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Exhibit 10.15  

***Text Omitted and Filed Separately

with the Securities and Exchange Commission.

Confidential Treatment Requested

Under 17 C.F.R. Sections 200.80(b)(4),

200.83 and 230.406.  

  
 

    COLLABORATIVE RESEARCH
  AND LICENSE AGREEMENT    
    
    BETWEEN    
    
    SENOMYX, INC.    
    
    AND    
    
    NESTEC Ltd.    
    

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COLLABORATIVE RESEARCH AND LICENSE AGREEMENT  

        This Agreement is entered into as of the Effective Date by and between Senomyx, Inc., a Delaware Corporation having offices at 11099 North Torrey
Pines Road, La Jolla, CA 92037 ("Senomyx") and NESTEC, Ltd., a Swiss company, having its principal place of business at Avenue Nestlé 55, CH-1800 Vevey,
Switzerland ("Nestlé"). 

BACKGROUND  

        Senomyx conducts research in the field of chemo sensation, an objective of which is to study potential biological targets and develop assays for use in the
discovery and commercialization of products in taste and olfaction. Nestlé (together with its Affiliates) is in the business of developing, manufacturing, marketing and selling consumer
products. Senomyx and Nestlé desire to collaborate in two research and development programs. One program is to discover compounds that enhance the  [***] taste of products in defined fields. The
other is to enhance the taste of  [***] in defined fields. 

        NOW,
THEREFORE, in consideration of the foregoing promises and of the covenants, representations and agreements set forth below, the parties agree as follows: 

THE AGREEMENT  

1.    Definitions.    Certain terms set forth in this Agreement with initial
capitals are defined in Appendix A, which is incorporated by reference. 

2.    Steering Committees.    No later than ten days after the Effective Date, the
parties will establish two joint steering committees, each of which will be made up of representatives from the parties (collectively the "Steering Committees") one Steering Committee shall be for the  [***] Program and one Steering Committee shall be for the  [***] Program. The Steering Committees will manage the Collaborative Programs and will (i) provide strategic direction
and performance criteria for the Collaborative Programs; (ii) monitor progress and communicate status of the Collaborative Programs; (iii) facilitate the cooperation of the parties under
the Collaborative Programs; (iv) will approve the achievement of milestones; and, (v) will continue to communicate following the Collaborative Period regarding the development and
commercialization of Products. Each Steering Committee will consist of two representatives designated by Senomyx and two representatives designated by Nestlé. Each member of the
Steering Committees will have one vote. The Steering Committees will first meet no later than thirty days after the Effective Date and at least four times per year during the Collaborative Period
using mutually agreed upon meeting locations and formats including teleconferencing and videoconferencing. Each party shall bear its own expenses relating to the meetings and activities of the
Steering Committees. During the Collaborative Period, Senomyx will promptly prepare and deliver to the members of the Steering Committees minutes of such meetings for review and approval of both
parties. Decisions in each of the Steering Committees will be made by unanimous vote, at a meeting where all four voting representatives are present. Each member (or an authorized representative) of
each of the Steering Committees must be represented at each meeting either in person, or by a mutually agreed upon format including teleconferencing and videoconferencing, for a quorum to be
constituted. All unresolved disputes will be settled in accordance with Section 17.4, or as otherwise mutually agreed upon in writing. 

3.    Collaborative Programs.    Senomyx will collaborate exclusively with
Nestlé in the [***] Program and the [***]
Program in the Relevant Categories. 

        3.1    Research.    

        (A)  At
each of the first Steering Committee meetings of the Collaborative Programs, the respective Steering Committee will review (i) the detailed scientific research
plan for the [***] Program that defines the success of the  [***] Program (the "[***] Research Plan"); and
(ii) the 

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detailed
scientific research plan for the [***] Program that defines the success of the  [***] Program (the "[***]
Research Plan"). The Research
Plans are attached as Appendix B and incorporated into the Agreement by reference. Both Research Plans will begin on the Effective Date and each will be completed upon the selection of the
first Selected Compound for its respective Collaborative Program. 

        (B)  During
the Collaborative Period, Senomyx will perform the activities outlined in the Research Plans, including US Regulatory Approval and European Regulatory Approval
using reasonable efforts, and the applicable resources provided under Section 7.1. Senomyx will prepare (i) a data package for  [***] Compounds for the [***]
 Program; and (ii) a
data package for [***] Compounds for the [***] Program,
as the parties shall agree. 

        (C)  During
the Collaborative Period, Nestlé will use reasonable efforts to perform the activities in accordance with the Research Plans, including the
evaluation of the data packages provided by Senomyx for Compounds as provided for under Section 3.1(B). Such evaluation by Nestlé shall not exceed  [***]. 

        (D)  During
the Collaborative Period, the Steering Committees will each select the Selected Compounds for development after evaluation of the data packages by
Nestlé, as provided for under Section 3(C), at the meeting of the applicable Steering Committee following the submission of the data packages as provided for under
Section 3.1(B). 

        3.2    Product Development.    Upon the completion of either US Regulatory Approval or European Regulatory Approval,
Nestlé will use its reasonable endeavors to implement and complete a concept and products acceptance test within a period of  [***] to ascertain the commercial potential of Products (e.g. product
concept development, consumer testing etc). Upon
completion of this process ("Decision Date"), Nestlé will decide in which of the Relevant Categories it wishes to commercialize Products and will notify the Steering Committee in
writing of same. By the Decision Date and annually thereafter beginning the first day of the Calendar Year, Nestlé agrees to prepare and present to Senomyx a presentation which will
include information relating to marketing concepts, strategy, estimated targets, certain available market research data, and projected Net Sales (only for each Relevant Category and not by individual
product) to be submitted to Senomyx prior to the beginning of the Calendar Year (the "Product Marketing Report"). The Product Marketing Report will not be binding and neither Nestlé nor
any of its Affiliates makes any warranty that any Net Sales projection in a Product Marketing Report will be achieved. The Steering Committee will meet as appropriate to review actual Net Sales and
Product Marketing Report. 

        If
at the Decision Date, Nestlé decides not to commercialize any [***] Products in a Relevant
Category the rights granted to Nestlé by Senomyx under Section 8.1(C) for [***] Products in such Relevant
Category will terminate and revert back to Senomyx and Nestlé's obligations for such [***] Products in such
Relevant Category shall be terminated. Likewise, if at the Decision Date, Nestlé decides not to commercialize any  [***] Products in a Relevant Category the rights granted to Nestlé by
Senomyx under Section 8.1(C) for  [***] Products in such Relevant Category will terminate and revert back to Senomyx and Nestlé's obligations for
such [***] Products in such Relevant Category shall be terminated. In addition, during the Collaborative Period if
Nestlé requests to commercialize Products in a previously un-known application in the New Category or a Relevant Category, and rights to such application have not been
granted by Senomyx to a Third Party, such application will be added to a Relevant Category for such Product for no additional funding under Section 7.1 or 7.2. After the Collaborative Period if
Nestlé requests to commercialize Products in a previously un-known application in the New Category or a Relevant Category, and rights to such application have not been
granted by Senomyx to a Third Party, such application will be added to a Relevant Category for such Product, and the royalties rates for the commercialization of such Products will be the royalty
rates referred to in Clause 7.4(A). The parties will negotiate in good faith that additional funding, if any, to be paid by Nestlé and other commercial terms. 

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        3.3    Responsibilities of Parties in Development Phase.    All regulatory filings made or filed by Senomyx for any
Selected Compound will be owned exclusively by Senomyx and shall be subject to the license grant pursuant to Section 8. Senomyx shall be responsible for all costs associated with such
regulatory filings; provided, however, notwithstanding Section 7.2(3), if costs to Senomyx associated for such regulatory approval exceed  [***], as documented by Senomyx, then the applicable
Steering Committee will decide on the further obligations of the parties
pursuant to this Section 3.3, then Nestlé will cooperate to the extent reasonably necessary to permit Senomyx to perform the foregoing activities. 

4.    Collaboration with an Affiliate or Third Party.    During the Term, and
without limitation to the grant of rights in Section 8, Senomyx will have the right to enter into collaborative programs with its Affiliates or with Third parties including, but not limited to,
collaborative programs to discover compounds that enhance (i) the [***] taste of products outside the  [***] Field; (ii) the taste of [***] and  [***] in products outside the [***] Field;
(iii) enhance the taste of molecules other than [***] within the  [***] Field and [***] and 
[***] within the [***] Field. However, Senomyx shall
notify Nestlé, in writing, prior to entering into a collaborative program with an Affiliate or with a Third party during the Collaborative Period for the discovery of compounds that
enhance the [***] taste of products or to enhance the taste of  [***] and [***]in products that are not
described in the  [***] Category, the [***] Category, the  [***] Category, the [***]
 Category, or the  [***] Category, of such program and products and if Nestlé does not have, at the time of such notification, plans
to commercialize products that would fall under such program and products, Senomyx may enter into such program for such products. If Nestlé has such plans to commercialize products that
would fall under such program and products, Nestlé shall notify Senomyx, within [***] of receipt of notification
from Senomyx, and the parties will amend the Agreement to add such products to the appropriate Relevant Category. 

5.    Law and Regulation.    The Compounds, Selected Compounds, Product Compounds
and Materials provided by Senomyx under this Agreement must be used in compliance with all applicable laws and regulations, including, without limitation, all import and export laws and regulations. 

6.    Reporting.    Each party will report to the other a written summary of results
of research and development work it carries out, if any, under this Agreement within [***] Steering Committee meeting. Each
party agrees to prepare and exchange written and electronic reports concerning any results and data that must be used by either party as supporting information for any regulatory filings. The exchange
of such report may be reasonably supplemented, at the request of the party receiving a report, by correspondence and/or upon reasonable prior notice, during visits to the other party's facilities
where activities referred to in the Research Plans are conducted. 

7.    Financial Terms.    

        7.1    Annual Research Support.    Each year during the Collaborative Period, Nestlé will pay Senomyx
$2,333,333 per year for the Collaborative Programs, [***] for the  [***] Program and [***] for the 
[***] Program. The payments will be made in advance and on an equal quarterly basis. The first payment will be made within  [***] following the Effective Date.
These payments are inclusive of overhead, labor, and supplies. These payments do not include
(i) Nestlé's costs associated with providing support for the collaboration; or (ii) the costs of any unanticipated materials as requested and agreed to by the parties.
Additional funding, if any, will be proposed to the Steering Committees and agreed to in writing by the parties. 

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        7.2    Milestone Payments.    Nestlé will pay Senomyx the following non-creditable,
non-refundable milestone payments of USD [***] each within  [***] of the occurrence of the following milestone events. 

        7.2.1    Milestones
for the [***] Program: 

        7.2.1(1)    [***] Program milestone 1

                Deadline: [***] after the Effective Date of the license Agreement

                Objective: (i) Identify at least [***] that  [***]; and
Initiate [***]. 

        7.2.1(2)    [***] Program milestone 2

                Deadline: [***] after achieving [***]

                Objective: (i) Identify at least [***] that  [***]; and (ii)
Complete [***] and mutually agreed upon
[***]. 

        7.2.1(3)    [***] Program milestone 3

                Deadline: [***] after achieving [***]

                Objective: (i) Selection by Steering Committee of [***]; (ii) Initiate  [***]
; and (iii) [***]. 

        7.2.1(4)    [***] Program milestone 4

                Deadline: [***] after achieving [***]

                Objective: (i) Receive [***]; and, (ii) Initiate  [***].

        7.2.2    Milestones
for the [***] Program: 

        7.2.2(1)    [***] Program milestone 1

                Deadline: [***] after the Effective date [***]

                Objective: (i) Develop [***]; and (ii) Initiate  [***].

        7.2.2(2)    [***] Program milestone 2

                Deadline: [***] after achieving [***]

                Objective: (i) Identify at least [***] that  [***]; and (ii)
Complete [***]; and, (iii) Complete  [***] and mutually agreed upon [***]. 

        7.2.2(3)    [***] Program milestone 3

                Deadline: [***] after achieving [***]

                Objective: (i) Selection by Steering Committee of [***]; (ii) Initiate  [***]
; and (iii) Initiate [***]. 

        7.2.2(4)    [***] Program milestone 4

                Deadline: [***] after achieving [***]

                Objective: Receive [***]; and (ii) Initiate  [***].

        7.2.3    In
respect of the [***] Program and the  [***] Program and in order to achieve the milestone above, Senomyx may decide which of the  [***] it wishes to obtain but in any event Senomyx must obtain  [***] in order to achieve the relevant milestone referred to above and must obtain the relevant 
[***] within the time frame referred to in that milestone. Unless terms are specifically agreed in writing between
Nestlé and Senomyx, no additional payment will be made by Nestlé (including but not limited to any additional research funding) if  [***]. 

        7.3    Late Achievement of Milestones.    Where a Milestone referred to in Section 7.2 above is not achieved by
the Milestone Deadline, then, except to the extent that any such non achievement of a milestone is caused by Nestlé or an unforeseeable event caused by a regulatory body, the milestone
payments [***]. 

        7.4    Royalty for Products.    Nestlé will pay to Senomyx the following earned royalties during the
Royalty Term: 

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        (A)  Nestlé
will pay Senomyx a royalty equal to [***] on that portion of total actual  [***] of a Product(s) that contains [***] provided,
however, that the royalty rate will be equal to [***] on the portion of total annual  [***] of a Product(s) that contains [***]
. 

        (B)  If,
after the Decision Date, Nestlé elects to commercialize Product(s) in a Relevant Category, it will act with reasonable diligence to commercialize such
Product(s); 

        (C)  If
Nestlé chooses to commercialize a Product(s) in the [***] Category and
Nestlé has not by the end of a [***] period starting from the Decision Date, attained a total amount of  [***] of Products within the [***] Category of USD  [***], Nestlé shall pay the remaining difference between the total amount of royalties already paid in those  [***]
 and the amount of USD [***] to Senomyx. 

        (D)  If
Nestlé chooses to commercialize a Product(s) in the [***] Category and
Nestlé has not by the end of a [***] period, starting from the Decision Date, attained a total amount of Net
Sales of Products within the [***] Category amounting to USD  [***] Nestlé shall pay the remaining difference between the total amount of royalties
already paid in those  [***] and the amount of USD [***] to Senomyx. 

        (E)  After
the end of the periods specified in (C) and (D) above and for the remainder of the Royalty Term, if Nestlé decides at any time to cease
commercializing all [***] Products in a Relevant Category the rights granted to Nestlé by Senomyx under
Section 8.1 (C) for [***] Products in such Relevant Category will terminate and revert back to Senomyx and
Nestlé's obligations for such [***] Products in such Relevant Category shall be terminated. Likewise, if
Nestlé decides at any time to cease commercializing all [***] Products in a Relevant Category the rights granted
to Nestlé by Senomyx under Section 8.1 (C) for [***] Products in such Relevant Category will
terminate and revert back to Senomyx and Nestlé's obligations for such [***] Products in such Relevant Category
shall be terminated. 

        (F)  On
and from the end of the periods specified in (C) and (D) above and for the remainder of the Royalty Term, and in respect of the  [***] Category if, during [***]
, Nestlé
(through its Affiliates) has not achieved a combined minimum amount of [***] of Products which is equal to or greater than USD  [***], then, at
Nestlé's option (notified in writing to Senomyx), either: (i) the rights granted to
Nestlé by Senomyx under Section 8.1(C) for Products in the [***] Category will terminate and revert
back to Senomyx and Nestlé's obligations for such Products in the [***] Category shall be terminated; or
(ii) Nestlé will pay to Senomyx an amount of USD [***], such amount to be paid within  [***] after Nestlé notifies Senomyx that it has
exercised this option. Nestlé will use all
reasonable efforts to decide promptly which option to pursue under this Section and in any event if it has not provided written notification to Senomyx within  [***] after the last day of [***], then
Nestlé's rights referred to in this Section will be automatically terminated as if Nestlé had elected to do so under this Section. Even if Nestlé has
exercised its option to retain the licenses referred to in this Section, if Nestlé (through its Affiliates) has not achieved a combined minimum annual amount of  [***] of Products which is equal
to or greater than USD  [***] for [***], the rights granted to
Nestlé by Senomyx under Section 8.1 (C) for Products in the [***] Category will terminate and
revert back to Senomyx and Nestlé's obligations for such Products in the [***] Category shall be terminated. 

        (G)  On
and from the end of the periods specified in (C) and (D) above and for the remainder of the Royalty Term, and in respect of the  [***] Category if, during a [***]
, Nestlé
(through its Affiliates) has not achieved a combined minimum amount of [***] of Products which is equal to or greater than USD  [***], then, at
Nestlé's option (notified in writing to Senomyx), either: (i) the rights granted to
Nestlé by Senomyx under Section 8.1(C) for Products in the [***] Category will terminate and revert
back to Senomyx and Nestlé's obligations for such Products in the [***] Category shall be terminated; or
(ii) Nestlé will pay to Senomyx an amount of USD 

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 [***], such amount to be paid within [***] after Nestlé notifies
Senomyx that it has exercised this option. Nestlé will use all reasonable efforts to decide promptly which option to pursue under this Section and in any event if it has not provided
written notification to Senomyx within [***] after the last day of  [***], then Nestlé's rights referred to in this Section will be automatically
terminated as if
Nestlé had elected to do so under this Section. Even if Nestlé has exercised its option to retain the licenses referred to in this Section, if Nestlé
(through its Affiliates) has not achieved a combined minimum annual amount of [***] of Products which is equal to or greater
than USD [***] for [***], the rights granted to
Nestlé by Senomyx under Section 8.1(C) for Products in the [***] Category will terminate and revert
back to Senomyx and Nestlé's obligations for such Products in the [***] Category shall be terminated. 

        7.5    If at any time during the Royalty Term any other Third Party discovers and is able to commercialize a compound or
material which enhances the [***] taste of products with application to products in either the  [***] Field or the [***]
 Field and/or any Third Party
rights come into existence over a Selected Compound, Nestlé has [***]. 

        Any
unsolved disputes regarding [***] will be settled in accordance with Section 17.4 or as otherwise
mutually agreed upon in writing. 

        7.6    Payment Terms.    The royalties due under Section 7 will be paid within  [***]
 after the end of each quarter period of a Calendar Year in which such royalties are earned during the Royalty Term for
each Product. With each such quarterly payment, Nestlé will furnish to Senomyx a royalty statement in sufficient detail to permit confirmation of the accuracy of the royalty payment
made, which sets forth on a country-by-country basis the relevant sales information, including the total  [***] of each such Product sold, [***], the
royalties
payable in United States dollars, the method used to calculate the royalty, the exchange rate used and other information employed to calculate  [***] for such Product. 

        7.7    Currency of Payment.    All payments to be made under this Agreement, including the royalties payable to
Senomyx by Nestlé, will be paid in Swiss Francs by wire transfer (or other means acceptable to Senomyx) to a bank account designated by Senomyx. 

        7.8    Taxes Withheld.    Any income or other tax that Nestlé, or any of its Affiliates is required by
a government agency to withhold and pay on behalf of Senomyx with respect to the royalties payable under this Agreement will be deducted from and offset against such royalties prior to remittance to
Senomyx; provided, however, that in regard to any tax so deducted, Nestlé will give or cause to be given to Senomyx such assistance as may reasonably be necessary to enable Senomyx to
claim exemption from or credit for the tax so deducted, and in each case will promptly furnish to Senomyx proper evidence of the taxes paid on Senomyx's behalf. 

        7.9    Late Payment.    In the event that any payment, including royalty payments, due hereunder is not made when due,
the payment will accrue interest from that date due at the rate of [***]; provided, however, that in no event will such rate
exceed the maximum legal annual interest rate. The payment of such interest will not limit Senomyx from exercising any other rights it may have as a consequence of the lateness of any payment. 

        7.10    Records of Unit Sales, Net Sales and Royalty Calculations.    During the Royalty Term and for a period of
three years thereafter, Nestlé will keep complete and accurate records of sales and all other information necessary to calculate  [***] of each Product in sufficient detail to allow the accrued
royalties to be determined accurately in accordance with
International Accounting Standards (IAS) and to verify the royalty payments pursuant to Section 7.4. Senomyx, with reasonable written notice to Nestlé, will have the right to
cause a nationally recognized independent, certified public accountant that is acceptable to both parties to audit such records at the place or places of business where such records are customarily
kept in order to verify the accuracy of the reports of [***] and royalty payments. Such accountant must execute a
confidentiality agreement prior to entering Nestlé's premises, obligating such 

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accountant
to keep all information disclosed to it confidential and will only be permitted to disclose to Senomyx the extent of any discrepancy between royalty payments made by Nestlé
under this Agreement and the actual royalty required to be so paid. Senomyx will bear the reasonable cost of such audit unless such audit discloses a variance of more than  [***] in Senomyx's favor from
the amount of the royalties due under this Agreement, in which event, Nestlé will
bear the reasonable cost of such audit. In all events, Nestlé will pay any underpayment with interest in accordance with Section 7.9. Senomyx agrees not to disclose Confidential
Information concerning royalty payments reports, and all other information learned in the course of an audit or inspection, except to the extent necessary for Senomyx to enforce its rights under this
Agreement or if disclosure is required by law. 

8.    Grants.    Subject to the terms and conditions of this Agreement, Senomyx
hereby grants to Nestlé and Nestlé hereby grants to Senomyx the following rights: 

        8.1    Grant of Rights regarding Compounds, Selected Compounds and Products:    

        Subject
to the terms and conditions of this Agreement, Senomyx hereby grants to Nestlé the following rights as of the later of thirty days after execution of this
Agreement or of the expiration of the waiting period under the under the Hart Scott Rodino Act, if any notification and report under that Act is required: 

        (A)  a
non-exclusive, nontransferable (except as permitted under Section 17.12), worldwide license under the Senomyx Technology to use Compound(s)
discovered under the [***] Program for evaluation in the  [***] Field; and Senomyx hereby grants to Nestlé a nonexclusive, nontransferable (except as
permitted under
Section 17.12), worldwide license under the Senomyx Technology to use Compound(s) discovered under the [***] Program for
evaluation in the [***] Field; 

        (B)  an
exclusive, nontransferable (except as permitted under Section 17.12), worldwide license under the Senomyx Technology to use  [***] Compound(s) solely for non-commercial development of  [***] Products in the [***] Field; and Senomyx hereby
grants to Nestlé an exclusive, nontransferable (except as permitted under Section 17.12), worldwide license under the Senomyx Technology to use  [***] Compound(s) solely for non-commercial
development of  [***] Products in the [***] Field; and 

        (C)  an
exclusive, nontransferable (except as permitted under Section 17.12), worldwide license under the Senomyx Technology to make, have made, use, sell, offer for
sale, have sold, import and export [***] Products for the  [***] Field; and Senomyx hereby grants to Nestlé an exclusive, nontransferable (except as
permitted under
Section 17.12), worldwide license under the Senomyx Technology to make, have made, use, sell, offer for sale, have sold, import and export  [***] Products for the [***]
 Field. 

