Document:

Exhibit 10.2

 

[ **** ] indicates confidential portions have been
redacted and submitted separately pursuant to confidentiality request with the
Commission

 

LICENSE AGREEMENT

 

This License Agreement (“Agreement”) is between The
Rockefeller University, a New York nonprofit corporation, with offices located
at 1230 York Avenue, New York, NY 10021 (“Rockefeller”), and Celidex
Therapeutics, Inc., a corporation organized and existing under the laws of
Delaware (“Company”), having a place of business at 519 Route 173W, Bloomsbury,
New Jersey 08804.

 

This Agreement will become effective November 1,
2005 (“Effective Date”).

 

BACKGROUND

 

A.                                   Rockefeller owns certain
intellectual property developed by Dr. Michel Nussenzweig, an Investigator
of the Howard Hughes Medical Institute (“HHMI”) at Rockefeller, and Dr. Ralph
Steinman an investigator at Rockefeller, relating to the human [ **** ]
receptor (collectively, Dr. Nussenzweig and Dr. Steinman are the “Inventors”)
and,

 

B.                                     Rockefeller, by assignment from
the Inventors and HHMI owns applications for United States letters patent
listed in Attachment 1 to this Agreement and foreign counterparts relating to
the intellectual property as described above; and,

 

C.                                     Company desires to obtain a
license to use and exploit the Patent Rights (as defined below), in accordance
with a Development Plan to be provided (“Development Plan”); and,

 

D.                                    Rockefeller has determined that
the exploitation of Patent Rights is in the best interest of Rockefeller and is
consistent with its educational and research missions and goals; and,

 

NOW, THEREFORE, in consideration of the promises and
covenants contained in this Agreement and intending to be legally bound, the
parties agree as follows:

 

1.                                      DEFINITIONS

 

1.1                                 Affiliate means, any legal
entity directly or indirectly controlling, controlled by or under common
control with Company.  For purposes of
this Agreement, “control” means the direct or indirect ownership of more than
fifty percent (50%) of the outstanding voting securities of a legal entity, or the
right to receive more than fifty percent (50%) of the profits or earnings of a
legal entity, or the right to control the policy decisions of a legal entity.

 

1.2                                 Calendar Quarter means each
three-month period, or any portion thereof (if applicable), beginning on January 1,
April 1, July 1 and October 1 of each calendar year.

 

 

1.3                                 Commercially Reasonable Efforts
means, with respect to a Licensed Product, efforts and resources similar to
those employed by Company to develop, manufacture or market a product of
similar market potential at a similar stage in its product life, taking into
account for example the establishment of the Licensed Product in the
marketplace, the competitiveness of alternative products, the likely
proprietary position of the Licensed Product, the likelihood of regulatory
approval for the Licensed Product, the potential profitability of the Licensed
Product and Company’s resources available. 
Commercially Reasonable Efforts shall be determined on a
market-by-market basis for each Licensed Product.

 

1.4                                 Development Plan means a plan
for the development and/or marketing of the Patent Rights, Technical
Information, and Biological Materials that demonstrates Company’s capability to
bring the Patent Rights, Technical Information, and Biological Materials to
practical application.  Such Development
Plan, as appropriate, shall include:

 

1.4.1                        development
activities to be undertaken, including proposed dates of completion of all
major milestones to develop and commercialize Licensed Products;

 

1.4.2                        a list of
regulatory approvals anticipated to be required for commercial launch of such
Licensed Products, including the nature of submissions and government agencies
involved in pre-market clearance;

 

1.4.3                        a list of
current competitors of Company with respect to the development of
antibody-based therapeutic products, including, if known, competitors’ plans
for further development of competing technologies;

 

1.4.4                        anticipated
date of first sale of Licensed Products.

 

1.5                                 Fair Market Value means the cash
consideration which Company or its sublicensee would realize from an
unaffiliated, unrelated buyer in an arm’s length sale of an identical item sold
in the same quantity and at the same time and place of the transaction.

 

1.6                                 Field of Use means use of
Licensed Products and Patent Rights for diagnostic and/or therapeutic purposes
in humans.

 

1.7                                 Improvements means Biological
Materials and Technical Information that are described and claimed in the
Patent Rights and that are developed in the laboratory of Dr. Steinman
during the sponsorship of research by Company covered by a separate agreement,
if any.

 

1.8                                 “Net Sales” shall mean [ **** ].

 

1.9                                 Sale means any bona fide
transaction for which consideration is received from a third party, other than
an Affiliate or sublicensee of Company, for the sale, use, lease, transfer or
other disposition of Licensed Product(s). 
A Sale of Licensed Product(s) shall be deemed completed at the time
Company or its Affiliate or sublicensee invoices, ships, or receives payment
for such Licensed Product(s), whichever occurs first.  A “Sale” shall not include transfers or
dispositions of Licensed Products for charitable, promotional, pre-clinical,
clinical, regulatory or governmental purposes.

 

2

 

1.10                           Biological Materials means all
biological materials listed on Attachment 2 relating to the [ **** ] Antigen
that have been generated or developed by Rockefeller prior to the Effective
Date of the License Agreement and any materials within Improvements, which
shall, from time to time be added to Attachment 2.

 

1.11                           Licensed Product(s) means
products which are made, made for, used or sold by Company and any Affiliate or
sublicensees and which:  (1) in the
absence of this Agreement would infringe at least one issued claim of Patent
Rights or (2) use a process or machine covered by an issued claim of
Patent Rights or (3) incorporate, at least in part, any Biological
Materials or have been made, made for, used or sold by Company making use of
Technical Information.

 

1.12                           Patent Rights means all patents
issuing from those patent applications listed in Attachment I, and their
foreign counterparts and extensions, including continuations, divisionals,
continuations-in-part to the extent that the claims are directed to subject
matter described in the above-referenced patent applications and are entitled
to the priority date of the patent applications listed in Attachment 1, and
re-issue applications.

 

1.13                           Technical Information means
know-how, procedures, techniques, and the like known to the Inventors prior to
the Effective Date of this Agreement, or later developed under a sponsored
research or collaboration agreement between the parties, if any, which are
reasonably required or necessary to use the Patent Rights.  For clarification purposes, Technical
Information shall not mean information that is in the public domain.

 

2.                                      LICENSE
GRANT

 

2.1                                 Rockefeller grants to Company
for the term of this Agreement, in each case with the right to sublicense, (i) an
exclusive (subject only to Section 2.2), worldwide license under
the-Patent Rights to research, develop, make, have made, use, import, sell, and
offer for sale Licensed Products in the Field of Use, (ii) an exclusive,
worldwide license under the Biological Materials and Technical Information to
develop, make, have made, use, import, sell, and offer for sale Licensed
Products in the Field of Use, and (iii) a non-exclusive, worldwide license
under the Biological Materials and Technical Information, to research Licensed
Products in the Field of Use. No other rights or licenses are granted.

 

2.2                                 This license grant for Patent
Rights is exclusive except that Rockefeller may use and permit other nonprofit
organizations to use the Patent Rights for educational and research
purposes.  Further, Rockefeller may use
and grant to other non-profit organizations a non-exclusive license, without
the right to sublicense, to use the Technical Information and Biological
Materials solely for internal research purposes.  In addition, Company acknowledges that
Rockefeller has granted HHMI a paid-up, non-exclusive, irrevocable license to
use the Patent Rights, Biological Materials, and Technical Information for HHMI’s
research purposes, but with no right to sublicense.

 

2.3                                 Company acknowledges that
pursuant to Public Laws 96-517, 97-256 and 98-620, codified at 35 U.S.C.
200-212, the United States government retains certain rights in intellectual
property funded in whole or part under any contract, grant or similar agreement
with a Federal agency.  Pursuant to these
laws, the government may impose certain requirements regarding such 

 

3

 

intellectual
property, including but not limited to the requirement that products resulting
from such intellectual property sold in the United States must be substantially
manufactured in the United States.  This
license grant is expressly subject to all applicable United States government
rights as provided in the above-mentioned laws and any regulations issued under
those laws, as those laws or regulations may be amended from time to time.

 

2.4                                 The right to sublicense granted
to Company under this Agreement is subject to the following conditions:

 

2.4.1                        In each
such sublicense, Company must provide that the sublicensee shall not further
sublicense without the prior written consent of Rockefeller, which consent
shall not be unreasonably withheld, and must require that the sublicensee is
subject to the terms and conditions of the license granted to Company under
this Agreement, including, without limitation, each sublicensee’s undertaking
of an indemnification obligation identical to that of Section 8.2 below,
except to change “Company” where it appears to the name of the relevant
sublicensee, and an insurance undertaking identical to that of Section 8.3
below, except to change “Company” where it appears to the name of the relevant
sublicensee, and the amount of insurance may be adjusted with Rockefeller’s
written consent.

 

2.4.2                        Within
thirty (30) days after Company enters into any sublicense, Company must send to
Rockefeller a complete copy of the sublicense, written in the English
language.  Rockefeller’s receipt of the
sublicense shall not constitute an approval of the sublicense or a waiver of any
of Rockefeller’s rights or Company’s obligations under this Agreement.

 

2.4.3                        If Company
enters bankruptcy proceedings, voluntarily or involuntarily, all payments then
or thereafter due to Company from its sublicensees under this Agreement shall
upon notice from Rockefeller to Company and any such sublicensee become owed
directly to Rockefeller for the account of Company, except to the extent that
the amount of such payments exceed the amounts owed by Company to Rockefeller.

 

2.4.4                        Even if
Company enters into sublicenses, Company remains primarily liable to
Rockefeller for all of Company’s duties and obligations contained in this
Agreement, and any act or omission of a sublicensee which would be a breach of
this Agreement if performed by Company shall be deemed to be a breach by
Company of this Agreement.

 

2.5                                 The parties acknowledge that
parallel and/or complimentary work using Patent Rights, Biological Materials
and Technical Information maybe performed under a grant from the Foundation for
the National Institutes of Health (“FNIH”) Grand Challenges in Global Health
Initiative.  This grant requires that
innovations, products, and information are owned and managed for the purpose of
facilitating (i) the access to affordable health solutions for the benefit
of people most in need within the developing world, and (ii) the broad
availability of data and information to the scientific community.  Company will cooperate with Rockefeller to
achieve those goals if necessary. Company agrees to negotiate in good faith to
grant the rights to use the Patent Rights, Biological Materials and Technical
Information upon commercially reasonable terms for the benefit of the
developing world to facilitate access to the FNIH-supported inventions arising
from the project consistent with FNIH’s charitable objective.

 

4

 

3.                                      FEES,
ROYALTIES, AND MILESTONES

 

3.1                                 LICENSE FEES, ROYALTIES, AND
MILESTONES

 

3.1.1                        In partial
consideration of the licenses granted to Company, Company must pay to
Rockefeller a non-refundable license initiation fee of [ **** ].

