Document:

EXHIBIT 10.5

 

THIS EXHIBIT HAS BEEN REDACTED AND IS THE SUBJECT OF A CONFIDENTIAL TREATMENT REQUEST.  REDACTED MATERIAL IS MARKED WITH [* * *] AND HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

 

UNIVERSITY OF CALIFORNIA, BERKELEY

 

OFFICE OF TECHNOLOGY LICENSING

	
 
    

 

 

EXCLUSIVE LICENSE

 

BETWEEN

 

GENOCEA INC.

 

AND

 

THE REGENTS OF THE UNIVERSITY OF CALIFORNIA

 

FOR

 

ESCHERICHIA COLI K12 TO DELIVER PROTEIN TO THE MACROPHAGE

CYTOSOL

 

 

	
 
    	
UC Case No,: B98-039
    
	
 
    	
U.S. Patent Nos.: 6,004,815; 6,287,556;
    
	
 
    	
6,599.502; and Patent Appl. No.: 10/627,452
    
	
 
    

 

 

THIS EXHIBIT HAS BEEN REDACTED AND IS THE SUBJECT OF A CONFIDENTIAL TREATMENT REQUEST.  REDACTED MATERIAL IS MARKED WITH [* * *] AND HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

 

TABLE OF CONTENTS

 

	
1.
    	
BACKGROUND
    	
1
    
	
 
    	
 
    	
 
    
	
2.
    	
DEFINITIONS
    	
2
    
	
 
    	
 
    	
 
    
	
3.
    	
GRANT
    	
4
    
	
 
    	
 
    	
 
    
	
4.
    	
SUBLICENSES
    	
5
    
	
 
    	
 
    	
 
    
	
5.
    	
LICENSE ISSUE FEE
    	
8
    
	
 
    	
 
    	
 
    
	
6.
    	
ROYALTIES AND MILESTONES
    	
8
    
	
 
    	
 
    	
 
    
	
7.
    	
DUE DILIGENCE
    	
10
    
	
 
    	
 
    	
 
    
	
8.
    	
PROGRESS AND ROYALTY REPORTS
    	
12
    
	
 
    	
 
    	
 
    
	
9.
    	
BOOKS AND RECORDS
    	
13
    
	
 
    	
 
    	
 
    
	
10.
    	
LIFE OF THE AGREEMENT
    	
13
    
	
 
    	
 
    	
 
    
	
11.
    	
TERMINATION BY REGENTS
    	
14
    
	
 
    	
 
    	
 
    
	
12.
    	
TERMINATION BY LICENSEE
    	
14
    
	
 
    	
 
    	
 
    
	
13.
    	
DISPOSITION OF LICENSED PRODUCTS UPON TERMINATION
    	
15
    
	
 
    	
 
    	
 
    
	
14.
    	
PATENT PROSECUTION AND MAINTENANCE
    	
15
    
	
 
    	
 
    	
 
    
	
15.
    	
MARKING
    	
16
    
	
 
    	
 
    	
 
    
	
16.
    	
USE OF NAMES AND TRADEMARKS
    	
16
    
	
 
    	
 
    	
 
    
	
17.
    	
LIMITED WARRANTIES
    	
17
    
	
 
    	
 
    	
 
    
	
18.
    	
PATENT INFRINGEMENT
    	
17
    
	
 
    	
 
    	
 
    
	
19.
    	
INDEMNIFICATION
    	
19
    
	
 
    	
 
    	
 
    
	
20.
    	
EXPORT CONTROLS
    	
20
    
	
 
    	
 
    	
 
    
	
21.
    	
GOVERNMENT APPROVAL OR REGISTRATION
    	
21
    
	
 
    	
 
    	
 
    
	
22.
    	
ASSIGNMENT
    	
21
    
	
 
    	
 
    	
 
    
	
23.
    	
NOTICES
    	
21
    
	
 
    	
 
    	
 
    
	
24.
    	
LATE PAYMENTS
    	
22
    
	
 
    	
 
    	
 
    
	
25.
    	
WAIVER
    	
22
    
	
 
    	
 
    	
 
    
	
26.
    	
CONFIDENTIALITY
    	
22
    
	
 
    	
 
    	
 
    
	
27.
    	
FORCE MAJEURE
    	
23
    
	
 
    	
 
    	
 
    
	
28.
    	
SEVERABILITY
    	
23
    

 

 

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29.
    	
APPLICABLE LAW; VENUE; ATTORNEYS’ FEES
    	
23
    
	
 
    	
 
    	
 
    
	
30.
    	
SCOPE OF AGREEMENT
    	
24
    

 

2

 

THIS EXHIBIT HAS BEEN REDACTED AND IS THE SUBJECT OF A CONFIDENTIAL TREATMENT REQUEST.  REDACTED MATERIAL IS MARKED WITH [* * *] AND HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

 

UNIVERSITY OF CALIFORNIA, BERKELEY

OFFICE OF TECHNOLOGY LICENSING

 

 

EXCLUSIVE LICENSE AGREEMENT FOR

ESCHERICHIA COLI K12 TO DELIVER PROTEIN TO THE MACROPHAGE

CYTOSOL

 

	
 
    	
UC Case No.: B98-039
    
	
 
    	
U.S. Patent Nos.: 6,004,815; 6287,556;
    
	
 
    	
6,599,502; and Patent Appl. No.: 10/627,452
    

 

 

This exclusive license agreement (“Agreement”) is effective August 18, 2006 (“Effective Date”), by and between THE REGENTS OF THE UNIVERSITY OF CALIFORNIA, a California corporation, having its systemwide administrative offices at 1111 Franklin Street, 12th Floor, Oakland, California 94607-5200, acting through its Office of Technology Licensing, at the University of California, Berkeley, 2150 Shattuck Avenue, Suite 510, Berkeley, CA 94720-1620 (“REGENTS”) and Genocea, Inc. a Delaware corporation having a principal place of business at 140 East 45th Street, 30th Floor, New York, NY 10017 (“LICENSEE”). The parties agree as follows:

 

1.                                      BACKGROUND

 

1.1.                            REGENTS has an assignment of the ESCHERICHIA COLI K12 TO DELIVER PROTEIN TO THE MACROPHAGE CYTOSOL invented by Daniel Portnoy, Ph.D. and Darren Higgins, Ph.D., employed by the University of California, Berkeley (the “INVENTION”), as described in REGENTS’ Case No. B98-039 and to the patents and patent applications under REGENTS’ PATENT RIGHTS as defined below, which are directed to the INVENTION.

 

1.2.                            LICENSEE has discussed with REGENTS its commercialization strategy for the INVENTION and business strategy in order to evaluate its capabilities as a LICENSEE.

 

1.3.                            The development of the INVENTION was sponsored in part by various grants by U.S. Government agencies, and as a consequence, REGENTS elected to retain title to the INVENTION subject to the rights of the U.S. Government under 35 USC 200-212 and implementing regulations, including that REGENTS, in turn, has granted back to the U.S. Government a non-exclusive, non-transferable irrevocable, paid-up license to practice or have practiced the INVENTION for or

 

1

 

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on behalf of the U.S. Government throughout the world. This U.S. Government grant is NIH Contract No. R01 A127655-10.

 

1.4.                            REGENTS and LICENSEE wish to have the INVENTION perfected and marketed as soon as possible so that products resulting therefrom may be available for public use and benefit.

 

1.5.                            LICENSEE wishes to acquire a license under REGENTS’ PATENT RIGHTS for the purpose of undertaking development and to manufacture, use, sell, offer for sale and import LICENSED PRODUCTS as defined below.

 

2.                                      DEFINITIONS

 

2.1.                            “Regents’ Patent Rights” means the following patents and patent applications:

 

(a)                                 U.S. patent 6,004,815 (U.C. Case No.: B98-039-1) issued on Dec. 21, 1999 as “Bacteria Expressing Nonsecreted Cytolysin as Intracellular Microbial Delivery Vehicles to Eukaryotic Cells”; and

 

(b)                                 U.S. patent 6,287,556 (U.C. Case No.: B98-039-2) issued on Sept. 11, 2001 as “Intracellular Delivery Vehicles”; and

 

(c)                                  U.S. patent 6,599,502 (U.C. Case No.: B98-039-3) issued on July 29, 2003 as “Intracellular Delivery Vehicles”; and

 

(d)                                 U.S. patent application serial number 10/627,452 (U.C. Case No.: B98-039-4) entitled, “Intracellular Delivery Vehicles” filed on July 25, 2003 and any patents issuing therefrom; and

 

(e)                                  and/or any patents or patent applications, including, divisions, continuations, continued prosecution applications, all renewals, reissues, and extensions, re-examinations or claims in continuations-in-part applications, that are entitled to the priority filing date of any of the above-referenced U.S. patents or applications or substitutes for such patents or applications.

 

2.2.                            “LICENSED PRODUCTS” means any product, apparatus, or kit or component part thereof or other material (i) produced by, or used in the practice of the Licensed Method, or (ii) the manufacture, sale, offer for sale or import of which, in either case in the absence of the license agreement, would be an infringement of:

 

(a)                                 A valid claim of any issued, unexpired patent within Regents’ Patent Rights.  A claim within Regents’ Patent Rights shall be presumed to be valid unless and until it has been held to be invalid by a final judgment of

 

2

 

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a court of competent jurisdiction from which no appeal can be or is taken; or

 

(b)                                 A claim being prosecuted in a patent application that has been pending for less than five years (provided that Regents are pursuing such claim in good faith) within Regents’ Patent Rights directed to the Invention (collectively (a) and (b), a “Valid Claim”).

 

2.3.                            “LICENSED METHOD” means any method or process that is covered by Regents’ Patent Rights, or any method or process the use or practice of which would constitute an infringement of any Valid Claims within Regents’ Patent Rights.

 

2.4.                            “LICENSED FIELD OF USE” means all fields.

 

2.5.                            “NET SALES” means the gross invoice amount actually received by, and the value of non-cash consideration actually supplied to, LICENSEE for SALES of LICENSED PRODUCTS, LICENSED SERVICES, and LICENSED METHODS, less the sum of the following actual and customary deductions where applicable: cash, trade or quantity discounts; sales, use, tariff, import/export duties or other excise taxes when included in gross sales, but not value-added taxes assessed or income taxes derived from such sales; transportation charges; and allowances or credits to customers because of rejections or returns. For purposes of calculating NET SALES, a SALE to a sublicensee for end use by the sublicensee will be treated as a SALE at list price.

 

2.6.                            “AFFILIATE” of LICENSEE means any entity that, directly or indirectly, Controls LICENSEE, is Controlled by LICENSEE, or is under common Control with LICENSEE. “Control” means (i) having the actual, present capacity to elect a majority of the directors of such affiliate, (ii) having the power to direct more than fifty percent (50%) of the voting rights entitled to elect directors, or (iii) in any country where the local law will not permit foreign equity participation of a majority, ownership or control, directly or indirectly, of the maximum percentage of such outstanding stock or voting rights permitted by local law.

 

2.7.                            “LICENSED TERRITORY” means United States of America, its territories and possessions, and any foreign countries where REGENTS’ PATENT RIGHTS are filed.

 

2.8.                            “SALE” means, for LICENSED PRODUCTS and LICENSED SERVICES, the act of selling, leasing or otherwise transferring, providing, or furnishing such product or service, and for LICENSED METHOD, the act of performing such method, for any use or for any consideration. Correspondingly, “SELL” means to make or cause to be made a SALE, and “SOLD” means to have made or caused to be made a SALE.

 

3

 

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2.9.                            “LICENSED SERVICE” means a service provided using Licensed Products or Licensed Method. This excludes research funding, FTEs and like support.

 

2.10.                     “DERIVED PRODUCT(S)” means any product which includes but is not limited to a polypeptide or nucleotide sequence, biological organism, or chemical entity identified in the practice of Licensed Method or Licensed Service(s).

 

2.11.                     “Technology in Screening Capacity” means the practice of LICENSED METHOD to identify any polynucleotide, polypeptide, biological organism, or chemical entity in isolation or as a component of other matter.

 

3.                                      GRANT

 

3.1.                            Subject to the limitations set forth in this Agreement, including the license granted to the U.S. Government and the rights reserved in Paragraph 3.3, REGENTS hereby grants and LICENSEE hereby accepts an exclusive license under REGENTS’ PATENT RIGHTS to make, use, offer for SALE, import, and SELL LICENSED PRODUCTS and LICENSED SERVICES, and to practice LICENSED METHOD, in the LICENSED FIELD OF USE in the LICENSED TERRITORY.

 

3.2.                            The licenses under Paragraph 3.1 will be exclusive for a term commencing on the Effective Date and ending on the date of the last-to-expire patent or last to be abandoned patent application licensed under REGENTS’ PATENT RIGHTS, whichever is later.

 

3.3.                            Nothing in this Agreement will be deemed to limit the right of REGENTS to publish any and all technical data resulting from any research performed by REGENTS relating to the INVENTION, and to make and use the INVENTION, LICENSED PRODUCTS, and LICENSED SERVICES and practice LICENSED METHOD and associated technology and to allow other educational and non-profit institutions to do so for educational and research purposes.

 

3.4.                            LICENSEE will have a continuing responsibility to keep REGENTS informed of the large/small entity status, as defined in 15 U.S.C. 632, of itself and its sublicensees.

 

3.5.                            The INVENTION was funded in part by the U.S. Government. In accordance with 35 USC 200-212 and implementing regulations, to the extent required by law or regulation, any products covered by patent applications or patents claiming the INVENTION and sold in the United States will be substantially manufactured in the United States.

 

4

 

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4.                                      SUBLICENSES

 

4.1                               REGENTS also grants to LICENSEE the right to sublicense to third parties the right to make, use, offer for SALE, import, and SELL LICENSED PRODUCTS and LICENSED SERVICES, and to practice LICENSED METHOD, provided that LICENSEE has exclusive rights under this Agreement at the time of sublicensing.

 

Every such sublicense will include:

 

(a)                                 a statement setting forth the date upon which LICENSEE’s exclusive rights, privileges, and license hereunder will expire; and

 

(b)                                 as applicable, all the rights of, and require the performance of all the obligations due to, REGENTS (and, if applicable, the United States Government) under this Agreement other than those rights and obligations specified in Article 5 (License Issue Fee) and Article 6 (Royalties and Milestones).

 

4.2.                            LICENSEE will pay to REGENTS [* * *] of any cash consideration, and of the cash equivalent of all other consideration, due to LICENSEE for the grant of rights under each sublicense if the Sublicense only conveys rights to the Regents’ Patent Rights. If a Sublicense conveys rights to patents other than Regents’ Patent Rights then LICENSEE will pay to REGENTS [* * *] of any cash consideration, and of the cash equivalent of all other consideration that is due to LICENSEE. Sublicense revenue shall not include any amounts received by LICENSEE for equity, debt, research and development, the license or sublicense of any intellectual property other than the Regents’ Patent Rights, or reimbursement for patent or other expenses.

 

4.3.                            LICENSEE will notify REGENTS of each sublicense granted hereunder and furnish to REGENTS a copy of each such sublicense agreement.

 

4.4.                            For purposes of this Agreement LICENSEE shall be deemed to include all its AFFILIATES and SALES by AFFILIATES shall be treated the same as SALES by LICENSEE.

 

4.5.                            For the purposes of this Agreement, the operations of all sublicensees and AFFILIATES shall be deemed to be the operations of LICENSEE, for which LICENSEE shall be responsible.

 

4.6.                            LICENSEE will collect and guarantee payment of all monies and other consideration due REGENTS from sublicensees and AFFILIATES, and deliver all reports due REGENTS and received from sublicensees and AFFILIATES.

 

4.7.                            Upon termination of this Agreement for any reason, all sublicenses that are granted by LICENSEE pursuant to this Agreement where the sublicensee is in compliance with its sublicense agreement as of the date of such termination will

 

5

 

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remain in effect and will be assigned to REGENTS, except that REGENTS will not be bound to perform any duties or obligations set forth in any sublicenses that extend beyond the duties and obligations of REGENTS set forth in this Agreement.

 

4.8.                            If after five (5) years from Effective Date, REGENTS (to the extent of the actual knowledge of the licensing professional responsible for administration of this case) or a third party discovers and notifies that licensing professional that the INVENTION is useful for an application covered by the LICENSED FIELD OF USE other than human therapeutics, prophylactics or diagnostics or derivative animal therapeutics, prophylactics, or diagnostics (the “New Application”), but for which LICENSED PRODUCTS have not been developed or are not currently under development by LICENSEE, then REGENTS, as represented by the Office of Technology Licensing, shall give written notice to LICENSEE, except for: 1) information that is subject to restrictions of confidentiality with third parties, and 2) information which originates with REGENTS’ personnel who do not assent to its disclosure to LICENSEE, unless LICENSEE agrees to hold such information in confidence.

 

LICENSEE shall have one hundred and twenty (120) days to give REGENTS written notice stating whether LICENSEE elects to develop LICENSED PRODUCTS for the New Application.

 

If LICENSEE elects to develop and commercialize the proposed LICENSED PRODUCTS for the New Application, LICENSEE shall submit progress reports to REGENTS pursuant to Article 8 of this Agreement.

 

If LICENSEE elects not to develop and commercialize the proposed LICENSED PRODUCTS for use in the New Application, REGENTS may seek (a) third party(ies) to develop and commercialize the proposed LICENSED PRODUCTS for the New Application. If REGENTS is successful in finding a third party, it shall refer such third party to LICENSEE. If the third party requests a sublicense under this Agreement, then LICENSEE shall report the request to REGENTS within thirty (30) days from the date of such written request. If the request results in a sublicense, then LICENSEE shall report it to REGENTS pursuant to the Paragraph 4.3 of this Agreement.