        8.2    Limitations to Licenses.    Except as provided below, Nestlé may not sublicense its rights under
Section 8 to Third Parties. Nestlé may sub-license its rights under Section 8 to Affiliates on the condition that Nestlé assumes the
responsibility for the due performance by Affiliates under a sub-license of the obligations imposed upon Nestlé in the license under this Agreement. Nestlé
agrees to be responsible for and to guarantee due payment of royalties on sales of Products containing Compounds by Affiliates. 

        8.3    If Nestlé identifies any Nestlé Technology that may be relevant or useful for the research
purposes under this Agreement, Senomyx may request a license of the relevant Nestlé Technology and Nestlé may in its sole discretion grant a license of the
Nestlé Technology. Where Nestlé consents to a license in this Section 8.3, Nestlé will grant a fully paid, non-exclusive,
non-transferable license to use the relevant Nestlé Technology for research purposes. For the avoidance of doubt this license will not include the right to
sub-license unless Nestlé gives its consent, which may be withheld for any reason. 

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9.     Ownership of Intellectual Property.  

        9.1    Transfer of Rights.    Senomyx retains all rights in Senomyx Technology not expressly licensed or assigned in
this Agreement. Except as otherwise expressly provided in this Agreement, nothing in this Agreement is intended to convey or transfer ownership or the grant of any license or sublicense by one party
to the other party of any rights in any Confidential Information, Patent Rights or Know-How Controlled by a party. 

        9.2    Senomyx Inventions.    Senomyx will own all Inventions and other Know-How made solely by its
employees and agents and all Patent Rights claiming such Inventions and Know-How. 

        9.3    Nestlé Inventions.    Nestlé will own all Inventions and other
Know-How made solely by its employees and agents, and all Patent Rights claiming such Inventions and Know-How. 

        9.4    Joint Inventions.    All Inventions conceived jointly by employees or agents of Senomyx and employees or agents
of Nestlé (the "Joint Inventions") and all Joint Patent Rights will be owned jointly by Nestlé and Senomyx. United States intellectual property ownership laws will
determine ownership of patentable inventions, including but not limited to, joint and several ownership for Joint Inventions. Nestlé hereby irrevocably assigns to Senomyx all interest
in and to any Joint Inventions that consist of improvement to Senomyx Technology, Compounds, Product Compounds or Selected Compounds and uses thereof, and all Joint Patent Rights claiming such Joint
Inventions, subject to the licenses granted to Nestlé under Section 8. In the event that Nestlé is legally unable to assign such rights to Senomyx, then
Nestlé agrees either to waive the enforcement of such rights against Senomyx and any sublicensees and assignees, or to grant Senomyx an exclusive, irrevocable, perpetual, worldwide,
fully-paid license, with right to sublicense through multiple tiers of sublicense, to such rights. Senomyx hereby irrevocably assigns to Nestlé all interest in and to any
Joint Inventions that consist of improvement to Nestlé Technology and uses thereof, and all Joint Patent Rights claiming such Joint Inventions, subject to the licenses granted to
Senomyx under Section 8. In the event that Senomyx is legally unable to assign such rights to Nestlé, then Senomyx agrees either to waive the enforcement of such rights against
Nestlé and any sublicensees and assignees, or to grant Nestlé an exclusive, irrevocable, perpetual, worldwide, fully-paid license, with right to sublicense
through multiple tiers of sublicense, to such rights. 

        9.5    Other Inventions.    Any Inventions not included in Sections 9.2, 9.3, or 9.4 will be owned by their
inventors. 

        9.6    Inventorship and Assignment.    United States patent law will determine inventorship of patentable inventions.
Senomyx and Nestlé agree to execute all documentation necessary to perfect all assignments of Inventions, Know-How and Patent Rights contemplated in this Agreement. 

        9.7    Markings.    Nestlé agrees where it is reasonable and practical to do so to mark and to cause
any Affiliate or sublicensee to mark any Product (or their containers or labels) made, sold or otherwise disposed of by it or them with any notice of Patent Rights necessary or desirable under
applicable law to enable the Senomyx Patent Rights or Joint Patent Rights, as applicable, to be enforced to their full extent in any country where Products are made used or sold. In addition, where it
is reasonable and practical to do so, and where the parties have mutually agreed, Nestlé will mark and to cause any Affiliate or sublicensee to mark any Product (or their containers or
labels) made, sold or otherwise disposed of by it or them with the trademark of Senomyx (the "Trademark"). Subject to the terms and conditions of the Agreement, Senomyx hereby grants to
Nestlé a royalty free non-exclusive, nontransferable (except as permitted under Section 17.12) worldwide license to use the Trademark during the Term solely in
connection with the marketing and sale of the Products; provided, however, that: (i) Nestlé must comply with all applicable laws and regulations with respect to the Trademark and
must not do or suffer to be done any act or thing that would impair Senomyx's rights; and (ii) Nestlé agrees not to adopt or use any other trademark, words or symbol that
features or includes the word Senomyx or any marks which are confusingly similar to the Trademark. 

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10.   Treatment of Confidential Information; Publicity.  

        10.1    Confidentiality.    Subject to the terms and conditions of this Agreement, Senomyx and Nestlé
each agree that, during the Term and for a period of [***] thereafter, it will keep confidential, and will cause its Affiliates
to keep confidential, all Confidential Information that is disclosed to it or to any of its Affiliates by the other party. Neither Senomyx nor Nestlé nor any of their respective
Affiliates will use the other party's Confidential Information except as expressly permitted in this Agreement. 

        10.2    Disclosure to Related Parties.    Senomyx and Nestlé each agree that any disclosure of the
other party's Confidential Information to any officer, employee, contractor, consultant, sublicensee or agent of the other party or to any of its Affiliates will be made only if and to the extent
necessary to carry out its responsibilities under this Agreement and to exercise the rights granted to it hereunder, will be limited to the extent consistent with such responsibilities and rights, and
will be provided only to such persons or entities who are under an obligation of confidentiality no less stringent than as set forth in this Agreement. Each party will use reasonable efforts to take
such action, and to cause its Affiliates to take such action, to preserve the confidentiality of each other's Confidential Information, which will be the same efforts as it would customarily take to
preserve the confidentiality of its own Confidential Information. 

        10.3    Return of Confidential Material Upon Termination.    Upon termination of this Agreement, each party, upon the
other party's request, will return or destroy all Confidential Information received from the other party pursuant to this Agreement, including all copies and extracts of documents, within thirty days
of the request of the other party; provided, however, one copy of the Confidential Information may be retained in a secure location with limited access for legal purposes only. 

        10.4    Exceptions to Confidential Information.    Confidential Information will not include any information, which
the receiving party can prove by competent written evidence: 

        (A)  is
now, or hereafter becomes, through no act or failure to act on the part of the receiving party, generally known or available; 

        (B)  is
known by the receiving party at the time of receiving such information, as evidenced by its records; 

        (C)  is
hereafter furnished to the receiving party without restriction as to disclosure or use by a Third Party lawfully entitled to furnish such information; 

10

  

        (D)  is
independently developed by the employees, agents or contractors of the receiving party without the aid, application or use of the disclosing party's Confidential
Information; or 

        (E)  is
the subject of a written permission to disclose provided by the disclosing party. 

        A
party may also disclose Confidential Information of the other party where required to do so by law or legal process; provided, however, that, in such event, the party required to
disclose such information must give advance written notice of such disclosure to the other party and must cooperate with the other party's efforts to seek, at the request and expense of the other
party, all confidential treatment and protection for such disclosure as is permitted by applicable law. 

        10.5    Confidential Financial Information.    The parties agree that the material financial terms of this Agreement
will be considered Confidential Information of both parties. Notwithstanding the foregoing, either party may disclose such terms in legal proceedings or as are required to be disclosed in its
financial statements, by law, or under an obligation of confidentiality to bona fide potential sublicensees. Subject to prior written approval, either party will have the further right to disclose the
material financial terms of this Agreement under an obligation of confidentiality to any potential acquirer, merger partner, bank, venture capital firm, or other financial institution to the extent
necessary to obtain financing. Notwithstanding the foregoing, Senomyx will issue a press release to announce the execution of this Agreement and the material terms; provided, however, that such
material terms shall be subject to the prior written consent of Nestlé. Thereafter, Nestlé and Senomyx may each disclose to Third Parties the information contained in
such press release without the need for further approval by the other party. 

        10.6    Confidential Research Information.    The parties agree that all results and data generated from the research
by a party under the Collaborative Programs will be owned exclusively by that party and considered Confidential Information of that party subject to the confidentiality requirements of
Section 10. Nestlé will not provide to a Third Party any Materials provided by Senomyx to Nestlé nor will Senomyx provide to a Third Party any Materials provided
by Nestlé. 

        10.7    Permitted Use and Disclosures.    Each party may use or disclose Confidential Information disclosed to it by
the other party to the extent such information is included in the Nestlé Technology, Senomyx Technology or Joint Patent Rights, and to the extent such use or disclosure is reasonably
necessary and permitted in the exercise of the rights granted hereunder in filing or prosecuting patent applications, prosecuting or defending litigation, complying with applicable governmental
regulations, or court orders or otherwise submitting information to tax or other governmental authorities, conducting clinical trials,
submitting information for food additive approval applications, or making a permitted sublicense or otherwise exercising rights expressly granted to the other party pursuant to the terms of this
Agreement; provided, however, that if a party is required to make any such disclosure of the other party's Confidential Information, other than pursuant to a confidentiality agreement, it will give
reasonable advance notice of such disclosure to the other party, and will request the prior approval of the other party (such approval not to be unreasonably withheld) Where any such disclosure of
Confidential Information is approved, that party disclosing confidential information will disclose only the minimum necessary to comply with such requirements. 

        10.8    Use of Data for Promotional Purposes.    Either party may (i) make public statements regarding
Compounds, Selected Compounds, Product Compounds or Products by announcing the achievement of milestones, following consultation with the other party and with the prior written consent of the other
party, and (ii) without the prior consent of the other party, make public statements regarding the overall success rate(s) achieved by and/or for its customers with the use of the Senomyx
Technology; provided, however, that it may not disclose any chemical structures, screens or the other party's identity. 

11

 

        10.9    Publication of Results.    Subject to this Section 10, results and data obtained by either party in the
course of the collaboration may be submitted for publication by Senomyx in accordance with Senomyx's customary practices. Senomyx will send a copy of the proposed publication to Nestlé
and will allow Nestlé [***] from the date of receipt for review, and comment. Nestlé may, within
such [***] period object to the proposed publication on the grounds that the publication contains Confidential Information in
which case any such data determined in fact to be Confidential Information shall be removed from the publication before it is published. 

        10.10    Publicity.    Except as required by law and as provided in this Section 10, neither party may make any
public announcement or otherwise disclose the terms of this Agreement without the prior written consent of the other party, which consent will not be unreasonably withheld. 

11.   Intellectual Property Enforcement and Defense of Claims.  

        11.1    Intellectual Property Enforcement.    Subject to the Third Party obligations of Senomyx, each party will have
the right, but not the obligation, to bring proceedings against any Third Party for the inappropriate use, including patent infringement, of Patent Rights solely Controlled by it, at its own risk and
expense. If either party brings such an action, such party will be entitled to control such action, hire and retain counsel, make decisions, settle on any terms, and retain any and all awards or
damages
obtained in any such proceeding. At the request and expense of either party, the other party will give the requesting party all reasonable assistance required to file and conduct any such proceeding. 

        11.2    Defense of Infringement Claims for Senomyx Technology.    Nestlé will cooperate with Senomyx,
at Senomyx's expense, in the defense of any suit, action or proceeding against Nestlé or Senomyx or Senomyx's Affiliates alleging the infringement of the intellectual property rights of
a Third Party by reason of Nestlé's or Senomyx's use of any Senomyx Technology licensed to Nestlé under this Agreement. The parties must notify each other promptly in
writing of the commencement of any such suit, action, proceeding or claim of infringement. Nestlé will give to Senomyx full and sole authority, information and assistance necessary to
defend, hire counsel, make decisions or settle on any terms any such suit, action or proceeding and Nestlé will execute all documents, provide pertinent records, and take all other
actions, including requiring persons within its control to give testimony, which may be reasonably required in connection with the defense or settlement of such litigation. 

        11.3    Defense of Infringement Claims for Nestlé Technology.    Senomyx will cooperate with
Nestlé, at Nestlé's expense, in the defense of any suit, action or proceeding against Senomyx or Nestlé alleging the infringement of the intellectual
property rights of a Third Party by reason of Nestlé's or Senomyx's use of any Nestlé Technology licensed to Senomyx under this Agreement. The parties must notify each
other promptly in writing of the commencement of any such suit, action, proceeding or claim of infringement. At the expense of Nestlé, Senomyx will give to Nestlé full
and sole authority, information and assistance necessary to defend, hire counsel, make decisions or settle on any terms any such suit, action or proceeding and Nestlé will execute all
documents, provide pertinent records, and take all other actions, including requiring persons within its control to give testimony, which may be reasonably required in connection with the defense or
settlement of such litigation. 

12.   Patent Prosecution and Maintenance.  

        12.1    Prosecution of Patents.    Senomyx will be responsible for the payment of
out-of-pocket costs and expenses Senomyx will incur in, filing, prosecuting (including an opposition or interference) and maintaining Senomyx Patents; provided, however, that
Patents covering Product Compounds licensed by Senomyx to Nestlé for use within the [***] Field and the  [***] Field, will be the responsibility of
Nestlé and Senomyx,  [***]. Nestlé will cooperate in the filing, prosecution and maintenance of Patents. 

12

 

        12.2    Inventions under Collaboration.    The control and expense of the filing, prosecution and maintenance of any
Patent Rights or other intellectual property rights claiming Inventions that are not covered under section 12.1 will be as follows: 

        (A)    Sole Inventions.    The control and expense of the filing, prosecution (including an
opposition or interference) and maintenance of Patent Rights or other intellectual property rights claiming Inventions that are made solely by a party will be the sole responsibility of the party that
made such Invention, and the party not filing the patent application will cooperate in such filing, prosecution and maintenance. 

        (B)    Joint Inventions.    Senomyx will have the first right to file, prosecute (including an
opposition or interference) and maintain Joint Patent Rights or other intellectual property rights claiming Inventions that are made jointly by the parties. Nestlé will cooperate in,
the filing, prosecution and maintenance of Joint Patent Rights and will share equally in the expenses incurred with respect to the maintenance of Joint Patent Rights. 

13.    Manufacturing.    The parties will collaborate to identify a manufacturer
and/or enter into supply and manufacturing agreements with a mutually agreed upon Third Party(ies) regarding Product Compounds; provided however: (i) Senomyx will have the option to manufacture
any such Product Compounds, subject to provisions of cost, quality and quantity and (ii) Nestlé may manufacture (or procure that an Affiliate or any Third Party may manufacture)
Product Compounds where Nestlé can demonstrate that it, or any such Affiliate or Third Party can manufacture Product Compounds  [***]. 

14.   Term and Termination.  

        14.1    Term.    The term of this Agreement will begin on the Effective Date and will continue through the end of the
Royalty Term, unless terminated earlier in accordance with the provisions of Section 14.2, 14.3 or 14.4 (the "Term"). 

        14.2    Termination by Nestlé.    Nestlé will have the right to terminate this Agreement
without cause at any time upon sixty days written notice, provided, however, if such termination occurs prior to the end of the Collaborative Period Nestlé must provide additional
research funding in accordance with Section 7.1 for a period of [***] from the date of termination. 

        14.3    Termination By Mutual Agreement.    The parties may terminate this Agreement at any time, in whole or in part,
by mutual written agreement executed by both parties. 

        14.4    Termination for Breach.    Either party has the right to terminate this Agreement at any time for a material
breach of this Agreement by the other party, provided that the breaching party has not cured such breach within sixty days after written notice of the breach by the non-breaching party.
The non-breaching party, upon termination of this Agreement, may seek actual or general damages and remedies available to it at law or in equity. NEITHER PARTY WILL SEEK PUNITIVE DAMAGES. 

15.   Effect of Termination.  

        15.1    Upon termination of this Agreement pursuant to Section 14, Nestlé will have no right to practice
within or use of the Senomyx Technology, and all rights, title and interest in and to the Senomyx Technology will revert to and become the sole property of Senomyx, unless otherwise agreed upon in
writing by the parties on or before the effective date of such termination. Nothing in this Section 15.1 prevents or limits Nestlé and its Affiliates from selling Products which
at the date of termination have already been or are in the process of being manufactured. 

        15.2    Expiration or termination of this Agreement will not relieve the parties of any obligation accruing prior to such
expiration or termination. 

13

 

        15.3    Survival.    The obligations and rights of the parties under Sections 7.9, 9.1 through 9.7, 10, 15, 16.2(B),
16.3, 16.4(B), 16.5, 17, and Appendix A, will survive termination or expiration of this Agreement. 

16.   Warranties and Indemnification.  

        16.1    Mutual Representations and Warranties.    The parties make the following representations and warranties to
each other: 

        (A)    Corporate Power.    Each party hereby represents and warrants that as of the Effective
Date such party (i) is duly organized and validly existing under the laws of the jurisdiction of its incorporation and has full corporate power and authority to enter into this Agreement and to
carry out the provisions of this Agreement; (ii) has the requisite power and authority and the legal right to own and operate its property and assets, to lease the property and assets it
operates under lease, and to carry on its business as it is now being conducted; and (iii) is in compliance with all requirements of applicable law, except to the extent that any noncompliance
would not have a material adverse effect on its ability to perform its obligations under this Agreement. 

        (B)    Due Authorization.    Each party hereby represents and warrants that as of the
Effective Date such party (i) has the requisite power and authority and the legal right to enter into this Agreement and to perform its obligations hereunder; and (ii) has taken all
necessary action on its part to authorize the execution and delivery of this Agreement and to authorize the performance of its obligations hereunder and the grant of rights extended by it hereunder. 

        (C)    Binding Agreement.    Each party hereby represents and warrants to the other that as of
the Effective Date (i) this Agreement has been duly executed and delivered on its behalf and is a legal and valid obligation binding upon it and is enforceable in accordance with its terms;
(ii) the execution, delivery and performance of this Agreement by such party does not conflict with any agreement, instrument or understanding, oral or written, to which it is a party or by
which it may be bound, nor violate any law or regulation of any court, governmental body or administrative or other agency having authority over it; and (iii) all necessary consents, approvals
and authorizations of all governmental authorities and other persons required to be obtained by it in connection with the Agreement have been obtained. 

        16.2    Warranties Regarding Senomyx Technology.    Senomyx warrants to Nestlé as of the Effective Date
the following: 

        (A)    Senomyx as of the Effective Date:    (i) Senomyx has the lawful right to license
the Senomyx Technology to Nestlé in accordance with the terms of this Agreement; (ii) Senomyx is not aware of any third party patent or application for patent that would impair
Nestlé's ability to commercialize the Senomyx Patent Rights or the Senomyx Technology (iii) to the best of knowledge of Senomyx no Third Party suit exists relating to the Senomyx
Patent Rights or the Senomyx Technology, nor is Senomyx aware of any threats or warnings of such Third Party suit; (iv) no license of the Senomyx Technology to any Third Party or any use by
Senomyx of the Senomyx Technology will, as of the Effective Date and for the duration of the Royalty Term prevent, limit or in any way interfere with the use and exploitation by Nestlé
and its Affiliates of the rights licensed to them under Section 8 of this Agreement; and (v) for the purpose of allowing Nestlé to exploit fully the licenses given to it
in this Agreement and without limitation to the representation in Section (iv) above, Senomyx has not as of the Effective Date and will not for the duration of the Royalty Term, enter into any
research program or grant any rights in Senomyx Technology to any Third Party for the following products: seasonings or seasoning blends for use as a seasoning and sold separately as a seasoning or
seasoning mix. 

14

 

        (B)    EXCEPT
AS EXPRESSLY SET FORTH IN THIS AGREEMENT, SENOMYX (INCLUDING ITS OFFICERS, EMPLOYEES AND AGENTS) EXPRESSLY DISCLAIMS ANY REPRESENTATIONS AND WARRANTIES, WHETHER
EXPRESS OR IMPLIED, RELATING TO SENOMYX TECHNOLOGY. SENOMYX FURTHER DISCLAIMS ANY EXPRESS OR IMPLIED WARRANTY (i) OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OF SENOMYX TECHNOLOGY OR
SENOMYX PATENT RIGHTS; (ii) THAT THE PRACTICE OF SENOMYX TECHNOLOGY WILL NOT INFRINGE A PATENT, COPYRIGHT, TRADEMARK OR OTHER RIGHT OF A THIRD PARTY; AND (iii) REGARDING THE
PATENTABILITY OF ANY SENOMYX TECHNOLOGY, INCLUDING SENOMYX TECHNOLOGY CLAIMED IN PATENT APPLICATIONS AS PART OF SENOMYX PATENT RIGHTS. 

        16.3    Senomyx Indemnification.    Senomyx hereby agrees to defend and indemnify Nestlé, and its
respective officers, directors, employees, and agents (collectively, the "Nestlé Indemnitees") from and against all damages or other amounts payable to a Third Party, including
reasonable attorneys' fees and costs of litigation, resulting from a claim, demand, action, suit or other proceeding brought or threatened by a Third Party against a Nestlé Indemnitee
based on Senomyx's negligence, willful misconduct relating to Senomyx's performance, failure to perform or breach under this Agreement including a breach of warranty. SENOMYX
WILL NOT BE LIABLE FOR ANY INCIDENTAL OR CONSEQUENTIAL DAMAGES SUFFERED BY NESTLÉ RESULTING FROM THIS AGREEMENT UNLESS RESULTING SOLELY FROM THE ACTION OR INACTION OF
SENOMYX.

        16.4    Nestlé Indemnification of Senomyx.    Nestlé hereby agrees to indemnify, defend
and hold Senomyx, and its respective officers, directors, employees and agents (collectively, the "Senomyx Indemnitees") harmless from and against all damages, losses, liabilities, expenses and costs
or other amounts payable to a Third Party, including reasonable attorneys' fees and costs of litigation, resulting from a claim, demand, action, suit or other proceeding brought or threatened by a
Third Party against a Senomyx Indemnitee based on (i) any development, manufacture, use, handling, storage, sale, or other disposition of a Selected Compound, Product Compound by or through
Nestlé or its Affiliates or its permitted sublicensees (ii) a product liability claim on any Product using the Product Compound (iii) the practice by Nestlé
of any license granted hereunder, or (iv) infringement by Nestlé of Patent Rights of any Third Party; except to the extent such damages or other amounts payable are attributable
to: (a) the development, manufacture or formulation, of a Selected Compound conducted solely by a Senomyx Indemnitee; (b) the development, manufacture or formulation of Product Compound
conducted solely by a Senomyx Indemnitee: or (c) the development, manufacture or formulation of Product conducted solely by a Senomyx; (d) a violation of any contractual or fiduciary
duty owed by any Senomyx Indemnitee to a Third Party, (e) any breach of this Agreement by a Senomyx Indemnitee or a misrepresentation by Senomyx in this Agreement, or (f) trade secret
misappropriation or patent infringement by a Senomyx Indemnitee covered by a Third Party's Patent Rights. IN NO EVENT WILL NESTLÉ BE LIABLE FOR ANY INCIDENTAL OR CONSEQUENTIAL DAMAGES
SUFFERED BY SENOMYX RESULTING FROM THE EXERCISE OF ANY RIGHTS GRANTED IN ACCORDANCE WITH THIS AGREEMENT UNLESS RESULTING SOLELY FROM THE ACTION OR INACTION OF NESTLE. 

