumbered during the Deferral Period or Elective Deferral Period
(defined below), where applicable, and may be subject to a risk of forfeiture
during all or such portion of the Deferral Period as shall be specified by the
Committee. At the expiration of the Deferral Period and Elective Deferral
Period, share certificates shall be delivered to the Participant, or the
Participant’s legal representative, representing the number of shares covered
by the Deferred Stock Award.

 

(ii)                                  Amounts equal to any
dividends declared during the Deferral Period with respect to the number of
shares of Stock covered by a Deferred Stock Award will be paid to the
Participant currently, or deferred and deemed to be reinvested in additional
deferred Stock or otherwise reinvested, as determined at the time of the
Deferred Stock Award by the Committee, in its sole discretion.

 

(iii)                               Subject to the
provisions of subsection (b)(iv) of this Section 11,
upon termination of the Service for any reason during the Deferral Period for a
given Deferred Stock Award, the Stock subject to such Deferred Stock Award
shall be forfeited by the Participant.

 

(iv)                              In the event of the
Participant’s Disability or death during the Deferral Period (or Elective
Deferral Period, where applicable), or in cases of special circumstances, the
Committee may, in its sole discretion, when it finds that a waiver would be in
the best interests of the Company, waive in whole or in part any or all of the
remaining deferral limitations imposed hereunder with respect to any or all of
the Participant’s Deferred Stock Award. Anything in the Plan to the contrary
notwithstanding, upon the occurrence of a Change of Control, the Deferral
Period and the Elective Deferral Period with respect to each Deferred Stock
Award shall expire immediately and all share certificates relating to such
Deferred Stock Award shall be delivered to each Participant or the Participant’s
legal representative.

 

26

 

(v)                                 Subject to Section 409A
of the Code, prior to completion of the Deferral Period, a Participant may
elect to defer further the receipt of the Deferred Stock Award for a specified
period or until a specified event (the “Elective Deferred Period”), subject in
each case to the approval of the Committee and under such terms as are
determined by the Committee, all in its sole discretion.

 

(vi)                              Each
Deferred Stock Award shall be confirmed by an Award Agreement or other
instrument executed by the Committee and by the Participant.

 

Section 12.                                      Other Stock-Based Awards.

 

(a)                                  Stock and Administration. Subject to the
requirements of Section 409A of the Code, Other Stock-based Awards may be
granted either alone or in addition to other Awards granted under the Plan.
Subject to the provisions of the Plan, the Committee shall have sole and
complete authority to determine the Participants to whom and the time or times
at which such Other Stock-based Awards shall be made, the number of shares of
the Stock to be awarded pursuant to such Other Stock-based Awards and all other
conditions of the Other Stock-based Awards. The Committee may also provide for
the grant of the Stock upon the completion of a specified Performance Period.
The provisions of Other Stock-based Awards need not be the same with respect to
each recipient.

 

(b)                                 Terms and Conditions. Other Stock-based
Awards made pursuant to this Section 12 shall be subject to the following
terms and conditions:

 

(i)                                     Subject
to the provisions of this Plan, shares or interests in shares subject to Other
Stock-based Awards made under this Section 12 may not be sold, assigned,
transferred, pledged or otherwise encumbered prior to the date on which the
shares are issued, or, if later, the date on which any applicable restriction,
performance or deferral period lapses.

 

(ii)                                  Subject to the
provisions of this Plan and the Other Stock-based Award agreement, the
recipients of Other Stock-based Awards under this Section 12 shall be
entitled to receive, currently or on a deferred basis, interest or dividends or
interest or Dividend Equivalents with respect to the number of shares or
interests therein covered by the Other Stock-based Awards, as determined at the
time of grant of the Other Stock-based Awards by the Committee, in its sole
discretion, and the Committee may provide that such amounts (if any) shall be
deemed to have been reinvested in additional Stock or otherwise reinvested.

