Document:

Exhibit 10.35

Execution
Copy

***Text Omitted and Filed Separately

with the Securities and Exchange Commission.

Confidential Treatment Requested

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

and
240.24b-2.

FIRST AMENDMENT

TO

COLLABORATIVE
RESEARCH, DEVELOPMENT, COMMERCIALIZATION

AND LICENSE AGREEMENT

This First Amendment is
entered into as of October 6, 2006, by and between Senomyx,
Inc. (“Senomyx”) and Ajinomoto Co., Inc.
(“Ajinomoto”). 
Capitalized terms used herein without definition shall have the meaning
provided therefor in the First Collaboration Agreement (as defined below).

BACKGROUND

WHEREAS, Senomyx and
Ajinomoto have previously entered into that certain Collaborative Research,
Development, Commercialization and License Agreement, effective March 23, 2006 (the “First
Collaboration Agreement”), for [...***...]
Program I and [...***...] Program II;

WHEREAS,
concurrently with this First Amendment the parties are entering into that
certain Collaborative Research, Commercialization and License Agreement, effective October 6, 2006 (the “Second
Collaboration Agreement”), for [...***...]
Program III (as defined therein); and

WHEREAS,
under the Second Collaboration Agreement, the parties
have agreed that Modifications (as defined in the Second Collaboration
Agreement) will be [...***...], subject to certain rights granted to Ajinomoto
under [...***...] Program II;

WHEREAS,
the parties hereto have agreed to amend the First Collaboration Agreement, and
enter into this First Amendment for the purpose of documenting such amendment
as required by Section 17.7 of the First Collaboration Agreement.

NOW,
THEREFORE, in consideration of the foregoing premises, the parties hereby agree
to amend the First Collaboration Agreement as follows.

AGREEMENT

1.                                       Appendix A to the First Collaboration Agreement
is hereby amended by either adding or amending, as provided below, the following definitions:

“Ajinomoto [...***...] Compound(s)” has the meaning set
forth in the Second Collaboration Agreement.

“Modification(s)” has the meaning set forth in the
Second Collaboration Agreement. 
For the avoidance of
doubt, Modifications do not include the Senomyx [...***...] Compounds.

 ***Confidential Treatment Requested
 

“[...***...] Compounds” means all the compounds
Controlled by Senomyx, except for [...***...] Compounds, Senomyx [...***...] Compounds
and [...***...] Modifications.

“Royalty Term” means, in the case of any [...***...]
Product and as to any country within the Territory, the period of time
commencing on the first commercial sale of such [...***...] Product in such country
and ending upon the date that there no longer exists a Valid Claim in any
Senomyx Patent Rights claiming the manufacture, use or sale of such [...***...]
Product (or Senomyx [...***...] [...***...] Compound or Selected Senomyx [...***...]
Compound licensed hereunder contained therein) in any country within the
Territory in which such [...***...] Product is sold, except that in the case of an
[...***...] Product containing a [...***...] Modification the Royalty Term will be the
[...***...] Modification
Royalty Term.  In the event that an
[...***...] Product contains a [...***...] Modification and one or more other Senomyx
[...***...] Compounds or Senomyx [...***...] Compounds, the applicable Royalty Term
shall be the [...***...] period. 
Notwithstanding the foregoing, jointly owned Ajinomoto Sole Inventions
or [...***...] will not [...***...]; provided, however, that [...***...].

“Senomyx [...***...] Compounds” means [...***...] Compounds that are [...***...].
“[...***...] Test” means a determination of [...***...] using an appropriate standard algorithm based on [...***...] of the compounds to be [...***...] to the parent Ajinomoto [...***...] Compound.  Suitable [...***...] for this purpose include, but are not limited to, [...***...] as the parties may agree upon in writing from time to time.  If the [...***...] is determined using [...***...] for each of the molecules, then the results must agree, otherwise the [...***...] result will be the definitive result.
“[...***...] Modifications” has the meaning set forth in Section 3.3(E) of this Agreement.  [...***...] Modifications shall be considered [...***...] Compounds.

 ***Confidential Treatment Requested
 

“[...***...] Modifications” has the meaning set forth in Section 3.3(E) of this Agreement.

“[...***...] Modification Royalty Term” means, as to any [...***...]
Product containing a [...***...] Modification and as to any country, the [...***...] of
(i) [...***...] from the date of [...***...] of the applicable [...***...] Product
containing a Modification in such country, or (ii) [...***...] from the date of
the applicable [...***...], as the case may be, regarding such [...***...]
Product containing a Modification.

“[...***...] Field” means [...***...] Product Category I, [...***...] Product Category II, [...***...] Product Category III, [...***...] Product Category IV and [...***...] Product Category V.
“[...***...] Product Category V” means [...***...] for Senomyx [...***...] Compounds which are [...***...] Modifications.  Notwithstanding the foregoing, the [...***...] Product Category V specifically excludes [...***...].  For the avoidance of doubt, Senomyx [...***...] Compounds which are [...***...] Modifications may be [...***...].

2.                                       Section 3.3 of the First Collaboration
Agreement is hereby amended as described below.

2.1                                 The first sentence of the first paragraph of
Section 3.3 of the First Collaboration Agreement is hereby amended and restated
in its entirety as follows:

“During
the Collaborative Period, Senomyx will collaborate with Ajinomoto in
[...***...] Program II on (i) an Exclusive basis with respect to [...***...] in
[...***...] Product Category I in the Territory; (ii) a Co-Exclusive basis
[...***...] in [...***...] Product Category II in the Territory; (iii) an
Exclusive basis [...***...] in [...***...] Product Category II in the
Territory; (iv) an Exclusive basis [...***...] in [...***...] Product Category
III in the Territory; (v) an Exclusive basis [...***...] in [...***...] Product
Category IV in the Territory; and (vi) an Exclusive basis [...***...] in  [...***...] Product Category V in the Territory.”

2.2                                 The fourth sentence of Section 3.3(B) of the
First Collaboration Agreement is hereby amended and restated in its entirety as
follows:

 ***Confidential Treatment Requested
 

“With respect to each Senomyx [...***...] Compound
[...***...] in the course of [...***...] Program II, by no later than
[...***...] immediately following the Collaborative Period (the “Selection Date”),
Ajinomoto may, upon written notice to Senomyx, select up to [...***...] Senomyx
[...***...] Compound(s) (including a maximum of [...***...] Modifications), or such larger reasonable number as the
parties shall reasonably agree, for development; provided, however,
that if a Regulatory Approval has been obtained with respect to a Senomyx
[...***...] Compound at least [...***...] prior to the Selection Date,
Ajinomoto may decide by a date which is [...***...] after the date of
[...***...] whether Ajinomoto selects such compound or not; provided  further,
that Ajinomoto shall [...***...]” 
Notwithstanding the immediately foregoing proviso, in no event shall
Senomyx be relieved of its obligations [...***...] or Ajinomoto be deemed to
[...***...] under Section 8.7 as a result of any such failure to select.

2.3                                 A new Section 3.3(E) is hereby added to the
First Collaboration Agreement as follows:

“(E)         Modifications.  To
the extent that either party makes a Modification with respect to any
[...***...] Compound at any time during the longer of the Term or [...***...]
from the date of the [...***...] with respect to such [...***...] Compound,
then that party shall (i) promptly test such Modification using the [...***...]
Test, (ii) notify the other party of the [...***...] of such Modification and
the results of such [...***...] Test at the next meeting of the Steering
Committee or, if such meetings are no longer taking place, within [...***...]
following such Modification (“Modification Notice”) and (iii) thereafter
provide the other party with any other information reasonably requested.  In the event that the results of such
[...***...] Test indicate that any such Modification is [...***...] to any
Ajinomoto [...***...] Compound, then such Modification shall be deemed a “[...***...] Modification”.  Any Modification that is not a [...***...]
Modification shall be deemed a “[...***...] Modification”.  For the avoidance of doubt,
all Modifications are [...***...] of the Second Collaboration Agreement.  The rights and obligations of the parties
with respect to patent prosecution and maintenance of Patent Rights claiming
Modifications are set forth in Section 11.1 of the Second Collaboration
Agreement.”

 ***Confidential Treatment Requested
 

3.                                       Section 7.5 of the First Collaboration
Agreement is hereby amended as described below.

3.1                                 The first sentence of Section 7.5 of the
First Collaboration Agreement is hereby amended and restated as follows:

“Pursuant
to the provisions of Section 7.7, Ajinomoto will pay to Senomyx a royalty of
[...***...] on [...***...] during the Royalty Term; provided, however,
that the royalty rate of the sales of [...***...] Products in [...***...]
Product Category III, [...***...] Product Category IV and ingredient supply
applications within [...***...] Product Category V shall be [...***...] on
[...***...].”

3.2                                 The third, fourth and fifth sentences of
Section 7.5 of the First Collaboration Agreement are hereby amended and
restated as follows:

“In
the event that Ajinomoto sells [...***...] Products to Affiliates of Ajinomoto,
royalties will be based on [...***...]. 
In all cases, sales by Ajinomoto (and its Affiliates) to Third Parties,
including, without limitation, as provided for in (b) and (c) above, the sales
price in such transactions shall be determined on an arms length basis.  Ajinomoto will provide Senomyx with a copy of
[...***...] to an Affiliate, which shall be [...***...], provided that
Ajinomoto may [...***...] other than the transfer price in any
[...***...].  For the avoidance of doubt,
(i) [...***...] Products in [...***...] Product Category III and [...***...]
Product Category IV shall always be sold as a [...***...] and shall, in no
event, be sold as [...***...].”

4.                                       Section 8 of the First Collaboration
Agreement is hereby amended as described below.

4.1                                 The first sentence of Section 8.2 of the
First Collaboration Agreement is hereby amended and restated in its entirety as
follows:

“A non-exclusive, nontransferable (except as permitted
under Sections 8.3 and 17.12), license under the Senomyx Technology to
[...***...] Senomyx [...***...] Compound(s) [...***...] in [...***...] Product
Category I, [...***...] Product Category II, [...***...] Product Category III, [...***...]

 ***Confidential Treatment Requested
 

Product
Category IV [...***...] and [...***...] Product Category V (with respect to
[...***...] Modifications) in
the Territory.”

4.2                                 A new Section 8.2(E) is hereby added to the
First Collaboration Agreement as follows:

“(E)         [...***...] Product Category V. 
With respect to [...***...] Modifications, an Exclusive, nontransferable
(except as permitted under Sections 8.3 and 17.12) license under the Senomyx
Technology to (i) [...***...] Senomyx [...***...] Compounds solely for
development of [...***...] Products in [...***...] Product Category V in the
Territory; (ii) make, have made, use, sell, offer for sale, have sold, import
and export [...***...] Products containing Selected Senomyx [...***...] Compounds
in [...***...] Product Category V in the Territory; and (iii) make and have
made Selected Senomyx [...***...] Compounds to be used by Ajinomoto and/or its
Affiliates (only if pursuant to a permitted sublicense as provided for in
Section 8.3) in [...***...] Products in [...***...] Product Category V in the
Territory, subject to Section 13.”

4.3                                 A new Section 8.7 is hereby added to the
First Collaboration Agreement as follows:

“8.7        Restrictions on Use of [...***...] Modifications.  Notwithstanding anything to the contrary in
the First Collaboration Agreement or the Second Collaboration Agreement,
Senomyx agrees that, during the longer of the Term or the term of the Second
Collaboration Agreement, it will not [...***...]; provided, however,
that in no event will this Section 8.7 prevent Senomyx from [...***...].
Anything in this Agreement or the Second Collaboration Agreement to the
contrary notwithstanding, for so long as an Ajinomoto [...***...] Compound
remains [...***...], Senomyx [...***...], any [...***...] Modification of such
Ajinomoto [...***...] Compound in [...***...]; provided, however,
that in no event will this Section 8.8 prevent Senomyx from [...***...].”