 

If LICENSEE refuses to grant a sublicense to the third party, then within thirty (30) days after such refusal LICENSEE shall submit to REGENTS a report specifying the license terms proposed by the third party and a written justification for LICENSEE’s refusal to grant the proposed sublicense. If REGENTS determines that the terms of the sublicense proposed by the third party are reasonable under the totality of the circumstances, taking into account LICENSEE’s LICENSED PRODUCTS in development, then REGENTS shall have the right to grant to the third party a license to make, have made, use, sell,

 

6

 

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offer for sale and import products for use in the New Application at substantially the same terms last proposed to LICENSEE by the third party providing royalty rates are at least equal to those paid by LICENSEE, provided that REGENTS shall pay to LICENSEE 50% of the net consideration after reimbursement of costs, received by REGENTS from such third party.

 

7

 

THIS EXHIBIT HAS BEEN REDACTED AND IS THE SUBJECT OF A CONFIDENTIAL TREATMENT REQUEST.  REDACTED MATERIAL IS MARKED WITH [* * *] AND HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

 

5.                                      LICENSE ISSUE FEE

 

5.1.                            Upon execution of this Agreement, LICENSEE shall pay to REGENTS an upfront fee of $25,000 US (Twenty Five Thousand) due on the Effective Date of this Agreement.

 

Within nine (9) months of the Effective Date of this Agreement, LICENSEE shall issue to REGENTS in REGENTS’ street name “Shellwater & Co.” such number of shares of common stock of LICENSEE equal to three percent (3%) of the founders stock according to the attached cap table on a pre-financing basis. Receipt of equity is subject to Office of the President approval.

 

6.                                      ROYALTIES AND MILESTONES

 

6.1.                            In countries where manufacture, sale, offer for sale, import, or use of Licensed Products is [* * *], the royalty rate shall be:

 

[* * *] of Net Sales for any Derived Product(s) by LICENSEE derived from use of Technology in Screening Capacity which may not be reduced by any provision of the this Agreement.

 

[* * *] of Net Sales of any Licensed Product by LICENSEE which may not be reduced to less than [* * *] by any term or provision of the this Agreement. The minimum annual royalty (MAR) shall be $[* * *] due upon the first occurrence of Net Sales of Licensed Product and annually thereafter. The MAR shall be creditable and carry forwardable against future royalties.

 

[* * *] of Net Sales from Licensed Service by LICENSEE which may not be reduced by any provision of this Agreement.

 

If a product is both a Licensed Product and a Derived Product, it shall only be subject to the royalty payable as a Licensed Product.

 

No matter how many Licensed Patents are involved in any one such product or service, only one royalty, the higher royalty of those listed above, shall be due.

 

REGENTS shall not be entitled to any royalties on Sales of Licensed Products or Derived Products or Licensed Services by Sublicensees, but shall be entitled to the percentage of sublicense royalties and other fees received by LICENSEE set forth in paragraph 4.2 of this Agreement.

 

6.2.                            Combined Product Adjustment:

In the event LICENSED PRODUCT(S) is sold in a combination package or kit containing other active products, such as antibodies, antigens, enzymes, or other products material to the efficacy or function of the LICENSED PRODUCT(S).NET SALES, for purposes of determining royalty payments on the combination

 

8

 

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package, shall be calculated using one of the following methods on a country-by-country basis:

 

(a)                                 [* * *]; or

(b)                                 [* * *].

 

6.3.                            Royalties to Third Parties:

In the event a LICENSED PRODUCT(S) is combined with technology covered by other licensed patents necessary for sales to end users, whether by LICENSEE or its sublicensee, LICENSEE may credit up to [* * *] of royalties that LICENSEE is paying to third parties on LICENSEE’s NET SALES of that LICENSED PRODUCT to the royalty due REGENTS. In no event shall the royalty due to REGENTS under this adjustment be less than [* * *] of the Set Royalty [* * *] when combined with any and all other provisions within this Agreement that may reduce the Royalty Rate on Licensed Product(s).

 

6.4.                            Royalties accruing to REGENTS will be paid to REGENTS quarterly within sixty (60) days after the end of each calendar quarter.

 

6.5.                            LICENSEE shall pay a maintenance fee of $[* * *] due on the third anniversary of Effective Date and annually thereafter. No further maintenance fees shall be due following the first occurrence of Net Sales of Licensed Product(s) or Licensed Service(s) provided the annual Net Sales of Licensed Services exceed $[* * *].

 

6.6.                            All payments due REGENTS will be payable in United States dollars. When LICENSED PRODUCTS, LICENSED SERVICES, or LICENSED METHOD are SOLD for monies other than United States dollars, earned royalties will first be determined in the foreign currency of the country in which the SALE was made and then converted into equivalent United States dollars. The exchange rate will be that rate quoted in the Wall Street Journal on the last business day of the reporting period.

 

6.7.                            Payments due for SALES occurring in any country outside the United States will not be reduced by any taxes, fees, or other charges imposed by the government of such country on the remittance of royalty income. LICENSEE will also be responsible for all bank transfer charges.

 

6.8.                            LICENSEE will make all payments under this Agreement by check payable to “The Regents of the University of California” and forward it to REGENTS at the address shown in Article 23 (Notices).

 

6.9.                            If any patent or patent application, or any claim thereof, included within REGENTS’ PATENT RIGHTS expires or is held invalid in a final decision by a court of competent jurisdiction and last resort and from which no appeal has been or can be taken, all obligation to pay royalties based on such patent, patent

 

9

 

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application or claim, or any claims patentably indistinct therefrom will cease as of the date of such expiration or final decision. LICENSEE will not, however, be relieved from paying any royalties that accrued before such expiration or decision or that are based on another Valid Claim not expired or involved in such decision.

 

6.10.                     No earned royalties will be collected or paid hereunder on SALES to, or for use by, the United States Government.

 

6.11.                     Milestone Payments for Licensed Product(s):

 

Milestone payments as follows: Licensee shall pay to Regents milestone fees within thirty (30) days following each milestone event for each Licensed Product according to the following schedule:

 

(a)                                 Licensee shall pay to Regents a milestone payment of [* * *] upon [* * *] for the first Licensed Product by LICENSEE and [* * *] for [* * *] for each subsequent Licensed Product which is a chemically or biologically distinct compound or biologic by LICENSEE. The above payments in this Paragraph 6.11(a) for any given chemical or biological entity will only be paid once.

 

(b)                                 Licensee shall pay to Regents a milestone payment of [* * *] upon [* * *] by LICENSEE and [* * *] for [* * *] that is a chemically or biologically distinct compound or biologic by LICENSEE. The above payments for any given chemical or biological entity will only be paid once. The above payments in this Paragraph 6.11(b) for any given chemical or biological entity will only be paid once.

 

7.                                      DUE DILIGENCE

 

7.1.                            LICENSEE shall provide Commercialization and Development plans to REGENTS in form similar to that provided to LICENSEE’s Board of Directors or investors.

 

7.2.                            LICENSEE, upon execution of this Agreement, will diligently proceed with the development, manufacture, and SALE of LICENSED PRODUCTS, LICENSED SERVICES, and LICENSED METHOD, and will diligently market them in quantities sufficient to meet the market demand.

 

7.3.                            LICENSEE shall be deemed to be diligently proceeding if it shall (i) fund research and/or development of technology that is reasonably necessary for commercialization of the Regents’ Patent Rights in each calendar year in at least the amounts provided below (such funding shall include internal or external research and/or development funded by or provided for the benefit of LICENSEE

 

10

 

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(“Research Funding”)), or (ii) successfully commercialize and obtain annual revenues from Licensed Services in at least the amounts provided below.

 

	
 
    	
Research Funding:
    	
 
    	
 
    
	
 
    	
2007
    	
$
    	
[* * *]
    	
 
    
	
 
    	
2008
    	
$
    	
[* * *]
    	
 
    
	
 
    	
2009
    	
$
    	
[* * *]
    	
 
    
	
 
    	
2010 and   thereafter
    	
$
    	
[* * *]
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
Licensed Service   Revenues:
    	
 
    	
 
    
	
 
    	
2008
    	
$
    	
[* * *]
    	
 
    
	
 
    	
2009
    	
$
    	
[* * *]
    	
 
    
	
 
    	
2010 and   thereafter
    	
$
    	
[* * *]
    	
 
    

 

7.4.                            Subject to overriding obligations to the U.S. Government, if LICENSEE is unable to meet any of its diligence obligations set forth in Paragraphs 7.1, 7.2, 7.3, or 7.4 then REGENTS will so notify LICENSEE of failure to perform. LICENSEE will have the right and option to extend the target date of any such due diligence obligation for a period of six (6) months upon the payment of [* * *] within thirty (30) days of the date to be extended for each such extension option exercised by LICENSEE. LICENSEE may further extend the target date of any diligence obligation for an additional six (6) months upon payment of an additional [* * *]. Additional extensions may be granted only by mutual written agreement of the parties to this Agreement. These payments are in addition to the minimum royalty payments specified in Paragraph 6.1. Should LICENSEE opt not to extend the diligence obligation or fail to meet it by the extended target date, then REGENTS will have the right and option either to terminate this Agreement at any time after 10 years from the effective date or to reduce LICENSEE’s exclusive license to a non-exclusive royalty-bearing license at any time after 3 years from the effective date. This right, if exercised by REGENTS, supersedes the rights granted in Article 3. The right to terminate this Agreement or reduce LICENSEE’s exclusive license granted hereunder to a non-exclusive license will be REGENTS sole remedy for breach of this Article 7.

 

7.5.                            At the request of either party, any controversy or claim arising out of or relating to the diligence provisions of this Article 7 will be settled by arbitration conducted in San Francisco, California in accordance with the then current Licensing Agreement Arbitration Rules of the American Arbitration Association. Judgment upon the award rendered by the arbitrator(s) will be binding on the parties and may be entered by either party in the court or forum having jurisdiction. In determination of due diligence, the arbitrator may determine solely the issues of fact or law with respect to termination of LICENSEE’s rights under this

 

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Agreement but will not have the authority to award monetary damages or grant equitable relief.

 

7.6.                            To exercise either the right to terminate this Agreement or to reduce the license to a non-exclusive license for lack of diligence under Paragraph 7.4, REGENTS will give LICENSEE written notice of the deficiency. LICENSEE thereafter has sixty (60) days to cure the deficiency or to request arbitration. If REGENTS has not received a written request for arbitration or satisfactory tangible evidence that the deficiency has been cured by the end of the sixty (60) - day period, then REGENTS may, at its option, either terminate the Agreement at any time after 10 years from the effective date or reduce LICENSEE’s exclusive license to a non-exclusive license at any time after 3 years from the effective date by giving written notice to LICENSEE. These notices will be subject to Article 23 (Notices).

 

8.                                      PROGRESS AND ROYALTY REPORTS

 

8.1.                            For the period beginning January 1st 2007, LICENSEE will submit to REGENTS a semi-annual progress report covering LICENSEE’s activities related to the development and testing of all LICENSED PRODUCTS, LICENSED SERVICES and LICENSED METHOD and the obtaining of necessary governmental approvals, if any, for marketing in the United States. These progress reports will be made for all development activities until the first SALE occurs in the United States.

 

8.2.                            Each progress report will be a detailed summary of activities of LICENSEE’s progress in development of LICENSED PRODUCTS, LICENSED SERVICES, and LICENSED METHOD, and in meeting its diligence obligations under Article 7 similar in form to what LICENSEE presents to its Board of Directors or investors, and will include the following: summary of work completed and in progress; current schedule of anticipated events and milestones, including diligence milestones under Paragraph 7.4.

 

8.3.                            LICENSEE also will report to REGENTS in its immediately subsequent progress and royalty reports, the date of first SALE.

 

8.4.                            After the first SALE anywhere in the world, LICENSEE will make quarterly royalty reports to REGENTS within sixty (60) days after the quarters ending March 31, June 30, September 30, and December 31, of each year. Each such royalty report will include at least the following:

 

(a)                                 The number of LICENSED PRODUCTS manufactured and the number SOLD;

(b)                                 Gross revenue from SALE of LICENSED PRODUCTS, LICENSED SERVICES and LICENSED METHOD;

(c)                                  NET SALES pursuant to Paragraph 2.5;

 

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(d)                                 Total royalties due REGENTS; and

(e)                                  Names and addresses of any AFFILIATES with activities falling under this Agreement, and new sublicensees along with a summary of the material terms of each new sublicense agreement entered into during the reporting quarter.

 

8.5.                            If no SALES have occurred during the report period, a statement to this effect is required in the royalty report for that period.

 

9.                                      BOOKS AND RECORDS

 

9.1.                            LICENSEE will keep full, true, and accurate books of accounts containing all particulars that may be necessary for the purpose of showing the amount of royalties payable to REGENTS and LICENSEE’s compliance with other obligations under this Agreement. Said books of accounts will be kept at LICENSEE’s principal place of business or the principal place of business of the appropriate division of LICENSEE to which this Agreement relates. Said books and the supporting data will be open at all reasonable times during normal business hours upon reasonable notice, for five (5) years following the end of the calendar year to which they pertain, to the inspection and audit by representatives of REGENTS for the purpose of verifying LICENSEE’s royalty statement or compliance in other respects with this Agreement but not more often than once in any twelve (12) month period. Such representative will be bound to hold all information in confidence except as necessary to communicate LICENSEE’s non-compliance with this Agreement to REGENTS.

 

9.2.                            The fees and expenses of REGENTS’ representatives performing such an examination will be borne by REGENTS. However, if an error in underpaid royalties to REGENTS of more than five percent (5%) of the total royalties due for any year is discovered, then the fees and expenses of these representatives will be borne by LICENSEE.

 

10.                               LIFE OF THE AGREEMENT

 

10.1.                     Unless otherwise terminated by the operation of law or by acts of the parties in accordance with the terms of this Agreement, this Agreement will be in force from the Effective Date and will remain in effect for the life of the last-to-expire patent or last-to-be-abandoned patent application licensed under this Agreement, whichever is later.

 

10.2.                     Any termination of this Agreement shall not affect the rights and obligations set forth in the following articles:

 

Article 2                                                                           Definitions

Article 4                                                                           Sublicenses

 

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Article 9                                                                           Books and Records

Article 10                                                                    Life of the Agreement

Article 13                                                                    Disposition of Licensed Products Upon Termination

Article 16                                                                    Use of Names and Trademarks

Article 17                                                                    Limited Warranties

Article 19                                                                    Indemnification

Article 23                                                                    Notices

Article 24                                                                    Late Payments

Article 26                                                                    Confidentiality

Article 29                                                                    Applicable Law; Venue; Attorney’s Fees

 

10.3.                     Any termination of this Agreement will not relieve LICENSEE of its obligation to pay any monies due or owing at the time of such termination and will not relieve any obligations, of either party to the other party, established prior to termination.

 

11.                               TERMINATION BY REGENTS

 

11.1.                     If LICENSEE should violate or fail to perform any term of this Agreement in any material respect, then REGENTS may give written notice of such default (“Notice of Default”) to LICENSEE. If LICENSEE should fail to repair such default or to request arbitration in the case of breach of a diligence requirement under Article 7 within sixty (60) days of the effective date of such notice, REGENTS will have the right to terminate this Agreement and the licenses herein by a second written notice (“Notice of Termination”) to LICENSEE. If LICENSEE shall request arbitration in the case of breach of a diligence requirement under Article 7, this Agreement may not be terminated by REGENTS until such Arbitration is resolved. If a Notice of Termination is sent to LICENSEE, this Agreement will automatically terminate on the effective date of such notice. Such termination will not relieve LICENSEE of its obligation to pay any royalty or license fees owing at the time of such termination and will not impair any accrued rights of REGENTS. These notices will be subject to Article 23 (Notices).

 

12.                               TERMINATION BY LICENSEE

 

12.1.                     LICENSEE will have the right at any time to terminate this Agreement in whole or as to any portion of REGENTS’ PATENT RIGHTS by giving notice in writing to REGENTS. Such notice of termination will be subject to Article 23 (Notices) and termination of this Agreement will be effective thirty (30) days after the effective date of such notice.

 

12.2.                     Any termination pursuant to Paragraph 12.1 will not relieve LICENSEE of any obligation or liability accrued hereunder prior to such termination or rescind anything done by LICENSEE or any payments made to REGENTS hereunder

 

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prior to the time such termination becomes effective, and such termination will not affect in any manner any rights of REGENTS arising under this Agreement prior to such termination.

 

13.                               DISPOSITION OF LICENSED PRODUCTS UPON TERMINATION

 

13.1.                     Upon termination of this Agreement, for a period of one hundred and eighty (180) days after the date of termination LICENSEE may complete and SELL any partially made LICENSED PRODUCTS and continue to render any previously commenced LICENSED SERVICES, and continue the practice of LICENSED METHOD only to the extent necessary to do so; provided, however, that all such SALES will be subject to the terms of this Agreement including, but not limited to, the payment of royalties at the rate and at the time provided herein and the rendering of reports thereon.