 

(iii)                               Any Other Stock-based
Awards granted under this Section 12 and any Stock covered by any such
Other Stock-based Award may be forfeited to the extent so provided in the Other
Stock-based Award agreement, as determined by the Committee, in its sole
discretion.

 

(iv)                              In the event of the
Participant’s Disability or death, or in cases of special circumstances, the
Committee may, in its sole discretion, waive in whole or in part any or all of
the remaining limitations imposed hereunder (if any) with respect to any or all
Other Stock-based Awards. Anything in the Plan to the

 

27

 

contrary notwithstanding, any limitations
imposed with respect to any Other Stock-based Award under this Section 12,
including any provision providing for the forfeiture of any Other Stock-based
Award under any circumstance, shall terminate immediately upon a Change of
Control and the number of shares of or interests in the Stock subject to such
Other Stock-based Award shall be delivered to the Participant (or, in the case
of an Other Stock-based Award with respect to which such number is not
determinable, such number of shares of or interests in the Stock as is
determined by the Committee and set forth in the terms of such Other
Stock-based Award).

 

(v)                                 Each Other Stock-based
Award under this Section 12 shall be confirmed by an agreement or other
instrument executed by the Company and by the Participant.

 

(vi)                              The Stock or interests
therein (including securities convertible into the Stock) paid or awarded on a
bonus basis under this Section 12 shall be issued for no cash
consideration; the Stock or interests therein (including securities convertible
into the Stock) purchased pursuant to a purchase right Awarded under this Section 12
shall be priced at least at 50% of the Fair Market Value of the Stock on the
date of grant.

 

(vii)                           The Committee, in its sole
discretion, may impose such restrictions on the transferability of Other
Stock-based Awards as it deems appropriate. Any such restrictions shall be set
forth in the written agreement between the Company and the Participant with
respect to such Award.

 

(viii)                        Each Other Stock-based Award to
an Insider under this Section 12 shall be subject to all of the limitations
and qualifications that may be required by Section 16 of the Exchange Act
and all of the rules and regulations promulgated thereunder.

 

Section 13.                                      Deferred Compensation Awards.

 

(a)                                  Establishment of Deferred Compensation Award Programs.
This Section 13 shall not be effective unless and until the Committee
determines to establish a program pursuant to this Section. The Committee, in
its discretion and upon such terms and conditions as it may determine, and
subject to the requirements of Section 409A of the Code, may establish one
or more programs pursuant to the Plan under which:

 

(1)                                  A Participant
designated by the Committee who is an Insider or otherwise among a select group
of management and highly compensated Employees may irrevocably elect, prior to
a date specified by the Committee, to reduce such Participant’s compensation
otherwise payable in cash (subject to any minimum or maximum reductions imposed
by the Committee) and to be granted automatically at such time or times as
specified by the Committee one or more Awards of Stock Units with respect to
such numbers of shares of Stock as determined in accordance with the rules of
the program established by the Committee and having such other terms and
conditions as established by the Committee.

 

28

 

(2)                                  Participants
designated by the Committee who are Insiders or otherwise among a select group
of management and highly compensated Employees may irrevocably elect, prior to
a date specified by the Committee, to be granted automatically an Award of
Stock Units with respect to such number of shares of Stock and upon such other
terms and conditions as established by the Committee in lieu of:

 

(i)                                     shares
of Stock otherwise issuable to such Participant upon
the exercise of an Option;

 

(ii)                                  cash
or shares of Stock otherwise issuable to such
Participant upon the exercise of an SAR; or

 

(iii)                               cash
or shares of Stock otherwise issuable to such
Participant upon the settlement of a Performance Award.

 

(b)                                 Terms and Conditions of Deferred Compensation Awards.
Deferred Compensation Awards granted pursuant to this Section 13 may be
evidenced by Award Agreements in such form as the Committee shall from time to
time establish. Deferred Compensation Awards may incorporate all or any of the
terms of the Plan by reference and shall comply with and be subject to the
following terms and conditions:

 

(1)                                  Vesting Conditions. Deferred Compensation
Awards shall be subject to such vesting conditions as shall be determined by
the Committee.