 

3.1.2                        In further
consideration of the licenses granted to Company, Company must pay to
Rockefeller within [ **** ] of the issuance by the United States Patent and
Trademark Office of the first patent included within the Patent Rights, a
non-refundable license fee of [ **** ].

 

3.1.3                        In further
consideration of the licenses granted to Company, Company must pay to
Rockefeller a royalty on aggregate annual worldwide Net Sales of all antibody-based
Licensed Products sold by Company, its sublicensees its agents, employees
and/or independent contractors, including any distributors, according to the
following schedule:

 

	
   

  	
   

  	
  Annual Net Sales

  	
   

  	
  Royalty Rate

  	
   

  
	
  Portion of Annual Net Sales

  	
   

  	
  [****]

  	
   

  	
  [****]

  	
   

  
	
  Portion of Annual Net Sales

  	
   

  	
  [****]

  	
   

  	
  [****]

  	
   

  
	
  Portion of Annual Net Sales

  	
   

  	
  [****]

  	
   

  	
  [****]

  	
   

  

 

3.1.4                        In further
consideration of the licenses granted to Company, Company must pay to
Rockefeller a royalty on annual worldwide Net Sales, on a product-by-product
basis, of all non-antibody based Licensed Products sold by Company, its
sublicensees, its agents, employees and/or independent contractors, including
any distributors, according to the following schedule:

 

	
   

  	
   

  	
  Annual Net Sales

  	
   

  	
  Royalty Rate

  	
   

  
	
  Portion of Annual Net Sales

  	
   

  	
  [****]

  	
   

  	
  [****]

  	
   

  
	
  Portion of Annual Net Sales

  	
   

  	
  [****]

  	
   

  	
  [****]

  	
   

  

 

3.1.5                        Subject to
Section 3.1.6, if a Licensed Product is an antibody, antibody fragment, or
part thereof, and Company is required to pay royalties thereon to a third
party, these royalty rates will be reduced subject to the following
conditions:  Company will use
commercially reasonable efforts to have the third party royalties reduced by
the same proportion Rockefeller rate is reduced, and in no event will the
royalty rate payable to Rockefeller be reduced below [ **** ]. For the
avoidance of doubt, “commercially reasonable efforts”, as used in this Section 3.1.5,
shall be deemed not to require any payment of money or other financial
consideration by Company to any third party.

 

3.1.6                        Further,
in the event that at any time after the first Sale of a Licensed Product in a
country, the sale of such Licensed Products is not covered by an issued claim
within the Patent Rights in such country (such time period, the “ Royalty
Uncovered Period”), then during such Royalty Uncovered Period, Company shall
owe to Rockefeller a royalty of [ **** ] on Net Sales of the Licensed Product
in such country rather than the amounts set forth in Section 3.1.3 and Section 3.1.4,
as applicable; provided, however, that in the event a claim in a Patent

 

5

 

Right later issues which covers the sale of
such Licensed Product in such country, then the royalties owed on Net Sales of
such Licensed Product in such country pursuant to Section 3.1.3 and Section 3.1.4,
as applicable, shall commence again as of the date of such claim issuance in
such country.

 

3.1.7                        Company
must pay Rockefeller a percentage of any sublicense initiation fee or any other
non-royalty sublicensee payments (other than milestone payments in amounts
which correspond to the amounts payable by Company to Rockefeller pursuant to Section 3.1.8)
received by Company from sublicensees of Patent Rights, Biological Materials
and Technical Information, to the extent that such payments relate to Licensed
Products, including:

 

3.1.7.1                                       [ **** ]; and

 

3.1.7.2                                       [ **** ]; and

 

3.1.7.3                                       [ **** ]; and

 

3.1.7.4                                       [ **** ]; equity
payable to Rockefeller hereunder will be distributed in accordance with HHMI’s
Statement of Policy Concerning the Receipt of Royalties in the Form of
Securities, presently available at httpi/www.hhmi.org/pdf5131902.pdf.

 

Sublicense fees are to be paid according to the
following schedule of years following the Effective Date:

 

	
  Up until one (1) year

  	
   

  	
  [****] of such payments

  	
   

  
	
  Between one (l) and three (3) years

  	
   

  	
  [****] of such payments

  	
   

  
	
  Three (3) years and thereafter

  	
   

  	
  [****] of such payments

  	
   

  

 

3.1.8                        Company
must pay to Rockefeller milestone payments upon achievement of each of the
following milestone events for each Licensed Product. Payments may be [ **** ],
in accordance with Section 3.1.7.4 above, by mutual agreement of
Rockefeller and Company.

 

	
  Milestone

  	
   

  	
  1st Licensed

  Product

  	
   

  	
  2nd Licensed

  Product

  	
   

  	
  3rd and Subsequent

  Licensed Products

  	
   

  
	
  Upon treating 1st patient in a Phase I Clinical Trial

  	
   

  	
  $[****]

  	
   

  	
  $[****]

  	
   

  	
  $[****]

  	
   

  
	
  Upon treating 1st patient in a Phase II Clinical Trial

  	
   

  	
  $[****]

  	
   

  	
  $[****]

  	
   

  	
  $[****]

  	
   

  
	
  Upon treating 1st patient in a Phase III Clinical Trial

  	
   

  	
  $[****]

  	
   

  	
  $[****]

  	
   

  	
  $[****]

  	
   

  
	
  Upon approval of a New Drug Application (NDA)

  	
   

  	
  $[****]

  	
   

  	
  $[****]

  	
   

  	
  $[****]

  	
   

  

 

3.1.9                        In the
event that the Licensed Product, at the time of achieving a milestone event as
described in the table above this Section 3.1.9, is not covered by an
issued claim within the Patent Rights in the United States (such time period,
the “Milestone Uncovered Period”), then during such Milestone Uncovered Period,
with respect to any Licensed Product, Company shall owe to Rockefeller the
milestone payments set forth in the table below in this Section 3.1.9 for
3rd and Subsequent Licensed Products, provided, however, that in the event a
claim in a Patent Right later issues which covers such Licensed Product in the
United States, then Company shall retroactively pay to Rockefeller the difference
between the previously paid milestone

 

6

 

payment with respect to the applicable
Licensed Product and the milestone payments that would have been otherwise owed
with respect to such Licensed Product (that is, as a 1st Licensed
Product or a 2nd Licensed Product) pursuant to the table above this Section 3.1.9.

 

3.2                                 DILIGENCE AND MAINTENANCE FEES

 

3.2.1                        Company
must provide Rockefeller a Development Plan within ninety (90) days after the
Effective Date.

 

3.2.2                        Company,
its Affiliates and sublicensees must use Commercially Reasonable Efforts to
develop, commercialize, and market Licensed Products in accordance with the
Development Plan.

 

3.2.3                        Company
must provide Rockefeller six months after the Effective Date and semiannually
thereafter, written progress reports, setting forth in such detail as
Rockefeller may reasonably request, with regard to Company’s efforts to develop
and commercialize Licensed Products, including the activities by Company, its
subsidiaries, sublicensees, business partners and independent contractors, in
each case related thereto.  Company shall
also notify Rockefeller within thirty (30) days after the first Sale of each
Licensed Product.

 

3.2.4                        Subject to
Section 3.2.5, Company agrees to commit Company resources to the
development and commercialization of antibody-based Licensed Products in
amounts not less than the amounts set forth in the following schedule:

 

	
  Year One (1)

  	
   

  	
  $[****]

  	
   

  
	
  Year Two (2)

  	
   

  	
  $[****]

  	
   

  
	
  Year Three (3)

  	
   

  	
  $[****]

  	
   

  
	
  Year Four (4)

  	
   

  	
  $[****]

  	
   

  
	
  Year Five (5) and each year thereafter until submission by
  Company of an NDA

  	
   

  	
  $[****]

  	
   

  

 

3.2.5                        In the
event that Rockefeller is given an offer by an entity to license the Patent
Rights to develop and commercialize a product in the fields of allergy and
autoimmune diseases (excluding toxin-conjugate containing products) Company
will, within one hundred eighty (180) days, either (i) offer a sublicense
under the Patent Rights to such entity on reasonable commercial terms, (ii) present
an acceptable development plan to Rockefeller to pursue development of products
in the fields of allergy and autoimmune diseases, or (iii) return the
rights to develop products in the fields of allergy and autoimmune diseases to
Rockefeller.

 

3.2.6                        Company
recognizes that Rockefeller has an interest in providing for the development
and commercialization of therapeutic products that make use of the Patent
Rights.  Company therefore agrees that in
the event that Company makes the election described in clause (i) of Section 3.2.5
above, Company will consider in good faith any reasonable request by a third
party to enter into a sublicense under the Patent Rights or other business
relationship with Company relating to the development and/or commercialization
of products in the fields of allergy and autoimmune diseases that may require
the use of Patent Rights.  Company will

 

7

 

negotiate in good faith to consummate such
sublicenses and/or business relationship(s) on terms that are commercially
reasonable.

 

3.3                                 REPORTS AND RECORDS

 

3.3.1                        Prior to
the first Sale of a Licensed Product, Company must deliver to Rockefeller
within forty-five (45) days after the end of each Calendar Year a report (“Development
Plan Progress Report”), setting forth the current stage of development of
Licensed Products, including, without limitation:

 

3.3.1.1                                       Date of
Development Plan Progress Report and time covered by such report.

 

3.3.1.2                                       Major research
and commercialization activities completed by Company and/or third parties
since the most recent Development Plan Progress Report.

 

3.3.1.3                                       Significant
research and development projects currently being performed by Company and/or
third parties at the time Development Plan Progress Report is submitted and
projected date of completion.

 

3.3.1.4                                       Significant
development activities to be undertaken by Company and/or third parties during
the next Calendar Year.

 

3.3.1.5                                       Significant
changes to the Development Plan and previous Development Plan Progress Reports
submitted to Rockefeller, including the reasons for the changes and future
variables that may cause additional changes.

 

3.3.1.6                                       Dates of all
reports made available to shareholders during the reporting period, including
10-K and 10-Q filings made to the United States Securities and Exchange
Commission.

 

3.3.2                        Subsequent
to the first Sale of a Licensed Product, Company must deliver to Rockefeller
within forty-five (45) days after the end of each Calendar Quarter a report,
certified by the chief financial officer of Company, setting forth the
calculation of the royalties due to Rockefeller for such Calendar Quarter,
including, without limitation:

 

3.3.2.1                                       Number of
Licensed Products involved in Sales, listed by country.

 

3.3.2.2                                       Gross
consideration for Sales of Licensed Products, including all amounts invoiced,
billed, or received.

 

3.3.2.3                                       Qualifying
costs, as defined in Section 1.8, listed by category of cost. 3.3.2.4 Net
Sales of Licensed Products listed by country.