 

14.                               PATENT PROSECUTION AND MAINTENANCE

 

14.1.                     REGENTS will diligently prosecute and maintain the United States and foreign patent applications and patents under REGENTS’ PATENT RIGHTS, subject to LICENSEE’S reimbursement of REGENTS’ out of pocket costs, and all patent applications and patents under REGENTS’ PATENT RIGHTS will be held in the name of REGENTS. REGENTS will have sole responsibility for retaining and instructing patent counsel, but continued use of such counsel at any point in the patent prosecution process subsequent to initial filing of a U.S. patent application covering the INVENTION shall be subject to the approval of LICENSEE. If LICENSEE rejects three (3) of REGENTS’ choice of prosecution counsel, then REGENTS may select new prosecution counsel without LICENSEE’s consent. REGENTS shall promptly provide LICENSEE with copies of all relevant documentation so that LICENSEE may be currently informed and apprised of the continuing prosecution and LICENSEE agrees to keep this documentation confidential. LICENSEE may comment upon such documentation and REGENTS and its patent counsel shall consider such comments in good faith, provided, however, that if LICENSEE after having been provided such documentation has not commented upon such documentation in reasonable time for REGENTS to sufficiently consider LICENSEE’s comments prior to the deadline for filing a response with the relevant government patent office, REGENTS will be free to respond appropriately without consideration of LICENSEE’s comments. LICENSEE and LICENSEE’s patent counsel will have the right to consult with patent counsel chosen by REGENTS.

 

14.2.                     REGENTS will use reasonable efforts to prepare or amend any patent application to include claims reasonably requested by LICENSEE to protect the LICENSED PRODUCTS contemplated to be SOLD or to be practiced under this Agreement.

 

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14.3.                     Subject to Paragraph 14.4, all past, present, and future costs for preparing, filing, prosecuting, and maintaining all United States and foreign patent applications, and patents under REGENTS’ PATENT RIGHTS will be borne by LICENSEE, so long as the licenses granted to LICENSEE herein are exclusive. LICENSEE will fully reimburse REGENTS for half of all outstanding patent costs within three (3) months of Effective Date and the remainder within nine (9) months of Effective Date.

 

Payments are due within thirty (30) days after receipt of invoice from REGENTS. If, however, REGENTS reduces the exclusive licenses granted herein to non-exclusive licenses pursuant to Paragraph 7.5 and REGENTS grants additional license(s), the costs of preparing, filing, prosecuting and maintaining such patent applications and patents will be divided equally among the licensed parties from the effective date of each subsequently granted license agreement.

 

14.4.                     LICENSEE’s obligation to underwrite and to pay all domestic and foreign patent filing, prosecution, and maintenance costs will continue for so long as this Agreement remains in effect, provided, however, that LICENSEE may terminate its obligations with respect to any given patent application or patent in any or all designated countries upon three (3) months’ written notice to REGENTS. REGENTS will use its best efforts to curtail patent costs when such a notice is received from LICENSEE. REGENTS may continue prosecution and/or maintenance of such applications or patents at its sole discretion and expense; provided, however, that LICENSEE will have no further right or licenses thereunder.

 

15.                               MARKING

 

15.1.                     LICENSEE will mark all products made, used or SOLD under this Agreement, or their containers, in accordance with applicable patent marking laws.

 

16.                               USE OF NAMES AND TRADEMARKS

 

16.1.                     Nothing contained in this Agreement will be construed as conferring any right to use in advertising, publicity or other promotional activities any name, trademark, trade name, or other designation of either party hereto by the other (including any contraction, abbreviation, or simulation of any of the foregoing). Unless required by law or consented to in writing by REGENTS, the use by LICENSEE of the name “The Regents of the University of California” or the name of any University of California campus in advertising, publicity or other promotional activities is expressly prohibited.

 

16

 

THIS EXHIBIT HAS BEEN REDACTED AND IS THE SUBJECT OF A CONFIDENTIAL TREATMENT REQUEST.  REDACTED MATERIAL IS MARKED WITH [* * *] AND HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

 

17.                               LIMITED WARRANTIES

 

17.1.                     REGENTS warrants to LICENSEE that it has the lawful right to grant this license and, to the extent of the actual knowledge of the licensing professional responsible for administering this Agreement as of the Effective Date, that it is the sole owner of all right, title, and interest in and to the Invention.

 

17.2.                     This license and the associated INVENTION are provided WITHOUT WARRANTY OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR ANY OTHER WARRANTY, EXPRESSED OR IMPLIED. REGENTS MAKES NO REPRESENTATION OR WARRANTY THAT THE INVENTION, REGENTS’ PATENT RIGHTS, LICENSED PRODUCTS, LICENSED SERVICES OR LICENSED METHOD WILL NOT INFRINGE ANY PATENT OR OTHER PROPRIETARY RIGHT.

 

17.3.                     IN NO EVENT WILL REGENTS BE LIABLE FOR ANY INCIDENTAL, SPECIAL OR CONSEQUENTIAL DAMAGES RESULTING FROM EXERCISE OF THIS LICENSE OR THE USE OF THE INVENTION, REGENTS’ PATENT RIGHTS, LICENSED METHOD, LICENSED SERVICES OR LICENSED PRODUCTS.

 

17.4.                     Nothing in this Agreement is or will be construed as:

 

(a)                                 A warranty or representation by REGENTS as to the validity, enforceability or scope of any REGENTS PATENT RIGHTS; or

 

(b)                                 A warranty or representation that anything made, used, or SOLD under any license granted in this Agreement is or will be free from infringement of patents of third parties; or

 

(c)                                  An obligation to bring or prosecute actions or suits against third parties for patent infringement, except as provided in Article 18; or

 

(d)                                 Conferring by implication. estoppel, or otherwise any license or rights under any patents of REGENTS other than REGENTS’ PATENT RIGHTS as defined herein, regardless of whether such patents are dominant or subordinate to REGENTS’ PATENT RIGHTS; or

 

(e)                                  An obligation to furnish any know-how not provided in the patents and patent applications under REGENTS’ PATENT RIGHTS.

 

18.                               PATENT INFRINGEMENT

 

18.1.                     In the event that LICENSEE learns of the substantial infringement of any REGENTS’ PATENT RIGHTS under this Agreement, LICENSEE will promptly provide REGENTS with notice and reasonable evidence of such infringement

 

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(“Infringement Notice”). During the period and in a jurisdiction where LICENSEE has exclusive rights under this Agreement, neither party will notify a third party, including the infringer, of the infringement without first obtaining consent of the other party, which consent will not be unreasonably withheld. Both parties will use diligent efforts, in cooperation with each other, to terminate such infringement without litigation.

 

18.2.                     If the infringing activity of potential commercial significance has not been abated within ninety (90) days following the effective date of the Infringement Notice, LICENSEE may institute suit for patent infringement against the infringer. REGENTS may voluntarily join such suit at its own expense, but may not thereafter commence suit against the infringer for the acts of infringement that are the subject of LICENSEE’s suit or any judgment rendered in that suit. LICENSEE may not join REGENTS in a suit initiated by LICENSEE without REGENTS’ prior written consent. If, in a suit initiated by LICENSEE, REGENTS is involuntarily joined other than by LICENSEE, LICENSEE will pay any costs incurred by REGENTS arising out of such suit, including but not limited to, any legal fees of counsel that REGENTS selects and retains to represent it in the suit who shall be reasonably acceptable to LICENSEE, provided that if LICENSEE rejects two (2) of REGENTS choices of legal counsel then REGENTS may select such counsel without LICENSEE’S consent.

 

18.3.                     If, within a hundred and twenty (120) days following the effective date of the Infringement Notice, the infringing activity of potential commercial significance has not been abated and if LICENSEE has not brought suit against the infringer, REGENTS may institute suit for patent infringement against the infringer. If REGENTS institutes such suit, LICENSEE may not join such suit without REGENTS’ consent and may not thereafter commence suit against the infringer for the acts of infringement that are the subject of REGENTS’ suit or any judgment rendered in that suit.

 

18.4.                     Such legal action as is decided upon will be at the expense of the party on account of whom suit is brought and all recoveries recovered thereby will belong to such party, provided that legal action brought jointly by REGENTS and LICENSEE and participated in by both, will be at the joint expense of the parties and all recoveries will be allocated in the following order: a) to each party reimbursement in equal amounts of the attorney’s costs, fees, and other related expenses to the extent each party paid for such costs, fees, and expenses until all such costs, fees, and expenses are consumed for each party; and b) any remaining amount shared jointly by them in proportion to the share of expenses paid by each party, but in no event will REGENTS’ share be less than ten percent (10%) of such remaining amount if REGENTS is a party.

 

Each party will cooperate with the other in litigation instituted hereunder but at the expense of the party on account of whom suit is brought. Such litigation will

 

18

 

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be controlled by the party bringing the action, except that REGENTS may be represented by counsel of its choice in any suit brought by LICENSEE.

 

18.5.                     Any agreement made by LICENSEE for the purposes of settling litigation or other dispute shall comply with the requirements of Article 4 (Sublicenses) of this Agreement.

 

19.                               INDEMNIFICATION

 

19.1.                     LICENSEE will, and will require its sublicensees to, indemnify, hold harmless, and defend REGENTS and its officers, employees, and agents; sponsor(s) of the research that led to the INVENTION; and the inventors of any patents and patent applications under REGENTS PATENT RIGHTS and their employers against any and all claims, suits, losses, damages, costs, fees, and expenses resulting from or arising out of exercise of this license or any sublicense. This indemnification will include, but not be limited to, any product liability.

 

19.2.                     LICENSEE, at its sole cost and expense, will insure its activities in connection with any work performed hereunder and will obtain, keep in force, and maintain the following insurance:

 

(a)                                 Commercial Form General Liability Insurance (contractual liability included) with limits as follows:

 

From and after the Effective Date of this Agreement:

 

	
Each Occurrence
    	
 
    	
$
    	
500,000
    	
 
    
	
Products/Completed   Operations Aggregate
    	
 
    	
$
    	
1,000,000
    	
 
    
	
Personal and   Advertising Injury
    	
 
    	
$
    	
500,000
    	
 
    
	
General Aggregate
    	
 
    	
$
    	
1,000,000
    	
 
    

 

From and after the date LICENSEE shall commence clinical trials of any Licensed Product or Derived Product:

 

	
Each Occurrence
    	
 
    	
$
    	
5,000,000
    	
 
    
	
Products/Completed   Operations Aggregate
    	
 
    	
$
    	
10,000,000
    	
 
    
	
Personal and   Advertising Injury
    	
 
    	
$
    	
5,000,000
    	
 
    
	
General Aggregate
    	
 
    	
$
    	
10,000,000
    	
 
    

 

If the above insurance is written on a claims-made form, it shall continue for three (3) years following termination or expiration of this Agreement. The insurance shall have a retroactive date of placement prior to or coinciding with the commencement of the insurance requirements of this Paragraph 19.2(a); and

 

19

 

 

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(b)                                 Worker’s Compensation as legally required in the jurisdiction in which LICENSEE is doing business.

 

19.3.                     The coverage and limits referred to in Subparagraphs 19.2a and 19.2b above will not in any way limit the liability of LICENSEE under this Article. Upon the execution of this Agreement, LICENSEE will furnish REGENTS with certificates of insurance evidencing compliance with all requirements. Such certificates will:

 

(a)                                 provide for thirty (30) days’ (ten (10) days for non-payment of premium) advance written notice to REGENTS of any cancellation of insurance coverages; LICENSEE will promptly notify REGENTS of any material modification of the insurance coverages;

 

(b)                                 indicate that REGENTS has been endorsed as an additional insured under the coverage described above in Subparagraph 19.2; and

 

(c)                                  include a provision that the coverage will be primary and will not participate with, nor will be excess over, any valid and collectable insurance or program of self-insurance maintained by REGENTS.

 

19.4.                     REGENTS will promptly notify LICENSEE in writing of any claim or suit brought against REGENTS for which REGENTS intends to invoke the provisions of this Article 19. LICENSEE will keep REGENTS informed of its defense of any claims pursuant to this Article 19.

 

20.                               EXPORT CONTROLS

 

20.1.                     LICENSEE understands that REGENTS is subject to United States laws and regulations (including the Arms Export Control Act, as amended, and the Export Administration Act of 1979), controlling the export of technical data, computer software, laboratory prototypes and other commodities, and REGENTS’ obligations under this Agreement are contingent on compliance with such laws and regulations. The transfer of certain technical data and commodities may require a license from the cognizant agency of the United States Government and/or written assurances by LICENSEE that LICENSEE will not export such technical data and/or commodities to certain foreign countries without prior approval of such agency. REGENTS neither represents that a license will not be required nor that, if required, it will be issued.

 

20.2.                     LICENSEE shall comply with all applicable international, national, state, regional, and local laws and regulations in performing its obligations hereunder and in its use, manufacture, Sale, or import of the LICENSED PRODUCTS, LICENSED SERVICES, or practice of the LICENSED METHOD. LICENSEE will observe all applicable United States and foreign laws with respect to the transfer of LICENSED PRODUCTS and related technical data and the provision

 

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of LICENSED SERVICES to foreign countries including without limitation, the International Traffic in Arms Regulations (ITAR) and the Export Administration Regulations. LICENSEE shall manufacture LICENSED PRODUCTS and practice the LICENSED METHOD in compliance with applicable government importation laws and regulations of a particular country for LICENSED PRODUCTS made outside the particular country in which such LICENSED PRODUCTS are used, Sold, or otherwise exploited.

 

21.                               GOVERNMENT APPROVAL OR REGISTRATION

 

21.1.                     If this Agreement or any associated transaction is required by the law of any nation to be either approved or registered with any governmental agency, LICENSEE will assume all legal obligations to do so. LICENSEE will notify REGENTS if it becomes aware that this Agreement is subject to a United States or foreign government reporting or approval requirement. LICENSEE will make all necessary filings and pay all costs including fees, penalties, and all other out-of-pocket costs associated with such reporting or approval process.

 

22.                               ASSIGNMENT

 

22.1.                     This Agreement is binding upon and shall inure to the benefit of REGENTS, its successors and assigns. This Agreement will be personal to LICENSEE and assignable by LICENSEE only with the written consent of REGENTS, except that LICENSEE may freely assign this Agreement to an acquirer of all or substantially all of LICENSEE’s stock, assets or the portion of LICENSEE’s business to which this Agreement relates.

 

23.                               NOTICES

 

23.1.                     All notices under this Agreement will be deemed to have been fully given and effective when done in writing and delivered in person, or mailed by registered or certified U.S. mail, or deposited with a carrier service requiring signature by recipient, and addressed as follows:

 

	
To REGENTS:
    	
 
    	
Office of Technology Licensing
    
	
 
    	
 
    	
2150 Shattuck Avenue, Suite 510
    
	
 
    	
 
    	
Berkeley, CA 94720-1620
    
	
 
    	
 
    	
Attn.: Director (UC Case No.: B98-039)
    
	
 
    	
 
    	
 
    
	
To LICENSEE:
    	
 
    	
Genocea, Inc.
    
	
 
    	
 
    	
c/o Lux Capital
    
	
 
    	
 
    	
140 East 45th Street, 30th Floor
    
	
 
    	
 
    	
New York, NY 10017
    
	
 
    	
 
    	
Attn.: Robert Paull
    

 

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

 

 

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24.                               LATE PAYMENTS

 

24.1.                     If monies owed to REGENTS under this Agreement are not received by REGENTS when due, LICENSEE will pay to REGENTS interest charges at a rate of ten percent (10%) per annum. Such interest will be calculated from the date payment was due until actually received by REGENTS. Such accrual of interest will be in addition to, and not in lieu of, enforcement of any other rights of REGENTS related to such late payment. Acceptance of any late payment will not constitute a waiver under Article 25 (Waiver) of this Agreement.

 

25.                               WAIVER

 

25.1.                     The failure of either party to assert a right hereunder or to insist upon compliance with any term or condition of this Agreement will not constitute a waiver of that right or excuse a similar subsequent failure to perform any such term or condition by the other party. None of the terms and conditions of this Agreement can be waived except by the written consent of the party waiving compliance.

 

26.                               CONFIDENTIALITY

 

26.1.                     Each party will hold the other party’s proprietary business and technical information, patent prosecution material and other proprietary information, including the negotiated terms of this Agreement, in confidence and against disclosure to third parties with at least the same degree of care as it exercises to protect its own data and license agreements of a similar nature. This obligation will expire five (5) years after the termination or expiration of this Agreement.

 

26.2.                     Nothing contained herein will in any way restrict or impair the right of LICENSEE or REGENTS to use, disclose, or otherwise deal with any information or data which:

 

(a)                                 at the time of disclosure to a receiving party is generally available to the public or thereafter becomes generally available to the public by publication or otherwise through no act of the receiving party;

 

(b)                                 the receiving party can show by written record was in its possession prior to the time of disclosure to it hereunder and was not acquired directly or indirectly from the disclosing party;

 

(c)                                  is independently made available to the receiving party without restrictions as a matter of right by a third party; or

 

(d)                                 is subject to disclosure under the California Public Records Act or other requirements of law.

 

22

 

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26.3.                     REGENTS will be free to release to the inventors and senior administrators employed by REGENTS the terms and conditions of this Agreement upon their request. If such release is made, REGENTS will inform such employees of the confidentiality obligations set forth above and will request that they do not disclose such terms and conditions to others. Should a third party inquire whether a license to REGENTS’ PATENT RIGHTS is available, REGENTS may disclose the existence of this Agreement and the extent of the grant in Articles 3 and 4 to such third party, but will not disclose the name of LICENSEE unless LICENSEE has already made such disclosure publicly.