 

(2)                                  Terms and Conditions of Stock Units.

 

(i)                                     Voting Rights; Dividend Equivalent Rights and
Distributions. Participants shall have no voting rights with respect
to shares of Stock represented by Stock Units until the date of the issuance of
such shares (as evidenced by the appropriate entry on the books of the Company
or of a duly authorized transfer agent of the Company). However, a Participant
shall be entitled to receive Dividend Equivalents with respect to the payment
of cash dividends on Stock having a record date prior to date on which Stock
Units held by such Participant are settled. Such Dividend Equivalents shall be
paid by crediting the Participant with additional whole and/or fractional Stock
Units as of the date of payment of such cash dividends on Stock. The method of
determining the number of additional Stock Units to be so credited shall be
specified by the Committee and set forth in the Award Agreement. Such
additional Stock Units shall be subject to the same terms and conditions and shall
be settled in the same manner and at the same time (or as soon thereafter as
practicable) as the Stock Units originally granted under the Award Agreement.
In the event of a dividend or distribution paid in shares of Stock or any other
adjustment made upon a change in the capital structure of the Company as
described in Section 4(c), appropriate adjustments shall be made in the
Participant’s Stock Units so that the Participant receives upon settlement any
and all new, substituted or additional securities or other property (other than
normal cash dividends) to which the Participant would entitled by reason of the
shares of Stock issuable upon settlement of the
Award.

 

29

 

(ii)                                  Settlement of Stock Units. A Participant
electing to receive an Award of Stock Units pursuant to this Section 13, shall specify at the time of such election a settlement
date with respect to such Award. The Company shall issue to the Participant as
soon as practicable following the earlier of the settlement date elected by the
Participant or the date of termination of the Participant’s Service, a number
of whole shares of Stock equal to the number of whole Stock Units granted under
the Award Agreement. Such shares of Stock shall be fully vested, and the
Participant shall not be required to pay any additional consideration (other
than applicable tax withholding) to acquire such shares. Any fractional Stock
Units shall be settled by the Company by payment in cash of an amount equal to
the Fair Market Value as of the payment date of such fractional share.

 

(iii)                               Nontransferability of Stock Units. Prior to their settlement
in accordance with the provision of the Plan, no Stock Unit shall be subject in
any manner to anticipation, alienation, sale, exchange, transfer, assignment,
pledge, encumbrance, or garnishment by creditors of the Participant or the
Participant’s beneficiary, except transfer by will or by the laws of descent
and distribution. All rights with respect to a Stock Unit granted to a
Participant hereunder shall be exercisable during his or her lifetime only by
such Participant or the Participant’s guardian or legal representative.

 

Section 14.                                      Transfer, Leave of Absence, etc.
For purposes of the Plan: (a) a transfer of an Employee from the Company
to a Participating Company, or vice versa, or from one Participating Company to
another; (b) a leave of absence, duly authorized in writing by the
Company, for military service or sickness, or for any other purposes approved
by the Company if the period of such leave does not exceed 90 days; or (c) a
leave of absence in excess of 90 days, duly authorized in writing by the
Company, shall not be deemed a termination of Service. However, if any such
leave of absence taken by a Participant exceeds ninety (90) days, then on the
one hundred eighty-first (181st) day following the commencement of such leave
any Incentive Stock Option held by the Participant shall cease to be treated as
an Incentive Stock Option and instead shall be treated thereafter as a
Nonqualified Stock Option, unless the Participant’s right to return to Service
is guaranteed by statute or contract.