 

8

 

3.3.2.4                                       Royalties owed
to Rockefeller, listed by category, including without limitation earned,
sublicensee-derived, and minimum royalty categories.

 

3.3.3                        Company
must pay the royalties due under Sections 3.1 within forty-five (45) days following
the last day of the Calendar Quarter in which the royalties accrue.  Company must send with the royalties the
report described in Section 3.3.1.

 

3.3.4                        Company
must maintain and cause its sublicensees to maintain, complete and accurate
books and records which enable the royalties payable under this Agreement to be
verified.  The records for each Calendar
Quarter must be maintained for three years after the submission of each report
under Article 3.  Upon reasonable
prior notice to Company, Company must provide Rockefeller with access to all
books and records relating to the Sales of Licensed Products by Company and its
sublicensees to conduct a review or audit of those books and records. Access to
Company’s books and records must be available at least once each Calendar Year,
during normal business hours, and for each of three years after the expiration
or termination of this Agreement, solely, however, to the extent necessary for
the purpose of verifying the accuracy and basis of Company’s payments and
compliance with this Agreement.  Any such
inspection shall be at Rockefeller’s expense; provided that if such inspection
reveals that Company has underpaid royalties by five percent (5%) or more,
Company must pay the costs and expenses of Rockefeller and its accountants in
connection with such review or audit. 
The Company will provide Rockefeller with the Company’s Revenue
Recognition policy as approved by the Company’s Independent Registered Public
Accounting Firm to comply with all Securities and Exchange Commission (“SEC”)
and Financial Accounting Standards Board (“FASB”) guidelines.

 

3.4                                 CURRENCY, PLACE OF PAYMENT,
INTEREST

 

3.4.1                        All dollar
amounts referred to in this Agreement are expressed in United States dollars.
All payments to Rockefeller under this Agreement must be made in United States
dollars by check payable to “The Rockefeller University” or wire transfer to an
account provided by Rockefeller.  If
Company receives revenues from Sales of Licensed Products in currency other
than United States dollars, revenues shall be converted into United States
dollars at the conversion rate for the foreign currency as published in the
eastern edition of The Wall Street Journal as of the last business day of the
applicable Calendar Quarter.

 

3.4.2                        Amounts that
are not paid when due shall accrue interest from the due date until paid, at a
rate equal to one and one-half percent (1.5%) per month (or the maximum allowed
by law, if less).

 

4.                                      CONFIDENTIALITY

 

4.1                                 Confidential Information means
and includes (a) all technical information, inventions, developments,
discoveries, software, know-how, methods, techniques, formulae, data, processes
and other proprietary ideas, whether or not patentable or copyrightable, that
Rockefeller identifies as confidential or proprietary at the time it is
delivered or communicated to Company (“Rockefeller Confidential Information”)
and (b) all technical information, inventions,

 

9

 

developments,
discoveries, software, know-how, methods, techniques, formulae, data, processes
and other proprietary ideas, whether or not patentable or copyrightable, that
Company identifies as confidential or proprietary at the time it is delivered
or communicated to Rockefeller, the Development Plan, the reports required in
Sections 3.2.3 and 3.3, the terms of this Agreement, the identities of any
sublicensees, and the terms of any sublicense agreement (the “Company
Confidential Information”).

 

4.2                                 Company agrees to maintain in
confidence and not to disclose to any third party any Rockefeller Confidential
Information.  Company agrees to ensure
that its employees have access to Rockefeller Confidential Information only on
a need-to-know basis and are obligated in writing to abide by Company’s
obligations under this Agreement. 
Rockefeller shall not be obligated to accept any confidential
information from Company except for the Company Confidential Information.  Rockefeller shall use best efforts not to
disclose Company Confidential Information to any third party and shall disclose
Company Confidential Information only to those employees and third parties that
have a need to know such Company Confidential Information, except Rockefeller
may share the terms of this Agreement or any sublicense agreement with HHMI in
confidence.  Rockefeller bears no
institutional responsibility for maintaining the confidentiality of any other
information of Company.

 

4.3                                 The obligations set forth in Section 4.2
shall not apply to:

 

4.3.1                        information
that is known to the receiving party or independently developed by the
receiving party prior to the time of disclosure, in each case, to the extent
evidenced by written records of the receiving party;

 

4.3.2                        information
disclosed to the receiving party by a third party that has a right to make such
disclosure;

 

4.3.3                        information
that becomes patented, published or otherwise part of the public domain as a
result of acts by the disclosing party or a third person obtaining such
information as a matter of right; or

 

4.3.4                        information
that is required to be disclosed by order of United States governmental
authority or a court of competent jurisdiction; provided that the receiving
party must use best efforts to obtain confidential treatment of such
information by the agency or court.

 

5.                                      TERM
AND TERMINATION

 

5.1                                 This Agreement, unless sooner
terminated as provided in this Agreement, terminates upon the later of (a) expiration
of the last to expire or become abandoned of the Patent Rights; or (b) ten
(10) years after the first commercial sale of the first Licensed Product,
whichever is later; provided, however, that notwithstanding clause (b) of
this Section 5.1, in no event shall the Agreement terminate more than five
(5) years after the expiration of the last to expire or become abandoned
of the Patent Rights.  Thereafter,
Company shall have a fully paid, worldwide, royalty-free, perpetual,
non-exclusive license under the Technical Information and Biological Materials
to make, use, sell, offer for sale and import Licensed Products.

 

10

 

5.2                                 Company may, upon sixty (60)
days written notice to Rockefeller, terminate this Agreement by doing all of
the following:

 

5.2.1                        ceasing to
make, have made, use, import, sell and offer for sale all Licensed Products;
and

 

5.2.2                        terminating
all sublicenses, and causing all sublicensees to cease making, having made,
using, importing, selling and offering for sale all Licensed Products, or, at
the option of Rockefeller, assigning such sublicenses to Rockefeller; and

 

5.2.3                        paying all
monies owed to Rockefeller at the date of termination under this Agreement.

 

5.3                                 Rockefeller may terminate this
Agreement if any of the following occur:

 

5.3.1                        Company is
more than sixty (60) days late in paying to Rockefeller royalties, expenses, or
any other monies due under this Agreement and Company does not immediately pay
Rockefeller in full within fifteen (15) days of demand; or

 

5.3.2                        Company
enters bankruptcy proceedings, voluntarily or involuntarily; or

 

5.3.3                        Company
breaches this Agreement and does not cure the breach within sixty (60) days
after written notice of the breach.

 

5.4                                 If Company enters bankruptcy
proceedings, voluntarily or involuntarily, all duties of Rockefeller and all
rights (but not duties) of Company under this Agreement immediately terminate
without the necessity of any action being taken either by Rockefeller or by
Company.

 

5.5                                 Upon termination of this
Agreement pursuant to Sections 5.2 or 5.3 above, Company must, at Rockefeller’s
request, return all Rockefeller Confidential Information, Biological Materials
and Technical Information.

 

5.6                                 Company’s obligation to pay all
monies owed accruing under this Agreement shall survive termination of this
Agreement.  In addition, the provisions
of Articles 4 - Confidentiality, Article 5 - Term and Termination, Article 8
- Disclaimer of Warranties; Indemnification, Article 9 - Use of Names and Article 10
- Additional Provisions shall survive such termination.

 

6.                                      PATENT
MAINTENANCE AND REIMBURSEMENT

 

6.1                                 Company shall prosecute and
maintain the patent applications related to the Patent Rights, using a law firm
acceptable to Rockefeller, which acceptance shall not be unreasonably withheld,
conditioned or delayed. Rockefeller shall participate in all decisions related
to the Patent Rights.  Company will be
responsible for the payment of all charges and fees invoiced by such law firm.
In the event that the terms of Section 3.2.6 apply and a third party has a
license with respect to certain fields of Licensed Products, then the total
amount of such charges and fees shall be pro-rated between Company and such
third party.

 

11

 

6.2                                 Company shall reimburse
Rockefeller for all patent and licensing expenses incurred before the Effective
Date of the Agreement within 30 days after the Effective Date of the Agreement,
which expenses are set forth on Attachment 3 of this Agreement.

 

7.                                      INFRINGEMENT
AND LITIGATION

 

7.1                                 Rockefeller and Company are
responsible for notifying each other promptly of any infringement of Patent
Rights which may come to their attention. 
Rockefeller and Company shall consult one another in a timely manner
concerning any appropriate response to the infringement.

 

7.2                                 Company may prosecute such
infringement at its own expense.  Company
must not settle or compromise any such suit in a manner that imposes any
obligations or restrictions on Rockefeller or grants any rights to the
Technical Information, Biological Materials or the Patent Rights, without
Rockefeller’s prior written permission, which permission shall not be
unreasonably withheld or delayed. 
Financial recoveries from any such litigation will first be applied to
reimburse Company for its litigation expenditures with additional recoveries
being paid to Company, subject to a royalty due Rockefeller based on the
provisions of Article 3.

 

7.3                                 Company’s rights under Section 7.2
are subject to the continuing right of Rockefeller to intervene at Rockefeller’s
own expense and join Company in any claim or suit for infringement of the
Patent Rights.  If Rockefeller joins in
such suit, any consideration received by Company in settlement of any claim or
suit shall be shared between Rockefeller and Company in proportion with their
share of the litigation expenses in such infringement action.

 

7.4                                 If Company fails to prosecute
any infringement, Rockefeller may prosecute such infringement at their own
expense.  In such event, financial
recoveries will be entirely retained by Rockefeller.

 

7.5                                 In any action to enforce any of
the Patent Rights, either party, at the request and expense of the other party
shall cooperate to the fullest extent reasonably possible.  This provision shall not be construed to
require either party to undertake any activities, including legal discovery, at
the request of any third party except as may be required by lawful process of a
court of competent jurisdiction.

 

8.                                      DISCLAIMER
OF WARRANTIES; INDEMNIFICATION

 

8.1                                 THE PATENT RIGHTS, TECHNICAL
INFORMATION, BIOLOGICAL MATERIALS, LICENSED PRODUCTS AND ALL OTHER TECHNOLOGY
LICENSED UNDER THIS AGREEMENT ARE PROVIDED ON AN “AS IS” BASIS AND ROCKEFELLER
MAKES NO REPRESENTATIONS OR WARRANTIES, EXPRESS OR IMPLIED, WITH RESPECT
THERETO. BY WAY OF EXAMPLE BUT NOT OF LIMITATION, ROCKEFELLER MAKES NO
REPRESENTATIONS OR WARRANTIES (I) OF COMMERCIAL UTILITY; (II) OF
MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE; OR (III) THAT THE USE
OF THE PATENT RIGHTS, TECHNICAL INFORMATION, BIOLOGICAL MATERIALS, LICENSED
PRODUCTS AND ALL TECHNOLOGY LICENSED UNDER THIS AGREEMENT WILL NOT INFRINGE ANY
PATENT, COPYRIGHT OR TRADEMARK OR OTHER PROPRIETARY RIGHTS OF 

 

12

 

OTHERS. ROCKEFELLER
SHALL NOT BE LIABLE TO COMPANY, COMPANY’S SUCCESSORS OR ASSIGNS OR ANY THIRD
PARTY WITH RESPECT TO:  ANY CLAIM ARISING
FROM COMPANY’S USE OF THE PATENT RIGHTS, TECHNICAL INFORMATION, BIOLOGICAL
MATERIALS, LICENSED PRODUCTS AND ALL TECHNOLOGY LICENSED UNDER THIS AGREEMENT
OR FROM THE MANUFACTURE, USE OR SALE OF LICENSED PRODUCTS; OR ANY CLAIM FOR
LOSS OF PROFITS, LOSS OR INTERRUPTION OF BUSINESS, OR FOR INDIRECT, SPECIAL OR
CONSEQUENTIAL DAMAGES OF ANY KIND.