 

26.4.                     LICENSEE and REGENTS agree to destroy or return to the disclosing party proprietary information received from the other in its possession within fifteen (15) days following the effective date of termination of this Agreement. However, each party may retain one copy of proprietary information of the other solely for archival purposes in non-working files for the sole purpose of verifying the ownership of the proprietary information, provided such proprietary information will be subject to the confidentiality provisions set forth in Article 26. LICENSEE and REGENTS agree to provide each other, within thirty (30) days following termination of this Agreement, with a written notice that proprietary information has been returned or destroyed.

 

27.                               FORCE MAJEURE

 

27.1.                     Except for LICENSEE’s obligation to make any payments to REGENTS hereunder, the parties to this Agreement shall be excused from any performance required hereunder if such performance is rendered impossible or unfeasible due to any catastrophes or other major events beyond their reasonable control, including, without limitation, war, riot, and insurrection; laws, proclamations, edicts, ordinances, or regulations; strikes, lockouts, or other serious labor disputes; and floods, fires, explosions, or other natural disasters. When such events have abated, the parties respective obligations hereunder will resume.

 

28.                               SEVERABILITY

 

28.1.                     The provisions of this Agreement are severable, and in the event that any provision of this Agreement will be determined to be invalid or unenforceable under any controlling body of law, such invalidity or enforceability will not in any way affect the validity or enforceability of the remaining provisions hereof.

 

29.                               APPLICABLE LAW; VENUE; ATTORNEYS’ FEES

 

29.1.                     THIS AGREEMENT WILL BE CONSTRUED, INTERPRETED, AND APPLIED IN ACCORDANCE WITH THE LAWS OF THE STATE OF CALIFORNIA, excluding any choice of law rules that would direct the application of the laws of another jurisdiction, but the scope and validity of any

 

23

 

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patent or patent application under REGENTS’ PATENT RIGHTS will be determined by the applicable law of the country of such patent or patent application. Any legal action brought by the parties relating to this Agreement will be conducted in San Francisco, California. The prevailing party in any legal action under this Agreement will be entitled to recover its reasonable attorneys’ fees in addition to its costs and necessary disbursements.

 

30.                               SCOPE OF AGREEMENT

 

30.1.                     This Agreement incorporates the entire agreement between the parties with respect to the subject matter hereof, and this Agreement may be altered or modified only by written amendment duly executed by the parties hereto.

 

IN WITNESS WHEREOF, the parties hereto have executed this Agreement in duplicate originals by their duly authorized officers or representatives.

 

 

	
THE REGENTS OF THE
    	
GENOCEA, INC.
    
	
UNIVERSTY OF CALIFORNIA
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
By
    	
/s/ Veronica Lanier
    	
 
    	
By
    	
/s/ Robert Paull
    
	
 
    	
Veronica Lanier
    	
 
    	
 
    
	
 
    	
Acting Director
    	
 
    	
Robert Paull
    
	
 
    	
Office of Technology Licensing
    	
 
    	
 
    
	
 
    	
 
    	
Acting President
    
	
 
    	
 
    	
 
    
	
Date
    	
September 1, 2006
    	
 
    	
Date
    	
8/30/06
    

 

24

 

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GENOCEA, INC. CAPITALIZATION TABLE - Confidential Information

 

FOUNDERS’ STOCK (Common Stock Capitalization Before Series A Preferred Stock Financing)

 

	
 
    	
% of Founders’ Stock
    	
 
    	
# of Shares of Common Stock
    
	
[* * *]
    	
 
    	
 
    	
 
    

 

25EXHIBIT 10.6

 

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PATENT LICENSE AGREEMENT

 

BETWEEN

 

GENOCEA BIOSCIENCES, INC.

 

AND

 

UNIVERSITY OF WASHINGTON

 

FOR

 

“THE USE OF HERPES SIMPLEX VIRUS TYPE 2 ANTIGENS AS IMMUNOPROPHYLAXIS OR IMMUNOTHERAPY TO PREVENT OR TREAT HSV INFECTIONS IN HUMANS”

 

UWTT REF# 2158-2670DL, 2473-3146DL and 2709-3649DL

 

UWTT AGREEMENT# 22557A

 

Dated January 27, 2010 and as amended on July 19, 2012 (Amendment No. 1)

 

 

THIS EXHIBIT HAS BEEN REDACTED AND IS THE SUBJECT OF A CONFIDENTIAL TREATMENT REQUEST.  REDACTED MATERIAL IS MARKED WITH [* * *] AND HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

 

TABLE OF CONTENTS

 

	
1
    	
Definitions
    	
2
    
	
 
    	
 
    	
 
    
	
2
    	
Term
    	
5
    
	
 
    	
 
    	
 
    
	
3
    	
Grant of License
    	
5
    
	
 
    	
 
    	
 
    
	
4
    	
Applications and Patents
    	
8
    
	
 
    	
 
    	
 
    
	
5
    	
Commercialization
    	
9
    
	
 
    	
 
    	
 
    
	
6
    	
Payments, Reimbursements, Reports, and Records
    	
10
    
	
 
    	
 
    	
 
    
	
7
    	
Infringement
    	
12
    
	
 
    	
 
    	
 
    
	
8
    	
Patent Validity
    	
13
    
	
 
    	
 
    	
 
    
	
9
    	
Termination
    	
14
    
	
 
    	
 
    	
 
    
	
10
    	
Release, Indemnification, and Insurance
    	
17
    
	
 
    	
 
    	
 
    
	
11
    	
Representations and Warranties
    	
18
    
	
 
    	
 
    	
 
    
	
12
    	
Damages
    	
19
    
	
 
    	
 
    	
 
    
	
13
    	
Amendment and Waiver
    	
20
    
	
 
    	
 
    	
 
    
	
14
    	
Assignment
    	
20
    
	
 
    	
 
    	
 
    
	
15
    	
Confidentiality
    	
20
    
	
 
    	
 
    	
 
    
	
16
    	
Construction
    	
21
    
	
 
    	
 
    	
 
    
	
17
    	
Enforceability
    	
22
    
	
 
    	
 
    	
 
    
	
18
    	
Third-Party Beneficiaries
    	
22
    
	
 
    	
 
    	
 
    
	
19
    	
Language
    	
22
    
	
 
    	
 
    	
 
    
	
20
    	
Notices
    	
22
    
	
 
    	
 
    	
 
    
	
21
    	
Patent Marking
    	
22
    
	
 
    	
 
    	
 
    
	
22
    	
Publicity
    	
23
    
	
 
    	
 
    	
 
    
	
23
    	
Relationship of Parties
    	
23
    
	
 
    	
 
    	
 
    
	
24
    	
Security Interest
    	
23
    
	
 
    	
 
    	
 
    
	
25
    	
Survival
    	
23
    
	
 
    	
 
    	
 
    
	
26
    	
Collection Costs and Attorneys’ Fees
    	
24
    
	
 
    	
 
    	
 
    
	
27
    	
Applicable Law
    	
24
    
	
 
    	
 
    	
 
    
	
28
    	
Forum Selection
    	
24
    
	
 
    	
 
    	
 
    
	
29
    	
Dispute Resolution
    	
24
    
	
 
    	
 
    	
 
    
	
30
    	
Entire Agreement
    	
26
    

 

i

 

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Exhibit A
    	
27
    
	
 
    	
 
    
	
Exhibit B
    	
32
    
	
 
    	
 
    
	
Exhibit C
    	
33
    

 

ii

 

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PATENT LICENSE AGREEMENT

 

This patent license agreement (the “Agreement”) is dated and effective as of January 27, 2010 (the “Effective Date”) and is made by and between the University of Washington, a public institution of higher education and an agency of the state of Washington, acting through UW TechTransfer, Technology Licensing (“University”), and Genocea Biosciences, Inc., a Delaware corporation with its principal place of business at 161 First Street, Suite 2C, Cambridge, MA 02142 (“Company”), (individually each a “Party” or collectively, the “Parties”).

 

Background

 

Whereas, University has the rights to certain technology made in the course of University research relating to the use of Herpes Simplex Virus Type 2 (“HSV2”) antigens as immunoprophylaxis or immunotherapy to prevent or treat HSV infections in humans;

 

Whereas, the Fred Hutchinson Cancer Research Center (“FHCRC”) is a joint owner of certain Licensed Patents, but has granted University the sole right to commercialize their rights in such Licensed Patents under an inter-institutional agreement with University dated April 28, 2009 (“Inter-Institutional Agreement”);

 

Whereas, University has entered into an option agreement dated as of May 11, 2009 with a Third Party whereby such Third Party has an option to obtain a license granting: (i) co-exclusive rights to Subset A and (ii) tri-exclusive rights to Subset B of Licensed Patents (such Third Party, “Third Party A” and such option agreement, “Option Agreement A”);

 

Whereas, University has entered into in an option agreement dated as of May 28, 2008 with a Third Party whereby such Third Party has an option to obtain non-exclusive rights to Subset B of Licensed Patents (such Third Party, “Third Party B”, and such option agreement, “Option Agreement B”);

 

Whereas, Corixa Corporation, prior to its acquisition by GlaxoSmithKline Biologicals North America, was originally a joint owner of certain Licensed Patents as set forth in Exhibit A but has now transferred and assigned its share of the title, rights and interests in the Licensed Patents to University on the condition that University undertakes for the entire life of the patents assigned not to use or assert or allow any licensee to use or assert said patents against Corixa Corporation or any company member of the Glaxo Group of companies;

 

Whereas, Company and University entered into a confidentiality agreement with an effective date of August 10, 2007 (“CDA”) and an option agreement with an effective date of June 30, 2008 (“Option Agreement”);

 

Whereas, Company now desires a license to the Licensed Patents granting (i) co-exclusive rights to Subset A of Licensed Patents and (ii) tri-exclusive rights to Subset B of Licensed Patents in the Field of Use; and

 

 

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Whereas, University is willing to grant to Company such a license on the terms set forth below.

 

NOW, THEREFORE, the Parties agree that:

 

1                                         Definitions.

 

For purposes of interpreting this Agreement, the following terms have the following meanings ascribed to them:

 

1.1                               “Affiliate” means an entity that is controlled by Company.  For the purposes of this Section 1.1, “controlled by” means either: a) the right to exercise 50% or more of the voting rights of such entity, or b) the power to direct or cause the direction of the management or policies of such entity.

 

1.2                               “Background Patents” means those patents listed in Section A1.3 of attached Exhibit A that are owned or controlled by University that are necessary to practice the inventions claimed in the Licensed Patents pursuant to Sections 1.8(a) - (c) and for each such patent, extensions and term restorations (including supplemental protection certificates), registrations, confirmations, renewals, re-examinations, reissues, and inventors certificates thereof, and foreign counterparts of such patent.

 

1.3                               “Co-Exclusive” means, with respect to a license, that such license may only be granted to Company and one Third Party.

 

1.4                               “Confidential Information” means, subject to the terms of this Agreement, any proprietary information or materials (biological, chemical, or otherwise) of the Parties not generally known to the public, including any information comprised by those materials, and including without limitation the inventions covered by the Licensed Patents and the business plans or reports of the Company and/or its Affiliates.  Confidential information does not include any information that:

 

1.4.1                     is or becomes part of the public domain through no fault of receiving Party;

 

1.4.2                     is known to receiving Party prior to the disclosure by the disclosing Party, as evidenced by documentation;

 

1.4.3                     is publicly released as authorized under this Agreement by University, its employees or agents;

 

1.4.4                     is subsequently obtained by a Party from a Third Party who is authorized to have such information; or

 

2

 

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1.4.5                     is independently developed by a Party without reliance on any portion of the Confidential Information received from the disclosing Party and without any breach of this Agreement as evidenced by documentation.

 

1.5                               “Event of Force Majeure” means an unforeseeable act that prevents a Party from performing one or more of its duties under this Agreement and that is beyond of the reasonable control of the Party.  An Event of Force Majeure includes acts of war or of nature, insurrection and riot, and labor strikes.  An Event of Force Majeure does not mean a Party’s inability to obtain a Third Party’s consent to any act or omission.

 

1.6                               “Fair Market Value” means the average closing price that the stock in question is publicly trading at for 20 days prior to the announcement of its purchase by the Sublicensee(s), or, if the stock is not publicly traded, the value of such stock as determined in good faith by the board of directors of Company.

 

1.7                               “Field of Use” means therapy that is administered to prevent or treat HSV2 infection.

 

1.8                               “Licensed Patents” means: (a) the patent(s) and patent application(s) described in Section Al of attached Exhibit A and any corresponding patent(s) issued during the term of this Agreement by the United States Patent and Trademark Office or any like foreign body with respect to such patent application(s); (b) for each patent application described in Subsection (a), any continuations, continuation-in-part (to the extent such claims are supported by a patent or patent application) set forth in Section Al of Exhibit A to benefit from the priority date of such patent or patent application), continued prosecutions, divisionals, substitutions thereof, and foreign counterparts of each of the foregoing; (c) for each patent described in Subsection (a), extensions and term restorations (including supplemental protection certificates), registrations, confirmations, renewals, re-examinations, reissues, and inventors certificates thereof, and foreign counterparts of each of the foregoing; and (d) Background Patents.

 

1.9                               “Licensed Product” means any product that is covered by one or more Valid Claims in a Licensed Patent.

 

1.10                        “Net Sales” means the gross amount invoiced or otherwise received by Company, Affiliates and its Sublicensees for sales, leases, and other dispositions of Licensed Products less (i) all trade, quantity, and cash discounts actually allowed, (ii) all credits and allowances actually granted due to rejections, returns, billing errors, and retroactive price reductions, (iii) duties, and (iv) excise, sale and use taxes, and equivalent taxes to the extent not reimbursable; provided that in no event shall the transfer of Licensed Products by Company or Affiliate to an Affiliate or Sublicensee be included in the calculation of Net Sales unless such transfer is in exchange for cash consideration and Company receives no further compensation for the sale of such Licensed Products by such Affiliate or Sublicensee.  Subject to this Section 1.10, on sales of Licensed Products made in other than an arms-length transaction, the value of the Net Sales attributed to such transaction shall be based upon the fair market value (as reasonably determined by

 

3

 

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Company) of the consideration which would have been received in an arms-length transaction, based on sales of like quantity and quality products on or about the time of this transaction.

 

1.11                        “Royalty Term” means, on a Licensed Product-by-Licensed Product and country-by-country basis, the period of time commencing on the Effective Date and extending until the earlier of (a) the termination of this Agreement, pursuant to and to the extent set forth in Article 9 hereof, and (b) the date on which the manufacture, import, use or sale of such Licensed Product is no longer covered by a Valid Claim of a Licensed Patent in such country.

 

1.12                        “Sublicense” means the grant by Company to a Third Party of any license, option, first right to negotiate, or other right granted under the Licensed Patents, in whole or in part.  For the avoidance of doubt, any arm’s length Third Party distributor (“Distributor”) to which Company or any Sublicensees sells a Licensed Product for resale of Licensed Product by the Distributor, and where Distributor has no other rights other than to resell Licensed Product, and for which resale Company and Sublicensees receive no further consideration (including but not limited to royalties and/or commissions) beyond the price for the initial sale to the Distributor, shall not be a considered a Sublicense.

 

1.13                        “Sublicensee” means a Third Party holding a Sublicense under the Licensed Patents.

 

1.14                        “Sublicensing Consideration” means all consideration, including but not limited to upfront fees, milestone payments, maintenance fees, non-cash consideration, and premiums over Fair Market Value of stock, but excluding the sharing of profits and royalties based on sales or orders of Licensed Products, payable by each Sublicensee for the grant of a Sublicense.  For avoidance of doubt, consideration paid to Company by Sublicensees for the performance of bona fide product development work, research work, marketing or promotional work, clinical studies and regulatory approvals performed by Company, pursuant to and as supported by an express agreement including a performance plan and commensurate budget is not deemed to be Sublicensing Consideration.  For the avoidance of doubt, consideration paid to Company by Sublicensee under an agreement which both includes a Sublicense and sets forth the terms under which the activities described in the preceding sentence will be provided by the Company shall not be deemed Sublicensing Consideration only to the extent such consideration is explicitly paid by Sublicensee for the performance of such activities and not for the grant of the Sublicense.

 

1.15                        “Subset A of Licensed Patents” means the patents and patent applications listed in Section Al.1 of Exhibit A.

 

1.16                        “Subset B of Licensed Patents” means the patents and patent applications listed in Section A1.2 of Exhibit A.

 

1.17                        “Territory” means worldwide.

 

1.18                        “Third Party” means an individual or entity other than University, Company and Affiliates.

 

4

 

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1.19                        “Tri-Exclusive” means, with respect to a license, that such license may only be granted to Company and two Third Parties.

 

1.20                        “Valid Claim” means (a) a claim in an issued and unexpired patent included in the Licensed Patents that: (i) has not been revoked or held unenforceable, unpatentable or invalid by a decision of a court or other governmental agency of competent jurisdiction, and not subject to appeal, (ii) has not been admitted to be invalid or unenforceable through reissue or disclaimer or otherwise and (iii) has not been lost through an interference, reexamination or reissue proceeding or (b) a pending claim of a pending patent application included in the Licensed Patents which has not been cancelled, withdrawn or abandoned or finally rejected by an administrative agency action from which no appeal can be taken.

 

2                                         Term.

 

The term of this Agreement will commence on the Effective Date and, unless terminated earlier as provided in Article 9, will expire on the date on which no Valid Claim in a Licensed Patent is pending or subsisting in any country in the Territory.