15

   17.   Miscellaneous.  

        17.1    Force Majeure.    Neither party will lose any rights hereunder or be liable to the other party for damages or
losses on account of failure of performance by the defaulting party (other than a payment default) if the failure is occasioned by war, fire, explosion, flood, (e.g. El Niño),
earthquake, strike, lockout, embargo, act of God, or any other similar cause beyond the control of the defaulting party; provided, however, that the party claiming force majeure has exerted all
reasonable efforts to avoid or remedy such force majeure and thereafter takes all reasonable steps to mitigate any such delay in performance hereunder and any damages that may be incurred by the other
party thereby. 

        17.2    Governing Law and Jurisdiction.    This Agreement will be governed by the laws of California, U.S.A., as such
laws are applied to contracts entered into and to be performed entirely within such state. 

        17.3    Binding Effect.    This Agreement will be binding upon and inure to the benefit of the successors and
permitted assigns of the parties. Any assignment not in accordance with this Agreement will be void. 

        17.4    Dispute Resolution.    The parties recognize that disputes as to certain matters may from time to time arise
during the Term, which relate to either party's rights and/or obligations hereunder ("Disputes"). It is the objective of the parties to establish procedures to facilitate the resolution of Disputes
arising under this Agreement in an expedient manner by mutual cooperation and negotiation. The parties agree that prior to any arbitration concerning this Agreement, Senomyx's  [***] and [***] from Nestlé's will meet
in person or by video-conferencing in a good faith effort to resolve any disputes concerning this Agreement. Within [***] of a
formal request by either party to the other party, either party may, by written notice to the other party, have such dispute referred to their respective officers designated or their successors, for
attempted resolution by good faith negotiations, such good faith negotiations to begin within [***] after such notice is
received. If the Dispute is not settled by negotiations as described above, within [***] of the receipt by one party of the
notice from the other party requesting such negotiations, then the parties shall attempt to settle the Dispute by mediation in accordance with the Model Mediation Procedure of the Centre for Dispute
Resolution, Princes House, 95 Gresham Street, London EC2V 7NA 7 ("CEDR"). To initiate a Mediation, a party must give notice in writing ("ADR Notice") to the other party requesting Mediation in
accordance with CEDR Rules. The Mediation shall be held at a venue or venues in London, England, agreed by the parties or, in default of agreement, selected by CEDR. If there is any point on the
conduct of the Mediation (including the nomination of the Mediator) upon which the parties cannot agree within [***] from the
date of the ADR Notice, CEDR will, at the written request of a party, decide that point for the parties, having consulted with them. The Mediation will start no later than  [***] after the date of the
ADR Notice. If the parties have not settled the Dispute within  [***] of the date of the ADR Notice then the Dispute shall be exclusively and finally settled between the parties or the
designated officers of the parties pursuant to this Section 17.4 will be resolved by final and binding arbitration under the Rules of Conciliation and Arbitration of the International Chamber
of Commerce (hereinafter referred to as "the ICC") conducted in London, United Kingdom (unless the parties mutually agree to another location) The arbitration will be conducted by three arbitrators
who are knowledgeable in the subject matter at issue in the dispute. Senomyx will select one arbitrator, and one arbitrator will be selected by Nestlé. The third arbitrator will be
selected by mutual agreement of the two arbitrators selected by the parties. In conducting the arbitration, the arbitrators will (i) determine what discovery will be permitted, consistent with
the goal of limiting the cost and time which the parties must expend for discovery (and provided that the arbitrators will permit such discovery they deem necessary to permit an equitable resolution
of the dispute), (ii) ensure that the total time of the arbitration from filing to a final decision or executed settlement agreement is less than  [***], and (iii) be able to decree any and all
relief of an equitable nature, including, but not limited to, such relief
as a temporary restraining order, a preliminary injunction, a permanent injunction, specific performance or repletion of property. 

16

 

The
arbitrators will also be able to award actual or general damages, but will not award any other form of damage (e.g., consequential, punitive or exemplary damages). The parties will share equally
the arbitrator's fees and expenses pending the resolution of the arbitration. The decision of the arbitrators will be final and binding on the parties and may be sued on or enforced by the party in
whose favor it runs in any court of competent jurisdiction at the option of such party. Notwithstanding anything to the contrary in this Section 17.4, either party may seek immediate injunctive
or other interim relief from any court of competent jurisdiction with respect to any breach of Sections 9 or 10, or otherwise to enforce and protect the Patent Rights, copyrights, trademarks, or other
intellectual property rights Controlled by such party. In addition, arbitration will not be used to resolve disputes concerning Patent Rights. Disputes concerning Patent Rights, including, but not
limited to, disputes concerning patent ownership,
claim language, claim scope and issues of validity will be settled in a court of law. Any arbitration ruling that relies on an interpretation of Patent Rights will have no binding effect in a court of
law on any Patent Rights related to this Agreement, unless such Patent Rights have been adjudicated in a court of law. In no event will a demand for arbitration be made after the date when the
institution of a legal or equitable proceeding based on such claim, dispute or other matter in question would be barred by the applicable statute of limitations. Notwithstanding the foregoing or the
outcome of the arbitration proceeding, each party shall bear its own expenses including, without limitation, attorneys fees and court costs, even if the arbitrators have the discretion to award such
fees and costs to the prevailing party. We are continuing to review this section, thus, we reserve the right to change at a later date. 

        17.5    Severability.    If any term, covenant or condition of this Agreement or the application of it to any party or
circumstance is, to any extent, held to be invalid or unenforceable, then the remainder of this Agreement, or the application of such term, covenant or condition to parties or circumstances other than
those as to which it is held invalid or unenforceable, will not be affected thereby and each term, covenant or condition of this Agreement will be valid and enforced to the fullest extent permitted by
law; the parties covenant and agree to renegotiate any such term, covenant or condition or the application of them in good faith in order to provide a reasonably acceptable alternative to the term,
covenant or condition of this Agreement or the application of them that is invalid or unenforceable, it being the intent of the parties that the basic purposes of this Agreement are to be effectuated. 

        17.6    Independent Contractors.    It is expressly agreed that Nestlé and Senomyx will be independent
contractors and that the relationship between the parties will not constitute a partnership or agency of any kind. Neither Nestlé nor Senomyx will have the authority to make any
statements, representations or commitments of any kind, or to take any action, which will be binding on the other party, without the prior written authorization of the other party to do so. 

        17.7    Entire Agreement; Amendment.    This Agreement sets forth all of the covenants, promises, agreements,
warranties, representations, conditions and understandings between the parties, and supersedes and terminates all prior agreements and understandings between the parties, with respect to the subject
matter of this Agreement. There are no covenants, promises, agreements, warranties, representations, conditions or understandings, either oral or written, between the parties other than as set forth
in this Agreement. No subsequent alteration, amendment, change or addition to this Agreement will be binding upon the parties unless reduced to writing and signed by the respective authorized officers
of the parties. This Agreement will not be strictly construed against either party. Any conflict between the terms set forth in the text of this Agreement and the terms of any Appendix will be
resolved in favor of the text of this Agreement. 

        17.8    Waiver.    Except as specifically provided for in this Agreement, the waiver from time to time by either of
the parties of any rights or the failure to exercise any remedy will not operate or be construed as a continuing waiver of the same right or remedy or any of the other of such party's rights or
remedies provided in this Agreement. 

17

 

        17.9    Construction.    The term "Article" or "Section" can refer to any single paragraph level found in this
Agreement or any collection of multiple paragraphs under them. 

        17.10    No Third Party Beneficiaries.    No Third Party, including any employee of any party to this Agreement
(except as specifically provided in this Agreement), will have or acquire any rights by reason of this Agreement. Nothing contained in this Agreement will be deemed to constitute the parties partners
with each other or any Third Party. 

        17.11    Notices.    Any notices or communications provided for in this Agreement to be made by either party to the
other party must be in writing, in English, and will be made by prepaid air mail or overnight carrier with return receipt addressed to the other party at its address set forth below. Any such notice
or communication may also be given by hand, or facsimile to the appropriate designation. Notices will be sent: 

	 	If to Senomyx, to:	 	Senomyx, Inc.

11099 North Torrey Pines Road

La Jolla, CA 92037

Facsimile number: (858) 404-0750

Attention: Corporate Counsel

with a copy to the President
	

 	

If to Nestlé, to:	
 	

Nestlé S.A..

Avenue Nestlé

CH-1800

Vevey, Switzerland

Facsimile number: +41 21 921 1885

Attention: Vice President, Head of Research and Development with a copy to Executive Vice President Corporate Technical, Production and Research and Development

        By
like notice, either party may specify or change an address to which notices and communications must be thereafter sent. Notices sent by mail, facsimile or overnight carrier will be
effective upon receipt and notices given by hand will be effective when delivered. 

        17.12    Assignment.    Notwithstanding any provision of this Agreement to the contrary, neither party may assign any
of its rights or obligations under this Agreement in any country to any Third Party without the prior written consent of the non-assigning party, which consent will not be unreasonably
withheld; provided, however, that either party may assign its rights and obligations under this Agreement without the consent of the other party (i) to a successor to substantially all of the
business of such party to which this Agreement relates, whether by merger, sale of stock, sale of assets or other transaction or (ii) to any Affiliate. In the event of such transaction,
however, intellectual property rights (including Know-How) of a party to such transaction other than one of the parties to this Agreement will not be included in the technology licensed
under this Agreement. Notwithstanding the foregoing, any such assignment to an Affiliate will not relieve the assigning party of its responsibilities for performance of its obligations under this
agreement. This Agreement will survive any merger or consolidation of either party with or into another party and no consent for any such merger, consolidation or similar reorganization will be
required hereunder. 

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

18

 

        IN
WITNESS WHEREOF, the parties, through their authorized officers, have executed this Agreement as of the Effective Date. 

	NESTEC LTD.
	

By:	
 	

/s/ [Text Illegible]
	
 	

 
	

Title:	
 	

Vice President
	
 	

 
	

Date:	
 	

18th April, 2002
	
 	

 
	
SENOMYX, INC.
	

By:	
 	

/s/ PAUL A. GRAYSON
	
 	

 
	

Title:	
 	

Chairman and CEO
	
 	

 
	

Date:	
 	

18th April, 2002
	
 	

 

19

   COLLABORATIVE RESEARCH AGREEMENT  

 APPENDIX A—DEFINITIONS  

        "Affiliate" means any corporation, company, partnership, joint venture, association or other entity, which
directly or indirectly controls, is controlled by or is under common control with a party. As used in this definition, the term "control" means direct or indirect beneficial ownership of more than
fifty percent (or such lesser percentage which is the maximum allowed to be owned by a foreign corporation in a particular jurisdiction) of the outstanding securities having voting rights for the
election of directors in a corporation or of the comparable equity interest in any other type of entity. 

        "Agreement" means this agreement, together with all appendices attached to it, as it may be amended or supplemented from time to time
hereafter by a written agreement executed by authorized representatives of both parties. 

        "[***] Category" means [***] Wet Soup
Category, [***] Dehydrated and Culinary Category. 

        "Calendar Year" means a twelve-month period beginning on January 1st and ending on
December 31st. 

        "Collaborative Period" means the period beginning on the Effective Date and ending 36 months thereafter, unless earlier terminated
in accordance with Section 14. 

        "Collaborative Programs" means the [***] Program and the  [***] Program. Each Collaborative Program may be referred to
nonspecifically as "Collaborative Program". 

        "Collaborative Protocols" has the meaning set forth in Section 3.1. 

        "Compound(s)" means molecules synthesized or acquired in the course of the Collaborative Program wherein such molecules provide the
desired enhancement and can be produced at or less than the Maximum Compound Cost. 

        "Confidential Information" means all information, Inventions and Know-How disclosed by one party to the other party pursuant
to this Agreement, including, without limitation, information and material (whether or not patentable) regarding technology, products, research, development, manufacturing, marketing, finances,
personnel or other business information or objectives. Notwithstanding the foregoing to the contrary, Inventions, Know-How or other information which is orally, electronically or visually
disclosed by a party, will constitute Confidential Information of a party if the disclosing party, within thirty days after such disclosure, delivers to the other party a written document or documents
describing the Inventions, Know-How or other information and referencing the place and date of such oral, visual, electronic or written disclosure and the names of the persons to whom such
disclosure was made. 

        "Control" or "Controlled" means, with respect to intellectual property, possession by a
party, as of the Effective Date or during the Collaborative Period, of the ability to grant a license or sublicense in accordance with the terms of this Agreement, without violating the terms of any
agreement by such party with any Third Party that is in effect on the Effective Date. 

        "Dehydrated and Culinary Food Category" means: 

          (i)  [***]; 

         (ii)  [***]; and 

        (iii)  [***]; 

provided,
however, that the Dehydrated and Culinary Food Category does not include any soup denominated products described in the Wet Soup Category. 

20

 

        "Effective Date" means the date that this Agreement is signed by the last party to sign below. 

        "[***] Regulatory Approval" means regulatory approval by a relevant regulatory body in at least one of the
following countries of the [***]. 

        "Frozen Food Category" means [***]. 

        "[***]" means a "[***]," as determined by
an expert panel qualified in accordance with the [***] guidelines or as determined by a regulatory authority. 

        "Invention" means any invention, including any new and useful process, method, or composition of matter, or improvement, whether or not
patentable, made in the course of the Collaborative Programs. 

        "Joint Invention" has the meaning set forth in Section 9.4. 

        "Joint Patent Rights" means all Patent Rights containing one or more claims to a Joint Invention. 

        "Know-How" means information and data, whether or not patentable, which is not generally known to the public, including,
without limitation, designs, concepts, formulae, software, techniques, practices, processes, methods, knowledge, skill, experience, expertise, technical information, Materials and data, including
pharmacological, toxicological and clinical test data, analytical and quality control data, patent and legal data or marketing, sales and manufacturing data. 

        "Materials" mean antagonists, agonists, inhibitors, compounds, and chemicals, including without limitation, Compounds, Selected Compounds,
and Product Compounds. 

        "Maximum Compound Cost" means [***]. 

        "Nestlé Know-How" means, to the extent useful for purposes of the activities to be conducted under this
Agreement, Know-How, including compounds Controlled by Nestlé. 

        "Nestlé Patent Rights" means, to the extent useful for purposes of the activities to be conducted under this Agreement,
Patent Rights Controlled by Nestlé, including, without limitation, any Patent Rights
containing one or more claims to an Invention made solely by employees or agents of Nestlé, but excluding any Joint Patent Rights. 

        "Nestlé Technology" means Nestlé Patent Rights and Nestlé Know-How. 

        "[***]" means, with respect to a Product, the  [***] of any sales or any other transfer by Nestlé and its Affiliates and/or permitted sublicensees, less the
following items: 

          (i)  [***]; 

         (ii)  [***]; and 

        (iii)  [***] IAS (International Accounting Standards) principles. 

[***] will be determined from the books and records of Nestlé, its Affiliates and/or its permitted sublicensees,
maintained in accordance with IAS. 

        "New Category" means products other than those products currently known and available to consumers in the the  [***] Category, Frozen Food Category, the Wet Soup Category,
 the Dehydrated and Culinary Food Category, and the  [***] Category. (This may also include unknown products such as
[***]). 

        "Patents" means all patent and patent applications which are controlled by Senomyx as of the effective date or developed by Senomyx in the
course of the Collaborative Period under either of the Research Plans which specifically claim a Product Compound(s), a process for manufacturing a Product
Compound(s), or the use of a Product Compound(s) in a Product. 

21

 

        "Patent Rights" means all rights associated with all U.S. or foreign (including regional authorities such as the European Patent Office)
regular or provisional patents or patent applications, including any continuation, continuation-in-part, or division of it or any substitute
application for it or equivalent of it, and any patent issuing upon it, including any reissue, reexamination or extension of it and any confirmation patent or registration patent or patent of
additions based on any such patent. 

        "Previous Year" means the Calendar Year immediately preceding the current Calendar Year. 

        "Product(s)" means [***] Product(s) and  [***] Product(s). [***] Products
and  [***] Products may be referred to nonspecifically as "Products". 

        "Product Compound(s)" means [***] Compounds(s) and  [***] Compounds(s). [***] Compounds and  [***] Compounds may be referred to nonspecifically as "Product Compounds". 

        "Relevant Category" means the Frozen Food Category, or the Dehydrated and Culinary Food Category, or the Wet Soup Category for  [***] Products and the Frozen Food
Category, or the Dehydrated and Culinary Food Category for  [***] Products. 

        "Research Plans" means the [***] Research Plan and the  [***] Plan. The [***] Research Plan and the  [***] Research Plan may be referred to nonspecifically as "Research Plan". 

        "Royalty Term" means, in the case of any Product and as to any country, the period of time commencing on the first commercial sale for use
or consumption of such Product in such country and ending upon the earlier of: (i) the date that there no longer exists a Valid Claim in a Patent Right Controlled by Senomyx or its Affiliates
covering the manufacture, use or sale of such Product in such country, or (ii) the date that is seventeen years after the date of such first commercial sale for use or consumption of such
Product in such country PROVIDED THAT the seventeen year period is within the period in which there exists a Valid Claim in a Patent Right controlled by Senomyx or its Affiliates in another country. 

        "[***] Compound(s)" means a Selected Compound discovered and developed under the  [***] Program. 

        "[***] Field" means products in the Dehydrated and Culinary Food Category and the Frozen Food Category and
specifically excludes the Wet Soup Category, the [***] Category, the  [***] Category and the New Category, except as provided for in Section 3.2. The
 [***] Field does not include [***]. 

        "[***] Product(s)" means a Nestlé product(s) for  [***] consumption that incorporates a [***] Compound. 

        "[***] Program" means a research and development program during the Collaborative Period to discover molecules
that enhance the taste of [***] to be conducted pursuant to the  [***] Research Plan. 

        "Selected Compound(s)" means the Compound(s) selected by the Steering Committee for development. 

        "Senomyx Know-How" means all Know-How related to Compounds discovered under the Collaborative Programs, which is
not covered by the Senomyx Patent Rights, but is necessary or appropriate for purposes of the activities to be conducted under this Agreement, and which is Controlled by Senomyx as of the Effective
Date or developed by Senomyx in the course of the Collaborative Programs. 

        "Senomyx Patent Rights" mean all composition of matter and use Patent Rights covering Compounds discovered under the Collaborative
Programs that are necessary or appropriate for purposes of the activities to be conducted under this Agreement, and which are Controlled by Senomyx 

22

 

as
of the Effective Date or developed by Senomyx in the course of the Collaborative Programs, but excluding any Joint Patent Rights. 

        "Senomyx Technology" means the Senomyx Patent Rights, and Senomyx Know-How. 

        "[***] Category" means [***]. 

        "Steering Committees" has the meaning set forth in Section 2. The Steering Committees will be referred to individually as a
"Steering Committee". 

        "Term" has the meaning set forth in Section 14.1. 

        "Third Party(ies)" means any party other than a party to this Agreement or an Affiliate of Senomyx or Nestlé. 

        "[***] Compound(s)" means a Selected Compound discovered and developed under the  [***] Program. 

        "[***] Field" means the Dehydrated and Culinary Food Category, the Frozen Food Category, and the Wet Soup Category
and specifically excludes the [***] Category, the [***]
Category, and the New Category, except as provided for under Section 3.2. The [***] Field does not include  [***]. 

        "[***] Product(s)" means a Nestlé product(s) for human consumption that incorporates an  [***] Compound. 

        "[***] Program" means a research and development program during the Collaborative Period to discover molecules
that enhance the taste of [***]. The [***] Program is to
be conducted pursuant to the [***] Research Plan. 

        "[***] Regulatory Approval" means any of the following regulatory approvals in the  [***]: (i) [***] determination by
the  [***] determine that a product or ingredient is an acceptable food additive or  [***] Approval means any one of them. 

        "Wet Soup Category" means [***]. 

        "Valid Claim" means an issued claim under an issued patent within the Patent Rights, which has not (i) expired or been canceled,
(ii) been declared invalid by an unreversed and unappealable decision of a
court or other appropriate body of competent jurisdiction, (iii) been admitted to be invalid or unenforceable through reissue, disclaimer or otherwise, and/or (iv) been abandoned. 

23

 
COLLABORATIVE RESEARCH AGREEMENT  

 APPENDIX B  

 RESEARCH PLANS  

 [***] Program Research and Development Plan  

	Nestlé

Responsibility
 
	 	Steering Committee

Responsibility
	 	Senomyx Responsibility
	 	Cumulative Time

(months)

	Assigns [***] representatives to the Steering Committee.	 	 	 	Assigns [***] representatives to the Steering Committee.	 	Within [***] of the Effective Date
	 	 	First Steering Committee meeting is held.

  

Steering Committee to review, amend and approve [***].	 	Senomyx presents [***].	 	Within [***] of the Effective Date
	Describes general [***].	 	 	 	Senomyx will apply information on [***].	 	[***]
	 	 	Steering Committee meeting is held.	 	 	 	 
	 	 	The methods to measure [***] are agreed to.	 	 	 	[***]
	 	 	Steering Committee meeting is held.	 	Senomyx to share [***].	 	[***]
	 	 	Steering Committee meeting is held.

  

Reviews [***].	 	A validated [***].

  

Initiate [***].

Expected [***].	 	[***]
	 	 	 	 	[***] for additional desired [***] are developed as defined by the Steering Committee.	 	[***]
	 	 	 	 	[***].

 

[***] results are used to [***] to identify [***].

 

For certain [***] will be generated and the [***] will be determined.	 	[***]
	 	 	 	 	Activity on [***] are stored in a [***] to identify most [***].	 	[***]
	 	 	 	 	 	 	 

24

 

	 	 	Steering Committee meeting is held.	 	 	 	[***]
	 	 	 	 	Senomyx [***] evaluates a set of [***] will determine the [***] and the maximal levels [***].	 	[***]
	 	 	Steering Committee meeting is held.	 	 	 	[***]
	Nestlé to participate in [***].	 	Defines and agrees to [***].	 	Senomyx performs [***] performed by an [***].

 

Perform [***].	 	[***]
	 	 	Steering Committee meeting is held.