 

8.2                                 Rockefeller and HHMI, and their
respective trustees, officers, employees, and agents (collectively, “Indemnitees”),
will be indemnified, defended by counsel acceptable to Rockefeller and HHMI,
and held harmless by Company from and against any and all claims, liabilities,
costs, expenses, damages, deficiencies, losses, or obligations, of any kind or
nature (including, without limitation, reasonable attorneys’ fees and other
costs and expenses of defense)(collectively, “Claims”), based upon, arising out
of, or otherwise relating to:  (a) the
development, use, manufacture, promotion, sale or other disposition of any
Technical Information, Patent Rights, Biological Materials, or Licensed
Products by Company, its Affiliates, assignees, sublicensees, agents,
distributors, vendors or other third parties; (b) any breach by Company of
this Agreement or any breach by a sublicensee of a sublicense; and (c) the
enforcement by an Indemnitee of this Section, except, in each case, (i) with
respect to Rockefeller as Indemnitee(s), to the extent that such liability is
determined with finality by a court of competent jurisdiction to result from
the gross negligence or willful misconduct of Rockefeller, and (ii) with
respect to HHMI, or an HHMI trustee, officer, employee or agent (each an “HHMI
Indemnitee”), as Indemnitee, where such liability is determined with finality
by a court of competent jurisdiction to result solely from the gross negligence
or willful misconduct of HHMI Indemnitees. 
Without limiting the foregoing, Company must defend, indemnify and hold
harmless the Indemnitees from and against any Claims resulting from:

 

8.2.1                        any
product liability or other claim of any kind related to the use by a third
party of a Licensed Product that was manufactured, sold or otherwise disposed
by Company, its Affiliates, assignees, sublicensees, agents, distributors,
vendors or other third parties;

 

8.2.2                        a claim by
a third party that the Technical Information, Biological Materials or Patent
Rights or the design, composition, manufacture, use, sale or other disposition
of any Licensed Product infringes or violates any patent, copyright, trademark
or other intellectual property rights of such third party; and

 

8.2.3                        clinical
trials or studies conducted by or on behalf of Company, its Affiliates,
assignees, sublicensees, distributors, agents, vendors or other parties with
which it is in contract, relating to the Technical Information, Biological
Materials, Patent Rights or Licensed Products, including, without limitation,
any claim by or on behalf of a human subject of any such clinical trial or
study.

 

8.3                                 Company is not permitted to
settle or compromise any claim or action giving rise to Claims of Rockefeller
or its Indenmitees in a manner that imposes any restrictions or obligations on
Indemnitees or grants any rights to the Technical Information, Biological
Materials, Patent Rights or Licensed Products without Rockefeller’s prior
written consent, not to 

 

13

 

be unreasonably
withheld or delayed.  If Company fails or
declines to assume the defense of any such claim or action within thirty (30)
days after notice thereof, Indemnitees may assume the defense of such claim or
action for the account and at the risk of Company, and any liabilities related
thereto shall be conclusively deemed a liability of Company.

 

8.3.1                        Company
agrees not to settle any Claim against an HHMI Indemnitee without HHMI’s
written consent, where (a) such settlement would include any admission of
liability on the part of any HHMI Indemnitee, (b) such settlement would
impose any restriction on any HHMI Indemnitee’s conduct of any of its
activities, or (c) such settlement would not include an unconditional
release of all HHMI Indemnitees from all liability for claims that are the
subject matter of the settled Claim.

 

8.3.2                        The
indemnification rights of Indemmitees contained herein are in addition to all
other rights which such Indemnitees may have at law or in equity or otherwise.

 

8.4                                 INSURANCE

 

8.4.1                        Company
shall procure and maintain a policy or policies of comprehensive general
liability insurance, including broad form and contractual liability, in a
minimum amount of $2,000,000 combined single limit per occurrence and in the
aggregate as respects personal injury, bodily injury and property damage
arising out of Company’s performance of this Agreement.

 

8.4.2                        Company
shall, upon commencement of clinical trials involving Licensed Products,
procure and maintain a policy or policies of product liability insurance in a
minimum amount of $5,000,000 combined single limit per occurrence and in the
aggregate as respects bodily injury and property damage arising out of Company’s
performance of this Agreement.

 

8.4.3                        The policy
or policies of insurance described in this Section 8.4 shall be issued by
an insurance carrier with an A.M. Best rating of “A” or better and shall
name Rockefeller and HHMI as additional insured with respect to Company’s
performance of this Agreement.  Upon the
written request of Rockefeller, Company shall provide Rockefeller with
certificates evidencing the insurance coverage required herein and all
subsequent renewals thereof.  Such
certificates shall provide that Company’s insurance carrier(s) notify
Rockefeller in writing at least 30 days prior to cancellation or material
change in coverage.

 

8.4.4                        Rockefeller
may periodically review the adequacy of the minimum limits of liability
insurance specified in this Section and Rockefeller reserves the right to
require Company to adjust the liability insurance coverages.  The specified minimum insurance amounts do
not constitute a limitation on Company’s obligation to indemnify Rockefeller
and HHMI under this Agreement.

 

9.                                      USE
OF NAMES

 

Except as may be required by law or as may be required
to be disclosed in Company’s filings with the United States Securities and
Exchange Commission, neither Company nor any sublicensee will use directly or
by implication the name of Rockefeller or HHMI, or the name of any member of
the faculty, staff, trustees, directors, officers and employees of Rockefeller
or 

 

14

 

HHMI, without the prior written approval of
Rockefeller and/or HHMI and the individual involved. Except as may be required
by law, Rockefeller will not use directly or by implication the name of
Company, or the name of any member of the staff, trustees, directors, officers
and employees of Company, without the prior written approval of Company and the
individual involved.  Rockefeller and
Company agree to discuss in good faith the disclosure by Rockefeller that
Company is a licensee prior to such disclosure. 
Rockefeller and Company may repeat such disclosures of information for
which consent has previously been obtained, and information of a similar nature
to that which has been previously disclosed.

 

10.                               ADDITIONAL
PROVISIONS

 

10.1                           Nothing in this Agreement shall
be deemed to establish a relationship of principal and agent between
Rockefeller and Company, nor any of their agents or employees for any purpose
whatsoever, nor shall this Agreement be construed as creating any other form of
legal association or arrangement which would impose liability upon one party
for the act or failure to act of the other party.

 

10.2                           Company is not permitted to
assign this Agreement or any part of it, either directly or by merger or other
operation of law, without the prior written consent of Rockefeller; provided,
however, that Company may assign this Agreement, with notice to Rockefeller but
without Rockefeller’s consent, (a) to its Affiliates, and (b) to an
entity that acquires all or substantially all of the business or assets of
Company, whether by merger, reorganization, acquisition, sale or otherwise;
provided further, that any such Assignee set forth in clause (b) shall
affirm to Rockefeller in writing its assumption of all of the obligations of
Company hereunder prior to any such assignment. 
Any prohibited assignment of this Agreement or the rights hereunder
shall be null and void.  No assignment
shall relieve Company of responsibility for the performance of any accrued
obligations which it has prior to such assignment.

 

10.3                           A waiver by either party of a
breach of any provision of this Agreement will not constitute a waiver of any
subsequent breach of that provision or a waiver of any breach of any other
provision of this Agreement.

 

10.4                           Notices, payments, statements,
reports and other communications under this Agreement shall be in writing and
shall be deemed to have been received as of the date sent if sent by public
courier (e.g. Federal Express) or by Express Mail, receipt requested, and
addressed as follows:

 

If for
Rockefeller:

 

The Rockefeller University

Office of Technology Transfer

502 Founders Hall

1230 York Avenue

New York, NY 
10021-6399

Attention: 
Associate Vice President Spliceomix, Inc.

 

15

 

If for Company:

 

Celldex Therapeutics, Inc.

519 Route 173W

Bloomsbury, NJ 
08804

Fax: 908-479-2401

Attn:  Chief
Financial Officer

 

Either party may change its official address upon
written notice to the other party.

 

10.5                           This Agreement shall be
construed and governed in accordance with the laws of the State of New York,
without giving effect to conflict of law provisions.  In the event that a party to this Agreement
perceives the existence of a dispute with the other party concerning any right
or duty provided for herein, the parties will, as soon as practicable, confer
in an attempt to resolve the dispute.  If
the parties are unable to resolve such dispute amicably, then the parties
hereby submit to the exclusive jurisdiction of and venue in the courts located
in the New York State with respect to any and all disputes concerning the
subject of this Agreement.

 

10.6                           Company shall not discriminate
against any employee or applicant for employment because of race, color, sex,
sexual or affectional preference, age, religion, national or ethnic origin,
handicap, or because he or she is a disabled veteran or a veteran of the
Vietnam Era.

 

10.7                           Company must comply with all
prevailing laws, rules and regulations that apply to its activities or
obligations under this Agreement. 
Without limiting the foregoing, it is understood that this Agreement may
be subject to United States laws and regulations controlling the export or
deemed export of technical data, computer software, laboratory prototypes,
materials, and other commodities, articles and information, including without
limitation the International Traffic in Arms Regulations (“ITAR”), the U.S.
Commerce Department’s Export Control Regulations (“EAR”), and U.S. trade
sanctions and embargoes administered by the Office of Foreign Assets Control (“OFAC”)
at the U.S. Department of the Treasury.  The
transfer of any of the foregoing to a foreign country, or to a foreign citizen
in the United States, may require a license from the relevant agency of the
United States Government and/or written assurances by Company that Company
shall not export any of the foregoing to certain foreign countries, or to
foreign citizens in the United States, without prior approval of such agency.
Rockefeller does not represent that a license is not required nor that, if
required, it will issue.

 

10.8                           HHMI is not a party to this
Agreement and has no liability to any licensee, any sublicensee, or user of any
technology covered by this Agreement, but HHMI is an intended third-party
beneficiary of this Agreement and certain of its provisions are for the benefit
of HHMI and are enforceable by HHMI in its own name.