 ***Confidential Treatment Requested
 

4.4                                 A new Section 8.8 is hereby added to the
First Collaboration Agreement as follows:

“8.8        Research License for
Ajinomoto [...***...] Compounds.  Pursuant
to Section 8.4.1 of the First Collaboration Agreement, Ajinomoto hereby grants
to Senomyx a [...***...] license to use any Ajinomoto [...***...] Compound,
following [...***...] with respect thereto, [...***...] under [...***...]
Program II to discover Modifications. 
For the avoidance of doubt, this license will not include the right to
sub-license unless Ajinomoto gives its consent, which may be withheld for any
reason.  “

5.                                       Section 15.4 of the First Collaboration
Agreement is hereby amended and restated in its entirety as follows:

“Survival.  The
obligations and rights of the parties under Sections 3.3(E), 4.1 (only with
respect to [...***...] Modifications and only for so long as the Second
Collaboration Agreement remains in effect) 7.10, 7.11, 8.4.2, 8.4.3, 8.7, 9,
10, 11.2 through 11.7, 14, 15, 16, 17, and Appendix A, will survive termination
or expiration of this Agreement; provided, however, that
notwithstanding the foregoing, in no event shall Section 7.11 survive for more
than [...***...].”

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

7.                                       The parties will agree upon a press release
to announce the execution of the Second Collaboration Agreement and this First
Amendment and their material terms, the form of which press release is attached
as Appendix C to the Second Collaboration Agreement.  Thereafter, Ajinomoto 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.

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

9.                                       This First Amendment shall be effective as of
the date first written above.

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

 ***Confidential Treatment Requested
 

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

	
  SENOMYX, INC.

  	
   

  	
  AJINOMOTO CO., INC.

  
	
   

  	
   

  	
   

  
	
  By: 

  	
  /s/ Kent Snyder

  	
   

  	
  By: 

  	
  /s/ Tohru
  Nishiyama

  
	
  Name:

  	
  Kent Snyder

  	
   

  	
  Name:

  	
  Tohru Nishiyama

  
	
  Title:

  	
  President and
  Chief Executive Officer

  	
   

  	
  Title: 

  	
  Member of the
  Board & Corporate Executive Deputy President

  
	
   

  	
   

  	
   

  
	
  Date: 

  	
  October 11, 2006

  	
   

  	
  Date: 

  	
  October 11, 2006

  
							

 

 ***Confidential Treatment RequestedExhibit
10.36

***Text
Omitted and Filed Separately with the Securities and

Exchange Commission.  Confidential
Treatment Requested

Under 17 C.F.R. Sections 200.80(b)(4) and 240.24b-2.

Execution
Copy

 

 

 

 

 

 

 

COLLABORATIVE RESEARCH,
COMMERCIALIZATION

AND LICENSE AGREEMENT

FOR [...***...] PROGRAM III

BETWEEN

SENOMYX, INC.

AND

AJINOMOTO CO., INC.

 

 

 

 

 

 

 

***Confidential Treatment Requested

COLLABORATIVE RESEARCH, COMMERCIALIZATION AND

LICENSE AGREEMENT FOR [...***...] PROGRAM III

THIS AGREEMENT is
entered into as of October 6, 2006 (the “Effective Date”) by and between
SENOMYX, INC., a Delaware Corporation having offices at 11099 North Torrey
Pines Road, La Jolla, CA 92037, U.S.A. (“Senomyx”) and AJINOMOTO CO., INC., a
Japanese Corporation, having its principal place of business at 15-1, Kyobashi
1-chome, Chuo-ku, Tokyo 104-8315, Japan (“Ajinomoto”).

BACKGROUND

Whereas, Ajinomoto and
Senomyx have entered into a Collaborative Research, Development,
Commercialization and License Agreement dated March 23, 2006, as amended by
that certain First Amendment dated the date hereof (“First Collaboration Agreement”), whereunder the
parties have agreed to collaborate on [...***...] Program I and [...***...]
Program II and Senomyx has granted to Ajinomoto certain license and commercialization
rights.  Ajinomoto and Senomyx desire to
enter into this Agreement for an additional collaborative research and development program to discover and
develop Ajinomoto [...***...] Compounds during the Collaborative Period under
the Research Plan for use in the Field and Territory (the “[...***...] Program
III”).

NOW, THEREFORE, in
consideration of the foregoing promises and of the covenants, representations
and agreements set forth below, the parties hereby 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 herein
by reference.  Capitalized terms used in
this Agreement without definition shall have the meanings provided therefore in
the First Collaboration Agreement.

2.                                       Steering Committee.  Within [...***...] of the Effective Date, the
parties will establish a joint steering committee, which will be made up of
representatives from the parties (the “Steering Committee”).  The Steering Committee will direct the
efforts of [...***...] Program III.  The
Steering Committee will consist of two (2) representatives designated by
Senomyx and two (2) representatives designated by Ajinomoto.  Steering Committee members may delegate their
voting powers to delegates from their respective companies.  Each member of the Steering Committee will
have one (1) vote. The Steering Committee will meet at least four (4) times per
year during the Collaborative Period, and
thereafter from time to time, 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 Committee. Senomyx will prepare and deliver to the members of the
Steering Committee minutes of such

***Confidential Treatment Requested

 2
 

meetings for
review and approval by both parties. Decisions of the Steering Committee will
be made by unanimous vote, at a meeting where all four voting representatives
are present, or by unanimous written consent.

3.                                       Collaborative Program.

3.1                                 Research Plan;
Staffing.

3.1.1                        Research Plan.  The parties will prepare the
Research Plan within [...***...] from the Effective Date and will conduct [...***...] Program
III pursuant thereto.  The Research Plan will be reviewed at the
first meeting of the Steering Committee. 
Senomyx will prepare the Research Plan and, after review and comment by
Ajinomoto, the Steering Committee will authorize the same.

3.1.2                        Staffing. 
Senomyx represents and warrants that
the personnel it will provide to
participate in [...***...] Program III
are qualified to perform the work in the Research Plan.  Senomyx shall identify to Ajinomoto the
Senomyx personnel, including their academic and work experience, who shall
participate in [...***...] Program III. 
Senomyx may change such personnel to other qualified personnel from time
to time, in its reasonable discretion, provided that, to the extent reasonably
possible, Senomyx shall notify Ajinomoto in advance of any such change and
identify to Ajinomoto such new personnel, including their academic and work
experience.

3.2                                 [...***...] Program III.   During the Collaborative Period, Senomyx
will collaborate with Ajinomoto in [...***...] Program III on an Exclusive
basis within the Field in the Territory.

3.2.1                        Research Plan.  The Research Plan for [...***...] Program III
shall include [...***...].  Anything in
this Agreement to the contrary notwithstanding, Ajinomoto shall not knowingly provide Senomyx with any [...***...]
in [...***...] for [...***...].

3.2.2                        Responsibilities of the Parties.  During the Collaborative Period, Senomyx will
use its reasonable commercial efforts using the applicable Research Fees
provided under Section 6.1 to perform the activities outlined in the Research
Plan.  [...***...], Senomyx will prepare a data package for
Ajinomoto [...***...] Compounds describing the results of the research
conducted pursuant to Section 3.2.1, subject to agreement of the

***Confidential Treatment Requested

 3
 

parties on the contents
of such data package. During the Collaborative Period, Ajinomoto will use its
reasonable commercial efforts to perform the activities in accordance with the
Research Plan, and the evaluation of the data package.  With respect to each Ajinomoto [...***...]
Compound discovered in the course of [...***...] Program III, Ajinomoto may,
upon written notice to Senomyx, select any such Ajinomoto [...***...]
Compound(s) for development.  Ajinomoto
will provide written notice to Senomyx of all Ajinomoto [...***...] Compounds
selected for development and any such compounds will be deemed Selected
Ajinomoto [...***...] Compounds.  During
the Collaborative Period, Senomyx and Ajinomoto will cooperate in good faith to
support the other party’s performance of the activities set forth in the
Research Plan.  Upon expiration of the
Collaborative Period, the parties’ research and development obligations
pursuant to this Section 3.2 will expire. 
Ajinomoto at all times shall be free to develop, use,
commercialize, license and/or otherwise dispose of any and all such Ajinomoto [...***...] Compounds,
subject only to its obligations under this Agreement; provided, however,
that if (i) at least [...***...] identified under [...***...] Program III is
not selected as a Selected Ajinomoto [...***...] Compound(s) pursuant to this
Section 3.2.2 by the Selection Date and (ii) Ajinomoto has not otherwise paid at least [...***...]
under the First Collaboration Agreement or [...***...] under this Agreement,
Ajinomoto will be precluded from [...***...] any Ajinomoto [...***...] Compound
without the written consent of Senomyx. 
For the avoidance of doubt, Ajinomoto will not [...***...] any Ajinomoto
[...***...] Compound for which Ajinomoto has not notified Senomyx of its
selection for development as a Selected Ajinomoto [...***...] Compound.

3.2.3                        Ajinomoto [...***...] Compounds.  At the Steering Committee
meeting immediately following
[...***...], Ajinomoto will notify the Steering Committee of the [...***...] in
order to determine via review of the applicable data and information whether
[...***...].  Such [...***...] shall be considered Confidential Information of
Ajinomoto.  If such [...***...] is not
determined by the Steering Committee to be a [...***...], and such [...***...]
otherwise meets the definition of Ajinomoto [...***...] Compounds, then it will be deemed to be an Ajinomoto [...***...] Compound [...***...].  If neither all the members of the Steering
Committee nor the parties can agree whether such [...***...] is an [...***...]

***Confidential Treatment
Requested

 4
 

[...***...],
then either party may seek to resolve such dispute pursuant to the dispute
resolution procedures set forth in Section 16.4.  Ajinomoto must provide [...***...] to Senomyx
by no later than [...***...] days immediately following the Collaborative
Period.  If Senomyx is not provided
[...***...] for a [...***...] within such period, [...***...].

3.2.4                        Exclusivity.  During
the Collaborative Period, Senomyx [...***...]. 
Notwithstanding the foregoing, this Section 3.2.3 will not be construed
as [...***...] (subject to any obligations, including without
limitation, any exclusivity obligations, in the First Collaboration Agreement). 
Anything in this Agreement to the contrary notwithstanding, Ajinomoto at
all times shall be free to [...***...]following the Collaborative Period,
subject to its obligations under this Agreement.

3.3                                 Ajinomoto
[...***...] Product Development and Commercialization.  Within [...***...] of Ajinomoto’s first
selection of an Ajinomoto [...***...] Compound, Ajinomoto shall provide Senomyx
with [...***...] of Ajinomoto [...***...] Compounds, including plans for Ajinomoto [...***...] Product
development, manufacturing and consumer acceptance testing.  Ajinomoto will provide, at each Steering
Committee meeting or if such meetings are no longer taking place, then on a
[...***...] basis, [...***...] reports to Senomyx, which will include, without
limitation, [...***...] of any Ajinomoto [...***...] Compound.  Such reports will be treated as Confidential
Information of Ajinomoto.  Ajinomoto will
use commercially reasonable efforts to obtain Regulatory Approval for
[...***...] Ajinomoto [...***...] Compound and will use commercially reasonable
efforts to commercialize [...***...] Ajinomoto [...***...] Product containing
one or more Ajinomoto [...***...] Compounds within [...***...] from the
Regulatory Approval Date for the first Regulatory Approval obtained for an
Ajinomoto [...***...] Compound.  For the avoidance
of doubt, Ajinomoto will be responsible for [...***...]

***Confidential
Treatment Requested

 5
 

[...***...]
of Ajinomoto [...***...] Product prototypes.

3.4                                 Regulatory. 
Regulatory matters shall be handled as follows.

3.4.1                        Regulatory Filings. 
All regulatory filings for any Ajinomoto [...***...] Compounds and all
Regulatory Approvals received or issued in connection therewith shall be
[...***...].  Any data generated under this Agreement for an
Ajinomoto [...***...] Compound
that is required to submit or complete a regulatory filing or obtain Regulatory
Approval (“Regulatory Filing Data”) shall be [...***...].

3.4.2                        Cost of Filings. 
[...***...] will be responsible for the costs associated with the regulatory filings and the Regulatory Filing
Data for the Ajinomoto [...***...] Compounds.

3.4.3                        Notice of Regulatory Approval.  Upon selection of each Selected Ajinomoto
[...***...] Compound, Ajinomoto will provide Senomyx with a nonbinding
regulatory plan (“Regulatory Plan”).  The
Regulatory Plan(s) will set forth the following [...***...].  Ajinomoto will provide, at each Steering
Committee meeting or if such meetings are no longer taking place, then on a
[...***...] basis, updates of the Regulatory Plan(s), which may be incorporated
into the minutes of the Steering Committee. 
Ajinomoto will notify Senomyx within [...***...] following [...***...] of any Regulatory Approval.

4.                                       Law and Regulation.  The [...***...] Compounds, Ajinomoto
[...***...] Compounds, Selected Ajinomoto [...***...] Compounds, and any other
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.