 

Section 15.                                      Amendments and Termination.
The Board may amend, alter, or discontinue the Plan, but no amendment,
alteration, or discontinuation shall be made (i) which
would impair the rights of an Participant under any
Award theretofore granted, without the Participant’s consent, or (ii) which,
without the approval of the shareholders, would:

 

(a)                                  except
as is provided in Section 4 of the Plan, increase the total number of
shares available for the purpose of the Plan;

 

(b)                                 subsequent to the date
of grant, decrease the option price of any Option to less than 100% (110% in
the case of a 10% Owner of an Incentive Stock Option) of the Fair Market Value
on the date of the granting of the Option;

 

(c)                                  extend
the maximum option period under Section 6(b) of the Plan;

 

30

 

(d)                                 otherwise
materially increase the benefits accruing to Participants under, or materially
modify the requirements as to eligibility for participation in, the Plan; or

 

(e)                                  violate
any applicable law, rule or regulation enacted or promulgated by any
governmental authority, securities exchange, market system  or self regulatory organization.

 

The Committee may amend the terms of any
Award theretofore granted, prospectively or retroactively, but no such
amendment shall impair the rights of any holder without such holder’s consent.
Notwithstanding the foregoing, the Board or the Committee may, in its
discretion, amend the Plan or terms of any outstanding Award held by a person
then subject to Section 16 of the Exchange Act without the consent of any
holder in order to preserve exemptions under said Section 16 which are or
become available from time to time under rules of the Securities and
Exchange Commission.

 

Section 16.                                      Unfunded Status of the Plan.
The Plan is intended to constitute an “unfunded” plan for incentive and
deferred compensation. With respect to any payments not yet made to a
Participant by the Company, nothing contained herein shall give any such
Participant any rights that are greater than those of a general creditor of the
Company. In its sole discretion, the Committee may authorize the creation of
trusts or other arrangements to meet the obligations created under the Plan to
deliver the Stock; provided, however, that the existence of such trusts or
other arrangements is consistent with the unfunded status of the Plan.

 

Section 17.                                      Employment at Will.
Nothing contained in the Plan, or in any Award granted pursuant to the Plan, or
in any agreement made pursuant to the Plan, shall confer upon any Participant
any right with respect to continuance of employment by a Participating Company
or its subsidiaries, nor interfere in any way with the right of a Participating
Company or its subsidiaries to terminate the Participant’s employment at will
or change the Participant’s compensation at any time.

 

Section 18.                                      Additional Compensation
Arrangements. Nothing contained in this Plan shall prevent
the Board of Directors from adopting other or additional compensation
arrangements, subject to shareholder approval if such approval is required; and
such arrangements may be either generally applicable or applicable only in
specific cases.

 

Section 19.                                      Taxes.

 

(a)                                  Participants shall
make arrangements satisfactory to the Committee regarding payment of any
federal, state, or local taxes of any kind required by law to be withheld with
respect to any income which the Participant is required, or elects, to include
in his gross income and the Company and its subsidiaries shall, to the extent
permitted by law, have the right to deduct any such taxes from any payment of
any kind otherwise due to the Participant. Anything contained herein to the
contrary notwithstanding, the Committee may, in its sole discretion, authorize
acceptance of Stock received in connection with the grant or exercise of an
Award or otherwise previously acquired in satisfaction of withholding
requirements.

 

(b)                                 Notwithstanding any provisions
to the contrary in this Section 19, an Insider may only satisfy tax
withholding requirements with the settlement of a stock appreciation right or
with shares of the Stock if he or she has held such stock or stock appreciation
right for at

 

31

 

least six (6) months
or the cash settlement of the tax obligation occurs no earlier than six (6) months
after the date of an irrevocable election made by an Insider.

 

Section 20.                                      Standard Forms of Award Agreement.

 

(a)                                  Award Agreements. Each Award shall comply
with and be subject to the terms and conditions set forth in the appropriate
form of Award Agreement approved by the Committee and as amended from time to
time. Any Award Agreement may consist of an appropriate form of notice of grant
and a form of agreement incorporated therein by reference, or such other form
or forms, including electronic media, as the Committee may approve from time to
time.