 

Any modification of this Agreement must be in writing
and signed by an authorized representative of each party.

 

16

 

IN WITNESS WHEREOF, the parties, intending to be legally
bound, have caused this Agreement to be executed by their duly authorized
representatives.

 

	
  THE
  ROCKEFELLER UNIVERSITY

  	
  CELLDEX
  THERAPEUTICS, INC.

  
	
   

  	
   

  
	
  By:

  	
  /s/ Frederick Bohen

  	
   

  	
  By:

  	
  /s/ Anthony S. Marucci

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Name:

  	
  Frederick M. Bohen

  	
   

  	
  Name:

  	
  Anthony S. Marucci

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Title:

  	
  Executive Vice President

  	
   

  	
  Title:

  	
  V.P. & Chief Financial Officer

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Date:

  	
  October 31st, 2005

  	
   

  	
  Date:

  	
  November 4, 2005

  	
   

  
								

 

17

 

ATTACHMENT 1

 

Patent Rights

 

US Patent application 08/381,528, filed on Jan 31,
1995

 

US Patent application 09/586,704, filed on Jun 05,
2000 (CON of 08/381,528)

 

US Patent application 09/925,284, filed on Aug 09,
2001 (CIP of 09/586,704)

 

US Patent application 10/800,023, filed on March 12,
2004 (CIP of 09/925,284)

 

18

 

ATTACHMENT 2 

Biological Materials

 

 

[ **** ]

 

19

 

ATTACHMENT 3 

PATENT COSTS

 

Invoices received prior to 10/31/05 for US
applications - $91,287.55

 

20Exhibit 10.3

 

[ **** ]
indicates confidential portions have been redacted and submitted separately
pursuant to

confidentiality
request with the Commission

 

Execution Copy

 

LICENSE
AGREEMENT

 

THIS LICENSE AGREEMENT
(the “Agreement”) is made as
of  September 1, 2006 (the “Effective Date”) between Duke University,
a North Carolina corporation with offices at 2020 West Main Street, Suite 101,
Durham, North Carolina 27705, and its Affiliates (“Duke”), and Celldex Therapeutics, Inc., a Delaware
corporation with a business address at 222 Cameron Drive, Suite 400,
Phillipsburg, New Jersey 08865 (“Celldex”).  Celldex and Duke each may be referred to
herein individually as a “Party”
or collectively as the “Parties.”

 

RECITALS

 

A.                                   Duke is the holder
of that certain Investigator Sponsored IND FDA No. 9944 (the “Duke IND”) and certain related assets, all as more fully set
forth on Schedule A (the “Licensed Assets”).

 

B.                                     Celldex wishes to
obtain a license to access and reference the Licensed Assets on an exclusive
basis for, among other things, use in its pursuit of its own filings with the
FDA relating to potential Celldex Products (as these terms are defined herein),
and Duke is willing to grant such a license, in accordance with the terms and
conditions of this Agreement.

 

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

 

1.                                      Definitions.

 

As used in this Agreement, the following
terms have the meanings set forth below.

 

1.1                                 “Affiliate”
means any corporation, company, partnership, joint venture, firm or other
entity that controls, is controlled by, or is under common control with a
Party.  For purposes of this definition, “control”
means (a) in the case of corporate entities, direct or indirect ownership
of at least fifty percent (50%) of the stock or shares entitled to vote for the
election of directors; and (b) in the case of non-corporate entities,
direct or indirect ownership of at least fifty percent (50%) of the equity
interest with the power to direct the management and policies of such
noncorporate entities.

 

1.2                                 “BLA”
means a biologic license application.

 

1.3                                 “Celldex
Product” or “Celldex Products”
means (a) any product or products Exploited by Celldex or its Affiliates
or their respective Sublicensees/Licensees that is the subject of or that
utilizes or is derived from any Licensed Asset; or (b) any service
provided by or on behalf of Celldex or its Affiliates or their respective
Sublicensees/Licensees, which service is the subject of, or that utilizes or is
derived from any Licensed Asset.

 

1.4                                 “Change of
Control” means, with respect to a Party, the merger, consolidation
or similar transaction, or the sale of all or substantially all of a Party’s
assets, or a line of business

 

 

of a Party, that pertains to the exercise of such Party’s
rights or the performance of such Party’s obligations under this Agreement.

 

1.5                                 “Claim” has the meaning
set forth in Section 3.3.2(a).

 

1.6                                 “Control” means, with
respect to any Licensed Asset, possession of the right, whether directly or
indirectly, and whether by ownership, license or otherwise, to grant a
sublicense under such Licensed Asset as provided for herein without violating
the terms of any agreement or other arrangement with any Third Party.

 

1.7                                 “EMEA” means European
Medicines Agency.

 

1.8                                 “Exploit” or “Exploitation” means to research, develop,
commercialize, make, have made, import, use, sell or offer for sale, alone or
in collaboration with a Third Party.

 

1.9                                 “FDA” means the
United States Food & Drug Administration or any successor entity.

 

1.10                           “Field” means
therapeutic vaccines and antibodies for the treatment of glioblastoma
multiforme and other cancers of the brain.

 

1.11                           “IND” means an
investigational new drug application.

 

1.12                           “Indemnified Party” has the
meaning set forth in Section 3.3.2(a).

 

1.13                           “Indemnitee” has the
meaning set forth in Section 3.3.2(a).

 

1.14                           “Losses” has the meaning
set forth in Section 3.3.1.

 

“Net Sales”
means [ **** ].

 

1.15                           “Person” means any
individual, partnership, joint venture, corporation, limited liability company,
trust, unincorporated organization, government or department or agency of a
government or other entity.

 

1.16                           “Shares” has the
meaning set forth in Section 4.1.

 

1.17                           “IND Sponsor” shall mean Dr. John
Sampson, Associate Professor-Surgery, (Neurosurgery) Duke University Medical
Center.

 

1.18                           “Sublicensee/Licensee” and “Sublicensees/Licensees” means permitted
Third Party (including Affiliates) licensees and sublicensees and future
downstream sub-sublicensees of the Licensed Assets pursuant to the terms of and
subject to the restrictions provided for in this Agreement.

 

1.19                           “Sublicense/License” and “Sublicenses/Licenses” means the license or
sub-license or future downstream sub-sublicense agreements under any Licensed
Asset entered into by Sublicensees/Licensees.

 

2

 

1.20                           “Third Party” means any Person
other than Celldex, Duke or their Affiliates.

 

2.                                      License.

 

2.1                                 License
Grant. 
Subject to the terms and conditions of this Agreement, Duke hereby
grants to Celldex an exclusive, perpetual (subject to the termination
provisions of Section 2.3), royalty and fee-bearing, worldwide license,
with the right to sublicense to Sublicensees/Licensees solely as provided in
this Article 2, under the Licensed Assets, to Exploit Celldex
Products.  For avoidance of doubt, the
license granted by Duke to Celldex under this Section 2.1 shall include,
without limitation, the right to access all data used and/or referenced by Duke
in connection with the filing of the Duke IND with the FDA and other regulatory
agencies worldwide and the Licensed Assets and the right to cross reference the
Duke IND and the Licensed Assets in Celldex’s own filings with the FDA and
other regulatory agencies worldwide relating to Celldex Products.  In this connection, Duke hereby agrees to
provide Celldex with a cross reference letter in form and substance
satisfactory to Celldex, the FDA and other regulatory agencies worldwide to the
extent the data is applicable to such filings. 
Such cross-reference letter shall be sufficient to allow Celldex to
cross reference the Duke IND and the Licensed Assets, as appropriate, in
Celldex’s own filings with the FDA and other regulatory agencies worldwide in
connection with Celldex Products.

 

2.2                                 License
Fees in Connection with a Sublicense/License.  Except as provided in Article 4 of this
Agreement, if Celldex or any of its Affiliates enters into a
Sublicense/License, it shall have no obligation to Duke or its Affiliates with
respect to any license fees, milestone payments, royalties, or any other
financial consideration received by Celldex pursuant to such Sublicense/License.

 

2.3                                 Term
and Termination of License.

 

2.3.1                             Term.  The license provided for in Section 2.1
shall run until terminated in accordance with this Section 2.3.

 

2.3.2                             Termination
by Duke.  Duke shall have the right
to terminate this license if and only if Celldex fails to pay amounts due under
Article 4 or otherwise materially breaches this Agreement and fails to
cure such payment default or breach within thirty (30) days after written
notice from Duke specifying the nature of such default or breach.

 

2.3.3                             Termination
by Celldex.  Celldex shall have the
right at any time to terminate this license in whole or as to any portion of
the Licensed Assets by giving ninety (90) days’ advance notice in writing to
Duke; provided  however, that Celldex’s obligations under Article 4
shall survive any such partial termination for any portion of the Licensed
Assets that have not been terminated.

 

2.3.4                             Sublicenses/Licenses.  In the event of termination pursuant to Section 2.3.2,
any Sublicense/License provided for under this Agreement entered into by
Celldex may be terminated at the sole discretion of Duke.

 

2.3.5                             Survival.  Termination or expiration of this Agreement
for any reason shall be without prejudice to any rights that shall have accrued
to the benefit of a Party prior to 

 

3

 

such termination or expiration.  Such termination or expiration shall not
relieve a Party from obligations that are expressly indicated to survive the
termination or expiration of this Agreement.

 

2.4                                 Notice
of Licenses and Sublicenses.  Celldex shall provide Duke with written
notice within thirty (30) days after the granting of any Sublicense/License of
rights under any Licensed Assets by Celldex or its respective Sublicensees/Licensees,
which notice shall contain the name of the grantee of such Sublicense/License
and the date of the grant of such Sublicense/License.

 

3.                                      Warranties,
Covenants and Indemnities.

 

3.1                                 Representations
and Covenants of Duke.  Duke represents and covenants that as of the
Effective Date:  (a) Duke and its
Affiliates have the unencumbered and unrestricted right to grant Celldex rights
in the Licensed Assets in accordance with this Agreement without any payment or
other (to the extent material to Celldex’s rights hereunder) obligations to
Third Parties other than those set forth in this Agreement; (b) Duke and
its Affiliates do not have any existing agreements or arrangements with Third
Parties relating to the Licensed Assets that would conflict with Duke’s or its
Affiliates’ obligations to Celldex and its Affiliates or Duke’s or its
Affiliates’ performance under this Agreement, and Duke and its Affiliates will
not enter into any agreements or arrangements with Third Parties relating to
the Licensed Assets that would conflict with Duke’s or its Affiliates’
obligations to Celldex and its Affiliates or Duke’s or its Affiliates’
performance under this Agreement; (c) no Third Party has notified Duke in
writing that the Licensed Assets are invalid or unenforceable; (d) Duke
has full right, power and authority to grant the licenses granted by it under
this Agreement and to enter into and perform its obligations under this
Agreement; (e) neither Duke nor its Affiliates has any agreement or
arrangement with a Third Party with respect to such Licensed Assets that
affects its Control of the Licensed Assets or would otherwise adversely affect
Celldex’s license with respect to such Licensed Assets under this Agreement; (f) Duke
has provided Celldex with true and complete copies of all written materials
included within the Licensed Assets; and (g) Duke, as the sponsor of the
Duke IND (so noted as the Licensed Asset(s) on Schedule A to this
Agreement), has the full power, right and authority to provide Celldex with
access to and has permission to cross reference all appropriate and relevant
historical data contained therein, ever cognizant of any HIPPA regulations
and/or limitations and to include all data generated by any collaborating
investigator involved in conducting research and clinical development under the
requisite provisions of the Duke IND.