  

Review [***] and verifies [***] criteria are achieved, the Steering Committee approves [***].	 	Expected [***]. Senomyx informs Steering Committee of [***].	 	[***]
	Provides Senomyx with [***].

 

Works with Senomyx to prepare [***].

 

Participates in [***].	 	Defines and agrees to [***].

  

If desired, coordinate [***].	 	Prepares [***].

  

Performs [***] Senomyx according to agreed protocol.

  

Performs [***].	 	[***]
	Nestlé reviews [***].

Nestlé has up to [***] to determine if a [***].	 	Steering Committee meeting is held	 	Identify [***] that best meet [***].

  

Prepares first [***]. Submits [***] to Nestlé.	 	[***]
	 	 	 	 	Initiates [***] can be initiated prior to selecting [***].	 	 
	Nominates a [***].	 	Steering Committee meeting is held.

  

Agrees to the [***].

  

Agrees to the [***].	 	Reviews [***] with Nestlé.

 

Senomyx initiates [***].

 

Expected [***].	 	[***]

 

[***]
	 	 	Establishes desired [***].	 	Continue to [***] and evaluate in the [***]	 	[***]
	 	 	 	 	 	 	 

25

 

	 	 	Steering Committee meeting is held.	 	Senomyx to [***] to coordinate and/or perform the [***].

 

Senomyx to [***] to initiate [***].

  

Senomyx will initiate [***] no later than upon [***].	 	[***]
	 	 	 	 	Senomyx is responsible for [***].	 	[***]
	 	 	Investigate [***].	 	 	 	[***]
	 	 	Steering Committee meeting is held.	 	Senomyx discusses [***].	 	[***]
	 	 	Steering Committee is held.	 	Senomyx discusses [***].	 	[***]
	Nestlé will [***].	 	 	 	 	 	[***]
	 	 	Steering Committee meeting is held. Reviews [***].	 	[***].	 	[***]
	 	 	 	 	Submits [***].	 	[***]
	 	 	Steering Committee meeting is held.	 	Receives [***].	 	[***]
	Nestlé will [***] to implement and complete a [***].	 	Steering Committee approves [***].	 	Expected [***].	 	No later than [***] following [***]

26

 
[***] Program Research and Development Plan  

	Nestlé

Responsibility
 
	 	Steering Committee

Responsibility
	 	Senomyx Responsibility
	 	Cumulative Time

(months)

	Assigns [***] representatives to the Steering Committee.	 	 	 	Assigns [***] representatives to the Steering Committee.	 	Within [***] of the Effective Date
	 	 	First Steering Committee meeting is held.

  

Steering Committee to review, amend and approve [***].	 	Senomyx presents [***].	 	Within [***] of the Effective Date
	Describes general [***].	 	 	 	Senomyx will apply information on [***].	 	[***]
	 	 	Steering Committee meeting is held.

 

The methods to measure [***] are agreed to.	 	 	 	[***]
	 	 	 	 	[***]	 	 
	 	 	 	 	[***] results are used to [***] to identify [***].	 	[***]
	 	 	 	 	[***] showing [***] that act on [***] will be generated and the [***] will be determined.	 	[***]
	 	 	 	 	[***] for additional desired [***] as defined by the Steering Committee.	 	[***]
	 	 	 	 	Activity on [***] are stored in a [***] to identify most [***].	 	[***]
	 	 	Steering Committee meeting is held.	 	Senomyx shares [***].	 	[***]
	 	 	 	 	Senomyx [***] to evaluates a set of [***] will determine the [***] and the maximal levels to be [***].	 	[***]
	Nestlé to participate in [***].	 	Defines and agrees to [***].	 	Senomyx to perform [***] or have the [***] by an outside [***].	 	[***]
	 	 	 	 	 	 	 

27

 

	 	 	Steering Committee meeting is held.

 

Review [***] and verifies [***] are achieved, the Steering Committee approves [***].	 	Senomyx to share [***].

 

Expected [***]. Senomyx informs Steering Committee of [***].	 	[***]
	 	 	Steering Committee meeting is held.	 	 	 	[***]
	 	 	 	 	Senomyx continues to [***] to improve [***]	 	[***]
	 	 	Steering Committee meeting is held.	 	 	 	[***]
	 	 	 	 	Perform [***].	 	[***]
	Provides Senomyx with [***].

  

Works with Senomyx to prepare [***].

 

Participates in [***].	 	Defines and agrees to [***].

 

If desired, coordinate [***].	 	Prepares [***].

  

Performs [***] according to agreed protocol.

  

Performs [***].	 	[***]
	 	 	Steering Committee meeting is held.	 	Senomyx to share [***].	 	[***]
	Nestlé to review [***]. Nestlé has up to [***] to determine if a [***].	 	 	 	Identifies [***].

  

Prepares first [***]. Submit [***] to Nestlé.	 	[***]
	 	 	 	 	Initiates [***].	 	 
	Nominates [***].	 	Steering Committee meeting is held.

  

Agrees to the selection of a [***].

  

Agrees to the [***].

  

Steering Committee approves [***].	 	[***] data package [***].

 

Senomyx initiates [***].

 

Expected [***].	 	[***]

 

[***]
	 	 	Establishes desired [***].	 	Continue to [***] and evaluate in the [***]	 	[***]
	 	 	 	 	 	 	 

28

 

	 	 	Steering Committee meeting is held.

 

Steering Committee approves [***].	 	Senomyx to [***] to coordinate and/or perform [***].

  

Senomyx to [***] to initiate [***].

  

Senomyx will initiate [***].

Expected [***].	 	[***]
	 	 	 	 	Senomyx is responsible for [***].	 	[***]
	 	 	Investigate [***] and initiate [***].	 	 	 	[***]
	 	 	Steering Committee meeting is held.	 	 	 	[***]
	 	 	Steering Committee meeting is held.	 	 	 	[***]
	Nestlé would present [***]	 	 	 	 	 	[***]
	 	 	Steering Committee meeting is held. Reviews [***].

 

Steering Committee approves [***].	 	[***] is completed.

 

Expected [***].	 	[***]
	 	 	 	 	Submits [***].	 	[***]
	 	 	Steering Committee meeting is held.	 	Receives [***].	 	[***]
	Nestlé will [***] to implement and complete a [***] to ascertain the [***].	 	 	 	 	 	No later than [***] following [***]

29

   
        ***Text Omitted and Filed Separately

with the Securities and Exchange Commission.

Confidential Treatment Requested

Under 17 C.F.R. Sections 200.80(b)(4),

200.83 and 230.406.  

 FIRST AMENDMENT

TO THE

COLLABORATIVE RESEARCH AND LICENSE AGREEMENT  

        THIS FIRST AMENDMENT TO THE COLLABORATIVE RESEARCH AND LICENSE AGREEMENT (the "First
Amendment") is made by and between SENOMYX, INC. ("Senomyx"), a Delaware
corporation, having a principal place of business at 11099 North Torrey Pines Road, La Jolla, California 92037, and NESTEC, Ltd.
("Nestlé"), a Swiss company, having a principal place of business at Avenue Nestlé 55, CH-1800 Vevey,
Switzerland. 

        WHEREAS, Senomyx and Nestlé entered into that certain Collaborative Research and License Agreement dated as of
April 18, 2002 (the "Agreement") to collaborate in the following research and development programs: (i) to discover compounds that enhance
the [***] taste of products in defined fields; and (ii) to discover compounds that enhance the taste of  [***] in defined fields (capitalized terms
used but not otherwise defined in this First Amendment shall have the meanings given
such terms in the Agreement); and 

        WHEREAS, the parties wish to amend the Agreement to expand the  [***] Program to include discovery of compounds that mimic the taste of  [***]
 and [***] in the manner set forth in this First
Amendment. 

        NOW, THEREFORE, in consideration of the foregoing premises and of the covenants, representations and agreements set forth below, the
parties hereby agree to amend the Agreement as follows: 

        1.    The first two sentences of Section 4 of the Agreement are hereby amended and restated in their entirety as follows: 

         "Collaboration with an Affiliate or Third Party.    During the Term, and without limitation to the grant of rights in Section 8,
Senomyx will
have the right to enter into collaborative programs with its Affiliates or with Third Parties including, but not limited to, collaborative programs to discover compounds that (i) enhance the  [***]
taste of products outside the [***] Field;
(ii) enhance and/or mimic the taste of [***] and  [***] in products outside the [***] Field;
(iii) enhance the taste of molecules other than [***] within the  [***] Field; or (iv) enhance and/or mimic the taste of molecules other than
 [***] and [***] within the  [***] Field. However, Senomyx shall notify Nestlé, in writing, prior to
entering into a collaborative program
with an Affiliate or with a Third Party during the Collaborative Period for the discovery of compounds that enhance the [***]
taste of products or to enhance or mimic the taste of [***] and  [***] in products that are not described in the [***]

Category, of such program and products and if Nestlé does not have, at the time of such notification, plans to commercialize products that would fall under such program and products,
Senomyx may enter into such program for such products. 

        2.    Section 7.2.2(2) of the Agreement is hereby amended and restated in its entirety as follows: 

        "7.2.2(2)
[***] Program milestone 2 

        Deadline:
[***] after achieving [***]

        Objective:
(i) Identify at least [***] that  [***] by demonstrating equivalence in [***] or provides  [***]; and (ii) Complete [***]. 

1

 

        3.    The following definitions of Appendix A of the Agreement are hereby amended and restated herein. All other
definitions in the Agreement will remain unchanged. 

        "Compound(s)"
means molecules synthesized or acquired in the course of the Collaborative Program wherein such molecules: (i) in relation to the  [***] Program, provide the desired enhancement and/or mimetic
properties; (ii) in relation to the  [***] Program, provide the desired enhancement; and (iii) in relation to both the  [***] Program and the
[***] Program, can be produced at
or less than the Maximum Compound Cost. 

        "[***] Program" means a research and development program during the Collaborative Period to discover molecules
that enhance the taste of [***] and/or mimic the taste of  [***]. The [***] Program is to be conducted
pursuant to
the [***] Research Plan. 

        4.    The Research Plan Appendix B for the [***]
Program is hereby amended and restated in its entirety as attached hereto. The Research Plan Appendix B for the [***]
Program shall remain unchanged. 

        5.    Except as specifically amended by this First Amendment, the terms and conditions of the Agreement shall remain in full
force and effect. 

        6.    This First Amendment will be governed by the laws of California, U.S.A., as such laws are applied to contracts entered
into and to be performed entirely within such state. 

        7.    This First Amendment may be executed in two or more counterparts, each of which shall be deemed an original, but all of
which together shall constitute one and the same instrument. 

        IN WITNESS WHEREOF, the parties have executed this First Amendment effective as of October 23, 2003. 

	NESTEC LTD.	 	 
	

By:	
 	

/s/  [TEXT ILLEGIBLE]      
	
 	

 
	

Title:	
 	

Director
	
 	

 
	

Date:	
 	

October 23, 2003
	
 	

 
	
SENOMYX, INC.	
 	

 
	

By:	
 	

/s/  KENT SNYDER      
	
 	

 
	

Title:	
 	

President and CEO
	
 	

 
	

Date:	
 	

October 23, 2003
	
 	

 

2

 
APPENDIX B  

 TO FIRST AMENDMENT TO THE

COLLABORATIVE RESEARCH AND LICENSE AGREEMENT  

 AMENDED AND RESTATED RESEARCH PLAN FOR [***] PROGRAM  

REFER TO APPENDIX B OF [***] PROGRAM OF ORIGINAL AGREEMENT NO CHANGES MADE WITH FIRST
AMENDMENT

3

QuickLinks

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 -- Click here to rapidly navigate through this document

Exhibit 10.16  

***Text Omitted and Filed Separately

with the Securities and Exchange Commission.

Confidential Treatment Requested

Under 17 C.F.R. Sections 200.80(b)(4),

200.83 and 230.406.  

        Confidential 

COLLABORATIVE RESEARCH,

DEVELOPMENT, COMMERCIALIZATION

AND LICENSE AGREEMENT  

 BETWEEN  

 SENOMYX, INC.

AND

THE COCA-COLA COMPANY  

 
  
 

    Table of Contents    
    

	COLLABORATIVE RESEARCH, DEVELOPMENT, COMMERCIALIZATION AND LICENSE AGREEMENT	 	1
	1.	 	DEFINITIONS	 	1
	2.	 	OBJECT OF AGREEMENT	 	1
	3.	 	COLLABORATIVE R&D PROGRAM	 	1
	4.	 	STEERING COMMITTEE	 	1
	 	 	4.1 Formation of Steering Committee	 	1
	 	 	4.2 Role of Steering Committee	 	1
	 	 	4.3 Composition	 	2
	 	 	4.4 Operation	 	2
	 	 	4.5 Meetings	 	2
	 	 	4.6 Minutes	 	2
	5.	 	RESEARCH PLAN	 	2
	 	 	5.1 Initial Research Plan	 	2
	 	 	5.2 Implementation of Research Plan	 	2
	 	 	5.3 Determination of Commercially Viable Enhancing Compound(s)	 	3
	 	 	5.4 Notification of Selected Compound	 	3
	 	 	5.5 KO Compounds and KO Related Compounds	 	3
	 	 	5.6 [***] Enhancing Compounds	 	3
	6.	 	DEVELOPMENT	 	3
	 	 	6.1 Initial Development Plan	 	3
	 	 	6.2 Implementation of Development Plan	 	4
	 	 	6.3 Regulatory	 	4
	 	 	6.4 Costs of Regulatory Filings	 	4
	 	 	6.5 Additional Safety Studies or Regulatory Approvals	 	4
	 	 	6.6 Cooperation	 	4
	7.	 	COMMERCIALIZATION	 	5
	 	 	7.1 Commercialization Plan	 	5
	 	 	7.2 Format of Commercialization Plan	 	5
	8.	 	RIGHTS, OBLIGATIONS AND LIMITATION OF THE PARTIES	 	5
	 	 	8.1 Inside the Fields	 	5
	 	 	8.2 Outside the Fields	 	5
	 	 	8.3 Preferred Relationship	 	6
	 	 	8.4 Manufacturing	 	6
	 	 	8.5 Rights to a New High-Potency [***]	 	6
	9.	 	FINANCIAL TERMS	 	7
	 	 	9.1 Annual Research Support	 	7
	 	 	9.2 Credit Toward Royalties During Collaborative R&D Period	 	7
	 	 	9.3 Milestone Payments	 	7
	 	 	9.4 Royalty for Beverages Incorporating Product Compounds	 	8
	 	 	9.5 Minimum Annual Royalties	 	9
	 	 	9.6 Adjustment of Values for Minimum Royalties	 	10
	 	 	9.7 Payment Terms	 	10
	 	 	9.8 Currency of Payment	 	11
	 	 	9.9 Taxes Withheld	 	11
	 	 	9.10 Late Payment	 	11
	 	 	9.11 Records of Unit Sales, Net Sales and Royalty Calculations	 	11
	10.	 	GRANTS	 	12
	 	 	 	 	 

ii

 

	 	 	10.1 Non-exclusive Grant by SENOMYX of Rights Regarding Evaluation of Enhancing Compounds	 	12
	 	 	10.2 Non-exclusive Grant by SENOMYX of Rights to Make and Have Made Selected Compounds	 	12
	 	 	10.3 Non-Exclusive Grant of Rights by SENOMYX to Make, Have Made, Use and Sell Beverages and Beverage Bases with Selected Compound	 	12
	 	 	10.4 Exclusive Grant of Rights by SENOMYX Regarding Selected Compounds and Beverages and Beverage Bases that Incorporate Selected Compounds	 	12
	 	 	10.5 Co-Exclusive Grant of Rights by SENOMYX Regarding Selected Compounds and Powdered Beverage Bases incorporating Selected Compounds	 	13
	 	 	10.6 Contingent Third Party Rights to Field II	 	13
	 	 	10.7 Limitation on Licenses	 	13
	 	 	10.8 If KO Does Not Pay Minimum Royalties	 	13
	 	 	10.9 Most Favored Licensee	 	13
	 	 	10.10 Obligations Related to Sublicenses	 	13
	 	 	10.11 Non-exclusive Grant of Rights from KO to SENOMYX for Research Purposes	 	14
	 	 	10.12 Non-exclusive Grant of Rights from KO to SENOMYX for KO Related Compounds	 	14
	 	 	10.13 Exclusive Grant of Rights from KO to SENOMYX for KO Related Compounds	 	14
	 	 	10.14 Non-Exclusive Grant of Rights to SENOMYX Trademark	 	14
	11.	 	OWNERSHIP OF INTELLECTUAL PROPERTY	 	14
	 	 	11.1 Transfer of Rights	 	14
	 	 	11.2 SENOMYX Inventions	 	14
	 	 	11.3 KO Inventions	 	15
	 	 	11.4 Joint Inventions	 	15
	 	 	11.5 Other Inventions	 	15
	 	 	11.6 Markings	 	15
	 	 	11.7 Inventorship and Assignment	 	16
	12.	 	PATENT PROSECUTION AND MAINTENANCE	 	16
	 	 	12.1 Prosecution of Patents	 	16
	 	 	12.2 Inventions under Collaboration	 	16
	13.	 	INTELLECTUAL PROPERTY ENFORCEMENT AND DEFENSE OF CLAIMS	 	16
	 	 	13.1 Defense of Infringement Claims for SENOMYX Technology	 	16
	 	 	13.2 Defense of Infringement Claims for KO Technology	 	17
	14.	 	TREATMENT OF CONFIDENTIAL INFORMATION: REPORTING REQUIREMENTS, PUBLICITY, LAW AND REGULATIONS	 	17
	 	 	14.1 Confidentiality	 	17
	 	 	14.2 Disclosure to Related Parties	 	17
	 	 	14.3 Return of Confidential Material	 	18
	 	 	14.4 Exceptions to Confidential Information	 	18
	 	 	14.5 Confidential Financial Information	 	18
	 	 	14.6 Confidential Research Information	 	18
	 	 	14.7 Permitted Use and Disclosures	 	19
	 	 	14.8 Use of Data for Promotional Purposes	 	19
	 	 	14.9 Publication of Results	 	19
	 	 	14.10 Publicity	 	19
	 	 	14.11 Reporting, Law and Regulation	 	20
	15.	 	TERM, EARLY CONCLUSION, AND TERMINATION	 	20
	 	 	15.1 Term	 	20
	 	 	15.2 Early Conclusion of the Collaborative R&D Period by KO	 	20
	 	 	15.3 Termination By Mutual Agreement	 	20
	 	 	15.4 Termination By KO for Acquisition of SENOMYX By a KO Competitor	 	20
	 	 	 	 	 

iii

 

	 	 	15.5 Effect of Termination	 	20
	 	 	15.6 Survival	 	21
	16.	 	WARRANTIES AND INDEMNIFICATION	 	21
	 	 	16.1 Mutual Representations and Warranties	 	21
	 	 	16.2 Corporate Power	 	21
	 	 	16.3 Due Authorization	 	21
	 	 	16.4 Binding Agreement	 	21
	 	 	16.5 Warranties Regarding SENOMYX Technology	 	22
	 	 	16.6 Warranties Relating to KO Technology	 	23
	17.	 	MISCELLANEOUS	 	24
	 	 	17.1 Force Majeure	 	24
	 	 	17.2 Governing Law and Jurisdiction	 	24
	 	 	17.3 Binding Effect	 	24
	 	 	17.4 Dispute Resolution	 	25
	 	 	17.5 Severability	 	26
	 	 	17.6 Independent Contractors	 	26
	 	 	17.7 Entire Agreement	 	26
	 	 	17.8 Amendment	 	26
	 	 	17.9 Interpretation	 	27
	 	 	17.10 Waiver	 	27
	 	 	17.11 Construction	 	27
	 	 	17.12 No Third Party Beneficiaries	 	27
	 	 	17.13 Notices	 	27
	 	 	17.14 Assignment	 	27
	 	 	17.15 Merger or Consolidation	 	27
	 	 	17.16 Counterparts	 	28
	APPENDIX A—DEFINITIONS	 	29
	APPENDIX B—RESEARCH PLAN	 	33
	APPENDIX C—DEVELOPMENT PLAN	 	38
	APPENDIX D—COMMERCIALIZATION PLAN	 	40
	APPENDIX E—EXCEPTIONS TO KO RIGHTS TO KO COMPOUND (TO BE PROVIDED BY KO)	 	41

iv

   COLLABORATIVE RESEARCH, DEVELOPMENT, COMMERCIALIZATION AND LICENSE AGREEMENT  

        This
Agreement is entered into as of the April 22, 2002 (the "Effective Date") by and between SENOMYX, INC., a Delaware
Corporation having its principal place of business at 11099 North Torrey Pines Road, La Jolla, CA 92037 ("SENOMYX") and THE COCA-COLA
COMPANY, a Delaware Corporation, having its principal place of business at One Coca-Cola Plaza, Atlanta, Georgia 30313 ("KO"). 

BACKGROUND  

        WHEREAS, SENOMYX conducts research in the field of chemosensation, an objective of which is to study potential
biological targets and develop assays for use in the discovery of compounds that will ultimately be commercialized as taste and olfaction products. KO is in the business of developing, manufacturing
and marketing consumer products. SENOMYX and KO desire to collaborate in research and development to discover and commercialize compounds that enhance the  [***] taste of commercial [***] for use in the fields
defined below. 

        NOW, THEREFORE, in consideration of the foregoing premises and of the covenants, representations and agreements set forth below, the
parties hereby agree as follows: 

THE AGREEMENT  

1.     DEFINITIONS  

        Certain capitalized terms are defined in Appendix A and incorporated into this Agreement by reference. 

2.     OBJECT OF AGREEMENT  

        The goals of the collaboration between KO and SENOMYX are: 

        a)    to
implement a program for the research and development of Enhancing Compounds to be marketed for use in accordance with Section 10; and 

        b)    to
provide KO with rights to Product Compound(s) as provided in Section 10. 

3.     COLLABORATIVE R&D PROGRAM  

        The parties will collaborate during the Collaborative R&D Period to discover Enhancing Compounds and develop Selected Compounds, pursuant to the Research Plan and
the Development Plan (collectively, the "Collaborative R&D Program"). This Agreement establishes a Collaborative R&D Program of three years
("Collaborative R&D Period"). 

4.     STEERING COMMITTEE  

        4.1    Formation of Steering Committee    

        No
later than ten days after the Effective Date, the parties will establish a joint steering committee ("Steering Committee"). 

        4.2    Role of Steering Committee    

        The
Steering Committee will manage the Collaborative R&D Program and will: 

          (i)  provide
strategic direction and performance criteria for the Collaborative R&D Program; 

         (ii)  monitor
progress and communicate status of the Collaborative R&D Program; 

1

 

        (iii)  facilitate
the cooperation of the parties under the Collaborative R&D Program; 

        (iv)  communicate
during the Commercialization Period regarding the development of Selected Compound(s) and the commercialization of Beverages and Beverage Bases
incorporating Selected Compounds; 

         (v)  review
and amend if necessary the Research Plan and the Development Plan; 

        (vi)  determine
which of the Enhancing Compound(s) that KO determines is are commercially viable will be selected for development as Selected Compound(s); and 

       (vii)  establish
the protocol for determining the enhancement level of Enhancing Compounds, and Selected Compounds, and agree on the level of enhancement of Enhancing
Compounds. 

