Document:

Exhibit
10.159

 

FRAMEWORK AGREEMENT

 

This Framework Agreement is entered into on August 16,
2004 between The Immune Response Corporation (“IRC”) and NovaRx Corporation
(“NovaRx”).

 

1.                                       At
or prior to the closing (the “Closing”) to occur immediately upon the signing
of this Agreement it is expected that:

 

(a)                                  Sidney
Kimmel Cancer Center (“SKCC”), NovaRx and IRC shall enter into the Novation
Agreement, in the form set forth on Exhibit A attached hereto (the “SKCC
Novation Agreement”), substituting NovaRx in place of IRC under, and effecting
a novation of, the License Agreement between SKCC and IRC (as defined in the
SKCC Novation Agreement).

 

(b)                                 Masayoshi
Namba, M.D. (“Dr. Namba”), NovaRx and IRC shall enter into the Novation
Agreement, in the form set forth on Exhibit B attached hereto (the “Namba
Novation Agreement”), substituting NovaRx in place of IRC under, and effecting
a novation of, the License Agreement between Namba and IRC (as defined in the
Namba Novation Agreement).

 

(c)                                  Advanced
Biotherapies, Inc. (“ABI”) and IRC shall terminate the License Agreement dated
September 13, 2001 between IRC and ABI (the “IRC ABI License Agreement”)
pursuant to a termination letter agreement, in the form set forth on Exhibit C
attached hereto.

 

(d)                                 NovaRx
shall make a $150,000 cash payment to IRC.

 

2.                                       Effective
upon the Closing, the License Agreement dated June 4, 1997 between IRC and
NovaRx, as amended by Amendment No. 1 to License Agreement dated April 30, 2002
between IRC and NovaRx, and further amended by Amendment No. 2 to License
Agreement dated January 1, 2003 between IRC and NovaRx (collectively, the “IRC
NovaRx Agreement”) shall be terminated and be of no further force or effect and
notwithstanding Section 12.4 of the IRC NovaRx Agreement, only Section 10 and Section
13 (but for the latter only with respect to a breach or activity that occurred
prior to termination) shall survive termination.  Effective upon the Closing, the Stock and
Warrant Purchase Agreement dated June 4, 1997 between IRC and NovaRx shall be
terminated and be of no further force or effect.  It is understood that IRC does not thereby
give up the NovaRx stock which IRC currently holds.

 

3.                                       In
addition to the payment under Section 1(d), NovaRx shall pay IRC a total of
$900,000 after the Closing as follows:

 

(a)                                  An
amount paid within 30 days after the end of each calendar quarter, equal to 5%
of all revenue or cash obtained by NovaRx or its affiliates in such preceding
quarter from sublicensing, assigning or commercializing the technology

 

 

licensed to NovaRx pursuant to the Namba Novation Agreement and the
SKCC Novation Agreement up to a total of $900,000 (including any amounts which
may have been paid by NovaRx under this Section 3).

 

(b)                                 Any
remaining unpaid balance (with credit given for all amounts paid by NovaRx
under this Section 3), immediately upon NovaRx raising additional debt or
equity capital, in the aggregate equal to at least $5,000,000, between August
16, 2004 and August 16 , 2007.

 

(c)                                  Any
remaining unpaid balance, on August 16, 2007 (with credit given for all amounts
paid by NovaRx under this Section 3).

 

4.                                       IRC
hereby represents and warrants that:

 

(a)                                  IRC
holds no warrants for the purchase of the stock of either NovaRx or ABI; and

 

(b)                                 IRC
has granted no sublicenses of the rights granted to IRC in the License
Agreement between SKCC and IRC (as defined in the SKCC Novation Agreement)
other than to NovaRx and ABI.

 

5.                                       The
Framework Agreement and the other written agreements specified herein
constitute the entire agreement between and among the parties with regard to
the subject matter hereof and thereof, and supersede all prior and
contemporaneous agreements, commitments and discussions with regard to such
subject matter.  This Agreement can be amended
only in a writing signed by the parties hereto.

 

 

	
   

  	
  THE IMMUNE RESPONSE CORPORATION

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  NOVARX CORPORATION

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  

 

2Exhibit 10.160

 

NOVATION AGREEMENT

 

THIS NOVATION AGREEMENT
(this “Agreement”) is made as of August 16, 2004 (the “Novation Date”) by and
among THE IMMUNE RESPONSE CORPORATION, a Delaware corporation, having a place
of business located at 5931 Darwin Court, Carlsbad, California 92008 (“IRC”),
and NOVARX CORPORATION, a Delaware corporation, having a place of business
located at 8866 Caminito Primo Vera, La Jolla, California 92037 (“NovaRx”), and
SIDNEY KIMMEL CANCER CENTER, a California nonprofit corporation, having a place
of business located at 3099 Science Park Road, San Diego, California 92121
(“SKCC”).