 

3.2                                 Disclaimers.

 

3.2.1                             No
Implied Warranties.  EXCEPT AS
OTHERWISE EXPRESSLY SET FORTH HEREIN, NEITHER PARTY MAKES ANY REPRESENTATIONS
OR EXTENDS ANY WARRANTIES OF ANY KIND, EITHER EXPRESS OR IMPLIED.

 

3.3                                 Indemnities.

 

3.3.1                             Indemnities.  Celldex and Duke shall indemnify, defend and
hold the other Party (and such other Party’s Affiliates and
Sublicensees/Licensees and their respective 

 

4

 

officers, directors, representatives and
agents) harmless for any and all losses, liabilities, damages, settlements,
costs, legal fees and other expenses incurred in connection with any and all
suits, investigations, claims, demands by a Third Party, including personal
injury, property damage or death (collectively, “Losses”)
against either Party based on a breach by the indemnifying Party, the
indemnifying Party’s Affiliates or, with respect to Celldex,
Sublicensees/Licensees or their respective representatives, agents, employees,
or officers, of any representation, warranty, covenant or other obligation
under this Agreement; provided, however, that the foregoing shall not apply to
the extent the Loss is found to be based upon the gross negligence, recklessness
or willful misconduct of the Party seeking indemnification.

 

3.3.2                             Indemnification
Process.

 

(a)          All
indemnification claims in respect of a Party, its Affiliates, their respective
Sublicensees/Licensees or their respective directors, officers, employees and
agents (each, an “Indemnitee”)
shall be made solely by such Party to this Agreement (the “Indemnified  Party”).  The
Indemnified Party shall give the indemnifying Party prompt written notice of
any Loss or discovery of fact upon which such indemnified Party intends to base
a request for indemnification under this Section 3.3 (a “Claim”), but in no event shall the
indemnifying Party be liable for any Losses that result from any delay in
providing such notice.

 

(b)         At its option,
the indemnifying Party may assume the defense of any Claim.  Upon assuming the defense of a Claim, the
indemnifying Party may appoint as lead counsel in the defense of the Claim any
legal counsel selected by the indemnifying Party that is reasonably acceptable
to the Indemnified Party.  Should the
indemnifying Party assume the defense of a Claim, the indemnifying Party shall
not be liable to the Indemnified Party for any legal expenses subsequently
incurred by such Indemnified Party or an Indemnitee in connection with the analysis,
defense or settlement of the Third Party Claim; provided that the Indemnified Party shall be entitled to
participate in, but not control, the defense of such Claim and to employ
counsel of its choice for such purpose, which shall be at the Indemnified Party’s
own expense unless (A) the employment thereof has been specifically
authorized by the indemnifying Party in writing, (B) the indemnifying
Party has failed to assume the defense and employ counsel in accordance with
this Section 3.3.2(b) (in which case the Indemnified Party shall
control the defense) or (C) the interests of the Indemnified Party or the
Indemnitee, on the one hand, and the indemnifying Party, on the other, with
respect to such Claim are sufficiently adverse to prohibit the representation
by the same counsel of both parties under applicable law, ethical rules or
equitable principles (in which case the Indemnified Party shall control the
defense with respect to it and the Indemnitee).

 

(c)          With respect to
any Losses relating solely to the payment of money damages in connection with a
Claim and that will not result in the Indemnified Party’s or any other
Indemnitee becoming subject to injunctive or other relief or otherwise
adversely affecting the business of the Indemnified Party or such Indemnitee in
any manner, and as to which the indemnifying Party shall have acknowledged in
writing the obligation to indemnify the Indemnified Party and such Indemnitee
hereunder, the indemnifying Party shall have the sole right to consent to the entry
of any judgment, enter into any settlement or otherwise dispose of such Loss,
on such terms as the indemnifying Party, in its sole discretion, shall deem
appropriate.  With respect to all other
Losses in connection with Claims, where the indemnifying Party has 

 

5

 

assumed the defense
of the Claim in accordance with Section 3.3.2(b), the indemnifying Party
shall have authority to consent to the entry of any judgment, enter into any
settlement or otherwise dispose of such Loss provided it obtains the prior
written consent of the Indemnified Party (which consent shall not be
unreasonably withheld, conditioned or delayed). 
The indemnifying Party shall not be liable for any settlement or other
disposition of a Loss by an Indemnified Party or an Indemnitee that is reached
without the written consent of the indemnifying Party, not to be unreasonably
withheld, conditioned or delayed. 
Regardless of whether the indemnifying Party chooses to defend or
prosecute any Claim, no Indemnified Party or Indemnitee shall admit any
liability with respect to, or settle, compromise or discharge, any Claim
without the prior written consent of the indemnifying Party, not to be
unreasonably withheld, conditioned or delayed.

 

(d)         Regardless of
whether the indemnifying Party chooses to defend or prosecute any Claim, the
Indemnified Party shall, and shall cause each Indemnitee to, cooperate in the
defense or prosecution thereof and shall furnish such records, information and
testimony, provide such witnesses and attend such conferences, discovery
proceedings, hearings, trials and appeals as may be reasonably requested in
connection therewith.

 

4.                                      Consideration
to Duke

 

4.1                                 Upfront
Payments.  In
partial consideration of the Licensed Assets licensed to Celldex and Duke’s
other covenants hereunder, Celldex shall [ **** ].

 

4.2                                 Royalties.

 

4.2.1                        Royalty
Obligation.  Subject to Section 4.2.5
below, in partial consideration of the Licensed Assets licensed to Celldex
hereunder, and Duke’s other covenants and agreements hereunder, Celldex shall
pay Duke an earned royalty in the amount of [ **** ].  For avoidance of doubt, in no event shall
Duke be entitled to any royalties on Net Sales of any Celldex Product which is
outside the Field.

 

4.2.2                        Credit.  All amounts paid to Duke by Celldex pursuant
to Section 4.3 below shall be credited against future earned royalty
payments otherwise due under this Section 4.2 [ **** ].

 

4.2.3                        Royalty
Payments.  Running royalties shall be
payable on a quarterly basis, within sixty (60) days after the end of each
calendar quarter, based upon the Net Sales during such calendar quarter,
commencing with the calendar quarter in which the first commercial sale of a
Celldex Product is made.  Royalties shall
be calculated in accordance with U.S. GAAP and with the terms of this Article 4.

 

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

 

6

 

4.2.5                        Third
Party Royalty Offsets.  For each
Celldex Product sold by Celldex, its Affiliates and Sublicensees/Licensees that
is subject to the royalty payment obligation set forth in Section 4.2.1,
Celldex, its Affiliates and its Sublicensees/Licensees shall receive a credit
against amounts otherwise owed to Duke under Section 4.2.1 equal to the
royalties that Celldex, its Affiliates and its Sublicensees/Licensees are
required to pay to Third Parties on Net Sales of such Celldex Product, [ **** ]
of the Net Sales of that Celldex Product for which such Third-Party royalties
are being paid.  If Celldex or any of its
Affiliates or Sublicensees/Licensees is required to pay royalties to a Third
Party on the Celldex Products, Celldex shall use commercially reasonable
efforts to have any royalties owed to such Third Party reduced by the same
proportion as the royalties are reduced pursuant to this Section 4.2.5.  For avoidance of doubt, “commercially
reasonable efforts,” shall be deemed not to require any payment of money or
other financial consideration by Celldex, its Affiliates or
Sublicensees/Licensees to any Third Party. 
Notwithstanding the above offsets, in no event shall Celldex’s
obligation to make payments to Duke under this Agreement fall below [ **** ] per
year in any one-year reporting period in which earned royalties on Net Sales of
Celldex Products in the Field are due and owing to Duke under Section 4.2
hereof.

 

4.3                                 Milestone
Payments, License Maintenance Fees and Other Charges.  In partial consideration of the Licensed
Assets licensed to Celldex hereunder, and Duke’s other covenants and agreements
hereunder, Celldex shall pay to Duke the following additional payments as
follows:

 

(a)          [ **** ] after
the first BLA (or EMEA equivalent) filing for first claim indication for a
Celldex Product in the Field;

 

(b)         [ **** ] after
first approval of first claim indication for a Celldex Product in the Field in
the United States, European Union or Japan; and

 

(c)          [ **** ] after
EACH first approval of subsequent claim(s) indication for a Celldex
Product in the Field in the United States, European Union or Japan.

 

(d)         [ **** ].  Any and all payments made by Celldex to Duke
pursuant to Sections 4.2, 4.3(a), (b) and(c) or 4.5 shall be credited
against Celldex’s payment obligations under this subsection 4.3(d).

 

4.4                                 Payment
Method. 
All amounts due by Celldex under Section 4.3 hereof shall be paid
in U.S. dollars by wire transfer in immediately available funds to an account
designated by Duke or, at Celldex’s discretion, if the Common Stock is listed
or quoted on the Nasdaq National Market or other nationally recognized
exchanges in the United States, the European Union, Canada or Japan, in shares
of Common Stock, but in no case shall such payment in Common Stock represent
more than 50% of the total payment due under Section 4.3.  For purposes of this Section 4.4, the
dollar value per share to be attributed to the Common Stock issued to Duke
hereunder shall be the average of the closing prices of the Common Stock on its
primary exchange for the ten (10) trading days preceding the date such
payment is to be determined.

 

7

 

4.5                                 Sublicensing
Payments. 
Celldex shall pay to Duke [ **** ] of all payments received by Celldex
or its Affiliates from any Sublicensee/Licensee with respect to product
development and/or territorial sales rights for Celldex Products.  For avoidance of doubt, Celldex shall have no
payment obligations under this Section 4.5 for any payment received by
Celldex in consideration for [ **** ] or with respect to collaborative research
and development activities performed by Celldex or its collaborative partners.