 

3                                         Grant of License.

 

3.1                               Company’s Rights.

 

3.1.1                     Subject to the terms and conditions of this Agreement, University hereby grants to Company, and Company hereby accepts, a Co-Exclusive license under the Subset A of the Licensed Patents and a Tri-Exclusive license under Subset B of the Licensed Patents to manufacture, have manufactured on Company’s behalf, use, offer to sell or sell, offer to lease or lease, import, or otherwise offer to dispose or dispose of Licensed Products in the Field of Use in the Territory.  Company may extend the license granted in the preceding sentence to any Affiliate provided that the Affiliate consents in writing to be bound by this Agreement to the same extent as Company.  Company agrees to deliver such contract to University within 30 days following execution thereof.  No provision of this Agreement grants Company or its Affiliates, by implication, estoppel or otherwise, any rights other than the rights expressly granted in this Agreement to a Licensed Patent, or to any other University-owned technology, patent applications, or patents.

 

3.1.2                     Notwithstanding Subsection 3.1.3, in the event that Third Party B does not exercise the option set forth in Option Agreement B to obtain non-exclusive rights to Subset B of Licensed Patents, the license under Subset B of Licensed Patents granted to Company in Subsection 3.1.1 will become a Co-Exclusive license unless Company, within [* * *] of being notified in writing of such license conversion by University, elects to maintain its Tri-Exclusive license to such rights.  If Company does not elect to maintain a Tri-Exclusive license to Subset B of Licensed Patents, notwithstanding anything to the contrary in Section A4 of Exhibit A, Company and University will amend this Agreement and Company will become responsible for [* * *].

 

5

 

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3.1.3                     If any rights under the Licensed Patents become available (the “Available Rights”) including without limitation as a result of Third Party A or Third Party B not obtaining a license under Option Agreement A or Option Agreement B, respectively, UW TechTransfer will endeavor to notify Company and Company may also inquire as to whether any Available Rights exist.  Upon Company’s inquiry as to whether any Available Rights exist, UW TechTransfer shall respond with information regarding Available Rights within 20 days following such inquiry.  Following the Company’s receipt of notice of Available Rights, Company can request that University enter into negotiations with Company regarding the grant of the Available Rights and University shall use good faith commercially reasonable efforts to negotiate with Company for a license to the Available Rights.

 

3.1.4                     Company shall have the right, exercisable from time to time during the term of this Agreement, to Sublicense its rights under this Agreement but only on an exclusive basis.  For the avoidance of doubt, Company shall not have the right to Sublicense the same scope of rights more than once at a time, but shall have the right to simultaneously enter into multiple Sublicenses provided the scope of rights granted in each such Sublicense differ, either with regards to the types of rights granted, the field of use or the territory.  Company, without University’s prior written consent, may not grant Sublicensees the right to grant sublicenses or the right to enforce Licensed Patents; provided, however that Company may grant Sublicensees the right to grant resale rights to Distributors.  Company shall remain responsible for its obligations under this Agreement, and shall ensure that the Sublicense agreement: (i) contains terms and conditions requesting Sublicensee to comply with the applicable terms and conditions under this Agreement (including a release substantially similar to that provided by Company in Section 10.1, a warranty substantially similar to that provided by Company in Section 11.1; University disclaimers and exclusions of warranties under Subsections 11.3.1 and 11.3.2; and limitations of remedies and damages substantially similar to those provided by Company in Article 12); and (ii) specifically incorporates provisions of this Agreement regarding obligations pertaining to indemnification, use of names and insurance.  Company shall deliver to University a true, correct, and complete copy of any Sublicense agreement or other agreement under which Company purports or intends to grant Sublicense rights at least 30 days after the execution of the agreement.  Company shall not enter into such agreement if the terms of the agreement are materially inconsistent in any respect with the terms of this Agreement.  Any Sublicense made in violation of this Subsection will be void.

 

3.2                               The United States Government’s Rights.  The inventions covered in the Licensed Patents arose, in whole or in part, from federally supported research and the federal government of the United States of America has certain rights in and to the Licensed Patents as those rights are described in Chapter 18, Title 35 of the United States Code and accompanying regulations, including Part 401, Chapter 37 of the Code of Federal Regulation.  The Parties’ rights and obligations under this Agreement to any government-funded inventions, including the grant of

 

6

 

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license set forth in Subsection 3.1.1, are subject to the applicable terms of the aforementioned United States laws.

 

3.3                               University’s Reservation of Rights.  University reserves all rights not expressly granted to Company under this Agreement.  In addition, University retains for itself and FHCRC an irrevocable, nonexclusive license to make, have made, and use products, processes, and other subject matter covered by the Licensed Patents in the Field of Use for academic research, instructional, or any other academic purpose.  Expressly included within this reservation of rights is the right (i) to use the Licensed Patents in sponsored research or collaborative research with any Third Party but only to the extent no such Third Party is granted any rights to the Licensed Patents or to commercialize Licensed Products, (ii) to grant material transfer agreements to materials whose composition of matter is covered by the Licensed Patents where the use of such materials is restricted to academic research, instructional, or any other academic purpose, and (iii) to publish any information included in the Licensed Patents or any other information that may result from University or FHCRC’s research.  If a patent application for any intellectual property arising from any rights retained under this Section 3.3 is filed by University, and UW TechTransfer is aware that such intellectual property has arisen as a result of retained rights (with no obligation for diligence except at Company’s reasonable request), University shall, as soon as administratively practicable (including without limitation, within 10 days of Company’s inquiry during the Term), notify Company and shall make commercially reasonable efforts to grant Company a license under such rights as available on commercially reasonable terms to manufacture, have manufactured on Company’s behalf, use, offer to sell or sell, offer to lease or lease, import or otherwise offer to dispose or dispose of Licensed Products in the Field of Use in the Territory.  For the avoidance of doubt, no right reserved pursuant to this Section 3.3 shall give University any right (i) to commercialize any Licensed Product or (ii) to grant any Third Party the right to commercialize any Licensed Product.

 

3.4                               Reservation of Rights for Humanitarian Purposes.  To the extent required under 35 U.S.C. §200 et seq., in exceptional circumstances, University retains the right to require Company to grant sublicenses to responsible applicants in the Field of Use under the Licensed Patents on terms that are reasonable under the circumstances; or, if Company fails to grant a license, to grant the license itself, if University determines (i) such action is necessary to meet health or safety needs that are not reasonably satisfied by Company; or (ii) the action is necessary to meet requirements for public use specified by federal regulations, and such requirements are not reasonably satisfied by Company.  Notwithstanding anything in this Section 3.4, University shall not require the granting of a sublicense, and shall not grant the license itself, unless such grant is required by U.S. federal law and the responsible applicant has first used commercially reasonable good faith efforts to negotiate the terms of such sublicense in good faith with Company.  No sublicense granted under this Section 3.4 shall be deemed a Sublicense under Section 3.1.4 and therefore, such grant shall not affect Company’s ability to grant a Sublicense of the same rights to a Third Party in the same Field of Use in the same Territory.

 

7

 

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4                                         Applications and Patents.

 

4.1                               Pre-Agreement Patent Filings and Licensed Product Sales.  Company represents that, to its knowledge, as of the Effective Date, it has not and does not manufacture, have manufactured, use, offer to sell or sell, offer to lease or lease, import, or otherwise offer to dispose or dispose of (a) any product or good that infringes (including under the doctrine of equivalents) a claim in any Licensed Patent, or (b) any product or good that is made using a process or machine that infringes (including under the doctrine of equivalents) a claim in a Licensed Patent.

 

4.2                               Patent Application Filings during the Term of this Agreement.

 

4.2.1                     University retains the sole and exclusive right to file or otherwise prosecute Licensed Patents and University shall not grant any right to file or otherwise prosecute Licensed Patents to any other Third Party or licensee of the Licensed Patents including, without limitation, Third Party A and Third Party B.  As set out in Section A4 of Exhibit A, Company shall pay, or reimburse University for paying, a pro rata share of all reasonable and necessary costs (including attorneys’ and application fees) incurred prior to, on, or after the Effective Date to apply for, prosecute, enforce, and maintain Licensed Patents including the costs of interferences, oppositions, re-examinations, and patent litigation.

 

4.2.2                     University, in consultation with Company, shall determine in which countries University will file, or cause to be filed, Licensed Patents.  Subject to Company’s compliance with Section A.4, (i) University shall request patent counsel to inform Company of the status of the prosecution of the Licensed Patents, including delivering to Company written communications from the patent office, (ii) University shall consult with the Company on the prosecution of the Licensed Patents, and (iii) Company’s suggestions and requests regarding patent prosecution, including the countries in which Licensed Patents are filed, will be reasonably considered and included unless University reasonably deems such action(s) to be materially adverse to University’s rights to the Licensed Patents.  In no event shall Company file a patent application for a Licensed Patent where all of the inventors are under University policy obligated to assign their rights in such patent application to University.  In the event that University inventors and Company inventors invent an invention jointly (as determined by U.S. patent laws), University and Company shall discuss in good faith whether and how to proceed with respect to any corresponding patent applications.

 

4.2.3                     No provision of this Agreement limits, conditions, or otherwise affects University’s right to prosecute Licensed Patents in any country.

 

4.3                               Maintenance of Licensed Patents.  Subject to Company’s compliance with Section A4 of attached Exhibit A, University shall take all commercially reasonable actions to cause each Licensed Patent to remain or be valid and subsisting.

 

8

 

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4.4                               Ownership of the Licensed Patents.  No provision of this Agreement grants Company any rights, titles, or interests (except for the grant of license in Subsection 3.1.1 of this Agreement) in the Licensed Patents, notwithstanding Company’s payment of all or any portion of the patent prosecution, maintenance, and related costs.

 

4.5                               Relative Rights.  University shall offer and grant other licensees of the Licensed Patents substantially similar rights and obligations to those granted to Company with respect to such licensee’s involvement in patent prosecution and reimbursement of patent prosecution costs as set forth in this Section 4.  In the event that University grants to another licensee more favorable rights with respect to such licensee’s involvement in patent prosecution and/or reimbursement of patent prosecution costs as set forth in this Section 4, then Company shall be entitled to the same rights as such other licensee.

 

5                                         Commercialization.

 

5.1                               Commercialization and Performance Milestones.  Company shall use its commercially reasonable efforts, consistent with reasonable business practices and judgment, to commercialize the inventions covered by the Licensed Patents and to make and sell Licensed Products within a reasonable period of time.  Unless excused by the occurrence of an Event of Force Majeure during the term of this Agreement, Company shall perform, or shall cause to happen or be performed, the performance milestones described in Section A2 of attached Exhibit A.

 

5.2                               Covenants Regarding the Manufacture of Licensed Products.  Company hereby covenants and agrees that the manufacture, use, sale, or transfer of Licensed Products will comply with all applicable federal and state laws, including all federal export laws and regulations.  Company hereby further covenants and agrees that, to the extent required by 35 United States Code Section 204, it shall, and it shall cause each Sublicensee, to substantially manufacture in the United States of America all products embodying or produced through the use of an invention that is subject to the rights of the federal government of the United States of America.

 

5.3                               Commercialization Reports.  Throughout the term of this Agreement and no later than 45 days after each yearly anniversary of the Effective Date, Company shall deliver to University written reports containing a summary of Company’s and Sublicensees’ efforts and plans to commercialize the inventions covered by the Licensed Patents and to make, have made on its behalf, use, offer to sell or sell, offer to lease or lease, import, or otherwise offer to dispose or dispose of Licensed Products.  Company shall not be obligated to prepare such commercialization reports in years Company delivers to University a written sales report under Section 6.4 provided that such obligation will resume if sales of Licensed Products ceases.  In relation to each of the performance milestones described in Section A2 of attached Exhibit A, each commercialization report will include reasonably sufficient information to demonstrate Company’s compliance with those performance milestones and will set out general timeframes and plans for those milestones which have not yet been met.

 

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THIS EXHIBIT HAS BEEN REDACTED AND IS THE SUBJECT OF A CONFIDENTIAL TREATMENT REQUEST.  REDACTED MATERIAL IS MARKED WITH [* * *] AND HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

 

5.4                               Use of Names and Trademarks or the Names of Faculty, Staff, or Students.   Unless otherwise specified herein, Company or Sublicensee shall not have any right or license to use the name or trademarks of University or FHCRC or the names or identities of any member of the faculty, staff, or student body of University or FHCRC.  Company shall not use, and shall not permit a Sublicensee to use, any such trademarks, names, or identities without University’s or FHCRC’s and, as the case may be, such member’s prior written approval.

 

5.5                               Use of Company’s Name and Trademarks.  Unless otherwise specified herein, University shall not have any right or license to use the name or trademarks of Company.

 

6                                         Payments, Reimbursements, Reports, and Records.

 

6.1                               Payments.  Company shall deliver to University the payments specified in Sections A3 and A4 of attached Exhibit A.  Company shall make such payments by check, wire transfer, or any other mutually agreed-upon and generally accepted method of payment.  All checks to University will be made payable to “University of Washington” and will be mailed to the address specified in Article 20 (Notices) of this Agreement and will include the University agreement number 22557A.  Upon request, University shall deliver to Company written wire transfer instructions.

 

6.2                               Currency and Checks.  All computations and payments made under this Agreement will be in United States dollars.  The exchange rate for the currency into dollars as reported in the Wall Street Journal as the New York foreign exchange mid-range rate on the last business day of the month in which the transaction was entered into will be used for determining the dollar value of transactions conducted in non-United States dollar currencies.

 

6.3                               Late Payments.  University may charge Company a late fee for all amounts owed to University that are overdue by 30 days or more unless such amount is disputed pursuant to this Section 6.3.  The late fee will be computed as the United States prime rate plus two percent (2%), compounded monthly, as set forth by The Wall Street Journal (Western edition) on the date on which such payment is due, of the outstanding, unpaid balance.  The payment of a late fee will not foreclose or limit University from exercising any other rights it may have as a consequence of the lateness of any payment.  The Parties agree to negotiate in good faith to resolve any dispute regarding payments within a reasonable period of time, but not to exceed 90 days, and during such time of good faith negotiations, the disputed payment shall not be considered late under this Agreement.  In the event such dispute is resolved in University’s favor, Company agrees to pay University the disputed amounts within 30 days of the resolution.  If payment is not made to University within this 30-day period, the payment will be considered overdue by 30 days or more under this Section 6.3.  In the event the Parties fail to resolve a payment dispute, the parties shall have all available remedies under Section 29 of this Agreement and at law.

 

6.4                               Sales Reports.  Within 45 days after the last day of each calendar quarter commencing the calendar quarter after Company effects its first commercial sale of a Licensed Product and during the term of this Agreement, Company shall deliver to University a written

 

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THIS EXHIBIT HAS BEEN REDACTED AND IS THE SUBJECT OF A CONFIDENTIAL TREATMENT REQUEST.  REDACTED MATERIAL IS MARKED WITH [* * *] AND HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

 

sales report (a copy of the form of which is attached as Exhibit B) recounting the number and Net Sales (expressed in U. S. dollars) of all sales, leases, or other dispositions of Licensed Products, whether made by Company or a Sublicensee, during such calendar quarter.  Included in that report shall be the names of Distributors, and the number and type of Licensed Products sold to such Distributor.  Company shall deliver such written report to University even if Company is not required hereunder to pay to University a payment for sales, leases, or other dispositions of Licensed Products during the calendar quarter.

 

6.5                               Records Retention and Audit Rights.

 

6.5.1                     Records Retained.  Throughout the term of this Agreement and for five years thereafter, Company, at its expense, shall keep and maintain and shall cause each Sublicensee to keep and maintain complete and accurate records of all sales, leases, and other dispositions of Licensed Products during the term of this Agreement and all other records related to this Agreement.

 

6.5.2                     Auditing Rights.  No more than once per every twelve-month period during the Term, Company shall permit, at the reasonable request of University, one or more accountants selected exclusively by the University (“Accountants”) to have access to Company’s records and books of account pertaining to this Agreement.  Accountants’ access will be during ordinary working hours to audit Company’s records for any payment period ending prior to such request, the correctness of any report or payment made under this Agreement, or to obtain information as to the payments due for any period in the case of failure of Company to report or make payment pursuant to the terms of this Agreement or to verify Company’s compliance with its payment obligations hereunder.

 

6.5.3                     Scope of Disclosure.  Accountants shall not disclose to University any information relating to the business of Company except that which is necessary to inform University of: the accuracy or inaccuracy of Company’s reports and payments; compliance or noncompliance by Company with the terms and conditions of this Agreement; and the extent of any inaccuracy or noncompliance.

 

6.5.4                     Accountant Copies.  Should Accountants believe there is an inaccuracy in any of Company’s payments or noncompliance by Company with any terms and conditions, Accountants shall have the right to make and retain copies (including photocopies) of any pertinent portions of the records and books of account.

 

6.5.5                     Costs of Audit.  If Company’s royalties calculated for any calendar year quarterly period are under-reported by more than five percent (5%), the costs of any audit and review initiated by University will be borne by Company; otherwise, University shall bear the costs of any audit initiated by University.

 

6.5.6                     Audit of Sublicensees.  Company shall use commercially reasonable efforts to cause each Sublicensee that sells, leases, or otherwise disposes of Licensed

 

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THIS EXHIBIT HAS BEEN REDACTED AND IS THE SUBJECT OF A CONFIDENTIAL TREATMENT REQUEST.  REDACTED MATERIAL IS MARKED WITH [* * *] AND HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

 

Products to grant University the same or similar right and obligations with respect to inspection and audit of Sublicensee’s records as University is granted with respect to Company’s records under this Section 6.5.  To the extent that Company does not have the right to grant University the right to audit a Sublicensee’s books and records hereunder, Company shall obtain for itself such right and, at the request of University, Company shall exercise such audit right with respect to such Sublicensee using auditors reasonably acceptable to University and provide the results of such audit for inspection by University pursuant to this Section 6.5, such results to be sufficient for University to confirm the amounts owed to University in connection with such Sublicense.  The Accountants shall provide a copy of their audit report to University and to Company, provided that University agrees to enter into a confidentiality agreement with such Sublicensee with respect to such audit report, provided that if Sublicensee and University cannot come to terms on such confidentiality agreement within 30 days, it shall not prevent University from viewing such report on terms of confidentiality and non-use no less restrictive upon University than University’s obligations to Company for Company Confidential Information.