        4.3    Composition    

        The
Steering Committee will consist of two representatives officially designated by SENOMYX and two representatives officially designated by KO, all of whom may change from time to time. 

        4.4    Operation    

        Each
official member of the Steering Committee will have one vote. All Steering Committee decisions will be made by unanimous vote and at a meeting where all four official members
participate. Any unresolved disputes will be subject to the procedures outlined in Section 17.4, or as otherwise mutually agreed upon by the parties in writing. 

        4.5    Meetings    

        The
Steering Committee will first meet no later than thirty days after the Effective Date and at least four times per year during the Collaborative R&D Period and the Commercialization
Period of this Agreement using mutually agreed upon meeting locations and formats including teleconferencing and videoconferencing. Each party will bear its own expenses relating to the meetings and
activities of the Steering Committee. Subject to the approval of the Steering Committee, which shall not be unreasonably withheld, each party may request the attendance of subject matter experts, who
may or may not be employees of either party, as desired at Steering Committee meetings as non-voting, unofficial, ad-hoc members. 

        4.6    Minutes    

        During
the Collaborative Period and the Commercialization Period, SENOMYX will promptly prepare and deliver to the members of the Steering Committee, the minutes of such meetings for
review and approval by both parties. 

5.     RESEARCH PLAN.  

        5.1    Initial Research Plan    

        The
initial research plan is set forth in Appendix B and incorporated into this Agreement by reference ("Research Plan"). 

        5.2    Implementation of Research Plan    

        SENOMYX
will use best efforts, using the resources received under Section 9.1, to perform the activities outlined in the Research Plan. SENOMYX represents and KO acknowledges that
the total resources to be deployed for pursuit of the program objectives will be significantly more than those provided under Section 9.1. SENOMYX will designate a project team comprising
personnel with the technical qualifications and expertise that are reasonably required to accomplish the activities outlined in the Research Plan. If there are any changes in the members of the
project team, SENOMYX will ensure that replacement members will have the equivalent technical qualifications and expertise. 

2

 

        SENOMYX
will provide KO reasonable access to the aggregate results of the screening program including the identity of the compounds screened and information about active compounds
(compounds exhibiting activity in the assay) found. SENOMYX will provide KO with information on all Enhancing Compounds, including information on stability,solubility, in
vitro toxicity and in vivo toxicity, samples of Enhancing Compounds adequate for full evaluation (the amount of which shall be
determined by the Steering Committee), and manufacturing cost estimates ("Data Package(s)"). 

        KO
will use best efforts to perform the activities in accordance with the Research Plan, including the evaluation of the Data Packages provided by SENOMYX for Enhancing Compounds. 

        5.3    Determination of Commercially Viable Enhancing Compound(s)    

        Each
time SENOMYX provides a Data Package, KO will determine whether an Enhancing Compound in such Data Package is commercially viable for use in Beverages and Beverage Bases in the
Fields. Such determination will be made with the assistance of SENOMYX under the criteria identified in Section 9.3(b), and such other criteria due to the specifics of the Enhancing Compound or
Development Plan. Such determination will be made within a mutually agreeable period from receiving such Data Package, not to exceed  [***]. 

        5.4    Notification of Selected Compound    

        At
the Steering Committee meeting directly following the evaluation of such Data Package, KO will notify the Steering Committee of the results of the evaluation and the Steering
Committee will determine if an Enhancing Compounds in such Data Package will be selected for development under the Development Plan ("Selected
Compound(s)"). 

        5.5    KO Compounds and KO Related Compounds    

        KO
represents that it has found a compound having a [***] effect for among others  [***] ("KO Compound"). KO has also identified a list of  [***] that KO would be interested in investigating for  [***] effects ("KO Related Compounds"). Prior to KO disclosing the KO Compound and the KO Related Compounds to
SENOMYX, though
it is anticipated that such disclosure will be no later than [***] following the Effective Date, KO will provide SENOMYX with a
complete report detailing its patent searches, including any freedom to operate opinions, covering the KO Compounds and KO Related Compounds. The Steering Committee will decide which if any of the KO
Related Compounds will be synthesized by SENOMYX and investigated using SENOMYX Technology to determine whether any of the KO Related Compounds exhibit enhancing effects with the Target  [***].

        5.6    [***] Enhancing Compounds    

        The
Collaborative R&D Program contemplates the investigation of [***] compounds for commercial  [***] potential. SENOMYX and KO acknowledge that the
Collaborative R&D Program would initially concentrate on the discovery of  [***] compounds. The initiation of and the terms for the discovery of  [***]
compounds will be mutually agreed upon in writing by the Steering Committee. The parties will negotiate in good faith, any
amendment to the Agreement relating to incremental costs for enabling technologies mutually deemed necessary for the discovery and commercialization of  [***] compounds. 

6.     DEVELOPMENT.  

        6.1    Initial Development Plan    

        The
initial development plan is set forth in Appendix C and incorporated into this Agreement by reference ("Development Plan"). 

        SENOMYX
will use best efforts using the resources received under Section 9.1 to perform the activities assigned to it in the Development Plan. SENOMYX represents and KO
acknowledges that 

3

 

the
total resources to be deployed for pursuit of the program objectives will be significantly more than those provided under Section 9.1. 

        KO
will use best efforts to perform the activities assigned to it in the Development Plan. 

        6.2    Implementation of Development Plan    

        The
implementation of the Development Plan will: 

          (i)  commence
upon the Steering Committee's selection of a Selected Compound(s) that will be developed under the Development Plan; and 

         (ii)  end
upon FEMA GRAS determination for such Selected Compound, and if applicable the receipt of an FDA no action letter or completion of any additional safety studies
requested by FDA. 

        6.3    Regulatory    

          (i)  Under
the Development Plan, as part of its obligation to perform the activities assigned to it, SENOMYX will make all regulatory filings to obtain approval for the use
of the Selected Compound(s). 

         (ii)  SENOMYX
will exclusively own all regulatory filings made or filed by SENOMYX for a Selected Compound(s), and regulatory filings will be subject to the license grants
pursuant to Section 10. SENOMYX will appoint a regulatory consultant who will be obligated to provide non-confidential updates on the regulatory strategies and filings on other
programs at SENOMYX. Additionally, SENOMYX will, in good faith, attempt to facilitate the mutual exchange of information on the regulator strategy as it relates to the  [***] program. 

        6.4    Costs of Regulatory Filings    

        SENOMYX
will be responsible for the reasonable costs associated with FEMA GRAS determination. SENOMYX will not be responsible for costs that exceed the greater of either: 

          (i)  the
costs of obtaining FEMA GRAS determination for [***]; or 

         (ii)  [***]. 

        Any
costs incurred by KO in obtaining FEMA GRAS determination for a Selected Compound that becomes a Product Compound, will be  [***]. 

        6.5    Additional Safety Studies or Regulatory Approvals    

        The
Steering Committee will agree on: 

          (i)  any
additional safety studies to be performed on the Selected Compound(s); 

         (ii)  the
additional regulatory approvals or determinations to be obtained for the Selected Compound(s); and 

        (iii)  the
allocation of costs and resources between KO and SENOMYX associated with such activities over and above those stated in Section 6.4. 

        6.6    Cooperation    

        KO
will cooperate to the extent reasonably necessary to assist SENOMYX in the performance of the foregoing activities and SENOMYX will provide KO with copies of all filings, data and
determinations on the Selected Compound(s). 

4

 

        In
addition, each party is obligated to: 

          (i)  give
timely notice to the other party for any adverse events and product recall actions relating to Beverages or Beverage Bases incorporating Product Compounds; and 

         (ii)  report
such adverse events as required by law. 

7.     COMMERCIALIZATION  

        7.1    Commercialization Plan    

        As
an overall goal of the Commercialization Plan, KO desires to market current and new Beverages and Beverage Bases incorporating Product Compounds. Prior to completion of the activities
set forth in the Development Plan for the Selected Compound(s), KO will prepare a detailed plan for the commercialization of Beverages and Beverage Bases incorporating Product Compounds that includes,
as a minimum, the guidelines stated below in Section 7.2 (the "Commercialization Plan"). The Commercialization Plan will be attached as
Appendix D to this Agreement, and incorporated into the Agreement by reference. 

        7.2    Format of Commercialization Plan    

        The
Commercialization Plan will include: 

          (i)  commercially
reasonable timelines; 

         (ii)  specific
diligence timelines for KO and SENOMYX; 

        (iii)  the
geographic scope of commercialization, including each country worldwide; 

        (iv)  terms
and conditions of manufacturing of Product Compounds; and 

         (v)  general
information on packaging, promoting, advertising, distribution, selling and supply of Beverages and Beverage Bases incorporating a Product Compound. 

        Thereafter
KO will provide general sales forecasting reports for Beverages and Beverage Bases incorporating a Product Compound on an annual basis for the remainder of the
Commercialization Period. Such sales forecasting reports shall include quantifiable information, including projected Unit Case sales and market research data, if available, with an annual forecast of
Product Compound requirements for the next Calendar Year, submitted to SENOMYX at least [***] before the beginning of the next
Calendar Year. The Steering Committee will meet as appropriate to review and assess, for purposes of establishing future manufacturing needs, the sales forecast report. In accordance with the
Commercialization Plan, KO will be responsible for formulating and testing Beverages and Beverage Bases incorporating Product Compounds including the cost associated with such activities. 

8.     RIGHTS, OBLIGATIONS AND LIMITATION OF THE PARTIES  

        8.1    Inside the Fields    

        During
the Term of the Agreement SENOMYX agrees not to provide research and development services or grant any rights to SENOMYX Technology to a Third Party for use in the discovery or
commercialization of Compounds for application in the Fields, subject to the co-exclusive rights in Field II, the early conclusion provision under Section 15.2, and KO's royalty
payment obligations under Section 10.8.2. 

        8.2    Outside the Fields    

        SENOMYX
will have the right to enter into collaborative programs with Third Parties, including but not limited to collaborative programs to discover Compounds for use outside the Fields.
Furthermore, nothing in this Agreement will limit the right of 

5

 

        SENOMYX
to license or commercialize Compounds as [***] enhancers of  [***], which are: 

          (i)  not
incorporated into beverages; and 

         (ii)  intended
only for non-commercial end use by consumers. 

        Subject
to the rights of the Third Party set forth in Section 10.5, SENOMYX will not promote or allow, where possible, any Third Party to promote such  [***] enhancers to be used with a Competitive Product
in the Fields. 

        8.3    Preferred Relationship    

        SENOMYX
and KO acknowledge that SENOMYX may collaborate with Third Parties in programs unrelated to Compounds. Such collaboration may result in the discovery of technologies and
compounds that have application in the Fields. Unless otherwise precluded under this Agreement or Third Party agreements, SENOMYX will provide KO with non-confidential information
regarding such new technologies and use reasonable effort to negotiate mutually acceptable commercial terms for KO to obtain a license to such new technologies for use in the Fields. 

        8.4    Manufacturing    

        The
parties will collaborate to identify a manufacturer and/or enter into supply and manufacturing agreements with a mutually agreed upon Third Party(ies) regarding Product Compounds;
provided however, SENOMYX will have the option to be the preferred manufacturer of any such Product
Compounds, subject to KO's approval which shall not be unreasonably withheld. Nothing in this Section 8.4 shall prevent KO from identifying and/or entering into supply and manufacturing
agreements with secondary manufacturers of any Product Compound. 

        8.5    Rights to a New High-Potency [***]    

        This
Agreement does not preclude SENOMYX from entering into a collaboration for the discovery, development and commercialization of compounds that are high-potency  [***], as long as such compounds do not
enhance the intensity of other  [***] including the Target [***] at concentrations below
the threshold of [***] for such compounds ("High-Potency
[***]"). During the first [***] following the Effective Date and before entering
into a collaboration with a Third Party for the discovery, development, and commercialization of High-Potency [***],
suitable for use in the Fields, SENOMYX will provide written notice of non-confidential terms to KO. Within [***] of
such notice, KO may exercise a right of first refusal by entering into a binding definitive agreement on terms [***]. If KO
decides not to enter into a collaboration under such Third Party's terms, SENOMYX may, with no further notification or obligation, enter into collaboration with any Third Party; provided, however,
that the terms of such Third Party collaboration will be [***]. 

6

   9.     FINANCIAL TERMS  

        9.1    Annual Research Support    

        9.1.1    Funding Amount    

        Each
year during the Collaborative R&D Period, KO will pay SENOMYX $2,000,000 for the services provided in accordance with the Agreement. Upon achievement of  [***], KO will cease making payments for
research and development and instead make annual payments of $2,000,000 (prorated for
any amount previously paid for research and development for such year) in order to adapt and continue to develop the then existing capabilities/intellectual property for further enhancement of
commercial opportunities during the Collaborative R&D Period. 

        9.1.2    Payment Terms    

        KO
will make payments that: 

          (i)  are
in advance; 

         (ii)  on
an equal quarterly basis; and 

        (iii)  total
$6,000,000 (subject to Section 15) and are allocated and recognizable by SENOMYX during the three year Collaborative R&D Period. 

        9.1.3    Timing of Payment    

        The
first payment will be made within [***] following the Effective Date. 

        9.1.4    Excluded Items    

        The
allocation of these payments do not include: 

          (i)  KO's
costs associated with providing support for the collaboration; and 

         (ii)  the
costs of any unanticipated materials as requested and agreed to by the parties. 

        9.2    Credit Toward Royalties During Collaborative R&D Period    

        If
during any year of the Collaborative R&D Period KO is paying royalties, then all royalties up to [***] will be
waived. Any royalties not waived (i.e.. in excess of [***]) under the preceding sentence will be credited against any future
amounts owed for Annual Research Support under Section 9.1 in such year during the Collaborative R&D Period. 

        9.3    Milestone Payments    

        KO
will pay SENOMYX the following non-creditable, non-refundable milestone payments within  [***] of the occurrence of the following milestone events, as determined by the Steering Committee: 

        a)    [***] upon [***]
(discovery of the first [***] with at least [***] of a  [***] and in [***]
 of no more than  [***]; 

        b)    [***] upon identification of the first  [***]. To be [***] at least  [***];
or the [***] at least  [***] without the introduction of [***]; and meet the
following additional [***] criteria necessary to perform such  [***]; 

        c)     [***] upon the [***] of
the first [***]; and 

        d)    [***] upon the first [***]
of the [***] or the [***] incorporating a  [***]. 

7

 

        9.4    Royalty for Beverages Incorporating Product Compounds    

        KO
will pay to SENOMYX a royalty on Beverages incorporating a Product Compound [***]: 

        a)    the
number of [***] incorporating Product Compounds sold by  [***] each [***] as calculated below  [***]; and 

        b)    the
amount of [***] incorporating Product Compounds sold each  [***] as calculated below [***]. 

        9.4.1    The Base Component    

        The
Base Component will be calculated by multiplying the number of [***] incorporating Product Compounds sold each  [***] by [***]
, to be adjusted  [***] to reflect [***]. KO will use reasonable effort to
convert such calculation into [***] and, upon the
mutual agreement of the parties, the Base Component will be adjusted so that it will be no less than the [***]. 

        9.4.2    The Cost Savings Component    

        The
Cost Savings Component for each Beverage incorporating Product Compounds is dependent on two components: 

           i)  the
[***] of the Product Compound in such  [***], determined by the [***] in the  [***]
; and 

          ii)  the  [***] incorporating Product Compounds sold each  [***].

        The
royalty rate will be determined by the following matrix: 

	 
	 	 
	 	Royalty Rate (R)

	[***]
 
	 	[***]
	 	For [***]

annual [***] of

Beverages

incorporating

Product

Compounds

[***]
	 	For the volume

greater than

[***] of

Beverages

incorporating

Product

Compounds

and less than

[***]
	 	For the volume

greater than

[***] of

Beverages

incorporating

Product

Compounds

[***]

	[***]	 	[***]	 	[***]	 	[***]	 	[***]
	[***]	 	[***]	 	[***]	 	[***]	 	[***]
	[***]	 	[***]	 	[***]	 	[***]	 	[***]
	[***]	 	[***]	 	[***]	 	[***]	 	[***]

        To
determine the [***], the parties will use the following equation: 

	[***]
	

	[***]
	 = the royalty rate from the above table, for the applicable  [***].

	[***]
	= [***] for the applicable  [***], obtained from a mutually agreeable
[***] in the
relevant countries on the last business day of the [***] of the  [***], representing a [***], adjusted for
any  [***] as a result of the use of the [***] on a per  [***] basis [***]
. The parties will agree on the
applicable [***] from the Effective Date. If either party determines that there is a material difference between  [***] and the [***]
, then such party may engage, at its
own expense, an independent auditor, whose selection will be subject to the other party's approval, which will not be unreasonably withheld, to determine  [***]. The independent auditor will communicate
the necessary adjustment, if any, for the  [***] to the parties.

	[***]
	= the percentage of [***]. 

8

 

	[***]
	 = actual cost of [***] plus the
actual net cost of [***] on a [***], to be mutually
agreed to by the parties [***]. 

        As
the number of [***] incorporating a Product Compound increases above  [***] but is below [***], the royalty
rate would change
as indicated in the above table; provided, however, that the new royalty rate would only be used to calculate the [***] for the  [***] incorporating a
Product Compound above [***] and
below [***]. Likewise as the number of [***]
incorporating a Product Compound increases above [***], the royalty rate will change as indicated in the above table  [***]; provided, however, that this
new royalty rate  [***] will only be used to calculate the [***] for the  [***]. The total [***] would be the  [***] of the [***] calculated using each royalty rate. 

        For
the achievement of an [***] (i.e., one which is not shown on the above table), the parties will use the actual  [***], multiplied by a royalty rate
[***] from the next  [***] and the next [***] on the table above. If the  [***]
is [***], the parties will use the actual  [***] the applicable [***] royalty rate.

        For
Beverages incorporating Product Compounds sold by KO, its Affiliates and Bottlers where in the Product Compound is a KO Related Compound, the royalties calculated in this
Section 9.4 will be [***]. 

        9.5    Minimum Annual Royalties    

        9.5.1    Minimum Annual Royalties for Product Compounds having a
[***]    

        During
the Commercialization Period, KO will pay minimum annual royalties to SENOMYX to maintain the exclusive license under Section 10.4: 

	a)
	[***] for the first 12 months of the Commercialization Period;

	b)
	[***] for the next 12 months;

	c)
	[***] for the next 12 months;

	d)
	[***] for the next 12 months; and

	e)
	[***] for each of the next 12-month periods. 

        The
amount due for any such 12 month period is the [***] is payable  [***] after the end of any 12-month period. The amounts paid for  [***]. 

        9.5.2    Minimum Annual Royalties for Product Compounds having
[***]    

        During
the Commercialization Period, KO will pay [***] royalties to SENOMYX to maintain the exclusive license
under Section 10.4: 

        a)    [***] for the first 12 months of the Commercialization Period; 

        b)    [***] for the next 12 months; 

        c)     [***] for the next 12 months; 

        d)    [***] for the next 12 months; and 

        e)    [***] for each of the next 12-month periods. 

9

 

        The
amount due for any such [***] period is the  [***] is payable [***] after the end of any
12-month period. The amounts paid for [***] any amounts due SENOMYX for royalties over the  [***] royalties in the subsequent [***]
. 

        9.5.3    Minimum Royalties where two Product Compounds are Used    

        If
KO is selling Beverages or Beverage Bases incorporating more than one Product Compound, then the applicable minimum royalty will be the minimum royalty for the Product Compound having
the greater enhancing effect. 

        9.6    Adjustment of Values for Minimum Royalties    

        The
minimum annual royalty values in Section 9.5.1 e) and 9.5.2 e) will be [***] for the  [***] of the Commercialization Period and beyond, for:
(i) [***] using the [***], using the first year
of Commercialization Period as the base year; and, (ii) [***] using the  [***] year of the Commercialization Period as the base year. 

        9.7    Payment Terms    

        9.7.1    Timing    

        As
set forth in this Agreement, the royalties will be paid within [***] after the end of each calendar quarter
period in which such royalties are earned during the Commercialization Period for each Beverage and Beverage Base incorporating a Product Compound. The Royalty Shortfall will be paid within  [***] after
the end of each Calendar Year. 

        9.7.2    Reporting    

        With
each such quarterly payment, KO will furnish to SENOMYX a royalty statement in sufficient detail to permit confirmation of the accuracy of the royalty payment made, which sets forth
on a country-by-country basis the relevant sales information, including: 

          i.)  the
total number of Unit Cases of each such Beverage incorporating Product Compound sold; 

         ii.)  the
SP, the PSR; 

        iii.)  the
Cost; 

         iv.)  the
royalty rate (R); 

          v.)  the
Net Sales, if applicable; 

         vi.)  the
royalties payable in United States dollars; 

       vii.)  the
method used to calculate the royalty payment; 

      viii.)  the
exchange rate used; and 

         ix.)  other
information employed to calculate the royalty payment for such Beverage incorporating Product Compound. 

10

           9.8    Currency of Payment    

        All
payments to be made under this Agreement, including the royalties payable to SENOMYX by KO, will be paid in United States dollars by wire transfer (or other means acceptable to
SENOMYX) to a bank account designated by SENOMYX. 

        With
respect to each quarter, for countries other than the United States, whenever conversion of Cost, SP, Net Sales, or payments from any foreign currency are required, such conversion
will be made at the rate of exchange reported in The Wall Street Journal on the last business day of the applicable reporting period. 

        9.9    Taxes Withheld    

        Any
income or other tax that KO, or any of its Affiliates or sublicensees are required by a government agency to withhold and pay on behalf of SENOMYX with respect to the royalties
payable under this Agreement will be deducted from and offset against such royalties prior to remittance to SENOMYX. KO will give or cause to be given to SENOMYX such assistance as may reasonably be
necessary to enable SENOMYX to claim exemption from, or credit for, the tax so deducted, and, in each case, will promptly furnish to SENOMYX proper evidence of the taxes paid on SENOMYX's behalf. 

        9.10    Late Payment    

        In
the event that any payment, including royalty payments, due hereunder is not made when due, the payment will accrue interest from that date due at the rate of  [***] percent per month; provided, however,
that in no event will such rate exceed the maximum legal annual interest rate. The
payment of such interest will not limit SENOMYX from exercising any other rights it may have as a consequence of the lateness of any payment. 

        9.11    Records of Unit Sales, Net Sales and Royalty Calculations    

        9.11.1    Records Relating to Royalties    

        KO
will keep complete and accurate records of sales and all other information necessary to calculate royalties due to SENOMYX for any Beverage or Beverage Base incorporating a Product
Compound. The records will be maintained during the Commercialization Period and for a period of 3 years thereafter. The records will be in sufficient detail to allow the accrued royalties to
be determined accurately in accordance with United States generally accepted accounting principles and to verify the royalty payments pursuant to Section 9.4. 