 

(b)                                 Authority to Vary Terms. The Committee
shall have the authority from time to time to vary the terms of any standard
form of Award Agreement either in connection with the grant or amendment of an
individual Award or in connection with the authorization of a new standard form
or forms; provided, however, that the terms and conditions of any such new,
revised or amended standard form or forms of Award Agreement are not
inconsistent with the terms of the Plan.

 

Section 21.                                      Change in Control.

 

(a)                                  Effect of Change in Control on Options and SARs.

 

(1)                                  Accelerated Vesting. The Committee, in its
discretion, may provide in any Award Agreement evidencing an Option or SAR
Award or, in the event of a Change in Control, may take such actions as it
deems appropriate to provide, for the acceleration of the exercisability
and vesting in connection with such Change in Control of any or all outstanding
Options and SARs and shares acquired upon the
exercise of such Options and SARs upon such
conditions and to such extent as the Committee shall determine.

 

(2)                                  Assumption or Substitution. In the event of
a Change in Control, the Surviving Company, may, without the consent of any
Participant, either assume the Company’s rights and obligations under
outstanding Options and SARs or substitute for
outstanding Options and SARs substantially equivalent
options and SARs (as the case may be) for the stock
of the Surviving Company or other Person acquiring the Company’s Voting
Securities in such Change in Control (the “Acquirer”). Any Options or SARs which are not assumed or substituted in connection
with the Change in Control nor exercised as of the time of consummation of the
Change in Control shall terminate and cease to be outstanding effective as of
the time of consummation of the Change in Control.

 

(3)                                  Cash-Out of Options or SARs.
The Committee, in its discretion and without the consent of any
Participant, may determine that, upon the occurrence of a Change in Control,
each or any Option or SAR outstanding immediately prior to the Change in
Control shall be canceled in exchange for a payment with respect to each vested
share of Stock subject to such canceled Option or SAR in (i) cash,
(ii) stock of the Company or of a corporation or other business entity a
party to the Change in Control, or (iii) other property which, in any such
case, shall be in an amount having a Fair Market Value equal to the excess of
the Fair Market Value of the consideration to be paid per share of Stock in the
Change in Control over the exercise price

 

32

 

per share under
such Option or SAR (the “Spread”). In the event such determination is made by
the Committee, the Spread (reduced by applicable withholding taxes, if any)
shall be paid to Participants in respect of their canceled Options and SARs as soon as practicable following the date of the
Change in Control.

 

(b)                                 Effect of Change in Control on Restricted Stock
Awards. The Committee, in its discretion, may provide in any Award
Agreement evidencing a Restricted Stock Award or, in the event of a Change in
Control, may take such actions as it deems appropriate to provide, that the
lapsing of the Restriction Period applicable to the shares subject to the
Restricted Stock Award held by a Participant whose Service has not terminated
prior to the Change in Control shall be accelerated effective immediately prior
to the consummation of the Change in Control to such extent as the Committee
shall determine.

 

(c)                                  Effect of Change in Control on Restricted Stock Unit
Awards. The Committee, in its discretion, may provide in any Award
Agreement evidencing a Restricted Stock Unit Award or, in the event of a Change
in Control, may take such actions as it deems appropriate to provide, that the
Restricted Stock Unit Award held by a Participant whose Service has not
terminated prior to the Change in Control shall be settled effective as of the
date of the Change in Control to such extent as the Committee shall determine.

 

(d)                                 Effect of Change in Control on Performance Awards. The
Committee, in its discretion, may provide in any Award Agreement evidencing a
Performance Award or, in the event of a Change in Control, may take such
actions as it deems appropriate to provide, that the Performance Award held by
a Participant whose Service has not terminated prior to the Change in Control
or whose Service terminated by reason of the Participant’s death or Disability
shall become payable effective as of the date of the Change in Control to such
extent as the Committee shall determine.