 

7                                         Infringement.

 

7.1                               Third-Party Infringement of a Licensed Patent.

 

7.1.1                     Notice of Third Party’s Infringement.  If a Party learns of substantial, credible evidence that a Third Party is infringing a Licensed Patent in the Field of Use in the Territory, that Party will promptly deliver written notice of the possible infringement to the other Party, describing in detail all relevant information to which that Party has access or control suggesting infringement of the Licensed Patent.

 

7.1.2                     University Right to Institute Action.  If University, in accordance with the terms and conditions of this Agreement, chooses to institute suit against an alleged infringer, University may bring such suit in its own name (or, if required by law, in its and Company’s name) and at its own expense, and Company shall, but at University’s expense for Company’s reasonable associated expenses, fully and promptly cooperate and assist University in connection with any such suit.  All license fees, royalties, damages, awards, or settlement proceeds arising from such a University-initiated action will be solely for the account of University.  University shall inform Company in advance of its decision to institute such suit, and the parties shall consult in good faith as to potential strategy or strategies to manage infringement prior to any during any such suit.

 

7.1.3                     No Obligation to Institute Action; Company’s Step-In Rights.  If University decides not to institute such suit, University shall, within the earlier of (i) sixty (60) days of the date University was reasonably aware or notified of the possible infringement and (ii) twenty (20) business days before the time limit to respond, if any, set forth in the applicable laws and regulations for the filing of such actions, notify Company, as well as its then-current other licensee(s) under the applicable Licensed Patent (collectively, the “Licensees”). In such event, the Licensees shall have the right

 

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THIS EXHIBIT HAS BEEN REDACTED AND IS THE SUBJECT OF A CONFIDENTIAL TREATMENT REQUEST.  REDACTED MATERIAL IS MARKED WITH [* * *] AND HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

 

(but not the obligation) to institute such suit, and at a Licensee’s request, University shall provide the Licensees with necessary documentation and assistance to facilitate the Licensees’ efforts therefore, including facilitating correspondence between the Licensees.

 

In any prosecution initiated by Company, Company must notify the other Licensees of the existence of such legal action and allow the other Licensees to join as plaintiff.  In addition, in the event other Licensee(s) instigates an infringement prosecution, Company hereby consents to being joined as a plaintiff in such suit solely for the purpose of procuring standing to bring the action and at the sole expense of the initiating Licensee(s).  Company acknowledges that it and the other Licensees, if applicable, will need to mutually agree upon matters related to the prosecution, including without limitation, litigation strategy and the allocation of expenses and recovery; provided, however that (1) priority for leading any action shall be given in the following order: (a) unless the Licensees have otherwise mutually agreed, to the Licensee paying all or a substantial portion of the expenses related to such prosecution if the other Licensee(s) are unwilling or unable to be reasonably responsible for such costs, (b) to the Licensee(s) having a marketed product with respect to which such Third Party infringement is or may be competitive; (c) to the Licensee(s) with a product in development with respect to which such Third Party infringement is or may be competitive and (2) if reasonably requested by a Licensee, University shall facilitate the Licensees’ discussions on such matters.

 

Company shall not initiate any suit against Corixa Corporation or any company member of the Glaxo Group of companies for infringement of those certain Licensed Patents annotated as being patents formerly co-owned by Corixa Corporation in Section A1 of Exhibit A.  Company shall not settle any suits or actions in any manner relating to the Licensed Patents that would materially adversely affect the rights of University under this Agreement without obtaining the prior written consent of University.  Notwithstanding anything in this Agreement, including this Section 7.1.3, if it is reasonably determined that University is an indispensible party to a legal action initiated pursuant to this Section 7.1.3, University agrees to be joined as plaintiff in such suit solely for the purpose of procuring standing to bring the action and at, to the extent such expenses are reasonable, the sole expense of the initiating Licensee(s).  University agrees that all Licensees will be bound by the identical terms of this Section 7.1.3 and have the same rights and obligations as Company hereunder.

 

8                                         Patent Validity.

 

8.1                               Notice and Investigation of Third Party Challenges.  If any Third Party challenges the validity or enforceability of any of the Licensed Patents, the Party learning of such challenge shall immediately notify the other Party.

 

8.2                               Tender to University of Third Party Actions.  In the event of Third Party legal action challenging the validity or enforceability of any of the Licensed Patents, University, at its sole discretion, shall have the right to assume and control the sole defense of the claim at University’s expense.  If University opts not to assume and control the sole defense of the claim, it shall notify the Licensees by the earlier of (i) within forty-five (45) days after University’s awareness of such legal action and (ii) twenty (20) business days before the time limit to

 

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THIS EXHIBIT HAS BEEN REDACTED AND IS THE SUBJECT OF A CONFIDENTIAL TREATMENT REQUEST.  REDACTED MATERIAL IS MARKED WITH [* * *] AND HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

 

respond, if any, set forth in the applicable laws and regulations for the filing of such actions and shall simultaneously disclose to all Licensees the identities of all other Licensees.  In such event, the Licensees shall have the right (but not the obligation) to defend such claim, and at a Licensee’s request, University shall provide the Licensees with necessary documentation and assistance to facilitate the Licensees’ efforts therefore, including facilitating correspondence between the Licensees.

 

If Company elects to defend such claim, Company must notify the other Licensees and allow the other Licensees to join such defense.  In addition, in the event other Licensee(s) elect to defend such claim, Company hereby consents to being joined in such suit as a party solely for the purpose of procuring standing to defend the claim and at the sole expense of the defending Licensee(s).  Company acknowledges that it and the other Licensees, if applicable, will need to mutually agree upon matters related to the defense, including without limitation, strategy and the allocation of expenses; provided, however that (1) priority for leading any defense shall be given in the following order: (a) unless the Licensees have otherwise mutually agreed, to the Licensee paying all or a substantial portion of the expenses related to such prosecution if the other Licensee(s) are unwilling or unable to be reasonably responsible for such costs, (b) to the Licensee(s) having a marketed product covered by a Valid Claim of a challenged Licensed Patent(s); (c) to the Licensee(s) with a product in development covered by a Valid Claim of a challenged Licensed Patent(s); and (d) to the Licensee(s) who have been granted rights under the Licensed Patents in a specific subpart of the Field of Use that either falls within the scope of asserted claim or would be adversely affected by a declaratory judgment in favor of the Third Party asserting the claim and (2) if reasonably requested by a Licensee, University shall facilitate the Licensees’ discussions on such matters.

 

Licensees shall not settle any suits or actions in any manner relating to the Licensed Patents that would materially adversely affect the rights of University or FHCRC under this Agreement without obtaining the prior written consent of University.  Notwithstanding anything in this Agreement, including this Section 8.2, if it is reasonably determined that University is an indispensible party to a legal action initiated pursuant to this Section 8.2, University agrees to be joined in such suit solely for the purpose of procuring standing to bring the action and at, to the extent such expenses are reasonable, the sole expense of the initiating Licensee(s).  University agrees that all Licensees will be bound by the identical terms of this Section 8.2 and have the same rights and obligations as Company hereunder.

 

8.3                               Enforceability of Licensed Patents.  Notwithstanding challenge by any Third Party, any Licensed Patent will be enforceable under this Agreement until such Licensed Patent is determined to be invalid.

 

9                                        Termination.

 

9.1                               By University.

 

9.1.1                     If Company breaches one or more of its material obligations under this Agreement, University may deliver to Company a written notice of default.  University

 

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may terminate this Agreement by delivering to Company a written notice of termination if the default has not cured in full within 60 days of the delivery to Company of the notice of default.

 

9.1.2                     University may terminate this Agreement by delivering to Company a written notice of termination at least 10 days prior to the date of termination if Company (i) becomes insolvent; (ii) voluntarily files or has filed against it a petition under applicable bankruptcy or insolvency laws that Company fails to have released within 30 days after filing; (iii) proposes any dissolution, composition, or financial reorganization with creditors or if a receiver, trustee, custodian, or similar agent is appointed; (iv) makes a general assignment for the benefit of creditors; or (v) if Company challenges the validity of the Licensed Patents.

 

9.2                               By Company.  Company may terminate this Agreement in its entirety, or on a Licensed Patent-by-Licensed Patent and country-by-country basis, at any time by delivering to University a written notice of termination at least 60 days prior to the effective date of termination.

 

9.3                               Effect of Termination.

 

9.3.1                     After termination of this Agreement by University under Section 9.1 or by Company under Section 9.2, Company shall not make, have made, use, offer to sell or sell, offer to lease or lease, import, or otherwise offer to dispose or dispose of Licensed Products.  If Company terminates its rights to some but not all of the Licensed Patents under Section 9.2, then Company shall not make, have made, use, offer to sell or sell, offer to lease or lease, import, or otherwise offer to dispose or dispose of any product that is covered by a Valid Claim in a terminated Licensed Patent in the terminated country(ies).

 

9.3.2                     Upon the effective date of termination of a Licensed Patent(s) due to Company’s termination of the Agreement or such Licensed Patent(s) pursuant to Section 9.2 or the University’s termination of the Agreement pursuant to Section 9.1, Company shall no longer be required to reimburse University any part of the costs related to such removed patents or patent applications.  For the avoidance of doubt, with respect to such terminated Licensed Patent(s), after the effective date of termination, any filing, prosecution and/or maintenance activities related to such terminated Licensed Patent(s) shall be conducted at University’s sole expense and will not be part of the Licensed Patents.  Notwithstanding anything in this Section 9.3.2, Company shall be able to make, have made, use, offer to sell or sell, offer to lease or lease, import, or otherwise offer to dispose or dispose of any product if such product is not covered by an issued, enforceable claim in the terminated Licensed Patent, provided this shall in no way limit University’s rights to sue Company for infringement should a claim later issue, including under 35 U.S.C. § 154(d) for periods of time during which claims were published but not issued.

 

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THIS EXHIBIT HAS BEEN REDACTED AND IS THE SUBJECT OF A CONFIDENTIAL TREATMENT REQUEST.  REDACTED MATERIAL IS MARKED WITH [* * *] AND HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

 

9.3.3                     Within 60 days after the end of the calendar quarter following the expiration or termination of this Agreement, Company shall submit a final report to University.  Any payments, including those incurred but not yet paid (such as the pro-rata minimum annual royalty, and those related to patent expense incurred as of the date of termination but not yet paid), due to University shall become immediately due and payable upon termination or expiration.

 

9.3.4                     At any time within 30 days following termination of this Agreement, a Sublicensee may notify University that it wishes to enter into a direct license with University in order to retain its rights to the Licensed Patents granted to it under its Sublicense (such 30-day period following termination, the “Initial Notice Period”).  Following receipt of such notice, University and Sublicensee shall enter into a license agreement the terms of which shall be substantially similar to the terms of this Agreement; and the scope of such direct license, the licensed territory or the duration of the license grant shall be comparable to the corresponding terms granted by the Company to such Sublicensee; provided that such Sublicensee will be granted at least the same scope of rights as it obtained from Company under its Sublicense.  For the sake of clarity, the financial terms, including without limitation, the running royalty rate and milestone payments, shall be identical to the corresponding financial terms set forth in this Agreement.  Notwithstanding the foregoing, each Sublicensee’s right to enter into such direct license shall be conditioned upon:

 

(a)                                 such Sublicensee informing University in writing, pursuant to Article 20 (Notices), that it wishes to enter into such direct license with University, within the Initial Notice Period;

 

(b)                                 such Sublicensee being in good standing with Company under its Sublicense, and such Sublicense not being the subject of a reasonable dispute between Sublicensee and Company, or between Company and University under this Agreement;

 

(c)                                  such Sublicense having been validly entered into by Company and Sublicensee pursuant to the terms of Section 3.1.2;

 

(d)                                 such Sublicensee using reasonable efforts to certify or otherwise demonstrate that the conditions set forth in subsections 9.3.4(a), 9.3.4(b), and 9.3.4(c) have been met within 30 days of expiration of the Initial Notice Period (or within such longer period of time as University agrees is reasonable under the circumstances, based on the nature and extent of any documentation reasonably requested by University; and

 

(e)                                  such negotiations for a direct license not exceeding 180 days from the end of the 30-day (or longer, if applicable) period described in subsection 9.3.4(d) (subject to extension of said 180-day period by mutual written agreement of University and Sublicensee).

 

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University may, at its sole discretion, waive any of these requirements.  If all of the conditions set forth in this subsection 9.3.4 are met, then Sublicensee will be granted such direct license by University.  If any condition set forth in this subsection 9.3.4 is not met, then after expiration of any time period granted to Sublicensee with respect to meeting such condition, Sublicensee shall not make, have made, use, offer to sell or sell, offer to lease or lease, import, or otherwise offer to dispose or dispose of Licensed Products and University shall be free to license or not license Licensed Patents to such Sublicensee according to its sole discretion.

 

University shall solely offer any other licensee of the Licensed Patents substantially similar or less favorable terms with respect to the following provisions: (i) length of cure period for any default by such licensee; (ii) notice period for termination by University due to such licensee’s insolvency or other related event (such events described in clauses (i) — (v) of Section 9.1.2); (iii) notice period for such licensee’s right to terminate any aspect of the license arrangement for convenience; (iv) ability to terminate any aspect of the license agreement for convenience (e.g. on a Licensed Patent-by-Licensed Patent basis) (v) rights under the license arrangement and/or to the Licensed Patents after termination; (vi) types of payments due by such licensee to the University after termination; and (vii) terms pursuant to which a sublicensee of such licensee may establish a license arrangement with the University after termination of the licensee’s license arrangement.  For the avoidance of doubt, University will not offer any other licensee of the Licensed Patents any rights concerning termination or effects of termination that vary from Company’s rights hereunder to the extent that such licensee’s rights materially adversely affect Company’s rights under this Agreement.  In the event that University grants to another licensee more favorable rights with respect to any of the provisions outlined above in (i)-(vii), then Company shall be entitled to the same rights as such other licensee.

 

10                                  Release, Indemnification, and Insurance.

 

10.1                        Company’s Release.  Subject to the proviso below in this Article 10, for itself and its employees, Company hereby releases University and FHCRC and their regents, employees, students and agents forever from any suits, actions, claims, liabilities, demands, damages, losses, or expenses (including reasonable attorneys’ and investigative expenses and collectively, “Losses”) relating to or arising out of (i) the manufacture, use, lease, sale, or other disposition of a Licensed Product to the extent such Losses arise from or result from Company’s exercise of the license granted in Section 3.1; or (ii) the assigning or sublicensing of Company’s rights under this Agreement; provided, however that notwithstanding anything to the contrary in this Article 10, the Company shall not release University and/or FHCRC and/or their regents, employees, students and agents forever from any suits, actions, claims, liabilities, demands, damages, losses, or expenses (including reasonable attorneys’ and investigative expenses) relating to or arising out of the negligence or willful misconduct by the University and/or FHCRC and/or their respective regents, employees, students and agents.

 

10.2                        Company’s Indemnification.  Throughout the term of this Agreement and thereafter, Company shall indemnify, defend, and hold University and FHCRC and their respective regents, employees, students and agents harmless from all Losses, relating to or arising out of the manufacture, use, lease, sale, or other disposition of a Licensed Product to the

 

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extent such Losses arise from or result from Company’s exercise of the license granted in Section 3.1, including, without limitation, personal injury, property damage, breach of contract and warranty and products-liability claims relating to a Licensed Product.  This indemnification by Company excludes Losses that arise out of or result from, directly or indirectly, the negligence or willful misconduct by the University and/or FHCRC and/or their respective regents, employees, students and agents.

 

10.3                        Company’s Insurance.

 

10.3.1              Throughout the term of this Agreement, or during such period as the Parties shall agree in writing, Company shall maintain, and shall cause each Sublicensee to maintain, in full force and effect comprehensive general liability (CGL) insurance, with single claim limits consistent with industry standards.  Such insurance policy will include coverage for claims that may be asserted by University against Company under Section 10.2.  Such insurance policy must name University as an additional insured and will require the insurer to deliver written notice to University at the address set forth in Article 20 (Notices) of this Agreement, at least 45 days prior to the termination of the policy.  Company shall deliver to University a copy of the certificate of insurance for such policy.

 

10.3.2              No later than 30 days prior to the initiation of human clinical trials with respect to Licensed Product(s), Company shall provide to University certificates evidencing the existence and amount of clinical trials liability insurance.  Company shall issue irrevocable instructions to its insurance agent and to the issuing insurance company to notify University of any discontinuance or lapse of such insurance not less than 45 days prior to the time that any such discontinuance is due to become effective.  Company shall provide University a copy of such instructions upon their transmittal to the insurance agent and issuing insurance company.  Company shall further provide University, at least annually, proof of continued coverage.

 

11                                  Representations and Warranties.

 

11.1                        Mutual Representations and Warranties.  Each Party represents and warrants to the other Party that it has full corporate power and authority to execute, deliver, and perform this Agreement, and that no other corporate proceedings by such Party are necessary to authorize the Party’s execution or delivery of this Agreement.