5.                                       Reporting. 
During the Collaborative Period, each party will report to the other a
written summary, the contents of which shall be determined by the parties
following the Effective Date, of results of research and development work it
carries out, if any, under this Agreement within [...***...] after each
quarterly Steering Committee meeting. 
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, visits to the other party’s facilities. 
Subject to Section 3.2.3, anything in this Agreement to the contrary
notwithstanding, Ajinomoto shall be under no obligation to report to Senomyx
[...***...]

***Confidential
Treatment Requested

 6
 

[...***...].  Each
party shall promptly bring to the other party’s attention any [...***...] with
respect to any Ajinomoto [...***...] Compound.

6.                                       Financial Terms.

6.1                                 Research Fees.

6.1.1                        Research Fees.  During
the Collaborative Period, Ajinomoto will pay Senomyx research fees for the work
of Senomyx under [...***...] Program III (“Research Fees”).  The Research Fees for the first year of
[...***...] Program III shall be US$[...***...]
(which shall be equivalent to the cost of [...***...] for [...***...]
Program III on the basis of US$[...***...] per FTE, including, without
limitation, the cost of overhead, salaries and necessary materials and supplies
for such FTEs).  The Research Fees for
the second year of [...***...] Program III shall be a minimum of
US$[...***...].  The Research Fees for
the third year of [...***...] Program III shall be a minimum of
US$[...***...].  The Research Fees will
be paid in equal [...***...] installments payable in advance.  The first payment will be made within
[...***...] following the Effective Date. 
The Research Fees do not include: 
[...***...].

6.1.2                        Reallocation of Research Fees.  The Steering Committee may, upon [...***...]
written notice, reallocate Research Fees from [...***...] Program II, in whole
or in part, under Section 7.3 of the First Collaboration Agreement to
[...***...] Program III.  Such Research
Fees reallocated from the First Collaboration Agreement [...***...].  In no event will Research Fees under this
Agreement [...***...].  In the event all
Research Fees are reallocated from [...***...] Program II to [...***...]
Program III, Senomyx shall be [...***...] under Section 3 of the First
Collaboration Agreement, and the period defined
as the [...***...]
in the First Collaboration Agreement [...***...].  For the avoidance of doubt, in the

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event of [...***...], the Selection Date for [...***...]
Program II as set forth in Section 3.3(B) of the First Collaboration Agreement
shall be [...***...] following [...***...]. 
For the avoidance of doubt, Ajinomoto must retain at least [...***...]
allocated to [...***...] Program II in order to [...***...] thereunder.

6.2                                 Milestone Payments.  Ajinomoto will pay Senomyx the following
non-creditable, non-refundable milestone payments within [...***...] of the
occurrence, and written backup information to Ajinomoto from Senomyx, of the
following milestone events for [...***...] Program III:

·                  Milestone 1: [...***...]; provided, however, [...***...];
·                  Milestone 2: [...***...]; provided, however, [...***...]; and
·                  Milestone 3: [...***...]; provided, however, [...***...].

6.3                                 [...***...] for Ajinomoto [...***...] Products.

6.3.1                        [...***...]  In consideration for the use of Senomyx
Technology in [...***...] Program III, pursuant to the provisions of Section
6.5, Ajinomoto will pay to Senomyx a [...***...] of

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[...***...] on [...***...] during
the [...***...] Term.  For the avoidance
of doubt, there shall be [...***...]; provided, however, that
Ajinomoto will pay the [...***...].  For
the avoidance of doubt, in the event that one or more additional Ajinomoto
[...***...] Compounds is added to an Ajinomoto [...***...] Product, the
[...***...] Term will [...***...].  In
the event that Ajinomoto sells Ajinomoto [...***...] Products to Affiliates of
Ajinomoto, the royalty [...***...]
will be based on [...***...].  In all cases, sales by Ajinomoto
(and its Affiliates, licensees and sublicensees) to Third Parties, including,
without limitation, as provided for in (b)
and (c) above, the sales price in such transactions shall be determined
[...***...].

6.3.2                        [...***...] Obligation Following Any
Commercialization.  For the avoidance of doubt, in
the event that at any time during or after the Term Ajinomoto commercializes
any Ajinomoto [...***...] Compound, Ajinomoto will be
obligated to pay Senomyx [...***...], regardless of whether any such Ajinomoto [...***...]
Compound is selected as a Selected Ajinomoto [...***...] Compound.  Notwithstanding the foregoing, in no event
shall Ajinomoto be obligated to pay [...***...] with respect to any Ajinomoto
[...***...] Product for any period longer than the [...***...] Term.

6.4                                 Minimum Annual Royalties [...***...].

6.4.1                        Minimum Annual Royalty
[...***...] Amount.  One single minimum annual royalty
[...***...] (“MAR”) structure will apply to Ajinomoto [...***...] Compounds,
Senomyx [...***...] Compounds and Selected Senomyx [...***...] Compounds.  Such structure shall be the structure set
forth in Section 7.6 of the First Collaboration Agreement, which is
incorporated herein by reference and will apply to Ajinomoto

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[...***...] Compounds.  If MAR
payments have not been triggered or if the application of the MAR provisions is
reset with respect to Senomyx [...***...] Compounds and/or Selected Senomyx
[...***...] Compounds, then with respect to any triggering by Ajinomoto [...***...] Compounds of future MAR obligations, Ajinomoto’s
obligation to meet the MAR will commence on the first day of the calendar
quarter immediately following the day when Ajinomoto first sells Ajinomoto [...***...] Products in (x) [...***...] and/or (y)
[...***...] (as the case may be). 
Ajinomoto’s obligations to meet the MAR will continue throughout the
[...***...] Term for Ajinomoto [...***...] Products.

6.4.2                        Calculation of the MAR.  The amount by which the aggregate amount of [...***...] for a Minimum
Annual Royalty Year (as defined below) is less than the amount of the relevant MAR
shall be paid by Ajinomoto to Senomyx within [...***...] from the end of that Minimum
Annual Royalty Year; provided, however, that a “Minimum Annual
Royalty Year” for each of (i) [...***...], shall mean each twelve-(12)-month
period commencing on the earlier of the Commercialization Date or the first
date of commencement of Ajinomoto’s obligation to meet the MAR with respect to
any Ajinomoto [...***...] Compound, as the case may be, and each
anniversary thereof.  Anything in this
Agreement to the contrary notwithstanding, with respect to the MAR for (i)
[...***...], the aggregate amount of earned royalties [...***...] in
[...***...] and the pro rata share of earned royalties [...***...] outside of
the First Collaboration Agreement Territory applicable to [...***...] shall be
used to determine whether a MAR payment is due with respect to [...***...], and
(ii) [...***...], the aggregate amount of earned royalties [...***...] in the
First Collaboration Agreement Territory [...***...], and the pro rata share of
earned royalties [...***...] outside of the First Collaboration Agreement
Territory applicable to the First Collaboration Agreement Territory [...***...]
shall be used to determine whether a MAR payment is due with respect to such
[...***...].  By way of example, for any Minimum Annual
Royalty Year:  (i) all
earned royalties [...***...] of Ajinomoto [...***...] Products in the First
Collaboration Agreement Territory for such Minimum Annual Royalty Year will be creditable towards the MAR applicable during such Minimum Annual Royalty
Year; and (ii) all

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earned royalties
[...***...] of Ajinomoto [...***...] Products outside of the First Collaboration Agreement Territory for such Minimum
Annual Royalty Year will be creditable on
a pro rata basis to the MAR applicable during such Minimum Annual
Royalty Year for each of [...***...] and
[...***...] other than [...***...].

6.4.3                        Pro Ration of the MAR.  In the
event of the expiration or termination of this Agreement, the MAR for the final
Minimum Annual Royalty Year shall be calculated by [...***...].

6.4.4                        Reset of MAR.  The reset provision of Section 7.6.4 of the First Collaboration Agreement
will apply to Ajinomoto [...***...] Compounds through the [...***...] Term and, therefore, by way of example,
if the MAR is triggered with respect to Senomyx [...***...] Compounds and/or
Selected Senomyx [...***...] Compounds, and if [...***...] or more elapses
after cessation of the sale of a product consisting of or containing Senomyx
[...***...] Compounds and/or Selected Senomyx [...***...] Compounds before
Ajinomoto’s first sale of an Ajinomoto [...***...] Product, then the application of the MAR provisions
shall start anew from the first year MAR amount provided for in Section 7.6.1
of the First Collaboration Agreement.

6.5                                 Payment Terms.  The
[...***...] due under Section 6.3 will be paid within [...***...] after the end
of each calendar [...***...] period in which such [...***...] are earned during
the [...***...] Term for [...***...]. 
With each such [...***...] payment, Ajinomoto (or its respective
Affiliate) will furnish to Senomyx a [...***...] statement in sufficient detail
to permit confirmation of the accuracy of the [...***...] payment made, which
sets forth on a country-by-country basis the [...***...], the [...***...]
payable in United States dollars, the method used to calculate the [...***...],
the exchange rate used and [...***...].

6.6                                 Currency of Payment. All payments to be
made under this Agreement, including the [...***...] payable to Senomyx by
Ajinomoto, will be paid in United States dollars by wire transfer or other
mutually acceptable means to a bank account designated by Senomyx.  With respect to each

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quarter, for countries other than the United States,
whenever conversion of payments from any foreign currency are required, such
conversion will be made at [...***...].

6.7                                 Taxes Withheld.  Any income or other tax that Ajinomoto or any
of its Affiliates is required by a government agency to withhold and pay on
behalf of Senomyx with respect to milestone payments, [...***...] or any other
payments payable under this Agreement will be deducted from and offset against
such [...***...] prior to remittance to Senomyx; provided, however,
that in regard to any tax so deducted, Ajinomoto 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
without delay furnish to Senomyx proper evidence of the taxes paid on Senomyx’s
behalf.

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

6.9                                 Records of [...***...] and [...***...] Calculations.  During the [...***...] Term and for a period
of [...***...] thereafter, Ajinomoto will keep complete and accurate records of
[...***...] in sufficient detail to allow the accrued [...***...] to be
determined accurately in accordance with the generally accepted accounting
principles of the relevant country and to verify the [...***...] payments pursuant
to Section 6.3.  Senomyx, following
reasonable prior written notice to Ajinomoto, will have the right [...***...]
in order to verify the accuracy of the reports of [...***...] and [...***...]
payments.  [...***...].  Senomyx will bear [...***...] unless
[...***...]

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[...***...], in which event, Ajinomoto will bear
[...***...].  In all events, Ajinomoto
will pay any underpayment with interest in accordance with Section 6.8 and
Senomyx shall refund any overpayment with interest in accordance with Section
6.8.  Senomyx acknowledges that the information
concerning [...***...] payments reports, and all other information learned
[...***...] constitutes the Confidential
Information of Ajinomoto, but
Senomyx may disclose the same to the extent necessary for Senomyx to
enforce its rights under this Agreement or if disclosure is required by law or
falls under an exception under Section 9.4; provided, however, that in the event of such disclosure,
Senomyx shall observe the provisions of the second paragraph of Section 9.4.

7.                                       License Grants.

7.1                                 From Ajinomoto to Senomyx, Inc.

7.1.1                        [...***...].  Subject
to the terms and conditions of this Agreement, Ajinomoto hereby grants to
Senomyx a non-exclusive nontransferable (except as provided under Section
16.12) license to use [...***...] in the continental United States of America
for the sole purpose of performing its obligations under this Agreement.  Unless otherwise agreed to by Ajinomoto, in no event
shall Senomyx use [...***...] except to [...***...] pursuant to the terms of
this Agreement.

7.1.2                        Possible Future Grants.  If
Ajinomoto identifies any [ ...***...] that may be relevant or useful for the
research purposes under this Agreement, [...***...] license for Senomyx to use
the relevant [...***...] for the [...***...]. 
For the avoidance of doubt, this license will not include the right to
sub-license unless Ajinomoto gives its consent, which may be withheld for any
reason.

7.1.3                        [...***...].  Subject to the terms and
conditions of this Agreement, [...***...] a license to any [...***...] for the
sole purpose of practicing the licenses granted pursuant to Section 7.1.2.

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7.2                                From Senomyx to Ajinomoto.   Senomyx
hereby grants to Ajinomoto a non-exclusive, non-transferable license, with the
right to sublicense as provided in Section 8.7.2 below,
under Senomyx Technology covering [...***...] solely to [...***...] Ajinomoto
[...***...] Products; provided, however such license shall not
include a license to [...***...].  For
the avoidance of doubt, this license only applies to [...***...] Compounds determined
to be Ajinomoto [...***...] Compounds
under Section 3.2.3.