 

WHEREAS, IRC and
SKCC are parties to a License Agreement, entered into on July 1, 1994, as
amended on March 1, 1996 and further amended December 19, 2002 (together the
“License Agreement”);

 

WHEREAS, pursuant to
the License Agreement, SKCC granted to IRC, under certain inventions relating
to cancer immunotherapy and lymphokine gene therapy and SKCC’s patent and other
intellectual property rights in such inventions, an exclusive worldwide license
to develop and commercialize products for use in the detection, evaluation,
treatment and prevention of cancer in humans; and

 

WHEREAS, SKCC, IRC
and NovaRx desire to effect a novation of the License Agreement as of the
Novation Date, so as to substitute NovaRx for IRC as Licensee under the License
Agreement going forward with all the same rights and obligations as IRC would
have had, on the terms set forth below.

 

NOW, THEREFORE, for
and in consideration of the mutual covenants contained herein, the parties
hereby agree as follows, effective as of the Novation Date:

 

1.                                       Transfer.
The parties hereby agree that NovaRx is substituted in place of IRC in the
License Agreement, with the intent that all of IRC’s rights, title, obligations
and interest, in each case as of and after the Novation Date, in, to and under
the License Agreement shall be transferred to NovaRx.

 

2.                                       Assumption.

 

(a)  In connection with such
substitution, NovaRx hereby undertakes, accepts and assumes all of IRC’s
rights, title, duties, liabilities, covenants, obligations and interest in, to
and under the License Agreement and shall hereafter perform and discharge each
and every duty, liability, covenant and obligation performable by IRC under the
License Agreement (but for the novation under this Agreement), in each case as
of and after the Novation Date, in accordance with the terms and conditions of
the License Agreement.

 

 

(b)  NovaRx shall perform the
obligations of IRC under the License Agreement and NovaRx shall be bound by all
of the terms and conditions of the License Agreement in every way in as much as
NovaRx is the substituted party thereto as Licensee as of the Novation Date.

 

3.                                       Novation.

 

(a)  Notwithstanding anything to
the contrary in the License Agreement, SKCC remises, releases and forever
discharges IRC, as well as its shareholders, directors, officers, employees,
agents and representatives, from all obligations arising under the License
Agreement, and from all manner of actions, causes of action, suits, debts,
damages, expenses, claims and demands whatsoever that SKCC has or may have
against any of the foregoing entities, arising out of or in any way connected
to the License Agreement as of and after the Novation Date.

 

(b)  Notwithstanding anything to
the contrary in the License Agreement, IRC remises, releases and forever
discharges SKCC, as well as its shareholders, directors, officers, employees,
agents and representatives, from all obligations arising under the License
Agreement, and from all manner of actions, causes of action, suits, debts,
damages, expenses, claims and demands whatsoever that IRC has or may have
against any of the foregoing entities, arising out of or in any way connected
to the License Agreement as of and after the Novation Date.

 

(c)  SKCC recognizes NovaRx as
IRC’s successor-in-interest in and to the License Agreement.  NovaRx by this Agreement becomes entitled to
all right, title and interest of IRC in and to the License Agreement in as much
as NovaRx is the substituted party to the License Agreement as of and after the
Novation Date.  As of and after the
Novation Date, the term “Licensee”, as used in the License Agreement, shall
refer to NovaRx.  SKCC and NovaRx shall
be bound by the terms of the License Agreement in every way as if NovaRx is
named in the novated License Agreement in place of IRC as a party thereto.  SKCC represents and warrants to IRC and
NovaRx that there is no payment or other liability of IRC to SKCC which has
accrued and remains outstanding as of the Novation Date save and except for the
obligation of IRC to pay for the fees and expenses associated with the
preparation and filing of the response to the European Opposition to EPO Patent
No. # 0668781 for which a response is due August 20, 2004 (the “Opposition
Response Liability”), which, subject to the execution and delivery of this
Agreement, shall be the responsibility of NovaRx and not of IRC (whether or not
such fees and expenses were incurred before or after the date of this Agreement).

 

4.                                       Indemnification.

 

(a)  NovaRx shall indemnify and
hold IRC harmless from any and all claims, demands, causes of action, losses,
costs (including, without limitation, reasonable court costs and attorneys’
fees), liabilities or damages of any kind or nature whatsoever that IRC may
sustain to third parties (not including IRC affiliates) by reason of NovaRx’s
breach or non-fulfillment (whether by action or inaction), at any time, of any
covenant or obligation

 

 

under the License Agreement to be performed by NovaRx thereunder as of
and after the Novation Date.