        9.11.2    Audit of Records Relating to Royalties    

        SENOMYX,
with reasonable written notice to KO, will have the right to cause SENOMYX's nationally recognized independent, certified public accountant to audit such records at the place or
places of business where such records are customarily kept in order to verify the accuracy of the reports of royalty payments. Such accountant must execute a confidentiality agreement prior to
entering KO's premises, obligating such accountant to keep all information disclosed to it confidential and will only be permitted to disclose to SENOMYX the extent of any discrepancy between royalty
payments made by KO under this Agreement and the actual royalty required to be so paid. SENOMYX will bear the full cost of such audit unless such audit discloses an underpayment of more than  [***]
percent from the amount of the royalties due under this Agreement, in which event, KO will bear the full cost of such
audit. In all events, KO will pay any underpayment with interest in accordance with Section 9.10. Any overpayment made by KO will be refunded to KO. 

        SENOMYX
agrees not to disclose Confidential Information concerning royalty payments reports, and all other information learned in the course of an audit or inspection, except to the 

11

 

extent
necessary for SENOMYX to enforce its rights under this Agreement or if disclosure is required by law. 

10.   GRANTS  

        Subject to the terms and conditions of this Agreement, SENOMYX hereby grants to KO and KO hereby grants to SENOMYX the following rights, as of the later of
30 days after execution of this Agreement or of the expiration of the waiting period under the Hart Scott Rodino Act, if any notification and report under the Act is required: 

        10.1    Non-exclusive Grant by SENOMYX of Rights Regarding Evaluation of Enhancing Compounds    

        10.1.1    In Field I    

        SENOMYX
hereby grants to KO a perpetual, nontransferable, non-exclusive, worldwide license under the Target IP to use Enhancing Compound(s) for evaluation in Field I. 

        10.1.2    In Field II    

        SENOMYX
hereby grants to KO a perpetual, nontransferable, non-exclusive, worldwide license under the Target IP to use Enhancing Compound(s) solely for evaluation in Field II. 

        All
rights granted by SENOMYX to KO under this Section will be subject to timely payment by KO of all payments under this Agreement. 

        10.2    Non-exclusive Grant by SENOMYX of Rights to Make and Have Made Selected Compounds    

        SENOMYX
hereby grants KO a perpetual, nontransferable, non-exclusive, worldwide license under the Target IP to make and have made Selected Compounds for use by KO and its
Affiliates in Beverages and Beverage Bases in the Fields. 

        All
rights granted by SENOMYX to KO under this Section will be subject to timely payment by KO of all payments under this Agreement. 

        10.3    Non-Exclusive Grant of Rights by SENOMYX to Make, Have Made, Use and Sell Beverages and Beverage Bases with Selected
Compound    

        SENOMYX
hereby grants to KO a perpetual, nontransferable, non-exclusive worldwide license under Target IP to make, have made, use and sell, Beverages and Beverage Bases that
incorporate Selected Compounds in Field I. 

        All
rights granted by SENOMYX to KO under this Section will be subject to timely payment by KO of all payments under this Agreement. 

        10.4    Exclusive Grant of Rights by SENOMYX Regarding Selected Compounds and Beverages and Beverage Bases that Incorporate Selected
Compounds    

        SENOMYX
hereby grants to KO a perpetual, nontransferable exclusive worldwide license under Target IP to make, have made, use and sell Beverages and Beverage Bases that incorporate
Selected Compounds in Field I. 

        The
license will include the right to sublicense the use and sale of Product Compounds to be embodied in a Competitive Product in Field I. The license will include the right to
sublicense the use and sale of one Selected Compound (that is not a Product Compound) to be embodied in a Competitive Product in Field I, with the prior written consent of SENOMYX which will not be
unreasonably withheld. 

12

 

        All
rights granted by SENOMYX to KO under this Section will be subject to timely payment by KO of all payments under this Agreement. 

        10.5    Co-Exclusive Grant of Rights by SENOMYX Regarding Selected Compounds and [***] Beverage Bases incorporating
Selected Compounds    

        SENOMYX
hereby grants to KO a perpetual, nontransferable co-exclusive, (only one other licensee) with respect to one other Third Party, worldwide license under Target IP to
make, have made, use and sell [***] Beverage Bases incorporating Selected Compounds in Field II. 

        All
rights granted by SENOMYX to KO under this Section will be subject to timely payment by KO of all payments under this Agreement. 

        10.6    Contingent Third Party Rights to Field II    

        SENOMYX
has existing collaborations with a Third Party for the discovery of molecules that modify taste, other than Enhancer Compounds, for products in Field II. SENOMYX agrees to use
best efforts for a period of [***] following the Effective Date to amend such collaboration agreement to include the discovery
of [***] for use in Field II. The rights granted to KO in Field II are contingent on the rights granted to such Third Party
under the amended collaboration. 

        10.7    Limitation on Licenses    

        None
of the rights granted hereunder are intended to give KO the right to sell Enhancing Compounds, Selected Compounds or Product Compounds. The foregoing does not prevent KO from
supplying Product Compounds to a sublicensee pursuant to a sublicense. 

        10.8    If KO Does Not Pay Minimum Royalties    

        If
at the end of any Calendar Year the royalties paid by KO to SENOMYX for such Calendar Year, as provided for under Section 9.4, are less than the minimum royalties due under
Section 9.5 for such Calendar Year, and KO does not pay SENOMYX the corresponding Royalty Shortfall for such year, then: 

        10.8.1    KO's exclusive license under Section 10.4 will terminate; 

        10.8.2    SENOMYX's obligations under Section 8.1, Section 8.2, Section 8.3 and Section 8.5 will
terminate; 

        10.8.3    KO's co-exclusive license under Section 10.5 will continue in effect until SENOMYX, in its sole
discretion, notifies KO that it will become non-exclusive; 

        10.8.4    KO's non-exclusive license under Section 10.2 will continue in effect; and 

        10.8.5    KO's non-exclusive license under Section 10.3 will continue in effect. 

        The
non-exclusive license will be subject to the royalties provided for under Section 9.4, but not subject to the minimum annual royalties obligation under
Section 9.5. 

        10.9    Most Favored Licensee    

        In
the event that [***], SENOMYX will  [***]. 

        10.10    Obligations Related to Sublicenses    

        KO
will have the right to grant sublicenses under this Section 10.10 to Third Parties, Affiliates, and Bottlers. In respect of sublicenses to Third Parties; such rights granted
will be contingent on: 

          (i)  KO
obtaining sublicensing terms, including royalty obligations [***]; and 

         (ii)  KO
receiving [***]. 

13

 

        Sublicenses
granted by KO would be subject to SENOMYX receiving at least the same obligations, including royalties, as SENOMYX would receive under this Agreement
("Obligated Royalties"). Payments received by KO from any party under such sublicense, other than an Affiliate or Bottlers,  [***] the amount of
[***]. Any payments paid to KO by
its sublicensees, other than under sublicenses to Affiliates and Bottlers for Beverages and Beverage Bases, [***] the amount of  [***] would be [***]. KO would be liable for the royalty
payments to SENOMYX due by any sublicensee. 

        All
rights granted by KO to sublicensees under this Section will be subject to KO's diligence obligations under this Agreement, the timely payment by KO of all payments under this
Section and compliance with other obligations in the sublicense agreement. 

        10.11    Non-exclusive Grant of Rights from KO to SENOMYX for Research Purposes    

        KO
hereby grants to SENOMYX a royalty free, non-exclusive, worldwide license to use the KO Technology for research purposes under this Agreement, with the right to grant
sublicenses for research purposes; provided, however, that any such sublicense shall be subject to the prior written approval of KO, which shall not be unreasonably withheld. 

        10.12    Non-exclusive Grant of Rights from KO to SENOMYX for KO Related Compounds    

        KO
hereby grants to SENOMYX a fully paid, perpetual, exclusive, worldwide license, to make and have made KO Related Compounds, with the right to sublicense outside the Fields. 

        10.13    Exclusive Grant of Rights from KO to SENOMYX for KO Related Compounds    

        KO
hereby grants to SENOMYX a fully paid, exclusive, worldwide, fully-transferable license, to use, sell, offer for sale, have sold, import and export KO Related Compounds outside the
Fields. 

        10.14    Non-Exclusive Grant of Rights to SENOMYX Trademark    

        Subject
to the terms and conditions of the Agreement, SENOMYX hereby grants to KO a non-exclusive, nontransferable worldwide license to use the trademark of SENOMYX
("Trademark") during the Term solely in connection with the marketing and sale of the 

        Beverages
incorporating Product Compounds; provided, however, that: (i) KO must comply with all applicable laws and regulations with respect to the Trademark and must not do or
suffer to be done any act or thing that would impair SENOMYX's rights; and (ii) KO agrees not to adopt or use any other trademark, words or symbol that features or includes the word SENOMYX or
any marks which are confusingly similar to the Trademark. 

11.   OWNERSHIP OF INTELLECTUAL PROPERTY  

        11.1    Transfer of Rights    

        SENOMYX
retains all rights not expressly licensed or assigned in this Agreement. Except as otherwise expressly provided in this Agreement, nothing in this Agreement is intended to convey
or transfer ownership or the grant of any license or sublicense by one party to the other party of any rights in any Confidential Information, Patent Rights or Know-How Controlled by a
party. 

        11.2    SENOMYX Inventions    

        SENOMYX
will own all Inventions and other Know-How made solely by its employees and agents and all Patent Rights claiming such Inventions and Know-How; provided,
however, SENOMYX hereby irrevocably assigns to KO all interest in and to any such Inventions and Know-How that consist solely of improvements to KO technology, including but not limited to
the KO Compound and KO Related Compounds, and all Patent Rights claiming such Inventions and other Know-How. SENOMYX agrees to give KO prompt notice of the making, conceiving or reducing
to practice of any such Invention. In the event that SENOMYX is legally unable to assign such rights to KO, then SENOMYX agrees either 

14

 

to
waive the enforcement of such rights against KO and any sublicensees and assignees, or to grant KO an exclusive, irrevocable, perpetual, worldwide, fully-paid license, with right to
sublicense through multiple tiers of sublicense, to such rights. 

        11.3    KO Inventions    

        KO
will own all Inventions and other Know-How made solely by its employees and agents, including those related to product formulations,  [***] and [***], and
all Patent Rights claiming such
Inventions and Know-How, and SENOMYX will have no rights to such Inventions, Know-How and product formulations. 

        KO
hereby irrevocably assigns to SENOMYX all interest in and to any such Inventions and other Know-How that consist solely of improvements to SENOMYX Technology, Enhancing
Compounds, or Selected Compounds, and all Patent Rights claiming such Inventions and Know-How. KO agrees to give SENOMYX prompt notice of the making, conceiving or reducing to practice of
any such Invention. In the event that KO is legally unable to assign such rights to SENOMYX, then KO agrees either to waive the enforcement of such rights against SENOMYX and any sublicensees and
assignees, or to grant SENOMYX an exclusive, irrevocable, perpetual, worldwide,
fully-paid license, with right to sublicense through multiple tiers of sublicense, to such rights. 

        11.4    Joint Inventions    

        All
Inventions conceived jointly by employees or agents of SENOMYX and employees or agents of KO (the "Joint Inventions") and all Joint
Patent Rights will be owned jointly by KO and SENOMYX. 

        KO
hereby irrevocably assigns to SENOMYX all interest in and to any Joint Inventions that consist of improvement to SENOMYX Technology, Enhancing Compounds, or Selected Compounds and
uses thereof, and all Joint Patent Rights claiming such Joint Inventions. In the event that KO is legally unable to assign such rights to SENOMYX, then KO agrees either to waive the enforcement of
such rights against SENOMYX and any sublicensees and assignees, or to grant SENOMYX an exclusive, irrevocable, perpetual, worldwide, fully-paid license, with right to sublicense through
multiple tiers of sublicense, to such rights. 

        SENOMYX
hereby irrevocably assigns to KO all interest in and to any Joint Inventions that consist of improvement to KO Technology, including any improvements to KO Technology relating to
beverage product formulations and uses thereof, and all Joint Patent Rights claiming such Joint Inventions. In the event that SENOMYX is legally unable to assign such rights to KO, then SENOMYX agrees
either to waive the enforcement of such rights against KO and any sublicensees and assignees, or to grant KO an exclusive, irrevocable, perpetual, worldwide, fully-paid license, with right
to sublicense through multiple tiers of sublicense, to such rights. 

        11.5    Other Inventions    

        Any
Inventions not included in Sections 11.2, 11.3, or 11.4 will be owned by their inventors. 

        11.6    Markings    

        KO
agrees to mark and to cause any Affiliate or sublicensee to mark any Beverage or Beverage Base (or their containers or labels) made, sold or otherwise disposed of by it or them with
any notice of Patent Rights if mutually desirable by the parties or necessary under applicable law to enable the SENOMYX Patent Rights or Joint Patent Rights, as applicable, to be enforced to their
full extent in any country where Beverages and Beverage Bases incorporating Product Compounds are made, used, or sold. In addition, KO agrees to mark and to cause any Affiliate or sublicensee to mark
any Beverages and Beverage Bases incorporating Product Compounds (or their containers or labels) made, sold or otherwise disposed of by it or them with a SENOMYX trademark if desirable by KO. 

15

           11.7    Inventorship and Assignment    

        United
States patent law will determine inventorship of patentable inventions. SENOMYX and KO agree to execute all documentation necessary to perfect all assignments of Inventions,
Know-How and Patent Rights contemplated in this Agreement. 

12.   PATENT PROSECUTION AND MAINTENANCE  

        12.1    Prosecution of Patents    

        Each
party will bear the cost of filing and prosecuting the patents and patent applications associated with inventions owned or assigned to that party. SENOMYX will bear the cost of
filing and prosecuting the patents and patent applications in the U.S. and PCT for the first Selected Compound. KO will reimburse SENOMYX for the reasonable out-of-pocket costs
for the prosecution of all national phase applications of all countries selected in the PCT application, and all maintenance fees and annuities for any patents issuing from those applications. The
Steering Committee will make recommendations on additional patent applications to be filed. In addition, KO would agree to pay the cost of all patents and patent applications for additional Selected
Compounds up to [***] per year for each such additional Selected Compound. KO would no longer have to pay for patent
applications, maintenance fees and annuities if the license granted under Section 10.4 were terminated. SENOMYX will keep KO fully apprised of all proceedings related to the patent applications
and patents for Selected Compounds. If KO determines that continuing prosecution of an application, or the continuation of payment of maintenance fees and annuities is not warranted, KO will notify
SENOMYX in writing within [***] of the date it wishes to discontinue prosecution of a patent, and the obligation to pay for such
costs incurred after notification would end. 

        12.2    Inventions under Collaboration    

        The
control and expense of the filing, prosecution and maintenance of any Patent Rights or other intellectual property rights claiming Inventions that are not covered under
section 11.1 will be as follows: 

        12.2.1    Prosecution of Sole Inventions    

        The
control and expense of the filing, prosecution (including an opposition or interference) and maintenance of Patent Rights or other intellectual property rights claiming Inventions
that are made solely by a party will be the sole responsibility of the party that made such Invention, and the party not filing the patent application will cooperate in such filing, prosecution and
maintenance. 

        12.2.2    Prosecution of Joint Inventions    

        SENOMYX
will have the first right to file, prosecute (including an opposition or interference) and maintain Joint Patent Rights or other intellectual property rights claiming Inventions
that are made jointly by the parties. KO will cooperate in, the filing, prosecution and maintenance of Joint Patent Rights and will share equally in the expenses incurred with respect thereto. 

13.   INTELLECTUAL PROPERTY ENFORCEMENT AND DEFENSE OF CLAIMS  

        13.1    Defense of Infringement Claims for SENOMYX Technology    

        KO
will cooperate with SENOMYX, at SENOMYX's expense, in the defense of any suit, action or proceeding against SENOMYX or SENOMYX's Affiliates alleging the infringement of the
intellectual property rights of a Third Party due to SENOMYX's use of any SENOMYX Technology under this Agreement. 

16

 

        The
parties must notify each other promptly in writing of the commencement of any such suit, action, proceeding or claim of infringement. 

        SENOMYX
will have full and sole authority, information and assistance necessary to defend, hire counsel, make decisions or settle on any terms, any such suit, action or proceeding and KO
will in good faith execute all documents, provide pertinent records, and take all other actions, including requiring persons within its control to give testimony, which may be reasonably required in
connection with the defense or settlement of such litigation. 

        With
respect to Target IP, if SENOMYX does not commence a particular infringement action within [***] of receiving
notice, KO, after notifying SENOMYX in writing, will be entitled to bring such infringement action or any other appropriate action or claim at its own expense. The party conducting such action will
consider in good faith the other party's comments on the conduct of such action and will have full and sole authority, information and assistance necessary to defend, hire counsel, make decisions or
settle on any terms, any such suit, action or proceeding and the other party will in good faith execute all documents, provide pertinent records, and take all other actions, including requiring
persons within its control to give testimony, which may be reasonably required in connection with the defense or settlement of such litigation. SENOMYX will be entitled to  [***] based on a [***] basis. The party conducting the
action will have the right to deduct all court costs it pays for such enforcement from any recovery from any settlement or judgment that is attributable to the losses of the other party under such
action. 

        13.2    Defense of Infringement Claims for KO Technology    

        SENOMYX
will cooperate with KO, at KO's expense, in the defense of any suit, action or proceeding against SENOMYX or KO alleging the infringement of the intellectual property rights of a
Third Party due to KO's or SENOMYX's use of any KO technology licensed to SENOMYX under this Agreement. The parties must notify each other promptly in writing of the commencement of any such suit,
action, proceeding or claim of infringement. At the expense of KO, SENOMYX will give to KO full and sole authority, information and assistance necessary to defend, hire counsel, make decisions or
settle on any terms, any such suit, action or proceeding and KO will execute all documents, provide pertinent records, and take all other actions, including requiring persons within its control to
give testimony, which may be reasonably required in connection with the defense or settlement of such litigation. 

14.   TREATMENT OF CONFIDENTIAL INFORMATION: REPORTING REQUIREMENTS, PUBLICITY, LAW AND REGULATIONS  

        14.1    Confidentiality    

        Subject
to the terms and conditions of this Agreement, SENOMYX and KO each agree that, during the Term and for a period of  [***] years thereafter, it will keep confidential, and will cause its Affiliates to
keep confidential, all Confidential
Information that is disclosed to it or to any of its Affiliates by the other party. Neither SENOMYX nor KO nor any of their respective Affiliates will use the other party's Confidential Information
except as expressly permitted in this Agreement. 

        14.2    Disclosure to Related Parties    

        SENOMYX
and KO each agree that any disclosure of the other party's Confidential Information to any officer, employee, contractor, consultant, sublicensee or agent of the other party or
to any of its Affiliates: 

           i)  will
be made only if and to the extent necessary to carry out its responsibilities under this Agreement and to exercise the rights granted hereunder; 

          ii)  will
be limited to the extent consistent with such responsibilities and rights; and 

17

 

         iii)  will
be provided only to such persons or entities who are under an obligation of confidentiality no less stringent than as set forth in this Agreement. 

        Each
party will use reasonable efforts to take such action, and to cause its Affiliates to take such action, to preserve the confidentiality of each other's Confidential Information,
which will be the same efforts as it would customarily take to preserve the confidentiality of its own similar Confidential Information. 

        14.3    Return of Confidential Material    

        Upon
termination of this Agreement, each party, upon the other party's request, will return or destroy all Confidential Information received from the other party pursuant to this
Agreement, including all copies and extracts of documents, within 30 days of the request of the other party; provided, however,
one copy of the Confidential Information may be retained in a secure location with limited access for legal purposes only. 

        14.4    Exceptions to Confidential Information    

        Confidential
Information will not include any information, which the receiving party can prove by competent written evidence: 

           i)  is
now, or hereafter becomes, through no act or failure to act on the part of the receiving party, generally known or available to the public; 

          ii)  is
known by the receiving party at the time of receiving such information, as evidenced by its records; 

         iii)  is
hereafter furnished to the receiving party without restriction as to disclosure or use by a Third Party lawfully entitled to furnish such information; 

          iv)  is
independently developed by the employees, agents or contractors of the receiving party without the aid, application or use of the disclosing party's Confidential
Information; or 

           v)  is
the subject of a written permission to disclose provided by the disclosing party. 

        A
party may also disclose Confidential Information of the other party where required to do so by law or legal process; provided, however, that, in such event, the party required to
disclose such information must give advance written notice of such disclosure to the other party and must cooperate with the other party's efforts to seek, at the request and expense of the other
party, all confidential treatment and protection for such disclosure as is permitted by applicable law. 

        14.5    Confidential Financial Information    

        The
parties agree that the material financial terms of this Agreement will be considered Confidential Information of both parties. Notwithstanding the foregoing, either party may
disclose such terms in legal proceedings or as are required to be disclosed in its financial statements, by law, or under an obligation of confidentiality to bona fide potential sublicensees. Either
party will have the further right to disclose the material financial terms of this Agreement under an obligation of confidentiality to any
potential acquirer, merger partner, bank, venture capital firm, or other financial institution to obtain financing. 

        14.6    Confidential Research Information    

        The
parties agree that all results and data generated from the research under the Collaborative R&D Program will be owned exclusively by SENOMYX and considered Confidential Information
of SENOMYX subject to the confidentiality requirements of Section 14. KO will not provide to a Third Party any Materials provided by SENOMYX to KO. 

18

 

        14.7    Permitted Use and Disclosures    

        Each
party may use or disclose Confidential Information disclosed to it by the other party 

           i)  to
the extent such information is included in the KO Technology, SENOMYX Technology or Joint Patent Rights, and 

          ii)  to
the extent such use or disclosure is reasonably necessary and permitted in the exercise of the rights granted hereunder in: 

        a)    filing
or prosecuting patent applications; 

        b)    prosecuting
or defending litigation; 

        c)     complying
with applicable governmental regulations, or court orders or otherwise submitting information to tax or other governmental authorities; 

        d)    conducting
clinical trials; 

        e)    submitting
information for food additive approval applications; or 

        f)     making
a permitted sublicense or otherwise exercising rights expressly granted to the other party pursuant to the terms of this Agreement. 

        If
a party is required to make any such disclosure of the other party's Confidential Information, other than pursuant to a confidentiality agreement, it will give reasonable advance
notice of such disclosure to the other party where reasonably possible and, save to the extent inappropriate in the case of patent applications, will use its reasonable efforts to secure confidential
treatment of such Confidential Information in consultation with the other party prior to such disclosure (whether through protective orders or otherwise) and disclose only the minimum necessary to
comply with such requirements. 