 

11.2                        University Representations and Warranties.  University represents and warrants to Company that, to the best of UW TechTransfer’s knowledge, as of the Effective Date:

 

11.2.1              the execution, delivery and performance of this Agreement by University does not conflict with any agreement, instrument or understanding, oral or written, to which it is a party and by which it may be bound, including but not limited to Option Agreement A and Option Agreement B;

 

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11.2.2              University has not granted any right to file or otherwise prosecute Licensed Patents to any Third Party; and

 

11.2.3              University is entitled to grant the licenses specified herein.  University has not previously assigned, transferred, conveyed or otherwise encumbered its right, title and interest in the Licensed Patents in a manner that conflicts with any rights granted to Company hereunder.

 

11.3                        Disclaimers.

 

11.3.1              EXCEPT AS EXPRESSLY SET FORTH IN SECTIONS 11.1 AND 11.2 OF THIS AGREEMENT, UNIVERSITY AND FHCRC DISCLAIM AND EXCLUDE ALL WARRANTIES, EXPRESS AND IMPLIED, CONCERNING EACH LICENSED PATENT AND EACH LICENSED PRODUCT, INCLUDING, WITHOUT LIMITATION, WARRANTIES OF NON-INFRINGEMENT AND THE IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE.

 

11.3.2              University and FHCRC expressly disclaim any warranties concerning and makes no representations:

 

(a)                                 that the Licensed Patent(s) will be approved or will issue;

 

(b)                                 concerning the validity or scope of any Licensed Patent; or

 

(c)                                  that the manufacture, use, sale, lease or other disposition of a Licensed Product will not infringe a Third Party’s patent or violate a Third Party’s intellectual property rights.

 

12                                  Damages.

 

12.1                        Remedy Limitation.  EVEN IF ADVISED OF THE POSSIBILITY OF SUCH DAMAGES, IN NO EVENT SHALL (A) UNIVERSITY OR FHCRC BE LIABLE FOR PERSONAL INJURY OR PROPERTY DAMAGES ARISING IN CONNECTION WITH COMPANY’S EXERCISE OF THE LICENSE GRANTED IN SECTION 3.1 OR (B) EITHER COMPANY, UNIVERSITY OR FHCRC BE LIABLE FOR LOST PROFITS, LOST BUSINESS OPPORTUNITY, LOST DATA OR SPECIAL, INCIDENTAL OR CONSEQUENTIAL DAMAGES OF ANY KIND.

 

12.2                        Damage Cap.  IN NO EVENT WILL UNIVERSITY’S TOTAL LIABILITY FOR THE BREACH OR NONPERFORMANCE OF THIS AGREEMENT EXCEED THE AMOUNT OF PAYMENTS PAID TO UNIVERSITY UNDER SECTION A3 OF EXHIBIT A.  THIS LIMITATION WILL APPLY TO CONTRACT, TORT, AND ANY OTHER CLAIM OF WHATEVER NATURE.

 

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13                                  Amendment and Waiver.

 

This Agreement may be amended from time to time only by a written instrument signed by the Parties.  No term or provision of this Agreement will be waived and no breach excused unless such waiver or consent will be in writing and signed by the Party claimed to have waived or consented.  No waiver of a breach will be deemed to be a waiver of a different or subsequent breach.

 

14                                  Assignment.

 

The rights and licenses granted by University in this Agreement are personal to Company and may not be assigned or otherwise transferred without the written consent of University, which will not be unreasonably withheld.  The preceding sentence notwithstanding, Company, without the prior approval of University, may assign all, but no less than all, its rights and delegate all, but no less than all, its duties under this Agreement to a Third Party if the assignment is made to such Third Party as a part of and in connection with (A) the sale by Company of all or substantially all of its assets to the Third Party, (B) the sale, transfer, or exchange by the shareholders, partners, or equity owners of Company of a majority interest in Company to the Third Party, or (C) the merger of Company into the Third Party.  Company shall deliver to University written notice of the proposed assignment (along with material information about the terms of the assignment and assignee) at least 30 days prior to the effective date of the event described in part (A), (B) or (C) of this paragraph.  Except as provided above, Company shall not assign its interest or delegate its duties under this Agreement, unless University consents to the assignment, or delegation.  Any assignment or delegation attempted to be made in violation of this article will be void.  Absent the consent of all the Parties to this Agreement, an assignment or delegation will not release the assigning or delegating Party from its obligations under this Agreement.

 

This Agreement will inure to the benefit of Company and University and their respective permitted assignees and trustees.

 

15                                  Confidentiality.

 

15.1                        Form of Transfer.  Confidential Information may be conveyed in tangible or intangible form.  Disclosing Party must clearly mark its Confidential Information “confidential.” If disclosing Party communicates Confidential Information in non-written form, it shall reduce such communications to writing, clearly mark it “confidential”, and provide a copy to receiving Party no later than 30 days after original communication at the address in Article 20 (Notices).

 

15.2                        No Unauthorized Disclosure of Confidential Information.  Beginning on the Effective Date and continuing throughout the term of this Agreement and thereafter for a period of three (3) years, receiving Party shall not disclose or otherwise make known or available to any Third Party any disclosing Party Confidential Information, without the express prior written consent of disclosing Party.  Notwithstanding the foregoing, receiving Party shall be permitted to disclose disclosing Party Confidential Information to (i) actual or potential investors, lenders,

 

20

 

THIS EXHIBIT HAS BEEN REDACTED AND IS THE SUBJECT OF A CONFIDENTIAL TREATMENT REQUEST.  REDACTED MATERIAL IS MARKED WITH [* * *] AND HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

 

consultants, collaborators, Sublicensees, or development partners, which disclosure will be made under conditions of confidentiality and limited use; and (ii) its attorney or agent as reasonably required.  University shall be permitted to disclose Company Confidential Information to FHCRC; provided, however that such disclosure will be made under conditions of confidentiality and limited use and any such disclosed Company Confidential Information will be deemed and treated as Confidential Information of University under the Inter-Institutional Agreement.  In no event shall receiving Party incorporate or otherwise use disclosing Party’s Confidential Information in connection with any patent application filed by or on behalf of receiving Party.  Receiving Party shall restrict the use of disclosing Party’s Confidential Information exclusively to the terms of this Agreement.  Receiving Party shall use reasonable procedures to safeguard disclosing Party’s Confidential Information.  In the case where Company is the receiving Party, Company acknowledges and agrees that its confidentiality obligations also apply equally to its Sublicensees.

 

15.3                        Access to University Information.  University is an agency of the state of Washington and is subject to the Washington Public Records Act, RCW 42.56 et seq., (“Act”), and no obligation assumed by University under this Agreement shall be deemed to be inconsistent with University’s obligations as defined under the Act and as interpreted by University in its sole discretion.  If University receives a request for public records under the Act for documents containing Company Confidential Information, and if University concludes that the documents are not otherwise exempt from public disclosure, University will provide Company notice of the request before releasing such documents.  Such notice will be provided in a timely manner to afford Company sufficient time to review such documents and/or seek a protective order, at Company’s expense utilizing the procedures described in RCW 42.56.540.  University shall have no obligation to protect Company Confidential Information from disclosure in response to a request for public records.

 

15.4                        Disclosure as Required by Law.  Either Party shall have the right to disclose the other Party’s Confidential Information as required by law or valid court order, provided that such Party shall inform the Party who owns such Confidential Information prior to such disclosure and shall limit the scope and recipient of disclosure to the extent required by such law or court order.

 

16                                  Construction.

 

The headings preceding and labeling the sections of this Agreement are for the purpose of identification only and will not in any event be employed or used for the purpose of construction or interpretation of any portion of this Agreement.  As used herein and where necessary, the singular includes the plural and vice versa, and masculine, feminine, and neuter expressions are interchangeable.

 

21

 

THIS EXHIBIT HAS BEEN REDACTED AND IS THE SUBJECT OF A CONFIDENTIAL TREATMENT REQUEST.  REDACTED MATERIAL IS MARKED WITH [* * *] AND HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

 

17                                  Enforceability.

 

If a court of competent jurisdiction adjudges a provision of this Agreement unenforceable, invalid, or void, such determination will not impair the enforceability of any of the remaining provisions hereof and the provisions will remain in full force and effect.

 

18                                  Third-Party Beneficiaries.

 

FHCRC is not a party to this Agreement but is an intended Third Party beneficiary, where indicated, of Sections 3.3, 5.4, 8.2, 10.1, 10.2, 11.3, 12.1 and 15.2 of this Agreement.  No person or entity other than FHCRC and the Parties and, with respect to Company, its permitted assignees hereunder, shall be deemed an intended beneficiary hereunder or have any right to enforce any obligation of this Agreement.

 

19                                  Language.

 

Unless otherwise expressly provided in this Agreement, all notices, reports, and other documents and instruments that a Party hereto elects or is required by the terms of this Agreement to deliver to the other Party hereto will be in English.

 

20                                  Notices.

 

All notices, requests, and other communications that a Party is required or elects to deliver will be in writing and will be delivered personally, or by facsimile or electronic mail (provided such delivery is confirmed), or by a recognized overnight courier service or by United States mail, first-class, certified or registered, postage prepaid, return receipt requested, to the other Party at its address set forth below or to another address as a Party may designate by notice given pursuant to this article:

 

If to University:                                                          UW TechTransfer
 ATTN:  Director, Technology Licensing
 4311 11th Avenue NE, Suite 50
 Seattle, WA 98105-4608
 Facsimile No.:  206-685-4767

 

If to Company:                   Genocea Biosciences, Inc.
 Attn:  Chief Executive Officer
 161 First Street, Suite 2C
 Cambridge, MA 02142
 Phone No.:  (617) 876-8191
 Facsimile No.:  (617) 876-8192

 

21                                  Patent Marking.

 

To the extent allowed under applicable law, Company shall mark, or shall require that its Sublicensees mark, all material forms of Licensed Product(s) or packaging pertaining thereto

 

22

 

THIS EXHIBIT HAS BEEN REDACTED AND IS THE SUBJECT OF A CONFIDENTIAL TREATMENT REQUEST.  REDACTED MATERIAL IS MARKED WITH [* * *] AND HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

 

made and sold by Company in the United States with patent marking conforming to 35 U.S.C. §287(a), as amended from time to time.  Such marking shall further identify the pendency of any U.S. patent application and/or any issued U.S. or foreign patent forming any part of the Licensed Patents.  Licensed Product(s) shipped to or sold in other countries will be marked in such a manner as to provide notice to potential infringers pursuant to the patent law and practice of the country of manufacture or sale.

 

22                                  Publicity.

 

Each Party shall have the right to report in its customary publications and presentations that University and Company have entered into a license agreement for the technology covered by the Licensed Patents.  However, neither Party shall have the right to use the logos of the other Party without the other Party’s prior written consent and neither Party shall imply any endorsement by such Party by the other Party, including in the aforementioned publications and presentations.

 

The Parties will cooperate with one another to review and respond to any press release or similar communication proposed by the other Party regarding the non-confidential subject matter of this Agreement.  The specific content and timing of such press releases or similar communication is subject to mutual agreement by the Parties, which will not be unreasonably withheld.  Further, University and Company shall issue a joint press release regarding this Agreement, subject to both Party’s review and approval of the specific content thereof, and such press release shall include specific mention of the contributions of University personnel and University in developing the technology in a prominent portion of the press release.  Company shall provide University with appropriate quotes for such press release.  University may post the press release in digital and print publications as well as on University’s own website.

 

23                                  Relationship of Parties.

 

In entering into, and performing their duties under, this Agreement, the Parties are acting as independent contractors and independent employers.  No provision of this Agreement shall create or be construed as creating a partnership, joint venture, or agency relationship between the Parties.  No Party shall have the authority to act for or bind the other Party in any respect.

 

24                                  Security Interest.

 

Company shall not grant, or permit any person to assert or perfect, a security interest in the Licensed Patents.

 

25                                 Survival.

 

Immediately upon the termination or expiration of this Agreement all of the Parties’ rights under this Agreement will terminate; provided, however, Company’s obligations that have accrued prior to the effective date of termination or expiration of this Agreement (e.g., the obligation to report and make payments on sales, leases, or dispositions of Licensed Products and

 

23

 

THIS EXHIBIT HAS BEEN REDACTED AND IS THE SUBJECT OF A CONFIDENTIAL TREATMENT REQUEST.  REDACTED MATERIAL IS MARKED WITH [* * *] AND HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

 

to reimburse University for costs) and the obligations specified in Sections 6.1 and 6.4 will survive.  The obligations and rights set forth in Sections 6.5, 9.3 and Articles 11, 12, 15, 17, 20, 25, 26, 27, 28, 29 and 30 will survive the termination or expiration of this Agreement.

 

26                                  Collection Costs and Attorneys’ Fees.

 

If it is determined that a Party has materially breached one or more of the terms of this Agreement, the other Party may recover from the breaching Party all of its reasonable costs (including attorneys’ fees) incurred to enforce the terms of this Agreement.

 

27                                  Applicable Law.

 

The internal laws of the state of Washington will govern the validity, construction, and enforceability of this Agreement, without giving effect to the conflict of laws principles thereof.

 

28                                  Forum Selection.

 

A suit, claim, or other action to enforce the terms of this Agreement will be brought exclusively in the state and federal courts of King County, Washington.  Company hereby submits to the jurisdiction of that court and waives any objections it may have to that court asserting jurisdiction over Company or its assets and property.

 

29                                  Dispute Resolution

 

The Parties agree that any and all disputes and controversies arising from, connected with, or relating to this Agreement, including relating to the construction, meaning, performance or effect of this Agreement or any breach thereof (collectively “Disputes”) will be resolved in accordance with the terms of this Article 29 as follows:

 

29.1                        Informal Dispute Resolution.  Prior to initiating formal dispute resolution procedures, the Parties will first attempt to resolve any Dispute directly through good faith negotiations.  Either Party may deliver to the other a written notice requiring negotiation of the Dispute (“Notice to Negotiate”).  The Parties will seek to resolve Disputes through negotiations, but may, during this informal dispute resolution period, escalate the resolution of any Dispute internally as necessary or appropriate to Company’s Chief Executive Officer and University’s Vice Provost for UW TechTransfer, or their authorized representatives.  If the Dispute has not been resolved within 15 business days after the delivery of a Notice to Negotiate, either Party may by written notice (“Notice to Mediate”), request to mediate the Dispute in accordance with Section 29.2 (Mediation), subject to the other Party’s consent.  If the Parties do not agree to mediate the Dispute after a failure to resolve the Dispute pursuant to this Section 29.1, the matter shall be resolved, subject to either Party’s initiation, by binding arbitration under Section 29.3 for Disputes directly related to the determination of the applicable pro rata percentages under Section A3.8 and, for all other Disputes, by any remedies available to the Parties under this Agreement or under law.  To the fullest extent permitted by law, the Parties will conduct the negotiations in confidence.

 

24

 

THIS EXHIBIT HAS BEEN REDACTED AND IS THE SUBJECT OF A CONFIDENTIAL TREATMENT REQUEST.  REDACTED MATERIAL IS MARKED WITH [* * *] AND HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

 

29.2                        Mediation.  Subject to the Parties’ mutual agreement to mediate the Dispute pursuant to Section 29.1 (Informal Dispute Resolution), the Parties agree to retain the services of a mutually acceptable Third Party mediator to mediate the resolution of the Dispute.  Unless the Parties otherwise agree in writing, the mediator will be resident in the city in which the University is situated, and all meetings regarding the mediation will be held either by video or telephone conference or by in-person meetings held in such city.  No Party will unreasonably withhold acceptance of a mediator, and the selection of a mediator will be made within 15 business days following the delivery of the Notice to Mediate pursuant to Section 29.1 (Informal Dispute Resolution) above.  If a mediator is not appointed, or if, following the appointment of a mediator, the Dispute is not resolved within thirty (30) days, or such extended period that the Parties may agree to in writing, after the delivery of the Notice to Mediate, then (i) if the matter involves the determination of the applicable percentages under Section A3.8, the matter shall be resolved by binding arbitration under Section 29.3, and (ii) if the matter does not involve the determination of the applicable percentages under Section A3.8, neither Party will be required to pursue arbitration under Section 29.3 and either Party may pursue any options available to them under this Agreement and/or commence litigation pursuant to Section 29.4 (Litigation) below.  To the fullest extent permitted by law, the Parties agree to maintain the mediation proceedings in confidence; and share the costs of the mediator and the mediation facilities equally.  To the fullest extent permitted by law, the Parties agree to maintain the mediation proceedings in confidence; and share the costs of the mediator and the mediation facilities equally, although each Party will bear the costs of its presentation including without limitation its attorneys’ fees and fees associated with the production of any information for such presentation.  All communications during the mediation referred to in this Section 29.2 including any documents or information prepared and exchanged solely for the purposes of that mediation, will be considered to be “without prejudice” and will not be admissible in any subsequent litigation.

 

29.3                        Arbitration.  Any Dispute directly related to the determination of the applicable pro rata percentages under Section A3.8 not resolved pursuant to Section 29.1 (Informal Dispute Resolution) or Section 29.2 (Mediation), shall be settled by arbitration administered by the American Arbitration Association under its Commercial Arbitration Rules, and judgment on the award rendered by the arbitrator(s) may be entered in any court having jurisdiction thereof.  The place of arbitration shall be Seattle, Washington.  The number of arbitrators shall be limited to one.  All expenses and costs of the arbitrators and the arbitration in connection therewith will be shared equally, except that each party will bear the costs of its prosecution and defense, including without limitation attorneys’ fees and the production of witnesses and other evidence.