 

(b)  IRC shall indemnify and hold
NovaRx harmless from any and all claims, demands, causes of action, losses,
costs (including, without limitation, reasonable court costs and attorneys’
fees), liabilities or damages of any kind or nature whatsoever that NovaRx may
sustain to third parties (not including NovaRx affiliates) by reason of IRC’s
breach or non-fulfillment (whether by action or inaction), at any time, of any
covenant or obligation under the License Agreement to be performed by IRC
thereunder before the Novation Date save and except for the Opposition Response
Liability.

 

(c)  The indemnification
obligations under this Section shall be conditioned upon the indemnified party
giving notice to indemnifying party promptly after the indemnified party
receives notice of the claim and shall survive the expiration or termination of
the License Agreement.

 

5.                                       Notices.  Any notice, demand, consent, approval,
direction, agreement or other communication required or permitted hereunder or
under any other documents in connection herewith shall be in writing and shall
be directed as follows:

 

	
  If to SKCC:

  	
  Sidney Kimmel Cancer Center

  
	
   

  	
  3099 Science Park Road, Suite 200

  
	
   

  	
  San Diego, California 92121

  
	
   

  	
  Attention: Albert Deisseroth

  
	
   

  	
   

  
	
  If to NovaRx:

  	
  NovaRx Corporation

  
	
   

  	
  8866 Caminito Primo Vera

  
	
   

  	
  La Jolla, California 92037

  
	
   

  	
  Attention:  Habib Fakhrai,
  President

  
	
   

  	
   

  
	
  with a copy to:

  	
  Morrison & Foerster

  
	
   

  	
  3811 Valley Centre Drive, Suite 500

  
	
   

  	
  San Diego, California 92130-2332

  
	
   

  	
  Attention:  Jay de Groot

  
	
   

  	
   

  
	
  If to IRC:

  	
  The Immune Response Corporation

  
	
   

  	
  5931 Darwin Court

  
	
   

  	
  Carlsbad, California 92008

  
	
   

  	
  Attention: Michael K. Green

  
	
   

  	
   

  
	
  with a copy to:

  	
  Heller Ehrman White & McAuliffe LLP

  
	
   

  	
  4350 La Jolla Village Drive, 7th Floor

  
	
   

  	
  San Diego, California 92122

  
	
   

  	
  Attention:  Hayden J. Trubitt

  

 

 

All notices, demands, requests, consents or approvals that may or are
required to be given by any party to another shall be in writing and shall be
deemed given upon the earliest of (i) when actually received by the other
party; (ii) when served personally; (iii) one business day after being sent by
nationally-recognized overnight courier with return receipt; or (iv) three
business days after being sent by United States registered or certified mail,
postage prepaid, return receipt requested and addressed to such other party at
the address specified above or at such other place as such other party may from
time to time designate by notice in writing to the other parties hereto.

 

6.                                       Miscellaneous.

 

(a)  Each provision of this
Agreement shall extend, bind and inure to the benefit of SKCC, IRC and NovaRx
and their respective successors and assigns, including without limitation
successors to NovaRx of the License Agreement.

 

(b)  This Agreement contains the
entire agreement between SKCC, IRC, and NovaRx regarding the subject matter
hereunder, and all prior negotiations and agreements are merged in this
Agreement. This Agreement may not be changed, modified or discharged, in whole
or in part, except by a written instrument executed by the party against whom
enforcement of the change, modification or discharge is sought.

 

(c)  This Agreement may be
executed in any number of counterparts, each of which upon execution and
delivery shall be considered an original for all purposes; provided, however,
all such counterparts shall, together, upon execution and delivery, constitute
one and the same instrument.

 

(d)  The Agreement shall be
governed by and construed in accordance with the laws of the State of
California, without regard to the conflicts of law principles thereof.

 

(e)  If any term or provision of
this Agreement or any application thereof shall be invalid or unenforceable,
the remainder of this Agreement and any other application of such term shall
not be affected thereby.

 

(f) Each party agrees to take or cause to be taken such further
actions, and to execute, deliver and file or cause to be executed, delivered
and filed such further documents and instruments, and to obtain such consents,
as may be reasonably required or requested by the other party(ies) in order to
effectuate fully the purposes, terms and conditions of this Agreement.

 

7.                                       All
Parties Consent.  Each of IRC, NovaRx
and SKCC consent to all of the provisions of this Agreement.

 

 

IN WITNESS WHEREOF,
the parties have executed this Agreement the day and year first above written.

 

	
   

  	
  NOVARX CORPORATION

  
	
   

  	
   

  
	
   

  	
  By

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Title

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  THE IMMUNE RESPONSE CORPORATION

  
	
   

  	
   

  
	
   

  	
  By

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Title

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  SIDNEY KIMMEL CANCER CENTER

  
	
   

  	
   

  
	
   

  	
  By

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Title

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