8.                                       Ownership of Intellectual Property.

8.1                                 Retention of Rights.  Senomyx retains all rights in Senomyx
Technology not expressly licensed, assigned or jointly owned pursuant to the terms of this
Agreement.  Ajinomoto retains all rights
in Ajinomoto Technology not expressly licensed, assigned or jointly owned
pursuant to the terms of 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.

8.2                                 Senomyx Sole Inventions.  Senomyx will own all Inventions and other
Know-How made solely by its employees and agents under this Agreement,
[...***...] (the “Senomyx Sole Inventions”), and all claims within Patent
Rights claiming such Inventions and Know-How.  Senomyx hereby irrevocably assigns
to Ajinomoto all right, title and interest in and to any such Senomyx Sole
Inventions [...***...] that consist of improvements to the Ajinomoto
Technology, excluding Jointly Owned Technology (“Ajinomoto Improvements”), and
all claims within Patent Rights claiming such Senomyx Sole Inventions, subject
to any license granted to Senomyx pursuant to Section 7.  In the event that Senomyx is legally unable
to assign such rights to Ajinomoto, then Senomyx agrees either to waive the
enforcement of such rights against Ajinomoto and any sublicensees and assignees,
or to grant Ajinomoto an Exclusive, irrevocable, perpetual, worldwide, fully
paid-up license, with right to sublicense through multiple tiers of sublicense,
to such rights, subject to any license granted to Senomyx pursuant to
Section 7.

8.3                                 Ajinomoto
Sole Inventions.  Ajinomoto will own all Inventions
and other Know-How made solely by its employees and agents under this
Agreement, [...***...], (“Ajinomoto Sole Inventions”), and all claims within
Patent Rights claiming such

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Inventions and Know-How.  Ajinomoto hereby irrevocably assigns to Senomyx all
right, title and interest in and to any such Ajinomoto Sole Inventions
[...***...] that consist of improvements to the Senomyx Technology, excluding
Jointly Owned Technology (“Senomyx Improvements”) and all claims within Patent
Rights claiming such Ajinomoto Sole Inventions. 
In the event that Ajinomoto is legally unable to assign such
rights to Senomyx, then Ajinomoto 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-up license, with right to sublicense through multiple tiers of
sublicense, to such rights.  
Notwithstanding anything to the contrary in this Agreement, at no time
during or for [...***...] after the Term will Ajinomoto file Patent Rights
disclosing Senomyx Confidential Information.

8.4                                 Joint Inventions.  All Inventions and other Know-How made under
this Agreement jointly by employees or agents of Senomyx and employees or
agents of Ajinomoto (the “Joint Inventions”) and all claims within Patent
Rights claiming such Joint Inventions will be owned jointly by Ajinomoto and
Senomyx.  Ajinomoto hereby irrevocably
assigns to Senomyx all interest in and to any Joint Inventions made in the
course of [...***...] Program III during the Collaborative Period that consist
of Senomyx Improvements and all claims within Patent Rights claiming such Joint
Inventions.  In the event that Ajinomoto
is legally unable to assign such rights to Senomyx, then Ajinomoto 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-up license, with right to sublicense
through multiple tiers of sublicense, to such rights.  Senomyx hereby irrevocably assigns to
Ajinomoto all interest in and to any Joint Inventions made in the course of
[...***...] Program III during the Collaborative Period that consist of
Ajinomoto Improvements, and all claims within Patent Rights claiming such Joint
Inventions, subject to any licenses granted to Senomyx pursuant to Section 7.  In the
event that Senomyx is legally unable to assign such rights to Ajinomoto, then
Senomyx agrees either to waive the enforcement of such rights against Ajinomoto
and any sublicensees and assignees, or to grant Ajinomoto an Exclusive,
irrevocable, perpetual, worldwide, fully paid-up license, with right to sublicense
through multiple tiers of sublicense, to such rights, subject to any license
granted to Senomyx pursuant to
Section 7.

8.5                                 Ajinomoto [...***...] Compounds.  As between the parties, Ajinomoto [...***...]
Compounds and, subject to Section 8.6 with respect to Modifications,  all claims within Patent Rights claiming
compositions of matter and/or use of and/or methods or processes for making
such

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Ajinomoto [...***...] Compounds shall be owned solely by
[...***...].  For the avoidance of doubt, this Section 8.5
shall not be construed as granting rights to [...***...] to [...***...]
Compounds Known to [...***...] or to any Patent Rights, which claim such
[...***...] Compounds Known to [...***...], owned or Controlled by [...***...]
prior to [...***...] of the applicable Ajinomoto [...***...] Compound.  [...***...] hereby irrevocably assigns to [...***...]
all interest in and to any Ajinomoto [...***...] Compounds and, subject to Section
8.6 with respect to Modifications, all claims within Patent Rights claiming
compositions of matter and/or use of and/or methods or processes for making
such Ajinomoto [...***...] Compounds.  In
the event that [...***...] is legally unable to assign such rights to [...***...],
then subject to the terms and conditions of this Agreement, including, without limitation,
[...***...], [...***...] agrees either to waive the enforcement of such rights
against [...***...], or to grant [...***...] an Exclusive, irrevocable,
perpetual, worldwide fully paid-up [...***...].

8.6                                 Modifications.  The
parties acknowledge that the intent of this Agreement is to find Ajinomoto
[...***...] Compounds which are [...***...]. 
Accordingly, notwithstanding anything to the contrary contained in
Sections 8.2, 8.3, or 8.4 hereof or in the First Collaboration Agreement, any
Modifications [...***...], with respect to any Ajinomoto [...***...] Compound
at any time during the longer of the term of the First Collaboration
Agreement or [...***...] from the date of the [...***...] with respect to such
Ajinomoto [...***...] Compound and, subject to Section 8.5 with
respect to Ajinomoto [...***...] Compounds, all claims within Patent Rights
claiming the composition of matter and and/or use of and/or methods or
processes for making any such Modifications will be [...***...], subject to
the licenses granted to [...***...]. 
Ajinomoto hereby irrevocably assigns to [...***...] all interest in and
to the composition of matter and/or use of and/or methods or processes for
making any such Modifications and, subject to Section 8.5 with respect to
Ajinomoto [...***...] Compounds, all claims within Patent Rights claiming
compositions of matter and/or use of and/or methods or processes for making
such Modifications.  In the event that
[...***...] is legally unable to assign such rights to [...***...], then [...***...]
agrees either to waive the enforcement of such rights against

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[...***...], or to grant [...***...] an Exclusive,
irrevocable, perpetual, worldwide, fully paid up license, with right to
sublicense through multiple tiers of sublicense, to such rights.  [...***...]

8.7                                 Non-Limitations
on License
to [...***...] Compounds; Limitation on Licenses under Section
7.2.

8.7.1                        License
of [...***...] Compounds.  Subject
to the limitations in Section 8.7.2, [...***...] may license or sublicense
rights to [...***...] Compounds to third parties, including without limitation,
its Affiliates, on the condition that [...***...].  [...***...] will agree to be responsible for
and to [...***...] by any of [...***...]. 
Any licenses or sublicenses to [...***...] Compounds will be subject to
written license agreements.  [...***...]
agrees to cause each of its permitted licensees or sublicensees to agree in
writing (i) to assign to [...***...], directly or via [...***...], all interest
in and to the composition of matter and/or use of and/or methods or processes
of making [...***...] and all claims within Patent Rights claiming compositions
of matter and/or use of and/or methods or processes of making such [...***...],
and (ii) that in the event that any such licensee or sublicensee is legally
unable to assign such rights to [...***...], directly or via [...***...], then
such licensee or sublicensee shall either waive the enforcement of such rights
against [...***...] and its licensees and sublicensees, or grant [...***...], directly or
via [...***...], an Exclusive, irrevocable, perpetual, worldwide, fully paid up
license, with right to sublicense through multiple tiers of sublicense, to such
rights.  [...***...] will notify [...***...]
of each license and sublicense and the identity of the licensees and
sublicensees thereof and will provide [...***...] with a copy of [...***...],
which shall be [...***...], provided that [...***...] may [...***...], other
than [...***...] for [...***...] Products, [...***...]

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[...***...].  Licenses or sublicenses by [...***...] to
Third Parties shall be [...***...].

8.7.2                        Sublicense
under Section 7.2.  Except as
provided below, Ajinomoto may not sublicense its rights under Section 7.2 to
third parties.  Ajinomoto may sublicense
its rights under Section 7.2 to any Affiliates, on the condition that
[...***...], if any.

8.8                                 Other Inventions.  Any
Inventions not included in Sections 8.2, 8.3, 8.4, 8.5 or 8.6 will be owned by their
inventors, including, without limitation,
(i) any Invention by an Ajinomoto scientist that is not a Joint Invention or a
Senomyx Improvement made [...***...] shall be owned solely by Ajinomoto; or
(ii) any Invention by a Senomyx scientist that is not a Joint Invention or an
Ajinomoto Improvement made [...***...] shall be owned solely by Senomyx.

8.9                                 Inventorship and Assignment.  Subject to the provisions of this Section 8,
United States federal intellectual property law will determine inventorship of and
ownership of patentable inventions, including, without limitation, Inventions
conceived jointly by the parties and Inventions conceived solely by one party
or the other.  Subject to the provisions
of Section 5, each of Senomyx and Ajinomoto agrees to promptly disclose to
the other party Inventions and Know-How owned or to be owned by such other
party pursuant to the provisions of Section 8, and to execute all documentation
necessary to perfect all assignments of Inventions, including without limitation,
Ajinomoto [...***...] Compounds and Modifications, and all claims within Patent
Rights claiming any such Inventions, and effect the agreements with respect to
ownership contemplated under this Section 8.

8.10                           CREATE Act. 
The parties intend for this Agreement to qualify for the benefits of the
Cooperative Research and Technology Enhancement (CREATE) Act (35 U.S.C. §
103(c)).  Accordingly, each party agrees,
without demanding any further consideration therefor, at the request of the
other party, to do (and cause its employees to do) all lawful and just acts
that may be or become necessary for evidencing, maintaining, recording and
perfecting the benefits of the CREATE Act.

8.11                           Markings.  [...***...] shall have the exclusive right to
determine, in its sole discretion, whether and how [...***...] shall mark any
[...***...] Products (or their
containers or labels) with any notice of Patent Rights.

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9.                                       Treatment
of Confidential Information; Publicity.

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

9.2                                 Disclosure to Related Parties.  Senomyx and Ajinomoto each agree that any
disclosure to any of its Affiliates,
or to its or their respective directors, officers, employees
contractors, consultants, licensees, sublicensees or agents of the other party’s
Confidential Information 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 the other party’s Confidential
Information, which will be the same efforts as it would customarily take to
preserve the confidentiality of its own Confidential Information.

9.3                                 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, including without limitation, any Know-How licensed under this
Agreement, received from the other party, including without limitation all samples and copies and extracts of documents and all Confidential Information stored in
machine readable form, within [...***...] of the date of receipt of the
request of such other party; provided, however, that one copy of
the Confidential Information may be retained in a secure location with limited
access for ensuring legal compliance with any ongoing obligation of
confidentiality.

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

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

9.4.2                        is known
by the receiving party prior to receiving such information, as evidenced by its
records;

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9.4.3                        is
hereafter furnished to the receiving party without restriction as to disclosure
or use by a third party lawfully entitled to furnish such information;

9.4.4                        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

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

A party may also disclose the other party’s Confidential Information where required to do so by law, legal process, securities related regulations or by stock exchange rules; 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 to the extent reasonably possible and must cooperate with the other party’s efforts to seek at its expense, at the request of the other party, all confidential treatment and protection for such disclosure as is permitted by applicable laws, regulations and rules; provided  further that the relevant party may disclose the other party’s Confidential Information only to those persons to whom disclosure is so required.  Anything in this Section 9.4 to the contrary notwithstanding, the exceptions provided in Sections 9.4.2 and 9.4.4 above shall not apply to information developed by Ajinomoto, independently and/or jointly with Senomyx, that constitutes an Ajinomoto Improvement or information developed by Senomyx, independently and/or jointly with Ajinomoto, that constitutes a Senomyx Improvement.