 

4.6                                 Records
Retention; Audit.

 

4.6.1                             Record
Retention.  Celldex shall maintain (and shall
ensure that its Affiliates and their respective Sublicensees/Licensees shall
maintain) complete and accurate books, records and accounts that fairly reflect
their respective  Net Sales and the
components thereof with respect to  Celldex
Products in sufficient detail to confirm the accuracy of any payments required
hereunder and in accordance with GAAP, which books, records and accounts shall
be retained by Celldex until one (1) year after the end of the period to
which such books, records and accounts pertain.

 

4.6.2                             Audit.  Duke shall have the right for a period of one
(1) year after receiving any Celldex report to have an independent
certified public accounting firm of nationally recognized standing, reasonably
acceptable to Celldex, to have access during normal business hours, and upon
reasonable prior written notice, to such of the records of Celldex (and its
Affiliates and their respective Sublicensees/Licensees) as may be reasonably
necessary to verify the accuracy of such Net Sales and related expenses for
that calendar quarter. Duke shall not have the right to conduct more than one
such audit in any twelve (12)-month period. 
The accounting firm shall disclose to each Party whether such Net Sales
and related expenses, as applicable,  are
correct or incorrect and the specific details concerning any
discrepancies.  No other information
shall be provided to Duke.  Duke shall
bear the cost of such audit unless the audit reveals a variance of more than
five percent (5%) from the reported results, in which case Celldex shall bear
the cost of the audit.  The results of
such accounting firm shall be final, absent manifest error. Duke agrees to hold
in strict confidence all information concerning royalty payments and reports, and
all information learned in the course of any audit or inspection, except to the
extent necessary for Duke to reveal such information in order to enforce its
rights under this Agreement or if disclosure is required by law.  The failure of Duke to request verification
of any report or statement during said one-year period shall be considered
acceptance of the accuracy of such report. 
Duke shall cause its accounting firm to enter into a reasonably
acceptable confidentiality agreement with Celldex obligating such firm to
maintain all such financial information in confidence pursuant to such
confidentiality agreement.

 

4.6.3                             Payment
of Additional Royalties.  If, based
on the results of such audit, additional payments are owed by Celldex under
this Agreement, Celldex shall make such additional payments within forty-five
(45) days after the date on which such accounting firm’s written report is
delivered to Celldex.

 

5.                                      Additional
Agreements, Covenants, Representations of Duke and Celldex.

 

5.1                                 Material
Transfer. 
Upon Celldex’s request, Duke shall provide Celldex with all PEP-3
product required by Celldex, its Affiliates or Sublicensees/Licensees for use
in clinical 

 

8

 

trials, other reagents/data, monoclonal antibody cell lines,
tumor models, or other tangible materials, documents or data possessed by Duke
or its employees or Affiliates and requested by Celldex for the purpose of
advancing Celldex’s research and development programs, including, without
limitation, access and reference to all existing and future data relevant to
the PEP 3 (Celldex CDX 110 GBM) vaccine program as contained in the Licensed
Assets and/or otherwise generated under any sponsored research agreement
executed and conducted between the parties.

 

5.2                                 Agreements
Regarding Shares.  Duke
agrees that it shall be subject to and shall enter into all stockholder
agreements, holdback agreements and related documents as shall be required of
the other holders of Celldex’s Common Stock from time to time.  Duke hereby further agrees that, to the
extent requested by Celldex or any managing underwriter of Celldex, Duke will
not sell, make short sale of, loan, grant any options for the purchase of, or
otherwise dispose of (other than to donees who agree to be similarly bound):  (i) any Shares during a period of up to
three hundred sixty (360) days following the completion of the initial public
offering of Celldex’s Common Stock or (ii) any of the Shares during a
period of up to ninety (90) days following the completion of any subsequent
public offering (or such shorter period as Celldex or any managing underwriter
may authorize); provided, however, that the preceding restrictions shall apply
to Duke only to the same extent, if any, that such restrictions apply to all
directors, officers and holders of at least 5% of Celldex’s Common Stock at the
time.  Duke shall enter into customary
lock-up agreements as is reasonably requested by Celldex or any underwriter
with respect to the Shares; provided, however, that such lock-up agreements shall
apply to Duke only to the same extent, if any, that the subject lock-up
agreements apply to all directors, officers and holders of at least 5% of
Celldex’s Common Stock at the time.

 

5.3                                 Investment
Representations. 
Duke acknowledges that the Shares are being issued under the exemption
from registration provided by Section 4(2) of the Securities Act of
1933, as amended (the “Securities Act”)
and that the Shares have not been registered under the Securities Act or the
securities laws of any jurisdiction. 
Duke represents, warrants and acknowledges as follows:  it is an “accredited investor,” as defined in
Regulation D under the Securities Act; it has had a meaningful opportunity to
ask questions concerning Celldex and the Shares of the executive officers of
Celldex; it has had full access to all relevant information concerning Celldex
and its investment in the Shares; there are substantial restrictions on the
transferability of the Shares and there is no public market for the Shares, and
therefore it may not be possible to liquidate the Shares in the case of
emergency; Duke is acquiring the Shares for its own investment purposes and not
with a view to, or in connection with a sale or distribution thereof; Duke has
no contract, understanding, undertaking, agreement or arrangement, formal or
informal, to sell, transfer or pledge to any person the Shares or any part
thereof and it consents to the placement of restrictive legends on the stock
certificates representing the Shares, which will be in substantially the
following form:

 

THE SHARES REPRESENTED
HEREBY HAVE BEEN ACQUIRED FOR INVESTMENT AND NOT WITH A VIEW TO, OR IN
CONNECTION WITH, THE SALE OR DISTRIBUTION THEREOF.  NO SUCH SALE OR DISPOSITION MAY BE
EFFECTED WITHOUT AN EFFECTIVE REGISTRATION STATEMENT RELATED THERETO OR AN
OPINION OF COUNSEL SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION IS NOT
REQUIRED UNDER THE SECURITIES ACT OF 1933.

 

9

 

5.4                                 Celldex
Clinical Studies. 
Upon commercially reasonable terms and conditions to be mutually agreed
upon by the Parties, Celldex shall use its best efforts to include Duke as a
clinical trial site for the development of a PEP 3 vaccine program for the
development of Glioblastoma Multiforme (GBM) and other related brain cancers to
be initiated by Celldex or its Affiliates. 
Celldex will use commercially reasonable efforts to provide clinical
grade material, to the extent available to Celldex, for use in future
Duke-initiated clinical trials that have been approved by Celldex; provided
that Duke shall agree to provide Celldex with access to any and all data and
results arising out of any such clinical trials at no additional cost beyond
the sponsored studies to Celldex.  The
terms and conditions governing Duke’s agreement to provide access to such data
shall be set forth in a separately negotiated and budgeted Sponsored Research
Agreement between the parties.

 

5.5                                 Submission
of IND Data to the FDA.  As soon as reasonably practicable, Duke shall
provide the FDA with the appropriate IND data tables related to the Duke
IND.  The parties hereto acknowledge and
agree that the Duke IND will represent supportive information for the filing of
a Celldex IND.  Duke acknowledges that
the FDA will need complete data in order to evaluate the previous human
experience.  Duke hereby agrees to submit
to the FDA, as soon as reasonably practicable, as an IND serial submission, a
complete listing of data currently available from patients on the Activate
trial. Such submission shall include all adverse event and SAE information
(with severity of event, duration and attribution) and Time to Progression and
survival information on all patients. 
Additional data will be provided by Duke at the FDA’s request, provided
that such data is available as part of the Licensed Assets and as required by
the FDA as part of the Duke IND filing. 
If additional data is requested which is not readily available, the
Parties agree to confer as to how to address such request, the potential costs
associated therewith and how to resolve the issue.

 

5.6                                 Duke
Protocols. 
Upon Celldex’s request, Duke shall provide Celldex with the detailed
protocol used for immunohistochemistry (IHC) in the clinical trials as well as
all relevant information related to the manufacturing and safety of the PEP 3vaccine
used in connection with the Duke IND.

 

5.7                                 Research
Grant. 
Celldex, at its sole discretion and in a time frame it shall elect,
should it so choose, will provide an Unrestricted Research Grant in the
aggregate amount of [ **** ] (the “Grant”) to the laboratory of Dr. John
Sampson, Associate Professor – Surgery (Neurosurgery), Duke University School
of Medicine.  The Grant shall be used to
provide funding for related research in the Field.  The Grant shall be made in the installments
as set forth below:

 

	
  Amount

  	
   

  	
  Payment Date

  
	
   

  	
   

  	
   

  
	
  [ **** ]

  	
   

  	
  Upon
  execution of an Unrestricted Research Grant Agreement Letter.

  
	
   

  	
   

  	
   

  
	
  [ **** ]

  	
   

  	
  Within
  thirty (30) days of the date of the Unrestricted Grant Agreement Letter.

  
	
   

  	
   

  	
   

  
	
  [ **** ]

  	
   

  	
  Within
  ninety (90) days of the date of the 

  

 

10

 

	
   

  	
   

  	
  Unrestricted
  Research Grant Agreement Letter; provided that such final payment shall only
  be due and payable upon the submission by Duke to Celldex of a Statement of
  Research Intent describing a Research Program agreeable to both Parties.
  Further, periodic reports, not less than quarterly after the commencement of
  the research conducted under such research plan shall be provided to CELLDEX;
  and in the event that data or other information generated under such research
  plan is deemed to be within the definition and scope of Licensed Assets under
  the terms of this Agreement, then all such data and/or information shall be
  made available and accessible to CELLDEX for its evaluation and use.

  

 

6.                                      Confidentiality.

 

6.1                                 Treatment
of Confidential Information.  Each Party shall maintain all information of
the other Party and its Affiliates in confidence, including the existence and
terms and conditions of this Agreement, and shall not disclose, divulge or
otherwise communicate such information to others, or use it for any purpose,
except pursuant to, and in order to carry out, the terms and objectives of this
Agreement, and hereby agrees to exercise every reasonable precaution to prevent
and restrain the unauthorized disclosure or use of such information by any of
its Affiliates, directors, officers, employees, consultants, subcontractors,
sublicensees or agents.

 

6.2                                 Release
from Restrictions. The provisions of Section 6.1 shall
not apply to any information disclosed hereunder that: (a) was known or
used by the receiving Party or its Affiliates prior to its date of disclosure
to the receiving Party, as evidenced by the prior written records of the
receiving Party or its Affiliates; or (b) either before or after the date
of the disclosure to the receiving Party is lawfully disclosed without
restriction to the receiving Party or its Affiliates by an independent,
unaffiliated Third Party rightfully in possession of the confidential
information (but only to the extent of the rights received from such Third
Party); or (c) either before or after the date of the disclosure to the
receiving Party becomes published or generally known to the public through no
fault or omission on the part of the receiving Party or its Affiliates; or (d) is
generally made available by the disclosing Party to Third Parties without
restriction; Further, the receiving Party shall have the right to disclose
information disclosed by the other Party (x) to the extent necessary to
comply with applicable laws, to defend or prosecute litigation or to comply
with governmental regulations, or the rules of a stock exchange or NASDAQ,
provided that the receiving Party
provides prior written notice of such disclosure to the other Party and takes
reasonable and lawful actions to avoid or minimize the degree of such
disclosure including assisting the Party whose information is being disclosed
to seek confidential treatment or a protective order, or (y) to existing
or potential acquirers or merger candidates, existing or potential
Sublicensees/Licensees, investment bankers, existing or potential investors,
venture capital firms or other financial institutions or investors for purposes
of obtaining 

 

11

 

financing, each of whom prior to disclosure must be bound by
obligations of confidentiality and non-use at least equivalent in scope to
those set forth in this Article 6.