 

(e)                                  Effect of Change in Control on Deferred Stock Awards,
Other Stock-Based Awards and Deferred Compensation Awards. The
Committee, in its discretion, may provide in any Award Agreement evidencing a
Deferred Stock Award, Other Stock-based Awards or a Deferred Compensation Award
or, in the event of a change in the ownership of effective control or change in
the ownership of a substantial portion of the Company’s assets (as such terms
are defined for purposes of Section 409A of the Code), may take such
actions as it deems appropriate to provide that the Stock or Stock Units
pursuant to such Award shall be settled effective as of the date of such change
in ownership or effective control or change in ownership of a substantial
portion of the Company’s assets, to such extent as the Committee shall
determine.

 

(f)                                    Excise Tax Limit. In the event that the vesting of Awards together with all
other payments and the value of any benefit received or to be received by a
Participant would result in all or a portion of such payment being subject to
the excise tax under Section 4999 of the Code, then the Participant’s
payment shall be either (i) the full payment or (ii) such
lesser amount that would result in no portion of the payment being subject to
excise tax under Section 4999 of the Code (the “Excise Tax”), whichever of
the foregoing amounts, taking into account the applicable federal, state, and
local employment taxes, income taxes, and the Excise Tax, results in the
receipt by the Participant, on an after-tax basis, of the greatest amount of
the

 

33

 

payment
notwithstanding that all or some portion of the payment may be taxable under Section 4999
of the Code. All determinations required to be made under this Section 21(f) shall
be made by the nationally recognized accounting firm which is the Company’s
outside auditor immediately prior to the event triggering the payments that are
subject to the Excise Tax (the “Accounting Firm”). The Company shall cause the
Accounting Firm to provide detailed supporting calculations of its
determinations to the Company and the Participant. All fees and expenses of the
Accounting Firm shall be borne solely by the Company. The Accounting Firm’s
determinations must be made with substantial authority (within the meaning of Section 6662
of the Code). For the purposes of all calculations under Section 280G of
the Code and the application of this Section 21(f), all determinations as
to present value shall be made using 120 percent of the applicable Federal rate
(determined under Section 1274(d) of the Code) compounded
semiannually, as in effect on December 30, 2004.

 

Section 22.                                      Compliance With Securities
Law. The grant of Awards and the issuance of shares of Stock
pursuant to any Award shall be subject to compliance with all applicable
requirements of federal, state and foreign law with respect to such securities
and the requirements of any stock exchange or market system upon which the
Stock may then be listed. In addition, no Award may be exercised or shares
issued pursuant to an Award unless (a) a registration statement under the
Securities Act shall at the time of such exercise or issuance be in effect with
respect to the shares issuable pursuant to the Award
or (b) in the opinion of legal counsel to the Company, the shares issuable pursuant to the Award may be issued in accordance
with the terms of an applicable exemption from the registration requirements of
the Securities Act. The inability of the Company to obtain from any regulatory
body having jurisdiction the authority, if any, deemed by the Company’s legal
counsel to be necessary to the lawful issuance and sale of any shares hereunder
shall relieve the Company of any liability in respect of the failure to issue
or sell such shares as to which such requisite authority shall not have been
obtained. As a condition to issuance of any Stock, the Company may require the
Participant to satisfy any qualifications that may be necessary or appropriate,
to evidence compliance with any applicable law or regulation and to make any
representation, warranty or covenant with respect thereto as may be requested
by the Company.

 

Section 23.                                      Miscellaneous Provisions.

 

(a)                                  Deferrals of Payment. In addition to the
grant of Deferred Stock Awards or Deferred Compensation Awards under Section 11
or 13 of the Plan, the Committee may in its discretion permit a Participant to
defer the receipt of payment of cash or delivery of shares of Stock that would
otherwise be due to the Participant by virtue of the exercise of a right or the
satisfaction of vesting or other conditions with respect to an Award. If any
such deferral is to be permitted by the Committee, the Committee shall
establish rules and procedures relating to such deferral in a manner
intended to comply with the requirements of Section 409A of the Code,
including, without limitation, the time when an election to defer may be made,
the time period of the deferral and the events that would result in payment of
the deferred amount, the interest or other earnings attributable to the
deferral and the method of funding, if any, attributable to the deferred
amount.