9.5                                 Confidential Information Regarding this Agreement.  The parties agree that the terms and conditions of this Agreement
will be considered Confidential Information of both parties.  Notwithstanding the foregoing, either party
may disclose such terms and conditions in
legal proceedings or as are required to be disclosed in its financial
statements, by law, legal process, securities related regulations or by stock
exchange rules, or under an obligation of confidentiality to bona fide
permitted potential sublicensees.  Either
party will have the further right to disclose such terms and conditions regarding this Agreement under an
obligation of confidentiality to any [...***...].  Senomyx agrees not to discuss [...***...].

9.6                                 Confidential Research Information.  Subject to the provisions of Sections 3.5 and
8 regarding ownership of certain regulatory data and intellectual property, the
parties agree that all results and data generated from the research and
development by a party under [...***...] Program III will be owned [...***...]
and considered Confidential

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Information of [...***...]
subject to the confidentiality requirements of this Section 9.  Senomyx will not provide to a Third Party any
[...***...] provided to it by [...***...]. 
Ajinomoto will not provide to a Third Party any [...***...] provided to
it by Senomyx.

9.7                                 Use of Data for Promotional Purposes.  Either party may (i) make public statements regarding Ajinomoto
[...***...] Compounds or Ajinomoto [...***...] Products by announcing the
achievement of milestones, following consultation with the other party and with
the prior written consent of the other party, which consent will not be
unreasonably withheld, and (ii) without the prior consent of the other party,
make public statements regarding the overall general success rate(s) achieved
by and/or for its customers under this Agreement; provided, however,
that it may not disclose any chemical structures, screens, or the other party’s
identity.

9.8                                 Permitted Use and Disclosures.  Each party may use or disclose the other
party’s Confidential Information to the extent such information is included in
the Ajinomoto Technology, Senomyx Technology or Joint Inventions, 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 or stock exchange
regulations, or court orders or otherwise submitting information to tax or
other governmental authorities, conducting taste testing, submitting
information for regulatory 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 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.

9.9                                 Publication of Results.  The parties acknowledge that scientific
lead-time is a key element of the value of the research and development
activities under [...***...] Program III and further agree that scientific
publications must be strictly monitored to prevent any adverse effect from
premature publication of results of
the research or development activities hereunder.  At least [...***...] days prior to submission
of any material related to the research or development activities hereunder for
publication or presentation, the submitting party shall provide to the other
party a draft of such material for its review and comment.  The receiving party shall provide any
comments to the submitting party within [...***...] days of

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receipt of such materials.  No publication or presentation with respect
to the research or development activities hereunder shall be made unless and
until the other party’s comments on the proposed publication or presentation
have been addressed and changes have been agreed upon and any information
reasonably determined by the other party to be Confidential Information has
been removed.  If requested by the other
party, the submitting party shall withhold material from submission for
publication or presentation for an additional [...***...] to allow for the filing of a
patent application or the taking of such measures to establish and preserve
proprietary rights in the information in the material being submitted for
publication or presentation.

9.10                           Press Releases.  Notwithstanding the foregoing, the parties
will agree upon a press release to announce the execution of this Agreement and
its material terms, the form of which press release is attached as Appendix B to
this Agreement.  Thereafter, Ajinomoto
and Senomyx may each disclose to third parties the information contained in
such press releases as described in Appendix B without the need for further
approval by the other party.  Additional
press releases or other similar public communication by either party relating
to this Agreement shall be approved in advance by the other party, which
approval shall not be unreasonably withheld or delayed, and disclosures of
information for which consent has previously been obtained, and information of
a similar nature to that which has been previously disclosed publicly in
accordance with this Agreement, shall not require advance approval.

10.                                 Intellectual Property Enforcement and Defense of Claims.

10.1                           Notice of Infringement. 
If Senomyx or Ajinomoto determines that any Ajinomoto Technology or
Jointly Owned Technology is being infringed by a Third Party’s activities and
that such infringement could affect the exercise by the parties of their
respective rights and obligations under this Agreement, it shall promptly
notify the other party in writing and provide such other party with any
evidence of such infringement that is reasonably available.  Promptly after the receipt of such written
notice, the parties shall meet and discuss in good faith how to stop such
infringement.  The pursuing party shall
consider in good faith any comments from the other party and shall keep the
other party reasonably informed of any steps taken to stop such infringement.

10.2                           Ajinomoto Patent Rights. 
With respect to Ajinomoto Patent Rights, Ajinomoto shall have the exclusive
right to take action to remove such infringement using commercially appropriate
steps, including without limitation, the filing of an infringement suit or
other similar action.  Notwithstanding
the foregoing, in the event Ajinomoto (i) fails to take commercially
appropriate steps to remove any infringement of any Ajinomoto Patent Rights
covering Ajinomoto [...***...] Compounds as a

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composition of matter and/or use and/or methods or
processes for making within [...***...] following its receipt of written notice
of such infringement, or (ii) earlier notifies Senomyx of its intent not to
take such steps, then Senomyx shall have the right to do so at its expense; provided,
however, that if Ajinomoto has commenced negotiations with an alleged
infringer for discontinuance of such infringement within such [...***...]
period, Ajinomoto
shall have an additional [...***...] to conclude its negotiations before Senomyx may bring suit for such
infringement or take other similar action.

10.3                           Jointly Owned.  With
respect to Jointly Owned Technology, [...***...] shall have the first right to
take action to remove such infringement using commercially appropriate steps,
including without limitation, the filing of an infringement suit or other
similar action.  In the event [...***...]
fails to take commercially appropriate steps to remove any infringement of any
such Jointly Owned Technology within [...***...] following notice of such
infringement, or earlier notifies [...***...] of its intent not to take such
steps, then [...***...] shall have the right to do so at its expense; provided,
however, that if [...***...] has commenced negotiations with an alleged
infringer for discontinuance of such infringement within such ninety (90) day
period, [...***...] shall have an additional [...***...] to conclude its
negotiations before [...***...] may bring suit for such infringement or take
other similar action.

10.4                           Other Technology. 
With respect to technology of a party that is not Ajinomoto Technology
or Jointly Owned Technology, the owner of such technology shall have the sole
right, but not the obligation, to take action to stop such infringement.

10.5                           Recovery.  Any amounts
recovered by a party pursuant to Section 10.2 or 10.3 whether by settlement or
judgment, shall be used to reimburse the parties for their reasonable costs and
expenses in making such recovery (which amounts shall be allocated pro rata, in
accordance with the relative amount of expenses incurred by each party, if
insufficient to cover the aggregate amount of such expenses), with any
remainder being retained by the party [...***...].

10.6                           Third Party Litigation. 
In the event that a Third Party institutes a patent or other
infringement suit (including any suit alleging the invalidity or
unenforceability of the Patent Rights of a party or its Affiliates) against
either party or its respective Affiliates or permitted licensees under this
Agreement during the Term, alleging that the Exploitation of the Ajinomoto
[...***...] Products or any other activities hereunder, infringes one or more
Patent Rights or other intellectual property rights held by such

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Third Party (an “Infringement Suit”), the parties
shall cooperate with one another in defending such suit.  With respect to Jointly Owned Technology, the
parties shall jointly direct and control any Infringement Suit with respect to
Ajinomoto [...***...] Products or any Jointly Owned Technology.  Each party shall have the sole right to
direct and control (including the right to cease to defend, settle or
compromise) any Infringement Suit with respect to its Technology.  The parties shall [...***...] of any costs
and expenses of such defense with respect to the Joint Technology.

11.                                 Patent Prosecution and Maintenance.  Each party, at its sole cost, will have the
right to file, prosecute and maintain patents and patent applications
associated with Inventions owned by or assigned to such party under this
Agreement, Subject to 11.1 below.  The
parties shall cooperate on filing, prosecution and maintaining patents and
patent applications associated with Jointly Owned Technology and will
[...***...].

11.1                           [...***...] Compounds.  Notwithstanding Section 12 of the First
Collaboration Agreement,

11.1.1                  Trade Secret Protection. 
[...***...]
shall decide, in its sole discretion, whether to retain any [...***...] Compound [...***...] as
Confidential Information of [...***...], [...***...]
shall be under no obligation to file or prosecute any such Patent Rights
covering any [...***...] Compound
and [...***...] will continue to be bound by, among other obligations, its
obligations under the last sentence of Section 8.7 of the First Collaboration
Agreement for so long as such [...***...] Compound remains Confidential Information of [...***...].

11.1.2                  Drafting of Initial Patent
Filings.  If [...***...] decides to file
Patent Rights covering an [...***...] Compound, [...***...] will have the right to file and
prosecute Patent Rights claiming such [...***...] Compound according to the
terms of this Section 11.1.  In the event
that [...***...] decides to file any patent application claiming any
[...***...] Compound, [...***...] may include in such draft patent application
claims to [...***...].  [...***...] will
have the primary responsibility for drafting the specifications and claims for
[...***...] Compounds and [...***...]. 
[...***...] will have the primary responsibility for drafting the
specifications and claims for [...***...].

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11.1.3                  Review Process for Initial Patent Filings.  Whether or not any [...***...] are included
in a patent application provided for in Section 11.2.1, [...***...] will provide such proposed patent
application to [...***...] for review and comment at least [...***...] before
filing and shall allow [...***...] from the date of receipt in which to comment
in order to add claims and supporting specification language covering any
[...***...].  In connection with any such
patent application, Senomyx and Ajinomoto acknowledge that [...***...] controls the drafting of claims
covering [...***...], in accordance with the definitions thereof and other
provisions related thereto.  [...***...] will incorporate [...***...] to
comply with [...***...] to revise or add claims and specification language
covering [...***...].  [...***...]
shall comply with [...***...]
to include in such patent application claims covering and/or expanding the
scope of any existing claims covering [...***...].  If no answer is received from [...***...]
within [...***...] of receipt of the proposed patent application, [...***...] shall be free to submit such
proposed patent application.

11.1.4                  Prosecution.  With
respect to patent applications filed in accordance with this Section 11.1, the
parties will discuss and agree at least [...***...] before the due date of
thirty-month National Phase filings, in which countries/regions to file patent
applications claiming such compounds. 
Notwithstanding the foregoing, [...***...] may file in any
country/region notwithstanding that [...***...].  [...***...] agrees to keep [...***...],
including, without limitation, by [...***...] for review and comment in good
time to enable [...***...] to meet any deadline by which an action must be
taken.  [...***...] shall hold all such
information disclosed to it under this Section 11.1 as Confidential Information
under Section 9.

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11.1.5                  Abandonment. 
[...***...] may, at any time after filing Patents Rights claiming any
[...***...] Compounds, but before the publication thereof, withdraw such
filing, whether or not any claims [...***...] are contained therein, without
[...***...], and such [...***...] Compound shall continue to be Confidential
Information of [...***...]; provided, however, that [...***...]
shall inform [...***...] prior to such withdrawal.  For the avoidance of doubt, in such case
[...***...] may [...***...].  If
[...***...] does not wish to file a National Phase application in any country,
or [...***...] otherwise elects to abandon the prosecution or maintenance of
Patent Rights filed in accordance with this Section 11.1 in a particular
country/region at any time following publication, then in each such case,
[...***...] will [...***...] to meet any deadlines by which an action must be
taken to establish or preserve any such Patent Rights in such country/region
and [...***...] of such Patent Rights [...***...] in such country/region.  If [...***...] elects to [...***...], then
[...***...] shall notify [...***...] of such election and (i) [...***...]
shall, [...***...] (x) reasonably cooperate with [...***...] in this regard,
and (y) [...***...] such Patent Rights in such country/region, (ii) [...***...]
shall be deemed to [...***...] with respect to claimed [...***...] Compounds
and to retain any licenses provided for in the First Collaboration Agreement to
Modifications claimed by such Patent Rights and (iii) [...***...] shall
[...***...].

11.1.6                  Modifications.  This
Section 11.1 shall not be construed as granting Ajinomoto any right, title or
interest in or to any Patent Rights owned by Senomyx including, without
limitation, [...***...].

11.1.7                   Documents provided by Ajinomoto to Senomyx
under this Section 11.1 shall be in English.

12.                                 Manufacturing.  For the
avoidance of doubt, Senomyx will [...***...] for Ajinomoto [...***...]
Compounds.

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13.                                 Term, Early Conclusion and Termination.

13.1                           Term. 
The term of this Agreement will begin on the Effective Date and will
continue through the end of the
last-to-expire [...***...] Term, unless terminated earlier by either party or both parties in accordance
with the provisions of this Section 13
(the “Term”).