 

7.                                      Miscellaneous.

 

7.1                                 Construction.  Except where the context requires otherwise,
whenever used the singular includes the plural, the plural includes the
singular, the use of any gender is applicable to all genders and the word “or”
has the inclusive meaning represented by the phrase “and/or”.  Whenever this Agreement refers to a number of
days, unless otherwise specified, such number refers to calendar days.  The headings of this Agreement are for
convenience of reference only and do not define, describe, extend or limit the
scope or intent of this Agreement or the scope or intent of any provision
contained in this Agreement.  The term “including”
or “includes” as used in this Agreement means including, without limiting the
generality of any description preceding such term.  The wording of this Agreement shall be deemed
to be the wording mutually chosen by the Parties and no rule of strict
construction shall be applied against any Party.

 

7.2                                 Publicity.  Except as otherwise required by law, rule or
regulation, neither Party shall issue a press release regarding this Agreement
or originate any publicity, news release or other public announcement, written
or oral, relating to this Agreement without the prior written approval of the
other Party; provided, however, that the Parties agree that
disclosures of information for which consent has been previously obtained shall
not require additional approval.  If a
public disclosure is required by law, rule or regulation, the disclosing
Party shall provide copies of the disclosure reasonably in advance of such
filing or other disclosure for the nondisclosing Party’s prior review and
comment; provided, however, that no such review and comment shall
be required for any filing with the Securities and Exchange Commission,
including on Form 10K or Form 10Q or Form 8K or other similar
filing under the Securities Exchange Act of 1934, as amended, or a Registration
Statement under the Securities Act of 1933, as amended

 

7.3                                 No
Implied Licenses. 
Only the licenses granted pursuant to the express terms of this
Agreement shall be of any legal force and effect.  No license rights shall be created by
implication or estoppel.

 

7.4                                 No
Agency. 
Nothing herein shall be deemed to constitute any Party as the agent or
representative of the other Party, or the Parties as joint venturers or
partners for any purpose.

 

7.5                                 Notice.   Any
notice, request, demand, waiver, consent, approval or other communication
permitted or required under this Agreement shall be in writing, shall refer
specifically to this Agreement and shall be deemed given only if delivered by
hand or by nationally recognized overnight delivery service that maintains
records of delivery, addressed to the Parties at their respective addresses set
forth below or to such other address as the Party to whom notice is to be given
may have provided to the other Party in accordance with this Section 7.5.  Such notice shall be deemed to have been
given as of the date delivered by hand 
or on the third business day (at the place of delivery) after deposit
with a nationally recognized overnight delivery service.

 

12

 

	
  If to Duke:

  	
   

  	
  For delivery
  via the U.S. Postal Service

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Office of Corporate and Venture Development

  
	
   

  	
   

  	
  Duke University

  
	
   

  	
   

  	
  Attention: License Administrator

  
	
   

  	
   

  	
  31 Tower Blvd., Suite 1300

  
	
   

  	
   

  	
  Box 90083

  
	
   

  	
   

  	
  Durham, NC 27708 USA

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  For
  delivery via nationally/internationally recognized courier

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Office of Corporate and Venture Development

  
	
   

  	
   

  	
  Duke University

  
	
   

  	
   

  	
  Attention: License Administrator

  
	
   

  	
   

  	
  31 Tower Blvd., Suite 1300

  
	
   

  	
   

  	
  Box 90083

  
	
   

  	
   

  	
  Durham, NC 27705 USA

  
	
   

  	
   

  	
   

  
	
  With a copy
  to (if of a legal nature):

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Office of University Counsel

  
	
   

  	
   

  	
  Duke University

  
	
   

  	
   

  	
  2400 Pratt Street, Suite 4000

  
	
   

  	
   

  	
  Durham, NC 27710

  
	
   

  	
   

  	
   

  
	
  If to
  Celldex:

  	
   

  	
  Celldex
  Therapeutics, Inc.

  
	
   

  	
   

  	
  222 Cameron
  Drive, Suite 400

  
	
   

  	
   

  	
  Phillipsburg,
  NJ 08865

  
	
   

  	
   

  	
  Attention:
  President

  
	
   

  	
   

  	
   

  
	
  With copies
  to:

  	
   

  	
  Satterlee
  Stephens Burke & Burke LLP

  
	
   

  	
   

  	
  230 Park
  Avenue

  
	
   

  	
   

  	
  New York, NY
  10169

  
	
   

  	
   

  	
  Attn:
  Dwight A. Kinsey, Esq

  
				

.

 

7.6                                 Assignment.  This Agreement, and the rights and
obligations hereunder, may not be assigned or transferred, in whole or in part,
by any Party without the prior written consent of the other Party, except (a) to
Affiliates of such Party, or (b) in connection with a Change of Control,
provided that any assignee or the successor entity agrees to be bound by the
terms and conditions of this Agreement and provided furthermore that the
assigning Party, if it survives, continues to remain primarily liable for
performance of any Affiliate to which it assigns the Agreement or any of its
rights or obligations hereunder, and (c) if Celldex transfers a Celldex
Product to a Third Party provided such entity agrees to be bound by the terms
and conditions of this Agreement and provided furthermore that Celldex
continues to remain primarily liable for performance by the Third Party to
which it assigns the Agreement or any of its rights or obligations
hereunder.  Without limiting the
preceding sentence, all validly assigned rights of a Party shall inure to the
benefit of and be enforceable by, and all validly delegated obligations of such
Party shall be binding on and be enforceable against, the permitted successors
and assigns 

 

13

 

of such Party.  Any
attempted assignment or delegation in violation of this Section 7.6 shall
be void.  The license granted in this
Agreement shall be binding on any successor of Duke in Control of the Licensed
Assets.

 

7.7                                 No
Modification. 
This Agreement may be amended only by a writing signed by authorized
representatives of the Parties.

 

7.8                                 Waiver.  The waiver by any Party of a breach or a
default of any provision of this Agreement by the other Party shall not be
construed as a waiver of any succeeding breach of the same or any other
provision, nor shall any delay or omission on the part of any Party to exercise
or avail itself of any right, power or privilege that it has or may have
hereunder operate as a waiver of any right, power, or privilege by such Party.

 

7.9                                 Severability.  To the fullest extent permitted by applicable
law, the Parties waive any provision of law that would render any provision in
this Agreement invalid, illegal or unenforceable in any respect.  If any provision of this Agreement is held to
be invalid, illegal or unenforceable, in any respect, then such provision will
be given no effect by the Parties and shall not form part of this
Agreement.  To the fullest extent
permitted by applicable law and if the rights or obligations of any Party will
not be materially and adversely affected, all other provisions of this
Agreement shall remain in full force and effect and the Parties will use their
best efforts to negotiate a provision in replacement of the provision held
invalid, illegal or unenforceable that is consistent with applicable law and
achieves, as nearly as possible, the original intention of the Parties.

 

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

 

7.11                           Governing
Law; Jurisdiction and Venue.  This Agreement shall in all events and for
all purposes be governed by, and construed in accordance with, the laws of the
State of Delaware without regard to any choice of law principle that would
dictate the application of the law of another jurisdiction.  The
Parties hereby irrevocably and unconditionally consent to the exclusive
jurisdiction of the courts of the State of Delaware and the United States
District Court for the District of Delaware for any action, suit or proceeding (other
than appeals therefrom) arising out of or relating to this Agreement, and agree
not to commence any action, suit or proceeding (other than appeals therefrom)
related thereto except in such courts. 
The Parties further hereby irrevocably and unconditionally waive any
objection to the laying of venue of any action, suit or proceeding (other than
appeals therefrom) arising out of or relating to this Agreement in the courts
of the State of Delaware or the United States District Court for the District of
Delaware, and hereby further irrevocably and unconditionally waive and agree
not to plead or claim in any such court that any such action, suit or
proceeding brought in any such court has been brought in an inconvenient forum.  Each Party hereto further agrees that service
of any process, summons, notice or document by U.S. registered mail to its
address set forth below shall be effective service of process for any action,
suit or proceeding brought against it under this Agreement in any such court.

 

14

 

7.12                           No
Consents. 
Neither Party requires any consents, permissions, waivers or licenses
from third parties in order to provide each other with the license rights
provided for herein or to otherwise satisfy the terms of this Agreement.

 

7.13                           Entire
Agreement. 
This Agreement constitutes the entire agreement of the Parties with
regard to its subject matter, and supersedes all previous written or oral
representations, agreements and understandings between the Parties.

 

15

 

IN WITNESS WHEREOF, duly-authorized
representatives of the Parties have signed this License Agreement as a document
under seal as of the Effective Date.

 

	
  DUKE UNIVERSITY

  	
  CELLDEX THERAPEUTICS, INC.

  
	
   

  	
   

  
	
   

  
	
  By:

  	
   

  	
   

  	
  By:

  	
      /s/ Anthony Marucci

  
	
  Name:

  	
  Name:

  	
  Anthony S. Marucci

  
	
  Title:

  	
  Title: Vice President and Chief Financial

  
	
   

  	
   

  	
  Officer

  
						

 

16

 

Schedule A

Licensed Assets

 

The Licensed Assets shall
include, without limitation, that certain Investigator IND FDA No. 9944
and all information relevant to FDA review of IND FDA No. 9944.  Access to and the right to cross reference
other INDs cited in IND FDA No. 9944, to wit, INDs FDA Nos. 8319, 4250,
8434, 7462 and 4966 and so referenced therein will be extended to Celldex, but
only to the extent of Duke’s power and ability to do so.  The Licensed Assets shall also include (i) any
and all associated Phase I and Phase II clinical trial data for the EGFRvIII
peptide vaccine held by Dr. John Sampson, Associate Professor,
Neurosurgery, Duke University Medical Center, which such data shall include all
data associated with patients treated with the PEP-3 vaccine under said IND FDA
No. 9944; (ii) any and all data and other information developed as a
consequence of the activities funded by the Unrestricted Research Grant, in so
far as it may relate to said IND; and (iii) all relevant historical data,
inclusive of all data produced by any collaborating investigators conducting
work under the Investigator IND FDA No. 9944. Any such data and
information shall also be accessible to and referenceable by Celldex.

 

17

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