        14.8    Use of Data for Promotional Purposes    

        Either
party may (i) make public statements regarding Enhancing Compounds, Selected Compounds, Product Compounds or Beverages incorporating Product Compounds by announcing the
achievement of milestones therefor, following consultation with the other party and with the written consent of the other party to the form and content of the public statement, and (ii) without
the prior consent of the other party, make public statements regarding the overall success rate(s) (excluding any competitively sensitive information of KO) achieved by and/or for its customers with
the use SENOMYX Technology; provided, however, that it may not disclose any chemical structures, screens or the other party's identity. 

        14.9    Publication of Results    

        Subject
to the express provisions of this Agreement, results and data obtained by either party in the course of the collaboration may be submitted for publication by SENOMYX in
accordance with SENOMYX's customary practices. SENOMYX will send a copy of the proposed publication to KO and will allow KO  [***] from the date of receipt for review, comment and reasonable approval.

        14.10    Publicity    

        Except
as required by law and as provided in this Agreement, neither party may make any public announcement or otherwise disclose the terms of this Agreement without the prior written
consent of the other party, which consent will not be unreasonably withheld. Notwithstanding the foregoing, the parties will agree upon a press release to announce the execution of this Agreement and
the material terms. Thereafter, KO and SENOMYX may each disclose to Third Parties the information contained in such press release without the need for further approval by the other party. 

19

 

        14.11    Reporting, Law and Regulation    

        Each
party will, within 30 days of the end of each quarterly Steering Committee meeting, report to the other a written summary of the results of the research and development work
it carries out, if any, under this Agreement. Each party agrees to prepare and exchange written and electronic reports concerning any results and data required by either party as supporting
information for any regulatory filings. In addition, SENOMYX will provide KO with its audited annual financials reports in a timely manner, subject to certain confidential information being redacted
therefrom. The exchange of such report may be reasonably supplemented, at the request of the party receiving the report, by correspondence and/or upon reasonable prior notice, visits to the other
party's facilities. While carrying out the obligations set forth in the Agreement, the parties will ensure compliance with all applicable laws and regulations, including, without limitation, all
environmental, competition and import and export laws and regulations. 

15.   TERM, EARLY CONCLUSION, AND TERMINATION  

        15.1    Term    

        The
term of this Agreement will begin on the Effective Date and will continue through the end of the Commercialization Period, unless terminated earlier in accordance with the provisions
of Section 15.3, or 15.4 hereof (the "Term"). 

        15.2    Early Conclusion of the Collaborative R&D Period by KO    

        KO
may conclude the Collaborative R&D Program prior to the end of the Collaborative R&D Period, without cause by; 

          (i)  providing
SENOMYX with 60 days prior written notice, and 

         (ii)  paying
SENOMYX an early conclusion fee of [***]; 

provided,
however, if such written notice of early conclusion by KO occurs within the [***] of the Collaborative R&D Period, KO
will be obligated to pay the research funding in accordance with Section 9.1 for the [***]. KO's obligations for research
funding for the remainder of the Collaborative R&D Period under Section 9.1 will cease. In the event that KO notifies SENOMYX of early conclusion, the rights and obligations provided for under
Section 8.1, 8.2, 8.3, and 8.5, the licenses granted under Section 10.4, and 10.5 and the [***] provision under
10.9 will all terminate. 

        15.3    Termination By Mutual Agreement    

        The
parties may terminate this Agreement at any time, in whole or in part, by mutual written agreement executed by both parties. 

        15.4    Termination By KO for Acquisition of SENOMYX By a KO Competitor    

        KO
may terminate this Agreement due to the merger or consolidation of SENOMYX by a KO Competitor. 

        15.5    Effect of Termination    

        Upon
termination of this Agreement pursuant to Section 15.3 or Section 15.4, KO will have no right to practice the Target IP or use the Target IP and all rights, title and
interest in and to the Target IP will revert to and become the sole property of SENOMYX. 

        Expiration
or termination of this Agreement will not relieve the parties of any obligation accruing before such expiration or termination. 

20

           15.6    Survival    

        The
obligations and rights of the parties under Section 6.3 (ii), Section 9.11, Section 11, Section 14, Section 15.5, Section 15.6,
Section 16, and Section 17 and Appendix A, will survive termination or expiration of this Agreement. 

16.   WARRANTIES AND INDEMNIFICATION  

        16.1    Mutual Representations and Warranties    

        The
parties make the following representations and warranties to each other: 

        16.2    Corporate Power    

        Each
party hereby represents and warrants that, to the best of its knowledge, as of the Effective Date, such party: 

          (i)  is
duly organized, validly existing under the laws of the state of its incorporation, and in good standing; 

         (ii)  has
all requisite corporate power and authority and the legal right to own and operate its property and assets, to lease the property and assets it operates under
lease, and to carry on its business as it is now being conducted; and 

        (iii)  is
in compliance with all requirements of applicable law, except to the extent that any noncompliance would not have a material adverse effect on its ability to
perform its obligations under this Agreement. 

        16.3    Due Authorization    

        Each
party hereby represents and warrants that, to the best of its knowledge, as of the Effective Date, such party: 

          (i)  has
the requisite corporate power and authority and the legal right to execute and deliver this Agreement and to perform its obligations hereunder; 

         (ii)  has
taken all necessary action on its part to authorize the execution and delivery of this Agreement, the performance of its obligations hereunder and the grant of
rights extended by it hereunder, and no action or corporate procedure is necessary to authorize this Agreement, the performance of its obligations hereunder or the grant of rights extended hereunder. 

        16.4    Binding Agreement    

        Each
party hereby represents and warrants to the other that, to the best of its knowledge, as of the Effective Date: 

          (i)  this
Agreement has been duly executed and delivered on its behalf and is a legal and valid obligation binding upon it and is enforceable in accordance with its terms; 

         (ii)  the
execution, delivery and performance of this Agreement by such party does not conflict with any agreement, instrument or understanding, oral or written, to which it
is a party or by which it may be bound, nor violate any law or regulation of any court, governmental body or administrative or other agency having authority over it; and 

        (iii)  all
necessary consents, approvals and authorizations of all governmental authorities and other persons required to be obtained by it in connection with the Agreement
have been obtained. 

21

 

        16.5    Warranties Regarding SENOMYX Technology    

        SENOMYX
warrants to KO as of the Effective Date the following: 

        16.5.1    SENOMYX Express Warranties    

        As
of the Effective Date: 

          (i)  To
the best of SENOMYX's knowledge, SENOMYX has the lawful right to license the SENOMYX Technology to KO in accordance with the terms of this Agreement; 

         (ii)  SENOMYX
is not precluded under any license or other agreement with a Third Party from entering into this Agreement and granting the rights to KO provided hereunder; 

        (iii)  To
the best of SENOMYX's knowledge, the activities to be performed by SENOMYX under this Agreement will not infringe any patents, copyrights, trademarks or other right
of a third party; and 

        (iv)  SENOMYX
has not been served with a Third Party suit relating to the SENOMYX Patent Rights. 

        16.5.2    SENOMYX Disclaimer    

        EXCEPT
AS EXPRESSLY SET FORTH IN THIS AGREEMENT, SENOMYX (INCLUDING ITS OFFICERS, EMPLOYEES AND AGENTS) EXPRESSLY DISCLAIMS ANY FURTHER REPRESENTATIONS AND WARRANTIES, WHETHER EXPRESS OR
IMPLIED, RELATING TO SENOMYX TECHNOLOGY; INCLUDING ANY EXPRESS OR IMPLIED WARRANTY 

          (i)  OF
MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OF SENOMYX TECHNOLOGY OR SENOMYX PATENT RIGHTS; AND 

         (ii)  THAT
THE PRACTICE OF SENOMYX TECHNOLOGY WILL NOT INFRINGE A PATENT, COPYRIGHT, TRADEMARK OR OTHER RIGHT OF A THIRD PARTY; AND 

        (iii)  REGARDING
THE PATENTABILITY OF ANY SENOMYX TECHNOLOGY, INCLUDING SENOMYX TECHNOLOGY CLAIMED IN PATENT APPLICATIONS AS PART OF SENOMYX PATENT RIGHTS. 

        16.5.3    SENOMYX Indemnification.    

        SENOMYX
hereby agrees to defend and indemnify KO, and its respective officers, directors, employees, agents, Affiliates, and Bottlers (collectively, the "KO
Indemnitees") from and against all damages or other amounts payable to a Third Party, including reasonable attorneys' fees and costs of litigation, resulting from a claim,
demand, action, suit or other proceeding brought or threatened by a Third Party against a KO Indemnitee based on SENOMYX's negligence or willful misconduct (but not patent infringement) including but
not limited to, product liability claims arising out of any tests conducted solely by SENOMYX on any compounds and any environmental claims against KO Indeminitees relating to SENOMYX's performance or
failure to perform under this Agreement. IN NO EVENT WILL SENOMYX BE LIABLE FOR ANY INCIDENTAL OR CONSEQUENTIAL DAMAGES SUFFERED BY KO RESULTING FROM THIS AGREEMENT. 

22

 

        16.6    Warranties Relating to KO Technology    

        KO
represents and warrants to SENOMYX as of the Effective Date the following: 

        16.6.1    KO Express Warranties    

        As
of the Effective Date: 

          (i)  To
the best of KO's knowledge KO has the lawful right to license (or sublicense, as the case may be) the KO Technology to SENOMYX in accordance with the terms of this
Agreement; (except as set forth in Appendix E); 

         (ii)  KO
is not precluded under any license or other agreement with a Third Party from entering into this Agreement and granting the rights to SENOMYX provided hereunder; 

        (iii)  To
the best of KO's knowledge, the activities to be performed by KO under this Agreement will not infringe any patents, copyrights, trademarks or other right of a
third party; and 

        (iv)  KO
has not been served with a Third Party suit relating to the KO Patent Rights. 

        16.6.2    KO Disclaimer    

        EXCEPT
AS EXPRESSLY SET FORTH IN THIS AGREEMENT, KO (INCLUDING ITS OFFICERS, EMPLOYEES AND AGENTS) EXPRESSLY DISCLAIMS ANY FURTHER REPRESENTATIONS AND WARRANTIES OF ANY KIND, WHETHER
EXPRESS OR IMPLIED, RELATING TO KO TECHNOLOGY: INCLUDINGANY EXPRESS OR IMPLIED WARRANTY 

          (i)  OF
MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OF KO TECHNOLOGY OR KO PATENT RIGHTS; AND 

         (ii)  THAT
THE PRACTICE OF KO TECHNOLOGY WILL NOT INFRINGE A PATENT, COPYRIGHT, TRADEMARK, OR OTHER RIGHT OF A THIRD PARTY; AND 

        (iii)  REGARDING
THE PATENTABILITY OF ANY KO TECHNOLOGY, INCLUDING KO TECHNOLOGY CLAIMED IN PATENT APPLICATIONS AS PART OF KO PATENT RIGHTS. 

        16.6.3    KO Indemnification    

        KO
hereby agrees to defend and indemnify SENOMYX, and its respective officers, directors, employees and agents (collectively, the "SENOMYX
Indemnitees") from and against all damages or other amounts payable to a Third Party, including reasonable attorneys' fees and costs of litigation,
resulting from a claim, demand, action, suit or other proceeding brought or threatened by a Third Party against a SENOMYX Indemnitee based on 

          (i)  SENOMYX's
negligence or willful misconduct (but not patent infringement) including but not limited to, product liability claims arising out of any tests conducted
solely by KO on any compounds and any environmental claims against SENOMYX Indeminitees relating to KO's performance or failure to perform under this Agreement; 

         (ii)  any
development, manufacture, use, handling, storage, sale, or other disposition of a Selected Compound, Product Compound by or through KO or its Affiliates or its
permitted sublicensees; 

        (iii)  a
product liability claim on any Beverage or Beverage Base incorporating Product Compounds; 

        (iv)  the
practice by KO of any license granted hereunder; or 

23

 

         (v)  infringement
by KO of Patent Rights of any Third Party; 

        except
to the extent such damages or other amounts payable are attributable to: 

        (a)   a
violation of any contractual or fiduciary duty owed by any SENOMYX Indemnitee to a Third Party; 

        (b)   any
breach of this Agreement by a SENOMYX Indemnitee or a misrepresentation by SENOMYX in this Agreement; or 

        (c)   trade
secret misappropriation or patent infringement by SENOMYX covered by a Third Party's trade secret or Patent Rights. 

        IN
NO EVENT WILL KO BE LIABLE FOR ANY INCIDENTAL OR CONSEQUENTIAL DAMAGES SUFFERED BY SENOMYX RESULTING FROM THE EXERCISE OF ANY RIGHTS GRANTED IN ACCORDANCE WITH THIS AGREEMENT. 

        16.6.4    KO Indemnification Of Certain SENOMYX Licensors    

        KO
hereby agrees to indemnify, defend and hold The Regents of the University of California, National Institutes of Health, and the Howard Hughes Medical Institute and its respective
officers, sponsors, directors, employees, and agents harmless from and against all damages or other amounts payable to a Third Party, including reasonable attorneys' fees and costs of litigation,
resulting or arising from the exercise of rights under the licenses granted from SENOMYX to KO provided for under Section 10 and pursuant to any agreement between The Regents of the University
of California and SENOMYX, including product liability. 

        16.6.5    For Certain KO Licensees or Sublicensees    

        KO
hereby agrees to indemnify, defend and hold SENOMYX Indemnitees and its respective officers, sponsors, directors, employees, and agents harmless from and against all damages or other
amounts payable to a Third Party, including reasonable attorneys' fees and costs of litigation, resulting or arising from the exercise of rights under the licenses granted from SENOMYX to KO for a
sublicense under Section 10.10. 

17.   MISCELLANEOUS  

        17.1    Force Majeure    

        Neither
party will lose any rights hereunder or be liable to the other party for damages or losses on account of failure of performance by the defaulting party (other than a payment
default) if the failure is occasioned by war, fire, explosion, flood, (e.g. El Niño), earthquake, strike, lockout, embargo, act of God, or any other similar cause beyond the control of
the defaulting party; provided, however, that the party claiming force majeure has exerted all reasonable efforts to avoid or remedy such force majeure and thereafter takes all reasonable steps to
mitigate any such delay in performance hereunder and any damages that may be incurred by the other party thereby. 

        17.2    Governing Law and Jurisdiction    

        This
Agreement will be governed by the laws of the State of Delaware, as such laws are applied to contracts entered into and to be performed entirely within such state. 

        17.3    Binding Effect    

        This
Agreement will be binding upon and inure to the benefit of the successors and permitted assigns of the parties. 

24

 

        17.4    Dispute Resolution    

        The
parties recognize that disputes as to certain matters may, from time to time, arise during the Term, which relate to either party's rights and/or obligations hereunder. It is the
objective of the parties to establish procedures to facilitate the resolution of disputes arising under this Agreement in an expedient manner by mutual cooperation and without resort to arbitration.
The parties agree that prior to any arbitration concerning this Agreement, SENOMYX's Chief Executive Officer and KO's president of Coca-Cola Ventures, or another Senior Vice President of
KO, will meet in person, or by video-conferencing and will use best efforts to resolve any disputes concerning this Agreement. 

        Within
30 days of a formal request by either party to the other party, either party may, by written notice to the other party, have such dispute referred to their respective
officers designated, or their successors, for attempted resolution by good faith negotiations, such good faith negotiations to begin within thirty days after such notice is received. Any dispute
arising out of or relating to this Agreement which is not resolved between the parties or the designated officers of the parties pursuant to this Section 17.4 will be resolved by final and
binding arbitration conducted in San Diego, California (unless the parties mutually agree to another location) in accordance with the rules of the American Arbitration Association. The arbitration
will be conducted by an arbitrator who is knowledgeable in the general subject matter at issue in the dispute. 

        The
parties will agree on the arbitrator and if they cannot agree, the arbitrator will be selected in accordance with the procedures of the American Arbitration Association. 

        In
conducting the arbitration, the arbitrator will 

          (i)  determine
what discovery will be permitted, consistent with the goal of limiting the cost and time which the parties must expend for discovery (and provided that the
arbitrators will permit such discovery they deem necessary to permit an equitable resolution of the dispute), 

         (ii)  ensure
that the total time of the arbitration from filing to a final decision or executed settlement agreement is less than six months, and 

        (iii)  be
able to decree any and all relief of an equitable nature, including, but not limited to, such relief as a temporary restraining order, a preliminary injunction, a
permanent injunction, specific performance or repletion of property. 

        The
arbitrators will also be able to award damages and recommend injunctions. 

        The
parties will share equally the arbitrator's fees and expenses pending the resolution of the arbitration. 

        The
decision of the arbitrator will be final and binding on the parties and may be sued on or enforced by the party in whose favor it runs in any court of competent jurisdiction at the
option of such party. 

        Notwithstanding
anything to the contrary in this Section 17.4, either party may seek immediate injunctive or other interim relief from any court of competent jurisdiction with
respect to any breach of Sections 9 or 10 hereof, or otherwise to enforce and protect the Patent Rights, copyrights, trademarks, or other intellectual property rights Controlled by such party. In
addition, arbitration will not be used to resolve disputes concerning Patent Rights. Disputes concerning Patent Rights, including, but not limited to, disputes concerning patent ownership, claim
language, claim scope and issues of validity will be settled in a court of law. Any arbitration ruling that relies on an interpretation of Patent Rights will have no binding effect in a court of law
on any Patent Rights related to this Agreement, unless such Patent Rights have been adjudicated in a court of law. In no event will a demand for arbitration be made after the date when the institution
of a legal or equitable proceeding based on such claim, dispute or other matter in question would be barred by the applicable statute of limitations. 

25

 

Notwithstanding
the foregoing or the outcome of the arbitration proceeding, each party will bear its own expenses including, without limitation, attorneys fees and court costs, even if the arbitrators
have the discretion to award such fees and costs to the prevailing party. 

        17.5    Severability    

        If
any term of this Agreement or the application thereof to any party or circumstance is, to any extent, held to be invalid or unenforceable, then the remainder of this Agreement, or the
application of such term to parties or circumstances other than those as to which it is held invalid or unenforceable, will not be affected thereby and each term of this Agreement will be valid and
enforced to the fullest extent permitted by law. The parties agree to renegotiate such term in good faith in order to provide a reasonably acceptable alternative to the term that is invalid or
unenforceable, it being the intent of the parties that the basic purposes of this Agreement are to be effectuated. 

        17.6    Independent Contractors    

        It
is expressly agreed that KO and SENOMYX will be independent contractors and that the relationship between the parties will not constitute a partnership or agency of any kind. Neither
KO nor SENOMYX will have the authority to make any statements, representations or commitments of any kind, or to take any action, which will be binding on the other party, without the prior written
authorization of the other party to do so. 

        17.7    Entire Agreement    

        This
Agreement sets forth all of the covenants, promises, agreements, warranties, representations, conditions and understandings between the parties, on the Effective Date, and
supersedes and
terminates all prior agreements and understandings between the parties, with respect to the subject matter hereof. There are no prior or contemporaneous covenants, promises, agreements, warranties,
representations, conditions or understandings, either oral or written, between the parties other than as set forth in this Agreement. 

        17.8    Amendment    

        No
subsequent alteration, amendment, change or addition to this Agreement will be binding upon the parties unless reduced to writing and signed by the respective authorized officers of
the parties. 

        17.9    Interpretation    

        This
Agreement will not be strictly construed against either party. Any conflict between the terms set forth in the text of this Agreement and the terms of any Appendix hereto will be
resolved in favor of the text of this Agreement. 

        17.10    Waiver    

        Except
as specifically provided for in this Agreement, the waiver from time to time by either of the parties of any rights or the failure to exercise any remedy will not operate or be
construed as a continuing waiver of the same right or remedy or any of the other of such party's rights or remedies provided in this Agreement. 

        17.11    Construction    

        The
term "Article" or "Section" can refer to any single paragraph level found in this Agreement or any collection of multiple paragraphs. 

26

           17.12    No Third Party Beneficiaries    

        No
Third Party, including any employee of any party to this Agreement (except as specifically provided in this Agreement), will have or acquire any rights by reason of this Agreement.
Nothing contained in this Agreement will be deemed to constitute the parties partners with each other or any Third Party. 

        17.13    Notices    

        Any
notices or communications provided for in this Agreement to be made by either party to the other party must be in writing, in English, and will be made by prepaid air mail or
overnight carrier with return receipt addressed to the other party at its address set forth below. Any such notice or communication may also be given by hand, or facsimile to the appropriate
designation. Notices will be sent: 

	If to SENOMYX, to:	 	SENOMYX, Inc.

11099 North Torrey Pines Road

La Jolla, CA 92037

Facsimile number: (858) 404-0750
	

Attention: Corporate Counsel with a copy to the President
	

If to KO, to:	
 	

The Coca-Cola Company

One Coca-Cola Plaza, N.W

Atlanta, GA 30013

Facsimile number:
	

Attention: Senior Vice President Technical, with a copy to the Chief Intellectual Property Counsel

        By
like notice, either party may specify or change an address to which notices and communications must be thereafter sent. Notices sent by mail, facsimile or overnight carrier will be
effective upon receipt and notices given by hand will be effective when delivered. 

        17.14    Assignment    

        Not
withstanding any provision of this Agreement to the contrary, either party may assign any of its rights or obligations under this Agreement in any country to any Third Party without
the prior written consent of the non-assigning party, which consent will not be unreasonably withheld. 

        Either
party may assign its rights and obligations under this Agreement without the consent of the other party: 

          (i)  to
a successor to substantially all of the business of such party to which this Agreement relates, whether by merger, sale of stock, sale of assets or other
transaction; or 

         (ii)  to
any Affiliate. 

        Notwithstanding
the foregoing, any such assignment to an Affiliate will not relieve the assigning party of its responsibilities for performance of its obligations under this agreement. 

        17.15    Merger or Consolidation    

        This
Agreement will survive any merger or consolidation of either party with or into another party and no consent for any such merger, consolidation or similar reorganization will be
required. 

27

 

        17.16    Counterparts    

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

        IN
WITNESS WHEREOF, the parties, through their authorized officers, have executed this Agreement as of the Effective Date. 

	THE COCA-COLA COMPANY	 	 
	

By:	
 	

/s/  DAVID M. TAGGART      
	
 	

 
	

Title:	
 	

Vice President and Treasurer
	
 	

 
	

Date:	
 	

April 22, 2002
	
 	

 
	

SENOMYX, INC.	
 	

 
	

By:	
 	

/s/  PAUL A. GRAYSON      
	
 	

 
	

Title:	
 	

Chairman and CEO
	
 	

 
	

Date:	
 	

April 22, 2002
	
 	

 

28

 
COLLABORATIVE RESEARCH, DEVELOPMENT, COMMERCIALIZATION AND LICENSE AGREEMENT  

 APPENDIX A—DEFINITIONS  

        "Affiliate" means any corporation, company, partnership, joint venture, association or other entity, which directly or indirectly controls, is controlled by or is
under common control with a party. As used in this definition, the term "control" means direct or indirect beneficial ownership of more than fifty percent (or such lesser percentage which is the
maximum allowed to be owned by a foreign corporation in a particular jurisdiction) of the outstanding securities having voting rights for the election of directors in a corporation or of the
comparable equity interest in any other type of entity. 