13.2                           Termination by Ajinomoto.  During the Collaborative Period, Ajinomoto
will have the right to terminate this Agreement without cause [...***...] prior
written notice to Senomyx; provided, however, if such termination
occurs prior to the end of the Collaborative Period, to provide for the orderly
wind down of research activities under [...***...] Program III, Ajinomoto shall
[...***...].  After the Collaborative
Period, Ajinomoto will have the right to terminate this Agreement without cause
upon [...***...] prior written
notice to Senomyx.

13.3                           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.

13.4                           Termination for Breach. Either party has
the right to terminate this Agreement at any time in the event of a material breach of this Agreement by the other
party (including without limitation a material breach of one or more
representations and warranties), provided that the breaching party has not
cured such breach within [...***...] after written notice thereof by the
non-breaching party.  The terminating party, upon termination of
this Agreement, may [...***...].

13.5                           Termination Upon Insolvency.  Either party may terminate this Agreement if,
at any time, the other party shall file in any court or agency pursuant to any
statute or regulation of any state, country or jurisdiction, a petition in
bankruptcy or insolvency or for reorganization or for an arrangement or for the
appointment of a receiver or trustee of that party or of its assets, or if such
other party proposes a written agreement of composition or extension of its
debts, or if such other party shall be served with an involuntary petition
against it, filed in any insolvency proceeding, and such petition shall not be
dismissed within [...***...] after the filing thereof, or if such other party
shall propose or be a party to any dissolution or liquidation, or if such other
party shall make an assignment for the benefit of its creditors.

13.6                           Limitation of Liability. 
NOTWITHSTANDING ANYTHING TO THE CONTRARY IN THIS AGREEMENT, NEITHER
PARTY WILL SEEK OR BE RESPONSIBLE FOR [...***...]

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[...***...] IN EXCESS OF [...***...] IN THE AGGREGATE
UNDER ANY THEORY OF LIABILITY, INCLUDING TORT, CONTRACT,
NEGLIGENCE OR OTHERWISE UNDER THIS AGREEMENT AND NEITHER PARTY WILL SEEK OR BE
RESPONSIBLE FOR [...***...] (INCLUDING, WITHOUT LIMITATION, ANY AND ALL CLAIMS
ARISING PURSUANT TO THIS SECTION 13 OR SECTION 15).

14.                                 Effect of Expiration
or Termination.

14.1                           Termination of Licensed Rights.   Upon termination of this Agreement pursuant to Section 13, any licenses granted
by Ajinomoto pursuant to Section 7 shall immediately terminate and all rights,
title and interest in and to any Ajinomoto Technology granted thereunder will
revert to and become the sole property of Ajinomoto.  Subject to the provisions of Section 14.2, upon termination of this Agreement pursuant to Section 13, any licenses granted
by Senomyx pursuant to Section 7 shall immediately terminate and all rights,
title and interest in and to any Senomyx Technology granted thereunder will
revert to and become the sole property of Senomyx.

14.2                           Accrued Rights.  Upon expiration of the last to expire
[...***...] Term, provided that Ajinomoto has fully paid any and all
[...***...] owed pursuant to Section 6 throughout any and all [...***...]
Term(s), [...***...] under [...***...]. 
Termination or expiration of this Agreement for any reason shall be
without prejudice to any rights that shall have accrued to the benefit of a
party prior to such termination or expiration. Such termination or expiration
shall not relieve a party from obligations that are expressly indicated to
survive the termination or expiration of this Agreement.  Anything in this Agreement to the contrary
notwithstanding, in the event of termination of this Agreement by Ajinomoto
pursuant to Sections 13.4 or 13.5, Ajinomoto shall be [...***...] after the
effective date of the termination (“Termination Date”), (ii) [...***...]
pursuant to Section 13.2, and (iii) if the Termination Date falls on a date
prior to the end of a Minimum Annual Royalty Year, [...***...] applicable to
such Minimum Annual Royalty Year.

14.3                           Survival. 
The obligations and rights of the parties under Sections 3.2.2, 3.2.3 (except
for the first sentence), 3.3, 3.4, 6.2 through 6.9, 8, 9, 10.2 through
10.6, 11, 12, 13, 14, 15, 16, and Appendix A, will survive termination or
expiration of this Agreement; provided, however, that
notwithstanding the foregoing, (i) in no event shall Sections 3.3 and 3.4.3
survive after [...***...] for any Ajinomoto

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[...***...] Compound; and (ii) in no event shall
Section 10.2 (except for the first sentence) survive [...***...] for any
Ajinomoto [...***...] Compound covered by any such Ajinomoto Patent Rights.

15.                                 Warranties and Indemnification.

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

15.1.1                  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.

15.1.2                  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.

15.1.3                  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 requirement of applicable law or regulation or stock exchange rule or
any provision of the articles of incorporation, bylaws or any similar
instrument of such party, as applicable, in any material way, (iii) 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, or order of any court,
governmental body or administrative or other agency having jurisdiction or
authority over it; and (iv) all necessary consents, approvals and
authorizations of all governmental authorities and

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other persons required to be obtained by it in
connection with this Agreement have been obtained.

15.1.4                  Litigation. 
Neither party is aware of any pending or threatened litigation (and has
not received any communication) that alleges that such party’s activities
related to this Agreement has violated, or that by conducting the activities as
contemplated herein such party would violate, any of the intellectual property
rights of any other party.

15.1.5                  Debarment. 
Neither party nor any of its Affiliates has been debarred or is subject
to debarment and neither such party nor any of its Affiliates will use in any
capacity, in connection with the activities to be performed under this
Agreement, any party who has been debarred pursuant to Section 306 of the
Federal Food, Drug, and Cosmetic Act, as amended, or the Japanese equivalent,
or who is the subject of a conviction described in such section.  Each party will inform the other party in
writing immediately if it or any party who is performing services hereunder is
debarred or is the subject of a conviction described in Section 306 or its
Japanese equivalent, or if any action, suit, claim, investigation or legal or
administrative proceeding is pending or, to such party’s knowledge, is
threatened, relating to the debarment or conviction of such party or any party
performing activities hereunder.

15.2                           Representations, Warranties and
Covenants Regarding Senomyx Technology. Senomyx represents, warrants and covenants as follows:  (i) as of the Effective Date, Senomyx is
either the legal or beneficial owner or Controls the Senomyx Technology; (ii)
as of the Effective Date, to the best of Senomyx’s knowledge, there is no Third
Party claim, lawsuit or threat of a lawsuit relating to the Senomyx Technology
and Senomyx is not aware of any threats or warnings of such a Third Party suit;
and (iii) Senomyx has not, as of the Effective Date, and except as otherwise
permitted under this Agreement, will not for the duration of the Term, enter
into any research program or grant any rights in Senomyx Technology to any
Third Party that would conflict with the exercise of the rights granted to
Ajinomoto under this Agreement.

15.3                           Representations, Warranties and
Covenants Regarding Ajinomoto Technology.  Ajinomoto represents, warrants and
covenants as follows:  (i) as of the
Effective Date, Ajinomoto is either the legal or beneficial owner or Controls
and has the lawful right to license the Ajinomoto Technology to Senomyx in accordance
with Section 7; (ii) as of the Effective Date, to the best of Ajinomoto’s
knowledge, there is no Third Party claim, lawsuit or threat of a lawsuit
relating to the Ajinomoto Technology and Ajinomoto is not aware of any threats
or warnings of such a Third Party suit; (iii) Ajinomoto has not, as of the
Effective Date, and

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except as otherwise permitted
under this Agreement, will not for the duration of the Term, enter into any
research program or grant any rights in Ajinomoto Technology to any Third Party
that would conflict with the exercise of the rights granted to Senomyx under
this Agreement; and (iv) as of the Effective Date, no intellectual property
rights of any Third Party are included in the Ajinomoto Technology being
licensed to Senomyx under Section 7.

15.4                           Warranty Disclaimer.

15.4.1                  EXCEPT
AS EXPRESSLY SET FORTH IN THIS AGREEMENT, (1) 
SENOMYX (INCLUDING ITS OFFICERS, EMPLOYEES AND AGENTS) EXPRESSLY
DISCLAIMS ANY REPRESENTATIONS AND WARRANTIES, WHETHER EXPRESS OR IMPLIED,
RELATING TO SENOMYX TECHNOLOGY; AND (2) 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, WITHOUT LIMITATION, SENOMYX TECHNOLOGY CLAIMED IN PATENT
APPLICATIONS AS PART OF SENOMYX PATENT RIGHTS.

15.4.2                  EXCEPT
AS EXPRESSLY SET FORTH IN THIS AGREEMENT, (1) 
AJINOMOTO (INCLUDING ITS OFFICERS, EMPLOYEES AND AGENTS) EXPRESSLY
DISCLAIMS ANY REPRESENTATIONS AND WARRANTIES, WHETHER EXPRESS OR IMPLIED,
RELATING TO AJINOMOTO TECHNOLOGY; AND (2) AJINOMOTO FURTHER DISCLAIMS ANY
EXPRESS OR IMPLIED WARRANTY (i) OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR
PURPOSE OF AJINOMOTO TECHNOLOGY OR AJINOMOTO PATENT RIGHTS; (ii) THAT THE
PRACTICE OF AJINOMOTO TECHNOLOGY WILL NOT INFRINGE A PATENT, COPYRIGHT,
TRADEMARK OR OTHER RIGHT OF A THIRD PARTY; AND (iii) REGARDING THE
PATENTABILITY OF ANY AJINOMOTO TECHNOLOGY, INCLUDING, WITHOUT LIMITATION,
AJINOMOTO TECHNOLOGY CLAIMED IN PATENT APPLICATIONS AS PART OF AJINOMOTO PATENT
RIGHTS.

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15.5                           Indemnification of Ajinomoto.  Senomyx
shall indemnify Ajinomoto, its Affiliates and their respective directors,
officers, employees and agents (collectively, “Ajinomoto Indemnitees”), and
defend and save each of them harmless, from and against any and all losses,
damages, liabilities, costs and expenses (including without limitation,
reasonable attorneys’ fees and expenses) (collectively, “Losses”) in connection
with any and all Third Party suits, investigations, claims or demands (collectively,
“Third Party Claims”) arising from or occurring as a result of (a) any
material breach by Senomyx of this Agreement; (b) any representation or
warranties made by Senomyx herein having been incorrect or misleading in any
material respect; (c) any gross negligence or willful misconduct on the
part of Senomyx or its Affiliates in performing any activity contemplated by
this Agreement (for the avoidance of doubt, failure by Senomyx to disclose to
Ajinomoto a [...***...]; (d) a material violation of any contractual or
fiduciary duty owed by any Senomyx Indemnitee (as defined in Section 15.6) to a Third Party; (e) any alleged
or actual misappropriation or infringement of any Third Party’s intellectual
property rights by a Senomyx Indemnitee; or (f) any alleged or actual
misappropriation or infringement of any Third Party’s intellectual property
rights arising out of any use of the Senomyx Technology (except for Jointly
Owned Technology).  Notwithstanding the
foregoing, Senomyx shall have no obligation to indemnify an Ajinomoto
Indemnitee to the extent, and only to the extent, that Ajinomoto has an
obligation to indemnify any Senomyx Indemnitee pursuant to Section 15.6 for any
such Losses.

15.6                           Indemnification of Senomyx.  Ajinomoto shall indemnify Senomyx,
its Affiliates and their respective directors, officers, employees and agents
(collectively “Senomyx Indemnitees”), and defend and save each of them
harmless, from and against any and all Losses in connection with any and all
Third Party Claims arising from or occurring as a result of (a) any
material breach by Ajinomoto of this Agreement; (b) any representation or
warranties made by Ajinomoto herein having been incorrect or misleading in any
material respect; (c) any gross negligence or willful misconduct on the
part of Ajinomoto or its Affiliates in performing any activity contemplated by
this Agreement (for the avoidance of doubt, failure by Ajinomoto to disclose to
Senomyx a [...***...];
(d) any development,
manufacturing, formulation, handling, storage, shipment, sale or other
disposition of an Ajinomoto [...***...] Compound by or through Ajinomoto
or its Affiliates or its

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permitted licensees; (e) a product liability claim on
any [...***...] Product; (f)
a material violation of any contractual
or fiduciary duty owed by any Ajinomoto Indemnitee to a Third Party; (g) any
alleged or actual misappropriation or
infringement of any Third Party’s intellectual property rights by an Ajinomoto
Indemnitee; or (h) any alleged or
actual misappropriation or infringement of any Third Party intellectual
property rights arising out of any use of the Ajinomoto Technology (except for
Jointly Owned Technology). 
Notwithstanding the foregoing, Ajinomoto shall have no obligation to
indemnify a Senomyx Indemnitee, except
to the extent, and only to the extent, Senomyx has an obligation to indemnify
any Ajinomoto Indemnitee pursuant to Section 15.5 for any such Losses.