 

29.4                        Litigation.  Any Party may seek (i) interim measure of protection, including injunctive relief, prior to or during the negotiation or mediation of Disputes, and (ii) final resolution, from the courts sitting in the city in which University is situated regarding any Dispute, and each Party irrevocably and unconditionally attorns to the exclusive jurisdiction of such courts, and all courts competent to hear appeals therefrom, for that purpose.

 

25

 

THIS EXHIBIT HAS BEEN REDACTED AND IS THE SUBJECT OF A CONFIDENTIAL TREATMENT REQUEST.  REDACTED MATERIAL IS MARKED WITH [* * *] AND HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

 

30                                  Entire Agreement.

 

This Agreement (including all attachments, exhibits, and amendments) is the final and complete understanding between the Parties concerning licensing the Licensed Patents.  This Agreement supersedes any and all prior or contemporaneous negotiations, representations, and agreements, whether written or oral, including the Option Agreement, concerning the Licensed Patents.  However, the obligations of nonuse and nondisclosure for Confidential Information disclosed pursuant to the CDA shall survive until August 10, 2012.  Confidential Information disclosed pursuant to this Agreement shall be governed by the terms of this Agreement.  This Agreement may not be modified in any manner, except by written agreement signed by an authorized representative of both Parties.

 

IN WITNESS WHEREOF, the Parties have caused this Agreement to be duly executed by their respective authorized representatives.

 

	
University   of Washington
    	
 
    	
Genocea Biosciences, Inc.
    
	
 
    	
 
    	
 
    	
 
    
	
By: 
    	
/s/ Fiona Wills
    	
 
    	
By:
    	
/s/ M. Leavenworth Bakali
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Name: 
    	
Fiona Wills
    	
 
    	
Name:
    	
M. Leavenworth Bakali
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Title: 
    	
Director of   Technology Licensing
    	
 
    	
Title:
    	
President & CEO
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Date: 
    	
January 27,   2010
    	
 
    	
Date:
    	
26 January 2010
    

 

26

 

	
THIS EXHIBIT HAS BEEN REDACTED AND IS   THE SUBJECT OF A CONFIDENTIAL TREATMENT REQUEST.  REDACTED MATERIAL   IS MARKED WITH [* * *] AND HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND   EXCHANGE COMMISSION.
    
	
 
    
	
Exhibit A

 

Exclusive Patent License Schedule
    
	
 
    
	
A1.                             Licensed Patents:

 

A1.1 Subset A of Licensed Patents
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
UW Ref. No.
    	
 
    	
Serial Number
    	
 
    	
Filing Type
    	
 
    	
Filing Date
    	
 
    	
Notes
    
	
[* * *]
    	
 
    	
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A1.2 Subset B of Licensed Patents
    
	
 
    
	
UW Ref. No.
    	
 
    	
Serial Number
    	
 
    	
Filing Type
    	
 
    	
Filing Date
    	
 
    	
Notes
    
	
[* * *]
    	
 
    	
[* * *]
    	
 
    	
[* * *]
    	
 
    	
[* * *]
    	
 
    	
 
    
	
[* * *]
    	
 
    	
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[* * *]
    	
 
    	
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[* * *]
    	
 
    	
[* * *]
    	
 
    	
[* * *]
    

 

 

	
THIS   EXHIBIT HAS BEEN REDACTED AND IS THE SUBJECT OF A CONFIDENTIAL TREATMENT   REQUEST.  REDACTED MATERIAL IS MARKED WITH [* * *] AND HAS BEEN   FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.
    
	
 
    
	
[* * *]
    	
 
    	
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A1.3. Background Patents
    
	
 
    
	
UW Ref. No.
    	
 
    	
Serial Number
    	
 
    	
Filing Type
    	
 
    	
Filing Date
    	
 
    	
Notes
    
	
[* * *]
    	
 
    	
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THIS EXHIBIT HAS BEEN REDACTED AND IS THE SUBJECT OF A CONFIDENTIAL TREATMENT REQUEST.  REDACTED MATERIAL IS MARKED WITH [* * *] AND HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

 

	
[* * *]
    	
 
    	
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[* * *]
    	
 
    	
 
    

 

A2.                             Performance Milestones (Section 5.1): Company shall meet the following performance milestones.

 

A2.1                      [* * *];

 

A2.2                      [* * *];

 

A2.3                      [* * *].

 

A2.4                      [* * *].

 

A3.                             Payments (Section 6.1):

 

A3.1                      Up-front Payment.  Company shall pay to University within 30 days of the Effective Date twenty thousand dollars ($20,000) as an up-front payment.  This up-front payment shall be non-refundable and not creditable against future royalty obligations.

 

A3.2                      Annual Maintenance Fee.  Within 30 days after each anniversary of the Effective Date during the term of this Agreement Company shall pay to University an annual payment according to the schedule below.  This annual payment shall be non-refundable and not creditable against Company’s other royalty obligations.

 

A3.2.1.  In 2011, Company shall pay University [* * *];

 

A3.2.2.  In 2012, Company shall pay University [* * *]; and

 

A3.2.3.  In 2013 and each year following [until Company pays minimum annual royalties pursuant to Section A3.4], Company shall pay University [* * *].

 

A3.3                      Running Royalty Payments.  During the Royalty Term, Company shall pay to University within 45 days after the last day of each calendar quarter during the term of this Agreement an amount equal to [* * *] of the Net Sales during such quarter as a running royalty payment.

 

A3.4                      Minimum Annual Royalties.  Beginning the first full calendar year following first commercial sale of a Licensed Product and for the term of this Agreement, Company shall pay minimum annual royalties in the amount of [* * *] to be creditable against running royalty payments for the preceding twelve months on a non-cumulative basis.  Minimum annual royalty payments for each year will be due in full and payable on the anniversary of the Effective Date of the relevant calendar year.  If this Agreement is terminated prior to the payment of a minimum annual royalty in any given year, the amount due for that minimum annual royalty payment will be prorated on the basis of the number of full quarters that have elapsed prior to termination since the last payment of a minimum annual royalty.

 

 

THIS EXHIBIT HAS BEEN REDACTED AND IS THE SUBJECT OF A CONFIDENTIAL TREATMENT REQUEST.  REDACTED MATERIAL IS MARKED WITH [* * *] AND HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

 

A3.5                      Financial Milestones.  Company shall pay to University the following non- cumulative and non-refundable milestone achievement payments within 30 days of achieving the corresponding milestone, whether achieved by Company or a Sublicensee.

 

A3.5.1.  [* * *];

 

A3.5.2.  [* * *];

 

A3.5.3.  [* * *]; and

 

A3.5.4.  [* * *].

 

A3.6                      Equity.  The Parties shall enter into a Stock Purchase Agreement and/or other agreements as they deem necessary and desirable pursuant to which Company shall issue to University twenty-five thousand (25,000) shares of its common stock within 30 days of the Effective Date.  Each share shall have voting rights and shall be non-assessable.

 

A3.7                      Third Party Royalties.  If Company is required to pay royalties to a Third Party based on Company’s manufacture, use, or sale of Licensed Product subject to one or more patents of such Third Party then the royalties Company pays to University may be reduced by [* * *] of such royalties actually paid to the Third Party provided that use of any Third Party patent is required for such manufacture, use, or sale of Licensed Product, and provided that the royalty to the University shall not fall below [* * *].

 

A3.8                      Sublicensing Consideration.  In addition to the running royalty payments due on Net Sales by any Sublicensee pursuant to Subsection A3.3 of this Exhibit A, Company shall pay to University a percentage of all Sublicensing Consideration received for a Sublicense according to the schedule below.  [* * *] For the avoidance of doubt, any failure by Company to pay University an amount under this Section A3.8 which is actively being disputed pursuant to Article 29 shall not be deemed a breach or default by Company of its obligations under this Agreement.

 

A3.8.1.  [* * *]:

 

A3.8.1.1. [* * *];

 

A3.8.1.2. [* * *];

 

A3.8.1.3.  [* * *];

 

A3.8.1.4.  [* * *].

 

A4.                             Patent Cost Reimbursement: Subject to the terms of this Agreement, Company shall pay, or reimburse University for paying, a [* * *] share [* * *] of all reasonable and necessary out-of-pocket costs (including attorneys’ and application fees) incurred prior to, on, or after the Effective Date to apply for, prosecute, enforce, and maintain Licensed Patents, including the 

 

 

THIS EXHIBIT HAS BEEN REDACTED AND IS THE SUBJECT OF A CONFIDENTIAL TREATMENT REQUEST.  REDACTED MATERIAL IS MARKED WITH [* * *] AND HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

 

reasonable out-of-pocket costs of interferences, oppositions, and re-examinations.  One half of the initial invoice for amounts subject to reimbursement that were incurred prior to the Effective Date hereunder (a summary of such amounts is attached hereto as Exhibit C) shall be due within 30 days of the Effective Date and one half shall be due on or before the first anniversary of the Effective Date; all other reimbursements shall be paid in cash within 30 days of Company’s receipt of University’s invoice setting forth such reimbursable expenses in reasonable detail (with supporting documentation, as appropriate).

 

 

THIS EXHIBIT HAS BEEN REDACTED AND IS THE SUBJECT OF A CONFIDENTIAL TREATMENT REQUEST.  REDACTED MATERIAL IS MARKED WITH [* * *] AND HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

 

Exhibit B

 

Royalty Report Form

 

Date

 

Company Name & Address

 

	
License Number
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Reporting Period:
    	
 
    	
 
    	
Report Due Date:
    	
 
    

 

This report must be submitted regardless of whether royalties are owed.  Please do not leave any column blank.  State all information requested below.

 

	
Product Description
    	
 
    	
Royalty Rate
    	
 
    	
Quantity/
   Net Sales
    	
 
    	
Royalty Due
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    

 

	
Report Completed by:
    	
 
    	
 
    	
Total Royalties Due:
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Telephone Number:
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
If you have questions please contact:
    	
 
    	
 
    
								

 

Please make check payable to: University of Washington

 

 

THIS EXHIBIT HAS BEEN REDACTED AND IS THE SUBJECT OF A CONFIDENTIAL TREATMENT REQUEST.  REDACTED MATERIAL IS MARKED WITH [* * *] AND HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

 

Exhibit C

 

Patent Costs Incurred as of the Effective Date

 

 

THIS EXHIBIT HAS BEEN REDACTED AND IS THE SUBJECT OF A CONFIDENTIAL TREATMENT REQUEST.  REDACTED MATERIAL IS MARKED WITH [* * *] AND HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

 

Patent Expense Estimate for Agreement 22557A

 

Total Expenses: [* * *] Company Portion: [* * *]

 

	
Background Patents 
    	
[* * *] of   Background Patents patent expenses: [* * *]
    

 

	
IP Reference:
    	
 
    	
Expense Total:
    	
 
    	
Company Portion:
    	
 
    
	
[* * *]
    	
 
    	
[* * *]
    	
 
    	
[* * *]
    	
 
    
	
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[* * *]
    	
 
    	
[* * *]
    	
 
    

 

	
Subset A 
    	
[* * *] of   Subset A patent expenses: [* * *]
    

 

	
IP Reference:
    	
 
    	
Expense Total:
    	
 
    	
Company Portion:
    	
 
    
	
[* * *]
    	
 
    	
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[* * *]
    	
 
    

 

 

THIS EXHIBIT HAS BEEN REDACTED AND IS THE SUBJECT OF A CONFIDENTIAL TREATMENT REQUEST.  REDACTED MATERIAL IS MARKED WITH [* * *] AND HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

 

Patent Expense Estimate for Genocea Agreement

 

	
Subset B 
    	
[* * *] of   Subset B patent expenses: [* * *]
    

 

	
IP Reference:
    	
 
    	
Expense Total:
    	
 
    	
Company Portion:
    	
 
    
	
[* * *]
    	
 
    	
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THIS EXHIBIT HAS BEEN REDACTED AND IS THE SUBJECT OF A CONFIDENTIAL TREATMENT REQUEST.  REDACTED MATERIAL IS MARKED WITH [* * *] AND HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

 

Amendment No. 1 to Patent License Agreement

between

the University of Washington

and

Genocea Biosciences, Inc.

 

This Amendment No. 1 is made and entered into as of July 19, 2012, by and between the University of Washington, a public institution of higher education and an agency of the State of Washington, acting through UW Center for Commercialization, Technology Licensing (“University”), and Genocea Biosciences, Inc., a Delaware corporation with its principal place of business at 161 First Street, suite 2C, Cambridge, MA 02142 (“Company”).  University and Company are referred to individually as a “Party” and collectively as the “Parties”.

 

WHEREAS, University and Company are Parties to a certain Patent License Agreement (the “Agreement”) with an Effective Date of January 23, 2010 with University reference 22557A;

 

WHEREAS, Company has informed University, through a Revised Termination Letter dated May 31, 2012, that it wishes to terminate its license to selected Licensed Patents under the Agreement;

 

WHEREAS, University and Company, through this Amendment No. 1, wish to update Licensed Patents and confirm the Co-Exclusive or exclusive nature of Company’s license thereto;

 

NOW, THEREFORE the Parties hereto agree as follows:

 

1.              The original Termination Letter dated April 26, 2012 is null and void, and this Amendment No. 1 controls with respect to identifying Licensed Patents.

 

2.              Unless otherwise defined herein, capitalized terms used in this Amendment No. 1 have the meanings set forth in the Agreement.

 

3.              Pursuant to Section 3.1.2 of the Agreement, University and Company hereby confirm (i) conversion of Company’s Tri-Exclusive license to Subset B of Licensed Patents to a Co-Exclusive license; and (ii) Company’s assumption of [* * *] of all reasonable and necessary out-of-pocket patent costs incurred for such converted Co-Exclusive Licensed Patents as of June 1, 2011, the date on which University notified Company of the possibility of conversion.  Table A1.1 (a) below, “Updated Subset A of Licensed Patents”, lists all Licensed Patents subject to a Co-Exclusive license as of the Effective Date of this Amendment No. 1, including Licensed Patents remaining in Subset A, Licensed Patents formerly in Subset B, and Licensed Patents filed subsequent to the Effective Date of the Agreement.

 

4.              University and Company hereby confirm grant of a Co-Exclusive license to Background Patents, as set forth in Table 1.3 below, to manufacture, have manufactured on Company’s behalf, use, offer to sell or sell, offer to lease or lease, import, or otherwise offer to dispose or dispose of Licensed Products in the Field of Use in the Territory.  [Specific grant of a Tri-Exclusive license to Background Patents was inadvertently omitted from the Agreement.]

 

 

THIS EXHIBIT HAS BEEN REDACTED AND IS THE SUBJECT OF A CONFIDENTIAL TREATMENT REQUEST.  REDACTED MATERIAL IS MARKED WITH [* * *] AND HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

 

5.              Further, subject to the terms and conditions of the Agreement, University hereby grants to Company, and Company hereby accepts, an exclusive license to Subset C of Licensed Patents, as set forth in new Table A1.1 (b) below, to manufacture, have manufactured on Company’s behalf, use, offer to sell or sell, offer to lease or lease, import, or otherwise offer to dispose or dispose of Licensed Products in the Field of Use in the Territory.  Company assumes all reasonable and necessary out-of-pocket costs (including attorneys’ and application fees) incurred prior to, on, or after the Effective Date of this Amendment No. 1 to apply for, prosecute, enforce, and maintain Subset C of Licensed Patents, including the reasonable out-of-pocket costs of interferences, oppositions, and re-examinations.

 

6.              Table A1.1 “Subset A of Licensed Patents”, Table A1.2 “Subset B of Licensed Patents”, and Table 1.3 “Background Patents” are hereby deleted in their entirety and replaced as follows:

 

	
Canady ID
    	
 
    	
New UW ID
    	
 
    	
Previous UW ID
    	
 
    	
Appl Number
    	
 
    	
Patent No.
    	
 
    	
Filing
    	
 
    
	
[* * *]
    	
 
    	
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A1.1 (b)    New Subset C of Licensed Patents; exclusively licensed to Genocea

 

	
Canady ID
    	
 
    	
New UW ID
    	
 
    	
Previous UW ID
    	
 
    	
Appl Number
    	
 
    	
Patent No.
    	
 
    	
Filing
    	
 
    
	
[* * *]
    	
 
    	
[* * *]
    	
 
    	
[* * *]
    	
 
    	
[* * *]
    	
 
    	
[* * *]
    	
 
    	
[* * *]
    	
 
    

 

A1.2                      Updated (as of May 31, 2012) Subset B of Licensed Patents

[No Licensed Patents in Subset B.]

 

A1.3                      Updated (as of May 31, 2012) Background Patents; Co-Exclusively licensed to Genocea

 

	
Canady ID
    	
 
    	
New UW ID
    	
 
    	
Previous UW ID
    	
 
    	
Appl Number
    	
 
    	
Patent No.
    	
 
    	
Filing
    	
 
    
	
[* * *]
    	
 
    	
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IN WITNESS WHEREOF, the Parties have caused this Agreement to be duly executed by their respective authorized representatives.

 

	
University   of Washington
    	
 
    	
Genocea   Biosciences, Inc.
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/   Angela Loihl
    	
 
    	
By: 
    	
/s/   William D. Clark
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Name: 
    	
Angela   Loihl
    	
 
    	
Name: 
    	
William   D. Clark
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Title: 
    	
Associate   Director
    	
 
    	
Title: 
    	
President &   CEO
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Date: 
    	
7/11/2012
    	
 
    	
Date: 
    	
July 19,   2012

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00225-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00225-of-00352.parquet"}]]