 

(b)                                 Repurchase Rights. Shares issued under the
Plan may be subject to one or more repurchase options, or other conditions and
restrictions as determined by the Committee

 

34

 

in its discretion
at the time the Award is granted. The Company shall have the right to assign at
any time any repurchase right it may have, whether or not such right is then
exercisable, to one or more persons as may be selected by the Company. Upon
request by the Company, each Participant shall execute any agreement evidencing
such repurchase options or transfer restrictions prior to the receipt of shares
of Stock hereunder and shall promptly present to the Company any and all
certificates representing shares of Stock acquired hereunder for the placement
on such certificates of appropriate legends evidencing any such repurchase
options or transfer restrictions.

 

(c)                                  Provision of Information. Each Participant
shall be given access to information concerning the Company equivalent to that
information generally made available to the Company’s common shareholders.

 

(d)                                 Rights as Employee, Consultant or Director. No
person, even though eligible pursuant to Section 5, shall have a right to
be selected as a Participant, or, having been so selected, to be selected again
as a Participant. Nothing in the Plan or any Award granted under the Plan shall
confer on any Participant a right to remain an Employee, Officer, Consultant or
Director or interfere with or limit in any way any right of a Participating
Company to terminate the Participant’s Service at any time. To the extent that
an Employee of a Participating Company other than the Company receives an Award
under the Plan, that Award shall in no event be understood or interpreted to
mean that the Company is the Employee’s employer or that the Employee has an
employment relationship with the Company.

 

(e)                                  Rights as a Shareholder. A Participant
shall have no rights as a shareholder with respect to any shares covered by an
Award until the date of the issuance of such shares (as evidenced by the
appropriate entry on the books of the Company or of a duly authorized transfer
agent of the Company). No adjustment shall be made for dividends, distributions
or other rights for which the record date is prior to the date such shares are
issued, except as provided in Section 4(c) or another provision of
the Plan.

 

(f)                                    Fractional Shares. The Company shall not be
required to issue fractional shares upon the exercise or settlement of any
Award; provided, however, that if the Company does not issue fractional shares
upon the exercise or settlement of any Award, it shall make a
cash payment equal to the Fair Market Value of such fractional shares
unless such fractional shares are rounded up.

 

(g)                                 Severability. If any one or more of the
provisions (or any part thereof) of this Plan shall be held invalid, illegal or
unenforceable in any respect, such provision shall be modified so as to make it
valid, legal and enforceable, and the validity, legality and enforceability of
the remaining provisions (or any part thereof) of the Plan shall not in any way
be affected or impaired thereby.

 

(h)                                 Beneficiary Designation. Subject to local
laws and procedures, each Participant may file with the Company a written
designation of a beneficiary who is to receive any benefit under the Plan to
which the Participant is entitled in the event of such Participant’s death
before he or she receives any or all of such benefit. Each designation will
revoke all prior designations by the same Participant, shall be in a form
prescribed by the Company, and will be

 

35

 

effective only
when filed by the Participant in writing with the Company during the
Participant’s lifetime. If a married Participant designates a beneficiary other
than the Participant’s spouse, the effectiveness of such designation may be
subject to the consent of the Participant’s spouse. If a Participant dies
without an effective designation of a beneficiary who is living at the time of
the Participant’s death, the Company will pay any remaining unpaid benefits to
the Participant’s legal representative.

 

(i)                                     Choice of Law. Except to the extent
governed by applicable federal law, the validity, interpretation, construction
and performance of the Plan and each Award Agreement shall be governed by the
laws of the State of Delaware, without regard to its conflict of law rules.

 

Section 24.                                      Effective Date of the Plan.
The Plan shall be effective on the date it is approved by the vote of the
holders of a majority of all outstanding shares of Stock.

 

Section 25.                                      Term of the Plan.
No Award shall be granted pursuant to the Plan after May     ,
2015, but Awards theretofore granted may extend beyond that date.

 

36

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