15.7                           Notice of Claim.  The indemnified party shall give the
indemnifying party prompt written notice (an “Indemnification Claim Notice”) of
any Losses or discovery of fact upon which such indemnified party intends to
base a request for indemnification under Section 15.5 or Section 15.6, but in
no event shall the indemnifying party be liable for any Losses that result from
any delay in providing such notice.  Each
Indemnification Claim Notice must contain a description of the claim and the
nature and amount of such Loss (to the extent that the nature and amount of
such Loss are known at such time).  The
indemnified party shall furnish promptly to the indemnifying party copies of
all papers and official documents received in respect of any Losses.  All indemnification claims in respect of a
party, its Affiliates or their respective directors, officers, employees and
agents (collectively, the “Indemnitees” and each an “Indemnitee”) shall be made
solely by such party to this Agreement (the “Indemnified Party”).

15.8                           Control of Defense.  At its option, the indemnifying party may
assume the defense of any Third Party Claim by giving written notice to the
Indemnified Party within [...***...] after the indemnifying party’s receipt of
an Indemnification Claim Notice.  The
assumption of the defense of a Third Party Claim by the indemnifying party
shall not be construed as an acknowledgment that the indemnifying party is
liable to indemnify any Indemnitee in respect of the Third Party Claim, nor
shall it constitute a waiver by the indemnifying party of any defenses it may
assert against any Indemnitee’s claim for indemnification.  Upon assuming the defense of a Third Party
Claim, the indemnifying party may appoint as lead counsel in the defense of the
Third Party Claim any legal counsel selected by the indemnifying party.  In the event the indemnifying party assumes
the defense of a Third Party Claim, the Indemnified Party shall immediately
deliver to the indemnifying party all original notices and documents (including
without limitation, court papers) received by any Indemnitee in connection with
the Third Party Claim.  Should the
indemnifying party assume the defense of a Third Party Claim, the indemnifying
party shall not be liable to the Indemnified Party or any other Indemnitee for
any legal expenses subsequently incurred by such

***Confidential
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 33
 

Indemnified Party or
other Indemnitee in connection with the analysis, defense or settlement of the
Third Party Claim.  In the event that it
is ultimately determined that the indemnifying party is not obligated to indemnify,
defend or hold harmless an Indemnitee from and against the Third Party Claim,
the Indemnified Party shall reimburse the indemnifying party for any and all
costs and expenses (including without limitation, attorneys’ fees and costs of
suit) and any Losses incurred by the indemnifying party in its defense of the
Third Party Claim with respect to such Indemnitee.

15.9                           Right to Participate in Defense.  Without limiting the provisions of Section
15.8, any Indemnitee shall be entitled to participate in, but not control, the
defense of such Third Party Claim and to engage counsel of its choice for such
purpose; provided, however, that such engagement shall be at the
Indemnitee’s own expense unless (a) the engagement thereof has been
specifically authorized by the indemnifying party in writing, (b) the
indemnifying party has failed to assume the defense and engage counsel in
accordance with Section 15.8 (in which case the Indemnified Party shall control
the defense), or (c) in the Indemnitee’s reasonable judgment, a material
conflict of interest between the Indemnitee and the indemnifying party exists
in respect of such Third Party Claim, provided that, in any event, the other
provisions of this Section 15.9 shall continue to apply to such Third Party
Claim.

15.10                     Settlement. 
With respect to any Losses relating solely to the payment of money
damages in connection with a Third Party Claim and that will not result in the
Indemnitee’s becoming subject to injunctive or other relief or otherwise
adversely affect the business of the Indemnitee in any manner, and as to which
the indemnifying party shall have acknowledged in writing the obligation to
indemnify the Indemnitee hereunder, the indemnifying party shall have the sole
right to consent to the entry of any judgment, enter into any settlement or
otherwise dispose of such Loss, on such terms as the indemnifying party, in its
sole discretion, shall deem appropriate. 
With respect to all other Losses in connection with Third Party Claims, where
the indemnifying party has assumed the defense of the Third Party Claim in
accordance with Section 15.8, the indemnifying party shall have authority to
consent to the entry of any judgment, enter into any settlement or otherwise
dispose of such Loss provided it obtains the prior written consent of the
Indemnified Party (which consent shall not be unreasonably withheld or
delayed).  The indemnifying party shall
not be liable for any settlement or other disposition of a Loss by an
Indemnitee that is reached without the written consent of the indemnifying
party.  Regardless of whether the
indemnifying party chooses to defend or prosecute any Third Party Claim, no
Indemnitee shall admit any liability with respect to, or settle, compromise or
discharge, any Third Party Claim without the prior written consent of the
indemnifying party, except in the

 34
 

event the Indemnified
Party has assumed control of the defense of such Third Party Claim pursuant to
Section 15.9(b).

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

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

16.                                 Miscellaneous.

16.1                           Force Majeure.  Neither party shall be held liable or
responsible to the other party or be deemed to have defaulted under or breached
this Agreement for failure or delay in fulfilling or performing any term of
this Agreement when such failure or delay is caused by or results from events
beyond the reasonable control of the non-performing party, including without
limitation, fires, floods, earthquakes, hurricanes, typhoons, landslides,
embargoes, shortages, epidemics, quarantines, war, acts of war (whether war be
declared or not) or terrorism, insurrections, riots, civil commotion, strikes,
lockouts or other labor disturbances, acts of God or acts, omissions or delays
in acting by any governmental authority. 
The non-performing party shall notify the other party of such force
majeure within [...***...] after such occurrence by giving written notice to
the other party stating the nature of the event, its anticipated duration, and
any action being taken to avoid or minimize its effect.  The suspension of performance shall be of no
greater scope and no longer duration than is necessary and the non-performing
party shall use commercially reasonable efforts to remedy its inability to
perform; provided, however, that in the

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event the suspension of performance continues for
[...***...] after the date of the occurrence, the parties shall meet to discuss
in good faith how to proceed in order to accomplish the purposes of this Agreement.

16.2                           Governing Law and Jurisdiction.  This Agreement will be governed by the laws
of [...***...], as such laws are applied to contracts entered into and to be
performed entirely within such state.

16.3                           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.

16.4                           Dispute Resolution.

16.4.1                  Negotiation.  The parties recognize that disputes or
controversies 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 duly authorized
representative and Ajinomoto’s duly authorized representative 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.

16.4.2                  Arbitration.  Any Dispute arising out of or relating to any
provision of or in connection with this Agreement or the interpretation,
enforceability, performance, breach, termination or validity hereof, including,
without limitation, this arbitration clause, shall be solely and finally
settled by binding arbitration pursuant to [...***...].  Any such arbitration shall be held in
[...***...].  There shall be [...***...]
and [...***...]

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Treatment Requested

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[...***...].  In
such latter case, each party shall name [...***...].  Within [...***...] following appointment of
the arbitrator or arbitrators, if there are to be [...***...], the
arbitrator(s) will hold a conference with the parties to the arbitration to
establish a schedule pursuant to which an award will be rendered within
[...***...] of such conference.   Each
party hereto shall bear its own costs and expenses, but the compensation and
costs and expenses of the arbitrators shall be borne equally between the
parties participating in the arbitration. 
The English language shall be used in any and all arbitral proceedings
and all documents, exhibits and other evidence shall be translated into the
English language.  Judgment upon any
award rendered by the arbitrator(s), including without limitation, an award for specific performance or
equitable relief as provided below, may be entered in any court having
jurisdiction or application may be made to such court for confirmation of such
award or a judicial acceptance of such award, and for an order of enforcement,
or other legal remedy, as the case may be. 
The parties hereby waive all jurisdictional defenses in connection with
any arbitration hereunder or the enforcement of an order or award rendered
pursuant thereto (assuming that the terms and conditions of this arbitration
clause have been complied with) and defenses based on the general invalidity of
the underlying agreement or this arbitration clause.  Notwithstanding the foregoing, in no event
will a demand for arbitration be made, or effective if made, following the time 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.

16.4.3                  Specific Performance.  Each party hereby acknowledges that the
remedies at law of the other Party for a breach or threatened breach of this
Agreement may be inadequate and, in recognition of this fact, any party, upon
posting any bond as determined by the arbitral tribunal, and in addition to all
other remedies that may be available, shall be entitled to seek, from the
arbitral tribunal, equitable relief in the form of specific performance,
injunctions or any other equitable remedy deemed appropriate to such arbitral
tribunal.

16.4.4                  Interlocutory Relief.  Notwithstanding anything to the contrary in
this Section 16.4, either party may seek immediate injunctive or other interim
relief from any court of competent jurisdiction with respect to any breach of
Sections 8 or 9 hereof, or otherwise to enforce and protect the Patent Rights,
copyrights, trademarks, or

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other intellectual property rights Controlled by such
party. In addition, arbitration will not be used to resolve disputes concerning
Patent Rights Controlled by either party. 
Disputes concerning Patent Rights, including, without limitation,
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.

16.4.5                  Cumulative Remedies. 
Subject to Section 13.6, all remedies available to either party for
breach of this Agreement are cumulative and may be exercised concurrently or
separately, and the exercise of any one remedy will not be deemed an election
of such remedy to the exclusion of any other remedy.

16.5                           Severability.  If any term, covenant or condition 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, 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 thereof in good faith in order to provide a
reasonably acceptable alternative to the term, covenant or condition of this
Agreement or the application thereof that is held invalid or unenforceable, it being the intent of the parties
that the basic purposes of this Agreement are to be effectuated.

16.6                           Independent Contractors.  It is expressly agreed that Ajinomoto and
Senomyx will be independent contractors and that the relationship between the
parties will not constitute a partnership or agency of any kind.  Neither Ajinomoto 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.

16.7                           Entire Agreement; Amendment.  This Agreement sets forth all of the
covenants, promises, agreements, warranties, representations, conditions and
understandings between the parties with respect to [...***...] Program III, and
supersedes and terminates all prior agreements and understandings between the
parties, with respect to the subject matter of this Agreement, including
without limitation, that certain Evaluation Agreement, dated March 23, 2006,
between the parties hereto, which is hereby terminated and of no further force
or effect.  There are no covenants,
promises,

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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 hereto will be resolved in favor of the text of this Agreement.

16.8                           Waiver. 
Any waiver of any rights under this Agreement shall only be effective if
in writing and signed by the party waiving such right.  The waiver by either party of any rights will
not operate or be construed as a waiver of the subsequent exercise of the same right or remedy or any of the other
rights of such party or of any remedies provided in this Agreement and no
failure of or delay in exercising
any rights or remedy shall operate as a waiver of such right or remedy.

16.9                           Construction.  The term “Article” or “Section” can refer to
any single paragraph level found in this Agreement or any collection of
multiple paragraphs thereunder.

16.10                     No Third Party Beneficiaries.  No Third Party, including without limitation,
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 make the parties partners of each other or any
Third Party.

16.11                     Notices. 
Any request, 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 courier 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

  
	
   

  	
  U.S.A.

  
	
   

  	
  Facsimile
  number: (858) 404-0750

  
	
   

  	
  Attention:
  General Counsel with a copy

  to the President

  

 

	
  If to Ajinomoto, to:

  	
  Ajinomoto Co., Inc.

  
	
   

  	
  15-1, Kyobashi
  1-chome,

  
	
   

  	
  Chuo-ku, Tokyo
  104-8315,

  
	
   

  	
  Japan

  

 

 39
 

 

	
   

  	
  Facsimile number: [...***...]

  
	
   

  	
  Attention: [...***...]

  
	
   

  	
   

  
	
   

  	
  With a copy to: [...***...]

  

 

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.

16.12                     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 [...***...] 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.  This
Agreement will survive any merger or consolidation of either party with or into
another party and, [...***...].  Any assignment in contravention of the
provisions of this Section 16.12 shall be null and void ab initio.

16.13                     Headings.  The
headings and captions in this Agreement are for convenience of reference only
and in no way define, describe, extend or limit the scope or intent of this
Agreement or the intent of any provision contained in this Agreement.

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

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

	
  SENOMYX, INC.

  	
   

  	
  AJINOMOTO
  CO., INC.