        "Agreement"
means this agreement, together with all appendices attached hereto, as it may be amended or supplemented from time to time hereafter by a written agreement executed by
authorized representatives of both parties. 

        "Base
Component" has the meaning set forth in Section 9.4. 

        "Beverages"
means non-alcoholic beverages sold under the Trademarks of KO or its Affiliates made from Beverage Bases. 

        "Beverage
Base" means [***]. 

        "Bottlers"
has the meaning set forth in Section 9.4.2. 

        "Calendar
Year" means a period of a year beginning January 1 and ending December 31. 

        "Collaborative
R&D Period" means the period beginning on the Effective Date and ending 36 months thereafter, unless concluded earlier in accordance with Section 15. 

        "Collaborative
R&D Program" has the meaning set forth in Section 3. 

        "Commercialization
Period" means, in the case of any Product Compound and Beverage or Beverage Base incorporating Product Compounds, the period of time commencing on FEMA GRAS
determination of such Product Compound and Beverage or Beverage Base incorporating Product Compounds or if the Steering Committee determines that there is a need for additional safety studies or
regulatory approvals as per Section 6.5, upon receipt of such approval, and ending upon the date that there no longer exists a Valid Claim in a Patent Right Controlled by SENOMYX or its
Affiliates covering the manufacture, use or sale of such Product Compound, Beverage or Beverage Base incorporating Product Compounds in any country in which the Product Compound, Beverage or Beverage
Bases incorporating Product Compounds is sold. 

        "Commercialization
Plan" has the meaning set forth in Section 7. 

        "Competitive
Product" means a product in Field I sold by a KO competitor. 

        "Compound"
means a substance that enhances the [***]. 

        "Confidential
Information" means all information, Inventions and Know-How disclosed by one party to the other party pursuant to this Agreement, including, without limitation,
information and material (whether or not patentable) regarding technology, products, research, development, manufacturing, marketing, finances, personnel or other business information or objectives
which is designated as confidential in writing by the disclosing party, whether by letter or by the use of an appropriate stamp or legend, prior to or at the time any such material, trade secret or
other information is disclosed by the disclosing party to the other party. Notwithstanding the foregoing to the contrary, Inventions, Know-How or other information which is orally,
electronically or visually disclosed by a party, or is disclosed in writing without an appropriate letter, stamp or legend, will constitute Confidential Information of a party if the disclosing party,
within 30 days after such disclosure, delivers 

29

 

to
the other party a written document or documents describing the Inventions, Know-How or other information and referencing the place and date of such oral, visual, electronic or written
disclosure and the names of the persons to whom such disclosure was made. 

        "Control"
or "Controlled" means, with respect to intellectual property, possession by a party, as of the Effective Date or during the Collaborative R&D Period, of the ability to grant a
license or sublicense in accordance with the terms of this Agreement, without violating the terms of any agreement by such party with any Third Party that is in effect on the Effective Date. 

        "Consumer
Price Index" means the U.S. Department of Labor statistic for All Urban Consumers (CPI-U) U.S. City Average for all items. Changes in the CPI will be measured based
on annual average. 

        "Cost"
or "C" has the meaning set forth in Section 9.4.2. 

        "Cost
Savings Component" has the meaning set forth in Section 9.4.2. 

        "Data
Package" has the meaning set forth in Section 5.2. 

        "Development
Plan" has the meaning set forth in Section 6. 

        "Effective
Date" means this Agreement becomes effective on the date on which it is signed by the last of the parties required to execute it. 

        "Enhancing
Compound(s)" means a molecule (not including KO Compound) under the Control of SENOMYX that: (i) has an enhancing effect on the  [***] at a concentration of [***]
, and (ii) is
not [***] at a concentration of [***]. 

        "FEMA
GRAS" means the process by which a compound is determined to be Generally Recognized as Safe by the Flavor and Extract Manufacturers Association expert panel. 

        "Field
I" means [***]. 

        "Field
II" means [***]. 

        "Fields"
means both Field II and I. 

        "High-Potency
[***]" will have the meaning set forth in Section 8.5. 

        "Invention"
means any invention, including any new and useful process, method, or composition of matter, or improvement thereto, whether or not patentable, made in the course of the
Collaborative R&D Program. 

        "Joint
Invention" has the meaning set forth in Section 11.4. 

        "Joint
Patent Rights" means all Patent Rights containing one or more claims to a Joint Invention. 

        "Know-How"
means information and data, whether or not patentable, which is not generally known to the public, including, without limitation, designs, concepts, formulae,
software, techniques, practices, processes, methods, knowledge, skill, experience, expertise, technical information, Materials and data, including pharmacological, toxicological and clinical test
data, analytical and quality control data, patent and legal data or marketing, sales and manufacturing data. 

        "KO
Compound" means the specific compound identified by KO as having a [***] effect for  [***], the structure of
which will be disclosed to SENOMYX by KO no later than [***] following the Effective Date. 

        "KO
Know-How" means all Know-How Controlled by KO provided to SENOMYX for the activities to be conducted under this Agreement. 

30

 

        "KO
Patent Rights" means all Patent Rights Controlled by KO, including, without limitation, any Patent Rights containing one or more claims to an Invention made solely by employees or
agents of KO, but excluding any Joint Patent Rights, provided to SENOMYX for the activities to be conducted under this Agreement. 

        "KO
Related Compounds" means the specific set of [***] effect for  [***], the structures of which will be disclosed to SENOMYX by KO no later than  [***] following the Effective Date. 

        "KO
Technology" means KO Patent Rights and KO Know-How. 

        "Materials"
mean antagonists, agonists, inhibitors, compounds, and chemicals, including without limitation, Enhancing Compounds, Selected Compounds, and Product Compounds. 

        "Net
Sales" means, with respect to a Beverage Base, the gross amount invoiced by KO and its Affiliates on any sales or other transfer of the Beverage Base, less the following items: 

           i)  trade,
quantity and cash discounts, price promotions, couponing, incentives or rebates actually allowed with respect to such sales; 

          ii)  credits,
rebates, charge-back rebates, reimbursements or similar payments, including those for amortization of equipment for capabilities and performance
programs, and strategic availability/pouring rights actually granted or given to wholesalers and other distributors, buying groups, governmental agencies and other institutions, but only to the extent
actually allowed; 

         iii)  credits
or allowances actually granted for rejection or return of Beverages incorporating Product Compounds previously sold; and 

          iv)  any
tax, tariff, duty or other governmental charge (other than an income tax) levied on the sale, transportation, freight or delivery of a Beverage or Beverage Bases
incorporating a Product Compound that is borne by the seller thereof and deducted from sales under United States generally accepted accounting principles. 

        Net
Sales will be determined from the books and records of KO and its Affiliates maintained in accordance with United States generally accepted accounting principles. 

        "Patents"
means all patent and patent applications which are controlled by SENOMYX as of the Effective Date or developed by SENOMYX in the course of the Collaborative R&D Period under
the Research Plan which specifically claim a Product Compound, a process for manufacturing a Product Compound, or the use of a Product Compound in a Beverage or Beverage Base. 

        "Patent
Rights" means all rights associated with all U.S. or foreign (including regional authorities such as the European Patent Office) regular or provisional patents or patent
applications, including any continuation, continuation-in-part, or division thereof or any substitute application therefor or equivalent thereof, and any patent issuing
thereon, including any reissue, reexamination or extension thereof and any confirmation patent or registration patent or patent of additions based on any such patent. 

        "Product
Compounds" means Selected Compounds used by KO in Beverages or Beverage Bases. 

        "Research
Plan" has the meaning set forth in Section 5. 

        "Royalty
Shortfall" has the meaning set forth in Section 9.5. 

        "Selected
Compound(s)" has the meaning set forth in Section 5.4. 

        "SENOMYX
Know-How" means all Know-How, which is not covered by the SENOMYX Patent Rights, but is necessary or appropriate for purposes of the activities to be
conducted under this Agreement, and which is Controlled by SENOMYX as of the Effective Date or developed by SENOMYX in the course of the Collaborative R&D Program. 

31

  

        "SENOMYX Patent Rights" mean all Patent Rights that are necessary or appropriate for purposes of the activities to be conducted under this Agreement, and which are Controlled by SENOMYX
as of the Effective Date or developed by SENOMYX in the course of the Collaborative R&D Program, but excluding any Joint Patent Rights. 

        "SENOMYX
Technology" means all of the SENOMYX Patent Rights and SENOMYX Know-How, including Target IP. 

        "Steering
Committee" has the meaning set forth in Section 4. 

        "Target
IP" means the SENOMYX Patent Rights and SENOMYX Know-How on the composition of matter and use of (i) Enhancing Compounds, (ii) Selected Compounds and
(iii) Beverages and Beverages incorporating Product Compounds. 

        "Target  [***]" means any of the following  [***]. 

        "Target
[***] Price" or "TSP" has the meaning set forth in Section 9.4.2. 

        "Term"
has the meaning set forth in Section 15.1. 

        "Third
Party(ies)" means any party other than a party to this Agreement excluding Affiliates of SENOMYX or KO or Bottlers. 

        "Unit
Case" means the equivalent of [***]. 

        "Valid
Claim" means a claim under an issued patent or patent application within the Patent Rights, which has not (i) expired or been canceled, (ii) been declared invalid by
an unreversed and unappealable
decision of a court or other appropriate body of competent jurisdiction, (iii) been admitted to be invalid or unenforceable through reissue, disclaimer or otherwise, and/or (iv) been
abandoned. 

        "X"
means the ratio of Y/W 

        Where
W is [***] needed to achieve a certain  [***], whether in [***] or a  [***]
; 

        Y
is [***] of the [***] needed in the  [***] to achieve the [***], whether in  [***] or [***], as W; and 

        A
is the enhancement factor. 

        For
a given Enhancing Compound with an associated enhancement factor A, A multiplied by X will always equal 1. 

        The
following examples illustrate the definition: 

	I.
	Examples
for [***]: In these examples, the  [***] is the same as the [***] of the  [***]
; 

Example
1: [***]. Therefore, Y = [***]; and 

Example
2: [***]. Therefore, [***]. 

	II.
	Examples
for a [***]: In these examples, the  [***] is the same as the [***] of the  [***]
. 

Example
1: [***]. Therefore, Y = [***]; and 

Example
2: [***]. Therefore, [***]. 

32

 

COLLABORATIVE RESEARCH, DEVELOPMENT, COMMERCIALIZATION AND LICENSE AGREEMENT  

 APPENDIX B—RESEARCH PLAN  

	KO Responsibility
 
	 	Steering Committee Responsibility
	 	SENOMYX Responsibility
	 	Cumulative Time (months)

	

1. Assign two representatives to the Steering Committee.

2. Disclose to SENOMYX the [***] and the [***].

3. Provide SENOMYX with a [***].	
 	

 	
 	

1. Assign two representatives to the Steering Committee.

2. Test KO Compound for [***].	
 	

Within [***] of the Effective Date
	

1. Review with SENOMYX, [***] on [***] and [***] enhancers as is relevant to the [***]
 enhancer discovery program.

2. Describe [***] conditions of products that may be important for an [***].

	

 	

1. Hold first Meeting.

2. Review and, if necessary, amend the Research Plan.

3. Review information (including [***] testing results) on [***] and [***].

4. Establish which of the [***] are to be [***] and tested in [***].	

 	

Review with KO, [***] on [***] and [***] enhancers as is relevant to the [***]
 enhancer discovery program.

2. Present progress and status of the project including the results of [***].

3. Apply information on properties and characteristics of [***] to the design and discovery of [***].	

 	

At first Steering Committee Meeting.
	

 	
 	

5. Discuss [***] for evaluating Enhancing Compounds in [***] in [***] and in [***]
. Plan to reach consensus on [***].

6. Agree on mechanism for communication of program results (e.g., reports, etc.) and scientific discussions (telephone, email and visits) in between Steering Committee Meetings.	
 	

3. Identify and prioritize [***] for [***].

4. Identify [***] and provide updates [***].	
 	

At first Steering Committee meeting (continued from above)
	 	 	 	 	 	 	 

33

 

	

 	
 	

 	
 	

1. Initiate [***] of the designated [***] of compounds.	
 	
[***]
	

 	
 	

1. Hold Meeting.	
 	

1. Present progress and status of [***].

2 Evaluate the designated [***] in the [***] at a range of relevant [***].	
 	
[***]
	

 	
 	

 	
 	

1. Use [***] results to design additional [***].

2. [***].

3. [***] in the [***] for compounds that exhibit [***].	
 	
[***]
	

 	
 	

 	
 	

1. Develop [***] for additional desired characteristics [***] as defined by the Steering Committee. Test certain [***]
.	
 	
[***]
	

 	
 	

 	
 	

1. [***] at least [***]. Results will be tabulated as [***] at a given [***]
.	
 	
[***]
	

 	
 	

 	
 	

1. Generate [***], and determine the effective [***] with each of the [***].	
 	
[***]
	

 	
 	

1. Hold Meeting.

2. Review and amend, if necessary, the Research Plan going forward.

3. Review and approve minutes from previous meeting	
 	

1. Share progress and status of project including progress toward [***].	
 	
[***]
	 	 	 	 	 	 	 

34

 

	

 	
 	

 	
 	

1. Determine SENOMYX [***] the compounds that are [***] for initial [***] of compounds with [***] and the [***] levels to be [***].	
 	
[***]
	

1. Participate in [***].	
 	

 	
 	

1. Perform initial [***] or have the tests performed by [***].	
 	
[***]
	

 	
 	

1. Hold Meeting.

2. Review and approve minutes from previous meeting.	
 	

1. Share progress and status of project.	
 	
[***]
	

 	

 	

1. Hold Meeting.

2. Review and amend, if necessary, the Research Plan.

3. Review and approve minutes from previous meeting.

4. Review and approve [***].	

 	

1. Share progress and status of project including progress toward [***].

2. Complete [***] of at least [***].

3. Expect [***]. Inform Steering Committee of [***] regarding compounds that [***].	

 	

 [***]
	

 	
 	

 	
 	

1. Continue [***] and [***] to identify compounds with [***].	
 	
[***]
	

 	
 	

1. Hold Meeting.

2. Review and approve minutes from previous meeting.	
 	

1. Share progress and status of project.	
 	
[***]
	

 	
 	

 	
 	

1. Coordinate [***] and [***] tests on certain compounds.	
 	
[***]
	 	 	 	 	 	 	 

35

 

	

1. Provide SENOMYX with [***].

2. Collaborate with SENOMYX to prepare and evaluate [***].	

 	

1. Coordinate [***].	

 	

1. Prepare [***].

2. Perform [***] according to agreed [***].

3. Perform [***] and other relevant tests [***].

4. Conduct [***] for certain compounds.	

 	

 [***]
	

1. Review [***].	
 	

1. Hold Meeting.

2. Review and amend, if necessary, the Research Plan.

3. Review and approve minutes from previous meeting.	
 	

1. Share progress and status of project.

2. Identify [***] that best meet the requirements of [***].	
 	
[***]
	

 	
 	

4. Review and approve [***].	
 	

3. Prepare [***].

4. Review the [***] and provide [***] will be determined by the Steering Committee.

5. Expect [***].	
 	
[***]
	

1. Coordinate [***].	
 	

 	
 	

1. Initiate [***] for use in the [***] may be initiated prior to [***].	
 	
[***]
	

 	
 	

1. Hold Meeting.	
 	

1. Share progress and status of project.	
 	
[***]
	

1. Present analysis of [***] of the [***].	

 	

1. Hold Meeting.

2. Select [***].

3. Agree to [***] achieved by the [***].[***]

4. Initiate [***] for the [***].	

 	

1. Present status on [***] and relevant [***].	

 	

 [***].
	 	 	 	 	 	 	 

36

 

	

 	
 	

 	
 	

1. Continue [***] of compounds and evaluate them in the [***].[***]2. Inform KO on new [***].	
 	
[***]
	

 	
 	

Review status of research program and make decisions regarding [***].	
 	

 	
 	
[***]

37

 
COLLABORATIVE RESEARCH, DEVELOPMENT, COMMERCIALIZATION AND LICENSE AGREEMENT  

 APPENDIX C—DEVELOPMENT PLAN  

	KO Responsibility
 
	 	Steering Committee Responsibility
	 	SENOMYX Responsibility
	 	Cumulative Time (months)

	

 	
 	

1. Review and, if necessary, amend the Development Plan.	
 	

1. Develop [***] process(es) for [***] and set [***].

2. Contract with [***] or equivalent [***] to coordinate and/or perform the [***].

3. Prepare [***].	
 	
[***]
	

1. Develop [***] for initial [***].	
 	

 	
 	

 	
 	
[***]
	

1. Present the [***].	
 	

 	
 	

 	
 	
[***]
	

 	
 	

1. Review [***].	
 	

1. Complete preparation of [***].	
 	
[***]
	

 	
 	

 	
 	

1. Submit [***] for [***].	
 	
[***]
	

 	
 	

1. Hold Meeting.[***]

2. Review and approve [***].	
 	

1. Expect [***] for the Selected Compound(s) and [***].	
 	
[***]
	

 	
 	

1. Decide upon any additional [***] that would be performed on a Selected Compound(s), the additional [***] to be obtained for a Selected Compound(s), and
the [***] associated with such activities.	
 	

 	
 	
[***]

38

 
COLLABORATIVE RESEARCH, DEVELOPMENT, COMMERCIALIZATION AND LICENSE AGREEMENT  

 APPENDIX D—COMMERCIALIZATION PLAN  

        [Intentionally Omitted.] 

39

 
 
 

COLLABORATIVE RESEARCH, DEVELOPMENT, COMMERCIALIZATION AND LICENSE AGREEMENT    
    
    Appendix E—Exceptions to KO rights to KO Compound (To be provided by KO)    
    

40

   ***Text Omitted and Filed Separately

with the Securities and Exchange Commission.

Confidential Treatment Requested

Under 17 C.F.R. Sections 200.80(b)(4),

200.83 and 230.406.  

FIRST AMENDMENT TO

COLLABORATIVE RESEARCH, DEVELOPMENT,

COMMERCIALIZATION AND LICENSE AGREEMENT  

        This Amendment is entered into as of April 7, 2004, by and between SENOMYX, INC., a Delaware
corporation having its principal place of business at 11099 North Torrey Pines Road, La Jolla, CA 92037 ("SENOMYX") and THE
COCA-COLA COMPANY, a Delaware corporation, having its principal place of business at One Coca-Cola Plaza, Atlanta, Georgia 30313
("KO"). 

BACKGROUND  

        WHEREAS, SENOMYX and KO have previously entered into that certain Collaborative Research, Development,
Commercialization and License Agreement, dated as of April 22, 2002 (the "Original Agreement"); and 

        WHEREAS, the parties hereto have agreed to amend the Original Agreement, and desire to enter into this Amendment for the purpose of
documenting such amendment as required by Section 17.8 of the Original Agreement. 

        NOW, THEREFORE, in consideration of the foregoing premises, the parties hereby agree to amend the Original Agreement as follows: 

AGREEMENT  

	1.
	Section 3
of the Original Agreement shall be amended by deleting the final sentence thereof, and inserting a new sentence in substitution therefor which shall read as follows: 

"Subject
to Section 15 hereof, this Agreement establishes a Collaborative R&D Program for a term of six years, commencing on the Effective Date and concluding on April 22, 2008 (the
"Collaborative R&D Period")." 

	2.
	Section 9.1.2
of the Original Agreement shall be amended by deleting the same in its entirety, and by inserting in substitution therefor a new Section 9.1.2 which shall
read as follows: 

"9.1.2  Payment Terms

KO
will make payments that: 

	(i)
	are
in advance;

	(ii)
	on
an equal quarterly basis; and

	(iii)
	(subject
to Section 15) total $12,000,000 and are allocated and recognizable by SENOMYX during the six year Collaborative R&D Period."

	3.
	Section 10.12
of the Original Agreement is hereby amended to delete the word "exclusive" where it appears therein, and to insert in substitution therefor the word
"non-exclusive."

	4.
	Section 15.2
of the Original Agreement shall be amended as follows:

	(a)
	By
inserting "(a)" prior to the initial text of said Section, such that all such text shall be denominated as Section 15.2(a); and 

1

 

	(b)
	By
inserting a new Section 15.2(b) following the text of Section 15.2(a), which shall read as follows:

	"(b)
	KO
may conclude the Collaborative R&D Program prior to the end of the Collaborative R&D Period, without paying SENOMYX any early conclusion fee, in the event that SENOMYX shall have
failed to achieve the milestone set forth in Section 9.3(b) of this Agreement on or prior to April 22, 2006, by providing written notice to SENOMYX thereof not later than  [***]. In the event
KO should provide any such notice, the Collaborative R&D Period shall end immediately and KO shall not have
any further obligations to pay research funding under Section 9, provided that KO will not be relieved from making research funding payments through and including the quarterly payment due in
April 2006. In the event that KO so notifies SENOMYX of early conclusion, the rights and obligations provided for under Section 8.1, 8.2, 8.3, and 8.5, the licenses granted under
Section 10.4 and 10.5 and the most favorable terms provision under 10.9 will all terminate."

	5.
	Section 16.6.3(i) of
the Original Agreement is hereby amended by deleting the word "SENOMYX's" which appears therein, and inserting in substitution therefor the word
"KO's."

	6.
	Section 17.14
of the Original Agreement is hereby amended by deleting the word "either" which appears in the first sentence therein, and by inserting in substitution therefor
the word "neither."

	7.
	Appendix A
of the Original Agreement shall be amended by deleting the definition "Collaborative R&D Period" and by inserting in substitution therefor the following new
definition: 

"Collaborative
R&D Period' has the meaning set forth in Section 3." 

	8.
	Except
for the aforesaid amendments, the Original Agreement shall remain in full force and effect in accordance with the original terms thereof. The parties do hereby ratify and
reaffirm all of their obligations under the Original Agreement, as amended by this Amendment. 

        IN WITNESS WHEREOF, the parties, through their authorized officers, have executed this Amendment as of the date set forth hereinabove. 

	THE COCA-COLA COMPANY	 	 
	

 	

 	
 	

 
	By:	/s/  RALPH CARLTON      
	 	 
	Title:	Vice President
	 	 
	Date:	 	 	 
	 	
	 	 
	

 	

 	
 	

 
	SENOMYX, INC.	 	 
	

 	

 	
 	

 
	By:	/s/  KENT SNYDER      
	 	 
	Title:	President & CEO
	 	 
	Date:	April 7, 2004
	 	 
	 	 	 	 

2

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COLLABORATIVE RESEARCH, DEVELOPMENT, COMMERCIALIZATION AND LICENSE AGREEMENT Appendix E—Exceptions to KO rights to KO Compound (To be provided by KO)

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