  
	
   

  	
   

  	
   

  
	
  By: 

  	
  /s/ Kent Snyder

  	
   

  	
  By: 

  	
  /s/ Tohru Nishiyama

  
	
   

  	
   

  	
   

  
	
  Name: Kent
  Snyder

  	
   

  	
  Name: Tohru Nishiyama

  
	
  Title: 

  	
  President and
  Chief Executive Officer

  	
   

  	
  Title: 

  	
  Member of the Board & Corporate

  
	
   

  	
   

  	
  Executive Deputy President

  
	
   

  	
   

  	
   

  
	
  Date: 

  	
  October 11, 2006

  	
   

  	
  Date: 

  	
  October 11, 2006

  

 

 

 41

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 at least [...***...]
(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.

“Ajinomoto Know-How” means, to the extent useful for purposes of the activities to be conducted under this Agreement, Know-How Controlled by Ajinomoto as of the Effective Date [...***...] and Know-How under Jointly Owned Technology.
“Ajinomoto Patent Rights” means, to the extent useful for purposes of the activities to be conducted under this Agreement, Patent Rights Controlled by Ajinomoto as of the Effective Date [...***...] and Patent Rights under Jointly Owned Technology, including, without limitation, any Patent Rights containing one or more claims to an Invention made solely by employees or agents of Ajinomoto.
“Ajinomoto Technology” means Ajinomoto Patent Rights and Ajinomoto Know-How.
“Ajinomoto [...***...] Compound(s)” means any [...***...] Compound(s) [...***...] under [...***...] Program III that is [...***...].
“[...***...] Materials” means [...***...] which [...***...] Compounds in connection with [...***...] Program III.
“Ajinomoto [...***...] Product” means [...***...]
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“Collaborative Period” means the period
beginning on the Effective Date and ending [...***...] thereafter.

“[...***...] Term” means the lesser of (i) [...***...] from [...***...] on a country-by-country basis or (ii) [...***...] from [...***...].

“Confidential Information” of a party means all
Inventions, Know-How or other information, 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” or “Proprietary”
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 Inventions,
Know-How 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 will constitute Confidential
Information of a party if the disclosing party, within [...***...] after such
disclosure, delivers to the other party a human or machine readable 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 and
identifies such Inventions, Know-How or other information as “Confidential” or “Proprietary”.  [...***...].

“Control” or “Controlled” means, with respect to intellectual property, possession by a party, as of the Effective Date or during the Term, 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.

“Exclusive” means exclusive even as to the party granting the license; provided,
however, that [...***...].

“Exploit” or “Exploitation” means to make, have made, import, use,
sell, offer for sale, or otherwise dispose of, including without limitation,
all discovery, research, development, registration, modification, enhancement,
improvement, manufacture, storage, formulation, exportation, transportation,
distribution, promotion and marketing activities related thereto.

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“Field” means [...***...].

“First Collaboration Agreement Territory” means the territory defined
as “Territory” in the First Collaboration Agreement.

“FTE” means the annual full time equivalent of one (1) Senomyx
scientist.

“[...***...]” means
[...***...].

“Important Country” means [...***...].

“Invention(s)” means any invention, including, without limitation, any new and useful process, method, or composition of matter, or improvement, whether or not patentable.
“Jointly Owned Technology” means Know-How and/or Patent Rights with respect to Joint Inventions that are jointly owned by Ajinomoto and Senomyx.  [...***...]
“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, and data, including pharmacological, toxicological and clinical test data, analytical and quality control data, patent and legal data or marketing, sales and manufacturing data.
“Known” means (i) known to Ajinomoto [...***...] on or prior to the Effective Date, which may be [...***...] by Senomyx under this Agreement, (ii) known to Senomyx [...***...], as disclosed on [...***...], which list may be updated from time to time [...***...], or (iii) generally available or known to the public as an Ajinomoto [...***...] Compound; provided, however, that notwithstanding (ii) above, no compounds [...***...] with respect to an [...***...] Compound shall be Known with respect to such [...***...] Compound.  The parties shall [...***...] and, within [...***...] of the Effective Date, shall agree upon [...***...].
“Modification” means modifications, derivatives, analogues, homologues or isomers of any Ajinomoto [...***...] Compounds such that the modification, derivative, analogue, homologue or isomer does not meet the definition of an [...***...].
“[...***...] Materials” means [...***...] materials, whether [...***...] or otherwise, [...***...]
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[...***...] thereof and materials [...***...].
“Net Sales” means, with respect to [...***...], the gross amount invoiced by Ajinomoto and its Affiliates and/or permitted licensees and/or permitted sublicensees on any [...***...] of the [...***...], less the following items:
i)                 [...***...];
ii)              [...***...];
iii)           [...***...]; and
iv)          [...***...]  that is borne [...***...].
Net Sales will be determined from the books and records of Ajinomoto, its Affiliates and/or its permitted licensees, maintained in accordance with the generally accepted accounting principles consistently applied of the country where [...***...].  Notwithstanding anything herein to the contrary, Net Sales involving [...***...] by Ajinomoto or an Affiliate of Ajinomoto shall [...***...].
“Patent Rights” means all rights associated with all U.S. or foreign (including regional authorities such as the European Patent Office) utility or provisional patents or patent applications, including any improvements, continuations, continuations-in-part, or divisionals or any substitute or equivalent applications, and any patent issuing thereon, including any reissue, reexamination or extension thereof.
“Regulatory Approval” means any regulatory approvals, licenses, permits or consents issued by any governmental authority, authorizing the use of the Ajinomoto [...***...] Compounds in food products for human consumption.
“Regulatory Approval Date” means the date that a Regulatory Approval is granted that will allow an Ajinomoto [...***...] Compound to be manufactured, used and/or sold in a particular country.
“Research Plan” means the detailed scientific research plan that defines the key activities, responsibilities of the parties, research milestones and timeline for [...***...] Program III to
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 45
 

be conducted under this Agreement.  The Research Plan is incorporated by reference into this Agreement and will be maintained in the records of the Steering Committee.
“Selected Ajinomoto [...***...] Compound(s)” means the Ajinomoto [...***...] Compound(s) selected by Ajinomoto for development.
“Selection Date” means [...***...] immediately following the [...***...].
“Senomyx Know-How” means any Know-How, including Know-How under Jointly Owned Technology, which is not covered by the Senomyx Patent Rights, but which is necessary or useful for purposes of the activities to be conducted under this Agreement, and which is Controlled by Senomyx or its Affiliates as of the Effective Date [...***...].
“Senomyx Patent Rights” means any Patent Rights, including Patent Rights under Jointly Owned Technology, that are necessary or useful for purposes of the activities to be conducted under this Agreement, and which are Controlled by Senomyx or its Affiliates as of the Effective Date [...***...].
“Senomyx Technology” means the Senomyx Patent Rights and Senomyx Know-How.
“Territory” means [...***...].
“Third Party(ies)” means any party other than a party to this Agreement or an Affiliate of Senomyx or Ajinomoto.
“[...***...] Compound(s)” means compounds that [...***...].
“[...***...] Program I” has the meaning set forth in the First Collaboration Agreement.
“[...***...] Program II” has the meaning set forth in the First Collaboration Agreement.
***Confidential Treatment Requested

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APPENDIX B
FORM OF PRESS RELEASE

	
  

  
	
  SENOMYX ANNOUNCES A SECOND COLLABORATIVE
  RESEARCH,

  
	
  COMMERCIALIZATION AND LICENSE AGREEMENT WITH AJINOMOTO CO., INC.

  

 

New Agreement Focuses on Natural Flavor Ingredients

Senomyx and Ajinomoto Also Expand their First Collaborative Agreement

LA JOLLA, CA — September 30, 2006 —
Senomyx, Inc. (NASDAQ: SNMX), a leading company focused on using proprietary
technologies to discover and develop novel flavor ingredients for the packaged
food and beverage industry, announced today that it has entered into a second
research,  commercialization, and license
agreement with Ajinomoto Co., Inc., a market leader in food and culinary
products. During the three-year collaborative period, the company will work
with Ajinomoto on the discovery of specific natural flavor ingredients.  The agreement also covers exclusive worldwide
commercialization of these new flavor ingredients in all product
categories.  Ajinomoto has agreed to pay
Senomyx research funding and specified payments upon the achievement of
milestones.  Upon commercialization,
Senomyx will be entitled to payments based on sales of Ajinomoto products
containing any flavor ingredients discovered under the agreement.

“We are extremely pleased to establish our second collaboration with
Ajinomoto, a leading worldwide food product manufacturer,” said Kent Snyder,
President and Chief Executive Officer of Senomyx.  “We believe this natural ingredient
initiative provides additional value to Senomyx by opening new market
opportunities to reach consumers preferring all natural ingredients.”

Senomyx and Ajinomoto entered into their first collaborative agreement
in March 2006 for the discovery and development of novel flavor ingredients on
an exclusive basis in the soup, sauce, culinary aids and noodle product
categories, and on a co-exclusive basis in the bouillon product category,
within Japan and other Asian markets. 
The companies have expanded this agreement to include the use of certain
novel flavor ingredients in virtually all product categories in these
geographic regions.

“Senomyx’s strategy is to leverage our discovery and development
capabilities by establishing collaborations with market leaders seeking to
create a competitive advantage for their products,” added Snyder.  “It is especially rewarding to us when
existing collaborators extend their partnerships with the company.  We are privileged to strengthen our
relationship with Ajinomoto by both entering into a

 47
 

second collaboration for natural flavor ingredients and expanding our
original agreement.  Senomyx now has nine
product discovery and development collaborations with six of the world’s
foremost packaged food and beverage companies: Ajinomoto, Cadbury Schweppes,
Campbell Soup, Coca-Cola, Kraft Foods, and Nestlé,” Snyder noted.

About
Senomyx, Inc. (www.senomyx.com)

Senomyx is a leading company focused on using proprietary taste
receptor-based assays, screening technologies and optimization chemistry to
discover and develop novel flavors, flavor enhancers and taste modulators for
the packaged food and beverage industry. Senomyx’s current programs focus on
the development of flavors, flavor enhancers and taste modulators in the
savory, sweet, salt and bitter taste areas. Senomyx has entered into product
discovery and development collaborations with six of the world’s leading packaged
food and beverage companies: Ajinomoto Co., Inc., Cadbury Schweppes, Campbell
Soup Company, The Coca-Cola Company, Kraft Foods Global, Inc. and Nestlé SA.

About
Ajinomoto Co., Inc.      (www.ajinomoto.com)

Ajinomoto is one of the world’s top amino acids and food products
manufacturers and is renowned for its technology and the quality of its
products. Its business, established in 1909, is conducted all over the world
and has an annual turnover of around US$10 billion.

Forward-Looking Statements

Statements included in this press release that are not a description of
fact are forward-looking statements, including, but not limited to, statements
regarding potential payments under our collaboration with Ajinomoto, plans for
our taste receptor research, commercial potential, future products or
additional collaborations. The inclusion of forward-looking statements should
not be regarded as a representation by us that any of our plans, projections or
future financial, scientific or business objectives will be achieved.  Our actual results may differ materially from
any projected future results set forth in this release as a result of the risks
and uncertainties inherent in our business including, without limitation,
difficulties or delays in developing, testing, obtaining regulatory approval,
producing and marketing our flavors, flavor enhancers, taste modulators and
related technologies; whether we will be able to further extend or expand our
collaboration with Ajinomoto or enter into additional collaborations; our
ability to collect royalties under our collaborations; the progress and timing
of our scientific programs; changes in the laws or regulations of the United
States and other countries that could adversely affect our and our
collaborators’ ability to develop and commercialize our products; whether any
of our collaborations will result in the discovery and development of novel
flavors, flavor enhancers or taste modulators, improve the nutritional profile
of products incorporating them or otherwise enhance our market position; our
ability to protect our intellectual property and proprietary technology and to
maintain and enforce our licensing arrangements with various third party
licensors;  our ability to define the scope
and validity of patent protection for our products and technologies;
competition from other companies and flavor manufacturers and other risks
detailed in our Securities and Exchange Commission filings, including our
Annual Report on Form 10-K for the fiscal year ended December 31, 2005. You are
cautioned not to place undue reliance on these forward-looking statements,
which speak only as of the date hereof. All forward-looking statements are
qualified in their entirety by this cautionary statement and we undertake no
obligation to revise or update this news release to reflect events or
circumstances after the date hereof.

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Contact:

Gwen Rosenberg

Senomyx, Inc.

Executive Director, Investor Relations & Corporate Communications

858-646-8369

gwen.rosenberg@senomyx.com

 

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